Frasers Centrepoint Trust · SGX:J69U

Frasers Centrepoint Trust — Q2 FY2013 Earnings Presentation

37 slides from Frasers Centrepoint Trust's earnings presentation, Apr 17, 2013

  1. Slide 1: Frasers Centrepoint Trust 2nd Quarter FY13 Financial Results Presentation

    Frasers Centrepoint Trust 2nd Quarter FY13 Financial Results Presentation (Financial quarter ended 31 March 2013) 17 April 2013

  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 12  Operational performance slide 16  Causeway Point AEI update slide 22  Growth strategy slide 25  Summary slide 28  Appendix slide 31

  4. Slide 4: Results

    Results

  5. Slide 5: 2Q13 distributable income up 10.4%

     Results 5 2Q13 distributable income up 10.4% • 2Q13 DPU of 2.70 cents, up 8.0% • Growth driven by higher contributions from Causeway Point and Northpoint • Portfolio occupancy improved to 98.2% from 97.2% in 1Q13 • Achieved average rental reversions of 10.1% in 2Q13 • Maintains strong financial po

  6. Slide 6: 2Q13 DPU of 2.70 cents, up 8.0%

     Results 6 2Q13 DPU of 2.70 cents, up 8.0% 3 months ended 31 Mar $’000 2Q13 2Q12 Y-o-Y change Gross Revenue 39,808 36,725 ▲ 8.4% Property Expenses (11,063) (10,521) ▲ 5.2% Net Property Income 28,745 26,204 ▲ 9.7% Income Available for Distribution 23,475 21,262 ▲ 10.4% excludes Distribution to Unith

  7. Slide 7: 1H13 DPU of 5.10 cents, an increase of 8.5% year on year

     Results 7 1H13 DPU of 5.10 cents, an increase of 8.5% year on year 6 months ended 31 Mar $’000 1H13 1H12 Y-o-Y change Gross Revenue 77,784 72,610 ▲ 7.1% Property Expenses (21,917) (21,540) ▲ 1.8% Net Property Income 55,867 51,070 ▲ 9.4% Income Available for Distribution 45,310 40,969 ▲ 10.6% Distr

  8. Slide 8: FCT continues to deliver steady quarterly DPU

     Results 8 FCT continues to deliver steady quarterly DPU • Excludes retained cash of 0.15 cts* Quarterly DPU payout trend • 2.70 cts represents payout ratio of DPU (¢) ~95%. Full payout would be 2.85 cts 2.71 2.70 2.60 2.50 2.40 2.20 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 FY2012 DPU: 10.01¢ * Total cash ret

  9. Slide 9: 2Q13 performance driven by higher contributions from Causeway Point and Northpoint

     Results 9 2Q13 performance driven by higher contributions from Causeway Point and Northpoint Revenue comparison between 2Q13 Gross Revenue and 2Q13 S$ m • Causeway Point: Higher number of lease commencements, higher contributions ▲ 8.4% from turnover rents, better rental rates 2Q13 2Q12 achieved f

  10. Slide 10: Higher property expenses mainly due to PM fee and property tax

     Results 10 Higher property expenses mainly due to PM fee and property tax at Causeway Point and Northpoint Property Expenses comparison between Property Expenses 2Q13 and 2Q13 S$ m • Causeway Point: Higher property management (PM) fee and property tax, offset by lower utilities and maintenance exp

  11. Slide 11: 2Q13 NPI up 9.7% as revenue growth outpaced property expenses

     Results 11 2Q13 NPI up 9.7% as revenue growth outpaced property expenses Net Property Income (NPI) S$ m ▲ 9.7% 2Q13 2Q12 28.75 26.20 ▲ 17.4% 14.40 12.26 ▲ 6.0% 8.77 8.27 ▼3.5% ▲ 1.2% ▼1.1% 2.40 2.48 1.93 1.95 1.26 1.24 FCT Portfolio Causeway Point Northpoint YewTee Point Anchorpoint Bedok Point An

  12. Slide 12: Balance sheet

    Balance sheet

  13. Slide 13: Healthy balance sheet, NAV per unit improved to $1.54

     Balance sheet 13 Healthy balance sheet, NAV per unit improved to $1.54 31 March 2013 30 Sep 2012 As at S$’000 S$’000 Non-current assets 1,894,457 1,887,948 Current assets 38,946 29,171 Total assets 1,933,403 1,917,119 Current liabilities (114,034) (112,419) Non-current liabilities (551,065) (541,6

  14. Slide 14: Financial position remains strong with gearing level at 30.5%

     Balance sheet 14 Financial position remains strong with gearing level at 30.5% As at 31 March 13 30 September 12 Gearing ratio1 30.5% 30.1% 2 MTNs issued in Jan Interest cover2 13 (2.85% and 3.00%) 6.24 times 6.49 times carry higher interest cost than retired MTN Total borrowings in Feb 13 (2.83%)

  15. Slide 15: No significant refinancing needs in the near-term

     Balance sheet 15 No significant refinancing needs in the near-term Weighted average debt maturity @ 31 March 2012 : 3.35 years Secured Term Loan $264m Medium Term Note (MTN) $95m $100m $60m $70m $70m Nil $30m FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 $60m $25m 3.50% $264m due $70m du

  16. Slide 16: Operational performance

    Operational performance

  17. Slide 17: Portfolio occupancy improved to 98.2%

     Operational performance 17 Portfolio occupancy improved to 98.2%, Causeway Point and Northpoint achieved near-full occupancy Occupancy by Mall as at 31 Mar 12 30 Jun 12 30 Sep 12 31 Dec 12 31 Mar 13 Causeway Point 91.3% 87.7% 87.7% 96.4% 99.6% Vacancy due to lease expiry, mall Northpoint 92.5% 99.

  18. Slide 18: Achieved 10.1% rental reversion in 2Q13

     Operational performance 18 Achieved 10.1% rental reversion in 2Q13 NLA (sq ft) Change compared to 2Q13 No. of renewals As % Mall’s NLA preceding rental rates1 Renewed Causeway Point 2 492 0.1% ▲ 10.4% Northpoint 5 4,061 1.7% ▲ 7.2% Bedok Point No renewals in 2Q13 na na YewTee Point 15 17,104 23.2%

  19. Slide 19: 6.6% average rental reversion for 1HFY13

     Operational performance 19 6.6% average rental reversion for 1HFY13 % Increase in average rental rates over preceding rates for lease renewals 15.0% 14.0% 12.8% 12.1% 8.6% 7.2% 6.6% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 1HFY13

  20. Slide 20: Well-staggered lease renewal schedule over the next three years

     Operational performance 20 Well-staggered lease renewal schedule over the next three years Expiry profile as % of total gross rental income Weighted Average Lease Expiry (WALE) 37.3% By NLA 1.84 years 32.3% (1Q13: 1.98 years) By Gross Rent 1.71 years 15.1% (1Q13: 1.84 years) 9.6% 4.1% 1.7% Lease e

  21. Slide 21: Causeway Point and Northpoint account for 70% of rentals to be renewed

     Operational performance 21 Causeway Point and Northpoint account for 70% of rentals to be renewed in the remaining 6 months in FY2013 Profile of Lease Expiries by Gross Rentals Profile of Lease Expiries by Nett Lettable for the remaining 6 months in FY2013 Area for the remaining 6 months in FY2013

  22. Slide 22: Causeway Point AEI Update

    Causeway Point AEI Update

  23. Slide 23: Causeway Point AEI delivered results which exceeded projections

     Causeway Point AEI update 23 Causeway Point AEI delivered results which exceeded projections Before Projection Financial Projections Comments AEI after AEI Average rent per sq ft / mth $10.20 $12.20 Current average gross rental is $ 13.52 psf/pm Causeway Point achieved 6-mth NPI of $27.35m in 1H13

  24. Slide 24: Comparison of Causeway Point AEI performance with past AEIs

     Causeway Point AEI update 24 Comparison of Causeway Point AEI performance with past AEIs Anchorpoint Northpoint Causeway Point (completed May 2008) (completed Mar 2010) (completed Dec 2012) % increase in average rent per sf/mth after AEI 41% 20% 32% % increase in mall’s NPI 106% 30% 30%* Increase

  25. Slide 25: Growth strategy

    Growth strategy

  26. Slide 26: Clear growth strategy

     Growth strategy 26 Clear growth strategy Strategy Key drivers 1 Acquisition growth • Sponsor’s pipeline assets • Opportunistic 3rd party asset acquisition 2 Enhancement growth • Asset enhancement to drive enhanced and sustainable income growth 3 Organic growth • Positive rental reversions and main

  27. Slide 27: Sponsor's pipeline assets

     Growth strategy 27 Sponsor’s pipeline assets Changi City Point Singapore The Centrepoint • Retail mall’s NLA: 207,479 sq ft • The mall is part of “One @ Changi City” project jointly owned and developed by Ascendas Land (Singapore) and Frasers Centrepoint Ltd (FCT’s sponsor) • All components of the

  28. Slide 28: Summary

    Summary

  29. Slide 29: Outlook for FCT

     Summary 29 Outlook for FCT • Singapore suburban retail sector expected to remain stable • Causeway Point and Northpoint are expected to continue to underpin the growth momentum of FCT going forward • Performance of YewTee Point, Anchorpoint and Bedok Point is expected to remain stable • FCT will c

  30. Slide 30: 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

  31. Slide 31: Distribution details

     Appendix 31 Distribution details Distribution period 1 January 2013 to 31 March 2013 Distribution per unit 2.70 cents 25 April 2013 Ex-date (Thursday) at 9.00 am 29 April 2013 Books closure date (Monday) at 5.00 pm 30 May 2013 Payment date (Thursday)

  32. Slide 32: 2Q13 year-on-year and quarter-on-quarter comparison

     Appendix 32 2Q13 year-on-year and quarter-on-quarter comparison Year-on-Year Comparison Quarter-on-Quarter Comparison 2Q13 $’000 2Q12 % Change 1Q13 % Change Gross Revenue 39,808 36,725 +8.4% 37,976 +4.8% Property Expenses -11,063 -10,521 +5.2% -10,854 +1.9% Net Property Income 28,745 26,204 +9.7%

  33. Slide 33: Trade mix of portfolio in 2Q13 by NLA and Gross Rental Income

     Appendix 33 Trade mix of portfolio in 2Q13 by Nett Lettable Area (NLA) and Gross Rental Income (GRI) Trade Classification | as % of total NLA Trade Classification | as % of total GRI Food & Restaurants 28.4% Food & Restaurants 32.3% Fashion 15.4% Fashion 23.5% Services/Education 9.1% Services/Educ

  34. Slide 34: Additional Financial and Operations Information (Portfolio)

     Appendix 34 Additional Financial and Operations Information (Portfolio) FRASERS CENTREPOINT TRUST PORTFOLIO INFORMATION AS AT 31 March 2013 Portfolio NLA (sq ft) Causeway Point (CWP) 416,251 Northpoint (NP1 and NP2) 236,019 Anchorpoint (ACP) 71,610 YewTee Point (YTP) 73,669 Bedok Point (BPT) 81,39

  35. Slide 35: Additional Financial and Operations Information (Leasing)

     Appendix 35 Additional Financial and Operations Information (Leasing) FRASERS CENTREPOINT TRUST FRASERS CENTREPOINT TRUST LEASE INFORMATION AS AT 31 Mar 2013 LEASE INFORMATION AS AT 31 Mar 2013 Portfolio trade mix Portfolio trade mix Trade Classifications % NLA % Rents Trade Classifications % NLA

  36. Slide 36: Additional Financial and Operations Information (Financials)

     Appendix 36 Additional Financial and Operations Information (Financials) FRASERS CENTREPOINT TRUST FRASERS CENTREPOINT TRUST FINANCIAL & OPERATIONAL METRICS FINANCIAL & OPERATIONAL METRICS Note: Yel l ow cel l s mea ns property i s undergoi ng AEI Quarterly historical data 2Q12 3Q12 4Q12 1Q13 2Q13

  37. Slide 37: Additional Financial and Operations Information (Financials)

     Appendix 37 Additional Financial and Operations Information (Financials) FRASERS CENTREPOINT TRUST PROFIT AND LOSS STATEMENT $'000 Quarter Quarter Quarter Quarter Quarter 2Q12 3Q12 4Q12 1Q13 2Q13 REVENUE Gross rent 32,278 31,757 35,237 34,033 35,188 Other revenue 4,447 3,792 3,808 3,943 4,620 36,7

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