Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — FY2013 Earnings Presentation
42 slides from Frasers Centrepoint Trust's earnings presentation, Oct 21, 2013
Slide 1: Financial Results Presentation for 4th Quarter & Full Year FY2013
Frasers Centrepoint Trust Financial Results Presentation for 4th Quarter & Full Year FY2013 ended 30 September 2013 21 October 2013
Slide 2: Important notice
Important notice 2 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 re
Slide 3: Contents
Contents 3 Results slide 4 Balance sheet slide 17 Operational performance slide 21 Outlook slide 29 Appendix slide 32
Slide 4: Results
Results
Slide 5: 4Q13 Results Highlights
Results 5 4Q13 Results Highlights Financial performance (year-on-year) • 4Q13 DPU up 10% to 2.98 cents • Full year 2013 DPU up 9% to 10.93 cents • $195.7 million net surplus from revaluation of portfolio properties • $1.77 net asset value per unit, up 16% from $1.53 • 27.6% gearing level, 2.5%-poin
Slide 6: 4Q13 DPU up 10% to 2.98 cents
Results 6 4Q13 DPU up 10% to 2.98 cents 3 months ended 30 September $’000 4Q13 4Q12 Change Remarks Main growth driver was Causeway Gross Revenue 40,200 39,045 ▲ 3.0% Point. Increase due mainly to higher Property Expenses (12,929) (10,331) ▲ 25.1% property tax and maintenance expense. Decrease in N
Slide 7: Full year 2013 DPU up 9.2% to 10.93 cents
Results 7 Full year 2013 DPU up 9.2% to 10.93 cents 12 months ended 30 September $’000 FY2013 FY2012 Change Remarks Main growth driver was Causeway Gross Revenue 157,959 147,203 ▲ 7.3% Point and Northpoint. Increase due to higher property tax, maintenance expense and Property Expenses (46,369) (42
Slide 8: FCT delivers steady and regular DPU
Results 8 FCT delivers steady and regular DPU FCT Quarterly DPU Record-high DPU DPU (¢) 2.98 2.85 +10.0% YoY 2.71 2.70 2.60 +9.6% YoY 2.50 2.40 +8.0% YoY 2.20 +9.1% YoY 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
Slide 9: Seven consecutive years of DPU growth since listing
Results 9 Seven consecutive years of DPU growth since listing Maintains 100% payout ratio on an annual basis Record-high DPU FCT Annual DPU 10.93 DPU (S¢) 10.01 8.20 8.32 7.51 7.29 6.55 6.03* FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 (IPO) * Annualised DPU for the period 5 Jul 06 (IP
Slide 10: 4Q13 revenue growth led by Causeway Point
Results 10 4Q13 revenue growth led by Causeway Point Gross Revenue 4Q13 Revenue compared to 4Q12: S$ m • Causeway Point: Higher gross rent from improved occupancy and better rental rates for new and renewed leases, higher ▲ 3.0% 4Q13 4Q12 turnover rent and car park income. 40.20 39.05 • Northpoint
Slide 11: FY2013 revenue growth led by Causeway Point and Northpoint
Results 11 FY2013 revenue growth led by Causeway Point and Northpoint FY2013 Revenue compared to FY2012: Gross Revenue • Increase of $10.8 million or 7.3% over FY2012 was contributed by higher revenues S$ m from Causeway Point (after the completion of its refurbishment in Dec 2012) and from ▲ 7.3%
Slide 12: Higher property expenses in 4Q13 due mainly to property tax and maintenance
Results 12 Higher property expenses in 4Q13 due mainly to higher property tax and maintenance expense 4Q13 Property Expenses compared to 4Q12: Property Expenses • The increase of $2.6 million in 4Q13 S$ m property expenses compared to 4Q12 was mainly due to: ▲ 25.1% 4Q13 4Q12 • Higher property tax
Slide 13: 2013 property expenses higher due to property tax, manager's fee and other expenses
Results 13 2013 property expenses higher due to property tax, property manager’s fee and other property expenses FY2013 Property Expenses compared to FY2012: Property Expenses • The increase of $3.6 million in 2013 S$ m property expenses compared to 2012 was mainly due to: ▲ 8.4% FY2013 FY2012 • H
Slide 14: 4Q13 NPI lower due to higher property expenses incurred
Results 14 4Q13 NPI lower due to higher property expenses incurred 4Q13 NPI compared to 4Q12: Net Property Income • Causeway Point : Due mainly to higher S$ m property tax incurred in 4Q13 compared to 4Q12. ▼ 5.0% 4Q13 4Q12 • Anchorpoint: Lower revenue and higher property expenses in 4Q13 led to a
Slide 15: 2013 NPI growth led by Causeway Point and Northpoint
Results 15 2013 NPI growth led by Causeway Point and Northpoint Net Property Income S$ m FY2013 NPI compared to FY2012: ▲ 6.9% FY2013 FY2012 • The increase of $7.16 million in 111.59 2013 NPI compared to 2012 was 104.43 contributed by: Causeway Point (+ $5.95 million)and Northpoint (+$1.98 million
Slide 16: Net revaluation gain of $195.7 million
Results 16 Net revaluation gain of $195.7 million Cap rate compression of between 15 bps and 25 bps compared to 2012 FCT Portfolio as at 30 September 2013 Property Valuation Book value Revaluation Capitalisation Rate1 @30.09.2013 @30.09.2013 Surplus Change 2013 2012 Change ($m) ($ m) ($ m) Causeway
Slide 17: Balance sheet
Balance sheet
Slide 18: NAV per unit up 16% to $1.77 on revaluation surplus
Balance sheet 18 NAV per unit up 16% to $1.77 on revaluation surplus of properties 30 Sep 2013 30 Sep 2012 As at S$’000 S$’000 Non-current assets 2,091,348 1,887,948 Current assets 43,162 29,171 Total assets 2,134,510 1,917,119 Current liabilities (120,615) (112,419) Non-current liabilities (551,5
Slide 19: Gearing level improved to 27.6%
Balance sheet 19 Gearing level improved to 27.6% As at 30 September 13 30 September 12 Gearing ratio1 27.6% 30.1% Interest cover for 4Q13 5.80 times 6.49 times Interest cover for FY2013 6.15 times 5.56 times Total borrowings $589m $577m % of borrowing on fixed rates or 94% 94% hedged via interest
Slide 20: No significant refinancing needs in the near-term
Balance sheet 20 No significant refinancing needs in the near-term Weighted average debt maturity @ 30 September 2013: 2.85 years $264m Aggregate amount (44.8% of Medium Term Note: S$255 million total Secured borrowings: S$334 million borrowing) Total Borrowings: S$589 million $95m $100m (16.1% of
Slide 21: Operational performance
Operational performance
Slide 22: Portfolio occupancy remained stable at 98.4%
Operational performance 22 Portfolio occupancy remained stable at 98.4% Occupancy by Mall as at 30 Sep 12 31 Dec 12 31 Mar 13 30 Jun 13 30 Sep 13 • #B1-28 (1,593 sqft or c.2% of NLA) expected to start trading in Oct 2013. Causeway Point 87.7% 96.4% 99.6% 99.6% 99.5% • Other vacant units, including
Slide 23: 10.8% average rental reversion for renewals in 4Q13
Operational performance 23 10.8% average rental reversion for renewals in 4Q13 NLA (sq ft) Change compared to 4Q13 No. of renewals As % Mall’s NLA preceding rental rates1 Renewed Causeway Point 20 6,876 1.7% 7.3% Northpoint 17 16,857 7.1% 12.7% Bedok Point 1 419 0.5% 57.1% YewTee Point 3 904 1.2%
Slide 24: 7.7% average rental reversion for renewals in FY2013
Operational performance 24 7.7% average rental reversion for renewals in FY2013 Average occupancy cost for the portfolio stood at 16% for the 11-month period (Oct 12 - Aug 13)* NLA (sq ft) Change compared to FY2013 No. of renewals As % Mall’s NLA preceding rental rates1 Renewed Causeway Point 39 3
Slide 25: Maintaining positive rental reversions through economic cycles
Operational performance 25 Maintaining positive rental reversions through economic cycles % Increase in average rental rates over preceding rates for lease renewals 15.0% 14.0% 12.8% 12.1% 8.6% 7.2% 7.7% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
Slide 26: Well-staggered lease renewal schedule over the next three years
Operational performance 26 Well-staggered lease renewal schedule over the next three years Weighted Average Lease Expiry (WALE) Expiry profile as % of total gross rental income By NLA 1.56 years 39.0% (3Q13: 1.70 years) 32.1% 22.5% By Gross Rent 1.49 years (3Q13: 1.61 years) 4.8% 1.6% Lease expiry
Slide 27: Causeway Point and Northpoint account for most upcoming renewals
Operational performance 27 Causeway Point and Northpoint account for substantial portion of upcoming renewals in the each of the next 2 years 76% of total Number of Nett Lettable Area as % of total NLA as % of total gross rent gross rental FY2014 Leases Expiring (NLA) Expiring (sq ft) expiring in
Slide 28: FY2013 Shopper traffic grew 3.0% year-on-year to 87.2 million
Operational performance 28 FY2013 Shopper traffic grew 3.0% year-on-year to 87.2 million FY2013 FY2012 Change 87.2 million 85.0 million +3.0% Shopper Traffic (millions)* ▲2.2% YoY ▲5.7% YoY ▲5.0% YoY ▼1.0% YoY 25.0 22.0 22.5 22.1 21.7 21.5 21.2 20.9 20.6 20.0 15.0 10.0 5.0 0.0 Oct-Dec Jan-Mar Apr-
Slide 29: Outlook
Outlook
Slide 30: Suburban retail sector supported by positive trends
Summary 30 Suburban retail sector supported by positive trends • The Singapore suburban retail sector supported by positive trends including: a) growing median household income; b) low unemployment rate; c) stable supply/demand of retail space; d) growing residential population in the suburban are
Slide 31: 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 32: Distribution details
Appendix 32 Distribution details Distribution period 1 July 2013 to 30 September 2013 Distribution per unit 2.98 cents 29 October 2013 Ex-date (Tuesday) at 9.00 am 31 October 2013 Books closure date (Wednesday) at 5.00 pm 29 November 2013 Payment date (Friday)
Slide 33: 4Q13 year-on-year and quarter-on-quarter comparison
Appendix 33 4Q13 year-on-year and quarter-on-quarter comparison Year-on-Year Comparison Quarter-on-Quarter Comparison 4Q13 $’000 (unless otherwise indicated) 4Q12 % Change 3Q13 % Change Gross Revenue 40,200 39,045 ▲ 3.0% 39,974 ▲ 0.6% Property Expenses -12,929 -10,331 ▲ 25.1% -11,522 ▲ 12.2% Net P
Slide 34: Appendix: Portfolio Information as at 30 September 2013
Appendix: Portfolio Information as at 30 September 2013 34 FRASERS CENTREPOINT TRUST PORTFOLIO INFORMATION AS AT 30 September 2013 Portfolio NLA (sq ft) Causeway Point (CWP) 416,137 Northpoint (NP1 and NP2) 235,653 Anchorpoint (ACP) 71,610 YewTee Point (YTP) 73,669 Bedok Point (BPT) 81,393 Total N
Slide 35: Appendix: Portfolio Lease expiry profile as at 30 September 2013
Appendix: Portfolio Lease expiry profile as at 30 September 2013 35 Lease expiry profile (FYE Sep 30) FY14 FY15 FY16 FY17 FY18 FCT Portfolio No of leases 219 232 130 19 2 Expiries as % Total NLA 30.5% 37.4% 22.8% 4.5% 4.8% NLA (sq ft) Expiring 264,053 323,718 197,132 38,697 41,646 Expiries as % To
Slide 36: Appendix: Trade mix as at 30 September 2013
Appendix: Trade mix as at 30 September 2013 36 % of portfolio % of portfolio Trade Classifications NLA gross rents 1 Fashion 15.3% 23.3% 2 Household 8.8% 7.6% 3 Services/Education 9.1% 8.6% 4 Beauty, Hair, Cosmetics, Personal Care 6.2% 8.2% 5 Food & Restaurants 28.4% 32.2% 6 Books, Music, Art & Cr
Slide 37: Appendix: Top tenants by gross rental as at 30 September 2013
Appendix: Top 10 tenants by gross rental as at 30 September 2013 37 % of portfolio % of portfolio Tenants NLA gross rents 1 Cold Storage Singapore 7.2% 4.7% 2 Metro 6.9% 3.2% 3 Courts 4.0% 3.0% 4 Kopitiam 2.0% 2.0% 5 Food Republic 2.0% 1.9% 6 NTUC Fairprice 2.0% 1.6% 7 Watson's Personal store 1.2%
Slide 38: Appendix: Historical portfolio information by quarter
Appendix: Historical portfolio information by quarter 38 FRASERS CENTREPOINT TRUST FINANCIAL & OPERATIONAL METRICS Note: Yel l ow cel l s mea ns property i s undergoi ng AEI Quarterly historical data 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Gross rent ($ '000) CWP 14,476 13,791 16,293 15,537 16,752 16,9
Slide 39: Appendix: Historical profit and loss statement by quarter
Appendix: Historical profit and loss statement by quarter 39 FRASERS CENTREPOINT TRUST PROFIT AND LOSS STATEMENT $'000 Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 REVENUE Gross rent 32,278 31,757 35,237 34,033 35,188 35,306 35,802 Other revenue 4,447
Slide 40: Appendix: Historical portfolio information by financial year
Appendix: Historical portfolio information by financial year 40 FRASERS CENTREPOINT TRUST FINANCIAL & OPERATIONAL METRICS Yearly historical data (FYE Sep) FY07 FY08 FY09 FY10 FY11 FY12 FY13 Note: Yellow cells means property is undergoing AEI Gross Rent ($ '000) CWP 45,674 48,805 50,669 50,633 44,9
Slide 41: Appendix: Location of FCT's Malls
Appendix: Location of FCT’s Malls 41 Anchorpoint YewTee Point Causeway Point Northpoint Bedok Point Snapshot • 5 properties with an aggregate net lettable area of 878,000 square feet1 • Average occupancy of 98.4%1 • More than 600 leases1 • Average of 7.3 million shoppers per month2 Legend : FCT’s p
Slide 42: Appendix: Sponsor's pipeline assets
Appendix: Sponsor’s pipeline assets 42 Sponsor’s pipeline assets Changi City Point Singapore The Centrepoint • Retail mall’s NLA: 207,479 sq ft • The mall is part of “One @ Changi City” project jointly owned and developed by Ascendas Land (Singapore) and Frasers Centrepoint Ltd (FCT’s sponsor) • 2
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