Frasers Centrepoint Trust · SGX:J69U

Frasers Centrepoint Trust — Q1 FY2014 Earnings Presentation

35 slides from Frasers Centrepoint Trust's earnings presentation, Jan 21, 2014

  1. Slide 1: Frasers Centrepoint Trust 1st Quarter FY14 Financial Results Presentation

    Frasers Centrepoint Trust 1st Quarter FY14 Financial Results Presentation (Financial quarter ended 31 December 2013) 21 January 2014 Causeway Point Northpoint Bedok Point YewTee Point Anchorpoint

  2. 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

  3. Slide 3: Contents

     Contents 3  Results slide 4  Balance sheet slide 11  Operational performance slide 15  Outlook slide 22  Appendix slide 25

  4. Slide 4: Results

    Results

  5. Slide 5: 1Q14 Results Highlights

     Results 5 1Q14 Results Highlights Financial performance • Distribution per unit of 2.50 cents, up 4.2% year-on-year • Gross revenue of $39.9 million, up 5.0% year-on-year • Net property income of $28.3 million, up 4.4% year-on-year • Gearing level at 29.7% as at 31 Dec 13 Operational performance •

  6. Slide 6: 1Q14 DPU up 4% to 2.50 cents

     Results 6 1Q14 DPU up 4% to 2.50 cents 3 months ended 31 December Y-o-Y 1Q14 1Q13 Remarks $’000 change Growth driven by Causeway Point, Gross Revenue 39,890 37,976 ▲ 5.0% Northpoint and YewTee Point. Increase in marketing expenses, maintenance and property tax, Property Expenses (11,573) (10,854)

  7. Slide 7: FCT delivers steady and regular DPU

     Results 7 FCT delivers steady and regular DPU FCT Quarterly DPU DPU (¢) 2.98 Highest DPU 2.85 for first quarter 2.71 2.70 2.60 2.50 2.50 2.40 +4.0% YoY 2.20 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

  8. Slide 8: 1Q14 revenue up 5% to $39.9 million

     Results 8 1Q14 revenue up 5% to $39.9 million 1Q14 Revenue compared to 1Q13: • Causeway Point: Higher gross rent from Gross Revenue improved rental rates for new and renewed S$ m leases, higher car park income and turnover rent. ▲ 5.0% 1Q14 1Q13 • Northpoint: Improved rental rates for new and rene

  9. Slide 9: 1Q14 property expenses 6.6% higher year-on-year

     Results 9 1Q14 property expenses 6.6% higher year-on-year 1Q14 Property Expenses compared to 1Q13: Property Expenses • Causeway Point: 17% increase, mainly S$ m from higher marketing, maintenance and property tax expense, partially offset by 1Q14 1Q13 lower utilities and water charges. Increase ▲

  10. Slide 10: 1Q14 NPI up 4.4% to $28.3 million

     Results 10 1Q14 NPI up 4.4% to $28.3 million Net Property Income S$ m ▲ 4.4% 1Q14 1Q13 28.32 27.12 ▲ 8.6% 14.06 12.95 ▲ 1.4% 8.87 8.74 ▲ 0.5% ▼ 3.3% ▼ 0.8% 2.41 2.40 1.82 1.84 1.16 1.20 FCT Portfolio Causeway Point Northpoint YewTee Point Anchorpoint Bedok Point Any discrepancy between individual

  11. Slide 11: Balance sheet

    Balance sheet

  12. Slide 12: NAV per unit unchanged at $1.77

     Balance sheet 12 NAV per unit unchanged at $1.77 • The increase in current assets due to receipt of proceeds from the issuance of $60m MTN due 2017, issued on 12 December 2013. The increase in non-current liabilities is also related to this MTN issuance. 31 Dec 2013 30 Sep 2013 As at S$’000 S$’000

  13. Slide 13: Maintaining a robust balance sheet

     Balance sheet 13 Maintaining a robust balance sheet • On 12 Dec 2013, FCT issued S$60m 2.535% MTN due Dec 2017. The proceeds from this MTN will be used to retire a S$60m 2.80% MTN due 24 Jan 2014. After which, the total borrowings will be reduced to $589m. Correspondingly, the gearing level will r

  14. Slide 14: Weighted average debt maturity @ 31 Dec 2013: 2.73 years

     Balance sheet 14 Weighted average debt maturity @ 31 Dec 2013: 2.73 years $60m 2.8% MTN to Aggregate amount be retired on 24 Jan Medium Term Note: S$315 million 2014 with proceeds $264m Secured borrowings: S$334 million from $60m 2.535% (40.7% of total Total Borrowings: S$649 million borrowing) MT

  15. Slide 15: Operational performance

    Operational performance

  16. Slide 16: Occupancy at Causeway Point and Northpoint remained stable

     Operational performance 16 Occupancy at Causeway Point and Northpoint remained stable • Occupancy at YewTee Point improved to 97.1% from 92.7% with new tenants commencing their leases in Oct-Dec 2013 period. • Occupancy at Bedok Point is expected to undergo transient fluctuation due to on-going fi

  17. Slide 17: Positive rental reversions at Causeway Point and Northpoint

     Operational performance 17 Positive rental reversions at Causeway Point and Northpoint at 15.4% and 7.3%, respectively NLA (sq ft) Change compared to 1Q14 No. of renewals As % Mall’s NLA preceding rental rates1 Renewed Causeway Point 17 68,949 16.5% 15.4% Northpoint 18 26,909 11.4% 7.3% Bedok Poin

  18. Slide 18: Positive rental reversions through economic cycles

     Operational performance 18 Positive rental reversions through economic cycles % Increase in average rental rates over preceding rates for lease renewals 15.0% 14.0% 12.8% 12.1% 8.6% 7.2% 7.7% 2.5% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 1Q FY2014

  19. Slide 19: Well-staggered lease renewal schedule

     Operational performance 19 Well-staggered lease renewal schedule Weighted Average Lease Expiry (WALE) Expiry profile as % of total gross rental income By NLA 1.77 years 39.9% (4Q13: 1.56 years) 23.9% By Gross Rent 1.60 years 19.7% 13.8% (4Q13: 1.49 years) 2.1% 0.7% Lease expiry1 as at 31 December

  20. Slide 20: Lease renewals by malls for FY2014 and FY2015

     Operational performance 20 Lease renewals by malls for FY2014 and FY2015 as at 31 December 2013 Number of Nett Lettable Area as % of leased area as % of total gross rent FY2014 Leases Expiring (NLA) Expiring (sq ft) of Mall of Mall Causeway Point 64 82,520 20.1% 29.0% Northpoint 25 10,832 4.6% 7.0

  21. Slide 21: 1Q14 shopper traffic down 3.3% year-on-year but up 2.3% quarter-on-quarter

     Operational performance 21 1Q14 shopper traffic down 3.3% year-on-year but up 2.3% quarter-on-quarter Shopper Traffic (millions)* 23 22.48 22.00 22.06 21.66 21.74 22 21.46 21.25 20.87 21 20.63 20 Sequential increase was from Northpoint (+5% QoQ), Causeway Point (+1 QoQ) and 19 YewTee (+3% QoQ). Sh

  22. Slide 22: Outlook

    Outlook

  23. Slide 23: Suburban retail sector supported by positive trends

     Summary 23 Suburban retail sector supported by positive trends • Singapore’s economy is projected to grow between 2% and 4% in 2014*. • The Singapore suburban retail sector supported by positive trends including: a) growing median household income; b) low unemployment rate; c) stable supply/demand

  24. Slide 24: 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

  25. Slide 25: Distribution details

     Appendix 25 Distribution details Distribution period 1 October 2013 to 31 December 2013 Distribution per unit 2.50 cents 27 January 2014 Ex-date (Monday) at 9.00 am 29 January 2014 Books closure date (Wednesday) at 5.00 pm 28 February 2014 Payment date (Friday)

  26. Slide 26: 1Q14 year-on-year and quarter-on-quarter comparison

     Appendix 26 1Q14 year-on-year and quarter-on-quarter comparison Year-on-Year Comparison Quarter-on-Quarter Comparison 1Q14 $’000 (unless otherwise indicated) 1Q13 % Change 4Q13 % Change Gross Revenue 39,890 37,976 ▲ 5.0% 40,200 ▼ 0.8% Property Expenses -11,573 -10,854 ▲ 6.6% -12,929 ▼ 10.5% Net Pr

  27. Slide 27: Appendix: Portfolio Information as at 31 December 2013

     Appendix: Portfolio Information as at 31 December 2013 27 FRASERS CENTREPOINT TRUST PORTFOLIO INFORMATION AS AT 31 December 2013 Portfolio NLA (sq ft) Causeway Point (CWP) 416,631 Northpoint (NP1 and NP2) 236,119 Anchorpoint (ACP) 70,973 YewTee Point (YTP) 73,669 Bedok Point (BPT) 81,393 Total NLA

  28. Slide 28: Appendix: Portfolio Lease expiry profile as at 31 December 2013

     Appendix: Portfolio Lease expiry profile as at 31 December 2013 28 Lease expiry profile (FYE Sep 30) FY14 FY15 FY16 FY17 FY18 FY19 FCT Portfolio No of leases 134 231 141 66 4 1 Expiries as % Total NLA 15.0% 38.1% 23.9% 17.4% 5.3% 0.3% NLA (sq ft) Expiring 127,814 323,486 202,745 147,422 45,321 2,8

  29. Slide 29: Appendix: Trade mix as at 31 December 2013

     Appendix: Trade mix as at 31 December 2013 29 % of portfolio % of portfolio Trade Classifications NLA gross rents 1 Food & Restaurants 28.4% 32.5% 2 Fashion 15.0% 23.4% 3 Services/Education 8.8% 8.6% 4 Household 8.6% 7.4% 5 Supermarket/Hypermarket 8.2% 4.4% 6 Department Store 6.8% 3.6% 7 Leisure/E

  30. Slide 30: Appendix: Top 10 tenants by gross rental as at 31 December 2013

     Appendix: Top 10 tenants by gross rental as at 31 December 2013 30 % of portfolio % of portfolio Tenants NLA gross rents 1 Cold Storage Singapore (1983) Pte Ltd1 7.2% 4.8% 2 Metro (Private) Limited2 6.9% 3.6% 3 Courts (Singapore) Limited 4.0% 3.1% 4 Copitiam Pte Ltd3 2.0% 2.0% 5 Food Republic Pte

  31. Slide 31: Appendix: Historical portfolio information by quarter

     Appendix: Historical portfolio information by quarter 31 FRASERS CENTREPOINT TRUST FINANCIAL & OPERATIONAL METRICS Note: Yel l ow cel l s mea ns property i s undergoi ng AEI Quarterly historical data 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Gross rent ($ '000) CWP 14,476 13,791 16,293 15,537 16,752

  32. Slide 32: Appendix: Historical profit and loss statement by quarter

     Appendix: Historical profit and loss statement by quarter 32 FRASERS CENTREPOINT TRUST PROFIT AND LOSS STATEMENT $'000 Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 REVENUE Gross rent 32,278 31,757 35,237 34,033 35,188 35,306 35,802 35,304

  33. Slide 33: Appendix: Historical portfolio information by financial year

     Appendix: Historical portfolio information by financial year 33 FRASERS CENTREPOINT TRUST FINANCIAL & OPERATIONAL METRICS Yearly historical data (FYE Sep) FY07 FY08 FY09 FY10 FY11 FY12 FY13 Note: Yellow cells means property is undergoing AEI Gross Rent ($ '000) CWP 45,674 48,805 50,669 50,633 44,9

  34. Slide 34: Snapshot: Location of FCT's Malls

    Appendix: Location of FCT’s Malls 34 Anchorpoint YewTee Point Causeway Point Northpoint Bedok Point Snapshot • 5 properties with an aggregate net lettable area of 879k square feet1 • Average occupancy of 96.7%1 • Aggregate value of S$2 billion as at 30 September 2013 Legend : FCT’s properties : Spo

  35. Slide 35: Sponsor's pipeline assets for FCT: Changi City Point and The Centrepoint

    Appendix: Sponsor’s pipeline assets 35 Sponsor’s pipeline assets for FCT: Changi City Point and The Centrepoint • 12 retail malls in Singapore managed by Frasers Centrepoint, including 5 malls in FCT • 2 pipeline assets identified for FCT: Changi City Point and The Centrepoint Changi City Point The

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