Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — FY2012 Earnings Presentation
36 slides from Frasers Centrepoint Trust's earnings presentation, Oct 23, 2012
Slide 1: Frasers Centrepoint Trust 4th Quarter & Full Year FY2012 Results
Frasers Centrepoint Trust 4th Quarter & Full Year FY2012 Results 23 October 2012
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
Slide 3: Contents
Contents 3 Results slide 5 Forecast versus Actual Results slide 13 Balance sheet slide 16 Operational performance slide 21 Causeway Point AEI update slide 26 Growth strategy slide 29 Summary slide 32 Appendix slide 34
Slide 4: Results
Results
Slide 5: Another solid set of results with multiple-highs
Results 5 Another solid set of results with multiple-highs • Full-year DPU at record-high 10.01 cents, an increase of 20% • Strong FY2012 performance propelled by Causeway Point post-AEI and full-year contribution from Bedok Point, with all other malls achieving positive growth • NAV per unit up 8
Slide 6: 4Q12 DPU grew 15.3% year-on-year to record-high 2.71 cents
Results 6 4Q12 DPU grew 15.3% year-on-year to record-high 2.71 cents 3 months ended 30 Sep $’000 4Q12 4Q11 Y-o-Y change Gross Revenue 39,045 34,146 ▲ 14.3% Property Expenses (10,331) (8,888) ▲ 16.2% Net Property Income 28,714 25,258 ▲ 13.7% Distribution to Unitholders 22,317 18,327 ▲ 21.8% Distrib
Slide 7: Full-year DPU at record-high 10.01 cents, an increase of 20%
Results 7 Full-year DPU at record-high 10.01 cents, an increase of 20% 12 months ended 30 Sep $’000 2012 2011 Y-o-Y Change Gross Revenue 147,203 117,884 ▲ 24.9% Less Property Expenses 42,773 35,266 ▲ 21.3% Net Property Income 104,430 82,618 ▲ 26.4% Distribution to Unitholders 82,348 64,375 ▲ 27.9%
Slide 8: Six consecutive years of DPU growth since listing
Results 8 Six consecutive years of DPU growth since listing Annual DPU payout trend DPU (¢) 10.01 8.20 8.32 7.51 7.29 6.55 6.03* FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 (IPO) * Annualised DPU for the period 5 Jul 06 (IPO) to 30 Sep 06. CAGR: compound annual growth rate.
Slide 9: FCT continues to deliver steady quarterly DPU
Results 9 FCT continues to deliver steady quarterly DPU Quarterly DPU payout trend DPU (¢) 2011 DPU: 8.32¢ 2012 DPU: 10.01¢ Record- high 2.71 2.60 2.50 2.35 2.20 2.07 1.95 1.95 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Slide 10: 2012 Gross Revenue & Net Property Income by Property
Results 10 2012 Gross Revenue & Net Property Income by Property Gross Revenue ▲ 24.9% S$ m 147.2 117.9 2012 ▲ 29.0% 2011 ▲ 3.6% 66.5 51.6 46.7 45.0 ▲ 1.0% ▲ 5.1% 13.1 13.0 8.4 8.0 12.5 0.3 1 FCT Portfolio CWP NP YTP ACP BPT* Net Property Income S$ m ▲ 26.4% 104.4 2012 82.6 ▲ 36.9% 2011 ▲ 0.6% 48.6
Slide 11: 4Q12 Gross Revenue & Net Property Income by Property
Results 11 4Q12 Gross Revenue & Net Property Income by Property Gross Revenue S$ m ▲ 14.6% 39.1 34.1 4Q12 ▲ 4.0% 4Q11 18.0 17.3 ▲ 6.4% 11.9 ▼ 2.1% 11.2 3.4 ▲ 17.3% 3.5 3.4 2.3 2.0 0.3 1 FCT Portfolio CWP NP YTP ACP BPT* Net Property Income S$ m ▲ 13.7% 28.7 4Q12 25.3 ▲ 4.2% 4Q11 13.9 13.3 ▲ 4.0% 8
Slide 12: Forecast versus Actual Results
Forecast versus Actual Results
Slide 13: FY2012 actual results are better than forecast
Forecast versus Actual Results 13 FY2012 actual results are better than forecast* FCT FY2012 Performance (Actual vs Forecast) Actual Forecast S$ m (except DPU) 147.20 (+4.2%) 141.32 104.43 10.01 cents (+10.2%) 94.80 82.35 (+16.7%) (+16.6%) 70.61 8.58 cents Gross Revenue Net Property Income Income
Slide 14: Bedok Point performs better than forecast
Forecast versus Actual Results 14 Bedok Point performs better than forecast* Bedok Point FY2012 Performance (Actual vs Forecast) S$ m Actual Forecast 12.46 (+5.7%) 11.80 8.05 (+14.9%) 7.00 Gross Revenue Net Property Income * As set out in the Profit Forecast in Appendix B of the Circular dated 24
Slide 15: Balance sheet
Balance sheet
Slide 16: Strong financial position
Balance sheet 16 Strong financial position As at 30 Sep 2012 30 Sep 2011 Total assets $1,917m $1,787m Total liabilities $654m $635m Net assets $1,263m $1,152m NAV per unit $1.531 $1.402 1. Computed based on 823,522,544 units. 2. Computed based on the 822,003,088 units
Slide 17: Healthy gearing level
Balance sheet 17 Healthy gearing level As at 30 September 12 30 September 11 Gearing ratio1 30.1% 31.3% Interest cover2 5.56 times 4.62 times 2.71% Average cost of borrowings 3.01% (30 Jun 12: 2.75%) Total debt outstanding $577m $559m S&P: BBB+/Stable (wef 24.02.09) Corporate credit rating Moody’s
Slide 18: No major refinancing for next three years
Balance sheet 18 No major refinancing for next three years FCT’s Debt Maturity Profile as at 30 September 2012 Weight average debt maturity: 3.08 years (3Q12: 3.35 years) Secured Term Loan $264m Short-term unsecured bank borrowings Medium Term Note (MTN) $100m $95m $60m $58m $70m $3m $30m FY2013 F
Slide 19: Net revaluation gain of $100.7 million, reflects value creation
Balance sheet 19 Net revaluation gain of $100.7 million, reflects value creation FCT Portfolio as at 30 September 2012 Property Valuation Book value Revaluation Capitalisation Rate1 @30.09.2012 @30.09.2012 Surplus Change ($m) ($ m) ($ m) 2012 2011 Change Causeway Point 890.0 835.9 54.1 ▲ 6.5% 5.50
Slide 20: Operational performance
Operational performance
Slide 21: Portfolio occupancy remains stable
Operational performance 21 Portfolio occupancy remains stable Occupancy by Mall as at 30 Sep 11 31 Dec 11 31 Mar 12 30 Jun 12 30 Sep 12 Causeway Point 92.0% 95.5% 91.3% 87.7%* 87.7%* Northpoint 98.3% 99.7% 92.5% 99.7% 99.7% YewTee Point 95.6% 98.7% 97.0% 97.2% 96.3% Anchorpoint 98.6% 100.0% 100.0%
Slide 22: Healthy rental reversions achieved in 4Q12
Operational performance 22 Healthy rental reversions achieved in 4Q12 NLA (sq ft) Change compared to 4Q12 No. of renewals As % Mall’s NLA preceding rental rates1 Renewed Causeway Point 1 445 0.1% ▲ 22.6% Northpoint 11 28,184 11.9% ▲ 8.2%2 Bedok Point Nil Nil - - YewTee Point 3 2,142 2.9% ▲11.7% An
Slide 23: Rental reversions for FY2012 stay healthy at 12.1%
Operational performance 23 Rental reversions for FY2012 stay healthy at 12.1% % Increase in average rental rates over preceding rates for lease renewals 15.0% 14.0% 12.8% 12.1% 8.6% 7.2% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
Slide 24: Well-staggered lease renewal schedule over the next three years
Operational performance 24 Well-staggered lease renewal schedule over the next three years Expiry profile as % of total gross rental income Weighted Average Lease Expiry (WALE) 36.2% By NLA 1.91 years 32.4% (3Q12: 2.03 years) 22.9% By Gross Rent 1.79 years (3Q12: 1.92 years) 6.4% 0.9% 1.1% Lease e
Slide 25: Causeway Point AEI Update
Causeway Point AEI Update
Slide 26: AEI on-track for full completion in Dec 2012
Causeway Point AEI update 26 AEI on-track for full completion in Dec 2012 • Refurbished space on level 5 and level 7 to be handed progressively to tenants in the Oct-Dec period, to reach full occupancy by end-December 2012 Average Occupancy at Causeway Point 110% 100% 90% Refurbishment @ 30 Sep 12
Slide 27: AEI delivering the results
Causeway Point AEI update 27 AEI delivering the results Projection Financial Projections Before AEI Comments after AEI Average rent per sq ft / mth $10.20 $12.20 Current passing rent > $12.20 Reported NPI of $48.6m for FY2012 based on mall Annual NPI $42.2m $51.5m occupancy of between 87.8% and 97
Slide 28: Growth strategy
Growth strategy
Slide 29: Clear growth strategy
Growth strategy 29 Clear growth strategy Strategy Key drivers 1 Acquisition growth • Sponsor’s pipeline assets • Opportunistic 3rd party asset acquisition 2 Enhancement growth • Asset enhancement to drive enhanced and sustainable income growth 3 Organic growth • Positive rental reversions and main
Slide 30: Sponsor's pipeline assets
Growth strategy 30 Sponsor’s pipeline assets Changi City Point Singapore The Centrepoint • Retail mall’s NLA: 207,479 sq ft • The mall is part of “One @ Changi City” project jointly owned and developed by Ascendas Land (Singapore) and Frasers Centrepoint Ltd (FCT’s sponsor) • 2 other components of
Slide 31: Summary
Summary
Slide 32: A strong finish for FY2012, starting FY2013 on solid footing
Summary 32 A strong finish for FY2012, starting FY2013 on solid footing • Strong FY2012 performance reflects positive underlying growth momentum and FCT’s ability to continue to create value. • Solid financial position - low gearing, no major refinancing needed over the next three years. • Continu
Slide 33: 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 34: Distribution details
Appendix 34 Distribution details Distribution period 1 July 2012 to 30 September 2012 Distribution per unit 2.71 cents 31 October 2012 Ex-date (Wednesday) 2 November 2012 Books closure date (Friday) at 5.00 pm 29 November 2012 Payment date (Thursday)
Slide 35: 4Q12 year-on-year and quarter-on-quarter comparison
Appendix 35 4Q12 year-on-year and quarter-on-quarter comparison Year-on-Year Comparison Quarter-on-Quarter Comparison 4Q12 $’000 4Q11 % Change 3Q12 % Change Gross Revenue 39,045 34,146 ▲ 14.3% 35,549 ▲ 9.8% Property Expenses (10,331) (8,888) ▲ 16.2% (10,902) ▼ 5.2% Net Property Income 28,714 25,25
Slide 36: Acquisition of Units in Hektar Real Estate Investment Trust
Appendix 36 Acquisition of Units in Hektar Real Estate Investment Trust • FCT announced on 28 September 2012 that it has acquired units in Hektar REIT (H-REIT) pursuant to H-REIT’s Rights issue, in connection with its acquisition of two retail malls in Kedah. • FCT subscribed to its entitled right
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