Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — FY2011 Earnings Presentation

33 slides from Frasers Property's earnings presentation, Oct 24, 2011

  1. Slide 1: Frasers Commercial Trust 4QFY11 & Full Year Financial Results

    Frasers Commercial Trust 4QFY11 & Full Year Financial Results 24 October 2011

  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  Results  Portfolio review  Capital management  Moving Forward

  4. Slide 4: Results

    Results 2 GY unten TRUST

  5. Slide 5: Results – FY11 key highlights

     Results – FY11 5 Key highlights:  FY distributable income to Unitholders of S$36.3m, ↑ 5% Y-o-Y  Distribution to CPPU holders of S$18.8m, represents 5.5% distribution yield on the offer price of S$1.0  Lower finance cost in 4Q reflecting the full effect of the partial repayment of the AUD loan

  6. Slide 6: Financial highlights: 4Q NPI rose 5% Y-o-Y

     Results – Financial highlights 6 Net Property Income for 4Q rose by 5% Y-o-Y 1 Jul 2011 – 30 Sep 2011 4Q Y-o-Y Contributing factors (S$ ‘000) FY11 Change (%)  Higher contribution from KeyPoint & Central Park Gross Revenue 30,396 4% was offset by loss of contribution from Cosmo Plaza  Higher cont

  7. Slide 7: 5% rise in distributable income for FY11

     Results – Financial highlights 7 5% rise in distributable income for FY11 1 Oct 2010 – 30 Sep 2011 Y-o-Y FY11 Contributing factors (S$ ‘000) Change (%)  Higher contribution from KeyPoint and Central Park Gross Revenue 119,567 1% plus the strengthening of the A$ was offset by loss of contribution

  8. Slide 8: Recorded DPU growth for the second successive year

     Results – Financial highlights 8 Recorded DPU growth for the second successive years since recapitalisation exercise DPU (Cents) 6.0 5.60 5.75 5.0 1.52 1.55 4.0 1.25 1.38 3.0 2.0 1.60 1.61 1.0 1.20 1.25 0.0 FY10 FY11 1Q 2Q 3Q 4Q

  9. Slide 9: Rising occupancy & rentals translate to higher NPI y-o-y

     Results – Financial highlights 9 Rising occupancy & rentals translate to higher NPI y-o-y Net Property Income (S$m) TOTAL: S$96.017 million FY11 Singapore: S$53.646 million (56%) 3% Australia: S$35.200 million (37%) Japan: S$7.171 million (7%) Driven by Negative Boosted by higher 96.0 93.0 rental

  10. Slide 10: Distribution to be paid on 29 November 2011

     Results – Distribution payment 10 Distribution to be paid on 29 November 2011 Distribution Period 1 April 2011 to 30 September 2011 Distribution of 2.8930 cents per Unit comprising: a) taxable income distribution of 2.0933 cents; Ordinary Unit Distribution Rate b) tax-exempt income distribution of

  11. Slide 11: Portfolio review

    Portfolio review Z FRASERS Ka COMMERCIAL TRUST

  12. Slide 12: Valuations: 1.9% increase in portfolio value

     Portfolio review – Valuations 12 1.9% increase in portfolio value due to upward revaluation Variance from 30 September 2010 Local currency Translation as at Date of Value 30 September 2011 Total variance Total variance Asset valuation (millions) (S$ million) 1 (S$ million) (%) China Square Central

  13. Slide 13: Portfolio occupancy rates up 7.2% to 98.0% y-o-y

     Portfolio review – Occupancy Rates 13 Portfolio occupancy rates up 7.2% to 98.0% y-o-y 1.7% 7.2% 12.7% 100% 100% 7.3% 100% 100% 99.7% 100% 100% 100% 100% 100% 100% 98.0% 98.0% 95.8% 90.8% 88.4% 89.4% 89.4% 83.1% 81.1% China Square 55 Market St KeyPoint Alexandra Central Park Caroline Azabu Aco Gal

  14. Slide 14: Occupancy Rates & WALE

     Portfolio review – Occupancy Rates & WALE 14 Singapore & Australian portfolio contribute > 92.5% of NPI income Geographical occupancy and % of NPI contribution As at Key portfolio statistics 30 September 2011 Ave Occupancy Rates % of NPI Contribution WALE by gross rental income 3.6 years 97.8% 99.

  15. Slide 15: Healthy lease expiry profile

     Portfolio review – Lease expiry profile 15 15 Healthy lease expiry profile Portfolio lease expiry by gross rental income 50% 29.3%* 27.4% 30% 24.1% 15.7% 10% 3.3% FY12 FY13 FY14 FY15 FY16 and beyond -10% Number of leases expiring 100 108 42 9 17 NLA (sq ft) expiring 580,466 264,445 1,169,091 64,31

  16. Slide 16: Master lease expiry presents an opportunity to enhance revenue

     Portfolio review – Lease expiry profile 16 Master lease expiry presents an opportunity to enhance revenue Property Lease Expiry as a proportion of total Portfolio Gross Rental Income 18% 16.0%* 16% 14% 12% 10% 8% 6% 4.4% 3.5% 4% 2.2% 2.2% 2% 1.1% 0% China Square Central 55 Market Street KeyPoint C

  17. Slide 17: Breakdown of FY12 profile on a see through basis

     Portfolio review – Lease expiry profile 17 Breakdown of FY12 profile on a see through basis of CSC underlying leases Property Lease Expiry as a proportion of total Portfolio Gross Rental Income 14% 11.8% 12% 10% 8% 6% 4.1% 4% 3.3% 2.1% 2.0% 2% 1.0% 0% China Square Central 55 Market Street KeyPoint

  18. Slide 18: Organic growth provided by built-in step-up rents

     Portfolio review – Mid-term rent reviews 18 18 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 Proper

  19. Slide 19: Stability of income

     Portfolio review – Stability of income 19 Master lessees/ blue chip tenants with long leases contribute >62% of total gross rental income Master Leases Other Tenants, % (Gross Rental Master Leases, Tenant Lease Expiry Income) 37.7% 36.1% Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 2

  20. Slide 20: KeyPoint – Strong growth momentum

     Portfolio review – Asset updates 20 KeyPoint – Strong growth momentum with 88.8% committed occupancy KeyPoint leasing statistics KeyPoint occupancy rate Property management by KeyPoint Occupancy (S$psf pm) In-house team from May 09 95% $5.4 45,000 88.4% 41,319 90% $5.2 85% 40,000 $5.2 80% $5.0 35,

  21. Slide 21: China Square Central – Well supported by underlying leases

     Portfolio review – Asset updates 21 China Square Central – Well supported by income from underlying leases  Annualised unaudited accounts: Telok Ayer MRT Station – Annualised half year unaudited net operating income for underlying leases at China Square Central exceeds Master Lease net rent of S$

  22. Slide 22: China Square Central – Average passing rent below $6.1 psf pm

     Portfolio review – Asset updates 22 China Square Central – Average passing rent below $6.1 psf pm Lease expiry by gross rental income 60% 56.0% 40% 34.8% 20% 6.6% 0.1% 2.4% 0% FY12 FY13 FY14 FY15 FY16 and beyond Number of leases expiring 56 49 10 1 1 NLA (sq ft) expiring 190,881 113,214 24,323 351

  23. Slide 23: 55 Market Street – Higher signing rents achieved

     Portfolio review – Asset updates 23 55 Market Street – Higher signing rents achieved  Two office leases signed: 55 Market Street leasing statistics – In the quarter, Corporate Serviced and (S$psf pm) Judd Farris have commenced their leases $9.0 6,000 – Occupancy as at 30 September, $8.5 5,500 95.

  24. Slide 24: Alexandra Technopark – Awarded BCA Green Mark Gold

     Portfolio review – Asset updates 24 Alexandra Technopark – Awarded BCA Green Mark Gold  BCA Green Mark Award (Gold): – On 28th September 2011, Alexandra Technopark was awarded with the BCA Green Mark Gold award after due assessment and verification  Accessibility enhanced by the Circle Line: – A

  25. Slide 25: Central Park – Long WALE of 4.3 years

     Portfolio review – Asset updates 25 Central Park – Long WALE of 4.3 years  Robust occupancy: Completed upgrading projects – Occupancy as at 30 September, 99.7% – Long WALE by gross rental income of 4.3 years  Upgrading projects: – Completed projects include Conference Conference Centre Centre, L

  26. Slide 26: Capital management

    Capital management 2. J RISERS TRUST

  27. Slide 27: Debt statistics

    27  Capital Management – Debt statistics 27 Early re-financing opportunity to capitalise on prevailing low interest environment Statistics Borrowings by currency As at 30 September 800 2011 700 116 Total Assets (S$’000) 2,041,686 600 132 Gross Borrowings (S$’000) 747,964 500 Units on Issue and Issu

  28. Slide 28: Interest rate statistics: hedged about 82% of gross borrowings

     Capital Management – Interest rate statistics 28 Hedged about 82% of Gross Borrowings Hedging debt Debt composition – floating vs. hedged As at As a % of: 30 September 2011 Floating, 18.0% SGD Borrowings 75.2% AUD Borrowings 91.9% JPY Borrowings 100.0% Total Gross Borrowings 82.0% Hedged, 82.0% Fo

  29. Slide 29: Moving forward

    Moving forward ZA J iRsERs TRUST

  30. Slide 30: Market outlook - Singapore

     Market outlook - Singapore 30 Office market begins to stabilise  Market conditions 1 FCOT’s Singapore properties average occupancy 99.0% – The office leasing market slow down in Q3 2011 on 97.8% 98.0% 97.4% 97.3% the back of weakening sentiment with negative net 97.0% 97.0% absorption numbers rec

  31. Slide 31: Market outlook - Australia

     Market outlook - Australia 31 Perth Premium Grade Office vacancy rate at 0% as of July 2011  Market conditions 1 Perth CBD average net face rents 1 – The Perth office market continues to be driven by the resources sector and the outlook over the short Net Face Rent (AUD per sqm pa) to medium term

  32. Slide 32: Strategic initiatives delivering results

    32  Delivering growth 32 Strategic initiatives delivering results Portfolio occupancy rates – Rising Occupancy & Rental Boost NPI ↑7.2% Y-o-Y NPI – ↑3.2% Y-o-Y Organic Growth 24.2% of portfolio revenue - Step – up Rents enjoy average 3.9% step-up rental growth Singapore & Australia Potential Saving

  33. Slide 33: 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 — FY2011 Earnings Presentation on 6ix