Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — Q1 FY2011 Earnings Presentation

29 slides from Frasers Property's earnings presentation, Jan 26, 2011

  1. Slide 1: Frasers Commercial Trust 1QFY11 Financial Results

    Frasers Commercial Trust 1QFY11 Financial Results 26 January 2011

  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 Zz TRUST

  5. Slide 5: Results – 1Q FY11 key highlights

     Results – 1Q FY11 5 Key highlights:  First quarter distributable income to Unitholders of S$7.9m, ↑ 7% Y-o-Y  Distribution to CPPU holders of S$4.7m, represents 5.5% distribution yield on the offer price of S$1.0  Portfolio achieved average occupancy rate of 91.8%, up 1% from 90.8% in 4Q10  On

  6. Slide 6: Results – Financial highlights

     Results – Financial highlights 6 1Q DPU up 4% Y-o-Y 1 Oct 2010 – 31 Dec 2010 1Q Y-o-Y Contributing factors (S$ ‘000) FY11 Change (%) 2%  Lower contribution from Cosmo Plaza due to expiry Gross Revenue 28,981 of a significant tenancy in early August 2010 2%  Decrease in Gross Revenue carried thro

  7. Slide 7: Portfolio review

    Portfolio review mm GH (ounenast TRUST

  8. Slide 8: Portfolio review – Valuations

     Portfolio review – Valuations 8 1.0% increase in portfolio value Variance from 30 September 2010 Local currency Translation as at Date of Value 31 December 2010 Total variance Total variance Asset valuation (millions) (S$ million) 1 (S$ million) (%) China Square Central 30 September 2010 S$545.0 5

  9. Slide 9: Valuations: Singapore and Australia 93% of portfolio excluding Cosmo

     Portfolio review – Valuations 9 Singapore and Australia properties account for 93% excluding Cosmo Plaza  Singapore & Australia: Asset values 1 TOTAL: S$2,007.6 million – Accounts for 93% of portfolio value excluding Singapore: S$1,298.9 million (65%) Cosmo Plaza Australia S$525.5 million (26%) J

  10. Slide 10: Occupancy Rates & WALE

     Portfolio review – Occupancy Rates & WALE 10 Portfolio occupancy rate >96% excluding Cosmo Plaza Geographical occupancy and % of NPI contribution As at Key portfolio statistics 31 December 2010 Ave Occupancy Rates % of NPI Contribution WALE by gross rental income 4.0 years 100% 97.0% 95.3% 93.0% A

  11. Slide 11: Lease expiry profile

     Portfolio review – Lease expiry profile 11 11 Healthy lease expiry profile Portfolio lease expiry by gross rental income 50% 28.1% 30% 24.5% 25.0% 12.5% 9.9% 10% FY11 FY12 FY13 FY14 FY15 and beyond -10% Number of leases expiring 75 92 72 15 20 NLA (sq ft) expiring 179,306 567,110 205,990 1,142,987

  12. Slide 12: Lease expiry profile excluding Cosmo Plaza

     Portfolio review – Lease expiry profile 12 Only 8.2% of gross rental income is due for renewal for FY11 excluding Cosmo Plaza Property lease expiry as a proportion of total portfolio gross rental income 6% 5.0% 5% 4% 3% 1.7% 1.8% 2% 1.0% 1% 0.3% 0.1% 0% 55 Market Street KeyPoint Central Park Cosmo

  13. Slide 13: Mid-term rent reviews

     Portfolio review – Mid-term rent reviews 13 13 Almost 25% of gross rental income has built-in fixed rent step-ups of approximately 4.0% for FY11 FY11 - Fixed % lease rent reviews FY11 - 14 - Portfolio fixed % reviews GROSS RENTAL INCOME Portfolio gross rental income Weighted average fixed step % A

  14. Slide 14: Stability of income

     Portfolio review – Stability of income 14 Master lessees/ blue chip tenants with long leases contribute >61% of total gross rental income Master Leases % (Gross Rental Other Tenants, Master Leases, Tenant Lease Expiry Income) 38.9% 36.1% Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 2

  15. Slide 15: Asset updates – Cosmo Plaza successful divestment

     Portfolio review – Asset updates 15 Cosmo Plaza – Successful divestment  Divestment details: Positive impact for FCOT – Completed on 18 January 2011 – Total consideration of JPY4 (less than S$1)  NPI for shares in TMK which holds Cosmo Plaza and includes bond of JPY3.8 billion – Gain on disposal

  16. Slide 16: Cosmo Plaza divestment details

     Portfolio review – Asset updates 16 Cosmo Plaza – Successful divestment Divestment details JPY 4.5 JPY 3.8 JPY 3.5 JPY 3.1 JPY 2.5 Billion JPY 1.5 JPY 0.5 JPY 0.5 -JPY 0.5 -JPY 0.5 Cosmo Bond Cosmo Gain on disposal Valuation* Osaka TMK -JPY 1.5 Cosmo Plaza, Osaka, Japan Sale implies a price above

  17. Slide 17: KeyPoint – Strong growth momentum

     Portfolio review – Asset updates 17 KeyPoint – Strong growth momentum  Tenancy activity: KeyPoint occupancy rate – 20 new leases and renewals have Property management by KeyPoint Occupancy commenced in 1QFY11 with average 95% In-house team from May 09 90% rental range for office tenants from 85.0

  18. Slide 18: China Square Central – Rise in committed occupancy

     Portfolio review – Asset updates 18 China Square Central – Rise in committed occupancy  Healthy committed occupancy rate: – Committed occupancy has increased to 93.7% in December from 93.1% in September Committed As at As at occupancy rate 30 September 2010 31 December 2010 Office 96.4% 96.4% Ret

  19. Slide 19: China Square Central – Average passing rent

     Portfolio review – Asset updates 19 China Square Central – Average passing rent below $6.0 psf pm Lease expiry by gross rental income 60% 57.1% 40% 24.0% 20% 16.5% 2.4% 0.0% 0% FY11 FY12 FY13 FY14 FY15 and beyond Number of leases expiring 26 55 28 5 0 NLA (sq ft) expiring 90,034 189,650 53,622 9,4

  20. Slide 20: 55 Market Street – Above 95% committed occupancy

     Portfolio review – Asset updates 20 55 Market Street – Above 95% committed occupancy  Tenancy activity: – Occupancy has increased 6.5% to 89.6% in December from 83.1% in September – In the quarter, two committed office leases were signed for 3 years at $6.0 psf pm and $6.5 psf pm respectively – T

  21. Slide 21: Central Park – 100% committed occupancy

     Portfolio review – Asset updates 21 Central Park – 100% committed occupancy  Tenancy activity: – Existing tenant BHP Billiton leased space at A$750 psm pa – Secured two new office leases and they account for 7.5% of Central Park NLA – 100% committed occupancy with long WALE by gross rental income

  22. Slide 22: Capital management

    Capital management 2. J IRASERS TRUST

  23. Slide 23: Capital Management – Debt statistics

    23  Capital Management – Debt statistics 23 Gearing reduce by 1.8% with sale of Cosmo Plaza Statistics before sale of Cosmo Plaza Statistics after sale of Cosmo Plaza As at As at 31 December 31 December 2010 2010 Total Assets (S$’000) 2,095,981 Total Assets (S$’000) 2,040,932 Gross Borrowings (S$’0

  24. Slide 24: Capital Management – Interest rate statistics

     Capital Management – Interest rate statistics 24 Hedged more than 80% of Gross Borrowings Hedging debt Debt composition – floating vs. hedged As at As a % of: 31 December 2010 Floating, 19.6% SGD Borrowings 75.2% AUD Borrowings 75.8% JPY Borrowings 100.0% Total Gross Borrowings 80.4% Hedged, 80.4%

  25. Slide 25: Moving forward

    Moving forward mm GH (ounenast TRUST

  26. Slide 26: Market outlook - Singapore

     Market outlook - Singapore 26 Demand for office space continued to improve  Market conditions 1 FCOT’s Singapore properties average occupancy 97.5% – Office rents strengthen off the back of the 97.0% 97.0% economic rebound in 2H 2010 96.5% 96.1% 96.0% 95.5% 95.5% – Grade A rents averaged $9.90 ps

  27. Slide 27: Market outlook - Australia

     Market outlook - Australia 27 Prime grade vacancy tightened in Perth’s CBD office market  Market conditions 1 Perth CBD average net face rents 2 – Prime grade vacancy tightened to 5.5% in Q3 $900 forecast $790 Net Face Rent (AUD per sqm p.a.) $800 $720 2010 after peaking at 8.0% a year earlier $7

  28. Slide 28: Growth strategy

    28  Growth strategy 28 Growth Drivers Distributable Income Healthy Committed Occupancy Boost Organic Growth Potential Savings Acquisitions NPI Central Park – 100.0% Step – up Rents Capitalise on prevailing Additional headroom 55 Market Street – 95.8% -Singapore low interest rate created as a result

  29. Slide 29: 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

Frasers Commercial Trust — Q1 FY2011 Earnings Presentation on 6ix