Frasers Property Ltd. · SGX:TQ5
Frasers Property — Investor Presentation (June 2018)
42 slides from Frasers Property's investor presentation, Jun 19, 2018
Slide 1: Frasers Property Limited – Frasers Day Bangkok
Frasers Property Limited Frasers Day Bangkok 19 June 2018 Frasers Property Australia, Melbourne office, Australia
Slide 2: Important notice
Important notice Statements in this presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward- looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual results, p
Slide 3: Contents
Contents Frasers Property Overview Executing Our Business Strategies Looking Ahead In Conclusion Appendix 3
Slide 4: Frasers Property overview
Frasers Property overview Frasers Hospitality, Alexandra Point office, Singapore
Slide 5: Overview of Frasers Property
Overview of Frasers Property Multi-national real estate company with multi-segment expertise ~10,000 S$6.3 Billion S$33.7 billion assets under management1 across 5 asset classes Residential Units Retail Assets Under Three strategic business units – Singapore, Australia, Completed and Settled in
Slide 6: Key business highlights (FY2014 – 2015)
Key business highlights (FY2014 – 2015) Acquisition of Australand in FY2014 Re-listing on SGX in FY2014 6
Slide 7: Key business highlights (FY2015 – 2018)
Key business highlights (FY2015 – 2018) Frasers Hospitality Trust (FY2015) 5 UK Business Parks (FY2017) Completed family of Defensive investments SG REITs with FHT and FLT in UK/ Europe Frasers Log & Ind Trust (FY2016) Geneba (FY2017) Alpha Industrial (FY2018) 7
Slide 8: Reshaped portfolio: diversified across multiple geographies
Reshaped portfolio Diversified across multiple geographies FY2012 1H FY2018 Total assets Total assets $10.4B $29.9B Total assets outside Total assets outside Singapore Singapore 34% 56% Singapore Australia Europe Others 8
Slide 9: Reshaped portfolio: diversified across multiple asset classes
Reshaped portfolio Diversified across multiple asset classes FY2012 1H FY2018 Total Total property assets1 property assets1 $8.6B $26.5B Total investment Total investment properties properties 46% 79% Development Retail Business Parks/Offices Hospitality Logistics/Industrial 1. Property assets compr
Slide 10: Dividend distribution track record
Dividend distribution track record Maintained annual dividend track record of 8.6 Singapore cents per share since listing, one of the highest among listed peers in Singapore FY17 FY16 FY15 Interim Dividend 2.4 Singapore cents 2.4 Singapore cents 2.4 Singapore cents Final Dividend 6.2 Singapore cen
Slide 11: Executing our business strategies
Executing our business strategies Frasers Property Europe, Amsterdam office, The Netherlands
Slide 12: Frasers Property business approach
Frasers Property business approach Achieve sustainable earnings growth through significant Sustainable development pipeline, investment earnings properties, growth and fee income + Sustainable Grow portfolio growth and in a balanced manner across geographies and property segments Balanced portfolio
Slide 13: Core strategy 1: Building platforms
Core strategy 1: Building platforms Scalable platforms across asset classes and geographies Integrated Australia Europe Thailand value chain Frasers Property TICON Industrial Frasers Property Scaled Australia Europe Connection Public Development, Company Limited logistics & property and asset Secure
Slide 14: Core strategy 1: Scalable platforms deliver greater network effect
Core strategy 1: Building platforms Scalable platforms deliver greater network effect United Kingdom Portfolio of 5 quality, strategically-located, and income- Hungary producing business France Switzerland parks Turkey South Korea Spain China Japan Germany, The India Thailand Netherlands & Bahrain
Slide 15: Multi-segment platforms in core markets
Core strategy 1: Building platforms Multi-segment platforms in core markets Singapore Asset Breakdown by Australia Asset Breakdown by Business Segment as at 31 Mar 18 Business Segment as at 31 Mar 18 (S$ Million) (S$ Million) 212.1 449.7 1,550.4 2,418.8 981.2 2,268.6 Total Assets: 13,058.9 Total Ass
Slide 16: Establishing a platform in Thailand
Core strategy 1: Building platforms Establishing a platform in Thailand Well balanced of asset class from residential and commercial / hospitality mixed-use to industrial assets Through FPHT, an investment vehicle, 100% owned by FPL, and through Frasers Assets, 49% owned by FPL Segment Mixed-Use & M
Slide 17: Core strategy 2: Enhancing earnings resilience via recurring income
Core strategy 2: Balanced portfolio Enhancing earnings resilience via recurring income portfolio Recurring VS Non-Recurring Core / Stable Income Operating PBIT Broad and quality tenant base provides certainty on base rent 1 Base rent increase over the years provides cushion to business volatilit
Slide 18: Core strategy 2: Highly visible development cash flows
Core strategy 2: Balanced portfolio Supported by highly visible development cash flows Strong track record of project execution across geographies Development revenues backed by focused strategies – Highly focused product offerings, marketing efforts, and projects in line with market demand driv
Slide 19: Capital productivity optimisation and REIT strategy
Core strategy 3: Active capital management Capital productivity optimisation and REIT strategy Integrated Asset Recycling and Value Generation through REIT Platform Retail Commercial Hospitality Logistics and Industrial Portfolio Value S$2.7bn Portfolio Value S$2.2bn Portfolio Value S$2.4bn Portfoli
Slide 20: Growing with REIT platforms
Core strategy 3: Active capital management Growing with REIT platforms Create asset • Development Win-win relationship • Asset Frasers Property Limited enhancement initiatives o Recycle capital o Benefit from continued ownership of quality investment properties o Maintain portfolio network effect
Slide 21: Active capital recycling via REIT platforms
Core strategy 3: Active capital management Active capital recycling via REIT platforms REIT platforms and active asset management help optimise capital productivity S$ million 1,800 1,600 1,400 1,200 1,000 FLT: 800 Changi City Point: 1,700 1 153 600 Industrial Assets: 400 FHT: Sofitel Sydney: 933 5
Slide 22: Looking Ahead
Looking Ahead Frasers Property Holdings Thailand office, Bangkok, Thailand
Slide 23: Operating in a VUCA environment
Operating in a VUCA environment Volatility, Uncertainty, Complexity, Ambiguity Moderating global economic expansion Normalising monetary policy and rising interest rates Rising oil prices Strengthening USD and rising treasury yield Geopolitical risks – Trade war, Italy/EU Technological a
Slide 24: Building resilience
Building resilience Business Sustainable growth and long-term shareholder value objective Portfolio of quality assets Experience matters – platforms (people, products and services) Returns: Recurring yield + trading profits / capital appreciation Building platforms Balanced portfolio Active ca
Slide 25: Experience matters
Experience matters Consolidates the Changed Group’s business Reflects New unifying idea name to Frasers under a single, multi-segment ‘experience Property Limited powerful, global capabilities matters’ property brand 25
Slide 26: In Conclusion
In Conclusion Seaside Residences, Singapore
Slide 27: Key investment merits
Key investment merits Geographically and Operationally 1 Diversified Platform 4 Proactive Approach to Managing Capital Structure Focus on Growing Stable and 2 Predictable Cash Flows Strong Support From 5 TCC Group Highly Visible Development 3 Cashflows Augmented by Strong Track Record 6 Focus on Sus
Slide 28: Appendix
Appendix Winnersh Triangle, United Kingdom Frasers Hospitality office, Alexandra Point, Singapore
Slide 29: Singapore Residential
Singapore Residential Among the top residential property developers in Singapore Strong Over 20,000 homes built Pre-Sales Two projects currently under development o North Park Residences o Seaside Residences Won the Jiak Kim Street site sold under the Government Land Sale programme in December
Slide 30: Singapore Retail and Commercial
Singapore Retail and Commercial One of the largest retail mall owners and / or operators in Singapore, with established REIT platforms that facilitate efficient capital recycling 111 Retail Malls with ~2.2 million sq ft of Net Lettable Area (“NLA”) across Singapore 112 Office and Business Space
Slide 31: Singapore REIT - Frasers Centrepoint Trust
Singapore REIT - Frasers Centrepoint Trust 41.9%1 stake in a stable retail REIT with six properties 2Q FY18 Portfolio Country Properties Portfolio Value1 Net Property Income Causeway Point Northpoint City North Wing (including Yishun 10 retail podium) Changi City Point Singapore S$2,674.2 million S$
Slide 32: Singapore REIT - Frasers Commercial Trust
Singapore REIT - Frasers Commercial Trust 24.9%1 stake in an office and business space/parks REIT with seven properties 2Q FY18 Portfolio Country Properties Portfolio Value1 Net Property Income 2 office assets – China Square Central, 55 Market Street Singapore S$1,226.0 m (55%) S$10.5 m (42%) 1 busi
Slide 33: Australia: Frasers Property Australia
Australia Frasers Property Australia One of Australia’s leading diversified property groups Development Pipeline Gross Development Value5 17,100 pipeline residential development units1 Strong commercial & industrial and retail Residential 1 S$8.8 b development pipeline Commercial & Industrial 2
Slide 34: Australia REIT - Frasers Logistics & Industrial Trust
Australia REIT - Frasers Logistics & Industrial Trust 20.36%1 stake in logistics and industrial trust with 61 quality assets 2Q FY18 Country Properties Portfolio Value2 Adjusted Net Property Income3 Victoria – 30 logistics and industrial assets New South Wales – 15 logistics and industrial assets Au
Slide 35: Hospitality: Frasers Hospitality
Hospitality Frasers Hospitality Well established hospitality brands with quality assets in prime locations International footprint cannot be easily replicated Scalable operations in more than 80 cities in over 20 countries Breakdown of Total Units by Geography International Footprint NB: Figures
Slide 36: Hospitality REIT - Frasers Hospitality Trust
Hospitality REIT - Frasers Hospitality Trust 23.3% stake in global hotel and serviced residence trust; 15 quality assets1 2Q FY18 Portfolio Country Properties Portfolio Value 1,2,3 Net Property Income 2 Australia 3 hotels , 1 serviced residence S$806.8 m (A$796.8 m) (33%) 41% Singapore 1 hotel, 1 se
Slide 37: Europe & rest of Asia: Germany and the Netherlands
Europe & rest of Asia Germany and the Netherlands Properties in key industrial and logistics markets in Germany and the Netherlands S$1.3 billion1 portfolio focused on strong tenants in key industries in Germany and the Netherlands 14 logistics, 10 light industrial properties and 3 cross dock faci
Slide 38: Europe & rest of Asia: United Kingdom
Europe & rest of Asia United Kingdom Business Parks Business parks in the UK o Four business parks in Thames Valley1 and one in Glasgow Winnersh Chineham Watchmoor Hillington Farnborough Triangle Park Park Park Business Park o Platform of 5.4m sq ft let to over 460 tenants with a portfolio value o
Slide 39: Europe & rest of Asia: China, Thailand, and Vietnam
Europe & rest of Asia China, Thailand, and Vietnam China Thailand Vietnam 9,900 Homes 39.9% Stake Built to Date; Rapidly in Golden Land 3 Projects Growing Property Under Market Development Development 89.5%1 Stake 70.0% Stake S$0.3 Billion in TICON in Q2 Thao Dien, Unrecognised a Commercial and Indu
Slide 40: Debt maturity profile
Debt maturity profile Frasers Property is well-equipped to manage its debt maturity Clear visibility over future cash flows Continuing efforts to extend debt maturities Capital productivity optimisation through REIT platforms and active asset management initiatives S$ million 3,500 3,248 3,300
Slide 41: Group-wide sustainability efforts
Group-wide sustainability efforts Strong focus on sustainability initiatives group-wide Frasers Property was ranked among the Top 10 brands in Singapore by Brand Finance Published its first sustainability report in FPL became a signatory to accordance with the Global the United Nation Global
Slide 42: Capri by Winnersh Fraser, Changi Triangle,
Capri byWinnersh Fraser, Changi Triangle, City, Reading, Singapore UK