Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Centrepoint Trust — Investor Presentation (March 2020)
47 slides from Frasers Property's investor presentation, March 2020
Slide 1: Frasers Centrepoint Trust Investors' Presentation March 2020
Frasers Centrepoint Trust Investors’ Presentation March 2020
Slide 2: Forward-looking statements disclaimer
◆ 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 results, performanc
Slide 3: FCT Overview, COVID-19 Update, Financial Results, Appendix
FCT Overview Update on COVID-19 situation Financial Results Presentation for the First Quarter 2020 ended 31 December 2019 Appendix 3
Slide 4: FCT overview: S$3.2 billion market capitalisation
◆ SGX-listed REIT that owns and invests primarily in suburban retail properties in Singapore, pure play on Singapore domestic necessity spending, F&B and services ◆ FCT’s property portfolio comprises 7 suburban retail properties in Singapore totalling 1.4 million sq ft of NLA. FCT also owns a 24.82%
Slide 5: DPU (S cents)
DPU (S cents) 11.9 12.015 12.07 11.608 11.764 11.187 10.93 10.01 8.2 8.32 7.29 7.51 6.55 6.03 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 (IPO)* *Annualised DPU for the period 5 Jul 2006 (IPO) to 30 September 2006. 5
Slide 6: FCT Retail Portfolio (~1.4 million sq ft NLA)
FCT Retail Portfolio (~1.4 million sq ft NLA) ◆ Among the largest suburban retail property owners in Singapore Anchorpoint YewTee Point Causeway Point Northpoint City Waterway Point1 Changi City Point Bedok Point ◆ All properties are located in the North Wing (FCT), South Wing (FPL) suburban regions
Slide 7: FCT Portfolio Footfall (million)
FCT Portfolio Footfall (million) 146.5 136.8 +7.1% FY2018 FY2019 Fun for the family Total footfall at FCT malls Necessity & convenience shopping Everyday dining Essential services Social and family dining 7
Slide 8: Growing household income among Singapore residents
Growing household income among Singapore residents Household median Income 9,293 9,425 (S$) 8,846 9,023 8,666 8,292 7,872 7,566 7,037 6,342 6,006 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Median Monthly Household Income from Work (Including Employer CPF Contributions) Among Resident Emp
Slide 9: Malls in regions with low retail space per capita
Yishun Yew Tee Woodlands Northpoint City YewTee Point Causeway Point North Wing (FCT) and South Wing (FPL) ◆ FCT’s key malls are located Punggol in north and north-east Waterway Point regions that have low retail Bedok space per capita of below 3, Bedok Point which is below national Changi Business
Slide 10: Largest malls in HDB towns with growth potential
◆ The three largest malls in FCT’s portfolio are located in HDB towns with with good growth potential ◆ Punggol currently has 10,632 (last year: 8,806) new flats under construction and is the fastest growing HDB town HDB Resident Current Growth Population Current units Units + HDB potential to Healt
Slide 11: Regional centre and Punggol Digital District developments
◆ Regional Centre ◆ The Next Generation poised in Singapore’s Smart & Integrated North region District ◆ New business, ◆ SIT's Punggol campus, industry, R&D and Singapore's first learning & innovation university in the north- institution to be east, will be up by 2023; introduced able to accommodate
Slide 12: Retail space stock and supply pipeline
◆ According to URA statistics, total stock of private retail space rose by 0.4% q-o-q to 50.19 mil sq. ft. in Q4 2019. OCR: OCR: 160k sq ft 42k sq ft ◆ The full year supply for 2019 amounted to 1.06 mil sq. ft. ◆ Supply pipeline is expected to drop significantly in 2020 OCR: and in the following yea
Slide 13: Retail Prime Rent
Retail Prime Rent (S$ per square foot per month) “The premium between prime Orchard Road Suburban suburban and the Orchard $35.00 Road submarkets, as tracked by CBRE Research remained $31.70 at 8.7% as at Q4 2019 as rents $30.00 for both submarkets remain $29.15 unchanged.” - CBRE $25.00 $20.00 Q1 Q
Slide 14: Frasers Experience app (FRx)
• Frasers Experience app (FRx) is the digital platform to redefine how we interact with our shoppers; to enhance shopper experiences at our malls; to offer more benefits with less time needed and more conveniences with less hassle • Earn rewards points via QR code at more than 1300 retailers at the
Slide 15: Updates on the COVID-19 situation
Updates on the COVID-19 situation Northpoint City, Singapore
Slide 16: FCT malls situation update and Tenant Support Package
FCT malls situation update Tenant Support Package ◆ Shopper traffic down 10%-20% in first 2 weeks of ◆ Announced on 26 February 2020, for all 14 malls1 under February, especially during the weekend the Frasers Property Retail Group: immediately after DOSCON was raised to orange • Passing on the full
Slide 17: Economic and retail outlook amid COVID-19
The Ministry of Trade and Industry (MTI), CBRE, Singapore Real Estate Research Singapore: Report 4th Quarter 2019: ◆ The MTI has downgraded the GDP growth ◆ The entertainment, services, F&B and fashion forecast for 2020 to “-0.5 to 1.5 per cent”, with segments are likely to be the most affected grow
Slide 18: Financial Results Presentation for First Quarter 2020
Financial Results Presentation for the First Quarter 2020 ended 31 December 2019 22 January 2020 Waterway Point
Slide 19: 1Q20 results highlights
1Q20 results highlights 1Q20 Financial performance • DPU of 3.06 cents, up 1.3% y-o-y • Gross revenue of S$49.8 million, up 1.0% y-o-y • NPI of S$36.3 million, up 2.6% y-o-y • NAV and NTA per Unit of S$2.22 as at 31 December 2019 • Gearing level at 33.2%1 as at 31 December 2019 Operational performan
Slide 20: 1Q20 financial results
• Gross revenue growth supported by higher overall portfolio occupancy and rental growth from renewals and replacement leases which commenced during the quarter • NPI margin for 1Q20 improved 1.2 percentage-point to 73.0% from the same period last year • Dividends from associates and joint ventures
Slide 21: Gross revenue by mall
◆ Gross revenue growth was supported by higher overall portfolio occupancy and rental growth from renewals and replacement leases which commenced during the quarter Gross Revenue S$ million 1Q20 1Q19 Due to disruptions Lower average Due to higher Share of results of ▲1.0% from the Underground occupa
Slide 22: Property expenses by mall
◆ 1Q20 property expenses were S$13.4 million, a decrease of S$0.5 million or 3.3% y-o-y ◆ The decrease was mainly due to lower marketing expenses and is partially offset by absence of write-back of property tax not required and more ad-hoc repair and replacement works carried out in 1Q20 Property Ex
Slide 23: NPI by mall
◆ NPI margin for 1Q20 improved 1.2%-point to 73.0% from the same period last year on lower property expense NPI S$ million Share of results of 1Q20 1Q19 Joint Venture2 Based on FCT’s 40% share of ▲2.6% results in joint venture SST which 36.32 holds Waterway Point 35.39 ▼2.3% 16.45 16.84 ▲6.0% 10.60
Slide 24: Balance Sheet
Z <a FRASERS TRUST Balance Sheet
Slide 25: Gearing and cost of borrowing
• Gearing level of 33.2% remains lower than the SREIT average of 35.3%1 • All-in cost of borrowing at 2.57%, down marginally from 2.63% in the previous quarter • Investment grade credit with stable outlook by S&P and Moody’s 31 December 19 30 September 19 Gearing ratio2 33.2% 32.9% Interest cover fo
Slide 26: Balance sheet as at 31 Dec 2019
31 Dec 2019 30 Sep 2019 As at S$’000 S$’000 Non-current assets 3,603,131 3,594,638 Current assets 16,576 16,245 Total assets 3,619,707 3,610,883 Current liabilities (243,270) (365,000) Non-current liabilities (896,914) (774,824) Total liabilities (1,140,184) (1,139,824) Net assets 2,479,523 2,471,05
Slide 27: Debt maturity profile
• Weighted Average Debt Maturity as at 31 December 2019: 2.5 years (30 September 2019: 2.3 years) Comprises: Type of borrowings Aggregate amount • S$70m 3.0% MTN due Jan 2020 ■Unsecured bank borrowings S$338.0 million (32.1%) • S$90m 2.365% MTN due April 2020 ■MTN S$310.0 million (29.4%) FCAM plans
Slide 28: Operational performance
Z <a FRASERS TRUST Operational performance
Slide 29: Portfolio occupancy improved
◆ Portfolio occupancy improved 1.1%-point y-o-y and 0.8%-point q-o-q ◆ Occupancy at Causeway Way improved q-o-q with the completion of the UPL AEI works in December 2019 Mall Occupancy 31 Dec 18 31 Mar 19 30 Jun 19 30 Sep 19 31 Dec 19 Causeway Point 98.7% 97.4% 97.5% 97.0% 97.8% Northpoint City Nort
Slide 30: WALE and lease expiry profile
◆ WALE as at 31 December 2019 stands at 1.77 years by NLA and 1.63 years by GRI Lease expiry profile as % of Total GRI Expiries @ 31-Dec-19 Expiries @ 30-Sep-19 35.7% 26.8% 26.9% 30.6% 28.0% 26.6% 13.8% 8.6% 1.9% 0.6% 0.1% 0.0% 0.2% 0.2% Lease expiry1 as at 31 Dec 2019 FY2020 FY2021 FY2022 FY2023 FY
Slide 31: Leases renewed in 1Q20
◆ The 60 leases renewed in 1Q20 account for approximately 31% of expiring lease area in FY2020. (Lease area expiring in FY2020 as at 30 September 2019 was 457,060 sq ft) Change compared Leased area As % of 1Q20 (1 Oct – 31 Dec 2019) No. of renewals with preceding renewed (sq ft) property’s NLA renta
Slide 32: Leases to be renewed in FY2020
◆ The four larger malls account for approximately 81% of the leases to be renewed in the remaining 9 months of FY2020 Lease area as % of leased Lease Expiries in FY2020 Number of as % of total GRI expiring area of As at 31 December 2019 leases expiring of property (sq ft) property Causeway Point 62
Slide 33: Shopper traffic and tenants' sales
◆ Portfolio shopper traffic for 1Q20 grew 8.4% y-o-y, attributed mainly to higher traffic registered at Northpoint City North Wing ◆ Overall portfolio tenants’ sales per square foot was 0.5% lower y-o-y Portfolio tenants’ sales Portfolio shopper traffic per sq ft 0.5% ▲8.4% Oct 2018 - Dec 2018 Oct 2
Slide 34: Going forward
Going forward
Slide 35: Growth strategy: acquisition and asset growth
Future Northpoint 2 Bedok Changi City Yishun 10 Investment in Waterway Point Opportunities YewTee Point Point Point Retail Podium PGIM ARF (40%-stake) 2010 2011 2014 2016 2019 2019 • Northpoint City South Acquisition Wing 24.82% in Growth PGIM ARF • Acquisition opportunities of 3rd party assets Anch
Slide 36: Poised for growth, quality assets, pure play
® Investments in PGIM ARF and Waterway Point strengthened FCT’s position as a leading suburban retail REIT in Singapore Poised for growth ® Opportunity for growth through acquisitions ® AEI opportunities to optimise property performance ® Continue to focus on necessity spending, convenience, accessi
Slide 37: Appendix
Appendix
Slide 38: Glossary of abbreviations
◆ 1Q19: First Quarter 2019 ended 31 December 2018 ◆ PGIM ARF: PGIM Real Estate AsiaRetail Fund Limited, an ◆ 1Q20: First Quarter 2020 ended 31 December 2019 associate of FCT ◆ AEI: Asset Enhancement Initiative ◆ q-o-q: quarter-on-quarter, refers to the comparison with the previous quarter ◆ DPU: Dis
Slide 39: Y-o-y and q-o-q comparison
y-o-y comparison q-o-q comparison Change Change $’000 (unless otherwise indicated) 1Q20 1Q19 Inc / (Dec) 4Q19 Inc / (Dec) Gross Revenue 49,752 49,281 1.0% 48,269* 3.1% Property Expenses (13,433) (13,894) (3.3%) (15,420) (12.9%) NPI 36,319 35,387 2.6% 32,849* 10.6% Income available for distribution b
Slide 40: Borrowings and ratings details
Average cost of Borrowings (all-in) 2.57% Annualised based on rates fixed @ 31 December 2019 Moody's rating Baa1 S&P rating BBB+ Interest cover (EBIT/Σ interest) (times) 5.93 For the quarter 1 October - 31 December 2019 Gearing 33.2%* as at 31 December 2019 as % of total Description of borrowing Amo
Slide 41: Lease expiry profile by mall
FCT Portfolio FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2028 Total No. of leases 250 285 257 89 6 1 1 889 NLA (sq ft) expiring 315,650 361,343 489,982 195,680 29,342 1,364 21,248 1,414,609 Expiries as % of total leased area 22.3% 25.5% 34.6% 13.8% 2.1% 0.1% 1.5% 100.0% Expiries as % of tota
Slide 42: Trade classifications
Trade Classifications As % of total NLA As % of total GRI (In descending order of % of GRI) F&B 31.8% 38.2% Fashion 13.5% 14.1% Beauty & Health 7.7% 11.2% Services 4.8% 8.8% Household 9.9% 7.4% Supermarket & Hypermarket 7.2% 4.9% Leisure/Entertainment 6.5% 2.9% Sports Apparel & Equipment 3.6% 2.9% J
Slide 43: Top 10 tenants by GRI
Rank by Tenants As % of total NLA As % of total GRI GRI 1 NTUC Fairprice Co-operative1 4.6% 3.1% 2 Cold Storage Singapore (1983) Pte Ltd2 3.4% 3.0% 3 Copitiam Pte Ltd3 2.8% 2.6% 4 Metro (Private) Limited4 4.2% 2.5% 5 Courts (Singapore) Limited 2.4% 2.1% 6 Koufu Pte Ltd 2.2% 1.9% 7 Cotton On Singapor
Slide 44: Portfolio Average Rental Reversions
Portfolio Average Rental Reversions1 15.0% 14.0% 12.8% 12.1% 9.9% 8.6% 7.7% 7.2% 6.5% 6.3% 5.1% 4.8% 5.0% 3.2% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 1Q20 1. Based on the variance between the average rental rates between the new lease and the prece
Slide 45: NLA breakdown by property
Anchorpoint 70,988 sq ft YewTee Point 4.9% 73,669 sq ft Causeway Point 5.1% 416,301 sq ft 28.7% Bedok Point 82,713 sq ft 5.7% Changi City Point 205,210 sq ft 14.2% Northpoint City North Wing + Yishun 10 Retail Podium Waterway Point * 229,684 sq ft 371,200 sq ft 15.8% 25.6% *FCT owns 40% interest in
Slide 46: Property valuations and land tenure
NLA Valuation @ NLA Valuation @ Land Tenure Years Land Tenure Years FCT Property 30/9/2019 Expiry PGIM ARF Retail Property 30/9/2019 Expiry Sqm Sq ft Type remaining Sqm Sq ft Type remaining (S$) (S$) Causeway Point 39,027 420,082 1,298,000 Leasehold 2094 74 Tiong Bahru Plaza 19,947 214,710 626,000 L
Slide 47: Experience matters.
Experience matters.
Frasers Centrepoint Trust — Investor Presentation (March 2020) on 6ix