Frasers Centrepoint Trust · SGX:J69U

Frasers Centrepoint Trust — FY2015 Earnings Presentation

44 slides from Frasers Centrepoint Trust's earnings presentation, Oct 22, 2015

  1. Slide 1: Frasers Centrepoint Trust Financial Results 4Q & FY2015

    Frasers Centrepoint Trust Financial Results Presentation for 4th Quarter & Full Year FY2015 ended 30 September 2015 22 October 2015 Causeway Point Northpoint Changi City Point Bedok Point YewTee Point Anchorpoint

  2. 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

  3. Slide 3: Contents

     Contents 3  Results slide 4  Balance sheet slide 16  Operational performance slide 21  Northpoint AEI slide 29  Outlook slide 31  Appendix slide 34

  4. Slide 4: Results

    Results

  5. Slide 5: 4Q15 Results Highlights

     Results - Highlights 5 4Q15 Results Highlights Financial performance • 4Q15 DPU of 2.859 cents, up 2.7% year-on-year (4Q14 DPU: 2.785 cents) • Gross Revenue of $47.5 million, up 1.7% year-on-year • Net Property Income of $31.7 million, up 1.2% year-on-year • Net Asset Value per Unit of $1.91 as at

  6. Slide 6: 4Q15 DPU of 2.859 cents, up 2.7% year-on-year

     Results – 4Q15 6 4Q15 DPU of 2.859 cents, up 2.7% year-on-year 4Q15 4Q14 Y-o-Y $’000 Jul 15 to Sep 15 Jul 14 to Sep 14 change Gross Revenue 47,479 46,677 ▲1.7% Property Expenses (15,756) (15,342) ▲2.7% Net Property Income 31,723 31,335 ▲1.2% Income Available for Distribution 25,737 25,506 ▲0.9% Di

  7. Slide 7: FY2015 DPU of 11.608 cents, up 3.8% year-on-year

     Results – FY2015 7 FY2015 DPU of 11.608 cents, up 3.8% year-on-year FY2015 FY2014 Y-o-Y $’000 Oct 14 to Sep 15 Oct 13 to Sep 14 change Gross Revenue 189,242 168,754 ▲12.1% Property Expenses (58,199) (50,658) ▲14.9% Net Property Income 131,043 118,096 ▲11.0% Income Available for Distribution 106,41

  8. Slide 8: Nine consecutive years of steady DPU growth

     Results - DPU 8 Nine consecutive years of steady DPU growth Maintains 100% payout ratio on an annual basis FCT Annual DPU (cents) 11.608 CAGR FY2006 – FY2015: 7.5% 10.93 11.187 10.01 8.20 8.32 7.29 7.51 6.55 6.03* FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 (IPO) * Annual

  9. Slide 9: 4Q15 Revenue up 1.7% year-on-year

     Results - Performance by Properties 9 4Q15 Revenue up 1.7% year-on-year Growth attributed to higher revenue contribution from the 3 larger malls in the portfolio Gross Revenue $ million 4Q15 4Q14 ▲ 1.7% 47.48 46.68 ▲ 6.4% 19.86 18.67 ▲ 2.8% 12.72 12.37 ▲ 2.2% ▼ 26.9% ▼ 0.4% ▼ 3.1% 6.96 6.80 2.19 2

  10. Slide 10: FY2015 Revenue up 12.1% to new-high

     Results - Performance by Properties 10 FY2015 Revenue up 12.1% to new-high $189.0 million Growth attributed to full-year contribution from Changi City Point (acquired in June 2014) and increase in rentals from renewals and new leases which commenced during FY2015 Gross Revenue $ million FY2015 FY2

  11. Slide 11: 4Q15 Property Expenses up 2.7% year-on-year

     Results - Performance by Properties 11 4Q15 Property Expenses up 2.7% year-on-year Increase attributed mainly to ad-hoc maintenance at Northpoint and higher marketing expenses, but partially offset by lower expenses at other malls Property Expenses $ million 4Q15 4Q14 ▲ 2.7% 15.76 15.34 ▼ 7.4% 5.7

  12. Slide 12: FY2015 Property Expenses up 14.9% year-on-year

     Results - Performance by Properties 12 FY2015 Property Expenses up 14.9% year-on-year Increase attributed to mainly to the addition of Changi City Point in the portfolio, higher maintenance expenses and other property expenses, and partially offset by write-back of provisions for property tax and

  13. Slide 13: 4Q15 Net Property Income up 1.2% year-on-year

     Results - Performance by Properties 13 4Q15 Net Property Income up 1.2% year-on-year to $31.7 million Net Property Income (NPI) $ million 4Q15 4Q14 ▲ 1.2% 31.72 31.34 ▲ 13.2% 14.12 12.47 ▼ 5.5% 8.60 9.10 ▲ 0.4% ▲ 9.3% ▼ 39.7% ▼ 21.4% 4.52 4.50 1.10 1.82 2.41 2.20 0.98 1.25 FCT Portfolio Causeway P

  14. Slide 14: FY2015 Net Property Income up 11.0% to new-high

     Results - Performance by Properties 14 FY2015 Net Property Income up 11.0% to new-high $131.0 million Net Property Income (NPI) $ million FY2015 FY2014 ▲ 11.0% (▲1.6% ex CCP) 131.04 118.10 ▲ 4.6% 59.10 56.48 ▲ 0.5% 36.16 35.98 ▼ 20.7% ▲ 1.6% ▲ 2.6% 16.32 5.16^ 4.95 6.23 9.72 9.56 4.80 4.68 FCT Por

  15. Slide 15: Bigger malls to continue to drive portfolio NPI growth

     Results - NPI contribution by Properties 15 Bigger malls to continue to drive portfolio NPI growth Causeway Point, Northpoint and Changi City Point account for 85% of portfolio NPI Percentage of Net Property Income contribution by mall in 2015 Anchorpoint Bedok Point 3.7% 3.8% YewTee Point 7.4% Ch

  16. Slide 16: Balance sheet

    Balance sheet

  17. Slide 17: Strong financial position with gearing level at 28.2%

     Balance sheet 17 Strong financial position with gearing level at 28.2% As at 30 September 15 30 September 14 Gearing ratio1 28.2% 29.3% Interest cover for the quarter2 7.09 times 6.17 times Total borrowings $718 million $739 million % of borrowing on fixed rates or hedged via 75% 75% interest rate

  18. Slide 18: NAV per unit up 3.2% to $1.91

     Balance sheet 18 NAV per unit up 3.2% to $1.91 30 Sep 2015 30 Sep 2014 As at S$’000 S$’000 Non-current assets 2,527,148 2,474,709 Current assets 21,598 47,077 Total assets 2,548,746 2,521,786 Current liabilities (327,669) (153,207) Non-current liabilities (466,533) (669,902) Total liabilities (794

  19. Slide 19: Weighted average debt maturity: 1.6 years

     Balance sheet 19 Weighted average debt maturity @ 30 September 2015: 1.6 years Type of borrowings Aggregate amount $278m (38.7% of total Secured bank borrowings: S$334 million (46.5%) borrowing) Unsecured bank borrowings: S$164 million (22.8%) 14 Medium Term Note: S$220 million (30.7%) $190m (26.5

  20. Slide 20: Appraised valuation of investment properties

     Balance sheet 20 20 Appraised valuation of investment properties Surplus on revaluation of properties amounts to $63.5 million and adjusted for amortization of rent incentives of $0.5 million FY2015 FY2014 Capitalisation Rate(a) Property Valuation Valuation @30.09.2015 Valuer @30.09.2014 Valuer 20

  21. Slide 21: Operational performance

    Operational performance

  22. Slide 22: Overall portfolio occupancy at 96.0%

     Operational performance 22 22 Overall portfolio occupancy at 96.0% • Occupancy of malls generally stable at Causeway Point, Northpoint, YewTee Point and Anchorpoint • Tenant-remixing activity still on-going at Changi City Point and Bedok Point, occupancy at these two malls expected to remain aroun

  23. Slide 23: Average rental reversion of 7.1% for 4Q15

     Operational performance 23 Average rental reversion of 7.1% for 4Q15 4Q15 NLA (sq ft) Change compared to (1 Jul – 30 Sep 2015) No. of renewals As % Mall’s NLA preceding rental rates1 Renewed Causeway Point 18 19,850 4.8% 7.2% Northpoint 9 6,588 2.8% 2.0% Changi City Point Nil Nil n.a. n.a. Bedok P

  24. Slide 24: Average rental reversion of 6.3% for FY2015

     Operational performance 24 Average rental reversion of 6.3% for FY2015 FY2015 NLA (sq ft) Change compared to (1 Oct 14 – 30 Sep 15) No. of renewals As % Mall’s NLA preceding rental rates1 Renewed Causeway Point 74 105,677 25.4% 6.3% Northpoint 78 112,968 48.0% 5.7% Changi City Point 46 54,734 26.4

  25. Slide 25: Maintaining positive rental reversions through economic cycles

     Operational performance 25 Maintaining positive rental reversions through economic cycles FCT rental reversions1 (FY2007 – FY2015) 15.0% 14.0% 12.8% 12.1% 8.6% 7.2% 7.7% 6.5% 6.3% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 1. Change between the average rental rates between the

  26. Slide 26: Portfolio Lease Expiry as at 30 September 2015

     Operational performance 26 Portfolio Lease Expiry as at 30 September 2015 Weighted Average Lease Expiry (WALE) Expiry profile as % of total gross rental income By NLA 1.50 years (3Q15: 1.60 years) 35.2% 29.9% 29.2% By Gross Rent 1.54 years (3Q15: 1.61 years) 5.3% 0.4% Lease expiry1 as at 30 Sep 20

  27. Slide 27: Larger malls account for 83.6% of NLA to be renewed in FY2016

     Operational performance 27 The 3 larger malls account for 83.6% of the NLA to be renewed in FY2016 as at 30 September 2015 Number of Nett Lettable Area as % of leased as % of total gross FY2016 Leases Expiring (NLA) Expiring (sq ft) area of Mall rent of Mall Causeway Point 57 105,021 25.4% 24.1% N

  28. Slide 28: 4Q15 shopper traffic up 8.2% year-on-year

     Operational performance 28 4Q15 shopper traffic up 8.2% year-on-year Both Causeway Point and Northpoint registered double-digit shopper traffic increase and stronger growth than the other four malls during the quarter Shopper Traffic (millions)# ▲ 8.2% yoy 25.1 24.4 24.6 23.2 23.2 4Q14: Jul-Sep 20

  29. Slide 29: Northpoint AEI

    Northpoint AEI

  30. Slide 30: Asset Enhancement Initiative for Northpoint Shopping Centre

     Northpoint AEI 30 Asset Enhancement Initiative (AEI) for Northpoint Shopping Centre  AEI scheduled to commence in Mar 2016 and to complete in phases over 18 months  Mall to remain open for business during course of AEI  AEI will focus on enhancing shopper experience and comfort; boosting the di

  31. Slide 31: Outlook

    Outlook

  32. Slide 32: Outlook for FY2016

     Outlook 32 Outlook for FY2016 The Singapore economy avoided a technical recession in the third quarter, with advance GDP estimates from the Ministry of Trade and Industry showing a growth of 0.1% on a quarter-to-quarter basis, a reversal from the 2.5% contraction in second quarter. Asset enhanceme

  33. Slide 33: 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

  34. Slide 34: Distribution details

     Appendix: Distribution details 34 Distribution details Distribution period 1 July 2015 to 30 September 2015 Distribution per unit 2.859 cents Ex-date 28 October 2015 (Wednesday) Books closure date 30 October 2015 (Friday) at 5.00 pm Payment date 27 November 2015 (Friday)

  35. Slide 35: 4Q15 year-on-year and quarter-on-quarter comparison

     Appendix: Year-on-year and quarter-on-quarter comparison 35 4Q15 year-on-year and quarter-on-quarter comparison Year-on-Year Comparison Quarter-on-Quarter Comparison 4Q15 Change Change 4Q14 3Q15 $’000 (unless otherwise indicated) Inc/(Dec) Inc/(Dec) Gross Revenue 47,479 46,677 1.7% 47,097 0.8% Pro

  36. Slide 36: Portfolio Information as at 30 September 2015

     Appendix: Portfolio Information as at 30 September 2015 36 FRASERS CENTREPOINT TRUST PORTFOLIO INFORMATION AS AT 30 September 2015 Portfolio NLA (sq ft) Causeway Point (CWP) 415,774.0 Northpoint (NP1 and NP2) 235,850.0 Anchorpoint (ACP) 70,988.6 YewTee Point (YTP) 73,669.7 Bedok Point (BPT) 82,713

  37. Slide 37: Portfolio Lease expiry profile as at 30 September 2015

     Appendix: Portfolio Lease expiry profile as at 30 September 2015 37 Lease expiry profile (FYE Sep 30) FY16 FY17 FY18 FY19 FY20 FCT Portfolio No of leases 227 243 214 9 1 Expiries as % Total NLA 30.7% 34.6% 28.2% 5.7% 0.8% NLA (sq ft) Expiring 320,021 360,267 293,586 59,808 8,461 Expiries as % Tota

  38. Slide 38: Trade mix as at 30 September 2015

     Appendix: Trade mix as at 30 September 2015 38 Trade Classifications % NLA % Rents 1 Fashion 15.1% 21.5% 2 Household 8.7% 8.9% 3 Services/Education 8.8% 8.9% 4 Beauty, Hair, Cosmetics, Personal Care 5.3% 7.6% 5 Food & Restaurants 30.2% 34.3% 6 Books, Music, Art & Craft, Hobbies 3.7% 3.2% 7 Sports

  39. Slide 39: Top tenants by gross rental as at 30 September 2015

     Appendix: Top 10 tenants by gross rental as at 30 September 2015 39 No. Tenant % NLA % Rents 1 Cold Storage Singapore (1983) Pte Ltd1 7.6% 5.4% 2 Metro (Private) Limited2 5.6% 3.2% 3 Copitiam Pte Ltd3 3.0% 2.9% 4 Courts (Singapore) Limited 3.3% 2.6% 5 Koufu Pte Ltd 2.8% 2.2% 6 Food Republic Pte Lt

  40. Slide 40: Historical portfolio information by quarter

     Appendix: Historical portfolio information by quarter 40 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 3Q15 4Q15 Gross rent ($ '000) CWP 16,864 17,732 17,509 16,426 17,727

  41. Slide 41: Historical profit and loss statement by quarter

     Appendix: Historical profit and loss statement by quarter 41 FRASERS CENTREPOINT TRUST PROFIT AND LOSS STATEMENT $'000 Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Note: REVENUE 1. Quarter 4Q06 refers to the period 5 July 2006 to 30 Gross

  42. Slide 42: Historical portfolio information by financial year

     Appendix: Historical portfolio information by financial year 42 FRASERS CENTREPOINT TRUST FINANCIAL & OPERATIONAL METRICS Yearly historical data (FYE Sep) FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Note: Yellow cells means property is undergoing AEI Gross Rent ($ '000) CWP 45,674 48,805 50,669 5

  43. Slide 43: Location of FCT's Malls

    Appendix: Location of FCT’s Malls 43 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

  44. Slide 44: Sponsor's retail assets in Singapore

    Appendix: Sponsor’s retail assets 44 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)

Frasers Centrepoint Trust — FY2015 Earnings Presentation on 6ix