Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — 2QFY15 Earnings Presentation

32 slides from Frasers Property's earnings presentation, Apr 23, 2015

  1. Slide 1: Frasers Commercial Trust 2QFY15 Financial Results

    Frasers Commercial Trust 2QFY15 Financial Results 23 April 2015

  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  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 Singapore properties continue to boost 2QFY15 results 1 Significant contribution from Alexandra Technopark following the expiry of the master lease  Significant contribution from the underlying leases of Alexandra Technopark following the expiry of the master lease in A

  6. Slide 6: Results – 2QFY15 Financial highlights

     Results – 2QFY15 Financial highlights 6  17% rise in distributable income for 2QFY15 1 Jan 2015 – 31 Mar 2QFY15 Y-o-Y Contributing factors 2015 (S$ ‘000) Change (%)  Higher revenue contribution from the underlying leases of Alexandra Technopark 22% following the expiry of the master lease in Aug

  7. Slide 7: Results – 2QFY15 Financial highlights: Net Property Income

     Results – 2QFY15 Financial highlights 7 Higher contribution from Alexandra Technopark following the expiry of the master lease and better performances of China Square Central and 55 Market Street Net Property TOTAL: S$24.7 million 2QFY15 Income (S$m) Singapore: S$15.3 million (62%) Australia: S$9.

  8. Slide 8: Results – Financial highlights

     Results – Financial highlights 8  Continuous DPU growth for 2QFY14  Implementation of DRP for 2QFY14 DPU (Cents) 16% * Adjusted for Unit consolidation

  9. Slide 9: Results – Distribution payment

     Results – Distribution payment 9 DRP will be implemented for the distribution for 2QFY15 Distribution Period 1 January 2015 to 31 March 2015 Distribution of 2.3754 cents per Unit comprising: a) taxable income distribution of 1.9300 cents; Ordinary Unit Distribution Rate b) tax-exempt income distri

  10. Slide 10: Portfolio review

    Portfolio review FRASERS COMMERCIAL

  11. Slide 11: Portfolio review – Valuation

     Portfolio review – Valuation 11  Balanced portfolio consisting of Singapore and Australian properties  No one property consist of more than 32% of portfolio value Singapore Perth Canberra Singapore $ 1,216.2 68% Australia $ 570.9 32% Total $ 1,787.1 100% As at 31 March 2015. Excludes retail turn

  12. Slide 12: Portfolio review – Occupancy Rates & WALE

     Portfolio review – Occupancy Rates & WALE 12  Robust average occupancy rate of 96.5%  Healthy WALE of 3.5 years^ Geographical occupancy and % of NPI contribution As at Key portfolio statistics 31 March 2015 Ave Occupancy 96.5% WALE by gross rental income 3.5 years^ As at 31 March 2015. Excludes

  13. Slide 13: Portfolio review – Lease expiry profile

     Portfolio review – Lease expiry profile 13 13  Proactive leasing reduced lease expiries in FY15 and lengthened lease expiry profile  Well spread lease expiry provides income stability Portfolio lease expiry by gross Lease rental income expiries reduced to 6.8% after early renewal* Number of leas

  14. Slide 14: Portfolio review – Lease expiry profile

     Portfolio review – Lease expiry profile 14 FY15 and FY16 - Potential for higher income due to low passing rents Property Lease Expiry as a proportion of total Property Lease Expiry as a proportion of total Portfolio Gross Rental Income in FY15 Portfolio Gross Rental Income in FY16 Lease expiry red

  15. Slide 15: Portfolio review – Rental reversions

     Portfolio review – Rental reversions 15 Achieved positive weighted average rental reversions for new and renewed leases that commenced in 2QFY151 China Square Central 55 Market Street Alexandra Technopark + 15.6% + 4.6% + 6.7%2 As at 31 March 2015. Excludes retail turnover rent 1 Weighted average

  16. Slide 16: Portfolio review – Robust leasing activities

     Portfolio review – Robust leasing activities 16  Robust leasing activities  Committed, new and renewed tenants in 2QFY15 include: Tenant Industry Property MKS Precious Metals Financial services China Square Central ABeam Consulting Consultancy/ Business Services China Square Central Business Ser

  17. Slide 17: Portfolio review – Mid-term rent reviews

     Portfolio review – Mid-term rent reviews 17 17 More than 34% of leases have built-in step-up rents FY15 - Fixed % and other fixed lease rent reviews FY15 – 18 - Portfolio fixed % reviews GROSS RENTAL INCOME Average Total Property Leases step-up rent Property Portfolio China Square 5 3.0% 6.6% 1.5%

  18. Slide 18: Portfolio review – Stability of income

     Portfolio review – Stability of income 18 Blue chip tenants with long leases contribute 46% of total gross rental income Blue Chip Tenants with Long Leases % (Gross Lease Rental Tenant Expiry Income) Commonwealth of Australia (Centrelink) Jul-25 16.4% Hewlett-Packard Singapore Pte Ltd Nov-17 11.7%

  19. Slide 19: Portfolio review – Asset updates (Alexandra Technopark)

     Portfolio review – Asset updates (Alexandra Technopark) 19  Alexandra Technopark’s NPI up 68.3% in 2QFY15 following expiry of the master lease in August 2014

  20. Slide 20: Portfolio review – Singapore asset updates

     Portfolio review – Singapore asset updates 20 China Square Central – high 55 Market Street – full Alexandra Technopark – occupancy rate occupancy rate high occupancy rate Occupancy 97.1%^ 100.0% 97.4% WALE 2.0 years 1.6 years 1.8 years* New leases, MKS Precious Metals, Abeam Consulting, Itron Mete

  21. Slide 21: Portfolio review – Australia asset updates

     Portfolio review – Australia asset updates 21 Central Park – Healthy Caroline Chisholm Centre –full occupancy WALE of 3.3 years with long WALE of 10.3 years Occupancy 88.6% 100.0% Property occupied by a single tenant, i.e. the Commonwealth of Australia as represented by Centrelink (Aaa rated*) unt

  22. Slide 22: Capital management

    Capital management FRASERS COMMERCIAL

  23. Slide 23: Capital Management – Debt statistics

    23  Capital Management – Debt statistics 23  Healthy interest coverage ratio of 4.44 times  Low all-in interest rate of 2.9%  Borrowings in AUD provide natural hedge for the Australian properties Statistics Borrowings and assets by currency As at 31 March 2015 Total Assets (S$’000) 1,849,589 Gro

  24. Slide 24: Capital Management and debt statistics

    24  Capital Management and debt statistics 24  Well spread debt maturity profile  No refinancing required until FY17  Hedged 78% of gross borrowings Debt maturity Debt composition – floating vs. hedged Post debt prepayment and divestment of Japanese properties 1 Hedging debt As at As a % of: 31

  25. Slide 25: Moving forward

    Moving forward

  26. Slide 26: Solid fundamentals – Singapore office rents

    2. Solid fundamentals – Singapore office rents 26  Singapore office - vacancy rates expected to remain low due to limited pipeline office space over the next 12 months Singapore Grade A and Grade B office rents1 Grade A ↑ 1.8% qoq to S$11.40 psf Islandwide Grade B ↑ 0.6% qoq to S$8.05 psf Grade B C

  27. Slide 27: Solid fundamentals – demand, supply and outlook for Singapore CBD office

    2. Solid fundamentals – demand, supply and outlook for Singapore CBD office 27 Office supply-demand dynamics and vacancy rates 1  Q1 2015 total Islandwide office net absorption was 0.12 mil sf  Leasing activity was driven mainly by upgrading or rent advantage rather than expansion  Leasing demand

  28. Slide 28: Solid fundamentals – Singapore business park rents

    2. Solid fundamentals – Singapore business park rents 28 Singapore business park rents trend – Rents have stablised for city fringe business park Singapore Business Park (city fringe) rents1 1 Source: CBRE Research

  29. Slide 29: Solid fundamentals – demand, supply and outlook for business & science park

    2. Solid fundamentals – demand, supply and outlook for business & science park 29 Manufacturing Indices and Business Park future pipeline 1  Demand supported by the information and communications, pharmaceutical and technology sectors  Vacancy decreased from 11.7% to 10.4% due to some leasable spa

  30. Slide 30: Perth CBD office supply and rents

     Perth CBD office supply and rents 30 Premium Grade average net face rents is around A$775 psm per annum Perth CBD office supply (sqm)1 Perth CBD average net face rents1 Market conditions 1  According to the Property Council of Australia, Perth CBD office vacancy was 14.8% as at January 2015, up f

  31. Slide 31: Delivering growth

     Delivering growth 31 31 Organic and in-organic initiatives to deliver growth in distributable income Positive rental reversions Alexandra Technopark – Grow significant portfolio contribution organically from underlying and leases will boost inorganically future income DPU and DPU

  32. Slide 32: 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 — 2QFY15 Earnings Presentation on 6ix