Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q1 FY2011 Earnings Presentation
30 slides from Frasers Centrepoint Trust's earnings presentation, Jan 24, 2011
Slide 1: Frasers Centrepoint Trust 1st Quarter FY11 results
Frasers Centrepoint Trust 1st Quarter FY11 results 24 January 2011
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: Agenda
Agenda 3 Results Balance sheet Operational performance Growth strategy
Slide 4: Results
Results
Slide 5: Good 1Q11 results despite Causeway Point refurbishment
Results 5 Good 1Q11 results despite Causeway Point refurbishment Y-o-Y Oct – Dec 10 (S$ ‘000) 1Q11 Highlights Change (%) • stronger contributions from rest of portfolio more than Gross Revenue 27,609 19% offset lower Causeway Point income • due to consolidation of Northpoint 2 & YewTee Point Less Pr
Slide 6: 1Q11 gross revenue & net property income by property
Results 6 1Q11 gross revenue & net property income by property Gross revenue S$ m 19% 27.6 Results impacted by refurbishment 23.3 22% 14.7 66% 1Q11 11.5 10.9 6.6 2% 1Q10 3.1 0.0 2.0 2.0 FCT Portfolio CWP NP 1 YTP 2 ACP Net property S$ m 17% Results impacted by refurbishment income 18.6 15.9 28% 10.3
Slide 7: DPU profile
Results 7 DPU profile Quarterly DPU payout trend Year-on-year comparison DPU (¢) 2.16 Y-o-Y 1Q11 1Q10 Change 0.21 (%) 2.06 DPU 1.95¢ 1.91¢ 2% 2.07 1.95 1.91 1.94 1Q10 2Q10 3Q10 4Q10 1Q11 Income retained from previous quarters
Slide 8: Distribution details
Results 8 Distribution details Distribution period 1 Oct to 31 Dec 2010 Distribution per unit 1.95¢ Ex-date 27 Jan 2011 Books closure date 1 Feb 2011 at 5 pm Payment date 28 Feb 2011
Slide 9: Balance sheet
Balance sheet
Slide 10: Balance sheet summary
Balance sheet 10 Balance sheet summary As at 31 Dec 2010 31 Dec 2009 Change Total assets $1,508.9m $1,161.5m 30% Net assets $986.2m $763.2m 29% Total units in issue 767,573,0051 626,565,4332 23% NAV per unit $1.283 $1.224 5% 1. Excludes 1,394,458 issuable units in partial payment of 1Q11 mgmt fees.
Slide 11: Signed $264 million loan facility to refinance CMBS expiring in July 2011
Balance sheet 11 Signed $264 million loan facility to refinance CMBS expiring in July 2011 Debt information As at 31 December 2010 Gearing ratio 30.6% 47 Interest cover1 3.69 x $264m loan facility (95 bps $m above 5-year SOR) in place Cost of debt (weighted) 3.76% to refinance CMBS Total debt $462m
Slide 12: Operational performance
Operational performance
Slide 13: Healthy rental reversions
Operational performance 13 Healthy rental reversions Net Lettable Area 1Q11 No. of renewals / Increase over New leases Area preceding rents (sq ft) % Total NLA Causeway Point 13 8,103 1.9% 12.0% Northpoint1 18 6,460 2.8% 8.2% YewTee Point - - - - Anchorpoint 15 12,606 17.6% 15.6% FCT Portfolio 46 27
Slide 14: High portfolio occupancy
Operational performance 14 High portfolio occupancy 99.4% 99.4% 98.1% 92.1% FCT portfolio occupancy Occupancy1 Mar 10 Jun 10 Sep 10 Dec 10 Causeway Point 100.0% 100.0% 97.2%2 86.1%2 Northpoint3 99.1% 99.1% 99.3% 99.1% YewTee Point 98.3% 98.3% 98.3% 98.5% Anchorpoint 97.7% 98.6% 98.8% 97.8% 1. All oc
Slide 15: Healthy occupancy costs
Operational performance 15 Healthy occupancy costs Occupancy costs 1Q11 turnover rent contribution Turnover rent Jan - Nov 2010 5% FCT (weighted average) 13.1% Gross revenue Industry 16 – 17%
Slide 16: 21% of gross rental income expiring in FY2011
Operational performance 16 21% of gross rental income expiring in FY2011 Lease expiry profile (as at 31 Dec 2010) 48.5% Weighted avg lease term to expiry By NLA 1.46 yrs 20.5% 22.6% By Gross rent 1.37 yrs 6.8% Expiries as % of total 1.6% gross rental income FY11 FY12 FY13 FY14 FY15 Number of leases
Slide 17: Growth strategy
Growth strategy
Slide 18: Delivering growth on all fronts
Growth strategy 18 Delivering growth on all fronts Strategy Target 1 Acquisition growth Pipeline & 3rd party assets 2 Enhancement growth Refurbish Causeway Point 3 Organic growth Positive rental reversion
Slide 19: Sponsor's main retail assets
Acquisition growth 19 Sponsor’s main retail assets Changi City Point The Centrepoint Bedok Point NLA (sf) MRT station Est. completion Est. catchment population Changi City Point 207,479 Expo 2H11 600,000 Bedok Point 80,985 Bedok Completed 295,000 The Centrepoint 395,315 Somerset Completed 4,987,600
Slide 20: Bedok Point received TOP in Nov 10
Acquisition growth 20 Bedok Point received TOP in Nov 10 Bedok Point NLA 80,985 Leasing status1 98% Target acquisition CY2011 1. Includes 97% committed leases and 1% lease under advance stages of negotiation
Slide 21: Outstanding track record of growth from asset enhancement initiatives
Enhancement growth 21 Outstanding track record of growth from asset enhancement initiatives Financials Mall NPI before FY2010 NPI1 Change Change revamp ($ m) ($ m) ($ m) Anchorpoint 1.7 4.4 2.7 193.3% 159% Northpoint 1 13.9 20.7 6.8 41.0% 49% Total 15.6 25.1 9.5 55.8% 61% 1. Excluding the effects of
Slide 22: Causeway Point refurbishment Summary
Enhancement growth 22 Causeway Point refurbishment Summary • Downsize space occupied by anchor tenants • Expand depth of retail offerings & create F&B from 65% to 50% of total NLA precinct on L5 • Shift escalators on B1 & L1 to improve visual • Introduce pro-family features sight-lines & release pri
Slide 23: Causeway Point refurbishment timeline
Enhancement growth 23 Causeway Point refurbishment to span 30 months Timeline1 Level Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 L1 Dec 10 progress report L2 Construction status: 12.8% completed L3 Leasing status: 92.2% of level 1 COMPLETED pre-committed B1 L4 L5 1. Indicat
Slide 24: Causeway Point progress report – New precinct on level 1
Causeway Point progress report – New precinct on level 1 24
Slide 25: Causeway Point progress report – Newly created retail space
Causeway Point progress report – Newly created retail space 25
Slide 26: Causeway Point progress report – New taxi driveway
Causeway Point progress report – New taxi driveway 26
Slide 27: Refurbishment expected to add $162 million to Causeway Point's capital value
Enhancement growth 27 Refurbishment expected to add $162 million to Causeway Point’s capital value Financials Projected Before AEI Change after AEI Through reconfiguring big boxes & Average rent per sq ft $10.2 $12.2 20% improving tenant mix NPI $42.2m $51.5m 22% Incremental NPI of $9.3m Capex - $71
Slide 28: Summary
Summary
Slide 29: Clear growth outlook
Summary 29 Clear growth outlook Strategy 1 Acquisition growth • Target acquisition of Bedok Point in CY2011 • On the lookout for 3rd party assets 2 Enhancement growth • Causeway Point refurbishment to provide sustainable income growth 3 Organic growth • 12% rental reversions in 1Q11 • Annual rental
Slide 30: Thank you
Thank you Analyst & media contact: Goh Chat-Shen, CFA Investor Relations Frasers Centrepoint Asset Management Ltd Tel: (65) 6277-2657 Email: james.goh@fraserscentrepoint.com Web: www.fraserscentrepointtrust.com
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