Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — UBS ASEAN Conference 2012

45 slides from Frasers Property's conference presentation, Sep 4, 2012

  1. Slide 1: Frasers Commercial Trust UBS ASEAN Conference

    Frasers Commercial Trust UBS ASEAN Conference 3-4 September 2012

  2. 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

  3. Slide 3: Contents

    Contents 3  FCOT overview  FCOT’s reshaping strategy  FCOT’s investment proposition  Supplementary materials

  4. Slide 4: FCOT overview

    FCOT overview Be. <= FRASERS L COMMERCIAL TRUST

  5. Slide 5: Where we are – geographic and asset

     Where we are – geographic and asset 55 FCOT offers balanced exposure to 9 quality properties with Singapore as the anchor Properties Portfolio Value 1 Portfolio Net Property Income 1 3 office assets Tokyo SINGAPORE 1 business space asset S$1,325.0 million, (64%) S$40.9 million, (54%) Osaka AUSTRAL

  6. Slide 6: Portfolio details – Singapore & Australia focus

     Portfolio details – Singapore & Australia focus 6 Focus on key markets of Singapore and Australia Asset values 1 Net property income TOTAL: S$2,064.9 million TOTAL: S$76.034 million YTD FY12  Singapore: S$1,325.0 million (64%) Singapore: S$40.944 million (54%)  Australia: S$618.0 million (30%)

  7. Slide 7: Results – 3QFY12 financial highlights

     Results – 3QFY12 financial highlights 7 Higher NPI boosted by China Square Central and Caroline Chisholm Centre Net Property Income (S$m) TOTAL: S$26.641 million 3Q FY12 7% Singapore: S$13.777 million (52%) Australia: S$11.181 million (42%) Japan: S$1.683 million (6%) 26.6 Increase in Boosted by t

  8. Slide 8: Results – financial highlights: growing distributions

     Results – financial highlights 8 Growing distributions DPU (Cents) 7.0 6.0 5.75 5.60 4.94 5.0 1.55 1.52 4.0 1.70 1.25 1.38 3.0 1.74 2.0 1.60 1.61 1.0 1.20 1.25 1.51 0.0 FY10 FY11 FY12 1Q 2Q 3Q 4Q 1 See 3QFY12 Financial Statements for further information.

  9. Slide 9: Performance – total return

     Performance – total return 9 FCOT outperformed indices in the last 12 months 140% FCOT FTSE STI FTSE REIT 133.1% 130% FCOT Total Return1 = 43.0% 120% 114.8% 110% 108.9% 100% 90% 80% Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Unit price from 30 August 2011 t

  10. Slide 10: FCOT's reshaping strategy

    FCOT’s reshaping strategy = FRASERS L COMMERCIAL TRUST

  11. Slide 11: Portfolio reshaping – track record

     Portfolio reshaping – track record 11 Portfolio reshaping strategy has yielded positive results Cosmo Plaza ↓ Gearing by 1.8% January 2011 Australian Wholesale Property Fund ↑ DPU by 4.6% May 2011 50% Caroline Chisholm Centre ↑ DPU by 5.6% April 2012 Divestment Acquisition

  12. Slide 12: Portfolio reshaping – KeyPoint

     Portfolio reshaping – KeyPoint 12 Proposed sale of KeyPoint – At 26.3% above valuation  Divestment details1 – Sale consideration of S$360.0 million is 26.3% or S$75.0 million above current use valuation2 – Gain of approximately S$72.8 million based on the estimated net sale proceeds, – Completion

  13. Slide 13: Portfolio reshaping – deploy proceeds to generate higher yield

     Portfolio reshaping – deploy proceeds to generate higher yield 13 Use of the estimated net sale proceeds – approximately S$357.8 million  Manager intends to apply the estimate net sale proceeds towards one or more of the following: 1. Reducing the debt liabilities of FCOT and/or its subsidiaries

  14. Slide 14: Pro forma financial effects of the Sale: DPU

     Portfolio reshaping – deploy proceeds to generate higher yield 14 Pro forma financial effects of the Sale  Scenarios for illustrative purpose only1 1. The partial prepayment of the S$500.0 million Term Loan Facility (“Scenario 1”); 2. The funding of the redemption of 50% of the issued Series A CP

  15. Slide 15: Pro forma financial effects of the Sale: Unitholders' funds per Unit

     Portfolio reshaping – deploy proceeds to generate higher yield 15 Pro forma financial effects of the Sale  Pro forma Unitholders’ Funds per Unit1 Pro forma Pro forma Pro forma 30 September 2011 Audited (Scenario 1) (Scenario 2) (Scenario 3) Unitholders’ funds (S$’000) 877,626 943,795 946,969 925,

  16. Slide 16: FCOT's investment proposition

    FCOT’s investment proposition

  17. Slide 17: Contents – FCOT's investment proposition

     FCOT’s investment proposition Contents 17 17 1. Stability of income  Strong lease expiry profile  Stable occupancy and WALE  Quality tenants and master lease  Organic growth 2. Solid fundamentals 3. Growth strategy

  18. Slide 18: Stability of Income – strong lease expiry profile

    1. Stability of Income – strong lease expiry profile 18 Healthy lease expiry profile Post-sale of KeyPoint would increase the level of income expiring in FY16 & beyond Portfolio lease expiry by gross rental income 45% Include KeyPoint Exclude KeyPoint 40% 38% 34% 35% 30% 28% 27% 25% 19% 17% 20% 15%

  19. Slide 19: Breakdown of FY12 & FY13 lease expiry profile

    1. Stability of Income – strong lease expiry profile 19 Breakdown of FY12 & FY13 profile Property Lease Expiry as a proportion of total Portfolio Gross Rental Income FY12 exclude KeyPoint FY13 exclude KeyPoint 9% 7.9% 8% 7% 6.6% 6% 4.9% 5% 4% 3% 2.1% 2.2% 2% 1.4% 1.6% 0.7% 0.7% 1% 0% China Square Ce

  20. Slide 20: Stable occupancy and WALE

    1. Stability of Income – stable occupancy and WALE 20 WALE lengthened to 4.2 years following the acquisition of Caroline Chisholm Centre Geographical occupancy and % of NPI contribution As at Key portfolio statistics 30 June 2012 Ave Occupancy Rates % of NPI Contribution WALE by gross rental income

  21. Slide 21: Stability of Income – quality tenants and master lease

    1. Stability of Income – quality tenants and master lease 21

  22. Slide 22: Master lessee/blue chip tenants with long leases

    1. Stability of Income – quality tenants and master lease 22 Master lessee/ blue chip tenants with long leases contribute >49% of total gross rental income Master Lease Master Lease, Other Tenants, 16.9% % (Gross Rental Tenant Lease Expiry Income) 50.9% Alexandra Technopark – Orrick Investments Pte

  23. Slide 23: Stability of Income – organic growth

    1. Stability of Income – organic growth 23 Organic growth provided by built-in step-up rents FY12 - Fixed % lease rent reviews FY12 – 15 - Portfolio fixed % reviews GROSS RENTAL INCOME Portfolio gross rental income Weighted average fixed step % Average Total Property Leases step-up rent Property Por

  24. Slide 24: Contents – FCOT's investment proposition

     FCOT’s investment proposition Contents 24 24 1. Stability of income 2. Solid fundamentals  Natural hedge in place  Enhanced debt maturity profile  Borrowings hedged  Positive market outlook  Growing demand  Asset enhancement initiatives  Pipeline assets 3. Growth strategy

  25. Slide 25: Natural hedge in place

    25 2. Solid fundamentals – natural hedge in place 25 A portion of the investment in overseas assets is hedged naturally Statistics Borrowings and assets by currency As at 30 June 1,500 2012 1,325 Total Assets (S$’000) 2,179,983 Gross Borrowings (S$’000) 861,354 1,000 S$ million Units on Issue and Is

  26. Slide 26: Enhanced debt maturity profile

    26 2. Solid fundamentals – enhanced debt maturity profile 26 Early refinancing of S$500m term loan facility at a lower interest margin Debt Maturity Profile New SGD Facility - Interest rate for S$320m three-year loan is SOR + 1.55% margin - Interest rate for S$185m five-year loan is SOR + 1.83% marg

  27. Slide 27: Borrowings hedged

    2. Solid fundamentals – borrowings hedged 27 Hedged about 79% of Gross Borrowings Hedging debt Debt composition – floating vs. hedged As at As a % of: 30 June 2012 Floating, 20.8% Total Gross Borrowings 79.2% Hedged, 79.2% For quarter ended 30 June 2012

  28. Slide 28: Positive market outlook

    2. Solid fundamentals – positive market outlook 28 Singapore office market recorded positive net absorption in Q2 2012  Market conditions 1 Singapore office new supply 2 – Office demand in Q2 2012 beat expectations with  Historical net supply 3,500 stronger leasing performance and positive net  F

  29. Slide 29: Singapore office rents trend

    2. Solid fundamentals – positive market outlook 29 Singapore office rents trend Singapore Grade A and Grade B office rents 1 $20.0 18.65 18.80 18.80 Rent (S$ psf / 2012 Q2 Previous High Change % month) $18.0 17.15 Grade A Rent 10.10 18.80 (08Q3) -46.3% $16.0 14.90 15.00 Grade B Rent 7.21 11.83 (08Q1

  30. Slide 30: Perth CBD premium grade office market

    2. Solid fundamentals – positive market outlook 30 Premium Grade office market net rent between AUD 750 to AUD 950 Perth CBD supply 1 Perth CBD average net face rents 1 Net Face Rent (AUD per sqm pa)  Market conditions 1 – Tightest CBD market in Australia with above average demand – Forecast net fa

  31. Slide 31: Growing demand – robust leasing activities

    2. Solid fundamentals – growing demand 31 Robust leasing activities within the portfolio  55 Market Street, Singapore: Alexandra Technopark – New tenants ATC Trustees and Helios Lab – Boosted the occupancy level to 100.0% from 95.8% a quarter ago  Alexandra Technopark, Singapore: – Property under

  32. Slide 32: China Square Central – NPI grew 11%

    2. Solid fundamentals – growing demand 32 China Square Central – NPI grew 11% following the expiry of the master lease  Tenancy activity: China Square Central – Cerebos Pacific renewed and expanded its lease for another 5 years, representing approximately 9.7% of net lettable area – Other major ten

  33. Slide 33: China Square Central – income expiring in FY16 and beyond

    2. Solid fundamentals – growing demand 33 China Square Central – income expiring in FY16 and beyond increase to 13.7% Lease expiry by gross rental income 80% Boosted by 60% Cerebos Pacific’s renewal and expansion of lease 40% 34.8% Committed 4.9% 20% 12.6% 13.7% 24.4% 9.6% 0% FY12 FY13 FY14 FY15 FY1

  34. Slide 34: Asset enhancement initiatives – covered link way

    2. Solid fundamentals – asset enhancement initiatives 34 Future Telok Ayer MRT Station Artist’s impression  China Square Precinct Master Plan – Covered Link Way – Collaborative effort between Far East Square, China Square Central & Great Eastern Centre – Create a vibrant retail, entertainment and h

  35. Slide 35: Asset enhancement initiatives – China Square Precinct

    2. Solid fundamentals – asset enhancement initiatives 35 Artist’s impression  China Square Precinct Master Plan – Building markers, directional & circulation signs and locally-commissioned building mural artwork – Sustained line-up of activities, events and promotions is in the works – Project is t

  36. Slide 36: Asset enhancement initiative – main tower

    2. Solid fundamentals – asset enhancement initiatives 36 Artist’s impression  Asset enhancement initiative – main tower (18 Cross Street) – Upgrade main tower block office lobby and common areas – Complement the proposed covered link way – Capitalise on the opening of the future Telok Ayer MRT stat

  37. Slide 37: Pipeline assets

    2. Solid fundamentals – pipeline assets 37 FCOT’s developer–sponsor, providing quality assets for sustainable growth pipeline Property Alexandra Point Valley Point 20-storey office tower with a two-storey Description 24-storey office building retail podium 222,246 sq ft (20,647 sq m) Net Lettable Ar

  38. Slide 38: Contents – Growth strategy

     FCOT’s investment proposition Contents 38 38 1. Stability of income 2. Solid fundamentals 3. Growth strategy  Strategic initiatives

  39. Slide 39: Growth strategy – strategic initiatives

    3. Growth strategy – strategic initiatives 39 Strategic initiatives delivering results  Savings of approximately 1% in Refinancing for the S$500 million SGD Facility interest margin Acquisition of Caroline Chisholm Centre Boosted NPI & lengthened WALE  China Square Central AEI In progress Sale of

  40. Slide 40: Supplementary materials

    Supplementary materials

  41. Slide 41: Portfolio details (1)

     Portfolio details (1) 41 Property China Square Central 55 Market Street KeyPoint Alexandra Technopark Central Park1 18,20 & 22 Cross Street, 438A/438B Alexandra 152-158 St Georges 55 Market Street, 371 Beach Road, Address China Square Central Road Terrace Perth Singapore 048941 Singapore 199597 Si

  42. Slide 42: Portfolio details (2)

     Portfolio details (2) 42 Caroline Chisholm Galleria Otemae Ebara Techno-Serve Property Azabu Aco Building Centre Building Headquarters Building Number 2, Tanimachi 2- Block 4 Section 13, Number 32-7, Higashi- Number 1-1, Haneda 5 chome, Address Tuggeranong ACT 2900, Azabu 2-chome, Chome, Chuo-ku,

  43. Slide 43: Results – Financial highlights: 3QFY12

     Results – Financial highlights 43 26% growth in distributable income in 3QFY12 1 Apr 2012 – 30 Jun 2012 3Q Y-o-Y Contributing factors (S$ ‘000) FY12 Change (%)  Higher contribution from Caroline Chisholm Centre Gross Revenue 35,745 17% due to acquisition and direct leases with underlying tenants

  44. Slide 44: Results – Financial highlights: YTD FY12

     Results – Financial highlights 44 YTD FY12 DPU rose by 17% Y-o-Y 1 Oct 2011 – 30 Jun 2012 YTD Y-o-Y Contributing factors (S$ ‘000) FY12 Change (%)  Higher contribution from Central Park, Caroline Gross Revenue 97,280 9% Chisholm Centre due to acquisition and direct leases with underlying tenants

  45. Slide 45: 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

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