Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — 2QFY12 Earnings Presentation

28 slides from Frasers Property's earnings presentation, Apr 19, 2012

  1. Slide 1: Frasers Commercial Trust 2QFY12 Financial Results

    Frasers Commercial Trust 2QFY12 Financial Results 19 April 2012

  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 2 GY unten TRUST

  5. Slide 5: Results – 2QFY12 key highlights

     Results – 2QFY12 5 Key highlights:  Gross revenue of S$30.9m, ↑ 4% Y-o-Y  Net property income of S$24.8m, ↑ 4% Y-o-Y  Distributable income to Unitholders of S$11.2m, ↑ 11% Y-o-Y  Portfolio average occupancy rates remain healthy at 96.1%  Central Park achieved 12% net property income growth y-

  6. Slide 6: Results – Financial highlights: 11% growth in distributable income in 2QFY12

     Results – Financial highlights 6 11% growth in distributable income in 2QFY12 1 Jan 2012 – 31 Mar 2012 2Q Y-o-Y Contributing factors (S$ ‘000) FY12 Change (%)  Higher contribution from Central Park and share of Gross Revenue 30,874 4% profits from master lessee of China Square Central  Higher in

  7. Slide 7: Results – Financial highlights: 1HFY12 DPU rose by 13% Y-o-Y

     Results – Financial highlights 7 1HFY12 DPU rose by 13% Y-o-Y 1 Oct 2011 – 31 Mar 2012 1H Y-o-Y Contributing factors (S$ ‘000) FY12 Change (%)  Higher contribution from Central Park and China Gross Revenue 61,535 5% Square Central  Higher income contribution from Central Park and Net Property In

  8. Slide 8: Results – Higher NPI Y-o-Y boosted by share of profits and rising rentals

     Results – Financial highlights 8 Higher NPI Y-o-Y boosted by share of profits and rising rentals Net Property Income (S$m) TOTAL: S$24.760 million 2Q FY12 Singapore: S$13.813 million (56%) 4% Australia: S$9.259 million (37%) Japan: S$1.688 million (7%) Boosted by Driven by 24.8 share of higher 23.

  9. Slide 9: Results – Distribution payment

     Results – Distribution payment 9 Distribution to be paid on 30 May 2012 Distribution Period 1 October 2011 to 31 March 2012 Distribution of 3.2423 cents per Unit comprising: a) taxable income distribution of 2.2101 cents; Ordinary Unit Distribution Rate b) tax-exempt income distribution of 0.5673

  10. Slide 10: Portfolio review

    Portfolio review Z FRASERS Ka COMMERCIAL TRUST

  11. Slide 11: Portfolio review – Occupancy Rates & WALE

     Portfolio review – Occupancy Rates & WALE 11 Singapore & Australian portfolio contribute > 93% of NPI income Geographical occupancy and % of NPI contribution As at Key portfolio statistics 31 March 2012 Ave Occupancy Rates % of NPI Contribution WALE by gross rental income 3.4 years 100% 96.6% 97.5

  12. Slide 12: Portfolio review – Lease expiry profile

     Portfolio review – Lease expiry profile 12 12 Healthy lease expiry profile Portfolio lease expiry by gross rental income 50% 29.3% 30% 24.9% 21.9% 17.0% 10% 6.8% FY12 FY13 FY14 FY15 FY16 and beyond -10% Number of leases expiring 105 162 82 30 18 NLA (sq ft) expiring 281,306 369,128 1,234,235 126,1

  13. Slide 13: Portfolio review – Breakdown of FY12 lease expiry profile

     Portfolio review – Lease expiry profile 13 Breakdown of FY12 profile Property Lease Expiry as a proportion of total Portfolio Gross Rental Income 10% 8.9% 9% 8% 7% 6% 5% 4% 3% 2.3% 1.6% 1.7% 1.5% 2% 1.0% 1% 0% China Square Central 55 Market Street KeyPoint Central Park Galleria Otemae Azabu Aco Av

  14. Slide 14: Mid-term rent reviews

     Portfolio review – Mid-term rent reviews 14 14 Organic growth provided by built-in step-up rents FY12 - Fixed % lease rent reviews FY12 – 15 - Portfolio fixed % reviews GROSS RENTAL INCOME Portfolio gross rental income Weighted average fixed step % Average Total Property Leases step-up rent Proper

  15. Slide 15: Portfolio review – Stability of income

     Portfolio review – Stability of income 15 Master lessee/ blue chip tenants with long leases contribute >42% of total gross rental income Master Lease, Master Lease 18.9% % (Gross Rental Other Tenants, Tenant Lease Expiry Income) 57.9% Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 18.9

  16. Slide 16: Asset updates – KeyPoint

     Portfolio review – Asset updates 16 KeyPoint – Occupancy at 91.5%  Tenancy activity: KeyPoint occupancy rate Property management by KeyPoint Occupancy – Major tenants commenced/renewed In-house team from May 09 91.5% include Corporate Travel Services, 95% 90% Shinryo Singapore, Singapore Retailer

  17. Slide 17: Asset updates – China Square Central

     Portfolio review – Asset updates 17 China Square Central – Underlying leases achieved net operating income of S$18.5m  Tenancy activity: China Square Central Profit Sharing – Major tenants commenced/renewed 19 18.48 0.93 0.37 include Grasshopper Asia, Straits 18 17.55 Developments and Koei Entert

  18. Slide 18: China Square Central – Average passing rent below $6.0 psf pm

     Portfolio review – Asset updates 18 China Square Central – Average passing rent below $6.0 psf pm Lease expiry by gross rental income 80% 60% 40% 37.0% Committed 12.1% 20% 31.3% 8.9% 8.3% 2.5% 0% FY12 FY13 FY14 FY15 FY16 and beyond Number of leases expiring 37 53 19 8 1 NLA (sq ft) expiring 149,39

  19. Slide 19: Asset updates – Central Park

     Portfolio review – Asset updates 19 Central Park – Achieved 12% net property income growth y-o-y  Tenancy activity: Park-and-Ride Facility – Hamersley Iron commenced new lease in January and will take up another lease for expansion in April 2012 – Robust demand driven by resource related tenants

  20. Slide 20: Capital management

    Capital management 2. J RISERS TRUST

  21. Slide 21: Capital Management – Debt statistics

    21  Capital Management – Debt statistics 21 Interest coverage ratio improved to 3.25 times from 3.04 times Statistics Borrowings and assets by currency As at 31 March 1,500 2012 1,325 Total Assets (S$’000) 2,067,181 Gross Borrowings (S$’000) 746,171 1,000 S$ million Units on Issue and Issuable 640,

  22. Slide 22: Capital Management – Debt maturity profile

    22  Capital Management – Debt statistics 22 Debt maturity Profile Debt Maturity Profile 700 600 108 500 In discussion with the S$ million bankers with the view 400 to undertake early refinancing 300 500 200 100 138 0 FY12 FY13 FY14 FY15 SGD AUD JPY 1 Based on an exchange rate of S$1.00=¥66.22 and A

  23. Slide 23: Capital Management – Interest rate statistics

     Capital Management – Interest rate statistics 23 Hedged about 84% of Gross Borrowings Hedging debt Debt composition – floating vs. hedged As at As a % of: 31 March 2012 Floating, 15.9% Total Gross Borrowings 84.1% Hedged, 84.1% For quarter ended 31 March 2012

  24. Slide 24: Moving forward

    Moving forward ZA J iRsERs TRUST

  25. Slide 25: Market outlook - Singapore

     Market outlook - Singapore 25 Limited new office supply for the rest of the year  Market conditions 1 Singapore office new supply 2  Historical net supply – Market sentiment remains positive in spite of a 3,500  Forecast supply subdued outlook of Singapore’s economy 3,000 2,500 (‘000 sq ft) – P

  26. Slide 26: Market outlook - Australia

     Market outlook - Australia 26 Forecast net face rents growth of 13% from 2012 to 2014 Perth CBD supply 1 Perth CBD average net face rents 1 Net Face Rent (AUD per sqm pa)  Market conditions 1 – Record demand from resource related tenants coupled with supply-side constraints – Forecast net face re

  27. Slide 27: Summary – Growth strategy

    27  Summary 27 Growth strategy DPU Growth Reshaping Portfolio - Acquisition ↑ 50% interest in Caroline Capital Management Chisholm Centre - Refinancing of AUD Facility Asset Management ↓ Lower interest - Growth from Australian expenses Portfolio - Early refinancing for the ↑ Higher rentals SGD Faci

  28. Slide 28: 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 — 2QFY12 Earnings Presentation on 6ix