Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q2 FY2015 Earnings Presentation
39 slides from Frasers Centrepoint Trust's earnings presentation, Apr 22, 2015
Slide 1: Financial Results Presentation for 2nd Quarter FY2015
Frasers Centrepoint Trust Financial Results Presentation for 2nd Quarter FY2015 ended 31 March 2015 22 April 2015 Causeway Point Northpoint Changi City Point Bedok Point YewTee Point Anchorpoint
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 12 Operational performance slide 16 Outlook slide 22 Appendix slide 24
Slide 4: Results
Results
Slide 5: 2Q15 Results Highlights
Results 5 2Q15 Results Highlights Financial performance • 2Q15 DPU of 2.963 cents, up 3% year-on-year • Gross revenue of $47.5 million, up 16% year-on-year • Net property income of $33.5 million, up 14% year-on-year • Gearing level at 28.6%, down from 29.3% in the previous quarter • Net Asset Valu
Slide 6: 2Q15 DPU at 2.963 cents, highest 2Q DPU ever
Results 6 2Q15 DPU at 2.963 cents, highest 2Q DPU ever 3 months ended 31 March Y-o-Y 2Q15 2Q14 $’000 change Gross Revenue 47,487 40,965 ▲15.9% Property Expenses (13,941) (11,652) ▲19.6% Net Property Income 33,546 29,313 ▲14.4% Income Available for Distribution 27,156 23,806 ▲14.1% Distribution to
Slide 7: 1H15 DPU at 5.713 cents, up 6.2% yoy
Results 7 1H15 DPU at 5.713 cents, up 6.2% yoy 6 months ended 31 March Y-o-Y 1H15 1HQ14 $’000 change Gross Revenue 94,665 80,855 ▲17.1% Property Expenses (28,221) (23,225) ▲21.5% Net Property Income 66,444 57,630 ▲15.3% Income Available for Distribution 53,754 46,520 ▲15.6% Distribution to Unithol
Slide 8: Growth driven by addition of Changi City Point and steady growth from the rest
Results 8 Growth driven by addition of Changi City Point and steady growth from the rest of the malls Gross Revenue S$ m ▲ 15.9% 2Q15 2Q14 ▲ 0.8% (ex CCP) 47.49 40.96 ▲ 0.4% 20.74 20.65 ▲ 1.0% 12.54 12.42 ▼2.8% ▲ 3.4% ▲ 2.6% 6.21 2.31 2.38 3.49 3.37 2.20 2.14 FCT Portfolio Causeway Point Northpoin
Slide 9: Higher expenses due mainly to the addition of Changi City Point
Results 9 Higher expenses due mainly to the addition of Changi City Point Property Expenses S$ m 2Q15 2Q14 ▲ 19.6% (▲ 0.2% ex CCP) 13.94 11.65 ▲ 5.4% 5.44 5.16 ▼ 7.8% 3.27 3.54 ▼ 1.3% ▲ 14.6% 2.26 ▼ 10.6% 1.04 1.05 1.08 0.94 0.85 0.95 FCT Portfolio Causeway Point Northpoint Changi City Point Bedok
Slide 10: 2Q15 NPI up 14.4% to record-high of $33.5 million
Results 10 2Q15 NPI up 14.4% to record-high of $33.5 million Net Property Income (NPI) S$ m 2Q15 2Q14 ▲ 14.4% ▲ 1.0% (ex CCP) 33.55 29.31 ▼ 1.3% 15.30 15.49 ▲ 4.6% 9.28 8.87 ▼ 1.0% ▼ 3.9% ▲ 13.2% 3.95 2.41 2.43 1.27 1.32 1.35 1.19 FCT Portfolio Causeway Point Northpoint Changi City Point Bedok Poi
Slide 11: Greater income diversification of FCT's portfolio
Results 11 Greater income diversification of FCT’s portfolio Causeway Point, Northpoint and Changi City Point account for 85% of portfolio NPI Percentage of Net Property Income Percentage of Net Property Income contribution by mall in 2Q15 contribution by mall in 2Q14 Anchorpoint Bedok Point Ancho
Slide 12: Balance sheet
Balance sheet
Slide 13: NAV per unit improved to $1.86
Balance sheet 13 NAV per unit improved to $1.86 31 Mar 2015 30 Sep 2014 As at S$’000 S$’000 Non-current assets 2,472,549 2,474,709 Current assets 23,718 47,077 Total assets 2,496,267 2,521,786 Current liabilities (124,921) (153,207) Non-current liabilities (669,405) (669,902) Total liabilities (79
Slide 14: Cost of borrowings remains stable and gearing level remains low
Balance sheet 14 Cost of borrowings remains stable and gearing level remains low As at 31 March 15 30 September 14 Gearing ratio1 28.6% 29.3% Interest cover for the quarter2 6.28 times 6.17 times Total borrowings $714 million# $739 million % of borrowing on fixed rates or 87% 75% hedged via intere
Slide 15: Weighted average debt maturity: 2.08 years
Balance sheet 15 Weighted average debt maturity @ 31 March 2015: 2.08 years Type of borrowings Aggregate amount $264m Secured bank borrowings: S$334 million (46.8%) (37.0% of total Unsecured bank borrowings: S$150 million (21.0%) borrowing) Medium Term Note: S$230 million (32.2%) $190m (26.6% of t
Slide 16: Operational performance
Operational performance
Slide 17: Overall portfolio occupancy improved to 97.1%
Operational performance 17 Overall portfolio occupancy improved to 97.1% • Occupancy improved at Northpoint, Bedok Point and YewTee Point • Tenant-mix change on-going at Changi City Point, resulting in some transitional vacancy Mall Occupancy 31 Mar 14 30 Jun 14 30 Sep 14 31 Dec 14 31 Mar 15 Cause
Slide 18: 2Q15 average rental reversion at 3.8%, 1H2015 reversion at 6.6%
Operational performance 18 2Q15 average rental reversion at 3.8%, 1H2015 reversion at 6.6% • Sharp negative reversion at Bedok Point due mainly to one specific lease renewal • Excluding Bedok Point, the 2Q15 rental reversion was 5.2% and YTD 1H2015 was 7.3% 2Q15 NLA (sq ft) Change compared to (1 J
Slide 19: 16.1% of leases to be renewed for remaining 6 months in FY2015
Operational performance 19 16.1% of leases to be renewed for remaining 6 months in FY2015 Weighted Average Lease Expiry (WALE) Expiry profile as % of total gross rental income By NLA 1.62 years (1Q15: 1.70 years) 33.9% 27.9% By Gross Rent 1.59 years 16.1% 18.0% (1Q15: 1.65 years) 4.1% Lease expiry
Slide 20: Remaining renewals mainly at Northpoint, Causeway Point and YewTee Point
Operational performance 20 Remaining renewals mainly at Northpoint, Causeway Point and YewTee Point As at 31 March 2015 For 6 months remaining Number of Nett Lettable Area as % of leased as % of total gross in FY2015 Leases Expiring (NLA) Expiring (sq ft) area of Mall rent of Mall Causeway Point 4
Slide 21: 2Q15 shopper traffic (excluding Changi City Point) up 2% Y-o-Y
Operational performance 21 2Q15 shopper traffic (excluding Changi City Point) up 2% Y-o-Y Shopper traffic growth driven mainly by Causeway Point Shopper Traffic (millions)# 25 24.4 24 23.2 23.2 FCT portfolio including CCP* 23 21.7 22 20.9 20.8 21 20.5 20.4 FCT portfolio, excluding CCP Up 2% year-o
Slide 22: Outlook
Outlook
Slide 23: FCT's performance expected to remain sustainable
Outlook 23 FCT’s performance expected to remain sustainable While concerns persist over manpower shortage and slowing retail sales growth, the rising average household income and low unemployment rate will continue to underpin consumer spending, which will benefit FCT’s well-located suburban mal
Slide 24: 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 25: Distribution details
Appendix: Distribution details 25 Distribution details Distribution period 1 January 2015 to 31 March 2015 Distribution per unit 2.963 cents Ex-date 28 April 2015 (Tuesday) Books closure date 30 April 2015 (Thursday) at 5.00 pm Payment date 29 May 2015 (Friday)
Slide 26: 2Q15 year-on-year and quarter-on-quarter comparison
Appendix: Year-on-year and quarter-on-quarter comparison 26 2Q15 year-on-year and quarter-on-quarter comparison Year-on-Year Comparison Quarter-on-Quarter Comparison 2Q15 Change Change 2Q14 1Q15 $’000 (unless otherwise indicated) Inc/(Dec) Inc/(Dec) Gross Revenue 47,487 40,965 15.9% 47,178 0.7% Pro
Slide 27: FCT Quarterly DPU
Appendix: FCT Quarterly DPU 27 FCT Quarterly DPU DPU (¢) 2.98 3.022 2.963 2.85 2.88 2.875 2.75 2.70 2.50 2.40 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15
Slide 28: Portfolio Information as at 31 March 2015
Appendix: Portfolio Information as at 31 March 2015 28 FRASERS CENTREPOINT TRUST PORTFOLIO INFORMATION AS AT 31 March 2015 Portfolio NLA (sq ft) Causeway Point (CWP) 416,581 Northpoint (NP1 and NP2) 235,850 Anchorpoint (ACP) 70,989 YewTee Point (YTP) 73,670 Bedok Point (BPT) 82,713 Changi City Poin
Slide 29: Portfolio Lease expiry profile as at 31 March 2015
Appendix: Portfolio Lease expiry profile as at 31 March 2015 29 Lease expiry profile (FYE Sep 30) FY15 FY16 FY17 FY18 FY19 FCT Portfolio No of leases 111 220 232 142 6 Expiries as % Total NLA 13.9% 28.2% 33.7% 19.9% 4.3% NLA (sq ft) Expiring 146,389 297,899 355,113 209,378 45,792 Expiries as % Tota
Slide 30: Trade mix as at 31 March 2015
Appendix: Trade mix as at 31 March 2015 30 Trade Classifications % NLA % Rents 1 Fashion 15.3% 22.4% 2 Household 8.7% 7.4% 3 Services/Education 8.7% 8.5% 4 Beauty, Hair, Cosmetics, Personal Care 5.3% 7.5% 5 Food & Restaurants 30.5% 34.2% 6 Books, Music, Art & Craft, Hobbies 3.8% 3.3% 7 Sports Appar
Slide 31: Top 10 tenants by gross rental as at 31 March 2015
Appendix: Top 10 tenants by gross rental as at 31 March 2015 31 No. Tenant % NLA % Rents 1 Cold Storage Singapore (1983) Pte Ltd1 7.6% 5.1% 2 Metro (Private) Limited2 5.6% 3.2% 3 Copitiam Pte Ltd3 3.0% 2.8% 4 Courts (Singapore) Limited 3.3% 2.6% 5 Koufu Pte Ltd 2.8% 2.2% 6 Food Republic Pte Ltd 1.6
Slide 32: Average rental reversion for FY2014 by property
Appendix: Average rental reversion for FY2014 by property 32 Average rental reversion for FY2014 by property FY2015 NLA (sq ft) Change compared to (1 Oct 2013 – 30 Sep 2014) No. of renewals As % Mall’s NLA preceding rental rates1 Renewed Causeway Point 82 153,975 37.0% 11.3% Northpoint 41 36,287 15
Slide 33: Rental reversion data for previous years
Appendix: Rental reversion data for previous years 33 % 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% 6.5% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
Slide 34: Historical portfolio information by quarter
Appendix: Historical portfolio information by quarter 34 FRASERS CENTREPOINT TRUST FINANCIAL & OPERATIONAL METRICS Note: Yel l ow cel l s mea ns property i s undergoi ng AEI Quarterly historical data 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Gross rent ($ '000) CWP 16,864 17,732 17,509 16,426 17,727 17,900 NP
Slide 35: Historical profit and loss statement by quarter
Appendix: Historical profit and loss statement by quarter 35 FRASERS CENTREPOINT TRUST PROFIT AND LOSS STATEMENT $'000 Quarter Quarter Quarter Quarter Quarter Quarter 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 REVENUE Gross rent 35,304 35,839 36,843 41,467 41,773 41,839 Other revenue 4,586 5,126 4,379 5,210 5,4
Slide 36: Historical portfolio information by financial year
Appendix: Historical portfolio information by financial year 36 FRASERS CENTREPOINT TRUST FINANCIAL & OPERATIONAL METRICS Yearly historical data (FYE Sep) FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Note: Yellow cells means property is undergoing AEI Gross Rent ($ '000) CWP 45,674 48,805 50,669 50,633
Slide 37: Location of FCT's Malls
Appendix: Location of FCT’s Malls 37 Anchorpoint YewTee Point Causeway Point Northpoint Bedok Point Changi City Point Woodlands Yishun BUS BUS YewTee Legend : FCT’s properties : Sponsor’s pipeline asset Expo Bedok Queenstown BUS The Centrepoint
Slide 38: Valuation of Properties
Appendix: Valuation of Properties 38 FCT Portfolio as at 30 September 2014 Property Valuation Capitalisation Rate as indicated @30.09.2014 by property valuers (b) ($ million) Causeway Point 1058.0 5.35% Northpoint 655.0 5.25% Bedok Point 120.0 5.50% YewTee Point 168.0 5.50% Anchorpoint 93.0 5.50% C
Slide 39: Sponsor's retail assets in Singapore
Appendix: Sponsor’s retail assets 39 Sponsor’s retail assets in Singapore 13 retail malls in Singapore managed by Frasers Centrepoint Limited, including 6 malls in FCT (1): FCL owns 1/3 proportionate (1) share of Waterway Point, the commercial component of a mixed development in Punggol. (2) (3) (2
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