Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q1 FY2017 Earnings Presentation
41 slides from Frasers Centrepoint Trust's earnings presentation, Jan 20, 2017
Slide 1: Frasers Centrepoint Trust
Frasers Centrepoint Trust Financial Results Presentation for 1st Quarter FY2017 ended 31 December 2016 20 January 2017 Causeway Point Northpoint + Changi City Point Bedok Point YewTee Point Anchorpoint Yishun 10 Retail Podium
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
Slide 3: Contents
Contents Contents 1. Results Highlights slide 4 2. Balance sheet slide 13 3. Operational performance slide 17 4. Northpoint AEI Update slide 24 5. Outlook slide 29 6. Appendix slide 32 3
Slide 4: Results Highlights
Results Highlights
Slide 5: Results Highlights
Results - Highlights Results Highlights Financial performance • 1Q17 DPU of 2.89 cents, 0.7% higher year-on-year (1Q16 DPU: 2.87 cents) • 1Q17 Gross Revenue of $44.1 million, 6.4% lower year-on-year • 1Q17 Net Property Income of $31.6 million, 5.7% lower year-on-year • NAV per Unit of $1.93 as at 31
Slide 6: 1Q17 DPU of 2.89 cents, 0.7% higher year-on-year
Results - Highlights 1Q17 DPU of 2.89 cents, 0.7% higher year-on-year 1Q17 (a) 1Q16 Y-o-Y $’000 Oct 16 to Dec 16 Oct 15 to Dec 15 change Mainly due to lower Gross Revenue 44,075 47,075 ▼ 6.4% contribution from Northpoint which is undergoing Asset Property Expenses (12,440) (13,531) ▼ 8.1% Enhancemen
Slide 7: FCT delivers steady quarterly DPU
Results - Highlights FCT delivers steady quarterly DPU DPU (¢) Highest-ever 1Q DPU 2.89 +0.7% YoY 3.036 3.039 3.040 +2.7% QoQ 2.96 2.859 2.87 2.815 2.75 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 7
Slide 8: Ten consecutive years of steady DPU growth
Results - Highlights Ten consecutive years of steady DPU growth • Maintains 100% payout ratio on an annual basis FCT Annual DPU (cents) CAGR FY2006 – FY2016: 6.9% * Annualised DPU for the period 5 Jul 06 (IPO) to 30 September 2006. CAGR: compound annual growth rate. 8
Slide 9: Performance by properties: 1Q17 Revenue 6.4% lower year-on-year
Results – Performance by properties 1Q17 Revenue 6.4% lower year-on-year • Due mainly to lower contribution from Northpoint, which is undergoing AEI Gross Revenue $ million 1Q17 1Q16 ▼ 6.4% 47.08 44.08 ▲ 3.4% 21.13 20.43 ▼ 25.4% 12.42 ▼ 9.3% 9.27 ▲ 1.4% 5.73 6.32 ▲ 2.6% ▼ 3.1% 2.21 2.15 3.59 3.54 2.
Slide 10: Performance by properties: 1Q17 Property Expenses 8.1% lower year-on-year
Results – Performance by properties 1Q17 Property Expenses 8.1% lower year-on-year • Lower expenses attributed mainly to write back of property tax provisions in previous years which were not utilized Property Expenses 1Q17 1Q16 $ million ▼ 8.1% 13.53 12.44 ▼ 13.8% ▼ 4.9% 4.45 5.16 ▼ 5.3% ▼ 2.5% ▼ 1
Slide 11: Performance by properties: 1Q17 Net Property Income 5.7% lower year-on-year
Results – Performance by properties 1Q17 Net Property Income 5.7% lower year-on-year • Lower NPI contribution from Northpoint due to ongoing AEI Net Property Income $ million 1Q17 1Q16 ▼ 5.7% 33.55 31.64 ▲ 9.3% 16.68 15.27 ▼ 32.2% 9.34 ▼ 11.6% 6.33 ▲ 6.8% ▲ 8.3% ▼ 7.9% 3.64 4.12 2.65 2.48 1.17 1.08
Slide 12: NPI contribution by properties
Results – NPI contribution by properties Bigger malls to continue to drive portfolio growth • Causeway Point, Northpoint and Changi City Point account for 84% of portfolio NPI Percentage of Net Property Income contribution by mall in 1Q17 Bedok Point Anchorpoint 3.7% 3.6% YewTee Point 8.4% Changi Ci
Slide 13: Balance sheet
Balance sheet
Slide 14: Strong financial position with gearing level at 29.7%
Balance sheet Strong financial position with gearing level at 29.7% As at 31 December 16 30 September 16 Increase of $51 million of Gearing ratio1 29.7% 28.3% borrowings, comprising short term unsecured Interest cover for the quarter2 7.29 times 7.43 times loans and borrowings to Total borrowings $7
Slide 15: NAV per unit maintained at $1.93
Balance sheet NAV per unit maintained at $1.93 31 Dec 2016 30 Sep 2016 As at S$’000 S$’000 Non-current assets 2,614,966 2,568,969 Increase due mainly to Current assets 30,424 25,508 acquisition of Yishun 10 retail Total assets 2,645,390 2,594,477 podium Current liabilities (319,974) (278,800) Non-cu
Slide 16: Weighted average debt maturity: 2.6 years
Balance sheet Weighted average debt maturity @ 31 Dec 2016: 2.6 years Type of borrowings Aggregate amount Unsecured bank borrowings: S$229 million (29.2%) Medium Term Note: S$270 million (34.4%) Secured bank borrowings: S$286 million (36.4%) Total Borrowings: S$785 million (100.0%) $266m (33.9% of t
Slide 17: Operational performance
Operational performance
Slide 18: Overall portfolio occupancy improved to 91.3%
Operational performance Overall portfolio occupancy improved to 91.3% Mall Occupancy 31 Dec 15 31 Mar 16 30 Jun 16 30 Sep 16 31 Dec 16 Causeway Point 99.2% 98.8% 99.0% 99.8% 99.7% Northpoint 96.2% 81.7% 81.3% 70.9% 81.9%* Changi City Point 88.6% 89.3% 81.3% 81.1% 85.9% Bedok Point 76.8% 86.1% 90.0%
Slide 19: 1Q17 average rental reversion at +6.9%
Operational performance 1Q17 average rental reversion at +6.9% 1Q17 No. of NLA (sq ft) Change compared to (1 Oct – 31 Dec 2016) renewals As % Mall’s NLA preceding rental rates1 Renewed Causeway Point 15 71,648 17.2% +10.6% Northpoint* 13 13,390 5.7% +5.5% Changi City Point 16 25,371 12.2% +12.2% Bed
Slide 20: Maintaining positive rental reversions through economic cycles
Operational performance Maintaining positive rental reversions through economic cycles FCT rental reversions1 (FY2007 – 1QFY2017) Portfolio Average Rental Reversions 15.0% 14.0% 12.8% 12.1% 9.9% 8.6% 7.2% 7.7% 6.5% 6.3% 6.9% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 1QFY2
Slide 21: Portfolio Lease Expiry as at 31 December 2016
Operational performance Portfolio Lease Expiry as at 31 December 2016 Weighted Average Lease Expiry (WALE) Expiry profile as % of total gross rental income By NLA 1.62 years (4Q16: 1.38 years) 32.1% 27.4% 25.0% By Gross Rent 1.50 years (4Q16: 1.36 years) 12.4% 1.6% 1.5% Lease expiry1 as at 31 Dec 20
Slide 22: The larger malls account for 74% of the NLA to be renewed
Operational performance The 3 larger malls account for 74% of the NLA to be renewed Number of Nett Lettable Area Remaining 9 months of as % of leased as % of total gross Leases (NLA) Expiring FY2017 area of Mall rent of Mall as at 31 December 2016 Expiring (sq ft) Causeway Point 73 90,704 21.9% 29.8
Slide 23: 1Q17 shopper traffic up 2.7% y-o-y, up 7.5% q-o-q
Operational performance 1Q17 shopper traffic up 2.7% y-o-y, up 7.5% q-o-q Shopper Traffic (millions)# ▲ 2.7% y-o-y ▲ 7.5% q-o-q 27.1 26.4 25.9 25.1 25.2 24.4 24.6 24.5 23.2 23.2 Jul-Sep 2014 Oct-Dec 2014 Jan-Mar 2015 Apr-Jun 2015 Jul -Sep 2015 Oct-Dec 2015 Jan-Mar 2016 Apr-Jun 2016 Jul -Sep 2016 Oct
Slide 24: Northpoint AEI update
Artist’s impression Northpoint AEI update
Slide 25: Northpoint AEI background information
Northpoint AEI update Northpoint AEI background information • The AEI at Northpoint is part of the overall strategy to periodically upgrade our malls to provide sustainable income growth for FCT • 18-month AEI commenced in March 2016, expected completion is in September 2017 • Mall to remain open fo
Slide 26: Plan view of Northpoint and upcoming Northpoint City retail component
Northpoint AEI update Plan view of Northpoint and upcoming retail component of Northpoint City by Frasers Centrepoint Limited Plan view of Northpoint Shopping Centre and the mixed-commercial and residential* development by Frasers Centrepoint Limited Links between Northpoint and Northpoint City (at
Slide 27: AEI works progressing on schedule
Northpoint AEI update AEI works progressing on schedule The AEI works have been phased to minimise income disruption, but Northpoint’s rental revenue will be impacted. PHASE 1 (March 2016 to January 2017) – Completed • Reconfiguration of retail space • Relocation of Food court at Basement level 2 •
Slide 28: AEI works progressing on schedule: occupancy projection
Northpoint AEI update AEI works progressing on schedule • Occupancy of Northpoint is expected to reach a trough of around 57-58%, following which, it will increase progressively as AEI approaches completion Occupancy at Northpoint (Projected versus Actual) Jan – Jun: 65% Projected occupancy at North
Slide 29: Outlook
Outlook
Slide 30: FCT's malls are expected to remain resilient
Outlook FCT’s malls are expected to remain resilient • Singapore’s economy grew by 1.8% in 2016 and conditions in 2017 will remain uncertain and challenging. • The asset enhancement works at Northpoint are proceeding on schedule and are expected to complete by September 2017. Retailers have shown ke
Slide 31: 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
Slide 32: Distribution details
Appendix: Distribution details Distribution details Distribution period 1 October 2016 to 31 December 2016 Distribution per unit 2.89 cents Ex-date 26 January 2016 (Thursday) Books closure date 31 January 2017 (Tuesday) at 5.00 pm Payment date 28 February 2017 (Tuesday) 32
Slide 33: 1Q17 year-on-year and quarter-on-quarter comparison
Appendix: Year-on-year and quarter-on-quarter comparison 1Q17 year-on-year and quarter-on-quarter comparison Year-on-Year Comparison Quarter-on-Quarter Comparison 1Q17 Change Change 1Q16 4Q16 $’000 (unless otherwise indicated) Inc/(Dec) Inc/(Dec) Gross Revenue 44,075 47,075 (6.4%) 44,619 (1.2%) Prop
Slide 34: Portfolio Information: Debt Information
Appendix: Portfolio Information as at 31 December 2016 Debt Information Average cost of Borrowings (all-in) 2.1% Annualised based on rates fixed @ 31 December 2016 Moody's rating Baa1 S&P rating BBB+ Interest cover (EBIT/Σinterest) (times) 7.29 For the quarter 1 Oct - 31 Dec 2016 Gearing 29.7% as at
Slide 35: Portfolio Lease expiry profile as at 31 December 2016
Appendix: Portfolio Lease expiry profile as at 31 December 2016 as at 31 December 2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 TOTAL Causeway Point Number of Leases expiring 73 75 68 10 1 - 227 Expiries as % of Total NLA 21.9% 25.7% 36.1% 16.1% 0.3% 0.0% 100.0% NLA (sq ft) expiring 90,704 106,385
Slide 36: Trade mix as at 31 December 2016
Appendix: Trade mix as at 31 December 2016 As % of As % of total Gross Rental Trade Classifications (in descending order of % rent) total NLA Income 1 Food & Restaurants 29.5% 35.4% 2 Fashion 14.3% 20.4% 3 Services/Education 9.5% 9.7% 4 Beauty, Hair, Cosmetics, Personal Care 5.2% 7.8% 5 Household 8.
Slide 37: Top 10 tenants by gross rental as at 31 December 2016
Appendix: Top 10 tenants by gross rental as at 31 December 2016 As % of As % of total Gross No. Tenant total NLA Rental Income 1 Cold Storage Singapore (1983) Pte Ltd1 5.7% 4.2% 2 Copitiam Pte Ltd2 3.7% 3.7% 3 Metro (Private) Limited3 5.5% 3.6% 4 Courts (Singapore) Limited 3.2% 2.9% 5 Koufu Pte Ltd
Slide 38: Historical portfolio information by quarter
Appendix: Historical portfolio information by quarter Occupancy by Properties Note: Yellow cells means property is undergoing AEI Property (Occupancy rate as at end of each quarter) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Causeway Point 99.5% 99.6% 99.2% 99.5% 99.2% 98.8% 99.0% 99.8% 99.7% Nort
Slide 39: Location of FCT's Properties
Appendix: Location of FCT’s Properties Singapore-centric, suburban-focused retail property portfolio Properties are located next to or near to MRT stations / Bus Interchanges Northpoint and Yishun Anchorpoint YewTee Point Causeway Point 10 Retail Podium Bedok Point Changi City Point Woodlands BUS Yi
Slide 40: Summary of FCT's portfolio of properties
Appendix: Portfolio Information Summary of FCT’s portfolio of properties FCT Portfolio Causeway Yishun 10 Changi City as at 31 Dec Northpoint Bedok Point YewTee Point Anchorpoint Point Retail Podium Point 2016 Net Lettable 415,792 225,032 10,413 207,244 82,713 73,670 70,989 Area (sq ft) 99 years lea
Slide 41: Sponsor's retail assets in Singapore
Appendix: Sponsor’s retail assets Sponsor’s retail assets in Singapore Northpoint Retail Component of Northpoint City (2) Causeway Point (under development) YewTee Point The Centrepoint Artist’s impression Waterway Point (1) Opened Jan 2016 Bedok Point Eastpoint Anchorpoint Changi City Point Roberts
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