Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — 2QFY17 Earnings Presentation

34 slides from Frasers Property's earnings presentation, Apr 21, 2017

  1. Slide 1: Frasers Commercial Trust 2QFY17 Financial Results

    Frasers Commercial Trust 2QFY17 Financial Results 21 April 2017

  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  Appendix: Markets Overview

  4. Slide 4: Results

    Results FRASERS COMMERCIAL

  5. Slide 5: Results – 2QFY17 Key highlights

     Results – 2QFY17 Key highlights 5  Distribution income rose 3.5% y-o-y to $20.02 million in 2QFY17  Underpinned by better overall results for the Australian portfolio and stronger Australian dollar  Distributable income was stable vs. $19.95 mil in 1QFY17 Distributable income (S$’000) 3.5% incr

  6. Slide 6: Results – 2QFY17 Financial highlights

     Results – 2QFY17 Financial highlights 6 3.5% year-on-year rise in distributable income for 2QFY17 1 Jan 2017 – 31 Mar 2QFY17 Y-o-Y Contributing factors 2017 (S$ ‘000) Change (%)  Higher revenue contribution from 357 Collins Street due to higher occupancy and rental rates achieved, one-off payment

  7. Slide 7: Results – 2QFY17 Financial highlights: Net Property Income

     Results – 2QFY17 Financial highlights 7 2QFY17 results boosted by better results by the Australian portfolio and stronger Australian dollar Net Property Income (S$m) TOTAL: S$30.0 million for 2QFY17 Singapore: S$15.2 million (51%) Australia: S$14.8 million (49%) * Refer to Circular to Unitholders

  8. Slide 8: Results – Financial highlights: DPU

     Results – Financial highlights 8 2QFY17 DPU increased 2.4% YoY and held steady QoQ, with no management fees taken in Units1 DPU (Cents) 9.82 cents 1 In 2QFY16, 40% of the Manager’s management fees for the quarter were taken in Units. In 1QFY17, no management fees were taken in Units.

  9. Slide 9: Results – Distribution payment

     Results – Distribution payment 9 DRP will be applied for the distribution for 2QFY17 Distribution Period 1 January 2017 to 31 March 2017 Distribution of 2.5057 cents per Unit comprising: a) taxable income distribution of 1.6034 cents; Ordinary Unit Distribution Rate b) tax-exempt income distributi

  10. Slide 10: Portfolio Review

    Portfolio Review

  11. Slide 11: Portfolio review – Valuation

     Portfolio review – Valuation 11  Balanced portfolio of Singapore and Australian properties  No one property accounts for more than 28% of portfolio value Singapore Asset values as at 31 March 2017 Perth Canberra Singapore $ 1,210.3 mil 60% Melbourne Australia $ 800.5 mil 40% Total $ 2,010.8 mil

  12. Slide 12: Portfolio review – Occupancy Rates & WALE

     Portfolio review – Occupancy Rates & WALE 12  Healthy average committed occupancy rate of 91.8%1  Healthy WALE of 3.7 years1,2 Geographical occupancy and % NPI contribution As at Key portfolio statistics 31 March 2017 Avg Committed Occupancy1 91.8% Portfolio WALE by gross rental 3.7 years income

  13. Slide 13: Portfolio review – Lease expiry profile

     Portfolio review – Lease expiry profile 13 Well-spread lease expiry profile provides income stability Lease expiry in FY21 and Lease expiries in FY17 and FY18 beyond increased to reduced with the space committed by 35.0% with the space an entity of Rio Tinto Limited for 12 committed by Rio Tinto P

  14. Slide 14: Portfolio review – Lease expiry profile

     Portfolio review – Lease expiry profile 14 Proactive management of leases Includes 5.4% for Hewlett-Packard Enterprise lease at Alexandra Technopark Property Lease Expiry in FY17 as a proportion of Portfolio Gross Rental Income As at 31 Mar 2017 16 (office) Number of leases expiring^ 7 12 1 (offic

  15. Slide 15: Portfolio review – Rental reversions

     Portfolio review – Rental reversions 15 3.6%1 average positive rental reversion for new/renewed leases totaling c.119,100 sf that commenced in 2QFY17 China Square 55 Market Street: Alexandra Central Park: Central: +3.1% Technopark: - 43.2% (for c.3,000 sf) (for c.110 sf) - 0.1%2 +4.7% (for c.14,70

  16. Slide 16: Portfolio review – Leasing activities

     Portfolio review – Leasing activities 16  Healthy levels of leasing activities and market interest  Selected new/renewed leases in 2QFY17: Tenant Industry Property C1X Asia Pacific Pte Ltd Multimedia & telecommunications China Square Central Il Lido Pte Ltd Food & beverage China Square Central C

  17. Slide 17: Portfolio review – Mid-term rent reviews

     Portfolio review – Mid-term rent reviews 17 17 55% of FY17 leases have built-in step-up rents FY17 – 20 - Portfolio fixed % reviews GROSS RENTAL INCOME1 Average Total Property Leases step-up rent Property Portfolio China Square 3 1.5% 18.9% 3.4% Central 55 Market Street 2 0.7% 10.7% 0.4% Alexandra

  18. Slide 18: Portfolio review – Stability of income

     Portfolio review – Stability of income 18 Top 10 tenants:  MNCs, government department and public listed companies  Established names and well diversified across various sectors  Contribute 61% of portfolio gross rental income and have a long WALE of 4.6 years as at 31 March 2017 Top 10 tenants

  19. Slide 19: Asset updates – Developments at China Square Central

     Asset updates – Developments at China Square Central 19  Construction works for the development of the 16-storey Hotel and Commercial Project1 are on track and expected to be completed by mid-2019  New retail and commercial spaces with better frontage and visibility will also be created2  The H

  20. Slide 20: Asset updates – Asset enhancement at Alexandra Technopark

     Asset updates – Asset enhancement at Alexandra Technopark 20  Alexandra Technopark will be revamped at a cost of $45 million to create a new campus-like environment  Creating more community-friendly spaces, greater connectivity and integration and a refreshed and contemporary look  Tenants can

  21. Slide 21: Asset updates – Asset enhancement at Alexandra Technopark

     Asset updates – Asset enhancement at Alexandra Technopark 21  Wide range of amenities and activity spaces will be introduced for an enriching and stimulating environment  New features will encourage greater interaction and cultivate a vibrant community at ATP New amenities include:  Amenity hub

  22. Slide 22: Portfolio review – Singapore assets update

     Portfolio review – Singapore assets update 22 China Square Central – high 55 Market Street – Alexandra Technopark – occupancy at office tower healthy occupancy rate healthy occupancy rate Occupancy 82.7% (office tower: 96.0%)* 92.9% 91.0%^ WALE 1.3 years 1.3 years 1.3 years New leases, C1X Asia Pa

  23. Slide 23: Portfolio review – Australia asset updates

     Portfolio review – Australia asset updates 23 Caroline Chisholm Centre 357 Collins Street – full Central Park – Long WALE of 7.1 – full occupancy with occupancy in a strong years* long WALE of 8.3 years market Occupancy 85.2%* 100.0% 100.0% WALE 1.6 years (7.1 years with new lease*) 8.3 years 4.1

  24. Slide 24: Capital Management

    Capital Management FRASERS COMMERCIAL

  25. Slide 25: Capital Management – Debt statistics

    25  Capital Management – Debt statistics 25  Healthy gearing of 35.9%  Healthy interest coverage ratio of 4.5 times  Borrowings in AUD provide natural hedge for the Australian properties Statistics Borrowings and assets by currency As at 31 March 2017 Total Assets (S$’000) 2,092,248 Gross Borrow

  26. Slide 26: Capital Management and debt statistics

    26  Capital Management and debt statistics 26  Well-spread debt maturity profile  Proactive early partial prepayments of aggregate S$150.0 million borrowings due in September 17 and FY19, funded by proceeds from issuances of unsecured notes in February and March 2017  Debt expiring in any one fi

  27. Slide 27: Appendix: Markets Overview

    Appendix: Markets Overview FRASERS COMMERCIAL

  28. Slide 28: Solid fundamentals - Singapore office rents

     Solid fundamentals - Singapore office rents 28 Singapore office - Grade B rents relatively more stable Singapore Grade A and Grade B office rents1 Grade A CBD Core ↓ 1.6% qoq to S$8.95 psf Grade B CBD Core ↓ 1.4% qoq to S$7.25 psf Grade B Islandwide ↓ 1.4% qoq to S$6.85 psf Source: CBRE Research 1

  29. Slide 29: Solid fundamentals - demand, supply and outlook for Singapore CBD office

     Solid fundamentals - demand, supply and outlook for Singapore CBD office 29 Office supply-demand dynamics1  Q1 2017 total island-wide office net absorption was negative 47,439 sf  Island-wide vacancy held up relatively well with only a marginal increase of 0.1% points qoq to 6.1% in Q1 2017  In

  30. Slide 30: Solid fundamentals - Singapore business park rents

     Solid fundamentals - Singapore business park rents 30 Singapore business parks – City fringe business park rents remained stable in Q1 20171 Singapore Business Park (city fringe) rents1 Source: CBRE Research 1 CBRE, Singapore Market View, Q1 2017

  31. Slide 31: Solid fundamentals - demand, supply and outlook for Singapore business park

     Solid fundamentals - demand, supply and outlook for Singapore business park 31 Business Park supply-demand dynamics1  Business park market continued to be stable in Q1 2017  Business park island-wide vacancy fell 0.3% qoq points to 11.6% in Q1 2017  Net absorption in Q1 2017 was 75,082 sf and d

  32. Slide 32: Perth CBD office supply and rents

     Perth CBD office supply and rents 32  Premium Grade net face rents range between A$600 to A$725 per sqm per annum as at December 2016, with incentives averaging around 47.5%  As at end-December 2016, market vacancy increased marginally to 22.5%, indicating stabilization  Prevailing attractive r

  33. Slide 33: Melbourne CBD office supply and rents

     Melbourne CBD office supply and rents 33  Vacancy fell from 7.8% to 6.4% in the 12 months to January 2017, its lowest level in four years  Melbourne CBD office has the second lowest vacancy rate in Australia behind Sydney  As at January 2017, average prime net face rent for Melbourne CBD office

  34. Slide 34: Thank you

    Thank you Frasers Centrepoint Asset Management (Commercial) Limited 438 Alexandra Road | #21-00| Alexandra Point | Singapore 119958 Tel: +65 6276 4882| Fax: +65 6276 8942| Email: fcot@fraserscentrepoint.com www. fraserscommercialtrust.com

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