Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Commercial Trust — 2QFY13 Earnings Presentation
32 slides from Frasers Property's earnings presentation, Apr 29, 2013
Slide 1: Frasers Commercial Trust 2QFY13 Financial Results
Frasers Commercial Trust 2QFY13 Financial Results 29 April 2013
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
Lb i — S| iRssens TRUST
Slide 5: Results – Financial highlights: 16.8% rise in distributable income for 2QFY13
Results – Financial highlights 5 16.8% rise in distributable income for 2QFY13 2QFY13 Y-o-Y 1 Jan 2013 – 31 Mar 2013 Contributing factors (S$ ‘000) Change (%) Higher contribution from Caroline Chisholm Centre due to acquisition of remaining 50% interest, higher rental rates achieved for the properti
Slide 6: Results – Financial highlights: 12.2% rise in distributable income for 1HFY13
Results – Financial highlights 6 12.2% rise in distributable income for 1HFY13 1 Oct 2012 – 31 Mar 1HFY13 Y-o-Y Contributing factors 2013 (S$ ‘000) Change (%) Higher contribution from Caroline Chisholm Centre due to acquisition of remaining 50% interest, higher rental rates achieved for the properti
Slide 7: Results – Financial highlights: Net Property Income
Results – Financial highlights 7 Higher NPI from Caroline Chisholm Centre offset by divestments in 1QFY13 Net Property Income (S$m) TOTAL: S$23.0 million 2QFY13 Singapore: S$10.6 million (46%) Australia: S$12.4 million (54%) * * Includes KeyPoint which was divested on 28 September 2012 and the Japan
Slide 8: Continuous growth in DPU
Results – Financial highlights 8 Continuous growth in DPU 14.4% DPU growth for 2QFY13 DPU (Cents) 14.4% * Adjusted for Unit consolidation
Slide 9: Results – Distribution payment
Results – Distribution payment 9 Distribution to be paid on 30 May 2013 Distribution Period 1 January 2013 to 31 March 2013 Distribution of 1.9883 cents per Unit comprising: a) taxable income distribution of 1.1063 cents; Ordinary Unit Distribution Rate b) tax-exempt income distribution of 0.8256 ce
Slide 10: Portfolio review
Portfolio review — hie, Fei 7 (outa TRUST
Slide 11: Valuation: Balanced portfolio of Singapore and Australian properties
Portfolio review – Valuation 11 Balanced portfolio consisting of Singapore and Australian properties No one property consist of more than 32% of property value Caroline Chisholm Centre, 14% China Square Central, 32% Central Park, 25% Singapore Alexandra 55 Market Technopark, Street, 7% 22% Perth Can
Slide 12: Occupancy Rates & WALE
Portfolio review – Occupancy Rates & WALE 12 Healthy average occupancy rate of 95.3% Healthy WALE of 4.8 years Geographical occupancy and % of NPI contribution As at Key portfolio statistics 31 March 2013 Ave Occupancy 95.3% WALE by gross rental income 4.8 years As at 31 March 2013. Excludes retail
Slide 13: Lease expiry profile
Portfolio review – Lease expiry profile 13 13 More than 47% of lease expiry in FY2017 and beyond provides income stability Portfolio lease expiry by gross rental income Number of leases expiring 40 43 39 21 22 NLA (sq ft) expiring 148,133 1,133,216 86,995 80,380 724,626 Expiries as % total NLA 6.5%
Slide 14: Lease expiry profile: low passing rents
Portfolio review – Lease expiry profile 14 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 31 7 2 Average passing rent $6.6 $5.5 AUD $638 As at 31 March
Slide 15: Rental reversions
Portfolio review – Rental reversions 15 Positive rental reversions for new and renewed leases commenced during the quarter^ 87% 19% 10% 8% China Square 55 Market Alexandra Central Park Central Street# Technopark* As at 31 March 2013.. Excludes retail turnover rent ^ Weighted average rental reversion
Slide 16: Mid-term rent reviews
Portfolio review – Mid-term rent reviews 16 16 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 17: Stability of income
Portfolio review – Stability of income 17 Master lessees/ blue chip tenants with long leases contribute 67% of total gross rental income Master Leases % (Gross Rental Tenant Lease Expiry Income) Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 21.6% Blue Chip Tenants with Long Leases % (Gr
Slide 18: Asset updates: China Square Central
Portfolio review – Asset updates 18 Committed occupancies for China Square Central will boost income in the next financial quarter Healthy tenancy activities: – New tenants include Geyer Environments, SourceCode Asia Pacific and Securus Partners – Committed tenants include GroupM and MOL Bulk Carrie
Slide 19: Asset updates: Precinct Master Plan on schedule
Portfolio review – Asset updates 19 Precinct Master Plan initiatives on schedule Covered linkway Installation of columns and trusses completed Retail offering improved
Slide 20: Asset updates: China Square Central AEI on schedule
Portfolio review – Asset updates 20 China Square Central – Asset Enhancement Initiatives (“AEI”) on schedule Before Before After After Toilet Lift lobby AEI commenced in November 2012, scheduled to be completed in the second quarter of 2013 Upgrading of main lobby, drop-off point, common corridors a
Slide 21: Asset updates: Market Street and Alexandra Technopark
Portfolio review – Asset updates 21 55 Market Street – Alexandra Technopark – healthy occupancy rate Robust tenancy activities Occupancy 96.7% 98.4% (underlying occupancy) Average underlying passing gross rent: S$3.37psf New leases , Best World Lifestyle, Citigate St. Jude Medical, Servicom Medical,
Slide 22: Asset updates: Central Park and Caroline Chisholm Centre
Portfolio review – Asset updates 22 Central Park – Long Caroline Chisholm Centre –full WALE of 4.2 years occupancy with long WALE of 12.3 years Occupancy 99.0% 100.0% New leases , Asgard Wealth Management, Japan Australia LNG (MIMI) Property occupied by a single tenant, i.e. the Commonwealth committ
Slide 23: Capital management
Capital management i, FRASERS A S| iRssens TRUST
Slide 24: Capital Management – Debt statistics: Healthy gearing level
24 Capital Management – Debt statistics 24 Healthy gearing level Statistics Borrowings and assets by currency As at 1,200 31 March 2013 1,076 Total Assets (S$’000) 1,859,828 1,000 Gross Borrowings (S$’000) 590,246 800 685 S$ million Units on Issue and Issuable 1 656,588,131 600 NAV per Unit (ex-DPU)
Slide 25: Portfolio reshaping – effects of CPPU net redemption/conversion on DPU
25 Portfolio reshaping– effects of CPPU net redemption/conversion on DPU 25 Redemption of CPPUs is accretive to Unitholders 162.6 mil CPPUs S$8.9 mil savings in redeemed1 CPPU distribution2 Completed: 2 January DPU uplift in 2013 2QFY13 7.4 mil CPPUs S$0.4 mil savings in converted into 6.3 CPPU dist
Slide 26: Debt statistics: Well spread debt maturity profile
26 Capital Management – Debt statistics 26 Well spread debt maturity profile Debt maturity Gearing 450 40.0% 38.6% 1 400 38.0% 350 175 Post debt prepayment and 300 divestment of Japanese 36.0% S$ million Gearing 250 properties 34.0% 200 31.7% 150 32.0% 230 100 185 1281 30.0% 50 0 28.0% FY2013 FY2014
Slide 27: Capital Management – Interest rate statistics
Capital Management – Interest rate statistics 27 Hedged about 63% of Gross Borrowings Hedging debt Debt composition – floating vs. hedged As at As a % of: 31 March 2013 Total Gross Borrowings 63.0% For financial quarter ended 31 March 2013
Slide 28: Moving forward
Moving forward i, FRASERS A S| iRssens TRUST
Slide 29: Solid fundamentals – Singapore office rents trend
2. Solid fundamentals – positive market outlook 29 Singapore office rents trend – Grade B rents more resilient Singapore Grade A and Grade B office rents 1 Rent (S$ psf / 2013 Q1 12 months ago Change % month) Grade A Rent 9.55 10.60 (2012 Q1) -9.9% Grade B Rent 7.10 7.25 (2012 Q1) -2.1% 1 Source: CB
Slide 30: Solid fundamentals – Premium Grade office rents forecast to remain static
2. Solid fundamentals – positive market outlook 30 Premium Grade office rents forecast to remain static for the forseeable short term Perth CBD supply1 Perth CBD gross effective rents2 Market conditions 2 – Prime vacancy increased by 0.3% points q-o-q to 4.7% in 1Q2013 mainly due to sub-lease availa
Slide 31: Delivering growth
Delivering growth 31 31 Various initiatives to deliver growth in distributable income DPU Uplift in distributable Positive rental income from the reversions redemption of CPPUs Precinct Master Plan and Asset Grow portfolio in Enhancement Singapore and Initiatives at Australia China Square Central Co
Slide 32: 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 — 2QFY13 Earnings Presentation on 6ix