Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — Non-Deal Roadshow (March 2016)

36 slides from Frasers Property's roadshow presentation, Mar 8, 2016

  1. Slide 1: Frasers Commercial Trust Non-deal roadshow in Seoul and Tokyo

    Frasers Commercial Trust Non-deal roadshow in Seoul and Tokyo 8-11 March 2016

  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  Key highlights  FCOT’s investment proposition  Capital management  Moving Forward

  4. Slide 4: Key highlights

    BZ a FRASERS TRUST

  5. Slide 5: Portfolio review – Valuation

     Portfolio review – Valuation 5  Balanced portfolio consisting of Singapore and Australian properties  No one property consist of more than 29% of portfolio value Properties Portfolio Value 2 office assets SINGAPORE 1 business space asset S$1,209.0 million, (62%) AUSTRALIA 3 office assets S$753.7

  6. Slide 6: Key highlights – Quality and strategically located assets

     Key highlights – Quality and strategically located assets 6  Singapore office assets are centrally located in the CBD area  Properties are well connected and within walking distance to MRT stations  China Square Central is within walking distance to the Telok Ayer, Chinatown and Raffles Place M

  7. Slide 7: Key highlights – Quality and strategically located assets

     Key highlights – Quality and strategically located assets 7  Alexandra Technopark is located within the prominent Alexandra business corridor, a dynamic business hub at the fringe of the Central area  15 mins drive from the CBD  Within walking distance to the Labrador Park MRT station Alexandra

  8. Slide 8: Key highlights – Quality and strategically located assets

     Key highlights – Quality and strategically located assets 8  Caroline Chisholm Centre is located within  Central Park is an iconic Perth landmark the core of the Tuggeranong Town Centre  Central Park is strategically located in the  Designed as a cutting-edge energy efficient heart of the Pert

  9. Slide 9: Key highlights – Quality and strategically located assets

     Key highlights – Quality and strategically located assets 9  357 Collins Street is located in the heart of the Melbourne CBD  Collins Street is regarded as a prime office location in the Melbourne CBD  Building with Grade A specifications  Well established pedestrian, vehicle and public transp

  10. Slide 10: Key highlights – Financial performance

     Key highlights – Financial performance 12  Achieved new high in distributable income to  Achieved new high in DPU in FY15 - highest Unitholders in FY15 – highest since listing^ DPU since listing^  Sixth consecutive year of growth in distributable  Sixth consecutive year of growth in DPU since

  11. Slide 11: Key highlights – Attractive yield

     Key highlights – Attractive yield 12  FCOT offers attractive yield compared to other investments 2 4 4 1 Based on FCOT’s closing price of $1.23 per Unit as at 29 February 2016 and the 1QFY16 annualised DPU of 9.96 cents. 2 Based on the closing price as at 29 February 2016 and the 12 month dividen

  12. Slide 12: FCOT’s investment proposition

    FCOT’s investment proposition

  13. Slide 13: FCOT’s investment proposition – Contents

     FCOT’s investment proposition Contents 13 13 1. Stability of income  Healthy lease expiry profile  Positive rental reversions  Healthy occupancy and long WALE  Quality tenants and master lease  Organic growth 2. Solid fundamentals 3. Growth strategy

  14. Slide 14: Portfolio review – Lease expiry profile

     Portfolio review – Lease expiry profile 14 14  Proactive leasing reduced lease expiries in FY18 and lengthened lease expiry profile  Well spread lease expiry provides income stability Portfolio lease expiry by gross rental income Portfolio lease expiry by gross rental income Number of leases exp

  15. Slide 15: Portfolio review – Lease expiry profile

     Portfolio review – Lease expiry profile 15 FY16 – Low lease expiries for the Singapore office properties Property Lease Expiry in FY16 as a proportion of Portfolio Gross Rental Income  Low lease expiry of 7.6% in year of high office supply  New supply are mainly in Grade A/ Premium Grade space 2

  16. Slide 16: Portfolio review – Rental reversions

     Portfolio review – Rental reversions 16 Healthy positive weighted average rental reversions in Singapore properties for new and renewed leases that commenced in FY15 and 1QFY161 Weighted average rental reversions1 Property FY15 1QFY16 China Square Central +12.5% +10.3% 55 Market Street +5.7% -2 Al

  17. Slide 17: Portfolio review – Occupancy Rates & WALE

     Portfolio review – Occupancy Rates & WALE 17  Healthy average occupancy rate of 92.9%  Healthy WALE of 3.3 years Geographical occupancy and % of NPI contribution As at Key portfolio statistics 31 December 2015 Ave Occupancy 92.9% Portfolio WALE by gross 3.3 years rental income As at 31 December

  18. Slide 18: Portfolio review – Mid-term rent reviews

     Portfolio review – Mid-term rent reviews 18 18 More than 53% of leases have built-in step-up rents FY16 - Fixed % and other fixed lease rent reviews FY16 – 19 - Portfolio fixed % reviews GROSS RENTAL INCOME Average Total Property Leases step-up rent Property Portfolio China Square 3 2.5% 4.0% 0.8%

  19. Slide 19: Portfolio review – Stability of income

     Portfolio review – Stability of income 19 Top 10 tenants:  Established and well diversified across various sectors  MNCs, government department or public listed companies  Contribute 57% of portfolio gross rental income and have a long WALE of 5.6 years Top 10 tenants by gross rental income % (

  20. Slide 20: FCOT’s investment proposition – Contents

     FCOT’s investment proposition Contents 20 20 1. Stability of income 2. Solid fundamentals  Natural hedge in place  Well spread debt maturity profile  Positive market outlook  Growing demand 3. Growth strategy

  21. Slide 21: Capital Management – Debt statistics

    21  Capital Management – Debt statistics 21  Healthy interest coverage ratio of 4.63 times  Low average interest rate of 3.07%  Borrowings in AUD provide natural hedge for the Australian properties Statistics Borrowings and assets by currency As at 31 December 2015 Total Assets (S$’000) 2,044,16

  22. Slide 22: Capital Management and debt statistics

    22  Capital Management and debt statistics 22  Well spread debt maturity profile  No refinancing required until FY17  All debts are unsecured  Hedged 81% of gross borrowings on fixed rate Debt maturity Debt composition – floating vs. hedged Weighted average term to maturity: 3.1 years 1 Hedging

  23. Slide 23: Solid fundamentals - Singapore office rents

     Solid fundamentals - Singapore office rents 23 Singapore office - Grade B rents relatively more stable Singapore Grade A and Grade B office rents1 Grade A CBD Core ↓ 4.6% qoq to S$10.40 psf Grade B Islandwide ↓ 1.3% qoq to S$7.70 psf Grade B CBD Core ↓ 1.8% qoq to S$8.20 psf Source: CBRE Research

  24. Slide 24: Solid fundamentals – future Singapore office supply

     Solid fundamentals – future Singapore office supply 24 Singapore office supply 2016 – 20181,2 Net absorption vs new supply1,2 Average new supply for 2016 -2018 is slightly above the average net absorption for 2010 - 2015 Major office supply: • Marina One • Redevelopment • Frasers Tower (1,875,630

  25. Slide 25: Solid fundamentals - Singapore business park rents

     Solid fundamentals - Singapore business park rents 25 Singapore business park rents trend – Rents have remained stable1 Singapore Business Park (city fringe) rents1 Source: CBRE Research 1 CBRE, Singapore Market View, Q4 2015

  26. Slide 26: Perth CBD office supply and rents

     Perth CBD office supply and rents 26  Perth CBD office is still experiencing negative net absorption as a result of the soft leasing market  Incentives for Prime space is around 45%  Average Perth CBD prime net face rent was A$612 per square metre per annum Perth CBD office vacancy and net abso

  27. Slide 27: Melbourne CBD office supply and rents

     Melbourne CBD office supply and rents 27  Melbourne Prime CBD office average net face rent are between A$450 – A$650 psm per annum  Net absorption of 60,906 m2 in the six months to July 2015 a five year high  Vacancy is expected to decline over the next three years Melbourne CBD office market n

  28. Slide 28: Asset updates – Developments at China Square Central

     Asset updates – Developments at China Square Central 28  Site has been handed over for the development of a 16 storey hotel at China Square Central1  New retail and commercial spaces with better frontage and visibility will also be created2  Construction work expected to commence in 1Q 2016  C

  29. Slide 29: Portfolio review – Singapore asset updates

     Portfolio review – Singapore asset updates 29 China Square Central – healthy 55 Market Street – Alexandra Technopark – occupancy rate healthy occupancy rate healthy occupancy rate Occupancy 95.1% (office tower: 98.3%) 95.8% 92.8% ^ WALE 1.6 years 1.3 years 1.5 years New leases, Crest Travel & Tour

  30. Slide 30: Portfolio review – Australia asset updates

     Portfolio review – Australia asset updates 30 Caroline Chisholm Centre Central Park – Healthy WALE of – full occupancy with 357 Collins Street – full 2.9 years long WALE of 9.5 years committed occupancy Occupancy 80.3%^ 100.0% 100.0%^ WALE 2.9 years (7.5 years with new lease#) 9.5 years 5.3 years

  31. Slide 31: Delivering growth

     Delivering growth 31 31 Organic and in-organic initiatives to deliver growth in distributable income Grow portfolio organically and inorganically Positive rental Asset enhancement reversions DPU initiatives Prudent capital management

  32. Slide 32: Appendix

    2 yy ‘outta TRUST

  33. Slide 33: Existing Portfolio - Properties in Singapore

     Existing Portfolio- Properties in Singapore 33 55 Market Street, Singapore China Square Central, Singapore Alexandra Technopark, Singapore Description • 16-storey commercial property with 2 • 15-storey commercial office tower and • High-tech business space development floors (incl. basement) of re

  34. Slide 34: Existing Portfolio - Properties in Australia

     Existing Portfolio- Properties in Australia 34 Central Park, Perth Caroline Chisholm Centre, Canberra 357 Collins Street, Melbourne Description • 47-storey premium grade, tallest building in • 5-storey Grade A contemporary office • 25-storey office building with Grade A Perth building specificatio

  35. Slide 35: Results – 1QFY16 Financial highlights

     Results – 1QFY16 Financial highlights 35 Higher contribution from Alexandra Technopark and first full quarter contribution from 357 Collins Street 12% 2% 18%

  36. Slide 36: 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

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