Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — Q1 FY2015 Earnings Presentation

32 slides from Frasers Property's earnings presentation, Jan 22, 2015

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

    Frasers Commercial Trust 1QFY15 Financial Results 22 January 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 The Singapore properties continue to perform well and boost the performance of the Trust 1 Significant boost from Alexandra Technopark following the expiry of the master lease  First full quarter of contribution from the underlying leases of Alexandra Technopark followi

  6. Slide 6: Results – Financial highlights

     Results – Financial highlights 6  22% rise in distributable income for 1QFY15 1 Oct 2014 – 31 Dec 1QFY15 Y-o-Y Contributing factors 2014 (S$ ‘000) Change (%)  Higher revenue contribution from the underlying leases of Alexandra Technopark 23% following the expiry of the master lease in August 201

  7. Slide 7: Results – 1QFY15 Financial highlights

     Results – 1QFY15 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 TOTAL: S$25.4 million 1QFY15 Net Property Singapore: S$15.0 million (59%) Income (S$m) Australia: S$10

  8. Slide 8: Results – Financial highlights: 20% DPU growth

     Results – Financial highlights 8  20% DPU growth in 1QFY15 20.0% DPU (Cents) * Adjusted for Unit consolidation

  9. Slide 9: Results – Distribution payment

     Results – Distribution payment 9 DRP will be implemented for the distribution for 1QFY15 Distribution Period 1 October 2014 to 31 December 2014 Distribution of 2.4608 cents per Unit comprising: a) taxable income distribution of 1.8460 cents; Ordinary Unit Distribution Rate b) tax-exempt income dis

  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 $ 579.6 32% Total $ 1,795.8 100% As at 31 December 2014. Excludes retail t

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

     Portfolio review – Occupancy Rates & WALE 12  Robust average occupancy rate of 96.6%  Healthy WALE of 3.7 years^ Geographical occupancy and % of NPI contribution As at Key portfolio statistics 31 December 2014 Ave Occupancy 96.6% WALE by gross rental income 3.7 years^ As at 31 December 2014. Exc

  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 rental income Lease expiries reduced to 8.8% after early renewal* Number of leas

  14. Slide 14: Portfolio review – Lease expiry profile

     Portfolio review – Lease expiry profile 14 Properties in Singapore poised to benefit from the uptrend in office rents Property Lease Expiry as a proportion of total Lease expiry Portfolio Gross Rental Income in FY15 reduced from 17.9% to 4.6% 17.9% after early renewal of the underlying leases Numb

  15. Slide 15: Rental reversions

     Portfolio review – Rental reversions 15 Achieved positive weighted average rental reversions for new and renewed leases that commenced in 1QFY151 China Square Alexandra Central Technopark 1QFY15: ↑1.2% 1QFY15: ↑16.9% 55 Market Street 1QFY15: ↑7.1% As at 31 December 2014. Excludes retail turnover r

  16. Slide 16: Portfolio review – Robust leasing activities

     Portfolio review – Robust leasing activities 16  Active leasing activities  Committed, new and renewed tenants in 1QFY15 include: Tenant Industry Property Equinix Asia Pacific IT Products & Services China Square Central WT Partnership (S) Consultancy/ Business Services China Square Central Keppe

  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 16.7% 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  1QFY15 – first full quarter of contribution from Alexandra Technopark following the expiry of the master lease in August 2014  NPI up 66.2% in 1QFY15

  20. Slide 20: Singapore asset updates

     Portfolio review – Singapore asset updates 20 China Square Central – office 55 Market Street – full Alexandra Technopark – tower fully occupied occupancy rate^ high occupancy rate Occupancy 98.4% (100.0% for the office tower) 100.0%^ 97.7% WALE 2.0 years 1.7 years 2.0 years* New leases, Equinix As

  21. Slide 21: Australia asset updates

     Portfolio review – Australia asset updates 21 Central Park – Healthy Caroline Chisholm Centre –full occupancy WALE of 3.6 years with long WALE of 10.5 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 4.83 times  Low all-in interest rate of 2.7% - similar to the all-in interest rate recorded in 1QFY14  Borrowings in AUD provide natural hedge for the Australian properties Statistics Borrowings and assets by currenc

  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 73% 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 – positive market outlook

    2. Solid fundamentals – positive market outlook 26  Singapore office rents trend – Upward rental growth is projected to remain in the next 12 months Singapore Grade A and Grade B office rents1 1 Source: CBRE Research

  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  Islandwide office net absorption in 2014 was 1.5 mil sf, in line with 10-year market average of 1.1 mil but 49.2% down from 2013’s absorption level  However, lease tran

  28. Slide 28: Solid fundamentals – Demand likely to pick up on back of rising office rents

    2. Solid fundamentals – Demand likely to pick up on back of rising office 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 remains resilient albeit unspectacular  Demand supported by e-commerce, engineering and IT firms with quality and cost as main considerations  Vacanc

  30. Slide 30: Perth CBD office supply and rents

     Perth CBD office supply and rents 30 Premium Grade average net face rents are between A$715 - A$810 psm per annum Perth CBD office supply (sqm)1 Market conditions 1  Premium Grade average net face rents are between A$715 to A$810 psm pa  Perth CBD office market vacancy rate was 11.8% as at July

  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

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