Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q3 2020 Earnings Presentation
28 slides from Frasers Centrepoint Trust's earnings presentation, July 2020
Slide 1: Frasers Centrepoint Trust Business updates for third quarter ended 30 June 2020
Frasers Centrepoint Trust Business updates for the third quarter ended 30 June 2020
Slide 2: Forward-looking statements disclaimer
◆ 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 results, performanc
Slide 3: Agenda
Section Slide # FCT Overview 4 3Q20 Business Updates 7 Update on COVID-19 situation 12 Summary 18 Appendix 21 3
Slide 4: FCT Overview
◆ SGX-listed REIT that owns and invests primarily in suburban retail properties in Singapore, focused on Singapore domestic necessity spending, F&B and services ◆ FCT’s property portfolio comprises 7 suburban retail properties in Singapore totalling 1.4 million sq ft of NLA. FCT also owns a 36.9% st
Slide 5: FCT Retail Portfolio
FCT Retail Portfolio (~1.4 million sq ft NLA) ◆ Key malls Causeway Point, Northpoint City, Waterway Point are dominant malls in their respective Anchorpoint YewTee Point Causeway Point Northpoint City Waterway Point1 Changi City Point Bedok Point North Wing (FCT), South Wing (FPL) precinct ◆ Wide ca
Slide 6: Growth strategy and track record
Waterway Northpoint 2 Bedok Changi City Yishun 10 Investment Point Investment Future YewTee Point Point Point Retail Podium in ARF (40%-stake) in ARF 2011 2016 2019 Opportunities 2010 2014 2019 2020 Acquisition • Northpoint City South Wing Growth 24.82% in 12.07% • Acquisition opportunities of ARF i
Slide 7: 3Q20 Business Updates
3Q20 Business Updates Waterway Point Waterway Point
Slide 8: Portfolio performance and key events in 3Q20
Portfolio performance Key events in 3Q20 ◆ Announced on 30 June 2020 the acquisition of ◆ More than 95% of the tenants have resumed business after the start of Phase 2 on 19 June 2020. Cinemas reopened on 13 July additional 12.07% interest in ARF for S$197.2 million. The transaction was completed on
Slide 9: Portfolio occupancy by mall
◆ 30 June 2020 Portfolio occupancy: -2.2%-point y-o-y and -1.5%-point q-o-q ◆ Leasing market conditions have weakened and tenants are monitoring the uncertainties arising from the COVID-19 pandemic before committing to new leases Mall Occupancy1 30 Jun 19 30 Sep 19 31 Dec 19 31 Mar 2020 30 Jun 2020
Slide 10: Lease expiry profile and WALE
◆ WALE @ 30 June 2020 stands at 1.69 years by NLA (2Q20: 1.83 years) and 1.61 years by GRI (2Q20: 1.76 years) ◆ Only 4.8% of expiring leases (by NLA), including pre-committed leases, remaining to be renewed in 4Q20 Lease expiry profile as % of Total GRI 32.3%31.7% ■ Expiries as at 31 March 2020 29.6
Slide 11: Debt maturity profile
Highlights Debt maturity profile as at 30 June 2020 • Average debt maturity: 2.3 years S$391m • Gearing @ 30 June 2020: 35% (34.2% of total borrowing) • YTD average cost of borrowing: 2.5% • YewTee Point has been unencumbered S$222m 200 following the repayment of the S$136 (19.4% of total borrowing)
Slide 12: Update on COVID-19 situation
Update on COVID-19 situation Financial Highlights Waterway PointCity Northpoint Waterway Point
Slide 13: COVID-19 timeline in Singapore
7 Feb DORSCON raised to Orange 21 Apr “Circuit Breaker” extended until 1 Jun 2020 13 Jul Cinemas allowed to reopen 23 Jan First confirmed case in 21 Apr Tightened list of essential services (all standalone 1 Jul Tourism businesses to resume in stages; Singapore F&B outlets, hairdressing and barber s
Slide 14: FCT Portfolio Shopper Traffic
FCT Portfolio1 Shopper Traffic Shopper Traffic 2019 2020 3.5 Millions ”normalcy traffic” 3.0 2.5 The gap vs normalcy mainly due to safe distancing and traffic density measures still in place 2.0 Tightened Safe distancing measures 1.5 Start of Circuit Breaker 1.0 0.5 Start of Phase 2 YoY % change for
Slide 15: Operating resilience, tenant support, financial and liquidity position
Operating Resilience Tenant Support Financial & Liquidity Position • Focus on enhancing health and hygiene • Since February 2020, FCT has rolled out various tenant processes to provide shoppers, tenants and support packages that include 1) rental waivers from • Gearing at 35% @ 30 June 2020 stakehol
Slide 16: Piloting delivery services on Frasers Makan Master
Piloting delivery services on Frasers Makan Master • F&B businesses expected to see sustained demand for delivery services, as consumers become accustomed to ordering food online • Frasers piloted in April 2020, the integration of delivery services on its digital F&B concierge, Frasers Makan Master
Slide 17: UV disinfecting robots and enhanced hygiene measures
UV Disinfecting Autonomous Mobile Robots (Sunburst UV) • UV Bot is a smart robot equipped with a ultraviolet-C light module to eradicate viruses • The UV Bots supplement existing manpower in upkeeping hygiene and sanitisation standards in the malls • Following the roll out of the first UV Bot at Nor
Slide 18: Summary
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Slide 19: Suburban retail remains relevant and resilient
Suburban retail remains relevant and resilient Underpinning the resilience of FCT’s suburban retail portfolio Focus on necessity spending • Suburban retail malls continue to remain relevant and resilient as it focuses and convenience shopping on F&B, essential goods and services and value brands. •
Slide 20: Frasers Centrepoint Trust
F~ FRASERS CENTREPOINT TRUST =
Slide 21: Appendix
Appendix 21
Slide 22: Glossary of terms
◆ 3Q19: Third Quarter 2019 ended 30 June 2019 ◆ NAV: Net asset value ◆ 3Q20: Third Quarter 2020 ended 30 June 2020 ◆ NLA: Net Lettable Area ◆ 4Q20: Fourth Quarter 2020 ending 30 September 2020 ◆ NPI: Net Property Income ◆ 1H19: Six months ended 31 March 2019 ◆ NTA: Net Tangible Asset ◆ 1H20: Six mon
Slide 23: 1H20 financial results versus 1H19
• Increase in distributable income mainly from dividends from ARF and 40%-stake in SST (1H19: nil) • 1H20 DPU of 4.67 cents is 24.2% lower y-o-y due mainly to larger unit base and cash retained in 2Q20 Increase / S$’000 1H20 1H19 (Decrease) Gross Revenue 99,920 99,014 0.9% Property Expenses (27,637)
Slide 24: Retail Sales Index and F&B Services Index
Source: Retail Sales Index and Food & Beverage Services Index, May 2020, Department of Statistics, Singapore. URL: https://www.singstat.gov.sg/-/media/files/news/mrsmay2020.pdf 24
Slide 25: Lease expiry profile by mall
FCT Portfolio FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2028 Grand Total No. of leases 80 307 273 184 20 2 1 867 NLA (sq ft) expiring 79,363 396,638 491,718 304,849 78,510 2,699 21,248 1,375,025 Expiries as % of total leased area 5.8% 28.8% 35.8% 22.2% 5.7% 0.2% 1.5% 100.0% Expiries as % of
Slide 26: Trade classifications
Trade Classifications As % of total NLA As % of total GRI (In descending order of % of GRI) F&B 30.2% 37.8% Fashion 12.7% 13.2% Beauty & Health 8.1% 11.7% Services 4.6% 8.6% Household 9.7% 7.6% Supermarket 7.3% 5.3% Leisure/ Entertainment 6.5% 3.1% Books, Music, Arts & Craft, Hobbies 3.8% 2.9% Sport
Slide 27: Top 10 tenants by GRI
Rank by Tenants As % of total NLA As % of total GRI GRI 1 NTUC Fairprice Co-operative1 4.6% 3.4% 2 Diary Farm Group2 3.5% 3.2% 3 Copitiam Pte Ltd3 2.8% 2.7% 4 Metro (Private) Limited4 4.2% 2.6% 5 Courts (Singapore) Limited 2.4% 2.2% 6 Koufu Group 2.2% 2.0% 7 Cotton On Group5 1.6% 2.0% 8 Hanbaobao Pt
Slide 28: Experience matters.
Experience matters.
Frasers Centrepoint Trust — Q3 2020 Earnings Presentation on 6ix