Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Commercial Trust — Q4 FY2013 Earnings Presentation
35 slides from Frasers Property's earnings presentation, Oct 23, 2013
Slide 1: Frasers Commercial Trust 4QFY13 Financial Results
Frasers Commercial Trust 4QFY13 Financial Results 23 October 2013
Slide 2: 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 cause the actual resu
Slide 3: Contents
Contents 3 Results Portfolio review Capital management Moving Forward
Slide 4: Results
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Slide 5: Results – Key highlights
Results – Key highlights 5 1 Better performance of the properties Higher rentals achieved for the properties Contribution from additional 50% interest in Caroline Chisholm Centre Off-set by divestments of KeyPoint and properties in Japan in 1QFY13 and FY12 and weaker Australian dollar Weaker Austral
Slide 6: Results – Financial highlights: 21% rise in distributable income for 4QFY13
Results – Financial highlights 6 21% rise in distributable income for 4QFY13 4QFY13 Y-o-Y 1 Jul 2013 – 30 Sept 2013 Contributing factors (S$ ‘000) Change (%) Higher contribution from China Square Central due to higher occupancy and rental 19% Gross Revenue 28,812 rates achieved, offset by weaker Aus
Slide 7: Results – Financial highlights: 19% rise in FY13 distributable income
Results – Financial highlights 7 19% rise in FY13 distributable income 1 Oct 2012 – 30 Sept FY13 Y-o-Y Contributing factors 2013 (S$ ‘000) Change (%) Higher contribution from Caroline Chisholm Centre due to acquisition of remaining 50% interest and higher rental rates achieved for the properties, of
Slide 8: Results – Financial highlights: Net Property Income
Results – Financial highlights 8 Higher NPI from China Square Central and Caroline Chisholm Centre, offset by divestments in 1QFY13 and 4QFY12 Net Property Income (S$m) TOTAL: S$90.9 million FY13* Singapore: S$42.7 million (47%) Australia: S$47.9 million (53%) * * Includes KeyPoint which was diveste
Slide 9: Results – Financial highlights: DPU growth
Results – Financial highlights 9 Fourth consecutive year of growth in DPU since recapitalisation exercise DPU grew at 15.8% CAGR from FY09 – FY13 DPU (Cents) ^ Adjusted for Unit consolidation. In FY09, FCOT changed its financial year end from 31 December to 30 September. For comparison purposes, the
Slide 10: Results – Distribution payment
Results – Distribution payment 10 Distribution to be paid on 29 November 2013 Distribution Period 1 July 2013 to 30 September 2013 Distribution of 2.0766 cents per Unit comprising: a) taxable income distribution of 1.0842 cents; Ordinary Unit Distribution Rate b) tax-exempt income distribution of 0.
Slide 11: Portfolio review
Portfolio review COMMERCIAL TRUST
Slide 12: Portfolio review – Valuation
Portfolio review – Valuation 12 3.1% increase in overall portfolio valuation driven mainly by the Singapore properties Date of Local currency Translation as at Variance from 30 September valuation Value 30-Sep-13 2012 Asset (millions) (S$ million) 1 (S$ million) (%) China Square Central 30-Sep-13 S$
Slide 13: Balanced portfolio of Singapore and Australian properties
Portfolio review – Valuation 13 Balanced portfolio consisting of Singapore and Australian properties No one property consist of more than 32% of property value Singapore Perth Canberra Singapore $ 1,171.0 65% Australia $ 640.4 35% Total $ 1,811.4 100% As at 30 September 2013. Excludes retail turnove
Slide 14: Portfolio review – Occupancy Rates & WALE
Portfolio review – Occupancy Rates & WALE 14 Strong average occupancy rate of 97.9% Healthy WALE of 4.6 years Geographical occupancy and % of NPI contribution As at Key portfolio statistics 30 September 2013 Ave Occupancy 97.9% WALE by gross rental income 4.6 years As at 30 September 2013. Excludes
Slide 15: Portfolio review – Lease expiry profile
Portfolio review – Lease expiry profile 15 15 More than 42% of lease expiry in FY2018 and beyond provides income stability Portfolio lease expiry by gross rental income Number of leases expiring 51 50 51 8 16 NLA (sq ft) expiring 1,153,989 95,375 186,122 85,317 706,780 Expiries as % total NLA 50.6%
Slide 16: Lease expiry profile: potential for higher income
Portfolio review – Lease expiry profile 16 Potential for higher income arising from: Low passing rents Higher occupancy Represents the expiry of Property Lease Expiry as a proportion of total master lease of Alexandra Portfolio Gross Rental Income in FY14 Technopark Number of leases 40 (35 after com
Slide 17: Lease expiry profile of Alexandra Technopark underlying leases
Portfolio review – Lease expiry profile of Alexandra Technopark underlying leases 17 17 More than 39% of lease expiry in FY2018 and beyond after early renewal of 511,000 square feet of leases Provide income stability after the expiry of Master Lease in August 2014 Alexandra Technopark underlying lea
Slide 18: Portfolio review – Rental reversions
Portfolio review – Rental reversions 18 Positive rental reversions for new and renewed leases commenced in 4QFY13^ and FY13* Rental reversions achieved in 4QFY13^ Rental reversions achieved in FY13* 23.2% 26.1% 18.7% 15.1% 12.0% 11.0% 7.4% 4.4% China 55 Market Alexandra Central Park China 55 Market
Slide 19: Portfolio review – Mid-term rent reviews
Portfolio review – Mid-term rent reviews 19 19 More than 41% of leases have built-in step-up rents FY14 - Fixed % and other fixed lease rent reviews FY14 – 17 - Portfolio fixed % reviews GROSS RENTAL INCOME Average Total Property Leases step-up rent Property Portfolio China Square 5 3.1% 4.1% 1.0% C
Slide 20: Portfolio review – Stability of income
Portfolio review – Stability of income 20 Master lessees/ blue chip tenants with long leases contribute 67% of total gross rental income Master Leases % (Gross Rental Tenant Lease Expiry Income) Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 20.8% Blue Chip Tenants with Long Leases % (Gr
Slide 21: Asset updates: China Square Central enhancement
Portfolio review – Asset updates 21 Precinct Master Plan and asset enhancement of office tower have improved positioning and will boost growth potential of China Square Central Retail tenants have been improved and new concepts will continue to be brought in to rejuvenate the area Nankin Mall after
Slide 22: Asset updates: Telok Ayer MRT connectivity
Portfolio review – Asset updates 22 Telok Ayer MRT station to open on 22 December 2013 will increase connectivity to China Square Central China Square Central is now close to 3 MRT stations China Square Central is located within: 230 m to Telok Ayer MRT station 400 m to Chinatown MRT station 520 m t
Slide 23: Asset updates: Alexandra Technopark master lease expiry
Portfolio review – Asset updates 23 Expiry of Master Lease at Alexandra Technopark in August 2014 provides income uplift Positive reversions arising from: Immediate uplift in income after the expiry of the Master Lease Low underlying passing rents Alexandra Technopark is strategically located with g
Slide 24: Singapore asset updates
Portfolio review – Singapore asset updates 24 China Square Central – 55 Market Street – full Alexandra Technopark – robust leasing activities occupancy rate High occupancy rate Occupancy 93.5% 100.0% 97.5% (underlying occupancy) Average underlying passing gross rent: S$3.5 psf New leases , Panna Har
Slide 25: Australia asset updates
Portfolio review – Australia asset updates 25 Central Park – Long Caroline Chisholm Centre –full WALE of 4.2 years occupancy with long WALE of 11.8 years Occupancy 93.5% 100.0% Property occupied by a single tenant, i.e. the Commonwealth of Australia as represented by Centrelink (Aaa rated*) until Ju
Slide 26: Capital management
Capital management
Slide 27: Capital Management – Debt statistics
27 Capital Management – Debt statistics 27 Healthy interest coverage ratio of 4.49 times Low all-in interest rate of 2.7% Borrowings in AUD provide natural hedge for the Australian properties Statistics Borrowings and assets by currency As at 30 September 2013 1,400 Total Assets (S$’000) 1,862,544 1
Slide 28: Portfolio reshaping – effects of CPPU net redemption/conversion on DPU
28 Portfolio reshaping– effects of CPPU net redemption/conversion on DPU 28 Redemption of CPPUs is accretive to Unitholders In FY13, 330.3 million CPPUs were either redeemed or converted1 On 1 October 2013, a further 11.1 million CPPUs were converted Only 0.3% CPPUs remain outstanding, after taking
Slide 29: Capital Management and debt statistics
29 Capital Management and debt statistics 29 Well spread debt maturity profile Hedged about 51% of gross borrowings Established $1 bil multicurrency MTN programme in September 2013 – provides an alternative source of financing Forward hedge of anticipated net cashflows from Australia mitigates curre
Slide 30: Moving forward
Moving forward
Slide 31: Solid fundamentals – Singapore office rents trend
2. Solid fundamentals – positive market outlook 31 Singapore office rents trend – Rents have stabilised and poised to grow Singapore Grade A and Grade B office rents1 1 Source: CBRE Research
Slide 32: Solid fundamentals – demand, supply and outlook
2. Solid fundamentals – demand, supply and outlook 32 Office supply-demand dynamics1 Island-wide net absorption was 786,959 sf in Q3 2013 Overall island-wide office vacancy rate increased slightly q-o-q from 4.3% to 5.1%, but still lower than the 10-year average vacancy rate of 7.2% Over the next 12
Slide 33: Premium Grade Perth office market remains resilient
2. Solid fundamentals – positive market outlook 33 Premium Grade Perth office market remains resilient Perth CBD supply1 Perth CBD average net face rents1 Market conditions 1 – Perth CBD vacancy rate continues to be tight at 6.9% – Property Council of Australia figures reflect a flight to quality, v
Slide 34: Delivering growth
Delivering growth 34 34 Various initiatives in place to deliver growth in distributable income Positive rental reversions Expiry of the Enhanced China Master Lease at Square Central Alexandra with increased Technopark in connectivity August 2014 Redemption/ conversion of Grow portfolio in CPPUs cont
Slide 35: Thank you
Thank you Frasers Centrepoint Asset Management (Commercial) Limited Level 21 | 438 Alexandra Road | Alexandra Point | Singapore 119958 Tel: +65 6276 4882| Fax: +65 6276 8942| Email: fcot@fraserscentrepoint.com www. fraserscommercialtrust.com
Frasers Commercial Trust — Q4 FY2013 Earnings Presentation on 6ix