Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Commercial Trust — Q2 2009 Earnings Presentation
36 slides from Frasers Property's earnings presentation, Jul 28, 2009
Slide 1: Frasers Commercial Trust 2Q2009 Financial Results
Frasers Commercial Trust 2Q2009 Financial Results 28 July 2009
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: Agenda
Agenda 3 2Q2009 Results Quarter in review Market conditions Recapitalisation measures initiated Financial highlights Distribution payment Portfolio review Valuations Lease expiry profile Stability of income Key tenants of the Enlarged Portfolio Mid-term rent reviews Asset u
Slide 4: 2Q2009 Results
2Q2009 Results mm GH (ounenast TRUST
Slide 5: 2Q2009 Results – Quarter in review
2Q2009 Results – Quarter in review 5 2Q2009: announced significant recapitalisation measures, DPU holding from previous quarter Management’s focus: Refinancing of maturing loans Asset valuations: – 12 June: announced extension of July-maturing debt to – Holding values from aggregate writedowns
Slide 6: 2Q2009 Results – Market conditions
2Q2009 Results – Market conditions 6 Commercial office sectors in all markets showed continued weakness in fundamentals, however the rate of decline has softened in 2Q2009 and there are brighter signs ahead Challenges still apparent for commercial property owners – Slowing pressure on property v
Slide 7: 2Q2009 Results – Recapitalisation measures initiated
2Q2009 Results – Recapitalisation measures initiated 7 Transforming FCOT into a strong, developer-sponsored REIT backed by the blue-chip Fraser & Neave Group New management from August 2008, Build a Robust Capitalise on Recapitalise to Relationship completed portfolio platform for refinance with S
Slide 8: 2Q2009 Results – Financial highlights
2Q2009 Results – Financial highlights 8 2Q2009 v 1Q2009: slight increase on 1Q2009 numbers, total 1H2009 DPU of 1.44 cents 2Q2009 1Q2009 Change Contributing factors (S$’000) (S$’000) (%) 5.4% Lower contribution from KeyPoint following full utilisation of Gross Revenue 22,673 23,962 outstanding i
Slide 9: 2Q2009 Results – Distribution payment
2Q2009 Results – Distribution payment 9 1H2009 DPU: 1.44 cents per Unit to be paid on Friday, 28 August 2009 Distribution Period 1 January 2009 to 30 June 2009 Distribution of 1.44 cents per Unit comprising: a) taxable income distribution of 0.91 cents; Distribution Rate b) tax-exempt income distr
Slide 10: Portfolio review
Portfolio review mm GH (ounenast TRUST
Slide 11: Portfolio review – Valuations
Portfolio review – Valuations 11 Fair values: valuations held constant from 1Q2009, reflective of past write-downs and stablising property markets, NTA of S$0.82 per Unit (ex-distribution and pre-Rights Issue) Variance from 31 March 2009 Local currency Translation as at FX translation Date of valu
Slide 12: Portfolio review – Lease expiry profile
Portfolio review – Lease expiry profile 12 12 Lease expiry profile: gross rental profile of the Existing Properties will be strengthened by the addition of 5-year Master Lease from Alexandra Technopark Existing Enlarged With Alexandra Technopark, as a percent of FCOT’s total Key portfolio statisti
Slide 13: Portfolio review – Lease expiry profile
Portfolio review – Lease expiry profile 13 13 Lease expiry profile: Australian properties and Master Leases will anchor the long weighted average lease expiry, enhancing the secure long-term income stream Lease Expiry Profile by Gross Rental Income Post-acquisition of Alexandra Technopark, Existin
Slide 14: Portfolio review – Lease expiry profile: upcoming expiries
Portfolio review – Lease expiry profile 14 Upcoming lease expiries: limited upcoming expiries in terms of the Enlarged Portfolio’s gross rental income, <20% expiring during the next 1.5 years 2H2009 remaining lease expiries GROSS RENTAL INCOME NET LETTABLE AREA(NLA) Leasing factors Enlarged Enlarg
Slide 15: Portfolio review – Stability of Income
Portfolio review – Stability of Income 15 Cash flow base: Post Transactions, master lessees/ blue chip tenants with long leases contribute over 60% of total gross rental income Existing Properties Enlarged Portfolio Master Lease, Other Tenants, Master Leases, 21.1% 37.1% 37.6% Other Tenants, 46.9%
Slide 16: Portfolio review – Key tenants of the Enlarged Portfolio
Portfolio review – Key tenants of the Enlarged Portfolio 16 Master Leases Tenant Lease Expiry % (Gross Rental Income) Orrick Investments Pte Limited (Alexandra Technopark) Aug 2014 20.9% Unicorn Square Limited (China Square Central) Mar 2012 16.7% Total 37.6% Longer term Blue Chip Tenants with Lon
Slide 17: Portfolio review – Mid-term rent reviews
Portfolio review – Mid-term rent reviews 17 17 Fixed rent step-ups: almost 21% of the gross rental income of the Enlarged Portfolio has built-in average organic growth of approximately 4% for 2H2009 2H2009 - Fixed % mid-lease term rent reviews FY2010-2013 - Enlarged Portfolio Fixed % reviews GROSS
Slide 18: Portfolio review – Asset updates
Portfolio review – Asset updates 18 KeyPoint Cosmo Plaza, Osaka Tenancy activity: Divestment strategy: – New retail tenants commencing in 3Q2009 – Market conditions challenging for an immediate include a child care centre, fast food sandwich sale shop – continuing to make office space more – W
Slide 19: Capital management
Capital management 2. J IRASERS TRUST
Slide 20: Capital management – Snapshot & debt statistics
Capital management – Snapshot & debt statistics 20 Exercise of most viable option to recapitalise: Rights Issue, Acquisition and issue of Convertible Perpetual Preferred Units (CPPUs) approved by Unitholders on 22 July Snapshot Debt statistics As at As at As at 30 June 31 December 30 June 2009 200
Slide 21: Capital management – Refinancing structure
21 Capital management – Refinancing structure 21 Refinance: Restructuring borrowings to create natural hedge for non-S$ investments Current Borrowings and Existing Portfolio (1) Refinanced Borrowings and Enlarged Portfolio (2) 1,500 1,500 1,277 1,000 934 1,000 S$ million S$ million 626 458 500 458
Slide 22: Capital management – Debt maturity profile
Capital management – Debt maturity profile 22 Key management action: accepted credit approved offers of finance to term the debt out to 2012, no debt maturing for three years Debt maturity profile – before and after refinancing 900 • Announced on 30 June, the two new facilities are 3-year transfer
Slide 23: Portfolio detail
Portfolio detail 2. J IRASERS TRUST
Slide 24: Portfolio detail – 2Q2009 results: net property income trends
Portfolio detail – 2Q2009 results 24 Net property income trends: cessation of income support at KeyPoint in 2Q vs 1Q, tenancy issues at Cosmo Plaza, but balance of properties is stable Net property income (S$m) 6.60 TOTAL: S$17.073 million 2Q2009 Singapore: S$8.187 million (48%) Australia S$6.806
Slide 25: Portfolio detail – Asset diversification
Portfolio detail – Asset diversification 25 Geographic and asset diversification: Pan-Asian investment strategy limits exposure to any one concentrated property market Asset values 1 Net property income TOTAL: S$1,598.4 million TOTAL: S$17.073 million 2Q2009 Singapore: S$934.2 million (58%) Singap
Slide 26: China Square Central, Singapore
China Square Central, Singapore 26 China Square Central is an office and retail development located in the financial district of Singapore. The property is a grade “A” 15-storey office tower and a retail complex. It is well-served by both Raffles Place and Chinatown MRT stations, located within 500
Slide 27: 55 Market Street, Singapore
55 Market Street, Singapore 27 55 Market Street is a high quality commercial property located in the heart of the financial district at Raffles Place. The property comprises 15 office levels and two floors of retail (including basement). It was acquired with vacant possession and had committed occup
Slide 28: KeyPoint, Singapore
KeyPoint, Singapore 28 KeyPoint is an integrated 25-storey commercial development located at the junction of Beach Road and Jalan Sultan, Singapore. The property comprises a three-storey podium, a 22-storey office tower and a four-storey car park block containing 227 car bays. It is well-served by b
Slide 29: Central Park, Perth
Central Park, Perth 29 Central Park is a “premium” grade office tower and the tallest building in Perth. Located on St Georges Terrace, Central Park is a pre-eminent business address, in the heart of the CBD and shopping precinct. The property comprises a 47-level office tower with on-site tenant pa
Slide 30: Caroline Chisholm Centre (Centrelink Headquarters), Canberra
Caroline Chisholm Centre (Centrelink Headquarters), Canberra 30 The Caroline Chisholm Centre is a new contemporary-designed, five storey “Grade A” office complex. The property is strategically located within the core of the Tuggeranong Town Centre, one of four town centres within the city of Canberr
Slide 31: Cosmo Plaza, Osaka
Cosmo Plaza, Osaka 31 Cosmo Plaza is a 14-storey building, comprising 11 levels of high quality commercial office space, one level of retail space, two levels of auditorium and conferencing facilities and 234 car spaces. The property is located in Nanko Cosmo Square, within Suminoe Ward, Osaka and i
Slide 32: Azabu Aco Building, Tokyo
Azabu Aco Building, Tokyo 32 Azabu Aco comprises three levels of commercial office space, basement office/studio space and two car spaces and is located in the Minato-ku ward of Tokyo, a central commercial and residential district in Tokyo. The property is situated approximately 250 metres northwest
Slide 33: Ebara Techno-Serve Headquarters Building, Tokyo
Ebara Techno-Serve Headquarters Building, Tokyo 33 33 Ebara Techno-Serve comprises five levels of high quality commercial office space and is located within Ota Ward, a southern ward of Tokyo. It is located approximately two kilometres from Tokyo International Airport (Haneda), the main domestic air
Slide 34: Galleria Otemae Building, Osaka
Galleria Otemae Building, Osaka 34 Galleria Otemae is a 12-storey building, comprising commercial office space, ground floor and basement retail space and 48 car spaces. It is prominently located in the Chuo Ward, an administration and financial district of Osaka. Galleria Otemae is within a short w
Slide 35: Australian Wholesale Property Fund (AWPF), Sydney
Australian Wholesale Property Fund (AWPF), Sydney 35 35 Diversified Australian property portfolio Providing exposure to Sydney CBA office and retail and suburban Sydney retail assets No ‘fees on fees’ Key Investment Statistics Current unit holding 39,758,513 Current investment A$22.6m (S$26.3
Slide 36: Thank you
Thank you Frasers Centrepoint Asset Management (Commercial) Limited Level 21 | 438 Alexandra Road | Singapore 119958 Tel: +65 6276 4882| Fax: +65 6276 8942| Email: fcot@fraserscentrepoint.com www. fraserscommercialtrust.com
Frasers Commercial Trust — Q2 2009 Earnings Presentation on 6ix