Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Commercial Trust — 1QFY13 Earnings Presentation
33 slides from Frasers Property's earnings presentation, Jan 25, 2013
Slide 1: Frasers Commercial Trust 1QFY13 Financial Results
Frasers Commercial Trust 1QFY13 Financial Results 25 January 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
J ERASERS TRUST
Slide 5: Results – 1QFY13 key highlights
Results – 1QFY13 5 Key highlights: 1QFY13 distributable income to Unitholders of S$10.3m, ↑ 6.9% Y-o-Y Distribution to CPPU holders of S$4.7m, represents an annualised 5.5% distribution yield on the offer price of S$1.0 Caroline Chisholm Centre recorded higher NPI of S$5.5 million as a result of the
Slide 6: Results – Financial highlights
Results – Financial highlights 6 7% rise in distributable income for 1QFY13 1QFY13 Y-o-Y 1 Oct 2012 – 31 Dec 2012 Contributing factors (S$ ‘000) Change (%) Higher contribution from Caroline Chisholm Centre due to acquisition of remaining 50% interest and underlying revenue Gross Revenue 29,692 3% re
Slide 7: Higher NPI from Caroline Chisholm Centre offset by divestments
Results – Financial highlights 7 Higher NPI from Caroline Chisholm Centre offset by divestments in 1QFY13 Net Property Income (S$m) TOTAL: S$22.9 million 1QFY13 Singapore: S$10.3 million (45%) Australia: S$12.3 million (54%) Japan: S$0.3 million (1%) * * Includes KeyPoint which was divested on 28 Se
Slide 8: Continuous growth in DPU
Results – Financial highlights 8 Continuous growth in DPU 4.6% DPU growth for 1QFY13 4.6% DPU (Cents) * Adjusted for Unit consolidation
Slide 9: Results – Distribution payment
Results – Distribution payment 9 Distribution to be paid on 28 February 2013 Distribution Period 1 October 2012 to 31 December 2012 Distribution of 1.5832 cents per Unit comprising: a) taxable income distribution of 0.9040 cents; Ordinary Unit Distribution Rate b) tax-exempt income distribution of 0
Slide 10: Portfolio review
Portfolio review J ERASERS TRUST
Slide 11: Valuation: Balanced portfolio of Singapore and Australian properties
Portfolio review – Valuation 11 Balanced portfolio consisting of Singapore and Australian properties No one property consist of more than 32% of property value Caroline Chisholm Centre, 14% China Square Central, 32% Central Park, 25% Singapore 55 Market Street, 7% Alexandra Technopark, 22% Perth Can
Slide 12: Occupancy Rates & WALE
Portfolio review – Occupancy Rates & WALE 12 Healthy average occupancy rate of 94.6% Healthy WALE of 4.9 years Geographical occupancy and % of NPI contribution As at Key portfolio statistics 31 December 2012 Ave Occupancy 94.6% WALE by gross rental income 4.9 years As at 31 December 2012. Excludes r
Slide 13: Lease expiry profile
Portfolio review – Lease expiry profile 13 13 More than 46% of lease expiry in FY2017 and beyond provides income stability Portfolio lease expiry by gross rental income Number of leases expiring 51 42 36 11 19 NLA (sq ft) expiring 174,821 1,133,311 82,518 58,615 708,867 Expiries as % total NLA 8.1%
Slide 14: Lease expiry profile – low passing rents
Portfolio review – Lease expiry profile 14 Low passing rents presents potential for higher income Property Lease Expiry as a proportion of total Portfolio Gross Rental Income Ave passing rent for expiring leases Number of leases expiring 42 7 2 Average passing rent $6.2 $5.5 AUD $638 As at 31 Decemb
Slide 15: Mid-term rent reviews
Portfolio review – Mid-term rent reviews 15 15 More than 35% of leases have built-in step-up rents FY13 - Fixed % and other fixed lease rent reviews FY13 – 16 - Portfolio fixed % reviews GROSS RENTAL INCOME Average Total Property Leases step-up rent Property Portfolio China Square 4 8.4% 3.5% 0.7% C
Slide 16: Stability of income
Portfolio review – Stability of income 16 Master lessees/ blue chip tenants with long leases contribute 68% of total gross rental income Master Leases % (Gross Rental Tenant Lease Expiry Income) Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 22.2% Blue Chip Tenants with Long Leases % (Gr
Slide 17: Asset updates – China Square Central tenancy
Portfolio review – Asset updates 17 China Square Central – Healthy tenancy activities Healthy tenancy activities: – Approx. 36,000 sq ft of new leases, renewals and committed leases secured during the quarter. Diverse mix of tenants including consultancy/business services, legal, IT products & servi
Slide 18: Asset updates – Precinct Master Plan
Portfolio review – Asset updates 18 Precinct Master Plan initiatives on schedule Installation of columns and trusses are in progress PMP scheduled to be completed in the first quarter of 2013 Retail offering being upgraded Covered linkway Artist impression
Slide 19: Asset updates – Asset Enhancement Initiatives
Portfolio review – Asset updates 19 China Square Central – Asset Enhancement Initiatives (“AEI”) on schedule China Square Central, Singapore Artist impression Artist impression AEI commenced in November 2012, scheduled to be completed in the second quarter of 2013 Upgrading of main lobby, drop-off p
Slide 20: Asset updates – Market Street and Alexandra Technopark
Portfolio review – Asset updates 20 55 Market Street – healthy occupancy rate Alexandra Technopark – Robust tenancy activities Healthy occupancy: Robust tenancy activities: – 96.7% committed occupancy as at 31 December – 99.5% occupancy as at 31 December – New tenants Mr Teh Tarik and Best World Lif
Slide 21: Asset updates – Central Park and Caroline Chisholm Centre
Portfolio review – Asset updates 21 Central Park – Long WALE of 4.2 years Caroline Chisholm Centre –full occupancy coupled with long WALE of 12.5 years Robust occupancy: Robust tenancy activities: – 96.4% occupancy as at 31 December – 100% occupancy as at 31 December – Long WALE by gross rental inco
Slide 22: Divestment of Japanese properties
Portfolio review – Asset updates 22 Divestment of Japanese properties will strengthen financial position Divestment details – Nominal sale consideration of ¥4 – Completed on 25 October 2012 Rationale – Declining occupancy and weak performance – TMK holding properties currently at negative NAV of S$4
Slide 23: Capital management
Capital management J ERASERS TRUST
Slide 24: Capital Management – Debt statistics
24 Capital Management – Debt statistics 24 Healthy gearing level Statistics Borrowings and assets by currency As at 1,200 31 December 1,076 2012 1,000 Total Assets (S$’000) 2,017,976 800 Gross Borrowings (S$’000) 589,002 679 S$ million Units on Issue and Issuable 1 648,627,553 600 415 NAV per Unit (
Slide 25: No debt maturing until FY2015
25 Capital Management – Debt statistics 25 No debt maturing until FY2015 Proceeds from Keypoint used for partial redemption of CPPUs resulted in gearing of 31.7% Debt maturity as at 31 December 2012 Proforma gearing as at 31 December 20121 450 32.0% 31.7% 400 Post debt prepayment and divestment of J
Slide 26: Utilisation of proceeds from the divestment of KeyPoint
26 Capital Management– Utilisation of proceeds from the divestment of Keypoint 26 S$160 million or 45% of the divestment proceeds from Keypoint utilised for part prepayment of SGD and AUD loans S$163 million or 46% of the divestment proceeds from Keypoint utilised for redemption of CPPUs 1 1 Partial
Slide 27: Effects of CPPU net redemption/conversion on DPU
27 Capital management– effects of CPPU net redemption/conversion on DPU 27 Redemption of CPPUs will be accretive to Unitholders 162.6 mil CPPUs S$8.9 mil savings in redeemed1 CPPU distribution2 S$9.3 mil savings in CPPU distribution translate to an increase in DPU by 1.43 cents 3 p.a. 7.4 mil CPPUs
Slide 28: Moving forward
Moving forward J ERASERS TRUST
Slide 29: Solid fundamentals – Singapore office market
2. Solid fundamentals – positive market outlook 29 Singapore office market recorded negative net absorption after 4 consecutive quarters of positive net absorption and declined vacancy rates in Q4 2012 Market conditions 1 Singapore office new supply 2 – Demand for the Singapore office market relente
Slide 30: Singapore office rents trend – Grade B more resilient
2. Solid fundamentals – positive market outlook 30 Singapore office rents trend – Grade B rents more resilient Singapore Grade A and Grade B office rents 1 $20 18.65 18.80 18.80 Rent (S$ psf / 2012 Q4 12 months ago Change % month) $18 17.15 Grade A Rent 9.58 11.00 (2011 Q4) -12.9% $16 14.90 15.00 Gr
Slide 31: Premium Grade office rents forecast to remain static
2. Solid fundamentals – positive market outlook 31 Premium Grade office rents forecast to remain static for the forseeable short term Perth CBD supply 1 Perth CBD average net face rents 1 Market conditions 1 – Prime vacancy increased by 1.4% points q-o-q to 4.4% in 4Q2012 mainly due to sub-lease ava
Slide 32: Delivering growth
Delivering growth 32 32 Strategic initiatives to deliver growth to Unitholders Portfolio reshaping Grow portfolio in Singapore and Australia On-going strategy Precinct Master Plan at China Square Central Enhance asset, create value and capitalise on Proactive Asset Enhancement Initiatives at China f
Slide 33: 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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