Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — 1H FY2024 Earnings Presentation
43 slides from Frasers Centrepoint Trust's earnings presentation, Apr 25, 2024
Slide 1: Results Presentation for the First Half Financial Year 2024
Results Presentation for the First Half Financial Year 2024 ended 31 March 2024 25 April 2024 NEX, Singapore
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 re
Slide 3: Contents
Contents Sections 1. 1H24 results highlights page 4 2. Macroeconomic and retail market in Singapore page 6 3. Financial highlights page 9 4. Portfolio highlights page 16 5. Tampines 1 AEI update page 23 6. Sustainability highlights page 25 7. Summary page 28 8. Appendix page 30 We are Frasers Proper
Slide 4: 1H24 results highlights
1H24 results highlights Healthy financial performance underpinned by robust business operation Healthy financial performance Robust business operation • 1H24 gross revenue at $172.2 million and • Committed occupancy at 99.9%2 (1Q24: 99.9%) NPI at $124.6 million • 1H24 rental reversion at +7.5%2 (1H2
Slide 5: Positive start in year 2024
Positive start in year 2024 26 January 2024 26 March 2024 FCT’s private placement 18 March 2024 Completion of the acquisition was ~2.5 times covered, FCT is included in the of the additional 24.5% raising gross proceeds of Straits Times Index effective interest in NEX ~$200 million 25 January 2024 1
Slide 6: Macroeconomic and retail market in Singapore
Century Square, Singapore Macroeconomic and retail market in Singapore
Slide 7: Island-wide prime retail rents grew 4.3% in Q1 24
Macroeconomic and retail market in Singapore Island-wide prime retail rents grew 4.3% in Q1 24, CBRE expects overall prime retail rents to continue recovering in 2024 Singapore GDP1 ▪ GDP forecast for 2024: “1.0 to 3.0 per cent” Prime retail rents by submarkets4 ▪ For the consumer-facing sectors suc
Slide 8: Low new retail supply risk
Macroeconomic and retail market in Singapore Low new retail supply risk ▪ New retail supply1 on par with historical-averages supports recovery of overall prime retail rents Year Project Micro-market Area (sf) 46 & 58 Kim Yam Road Rest of Central 162,800 Estimated Gross New Supply Guoco Midtown II Do
Slide 9: Financial highlights
Waterway Point, Singapore Financial highlights
Slide 10: Lower revenue and NPI due to divestment of CCP and AEI at T1
Financial highlights of 1H24 results Lower revenue and NPI due to divestment of CCP1 and AEI at T12 ▪ 1H24 gross revenue and NPI are lower y-o-y due to lower contribution from CCP which was divested in October 2023 and from T1 due to ongoing AEI ▪ Excluding CCP and T1, gross revenue rose 2.9% y-o-y
Slide 11: Distribution to Unitholders at $104.91 million
Financial highlights of 1H24 results Distribution to Unitholders at $104.91 million Distribution to Unitholders Distribution per Unit $ million S cents 2 2 104.91 1 6.022 1 ▲0.2% 6.130 ▼1.8% 104.68 1H23 1H24 1H23 1H24 1. In determining the distribution relating to 1H23, FCT released $1.7 million of
Slide 12: Financial highlights of 1H24 results
Financial highlights of 1H24 results ▪ Excluding CCP and T1, 1H24 gross revenue ▲2.9% y-o-y to $153.19 million and NPI ▲2.1% y-o-y at $112.13 million $’000 1H24 1H23 Fav / (Unfav) Gross revenue 172,212 185,660 (7.2%) Property expenses (47,600) (49,629) 4.1% Net property income 124,612 136,031 (8.4%)
Slide 13: Statement of financial position
$’000 31 March 2024 30 September 2023 Non-current assetsa 6,322,643 5,966,251 Current assetsb 52,167 408,931 Total assets 6,374,810 6,375,182 Current liabilitiesc 326,951 504,004 Non-current liabilitiesd 1,943,809 1,897,943 Total liabilities 2,270,760 2,401,947 Net assets 4,104,050 3,973,235 NAV per
Slide 14: Capital management key indicators and credit rating
31 March 2024 31 December 2023 Aggregate leverage1 38.5% 37.2% Adjusted ICR /ICR (times)2 3.26 3.35 Average cost of debt (all-in)3 4.2% 4.3% Average debt maturity (years) 3.05 2.80 % of debt hedged to fixed rate interest 68.5% 63.4% % of green loan of total borrowings4 68.1% 72.5% Undrawn RCFs as at
Slide 15: Debt Maturity Profile as at 31 March 2024
Composition of borrowings Debt Maturity Profile as at 31 March 2024 as at 31 March 2024 Figures in parentheses denote the debt amount of that FY as a Unsecured bank borrowings Secured bank borrowings MTN percentage of total borrowings MTN 3.4% Secured bank $554.8 million borrowings (27.2%) 12.3% $45
Slide 16: Portfolio highlights
Causeway Point Singapore Portfolio highlights
Slide 17: Improved committed occupancy
Improved committed occupancy Retail Portfolio committed occupancy at 99.9%1 (▲0.7%-pt y-o-y and no change q-o-q) ▪ Note: Any discrepancies between the individual amount and the aggregate is due to rounding. 1. Excludes Tampines 1 due to ongoing AEI works. We are Frasers Property 17
Slide 18: Improved revenue performance
Improved revenue performance Resilient performance across Retail Portfolio1 ▪ * The disclosed revenue and the NPI are on 100% basis. FCT owns 50.0% effective interest in NEX and 50.0% effective interest in Waterway Point. Note: Any discrepancies between the individual amount and the aggregate is due
Slide 19: Higher y-o-y portfolio tenants' sales
Higher y-o-y portfolio tenants’ sales ▪ Portfolio shopper traffic1 for 2Q24 was ▲ 8.1% y-o-y ▪ Portfolio tenants’ sales1 for 2Q24 was ▲ 4.3% y-o-y ▪ Improved physical occupancy driven by pre-festive shopping and recently revamped anchor tenants including supermarkets and food courts 1. Excludes Tamp
Slide 20: Rental reversions underpinned by healthy leasing traction
Rental reversions underpinned by healthy leasing traction 1H24 rental reversions stronger than 1H23 ▪ 1H24 Retail Portfolio rental reversion +7.5%1 versus 1H23 at +4.3%, on an average versus average basis NLA 1H24 average vs No. of Renewals / Property As percentage of average rental New Leases Area
Slide 21: New and refreshed tenancies in 2Q24
New and refreshed tenancies in 2Q24 Continuous leasing effort to curate and refresh retail offerings EAT 3 BOWLS – Century Square MY KOREAN MOM’S KIMCHI EXPRESS – Century Square FAIRPRICE FINEST – Century Square COCORO KOBE JAPAN – Tiong Bahru Plaza XIANG XIANG HUNAN CUISINE – NEX We are Frasers Pro
Slide 22: Our malls as central nodes for the surrounding catchment
Our malls as central nodes for the surrounding catchment Multiple initiatives and programs to engage the community Usher in the Lunar New Year with Waste Less, Live More – a lion dance performance, meet-and- series of engaging events greet with the God of Fortune, guzheng and promotions were held pe
Slide 23: Tampines 1 AEI
Tampines 1, Singapore Tampines 1 AEI
Slide 24: Tampines 1 AEI
Tampines 1 AEI More than 99% leasing commitment to date1 with works on track to complete by September 2024 Store concepts exclusive to Tampines 1 • Strong leasing traction with over 99% commitment1 featuring exclusive concepts and tenants new to the portfolio • Mall continues to operate as works are
Slide 25: Sustainability highlights
Waterway Point, Singapore Sustainability highlights
Slide 26: ESG initiatives: inaugural online ESG Databook
ESG initiatives FCT launched its inaugural online ESG Databook on 19 February 2024 ▪ FCT has recently introduced an inaugural online ESG Databook offering stakeholders and investors an easy-to-use resource for FCT’s ESG data disclosures ▪ Part of FCT’s commitment to enhance its ESG disclosure and tr
Slide 27: ESG initiatives: solarisation across six retail properties
ESG initiatives Rolling out solarisation installation for retail malls across six FCT’s retail properties ▪ FCT, together with Frasers Property and the SP Group, will be rolling out Singapore’s largest solarisation installation for retail malls to date across six of its retail properties by end-2024
Slide 28: Summary
NEX, Singapore Summary
Slide 29: FCT well-positioned for resilience and growth
FCT well-positioned for resilience and growth Healthy 1H24 results on robust operating Acquisition of the additional 24.5% effective interest performance in NEX to make full contribution from 2H24 onwards Strong financial position with proactive capital Tampines 1 AEI on schedule to complete by mana
Slide 30: Appendix
2 GH Rint TRUST Appendix
Slide 31: Definition of terms used in this presentation
Definition of terms used in this presentation All financial information presented in Singapore dollar, unless otherwise stated. ▪ Moody’s: Moody’s Investors Service (credit rating agency) ▪ %-pt: percentage-point ▪ MTN: Medium Term Notes under FCT’s S$1 billion multi-currency MTN programme or the ▪
Slide 32: Advanced DPU of 4.250 S cents has been paid on 2 April 2024
Advanced DPU of 4.250 S cents has been paid on 2 April 2024 Advanced DPU for 1 October DPU for 5 February 2024 to Total DPU for 1H24 2023 to 4 February 2024 31 March 2024 DPU 4.250 S cents 1.772 S cents 6.022 S cents 9.00 a.m. on 9.00 a.m. on Ex date 1 February 2024 3 May 2024 5.00 p.m. on 5.00 p.m.
Slide 33: Top 10 tenants, Retail Portfolio
Retail Portfolio1, excluding CSFS area No. Tenants As % of total GRI As % of total NLA 1 NTUC FairPrice2 6.3% 9.7% 2 Breadtalk Group3 3.5% 3.3% 3 Dairy Farm Group4 1.8% 1.5% 4 Courts (Singapore) Pte. Ltd. 1.6% 2.2% 5 Metro (Private) Limited5 1.5% 2.6% 6 Hanbaobao Pte. Ltd.6 1.4% 0.9% 7 Oversea-Chine
Slide 34: Trade category, Retail Portfolio
Retail Portfolio1, excluding CSFS area Trade category As % of total NLA As % of total GRI (by order of decreasing % of total GRI) Food & Beverage 29.6% 37.0% Beauty & Healthcare 11.1% 14.9% Fashion & Accessories 10.6% 11.2% Sundry & Services 6.2% 8.4% Supermarket & Grocers 11.4% 6.4% Leisure & En
Slide 35: FY24 lease expiry
FY24 lease expiry Retail Portfolio1, excluding CSFS area: 14.0% of leases (by GRI) expiring in FY24 Lease expiries in FY24 Number of leases As % of leased area of As % of total GRI of Leased area expiring (As at 31 March 2024)2 expiring property property Causeway Point 41 55,688 13.3% 16.8% Waterway
Slide 36: Well-spread lease maturity profile
Well-spread lease maturity profile No concentration risk in FY24 Lease expiry profile of Retail Portfolio as % of total GRI WALE1,2 @ 31 March 2024 • 1.96 years by NLA (1Q24: 2.03 years) • 1.84 years by GRI (1Q24: 1.89 years) 29.7% 29.9% 27.3% 27.6% 20.3% 20.5% Lease expiry as at 31 Dec 2023 15.8% 1
Slide 37: Leading pure play Singapore suburban retail REIT
Leading pure play Singapore suburban retail REIT Portfolio of 9 suburban prime retail properties in Singapore ~AUM S$7.1 billion1 as at 31 March 2024 NEX (FCT 50.0% effective interest) Causeway Point Waterway Point (FCT 50.0% interest) 2.7 million sq ft2 >1,600 leases Retail Portfolio3 NLA as at 31
Slide 38: Malls are well-connected to transport network
FCT’s suburban retail malls are well-connected to transport network Supports shopper traffic and retailers’ demand for prime retail space Northpoint City Causeway Point North Wing Connectivity to public transport nodes Waterway Point Accessibility provides a consistent feed of shopper traffic to the
Slide 39: Retail malls located in low retail space per capita areas
FCT’s retail malls are located in low retail space per capita areas Lower competition within established catchment Singapore’s retail space per capita Relatively low at 6.2 sq ft NLA is lower than that retail supply in of major Asian cities1 such as Singapore Hong Kong and Kuala Lumpur, and is expec
Slide 40: Stronger portfolio focused on suburban prime retail sector
Stronger portfolio focused on the suburban prime retail sector in Singapore FY18 FY19 FY20 FY21 FY23 YTD FY24 AUM: AUM: AUM: $2.8 billion $6.5 billion1 ~$7.1 billion 2.3X Retail NLA: AUM growth Retail NLA: Retail NLA: ~1.1 million sf ~2.7 million sf2 ~2.7 million sf Acquisitions: Acquisition: Acquis
Slide 41: Strengthens FCT's market position in suburban retail sector
Strengthens FCT’s market position in suburban retail sector Scale advantage enhances FCT’s ability to attract and retain retailers, and to offer them a wider choice of locations as they look to expand Owners of retail malls outside the Central Area of Singapore by floor space1 FCT 9.2% CapitaLand In
Slide 42: Top 10 prime suburban malls in Singapore by NLA
Top 10 prime suburban malls in Singapore by NLA FCT owns / jointly owns four of Singapore’s top ten largest prime suburban malls NLA in ‘000 sq ft Top 10 Retail Malls Outside the Central Area by NLA1 Owned or jointly-owned by FCT 720 635 581 566 531 444 424 420 409 389 Jurong Point NEX JEM Parkway
Slide 43: Inspiring experiences, creating places for good.
Inspiring experiences, creating places for good.
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