Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Commercial Trust — FY2012 Earnings Presentation
37 slides from Frasers Property's earnings presentation, Oct 25, 2012
Slide 1: Frasers Commercial Trust 4QFY12 & Full Year Financial Results
Frasers Commercial Trust 4QFY12 & Full Year Financial Results 25 October 2012
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 3 Results Portfolio review Capital management Moving Forward
Slide 4: Results
J ERASERS TRUST
Slide 5: Results – FY12 key highlights
Results – FY12 5 Key highlights: FY distributable income to Unitholders of S$43.1m, ↑ 18.5% Y-o-Y Distribution to CPPU holders of S$18.8m, represents 5.5% distribution yield on the offer price of S$1.0 Caroline Chisholm Centre recorded higher NPI of S$16.2 million, ↑ 48.5% Y-o-Y as a result of the a
Slide 6: Results – Financial highlights (4Q FY12)
Results – Financial highlights 6 DPU for 4Q rose by 15% Y-o-Y 4Q FY12 Y-o-Y 1 Jul 2012 – 30 Sep 2012 Contributing factors (S$ ‘000) Change (%) Higher contribution from Central Park; higher contribution from Caroline Chisholm Centre due to Gross Revenue 35,581 17% acquisition and direct leases with u
Slide 7: Results – Financial highlights (FY12)
Results – Financial highlights 7 19% rise in distributable income for FY12 FY12 Y-o-Y 1 Oct 2011 – 30 Sep 2012 Contributing factors (S$ ‘000) Change (%) Higher contribution from Central Park, higher contribution from Caroline Chisholm Centre due to Gross Revenue 132,861 11% acquisition and direct le
Slide 8: Results – Financial highlights: DPU growth
Results – Financial highlights 8 Recorded DPU growth for the third successive year since recapitalisation exercise DPU (Cents) 16.3% 6.69 5.75
Slide 9: Results – Financial highlights: Net Property Income
Results – Financial highlights 9 7% higher NPI boosted by Central Park and Caroline Chisholm Centre Net Property Income (S$m) TOTAL: S$102.516 million FY12 Singapore: S$53.298 million (52%) 7% Australia: S$42.381 million (41%) Japan: S$6.837 million (7%) 102.5 Driven by 96.3 higher Contribution Dive
Slide 10: Results – Distribution payment
Results – Distribution payment 10 Distribution to be paid on 29 November 2012 Distribution Period 1 April 2012 to 30 September 2012 Distribution of 3.4480 cents per Unit comprising: a) taxable income distribution of 2.1251 cents; Ordinary Unit Distribution Rate b) tax-exempt income distribution of 1
Slide 11: Portfolio review
Portfolio review J ERASERS TRUST
Slide 12: Portfolio review – Valuation
Portfolio review – Valuation 12 4.4% increase in overall portfolio valuation driven by higher valuation achieved by Central Park and Alexandra Technopark Date of Local currency Translation as at valuation Value 30-Sep-12 Variance from 30 September 2011 (millions) (S$ million) 1 Total variance Asset
Slide 13: Portfolio will focus on Singapore and Australian properties
Portfolio review – Valuation 13 Portfolio will focus on Singapore and Australian properties Azabu Aco , 1% Ebara Techno- Serve, 2% Galleria Otemae , 2% Caroline Chisholm Centre, 15% Caroline Chisholm Centre, 14% China Square China Square Central, 32% Central, 30% Post-sale of Japanese Central Park,
Slide 14: Occupancy Rates & WALE
Portfolio review – Occupancy Rates & WALE 14 Singapore & Australian portfolios contribute 93.3% of NPI income Healthy average occupancy rate of 94.9% Geographical occupancy and % of NPI contribution As at Key portfolio statistics 30 September 2012 WALE by gross rental income 4.7 years WALE by gross
Slide 15: Lease expiry profile
Portfolio review – Lease expiry profile 15 15 More than 40% of lease expiry in FY2017 and beyond Post-sale of Japanese properties would increase level of income expiring in FY17 & beyond 1 Portfolio lease expiry by gross rental income Number of leases expiring 2 65 40 33 4 20 NLA (sq ft) expiring 2
Slide 16: Low passing rents present potential for higher income
Portfolio review – Lease expiry profile 16 Low passing rents presents potential for higher income Property Lease Expiry as a proportion of total Portfolio Gross Rental Income * Ave passing rent for expiring leases Number of leases expiring 54 8 3 Average passing rent $6.2 $6.0 AUD $546.8 As at 30 Se
Slide 17: Mid-term rent reviews
Portfolio review – Mid-term rent reviews 17 17 More than 35% of leases have built-in step-up rents FY13 - Fixed % and other fixed lease rent reviews FY13 – 16 - Portfolio fixed % reviews GROSS RENTAL INCOME Average Total Property Leases step-up rent Property Portfolio China Square 4 8.4% 3.5% 0.7% C
Slide 18: Stability of income
Portfolio review – Stability of income 18 Master lessees/ blue chip tenants with long leases contribute 60% of total gross rental income Master Leases % (Gross Rental Tenant Lease Expiry Income) Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 20.5% Blue Chip Tenants with Long Leases % (Gr
Slide 19: China Square Central – Healthy demand for space
Portfolio review – Asset updates 19 China Square Central – Healthy demand for space vacated by Marsh & McLennan Tenancy activity activities: – Approx. 26,500 sq ft of new leases and renewals secured during the quarter – Signed-on a new tenant, GroupM, part of the WPP Group listed on both LSE and NAS
Slide 20: Precinct Master Plan initiatives on schedule
Portfolio review – Asset updates 20 Precinct Master Plan initiatives on schedule Covered linkway provides opportunities for alfresco dining Retail offering being upgraded Artist impression
Slide 21: China Square Central – Asset Enhancement Initiatives
Portfolio review – Asset updates 21 China Square Central – Asset Enhancement Initiatives (“AEI”) will enhance positioning of the property China Square Central, Singapore Artist impression Artist impression AEI being planned and targeted to commence by end-2012 Upgrading of main lobby, drop-off point
Slide 22: China Square Central – Average passing rent
Portfolio review – Asset updates 22 China Square Central – Average passing rent approx. $6.3 psf pm Lease expiry by gross rental income Number of leases expiring 54 30 23 1 3 NLA (sq ft) expiring 121,178 40,717 55,327 10,056 43,074 Expiries as % total Gross Rental Income 44.9% 14.2% 19.7% 2.7% 18.0%
Slide 23: Alexandra Technopark and 55 Market Street updates
Portfolio review – Asset updates 23 Alexandra Technopark – full occupancy with robust 55 Market Street – healthy occupancy rate tenancy activities Healthy occupancy: Robust tenancy activities: – 90% occupancy as at 30 September – 100% occupancy as at 30 September – New tenants Corporate Serviced Off
Slide 24: Central Park and Caroline Chisholm Centre updates
Portfolio review – Asset updates 24 Caroline Chisholm Centre –full occupancy coupled Central Park – Long WALE of 4.2 years with long WALE of 12.8 years Robust occupancy: Robust tenancy activities: – 96.4% occupancy as at 30 September – 100% occupancy as at 30 September – Long WALE by gross rental in
Slide 25: Divestment of Japanese properties
Portfolio review – Asset updates 25 Divestment of Japanese properties will strengthen financial position Divestment details – Nominal sale consideration of ¥4 – Completed on 25 October 2012 Rationale – Declining occupancy and weak performance – TMK holding properties currently at negative NAV of S$4
Slide 26: Capital management
Capital management J ERASERS TRUST
Slide 27: Capital Management – Debt statistics
27 Capital Management – Debt statistics 27 Healthy gearing level and 12% increase in NAV per Unit to S$1.50 Y-o-Y Statistics Borrowings and assets by currency As at 1,200 30 September 1,076 2012 1,000 Total Assets (S$’000) 2,339,892 800 Gross Borrowings (S$’000) 860,159 682 S$ million Units on Issue
Slide 28: Partial prepayment of debt and divestment to reduce debt
28 Capital Management – Debt statistics 28 Partial prepayment of debt and divestment of Japanese properties will reduce debt by 31% and improve gearing to 28.6% Debt 1000 900 800 161 700 109 600 S$ million 500 400 860 699 300 590 200 100 0 As at 30 Sept 2012 A: Partial prepayment of Proforma debt af
Slide 29: No debt maturing until FY2015
29 Capital Management – Debt statistics 29 No debt maturing until FY2015 Debt maturity as at 30 September 20121 Proforma debt maturity 2 600 566 450 405 400 500 350 400 Post debt prepayment and 300 S$ million S$ million divestment of Japanese 250 300 properties 185 200 185 200 150 109 100 100 50 0 0
Slide 30: Capital Management – Interest rate statistics
Capital Management – Interest rate statistics 30 Hedged about 72% of Gross Borrowings Hedging debt Debt composition – floating vs. hedged As at As a % of: 30 September 2012 Total Gross Borrowings 72.0% For quarter ended 30 September 2012
Slide 31: Utilisation of proceeds from the divestment of Keypoint
31 Capital Management – Utilisation of proceeds from the divestment of Keypoint 31 S$160 million or 45% of the divestment proceeds from Keypoint utilised for part prepayment of SGD and AUD debt Debt 400 350 90 300 250 S$ million 70 200 358 150 268 100 198 50 - Net divestment proceeds Partial prepaym
Slide 32: Moving forward
Moving forward J ERASERS TRUST
Slide 33: Solid fundamentals – Singapore office market
2. Solid fundamentals – positive market outlook 33 Singapore office market recorded 4th consecutive quarter of positive net absorption and improved vacancy rates in Q3 2012 Market conditions 1 Singapore office new supply 2 – Office demand in Q3 2012 displayed resilience beyond Historical net supply
Slide 34: Singapore office rents trend – Grade B more resilient
2. Solid fundamentals – positive market outlook 34 Singapore office rents trend – Grade B rents more resilient Singapore Grade A and Grade B office rents 1 Rent (S$ psf / 2012 Q3 12 months ago Change % month) $20 18.65 18.80 18.80 Grade A Rent 9.80 11.06 (2011 Q3) -11.4% $18 17.15 Grade B Rent 7.17
Slide 35: Perth CBD premium grade office rents
2. Solid fundamentals – positive market outlook 35 Premium Grade office market net rent between AUD 750 to AUD 950 Perth CBD supply 1 Perth CBD average net face rents 1 Market conditions 1 – Perth CBD office market remained positive – Vacancy rate remained at 2.9%, similar to the preceding quarter –
Slide 36: Delivering growth
36 Delivering growth 36 Strategic initiatives to deliver growth to Unitholders S$160 mil of S$358 mil net divestment proceeds utilised for Divestment of Keypoint debt repayment. Remaining earmarked for CPPU redemption/ unit buyback Portfolio Acquisition of remaining 50% interest in reshaping Positiv
Slide 37: 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 — FY2012 Earnings Presentation on 6ix