Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q1 FY2016 Earnings Presentation
39 slides from Frasers Centrepoint Trust's earnings presentation, Jan 21, 2016
Slide 1: Financial Results Presentation for 1st Quarter FY2016
Frasers Centrepoint Trust Financial Results Presentation for 1st Quarter FY2016 ended 31 December 2015 21 January 2016
Slide 2: Important notice
Important notice 2 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 re
Slide 3: Contents
Contents 3 Results slide 4 Balance sheet slide 12 Operational performance slide 16 Northpoint AEI slide 23 Outlook slide 26 Appendix slide 29
Slide 4: Results
Results
Slide 5: 1Q16 Results Highlights
Results - 1Q16 5 1Q16 Results Highlights Financial performance • 1Q16 DPU of 2.87 cents, up 4.4% year-on-year (1Q15 DPU: 2.75 cents) • Gross Revenue of $47.1 million, down 0.2% year-on-year • Net Property Income of $33.5 million, up 2.0% year-on-year • Net Asset Value per Unit of $1.91 as at 31 De
Slide 6: 1Q16 DPU of 2.87 cents, up 4.4% year-on-year
Results – 1Q16 6 1Q16 DPU of 2.87 cents, up 4.4% year-on-year 1Q16 1Q15 Y-o-Y $’000 Oct 15 to Dec 15 Oct 14 to Dec 14 change Gross Revenue 47,075 47,178 ▼0.2% Drop due mainly to lower utility tariff rates, Property Expenses (13,531) (14,279) ▼5.2% fewer maintenance and replacement work done in 1Q1
Slide 7: FCT delivers steady and regular DPU
Results – 1Q16 7 FCT delivers steady and regular DPU FCT Quarterly DPU DPU (¢) +4.4% year-on-year 3.022 3.036 2.96 Highest first 2.88 2.875 2.859 2.87 quarter DPU 2.75 2.50 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
Slide 8: 1Q16 Gross Revenue comparable same period last year
Results – Performance by Properties 8 1Q16 Gross Revenue comparable same period last year Causeway Point was strongest performer among all malls Gross Revenue $ million 1Q16 1Q15 ▼ 0.2% 47.08 47.18 Bedok Point: Due to lower mall occupancy and average rent ▲ 1.6% compared to 1Q15 20.43 20.11 ▼ 0.3%
Slide 9: 1Q16 Property Expenses down 5.2% year-on-year
Results – Performance by Properties 9 1Q16 Property Expenses down 5.2% year-on-year Decrease due mainly to lower utility tariff rates, fewer maintenance works & replacements done in 1Q16 Property Expenses $ million 1Q16 1Q15 ▼ 5.2% 14.28 13.53 ▼ 4.4% ▼ 7.8% 5.16 5.40 ▼ 8.7% 3.08 3.34 ▼ 10.1% ▲ 2.2
Slide 10: 1Q16 Net Property Income up 2.0% year-on-year to $33.5 million
Results – Performance by Properties 10 1Q16 Net Property Income up 2.0% year-on-year to $33.5 million Net Property Income (NPI) $ million 1Q16 1Q15 ▲ 2.0% 33.54 32.90 ▲ 3.8% 15.27 14.71 ▲ 2.4% ▲ 4.6% 9.34 9.12 0.0% 0.0% ▼ 21.7% 4.12 3.94 2.48 2.48 1.08 1.38 1.26 1.26 FCT Portfolio Causeway Point N
Slide 11: NPI contribution by Properties
Results – NPI contribution by Properties 11 Bigger malls to continue to drive portfolio NPI growth Causeway Point, Northpoint and Changi City Point account for 86% of portfolio NPI Percentage of Net Property Income contribution by mall in 1Q16 Anchorpoint Bedok Point 3.8% 3.2% YewTee Point 7.4% Ch
Slide 12: Balance sheet
Balance sheet
Slide 13: Strong financial position with stable gearing level at 28.3%
Balance sheet 13 Strong financial position with stable gearing level at 28.3% As at 31 December 15 30 September 15 Gearing ratio1 28.3% 28.2% Increase in $6 Interest cover for the quarter2 7.04 times 7.09 times million borrowing from unsecured Total borrowings $724 million $718 million short-term
Slide 14: NAV per unit stable at $1.91
Balance sheet 14 NAV per unit stable at $1.91 31 Dec 2015 30 Sep 2015 Increase of $79.8 million due As at S$’000 S$’000 mainly to: • $70 million bank borrowings Non-current assets 2,528,396 2,527,148 due December 2016 being re-classified from non- Current assets 29,375 21,598 current liabilities t
Slide 15: Weighted average debt maturity: 1.45 years
Balance sheet 15 Weighted average debt maturity @ 31 December 2015: 1.45 years Type of borrowings Aggregate amount $284m (39.2% of total Secured bank borrowings: S$334 million (46.1%) borrowing) Unsecured bank borrowings: S$170 million (23.5%) 20 Medium Term Note: S$220 million (30.4%) $190m (26.2
Slide 16: Operational performance
Operational performance
Slide 17: Overall portfolio occupancy at 94.5%
Operational performance 17 17 Overall portfolio occupancy at 94.5% • Stable occupancy at Causeway Point and Northpoint • Improved occupancy at YewTee Point and Anchorpoint • Some transitional vacancy at Changi City Point and Bedok Point Mall Occupancy 31 Dec 14 31 Mar 15 30 Jun 15 30 Sep15 31 Dec
Slide 18: Average rental reversion of 13.7% for 1Q16
Operational performance 18 Average rental reversion of 13.7% for 1Q16 No. of NLA (sq ft) As % Mall’s Change compared to 1Q16 preceding rental (1 Oct – 31 Dec 2015) renewals Renewed NLA rates1 Causeway Point 18 50,110 12.1% 12.5% Due mainly to a single lease signed at a Northpoint 9 9,644 4.1% 26.3
Slide 19: Maintaining positive rental reversions through economic cycles
Operational performance 19 Maintaining positive rental reversions through economic cycles FCT rental reversions1 (FY2007 – 1QFY2016) 15.0% 14.0% 13.7% 12.8% 12.1% 8.6% 7.2% 7.7% 6.5% 6.3% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 1QFY2016 1. Change between the average rental r
Slide 20: Portfolio Lease Expiry
Operational performance 20 Portfolio Lease Expiry as at 31 December 2015 Weighted Average Lease Expiry (WALE) Expiry profile as % of total gross rental income By NLA 1.61 years (4Q15: 1.50 years) 36.3% 31.0% By Gross Rent 1.59 years 19.3% (4Q15: 1.54 years) 11.1% 2.3% Lease expiry1 as at 31 Dec 20
Slide 21: Larger malls account for 82% of NLA to be renewed
Operational performance 21 The 3 larger malls account for 82% of the NLA to be renewed in the remaining 9 months of FY2016 as at 31 December 2015 For remaining 9 months Number of Nett Lettable Area as % of leased as % of total gross (2Q-4Q) in FY2016 Leases Expiring (NLA) Expiring (sq ft) area of
Slide 22: 1Q16 shopper traffic up 8% year-on-year
Operational performance 22 1Q16 shopper traffic up 8% year-on-year Northpoint registered a double-digit year-on-year increase, as more commuters and shoppers pass through the mall after the closure of an outdoor public corridor adjacent to the mall in August 2015 due to construction works Shopper
Slide 23: Northpoint AEI
Northpoint AEI
Slide 24: Asset Enhancement Initiative for Northpoint Shopping Centre
Northpoint AEI 24 Asset Enhancement Initiative (AEI) for Northpoint Shopping Centre 18-month AEI scheduled to commence in Mar 2016 and expected to complete in September 2017 Mall to remain open for business during course of AEI AEI will focus on enhancing shopper experience and comfort; boos
Slide 25: AEI to enable integration with Northpoint City
Northpoint AEI 25 AEI to enable Northpoint to benefit from the integration with upcoming retail component of Northpoint City by Frasers Centrepoint Limited Northpoint North Park Residences New retail component of Seamless integration Northpoint City
Slide 26: Outlook
Outlook
Slide 27: Outlook for FY2016
Outlook 27 Outlook for FY2016 • Based on MTI’s advance estimates, the Singapore economy grew by 2.0% year-on- year in the fourth quarter of 2015, compared to 1.8% in the previous quarter. For 2015, the economy grew by 2.1% which is in line with the growth forecast of close to 2.0% • Asset enhancem
Slide 28: Thank you
Thank you Analyst & media contact: Chen Fung-Leng Frasers Centrepoint Asset Management Ltd Tel: (65) 6277-2657 Email: fungleng.chen@fraserscentrepoint.com Website: www.fct.sg
Slide 29: Distribution details
Appendix: Distribution details 29 Distribution details Distribution period 1 October 2015 to 31 December 2015 Distribution per unit 2.87 cents Ex-date 27 January 2016 (Wednesday) Books closure date 29 January 2016 (Friday) at 5.00 pm Payment date 29 February 2016 (Monday)
Slide 30: 1Q16 year-on-year and quarter-on-quarter comparison
Appendix: Year-on-year and quarter-on-quarter comparison 30 1Q16 year-on-year and quarter-on-quarter comparison Year-on-Year Comparison Quarter-on-Quarter Comparison 1Q16 Change Change 1Q15 4Q15 $’000 (unless otherwise indicated) Inc/(Dec) Inc/(Dec) Gross Revenue 47,075 47,178 (0.2%) 47,479 (0.9%)
Slide 31: Portfolio Information as at 31 December 2015
Appendix: Portfolio Information as at 31 December 2015 31 FRASERS CENTREPOINT TRUST PORTFOLIO INFORMATION AS AT 31 December 2015 Portfolio NLA (sq ft) Causeway Point (CWP) 415,774.0 Northpoint (NP1 and NP2) 235,850.0 Anchorpoint (ACP) 70,988.6 YewTee Point (YTP) 73,669.7 Bedok Point (BPT) 82,713.0
Slide 32: Portfolio Lease expiry profile
Appendix: Portfolio Lease expiry profile as at 31 December 2015 32 Lease expiry profile (FYE Sep 30) FY16 FY17 FY18 FY19 FY20 FCT Portfolio No of leases 145 252 233 45 10 Expiries as % Total NLA 18.6% 36.0% 29.8% 11.9% 3.8% NLA (sq ft) Expiring 191,285 369,034 305,906 121,723 38,514 Expiries as %
Slide 33: Trade mix as at December 2015
Appendix: Trade mix as at 31 December 2015 33 Trade Classifications % NLA % Rents 1 Fashion 14.8% 21.3% 2 Household 8.6% 7.7% 3 Services/Education 8.3% 8.8% 4 Beauty, Hair, Cosmetics, Personal Care 5.3% 7.7% 5 Food & Restaurants 29.8% 34.4% 6 Books, Music, Art & Craft, Hobbies 3.5% 3.1% 7 Sports A
Slide 34: Top tenants by gross rental
Appendix: Top 10 tenants by gross rental as at 31 December 2015 34 No. Tenant % NLA % Rents 1 Cold Storage Singapore (1983) Pte Ltd1 7.6% 5.4% 2 Copitiam Pte Ltd2 3.8% 3.6% 3 Metro (Private) Limited3 5.6% 3.3% 4 Courts (Singapore) Limited 3.3% 2.7% 5 Koufu Pte Ltd 2.8% 2.3% 6 Food Republic Pte Ltd
Slide 35: Historical portfolio information by quarter
Appendix: Historical portfolio information by quarter 35 FRASERS CENTREPOINT TRUST FINANCIAL & OPERATIONAL METRICS Note: Yel l ow cel l s mea ns property i s undergoi ng AEI Quarterly historical data 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Gross rent ($ '000) CWP 16,864 17,732 17,509 16,426 1
Slide 36: Historical profit and loss statement by quarter
Appendix: Historical profit and loss statement by quarter 36 FRASERS CENTREPOINT TRUST PROFIT AND LOSS STATEMENT $'000 Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Note: REVENUE Gross rent 35,304 35,839 36,843 41,467 41,773 41
Slide 37: Historical portfolio information by financial year
Appendix: Historical portfolio information by financial year 37 FRASERS CENTREPOINT TRUST FINANCIAL & OPERATIONAL METRICS Yearly historical data (FYE Sep) FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Note: Yellow cells means property is undergoing AEI Gross Rent ($ '000) CWP 45,674 48,805 50,669 5
Slide 38: Location of FCT's Malls
Appendix: Location of FCT’s Malls 38 Singapore-centric, suburban-focused retail asset portfolio Woodlands Yishun BUS BUS Legend YewTee : FCT’s properties : Sponsor’s pipeline asset Expo Bedok Queenstown BUS The Centrepoint
Slide 39: Sponsor's retail assets in Singapore
Appendix: Sponsor’s retail assets 39 Sponsor’s retail assets in Singapore 12 retail malls in Singapore managed by Frasers Centrepoint Limited, including 6 malls in FCT Northpoint Retail Component of Northpoint City (2) (1): FCL owns 1/3 proportionate Causeway Point (under development) share of Wate
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