Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — 3QFY12 Earnings Presentation

31 slides from Frasers Property's earnings presentation, Jul 25, 2012

  1. Slide 1: Frasers Commercial Trust 3QFY12 Financial Results

    Frasers Commercial Trust 3QFY12 Financial Results 25 July 2012

  2. 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

  3. Slide 3: Contents

    Contents 3  Results  Portfolio review  Capital management  Moving forward

  4. Slide 4: Results

    Results 2 GY unten TRUST

  5. Slide 5: Results – 3QFY12

     Results – 3QFY12 5 Key highlights:  Gross revenue of S$35.7m, ↑ 17% Y-o-Y  Net property income (“NPI”) of S$26.6m, ↑ 7% Y-o-Y  Distributable income to Unitholders of S$11.0m, ↑ 26% Y-o-Y  Distribution per Unit of 1.70₵, ↑ 23% Y-o-Y  China Square Central achieved 11% NPI growth y-o-y to S$4.7

  6. Slide 6: Financial highlights: 26% growth in distributable income in 3QFY12

     Results – Financial highlights 6 26% growth in distributable income in 3QFY12 1 Apr 2012 – 30 Jun 2012 3Q Y-o-Y Contributing factors (S$ ‘000) FY12 Change (%)  Higher contribution from Caroline Chisholm Centre Gross Revenue 35,745 17% due to acquisition and direct leases with underlying tenants o

  7. Slide 7: Financial highlights: YTD FY12 DPU rose by 17% Y-o-Y

     Results – Financial highlights 7 YTD FY12 DPU rose by 17% Y-o-Y 1 Oct 2011 – 30 Jun 2012 YTD Y-o-Y Contributing factors (S$ ‘000) FY12 Change (%)  Higher contribution from Central Park, Caroline Gross Revenue 97,280 9% Chisholm Centre due to acquisition and direct leases with underlying tenants o

  8. Slide 8: Higher NPI boosted by China Square Central and Caroline Chisholm Centre

     Results – Financial highlights 8 Higher NPI boosted by China Square Central and Caroline Chisholm Centre Net Property Income (S$m) TOTAL: S$26.641 million 3Q FY12 7% Singapore: S$13.777 million (52%) Australia: S$11.181 million (42%) Japan: S$1.683 million (6%) 26.6 Increase in Boosted by the 24.9

  9. Slide 9: 3Q and YTD DPU recorded impressive growth

     Results – Financial highlights 9 3Q and YTD DPU recorded impressive growth 16.8% 4.94 4.23 23.2% 1.70 1.38 3Q YTD FY11 DPU FY12 DPU

  10. Slide 10: Portfolio review

    Portfolio review Z FRASERS Ka COMMERCIAL TRUST

  11. Slide 11: Occupancy Rates & WALE

     Portfolio review – Occupancy Rates & WALE 11 WALE lengthened to 4.2 years following the acquisition of Caroline Chisholm Centre Geographical occupancy and % of NPI contribution As at Key portfolio statistics 30 June 2012 Ave Occupancy Rates % of NPI Contribution WALE by gross rental income 4.2 yea

  12. Slide 12: Lease expiry profile: Healthy lease expiry profile

     Portfolio review – Lease expiry profile 12 12 Healthy lease expiry profile Post-sale of KeyPoint would increase the level of income expiring in FY16 & beyond Portfolio lease expiry by gross rental income 45% Include KeyPoint Exclude KeyPoint 40% 38% 34% 35% 30% 28% 27% 25% 19% 17% 20% 15% 11% 11%

  13. Slide 13: Lease expiry profile: Breakdown of FY12 & FY13 profile

     Portfolio review – Lease expiry profile 13 Breakdown of FY12 & FY13 profile Property Lease Expiry as a proportion of total Portfolio Gross Rental Income FY12 exclude KeyPoint FY13 exclude KeyPoint 9% 7.9% 8% 7% 6.6% 6% 4.9% 5% 4% 3% 2.1% 2.2% 2% 1.4% 1.6% 0.7% 0.7% 1% 0% China Square Central 55 Ma

  14. Slide 14: Mid-term rent reviews

     Portfolio review – Mid-term rent reviews 14 14 Organic growth provided by built-in step-up rents FY12 - Fixed % lease rent reviews FY12 – 15 - Portfolio fixed % reviews GROSS RENTAL INCOME Portfolio gross rental income Weighted average fixed step % Average Total Property Leases step-up rent Proper

  15. Slide 15: Stability of income

     Portfolio review – Stability of income 15 Master lessee/ blue chip tenants with long leases contribute >49% of total gross rental income Master Lease Master Lease, Other Tenants, 16.9% % (Gross Rental Tenant Lease Expiry Income) 50.9% Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 16.9

  16. Slide 16: China Square Central – NPI grew 11% following expiry of master lease

     Portfolio review – Asset updates 16 China Square Central – NPI grew 11% following the expiry of the master lease  Tenancy activity: China Square Central – Cerebos Pacific renewed and expanded its lease for another 5 years, representing approximately 9.7% of net lettable area – Other major tenants

  17. Slide 17: China Square Central – income expiring in FY16 and beyond increase to 13.7%

     Portfolio review – Asset updates 17 China Square Central – income expiring in FY16 and beyond increase to 13.7% Lease expiry by gross rental income 80% Boosted by 60% Cerebos Pacific’s renewal and expansion of lease 40% 34.8% Committed 4.9% 20% 12.6% 13.7% 24.4% 9.6% 0% FY12 FY13 FY14 FY15 FY16 an

  18. Slide 18: Asset updates: China Square Precinct Master Plan

     Portfolio review – Asset updates 18 Future Telok Ayer MRT Station  China Square Precinct Master Plan – Collaborative effort between Far East Square, China Square Central & Great Eastern Centre – Create a vibrant retail, entertainment and hospitality destination – Far East Organization is planning

  19. Slide 19: Asset updates: China Square Precinct Master Plan

     Portfolio review – Asset updates 19  China Square Precinct Master Plan – Building markers, directional & circulation signs and locally-commissioned building mural artwork – Sustained line-up of activities, events and promotions is in the works – Project commenced in July 2012, and targeted for co

  20. Slide 20: Asset enhancement initiative – main tower

     Portfolio review – Asset updates 20 Artist impression  Asset enhancement initiative – main tower (18 Cross Street) – Upgrade main tower block office lobby and common areas – Complement the proposed covered link way – Capitalise on the opening of the future Telok Ayer MRT station in 2013

  21. Slide 21: Robust leasing activities within the portfolio

     Portfolio review – Asset updates 21 Robust leasing activities within the portfolio  55 Market Street, Singapore: Alexandra Technopark – New tenants ATC Trustees and Helios Lab – Boosted the occupancy level to 100.0% from 95.8% a quarter ago  Alexandra Technopark, Singapore: – Property under the

  22. Slide 22: Capital management

    Capital management 2. J RISERS TRUST

  23. Slide 23: Capital Management – Debt statistics

    23  Capital Management – Debt statistics 23 A portion of the investment in overseas assets is hedged naturally Statistics Borrowings and assets by currency As at 30 June 1,500 2012 1,325 Total Assets (S$’000) 2,179,983 Gross Borrowings (S$’000) 861,354 1,000 S$ million Units on Issue and Issuable 6

  24. Slide 24: Early refinancing of S$500m term loan facility at a lower interest margin

    24  Capital Management – Debt statistics 24 Early refinancing of S$500m term loan facility at a lower interest margin Debt Maturity Profile New SGD Facility - Interest rate for S$320m three-year loan is SOR + 1.55% margin - Interest rate for S$185m five-year loan is SOR + 1.83% margin - Overall ble

  25. Slide 25: Interest rate statistics: Hedged about 79% of Gross Borrowings

     Capital Management – Interest rate statistics 25 Hedged about 79% of Gross Borrowings Hedging debt Debt composition – floating vs. hedged As at As a % of: 30 June 2012 Floating, 20.8% Total Gross Borrowings 79.2% Hedged, 79.2% For quarter ended 30 June 2012

  26. Slide 26: Moving forward

    Moving forward ZA J iRsERs TRUST

  27. Slide 27: Market outlook - Singapore

     Market outlook - Singapore 27 Singapore office market recorded positive net absorption in Q2 2012  Market conditions 1 Singapore office new supply 2 – Office demand in Q2 2012 beat expectations with  Historical net supply 3,500 stronger leasing performance and positive net  Forecast supply 3,00

  28. Slide 28: Singapore office rents trend

     Market outlook - Singapore 28 Singapore office rents trend Singapore Grade A and Grade B office rents 1 $20.0 18.65 18.80 18.80 Rent (S$ psf / 2012 Q2 Previous High Change % month) $18.0 17.15 Grade A Rent 10.10 18.80 (08Q3) -46.3% $16.0 14.90 15.00 Grade B Rent 7.21 11.83 (08Q1) -39.1% $14.0 13.1

  29. Slide 29: Market outlook - Australia

     Market outlook - Australia 29 Premium Grade office market net rent between AUD 750 to AUD 950 Perth CBD supply 1 Perth CBD average net face rents 1 Net Face Rent (AUD per sqm pa)  Market conditions 1 – Tightest CBD market in Australia with above average demand – Forecast net face rents growth of

  30. Slide 30: Summary: Strategic initiatives delivering results

    30  Summary 30 Strategic initiatives delivering results  Savings of approximately 1% in Refinancing for the S$500 million SGD Facility interest margin Acquisition of Caroline Chisholm Centre Boosted NPI & lengthened WALE  China Square Central AEI In progress Sale of KeyPoint In progress Portfolio

  31. Slide 31: 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

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