Frasers Centrepoint Trust · SGX:J69U

Frasers Centrepoint Trust — Q2 FY2019 Earnings Presentation

37 slides from Frasers Centrepoint Trust's earnings presentation, Apr 24, 2019

  1. Slide 1: Financial Results Presentation for the 2nd Quarter FY2019

    Frasers Centrepoint Trust Financial Results Presentation for the 2nd Quarter FY2019 ended 31 March 2019 24 April 2019

  2. Slide 2: Important Notice

    Important notice Important Notice  Certain statements in this Presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward- looking statement and financial information involve known and unknown risks, uncertainties and other factors which may c

  3. Slide 3: Contents

    Contents Contents  Results highlights 4  Balance sheet 12  Operational performance 16  Outlook 23  Appendix 25 3

  4. Slide 4: 2Q19 results highlights

    Results - Highlights 2Q19 results highlights 2Q19 Financial performance  DPU of 3.137 cents, up 1.2% year-on-year (2Q18 DPU: 3.10 cents)  Gross Revenue of $49.7 million, up 2.3% year-on-year  Net Property Income of $36.4 million, up 4.8% year-on-year  NAV and NTA per Unit of $2.08 as at 31 Mar 2

  5. Slide 5: 2Q19 DPU up 1.2% to record-high 3.137 cents

    Results - Highlights 2Q19 DPU up 1.2% to record-high 3.137 cents  Broad-based improvement in net property income of the portfolio properties 2Q19 2Q18 Y-o-Y $’000 Jan 19 to Mar 19 Jan 18 to Mar 18 change Gross Revenue 49,733 48,605 ▲2.3% Property Expenses (13,289) (13,815) ▼3.8% Net Property Income

  6. Slide 6: 1H19 DPU up 0.9% to 6.157 cents

    Results - Highlights 1H19 DPU up 0.9% to 6.157 cents 1H19 1H18 Y-o-Y $’000 Oct 18 to Mar 19 Oct 17 to Mar 18 change Gross Revenue 99,014 96,515 ▲2.6% Property Expenses (27,183) (27,212) ▼0.1% Net Property Income 71,831 69,303 ▲3.6% Income Available for Distribution 56,500 57,226 ▼1.3% Distribution t

  7. Slide 7: FCT delivers higher quarterly DPU

    Results - Highlights FCT delivers higher quarterly DPU Distribution per Unit (S cents) ▲ 1.2% year-on-year ▲ 3.9% Quarter-on-quarter 3.10 3.137 3.05 3.020 2.862 2Q18 3Q18 4Q18 1Q19 2Q19 7

  8. Slide 8: 2Q19 revenue increased 2.3% year-on-year

    Results – Performance by properties 2Q19 revenue increased 2.3% year-on-year  Higher gross rent contribution from Northpoint City North Wing, Changi City Point, YewTee Point and Bedok Point while rental at Causeway Point and Anchorpoint were comparable to same period last year. Gross Revenue $ mill

  9. Slide 9: 2Q19 property expenses 3.8% lower year-on-year

    Results – Performance by properties 2Q19 property expenses 3.8% lower year-on-year  Lower overall property expenses mainly attributed to lower property tax due to writebacks of property tax provisions no longer required and lower utilities expense, which were partially offset by higher property man

  10. Slide 10: 2Q19 NPI up 4.8% year-on-year

    Results – Performance by properties 2Q19 NPI up 4.8% year-on-year  Broad-based improvement in NPI, led by Changi City Point Net Property Income $ million 2Q19 2Q18 ▲ 4.8% 36.44 34.79 ▲ 1.5% 17.05 16.79 ▲ 1.4% 10.09 9.95 ▲ 24.6% ▲ 8.9% ▲ 5.9% No Change 4.97 3.99 2.70 2.48 1.07 1.01 0.56 0.56 FCT Por

  11. Slide 11: The larger malls account for 88.1% of portfolio NPI

    Results – NPI contribution by properties The larger malls account for 88.1% of portfolio NPI Percentage of 2QFY19 Net Property Income (NPI) contribution by property Bedok Point Anchorpoint 1.5% 2.6% YewTee Point 7.4% Causeway Point 46.8% Changi City Point 13.6% Northpoint City North Wing (including

  12. Slide 12: Balance sheet

    Balance sheet

  13. Slide 13: Gearing level remained at 28.8%

    Balance sheet Gearing level remained at 28.8%  FCT’s gearing at 28.8% is among the lowest among its peers in the Singapore REITs As at 31 March 19 30 September 18 Gearing ratio1 28.8% 28.6% Interest cover for the Quarter2 6.00 times 5.61 times Total borrowings $815 million $813 million % of borrowi

  14. Slide 14: NAV and NTA maintained at $2.08 per Unit

    Balance sheet NAV and NTA maintained at $2.08 per Unit 31 Mar 2019 30 Sep 2018 As at S$’000 S$’000 Non-current assets 2,814,801 2,815,448 Current assets 17,824 24,924 Total assets 2,832,625 2,840,372 Current liabilities (413,082) (279,508) Non-current liabilities (485,239) (627,108) Total liabilitie

  15. Slide 15: Debt maturity as at 31 March 2019

    Balance sheet Debt maturity as at 31 March 2019  FCT refinanced an aggregate of S$120 million of current borrowings on 10 April 2019. These borrowings comprised S$60 million 2.9% MTN due 2019 (Series 9) and S$60 million unsecured term loan (due June 2019).  Post refinancing, the weight average deb

  16. Slide 16: Operational performance

    ~~ ERASERS CENTREPOINT TRUST Operational performance

  17. Slide 17: Portfolio occupancy at 96.0%

    Operational performance Portfolio occupancy at 96.0% Mall Occupancy 31 Mar 18 30 Jun 18 30 Sep 18 31 Dec 18 31 Mar 19 Causeway Point 99.3% 99.9% 98.4% 98.7% 97.4% Northpoint City North Wing 94.0% 92.5% 96.5%* 97.9%* 96.5%* (Includes Yishun 10 Retail Podium) Changi City Point 90.6% 92.6% 93.8% 94.8%

  18. Slide 18: 2Q19 average rental reversion at +2.0%

    Operational performance 2Q19 average rental reversion at +2.0% Change compared 2Q19 No. of Leased area As % Mall’s NLA to preceding (1 Jan – 31 Mar 2019) renewals renewed (sq ft) rental rates1 Causeway Point 13 16,450 4.0% 6.2% Northpoint City North Wing 4 2,447 1.1% 2.7% (Includes Yishun 10 Retail

  19. Slide 19: Maintaining positive rental reversions through economic cycles

    Operational performance Maintaining positive rental reversions through economic cycles FCT Portfolio Average Rental Reversions1 15.0% 14.0% 12.8% 12.1% 9.9% 8.6% 7.7% 7.2% 6.5% 6.3% 5.1% 5.4% 3.2% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 1HFY19 1. Based on

  20. Slide 20: Lease expiry profile

    Operational performance Lease expiry profile Lease expiry profile as % of total gross rental income 37.8% Weighted Average Lease Expiry (WALE) 25.5% By NLA 1.93 years (1Q19: .2.02 years) 15.9% 11.4% 8.8% By Gross Rent 1.73 years (1Q19: 1.79 years) 0.4% 0.3% // FY2019 FY2020 FY2021 FY2022 FY2023 FY20

  21. Slide 21: Lease expiries in FY2019 by property

    Lease expiries in FY2019 by property As at 31 March 2019 Lease Area Lease Expiries in remaining Number of as % of leased as % of total Expiring 6 months of FY2019 Leases Expiring area of Mall gross rent of Mall (sq ft) Causeway Point 37 51,624 12.7% 15.4% Northpoint City North Wing and 17 8,552 3.9%

  22. Slide 22: Portfolio shopper traffic and tenant's sales

    Portfolio shopper traffic and tenant’s sales  All malls except Bedok Point, saw higher shopper traffic during quarter  Tenants’ sales declined by 1.3% year-on-year. This was attributed mainly to transitional vacancies at Causeway Point, including the temporary closure of one of its food court for

  23. Slide 23: Outlook

    ~~ ERASERS CENTREPOINT TRUST Outlook

  24. Slide 24: Outlook

    Outlook Outlook  The Ministry of Trade and Industry forecast the Singapore economy to grow by 1.5% to 3.5% in 2019. The Department of Statistics reported that retail sales in February 2019 (excluding motor vehicles) is 1.5% higher month-on-month but 10.7% lower year-on-year.  FCT’s portfolio consi

  25. Slide 25: Appendix

    ~~ ERASERS CENTREPOINT TRUST Appendix

  26. Slide 26: Distribution details

    Distribution details Distribution period 1 January to 31 March 2019 Distribution per unit 3.137 cents Ex-date 2 May 2019 (Thursday) Books closure date 3 May 2019 (Friday) at 5.00 pm Payment date 30 May 2019 (Thursday) 26

  27. Slide 27: 2Q19 year-on-year and quarter-on-quarter comparison

    Appendix: Year-on-year and quarter-on-quarter comparison 2Q19 year-on-year and quarter-on-quarter comparison Year-on-Year Quarter-on-Quarter Comparison Comparison 2Q19 2Q18 Change 1Q19 Change $’000 (unless otherwise indicated) Jan 19 to Mar 19 Jan 18 to Mar 18 Inc / (Dec) Oct 18 to Dec 18 Inc / (Dec

  28. Slide 28: Debt Information

    Debt Information Average cost of Borrowings (all-in) 2.8% Annualised based on rates fixed @ 31 Mar 2019 Moody's rating Baa1 S&P rating BBB+ Interest cover (EBIT/Σinterest) (times) 6.00 For the quarter 1 Jan - 31 Mar 2019 Gearing 28.8% as at 31 Mar 2019 % of Total Description Amount ($m) Expiry Credi

  29. Slide 29: Portfolio Lease expiry profile as at 31 March 2019

    Portfolio Lease expiry profile as at 31 March 2019 as at 31 March 2019 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Total Causeway Point No of leases 37 75 64 30 8 2 0 0 0 0 216 Expiries as % Total NLA 12.7% 32.3% 19.2% 14.7% 19.8% 1.3% 0.0% 0.0% 0.0% 0.0% 100.0% NLA (sq ft)

  30. Slide 30: Trade mix as at 31 March 2019

    Trade mix as at 31 March 2019 Trade Classifications As % of total As % of total Gross (In descending order of % of rent) NLA Rental Income Food & Restaurants 32.2% 38.4% Fashion 12.8% 17.3% Services/Education 8.2% 8.6% Beauty, Hair, Cosmetics, Personal Care 5.5% 7.7% Household 8.9% 7.1% Supermarket/

  31. Slide 31: Top 10 tenants by gross rental as at 31 March 2019

    Top 10 tenants by gross rental as at 31 March 2019 As % of As % of total Gross Tenant total NLA Rental Income 1 Cold Storage Singapore (1983) Pte Ltd1 5.4% 4.4% 2 Copitiam Pte Ltd2 3.8% 3.7% 3 Metro (Private) Limited3 5.6% 3.5% 4 Courts (Singapore) Limited 3.3% 2.9% 5 NTUC Fairprice Co-operative4 3.

  32. Slide 32: Historical portfolio information by quarter

    Historical portfolio information by quarter Occupancy by Properties Note: Yellow cells means property is undergoing AEI Property (Occupancy rate as at end of each quarter) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Causeway Point 99.7% 99.3% 99.1% 99.5% 99.9% 99.3% 99.9% 98.4% 98.7% 97.4% Nor

  33. Slide 33: Portfolio of six suburban retail properties

    Overview Portfolio of six suburban retail properties  Well-located suburban retail properties that enjoy good connectivity to public transport, high footfall and high occupancy Anchorpoint YewTee Point Causeway Point Northpoint City Bedok Point Changi City Point North Wing1 Legend Existing MRT Line

  34. Slide 34: Summary of FCT's portfolio of properties

    Appendix: Portfolio Information Summary of FCT’s portfolio of properties FCT Portfolio Northpoint City Yishun 10 Changi City Causeway Point Bedok Point YewTee Point Anchorpoint North Wing Retail Podium Point 416,301 sq ft 219,286 sq ft 10,398 sq ft 205,210 sq ft 82,713 sq ft 73,669 sq ft 70,988 sq f

  35. Slide 35: Appraised value of portfolio properties

    Balance sheet Appraised value of portfolio properties 15bps - 25bps compression in valuation cap rates for some malls compared to FY2017 FY2018 FY2017 Valuation @ 30 Sep 2018 Valuation @ 30 Sep 2017 Property Valuation Valuation Valuation Valuation Cap rate (a) Valuer Cap rate (a) Valuer ($ million)

  36. Slide 36: Frasers Property's retail assets in Singapore

    Overview Frasers Property’s retail assets in Singapore Northpoint City North Wing Northpoint City South Wing (FPL owns 100%) Causeway Point YewTee Point Singapore The Centrepoint Waterway Point (FPL owns 33.3%) Bedok Point Eastpoint Anchorpoint Robertson Walk Changi City Point Valley Point (6) Owned

  37. Slide 37: Experience Ask O) o -)

    Experience Ask O) o -) matters. 8 A Nl

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