Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Commercial Trust — 2Q FY09/10 Earnings Presentation
27 slides from Frasers Property's earnings presentation, Apr 22, 2010
Slide 1: Frasers Commercial Trust 2QFY09/10 Financial Results
Frasers Commercial Trust 2QFY09/10 Financial Results 22 April 2010
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 3 Results Portfolio review Capital management Moving Forward
Slide 4: Results
Results Zz TRUST
Slide 5: Results – 2Q FY09/10 key highlights
Results – 2Q FY09/10 5 Key highlights: Total distributable income of S$14.5m for 2Q, ↑ 167% y-o-y – Available for distribution to Unitholders of S$9.8m, ↑ 82% y-o-y – Available for distribution to CPPU holders of S$4.7m Total distribution to be paid for 1H FY09/10 – DPU of 0.56 cents, ↑ 15% y-
Slide 6: Results – Financial highlights 2Q DPU up 78% Y-o-Y
Results – Financial highlights 6 2Q DPU up 78% Y-o-Y 1 Jan 2010 – 31 Mar 2010 2Q Y-o-Y Contributing factors (S$ ‘000) FY09/10 Change (%) Full quarter contribution from Alexandra Gross Revenue 29,772 24% Technopark, more favourable A$ exchange rate Increase in Gross Revenue carried through to N
Slide 7: Results – Financial highlights 1H results lifted by improvement in 2Q
Results – Financial highlights 7 1H results lifted by improvement in 2Q 1 Oct 2009 – 31 March 2010 1H Y-o-Y Contributing factors (S$ ‘000) FY09/10 Change (%) Full half year contribution from Alexandra Gross Revenue 59,421 22% Technopark, more favourable A$ exchange rate Increase in Gross Reven
Slide 8: DPU increase by 60% since refinancing and recapitalisation
Results – Financial highlights 8 DPU increase by 60% since successful completion of refinancing and recapitalisation in end 2009 DPU (¢) 33% 20% 0.32 0.24 0.20 3QFY09 1QFY09/10 2QFY09/10 (Jul - Sept 09) (Oct - Dec 09) (Jan - Mar 10) Q-o-Q change
Slide 9: Results – Distribution payment
Results – Distribution payment 9 0.5619 cents per Unit and CPPU distribution to be paid on 27 May 2010 Distribution Period 1 October 2009 to 31 March 2010 Distribution of 0.5619 cents per Unit comprising: Ordinary Unit Distribution Rate a) taxable income distribution of 0.3980 cents; and b) tax-ex
Slide 10: Portfolio review
Portfolio review mm GH (ounenast TRUST
Slide 11: Portfolio review – Valuations
Portfolio review – Valuations 11 Asset values supported by recent transactions completed in both Singapore and Perth SGD Recent sale transactions of office buildings Singapore Assets Valuation (millions) Capital value psf in Raffles Place area were transacted at S$1,527 to S$1,630 per sq ft 3 55 M
Slide 12: Portfolio review – Occupancy Rates & WALE
Portfolio review – Occupancy Rates & WALE 12 Singapore and Australia occupancy rates >95% and contribute more than 90% of portfolio Net Property Income (“NPI”) Geographical Occupancy and % of NPI Contribution As at Key portfolio statistics 31 March 2010 Ave Occupancy Rates % of NPI Contribution WA
Slide 13: Portfolio review – Lease expiry profile
Portfolio review – Lease expiry profile 13 13 Over 88% of gross rental income is secured Portfolio Lease Expiry by Gross Rental Income >78% gross rental income will expire post FY10/11 50% 44.2% 30% 26.1% 11.1% 10.2% 8.4% 10% FY09/10 FY10/11 FY11/12 FY12/13 FY13/14 and -10% beyond Number of leases
Slide 14: Portfolio review – Lease expiry profile by property
Portfolio review – Lease expiry profile 14 Only 6.6% of effective gross rental income expiring for remaining FY09/10 Property Lease Expiry as a proportion of total Portfolio Gross Rental Income 2.2% 2.3% 3% 0.1% 2% 1.6% 2% 1.1% 0.9% 1% 2.2% 0.7% 1% 0% 55 Market Street KeyPoint Central Park Cosmo P
Slide 15: Portfolio review – Stability of income
Portfolio review – Stability of income 15 Master lessees/ blue chip tenants with long leases contribute over 63% of total gross rental income Master Leases Other Tenants, % (Gross Rental 36.2% Master Leases, Tenant Lease Expiry Income) 36.3% Alexandra Technopark – Orrick Investments Pte Ltd Aug 20
Slide 16: Portfolio review – Mid-term rent reviews
Portfolio review – Mid-term rent reviews 16 16 Almost 24% of gross rental income has built-in fixed rent step-ups of approximately 4.0% for FY09/10 FY09/10 - Fixed % mid-term lease rent reviews FY09/10 - 12/13 - Portfolio Fixed % reviews GROSS RENTAL INCOME Portfolio gross rental income Weighted a
Slide 17: Portfolio review – Asset updates KeyPoint
Portfolio review – Asset updates 17 KeyPoint Tenancy activity: – New leases commenced and existing tenants leased new space for expansion in 2QFY09/10 – Non-renewals of 547 sqft were completely offset by new leases in 2QFY09/10 with net take up of 3,661 sqft Average rental KeyPoint Leases Number
Slide 18: Portfolio review – Asset updates Central Park, Cosmo Plaza
Portfolio review – Asset updates 18 Central Park New tenant: – One of Australia’s major law firm DLA Phillips Fox, have agreed to a new 10 year lease over 2,642sqm being two full floors in the high rise of Central Park with net signing rent of A$725 psm pa; this lease accounts for 4% of Central
Slide 19: Capital management
Capital management 2. J IRASERS TRUST
Slide 20: Capital management – Snapshot
Capital management – Snapshot 20 FCOT currently trading at substantial discount of 48% to NAV Snapshot As at 31 March 2010 S$’000 Total Assets 2,070,017 Total Liabilities 881,007 Unitholders’ funds 1 1,189,010 Units on Issue and Issuable 3,067,792,467 NAV per Unit (ex-DPU) (S$) 0.27 Unit price (as
Slide 21: Capital Management – Debt statistics
21 Capital Management – Debt statistics 21 No debt maturing until after July 2012 Debt statistics Borrowings and assets by currency As at All debt facilities mature post-July 2012 31 March 2010 1500 1260 Gross Borrowings (S$’000) 829,709 1000 Gearing 1 40.1% S$ million Interest coverage ratio (tim
Slide 22: Capital Management – Interest rate statistics
Capital Management – Interest rate statistics 22 Hedged more than 80% of Gross Borrowings Hedging Debt Debt Composition – Floating vs Hedged As at As a % of: 31 March 2010 Floating, 19.7% SGD Borrowings 75.2% AUD Borrowings 75.8% JPY Borrowings 100.0% Total Gross Borrowings 80.3% Hedged, 80.3% For
Slide 23: Moving forward
Moving forward mm GH (ounenast TRUST
Slide 24: Market outlook
Market outlook 24 Improved economic outlook and stabilisation of rentals, increased demand for both Singapore and Perth CBD office space Perth – Announcement of key resources sector projects coupled with the forecast economic recovery and improving business sentiment, leads to an increased in te
Slide 25: Growth strategy
25 Growth strategy 25 Continue to grow distributable income Organic growth Acquisitions • Step-up rents • Singapore • Occupancy • Australia Distributable Asset Income Capital Enhancement Management • KeyPoint • Expand debt • China Square expiry profile Central
Slide 26: Value proposition
Value proposition 26 Trading at attractive yield & valuations Yield1 returns compared to Singapore 10-year bond2 NAV compared to share price3 FCOT 10-year Government bond yield NAV Share price Yield % (¢) 8.1 27.0 48% discount 524 bps spread 14.0 2.8 1 Based on annualised DPU of 1.13 (¢) /FCOT clo
Slide 27: 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
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