Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q2 FY2017 Earnings Presentation
42 slides from Frasers Centrepoint Trust's earnings presentation, Apr 25, 2017
Slide 1: Financial Results Presentation for 2nd Quarter FY2017
Frasers Centrepoint Trust Financial Results Presentation for 2nd Quarter FY2017 ended 31 March 2017 25 April 2017 Causeway Point Northpoint + Changi City Point Bedok Point YewTee Point Anchorpoint Yishun 10 Retail Podium
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 1. Results Highlights slide 4 2. Balance sheet slide 14 3. Operational performance slide 18 4. Northpoint AEI Update slide 25 5. Outlook slide 30 6. Appendix slide 33 3
Slide 4: Results Highlights
Results Highlights
Slide 5: Results Highlights
Results - Highlights Results Highlights Financial performance • 2Q17 DPU of 3.040 cents, unchanged year-on-year (2Q16 DPU: 3.039 cents) • 2Q17 Gross Revenue of $45.7 million, 2.9% lower year-on-year • 2Q17 Net Property Income of $32.6 million, 3.3 % lower year-on-year • NAV per Unit of $1.93 as at 3
Slide 6: 2Q17 DPU of 3.040 cents, unchanged year-on-year
Results - Highlights 2Q17 DPU of 3.040 cents, unchanged year-on-year 2Q17 (a) 2Q16 Y-o-Y $’000 Jan 17 to Mar 17 Jan 16 to Mar 16 change Gross Revenue 45,717 47,089 ▼ 2.9% Revenue affected mainly by the ongoing AEI at Northpoint Property Expenses (13,161) (13,414) ▼ 1.9% Net Property Income 32,556 33
Slide 7: 1H17 DPU of 5.930 cents, up 0.4% year-on-year
Results - Highlights 1H17 DPU of 5.930 cents, up 0.4% year-on-year 1H17 (a) 1H16 Y-o-Y $’000 Oct 16 to Mar 17 Oct 15 to Mar 16 change Gross Revenue 89,792 94,165 ▼ 4.6% Property Expenses (25,600) (26,945) ▼ 5.0% Net Property Income 64,192 67,220 ▼ 4.5% Income Available for Distribution 56,147 56,686
Slide 8: FCT delivers steady quarterly DPU
Results - Highlights FCT delivers steady quarterly DPU DPU (S cents) • Unchanged year-on-year • Up 5.2% quarter-on-quarter 3.036 3.039 3.040 3.040 2.96 2.859 2.87 2.890 2.815 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 8
Slide 9: Ten consecutive years of steady DPU growth
Results - Highlights Ten consecutive years of steady DPU growth • Maintains 100% payout ratio on an annual basis FCT Annual DPU (cents) CAGR FY2006 – FY2016: 6.9% * Annualised DPU for the period 5 Jul 06 (IPO) to 30 September 2006. CAGR: compound annual growth rate. 9
Slide 10: 2Q17 Gross Revenue 2.9% lower year-on-year
Results - Performance by properties 2Q17 Gross Revenue 2.9% lower year-on-year Mainly due to loss of revenue from planned vacancies at Northpoint in conjunction with its on-going AEI works, partially offset by additional contribution from Yishun 10 Retail Podium. Gross Revenue $ million 2Q17 2Q16 ▼
Slide 11: 2Q17 Property Expenses 1.9% lower year-on-year
Results - Performance by properties 2Q17 Property Expenses 1.9% lower year-on-year Property expenses generally within expectations Property Expenses 2Q17 2Q16 $ million Lower utility tariff Higher utility rate and lower expenses due to A&P expenses, higher tariff rates; Due to absence of a partially
Slide 12: 2Q17 Net Property Income 3.3% lower year-on-year
Results - Performance by properties 2Q17 Net Property Income 3.3% lower year-on-year Causeway Point and Changi City Point helped to mitigate the impact from lower NPI contributions from Northpoint (due to AEI) and the three smaller malls Net Property Income $ million 2Q17 2Q16 ▼ 3.3% Due to lower Du
Slide 13: Bigger malls to continue to drive portfolio growth
Results - NPI contribution by properties Bigger malls to continue to drive portfolio growth Causeway Point, Northpoint and Changi City Point account for 86.4% of portfolio NPI Percentage of Net Property Income contribution by mall in 2Q17 Anchorpoint 3.6% Bedok Point 2.5% YewTee Point 7.5% Changi Ci
Slide 14: Balance sheet
Balance sheet
Slide 15: Strong financial position with gearing level at 29.4%
Balance sheet Strong financial position with gearing level at 29.4% As at 31 March 2017 30 September 2016 Gearing ratio1 29.4% 28.3% Interest cover for the quarter2 7.56 times 7.43 times Total borrowings $777 million $734 million % of borrowing on fixed rates or hedged via 57% 59% interest rate swap
Slide 16: NAV per unit maintained at $1.93
Balance sheet NAV per unit maintained at $1.93 31 Mar 2017 30 Sep 2016 As at S$’000 S$’000 Non-current assets 2,618,192 2,568,969 Current assets 19,259 25,508 Total assets 2,637,451 2,594,477 Current liabilities (305,749) (278,800) Non-current liabilities (553,585) (540,032) Total liabilities (859,3
Slide 17: Weighted average debt maturity: 2.4 years
Balance sheet Weighted average debt maturity @ 31 March 2017: 2.4 years Type of borrowings Aggregate amount Unsecured bank borrowings: S$221 million (28.5%) Medium Term Note: S$270 million (34.7%) Secured bank borrowings: S$286 million (36.8%) Total Borrowings: S$777 million (100.0%) $266m (34.2% of
Slide 18: Operational performance
Operational performance
Slide 19: Overall portfolio occupancy at 87.2%
Operational performance Overall portfolio occupancy at 87.2% • Planned vacancy at Northpoint due to AEI affected the overall occupancy rate • Occupancy at all other malls improved or held steady from previous quarter Mall Occupancy 31 Mar 16 30 Jun 16 30 Sep 16 31 Dec 16 31 Mar 17 Causeway Point 98.
Slide 20: 2Q17 average rental reversion at +4.1%
Operational performance 2Q17 average rental reversion at + 4.1% 2Q17 No. of NLA (sq ft) Change compared to (1 Jan – 31 Mar 2017) renewals As % Mall’s NLA preceding rental rates1 Renewed Causeway Point 26 22,920 5.5% +6.3% Northpoint* (Includes Yishun 10 Retail Podium) 5 6,995 2.8% +3.3% Changi City
Slide 21: Maintaining positive rental reversions through economic cycles
Operational performance Maintaining positive rental reversions through economic cycles Portfolio rental reversion for 1H FY2017 at +5.7% FCT Portfolio Average Rental Reversions 15.0% 14.0% 12.8% 12.1% 9.9% 8.6% 7.2% 7.7% 6.5% 6.3% 5.7% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 F
Slide 22: Portfolio Lease Expiry as at 31 March 2017
Operational performance Portfolio Lease Expiry as at 31 March 2017 Weighted Average Lease Expiry (WALE) Expiry profile as % of total gross rental income By NLA 1.70 years (1Q17: 1.62 years) 30.8% 27.8% By Gross Rent 1.62 years 21.6% 15.8% (1Q17: 1.50 years) 2.2% 1.8% Lease expiry1 as at 31 March 201
Slide 23: The larger malls account for about 74% of the NLA to be renewed
Operational performance The 3 larger malls account for about 74% of the NLA to be renewed Number of Nett Lettable Area Remaining 6 months of as % of leased as % of total gross Leases (NLA) Expiring FY2017 area of Mall rent of Mall as at 31 March 2017 Expiring (sq ft) Causeway Point 42 66,198 16.0% 1
Slide 24: 2Q17 shopper traffic down 3.5% y-o-y, down 7.7% q-o-q
Operational performance 2Q17 shopper traffic down 3.5% y-o-y, down 7.7% q-o-q Shopper traffic in Jan-Mar 2017 could be affected by the closer time gap between Christmas and Chinese New Year, compared with the previous year Shopper Traffic (millions)# 27.1 26.4 25.9 25.1 25.2 25.0 24.4 24.6 24.5 23.2
Slide 25: Northpoint AEI update
Artist’s impression Northpoint AEI update
Slide 26: Northpoint AEI background information
Northpoint AEI update Northpoint AEI background information • The AEI at Northpoint is part of the overall strategy to periodically upgrade our malls to provide sustainable income growth for FCT • 18-month AEI commenced in March 2016, expected completion is in September 2017 • Mall to remain open fo
Slide 27: Plan view of Northpoint and upcoming Northpoint City retail component
Northpoint AEI update Plan view of Northpoint and upcoming retail component of Northpoint City by Frasers Centrepoint Limited Plan view of Northpoint Shopping Centre and the mixed-commercial and residential* development by Frasers Centrepoint Limited Links between Northpoint and Northpoint City (at
Slide 28: AEI works proceeding on schedule
Northpoint AEI update AEI works proceeding on schedule The AEI works have been phased to minimise income disruption, but Northpoint’s rental revenue will be impacted. PHASE 1 (March 2016 to January 2017) – Completed • Reconfiguration of retail space • Relocation of Food court at Basement level 2 • R
Slide 29: AEI works proceeding on schedule: occupancy projected versus actual
Northpoint AEI update AEI works proceeding on schedule Occupancy of Northpoint projected to improve progressively as AEI nears completion Occupancy at Northpoint (Projected versus Actual) Projected occupancy at Northpoint * 82.0% 81.9% 81.7% 81.7% 81.3% 81.3% 81.1% Avg Apr – Sep: 71% 80.0% 80.0% 78.
Slide 30: Outlook
Outlook
Slide 31: FCT's malls are expected to stay resilient
Outlook FCT’s malls are expected to stay resilient • Excluding motor vehicles, retail sales index declined 4.9% year-on-year in February 2017 • The asset enhancement works at Northpoint are proceeding on schedule and are expected to complete by September 2017. Leasing interest for the reconfigured a
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: Distribution details Distribution details Distribution period 1 January 2017 to 31 March 2017 Distribution per unit 3.040 cents Ex-date 2 May 2017 (Tuesday) Books closure date 4 May 2017 (Thursday) at 5.00 pm Payment date 30 May 2017 (Tuesday) 33
Slide 34: 2Q17 year-on-year and quarter-on-quarter comparison
Appendix: Year-on-year and quarter-on-quarter comparison 2Q17 year-on-year and quarter-on-quarter comparison Year-on-Year Comparison Quarter-on-Quarter Comparison 2Q17 Change Change 2Q16 1Q17 $’000 (unless otherwise indicated) Inc/(Dec) Inc/(Dec) Gross Revenue 45,717 47,089 (2.9%) 44,075 3.7% Proper
Slide 35: Portfolio Information as at 31 March 2017: Debt Information
Appendix: Portfolio Information as at 31 March 2017 Debt Information Average cost of Borrowings (all-in) 2.2% Annualised based on rates fixed @ 31 March 2017 Moody's rating Baa1 S&P rating BBB+ Interest cover (EBIT/Σinterest) (times) 7.56 For the quarter 1 Jan - 31 Mar 2017 Gearing 29.4% as at 31 Ma
Slide 36: Portfolio Lease expiry profile as at 31 March 2017
Appendix: Portfolio Lease expiry profile as at 31 March 2017 as at 31 March 2017 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 Total Causeway Point No of leases 42 74 71 35 1 0 223 Expiries as % Total NLA 16.0% 25.4% 36.1% 22.1% 0.3% 0.0% 100.0% NLA (sq ft) Expiring 66,198 104,916 148,975 91,391 1,292 -
Slide 37: Trade mix as at 31 March 2017
Appendix: Trade mix as at 31 March 2017 As % of As % of total Gross Rental Trade Classifications (in descending order of % rent) total NLA Income 1 Food & Restaurants 28.9% 36.3% 2 Fashion 13.8% 20.4% 3 Services/Education 9.1% 10.0% 4 Household 8.0% 7.7% 5 Beauty, Hair, Cosmetics, Personal Care 4.7%
Slide 38: Top 10 tenants by gross rental as at 31 March 2017
Appendix: Top 10 tenants by gross rental as at 31 March 2017 As % of As % of total Gross No. Tenant total NLA Rental Income 1 Metro (Private) Limited1 5.5% 3.7% 2 Copitiam Pte Ltd2 3.1% 3.3% 3 Cold Storage Singapore (1983) Pte Ltd3 3.6% 3.2% 4 Courts (Singapore) Limited 3.2% 3.0% 5 Koufu Pte Ltd 2.8
Slide 39: Historical portfolio information by quarter
Appendix: Historical portfolio information by quarter Occupancy by Properties Note: Yellow cells means property is undergoing AEI Property (Occupancy rate as at end of each quarter) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Causeway Point 99.5% 99.6% 99.2% 99.5% 99.2% 98.8% 99.0% 99.8% 99.7%
Slide 40: Location of FCT's Properties
Appendix: Location of FCT’s Properties Singapore-centric, suburban-focused retail property portfolio Properties are located next to or near to MRT stations / Bus Interchanges Northpoint and Yishun Anchorpoint YewTee Point Causeway Point 10 Retail Podium Bedok Point Changi City Point Woodlands BUS Yi
Slide 41: Summary of FCT's portfolio of properties
Appendix: Portfolio Information Summary of FCT’s portfolio of properties FCT Portfolio Causeway Yishun 10 Changi City Northpoint Bedok Point YewTee Point Anchorpoint Point Retail Podium Point Net Lettable 415,792 225,032 10,413 207,244 82,713 73,670 70,989 Area (sq ft)* 99 years leasehold 60 years l
Slide 42: Sponsor's retail assets in Singapore
Appendix: Sponsor’s retail assets Sponsor’s retail assets in Singapore Northpoint Retail Component of Northpoint City (2) Causeway Point (under development) YewTee Point The Centrepoint Artist’s impression Waterway Point (1) Opened Jan 2016 Bedok Point Eastpoint Anchorpoint Changi City Point Roberts
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