Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q1 FY2013 Earnings Presentation
38 slides from Frasers Centrepoint Trust's earnings presentation, Jan 22, 2013
Slide 1: Frasers Centrepoint Trust 1st Quarter FY13 Financial Results Presentation
Frasers Centrepoint Trust 1st Quarter FY13 Financial Results Presentation (Financial quarter ended 31 December 2012) 22 January 2013
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 11 Operational performance slide 16 Causeway Point AEI update slide 22 Growth strategy slide 26 Summary slide 29 Appendix slide 32
Slide 4: Results
Results
Slide 5: Another healthy quarter of performance in 1Q13
Results 5 Another healthy quarter of performance in 1Q13 • Distributable Income up of $21.8 million, up 10.8% • 1Q13 DPU of 2.40 cents, up 9.1% and the highest first quarter DPU ever • Revenue up 5.8%, driven mainly by contributions from Causeway Point and Northpoint • Portfolio occupancy improved
Slide 6: 1Q13 DPU up 9.1% to 2.40 cents
Results 6 1Q13 DPU up 9.1% to 2.40 cents 3 months ended 31 Dec $’000 1Q13 1Q12 Y-o-Y change Gross Revenue 37,976 35,884 ▲ 5.8% Property Expenses (10,854) (11,018) ▼ 1.5% Net Property Income 27,122 24,866 ▲ 9.1% Income Available for Distribution 21,835 19,707 ▲ 10.8% Distribution to Unitholders 19,
Slide 7: FCT continues to deliver steady quarterly DPU
Results 7 FCT continues to deliver steady quarterly DPU Quarterly DPU payout trend DPU (¢) • Highest ever 1Q DPU • Excludes retained cash equivalent to 0.25 cts per unit* 2.71 2.60 2.50 2.40 2.20 1Q12 2Q12 3Q12 4Q12 1Q13 2012 DPU: 10.01¢ * Total cash retained in 1Q13 is $2.06 million and this is e
Slide 8: 1Q13 Gross Revenue up 5.8% on healthy growth from Causeway Point and Northpoint
Results 8 1Q13 Gross Revenue up 5.8% on healthy growth from Causeway Point and Northpoint • Higher rental Gross Revenue income from improved S$ m occupancy ▲ 5.8% • Higher • Higher rental 1Q13 38.0 turnover rent income 35.9 • Higher rental • Higher • Higher car • Higher car income income from park
Slide 9: 1Q13 Property Expenses lower by 1.5%
Results 9 1Q13 Property Expenses lower by 1.5% Property Expenses S$ m Lower maintenance expenses, partially offset by higher property tax and property management fees ▼ 1.5% 10.9 11.0 1Q13 1Q12 ▼ 7.6% ▲ 1.5% 4.4 4.7 3.4 3.3 ▲ 12.0% ▼ 9.4% ▲ 12.0% 0.9 1.0 1.0 0.9 1.2 1.1 FCT Portfolio Causeway Poin
Slide 10: 1Q13 Net Property Income up 9.1%
Results 10 1Q13 Net Property Income up 9.1% Net Property Income S$ m Higher gross revenue and lower property expense ▲ 9.1% 27.1 1Q13 24.9 1Q12 ▲ 12.3% 13.0 ▲ 6.7% 11.5 8.7 8.2 ▲ 6.1% ▲ 3.0% ▲ 8.8% 2.4 2.3 1.8 1.8 1.2 1.1 FCT Portfolio Causeway Point Northpoint YewTee Point Anchorpoint Bedok Point
Slide 11: Balance sheet
Balance sheet
Slide 12: Healthy balance sheet
Balance sheet 12 Healthy balance sheet 31 Dec 2012 30 Sep 2012 As at S$’000 S$’000 Non-current assets 1,888,634 1,887,948 Current assets 26,888 29,171 Total assets 1,915,522 1,917,119 Current liabilities (114,438) (112,419) Non-current liabilities (539,613) (541,670) Total liabilities (654,051) (6
Slide 13: Financial position remains robust with gearing level at 30.1%
Balance sheet 13 Financial position remains robust with gearing level at 30.1% As at 31 December 12 30 September 12 Gearing ratio1 30.1% 30.1% Interest cover2 5.79 times 5.56 times Total borrowings $577m $577m Average cost of 2.70% 2.71% borrowings S&P: BBB+/Stable (wef 24.02.09) Corporate credit
Slide 14: FCT's Debt Maturity Profile as at 31 December 2012
Balance sheet 14 FCT’s Debt Maturity Profile as at 31 December 2012 Weight average debt maturity: 2.83 years (4Q12: 3.08 years) Secured Term Loan $264m Short-term unsecured bank borrowings Medium Term Note (MTN) $100m $95m $60m $58m $70m $3m $30m FY2013 FY2014 FY2015 FY2016 FY2017 $55m 2.83% MTN $
Slide 15: Pro Forma Debt Maturity as at 31 December 2012
Balance sheet 15 Pro Forma Debt Maturity as at 31 December 2012 (assuming the issuance of $70m MTN due 2020, the retirement of $55m MTN which matures in Feb 13 and the repayment of the $3m revolving credit) Weight average debt maturity: 3.60 years Secured Term Loan $264m Medium Term Note (MTN) $95
Slide 16: Operational performance
Operational performance
Slide 17: Portfolio occupancy improved to 97.2%
Operational performance 17 Portfolio occupancy improved to 97.2% Several new tenants Occupancy by Mall as at 31 Dec 11 31 Mar 12 30 Jun 12 30 Sep 12 31 Dec 12 which were still in process of fitting out (reported as vacancy) Causeway Point 95.5% 91.3% 87.7% 87.7% 96.4%1 Causeway Point under asset e
Slide 18: 5.2% rental reversion achieved for portfolio in 1Q13
Operational performance 18 5.2% rental reversion achieved for portfolio in 1Q13 NLA (sq ft) Change compared to 1Q13 No. of renewals As % Mall’s NLA preceding rental rates1 Renewed Causeway Point 3 22,106 5.3% ▲ 9.2% Northpoint 26 31,841 13.5% ▲ 7.6% Bedok Point 14 4,866 6.0% ▼ 14.5% YewTee Point 2
Slide 19: Historical rental reversions
Operational performance 19 Historical rental reversions % Increase in average rental rates over preceding rates for lease renewals 15.0% 14.0% 12.8% 12.1% 8.6% 7.2% 5.2% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 1QFY13
Slide 20: Well-staggered lease renewal schedule over the next three years
Operational performance 20 Well-staggered lease renewal schedule over the next three years Expiry profile as % of total gross rental income Weighted Average Lease Expiry (WALE) 36.7% By NLA 1.98 years 32.2% (4Q12: 1.91 years) By Gross Rent 1.84 years (4Q12: 1.79 years) 13.4% 13.0% 3.0% 1.7% Lease
Slide 21: Lease renewals for the remaining 9 months in FY2013
Operational performance 21 Lease renewals for the remaining 9 months in FY2013: Lease Renewals in FY2013 Lease Renewals in FY2013 by Gross Rental by Net Lettable Area as at 31 Dec 2012 as at 31 Dec 2012 Anchorpoint Anchorpoint 12.1% 22.5% Bedok Point 1.1% YewTee Bedok Point Yew Tee 1.4% Point Poin
Slide 22: Causeway Point AEI Update
Causeway Point AEI Update
Slide 23: Causeway AEI completed on schedule
Causeway Point AEI update 23 Causeway AEI completed on schedule • Occupancy stood at 96.4% at end-December 2012, an increase of 8.7% points from preceding quarter • The mall was >99% leased as at end-December 2012 • New food court and Asian Food Street at fifth level commenced operations in Novemb
Slide 24: AEI delivering the results
Causeway Point AEI update 24 AEI delivering the results Before Projection Financial Projections Comments AEI after AEI Average rent per sq ft / mth $10.20 $12.20 Current average gross rental > $ 12.20 psf/pm Annualised NPI based on Causeway Point’s Annual NPI $42.2m $51.5m achieved 1Q13 NPI of $13
Slide 25: New facade
Causeway Point AEI update 25 New facade
Slide 26: The new Food Street at Level 5 offers wide variety of Asian cuisines
Causeway Point AEI update 26 The new Food Street at Level 5 offers wide variety of Asian cuisines
Slide 27: Growth strategy
Growth strategy
Slide 28: Clear growth strategy
Growth strategy 28 Clear growth strategy Strategy Key drivers 1 Acquisition growth • Sponsor’s pipeline assets • Opportunistic 3rd party asset acquisition 2 Enhancement growth • Asset enhancement to drive enhanced and sustainable income growth 3 Organic growth • Positive rental reversions and main
Slide 29: Sponsor's pipeline assets
Growth strategy 29 Sponsor’s pipeline assets Changi City Point Singapore The Centrepoint • Retail mall’s NLA: 207,479 sq ft • The mall is part of “One @ Changi City” project jointly owned and developed by Ascendas Land (Singapore) and Frasers Centrepoint Ltd (FCT’s sponsor) • 2 other components of
Slide 30: Summary
Summary
Slide 31: Solid start for FY2013
Summary 31 Solid start for FY2013 • Suburban retail sector expected to remain relatively stable: • Increase in suburban homes • High proportion of non-discretionary spending • Broad-based wage increase to lead to higher consumer spending • FCT to continue to ride the growth momentum • Stay vigilan
Slide 32: 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 33: Distribution details
Appendix 33 Distribution details Distribution period 1 October 2012 to 31 December 2012 Distribution per unit 2.40 cents 28 January 2013 Ex-date (Monday) at 9.00 am 30 January 2013 Books closure date (Wednesday) at 5.00 pm 28 February 2013 Payment date (Thursday)
Slide 34: 1Q13 year-on-year and quarter-on-quarter comparison
Appendix 34 1Q13 year-on-year and quarter-on-quarter comparison Year-on-Year Comparison Quarter-on-Quarter Comparison 1Q13 $’000 1Q12 % Change 4Q12 % Change Gross Revenue 37,976 35,884 +5.8% 39,045 -2.7% Property Expenses -10,854 -11,018 -1.5% -10,331 +5.1% Net Property Income 27,122 24,866 +9.1%
Slide 35: Additional Financial and Operations Information (Portfolio)
Appendix 35 Additional Financial and Operations Information (Portfolio) FRASERS CENTREPOINT TRUST PORTFOLIO INFORMATION AS AT 31 December 2012 Portfolio NLA (sq ft) Causeway Point (CWP) 416,259 Northpoint (NP1 and NP2) 236,019 Anchorpoint (ACP) 71,610 YewTee Point (YTP) 73,669 Bedok Point (BPT) 81
Slide 36: Additional Financial and Operations Information (Leasing)
Appendix 36 Additional Financial and Operations Information (Leasing) FRASERS CENTREPOINT TRUST Lease expiry profile (FYE Sep 30) FY13 FY14 FY15 FY16 FY17 FY18 LEASE INFORMATION AS AT 31 Dec 2012 FCT Portfolio No of leases 137 211 195 50 10 2 Portfolio trade mix Expiries as % Total NLA 10.9% 30.7%
Slide 37: Additional Financial and Operations Information (Financials)
Appendix 37 Additional Financial and Operations Information (Financials) FRASERS CENTREPOINT TRUST FRASERS CENTREPOINT TRUST FINANCIAL & OPERATIONAL METRICS FINANCIAL & OPERATIONAL METRICS Note: Yel l ow cel l s mea ns property i s undergoi ng AEI Quarterly historical data 1Q12 2Q12 3Q12 4Q12 1Q13
Slide 38: Additional Financial and Operations Information (Financials)
Appendix 38 Additional Financial and Operations Information (Financials) FRASERS CENTREPOINT TRUST PROFIT AND LOSS STATEMENT $'000 Quarter Quarter Quarter Quarter Quarter 1Q12 2Q12 3Q12 4Q12 1Q13 REVENUE Gross rent 32,008 32,278 31,757 35,237 34,033 Other revenue 3,876 4,447 3,792 3,808 3,943 35,8
Frasers Centrepoint Trust — Q1 FY2013 Earnings Presentation on 6ix