Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — Q1 FY2016 Earnings Presentation

35 slides from Frasers Property's earnings presentation, Jan 20, 2016

  1. Slide 1: Frasers Commercial Trust 1QFY16 Financial Results

    Frasers Commercial Trust 1QFY16 Financial Results 20 January 2016

  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  Forecast vs. actual results for 357 Collins Street  Portfolio review  Capital management  Moving Forward

  4. Slide 4: Results

    Results Z J Pease TRUST

  5. Slide 5: Results – Key highlights

     Results – Key highlights 5  1QFY16 bolstered by the better performance of Alexandra Technopark and first full quarter contribution from 357 Collins Street 1 Higher contribution from Alexandra Technopark:  Higher rental rates achieved  Upfront rental income received1  Lower utilities expenses 2

  6. Slide 6: Results – 1QFY16 Financial highlights

     Results – 1QFY16 Financial highlights 6  18% rise in distributable income for 1QFY16 1 Oct 2015 – 31 Dec 1QFY16 Y-o-Y Contributing factors 2015 (S$ ‘000) Change (%)  Higher revenue contribution from Alexandra Technopark due to higher rental rates and upfront rental income received from a pre-ter

  7. Slide 7: Results – 1QFY16 Financial highlights

     Results – 1QFY16 Financial highlights 7 Higher contribution from Alexandra Technopark and first full quarter contribution from 357 Collins Street TOTAL: S$29.4 million 1QFY16 Net Property Singapore: S$16.1 million (55%) Income (S$m) Australia: S$13.3 million (45%)

  8. Slide 8: Results – Financial highlights

     Results – Financial highlights 8  Continuous DPU growth in 1QFY16 2.0% DPU (Cents)

  9. Slide 9: Results – Distribution payment

     Results – Distribution payment 9 DRP will be applied for the distribution for 1QFY16 Distribution Period 1 October 2015 to 31 December 2015 Distribution of 2.5100 cents per Unit comprising: a) taxable income distribution of 1.8399 cents; and Ordinary Unit Distribution Rate b) tax-exempt income dis

  10. Slide 10: Forecast vs actual results for 357 Collins Street

    Forecast vs actual results for 357 Collins Street

  11. Slide 11: Forecast vs actual results for 357 Collins Street in 1QFY16

     Results - Forecast vs actual results for 357 Collins Street in 1QFY16 11 Actual net property income of 357 Collins Street surpassed forecast by 14% ^ Includes the reimbursement of rent-free periods of A$0.3 million each for the forecast and actual results for 1QFY16. * Profit forecast of 357 Colli

  12. Slide 12: Portfolio review

    Portfolio review FRASERS COMMERCIAL

  13. Slide 13: Portfolio review – Valuation

     Portfolio review – Valuation 13  Balanced portfolio consisting of Singapore and Australian properties  No one property consist of more than 29% of portfolio value Singapore Perth Canberra Singapore $ 1,209.0 62% Melbourne Australia $ 753.7 38% Total $ 1,962.7 100% As at 31 December 2015. Exclude

  14. Slide 14: Portfolio review – Occupancy Rates & WALE

     Portfolio review – Occupancy Rates & WALE 14  Healthy average occupancy rate of 92.9%  Healthy WALE of 3.3 years Geographical occupancy and % of NPI contribution As at Key portfolio statistics 31 December 2015 Ave Occupancy 92.9% Portfolio WALE by gross 3.3 years rental income As at 31 December

  15. Slide 15: Portfolio review – Lease expiry profile

     Portfolio review – Lease expiry profile 15 15  Proactive leasing reduced lease expiries in FY18 and lengthened lease expiry profile  Well spread lease expiry provides income stability Portfolio lease expiry by gross rental income Portfolio lease expiry by gross rental income Number of leases exp

  16. Slide 16: Portfolio review – Lease expiry profile

     Portfolio review – Lease expiry profile 16 FY16 – Low lease expiries for the Singapore office properties Property Lease Expiry in FY16 as a proportion of Portfolio Gross Rental Income  Low lease expiry of 7.6% in year of high office supply  New supply are mainly in Grade A/ Premium Grade space 2

  17. Slide 17: Portfolio review – Rental reversions

     Portfolio review – Rental reversions 17 Healthy positive weighted average rental reversions in Singapore properties for new and renewed leases that commenced in 1QFY161 China Square Central: Alexandra Technopark: 357 Collins Street: +10.3% +5.0% Retail: -4.1%2 Office: NA New lease signed for offic

  18. Slide 18: Portfolio review – Robust leasing activities

     Portfolio review – Robust leasing activities 18  Robust leasing activities  Committed, new and renewed tenants in 1QFY16 include: Tenant Industry Property Crest Travel & Tours Pte Ltd Travel China Square Central Silverfox Studios Pte Ltd Consultancy/ business services China Square Central Minist

  19. Slide 19: Portfolio review – Mid-term rent reviews

     Portfolio review – Mid-term rent reviews 19 19 More than 53% of leases have built-in step-up rents FY16 - Fixed % and other fixed lease rent reviews FY16 – 19 - Portfolio fixed % reviews GROSS RENTAL INCOME Average Total Property Leases step-up rent Property Portfolio China Square 3 2.5% 4.0% 0.8%

  20. Slide 20: Portfolio review – Stability of income

     Portfolio review – Stability of income 20 Top 10 tenants:  Established and well diversified across various sectors  MNCs, government department or public listed companies  Contribute 57% of portfolio gross rental income and have a long WALE of 5.6 years Top 10 tenants by gross rental income % (

  21. Slide 21: Asset updates – Developments at China Square Central

     Asset updates – Developments at China Square Central 21  Site has been handed over for the development of a 16 storey hotel at China Square Central1  New retail and commercial spaces with better frontage and visibility will also be created2  Construction work expected to commence in 1Q 2016  C

  22. Slide 22: Portfolio review – Singapore asset updates

     Portfolio review – Singapore asset updates 22 China Square Central – healthy 55 Market Street – Alexandra Technopark – occupancy rate healthy occupancy rate healthy occupancy rate Occupancy 95.1% (office tower: 98.3%) 95.8% 92.8% ^ WALE 1.6 years 1.3 years 1.5 years New leases, Crest Travel & Tour

  23. Slide 23: Portfolio review – Australia asset updates

     Portfolio review – Australia asset updates 23 Caroline Chisholm Centre Central Park – Healthy WALE of – full occupancy with 357 Collins Street – full 2.9 years long WALE of 9.5 years committed occupancy Occupancy 80.3%^ 100.0% 100.0%^ WALE 2.9 years (7.5 years with new lease#) 9.5 years 5.3 years

  24. Slide 24: Capital management

    Capital management FRASERS COMMERCIAL

  25. Slide 25: Capital Management – Debt statistics

    25  Capital Management – Debt statistics 25  Healthy interest coverage ratio of 4.63 times  Low average interest rate of 3.07%  Borrowings in AUD provide natural hedge for the Australian properties Statistics Borrowings and assets by currency As at 31 December 2015 Total Assets (S$’000) 2,044,16

  26. Slide 26: Capital Management and debt statistics

    26  Capital Management and debt statistics 26  Well spread debt maturity profile  No refinancing required until FY17  All debts are unsecured  Hedged 81% of gross borrowings on fixed rate Debt maturity Debt composition – floating vs. hedged Weighted average term to maturity: 3.1 years 1 Hedging

  27. Slide 27: Moving forward

    Moving forward

  28. Slide 28: Solid fundamentals - Singapore office rents

     Solid fundamentals - Singapore office rents 28 Singapore office - Grade B rents relatively more stable Singapore Grade A and Grade B office rents1 Grade A CBD Core ↓ 4.6% qoq to S$10.40 psf Grade B Islandwide ↓ 1.3% qoq to S$7.70 psf Grade B CBD Core ↓ 1.8% qoq to S$8.20 psf Source: CBRE Research

  29. Slide 29: Solid fundamentals - demand, supply and outlook for Singapore CBD office

     Solid fundamentals - demand, supply and outlook for Singapore CBD office 29 Office supply-demand dynamics and vacancy rates 1  Q4 2015 total Islandwide office net absorption was negative 331,446 sf  For the first time since Q1 2009, the office market recorded a consecutive quarter of negative ab

  30. Slide 30: Solid fundamentals - Singapore business park rents

     Solid fundamentals - Singapore business park rents 30 Singapore business park rents trend – Rents have remained stable1 Singapore Business Park (city fringe) rents1 Source: CBRE Research 1 CBRE, Singapore Market View, Q4 2015

  31. Slide 31: Solid fundamentals - demand, supply and outlook for business park

     Solid fundamentals - demand, supply and outlook for business park 31 Business Park supply-demand dynamics and future pipeline1  Islandwide net absorption was approximately 1.18 million sf in 2015  4Q 2015 overall vacancy remained relatively stable at 9.3%, up 0.3 percentage points from previous

  32. Slide 32: Perth CBD office supply and rents

     Perth CBD office supply and rents 32  Perth CBD office is still experiencing negative net absorption as a result of the soft leasing market  Incentives for Prime space is around 45%  Average Perth CBD prime net face rent was A$612 per square metre per annum Perth CBD office vacancy and net abso

  33. Slide 33: Melbourne CBD office supply and rents

     Melbourne CBD office supply and rents 33  Melbourne Prime CBD office average net face rent are between A$450 – A$650 psm per annum  Net absorption of 60,906 m2 in the six months to July 2015 a five year high  Vacancy is expected to decline over the next three years Melbourne CBD office market n

  34. Slide 34: Delivering growth

     Delivering growth 34 34 Organic and in-organic initiatives to deliver growth in distributable income Grow portfolio organically and inorganically Positive rental Asset enhancement reversions DPU initiatives Prudent capital management

  35. Slide 35: 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 — Q1 FY2016 Earnings Presentation on 6ix