Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q2 FY2010 Earnings Presentation
32 slides from Frasers Centrepoint Trust's earnings presentation, Apr 23, 2010
Slide 1: Frasers Centrepoint Trust 2nd Quarter FY10 results
Frasers Centrepoint Trust 2nd Quarter FY10 results 23 April 2010
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
Slide 3: Agenda
Agenda 3 Acquisition summary Results Balance sheet & operational performance Northpoint AEI update & pipeline assets Summary
Slide 4: Acquisition summary
Acquisition summary
Slide 5: Acquisitions of Northpoint 2 & YewTee Point completed on 5 Feb 2010
Acquisition Summary 5 Acquisitions of Northpoint 2 & YewTee Point completed on 5 Feb 2010 Aggregate purchase consideration of S$290.2m and associated transaction costs funded mainly by: Causeway Point Northpoint & – Private placement of 137.0m units at Northpoint 2 S$1.33 per unit YewTee Point – 3 a
Slide 6: Significant growth in asset size while maintaining prudent gearing
Acquisition Summary 6 Significant growth in asset size while maintaining prudent gearing Total assets 26% Free float 45% Gearing 1.5 438.1 30% 31% 1.2 301.1 (units million) (S$ bn) Dec-09 Mar-10 Dec-09 Mar-10 Dec-09 Mar-10
Slide 7: Results
Results
Slide 8: 2Q10 results boosted by Northpoint 2 & YewTee Point contributions
Results 8 2Q10 results boosted by Northpoint 2 & YewTee Point contributions Y-o-Y Jan - Mar 10 (S$ ‘000) 2Q10 Highlights Change (%) • improved Northpoint performance post enhancement Gross Revenue 28,264 34% and maiden contributions from Northpoint 2 & YewTee Point • due to consolidation of Northpoi
Slide 9: 2Q10 gross revenue & net property income by property
Results 9 2Q10 gross revenue & net property income by property Gross revenue S$ m 34% 28.3 Partial quarter 21.1 3% commencing 5 Feb 10 15.4 15.0 2Q10 61% 6.8 5% 4.2 2Q09 2.0 1.9 2.2 1.8 FCT Portfolio CWP NP ACP NP2 YTP Net property S$ m 38% income 20.4 14.7 Partial quarter 11.0 11.0 commencing 5 Feb
Slide 10: 1H10 results boosted by Northpoint 2 & YewTee Point contributions
Results 10 1H10 results boosted by Northpoint 2 & YewTee Point contributions Y-o-Y Oct 09 - Mar 10 (S$ ‘000) 1H10 Highlights Change (%) 27% • improved Northpoint performance post enhancement Gross Revenue 51,556 and maiden contributions from Northpoint 2 & YewTee Point • due to consolidation of Nort
Slide 11: 1H10 gross revenue & net property income by property
Results 11 1H10 gross revenue & net property income by property Gross revenue S$ m 27% 51.6 40.6 3% 30.2 29.3 79% From 5 Feb 10 1H10 13.4 5% 7.5 1H09 4.0 3.8 2.2 1.8 FCT Portfolio CWP NP ACP NP2 YTP Net property S$ m 32% income 36.3 27.5 21.3 21.3 139% From 5 Feb 10 1H10 9.9 9% 4.2 2.3 2.1 1.6 1.2 1
Slide 12: FCT outperformed forecast
Results 12 FCT outperformed forecast 5 Feb – 31 Mar 10 Actual Forecast1 Change (%) Gross Revenue 19,035 18,152 5% 5,715 9% Less Property Expenses 5,216 Net Property Income 13,819 12,437 11% Income available for distribution 11,216 9,356 20% DPU2 1.46 1.23 19% 1. Refers to the Profit Forecast as set
Slide 13: Actual results vs forecast by property
Results 13 Actual results vs forecast by property Gross revenue S$ m 5% New acquisitions 19.0 18.2 6% outperformed forecast 15.0 14.2 Actual (5 Feb – 31 Mar) 3% 1% 2.2 2.2 1.8 1.8 Forecast1 (5 Feb – 31 Mar) FCT Portfolio CWP + NP + ACP NP2 YTP Net property S$ m 11% income 13.8 12.4 12% 11.0 9.8 Actu
Slide 14: DPU profile
Results 14 DPU profile Quarterly DPU payout trend Year-on-year comparison DPU (¢) Y-o-Y 2.04 2Q10 2Q09 Change 0.10 (%) 1.94 2.06 DPU 2.06 1.86 11% 9.4% 1.86 1.94 1.91 2Q09 3Q09 4Q09 1Q10 2Q10 Income retained from previous quarters
Slide 15: Distribution details
Results 15 Distribution details Distribution period 4 Feb to 31 Mar 2010 Distribution per unit1 1.33¢ DPU for full quarter 2.06¢ Ex-date 29 Apr 2010 Books closure date 3 May 2010 at 5 pm Payment date 27 May 2010 1. Excluding 0.73¢ in respect of the period from 1 Jan – 3 Feb 10, which was paid on 15
Slide 16: Balance sheet & operational performance
Balance sheet & operational performance
Slide 17: Significant increase in total assets & free float
Balance sheet & operational performance 17 Significant increase in total assets & free float 31 Mar 2010 30 Sep 2009 % Change Total assets S$1,464.2m S$1,165.5m 26.1% 26% Net assets S$944.8m S$763.8m 23.8% 24% Total units in issue1 766,380,182 625,800,221 22.3% 23% NAV per unit2 S$1.23 S$1.22 0.8% 1
Slide 18: Prudent gearing level with an extended debt expiry profile
Balance sheet & operational performance 18 Prudent gearing level with an extended debt expiry profile Debt information Debt expiry profile 260 As at 31 March 2010 S$ m Gearing ratio 31.4% 75 55 Interest cover1 4.13 x 45 25 Cost of debt (weighted) 3.78% 2010 2011 2012 2013 2014 2015 Total debt S$460m
Slide 19: Healthy rental reversions
Balance sheet & operational performance 19 Healthy rental reversions Net Lettable Area 2Q10 No. of renewals / Area % Total NLA Increase over New leases (sq ft) preceding rents Causeway Point 5 5,494 1.3% 4.1% 8.3% Northpoint - - - - Anchorpoint 2 2,188 3.1% 0.7% 0.2% Northpoint 2 - - - - YewTee Poin
Slide 20: Healthy rental reversions
Balance sheet & operational performance 20 Healthy rental reversions Net Lettable Area 1H10 No. of renewals / Area % Total NLA Increase over New leases (sq ft) preceding rents Causeway Point 10 46,656 11.1% 4.1% 4.9% Northpoint - - - - Anchorpoint 7 4,196 2.8% 0.7% 0.5% Northpoint 2 - - - - YewTee P
Slide 21: Rising portfolio occupancy
Balance sheet & operational performance 21 Rising portfolio occupancy 98.6% 99.4% 97.3% 93.2% FCT portfolio occupancy Occupancy1 Jun 09 Sep 09 Dec 09 Mar 10 Causeway Point 99.8% 99.9% 100.0% 100.0% Northpoint 75.0% 89.9% 95.1% 98.5% Anchorpoint 93.0% 97.3% 97.9% 97.7% Northpoint 2 - - - 100.0% YewTe
Slide 22: Healthy occupancy costs
Balance sheet & operational performance 22 Healthy occupancy costs Occupancy costs 2Q10 turnover rent contribution Turnover rent February 2010 6% FCT (weighted average) 14.2% Gross revenue Industry 16 – 17%
Slide 23: 96% of gross rental income locked-in for FY10
Balance sheet & operational performance 23 96% of gross rental income locked-in for FY10 Lease expiry profile (as at 31 Mar 2010) Weighted avg lease term to expiry By NLA 1.84 yrs 36% 41% 16% By Gross rent 1.68 yrs 4% 2% Expiries as % of total gross rental income FY10 FY11 FY12 FY13 FY14 Number of l
Slide 24: Northpoint AEI update & pipeline assets
Northpoint AEI update & pipeline assets
Slide 25: Northpoint's forecast financial performance
Northpoint AEI update & pipeline assets 25 Northpoint’s forecast financial performance Financials Projected on Before Change completion Average rent per sf/mth S$11.00 S$13.20 20% Net Property Income S$13.9m S$18.0m 30% Capex - S$38.6m - ROI - 10.7% -
Slide 26: Northpoint's post AEI net property income outperforming forecast
Northpoint AEI update & pipeline assets 26 Northpoint’s post AEI net property income outperforming forecast NPI (S$ ‘000) Occupancy (%) 100% 95% 99% 90% 84% 83% 72% 75% 5,340 4,580 4,500 52% 3,789 48% 3,583 3,569 3,425 3,456 2,546 2,542 1,606 1 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Forec
Slide 27: Northpoint's transformation
Northpoint AEI update & pipeline assets 27 Northpoint’s transformation Before After Before After
Slide 28: Attractive pipeline assets
Northpoint AEI update & pipeline assets 28 Attractive pipeline assets The Centrepoint Bedok Point NLA (sf) MRT station Est. catchment population Bedok Point 81,666 Bedok 129,100 The Centrepoint 392,100 Somerset 4,987,600 Total 473,766 - -
Slide 29: Bedok Point on track to receive TOP by 2H 2010
Northpoint AEI update & pipeline assets 29 Bedok Point on track to receive TOP by 2H 2010 Bedok Point NLA 81,666 Construction status 81% completed Leasing status > 65% Expected completion 2H 2010 Site progress update Artist’s impression
Slide 30: Summary
Summary
Slide 31: Review of 2Q10
Summary 31 Review of 2Q10 Completed maiden property acquisitions - Total assets grew 26% - New acquisitions outperformed forecast - Gearing remains conservative at 31% Strong 2Q10 results - Net property income up 38% y-on-y - Distributable income up 31% y-on-y - DPU up 11% y-on-y Northpoint AEI comp
Slide 32: Thank you
Thank you Analyst & media contact: Goh Chat-Shen, CFA Investor Relations Frasers Centrepoint Asset Management Ltd Tel: (65) 6277-2657 Email: james.goh@fraserscentrepoint.com Web: www.fraserscentrepointtrust.com
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