Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Frasers Commercial Trust — Q3 2008 Earnings Presentation
36 slides from Singapore Exchange's earnings presentation, Nov 3, 2008
Slide 1: Frasers Commercial Trust 3Q2008 Financial Results
Frasers Commercial Trust 3Q2008 Financial Results 3 November 2008
Slide 2: Important notice
Important notice This presentation is focused on comparing actual results versus forecast for Frasers Commercial Trust’s properties. All references to forecast in this presentation are defined as follows: The 3Q2008 forecast is based on management’s FY2008 forecast shown in the Circular dated 26 Jun
Slide 3: Agenda
Agenda 3 3Q2008 Results Financial highlights Strategic review Quarter in review Strategic outcomes DPU growth FCL pipeline assets Portfolio review Asset diversification Valuations Tenant diversification Lease expiry profile Expiring rentals v market rentals Rent reviews
Slide 4: 3Q2008 Results
3Q2008 Results An FRASER TRUST
Slide 5: 3Q2008 Results – Financial highlights
3Q2008 Results – Financial highlights 5 3Q2008: solid property performance, however weaker distributable income stemming from increased borrowing expenses under previous debt extension terms 1 July to 30 September 3Q2008 Y-o-Y change Highlights (S$’000) (%) Contribution from KeyPoint which was a
Slide 6: 3Q2008 Results – Financial highlights YTD2008
3Q2008 Results – Financial highlights 6 YTD2008: Year-on-Year performance positive over YTD2007, room for improvement in operating expenses which have softened 3Q2008 results 1 January to 30 September YTD2008 Y-o-Y change Highlights (S$’000) (%) Full contribution from assets acquired post-IPO Gr
Slide 7: Strategic review
Strategic review An FRASER TRUST
Slide 8: Strategic review – Quarter in review
Strategic review – Quarter in review 8 3QY2008: marked new beginnings with new management under a new sponsor New management: acquisition of Manager and 18.27% of Units of Allco Commercial REIT completed on 14 August 2008 Strategic review: review of all operations, including initiatives commen
Slide 9: Strategic review – Strategic outcomes
Strategic review – Strategic outcomes 9 New management: strategic review of all operations, including initiatives commenced by previous management Key area of focus Strategic outcome Rationale Revision of project scopes of Current retail enhancement projects at KeyPoint and China Square Central
Slide 10: Strategic review – DPU growth
Strategic review – DPU growth 10 Organic growth: by way of maximising asset performance, completing refinance and asset enhancements Growth channel Status Outlook Opportunity for market rental reversions given most passing rents significantly below prevailing market rents Maximise rental growth
Slide 11: Strategic review - FCL pipeline assets
Strategic review - FCL pipeline assets 11 FCL warehouse: FCOT’s new developer–sponsor, providing quality assets for sustainable growth pipeline at appropriate timing Property Alexandra Point Valley Point Alexandra Technopark 20-storey office tower with a two- 2 blocks of 8-storey commercial Descri
Slide 12: Portfolio review
Portfolio review An FRASER TRUST
Slide 13: Portfolio review – Asset diversification
Portfolio review – Asset diversification 13 Geographic and asset diversification: Pan-Asian investment strategy limits exposure to any one concentrated property market Asset values 1 Net property income TOTAL: S$1,787.9 million TOTAL: S$20.081 million 3Q2008 Singapore: S$1,058.0 million (59%) Sing
Slide 14: Portfolio review – Valuations
Portfolio review – Valuations 14 Fair values: new Manager brought forward independent valuations to reflect a more current assessment of NAV Translation as at Variance to value/translation Date of last Local currency 30 September 2008 as at 30 June 2008 Assets valuation value (millions) (S$ millio
Slide 15: Portfolio review – Tenant diversification
Portfolio review – Tenant diversification 15 Tenant diversity: broad tenant base underpinned by government and strong global corporates Portfolio tenant mix – gross rental income * Well-recognised tenants Banking, Insurance & 18.16% Sector Tenants Financial Services 16.18% Government & Government
Slide 16: Portfolio review – Lease expiry profile
Portfolio review – Lease expiry profile 16 16 Lease expiry profile: strong weighted average lease term, providing a secure long- term income stream Portfolio lease expiries Key portfolio statistics * as a % of gross rental WALE by NLA 4.0 years income ** WALE by gross 4.03 years rental income Occu
Slide 17: Portfolio review – Lease expiry profile: upcoming renewals
Portfolio review – Lease expiry profile 17 Upcoming renewals: diversified risk for income, most renewals at passing rents below market FY2009 key lease expiries Market and property specific influences % of property’s % of FCOT’s portfolio No. of current gross current gross rental Property leases r
Slide 18: Portfolio review – Expiring rentals v market rentals
Portfolio review – Expiring rentals v market rentals 18 18 Lease expiry profile: key lease expiries buffered by lower current rental as compared to estimated current market rentals S$ psf pm CHINA SQUARE CENTRAL S$ psf pm 55 MARKET STREET 15.00 20.00 Market rental - S$17.89 psf pm Market rental -
Slide 19: Portfolio review – Rent reviews
Portfolio review – Rent reviews 19 19 Fixed rent reviews: 31% of FCOT’s current gross rental contracted for weighted average rent increase of 4% in FY2009 FY2009 Fixed Rent reviews Average fixed % % of property’s % of FCOT’s No. of review on those current gross rental portfolio current Property le
Slide 20: Capital management
Capital management An FRASER TRUST
Slide 21: Capital management – Snapshot & debt maturity profile
Capital management – Snapshot & debt maturity profile 21 Current focus: strengthen balance sheet via reduced gearing, extend debt maturity profile Snapshot Debt maturity profile As at 30 September As at 30 September S$'million 2008 2007 JPY Bonds S$’000 S$’000 JPY Bank Loan Total Assets 1,858,185
Slide 22: Capital management – Interest risk profile
Capital management – Interest risk profile 22 Current focus: improve interest profile through refinancing and strengthening of balance sheet Debt statistics Fixed interest rate profile As at 30 September 2008 S$’000 100% Interest coverage ratio * 2.7 times Weighted average debt term 1.8 years 62%
Slide 23: Portfolio detail
Portfolio detail An FRASER TRUST
Slide 24: Portfolio detail - 3Q2008 gross property revenue
Portfolio detail - 3Q2008 results 24 3Q2008 Gross property revenue: exceeds q-on-q by 40.9%, with full quarter’s contributions from Japanese assets and KeyPoint Gross property revenue (S$m) TOTAL: S$26.576million 3Q2008 2% Singapore: S$11.333 (42%) Australia S$10.984 (41%) 7.98 7.83 Japan: S$4.259
Slide 25: Portfolio detail - 3Q2008 net property income
Portfolio detail - 3Q2008 results 25 3Q2008 Net property income: Underpinned by contributions from new assets and increased q-on-q performance from Central Park and 55 Market Street Net property income (S$m) TOTAL: S$20.081 million 3Q2008 3% Singapore: S$9.276 (46%) 5.79 5.63 Australia S$8.340 (42
Slide 26: China Square Central, Singapore
China Square Central, Singapore 26 China Square Central is an office and retail development located in the financial district of Singapore. The property is a grade “A” 15-storey office tower and a retail complex. It is well-served by both Raffles Place and Chinatown MRT stations, located within 500
Slide 27: 55 Market Street, Singapore
55 Market Street, Singapore 27 55 Market Street is a high quality commercial property located in the heart of the financial district at Raffles Place. The property comprises 15 office levels and two floors of retail (including basement). It was acquired with vacant possession and had committed occup
Slide 28: KeyPoint, Singapore
KeyPoint, Singapore 28 KeyPoint is an integrated 25-storey commercial development located at the junction of Beach Road and Jalan Sultan, Singapore. The property comprises a three-storey podium, a 22-storey office tower and a four-storey car park block containing 227 car bays. It is well-served by b
Slide 29: Central Park, Perth
Central Park, Perth 29 Central Park is a “premium” grade office tower and the tallest building in Perth. Located on St Georges Terrace, Central Park is a pre-eminent business address, in the heart of the CBD and shopping precinct. The property comprises a 47-level office tower with on-site tenant pa
Slide 30: Caroline Chisholm Centre (Centrelink Headquarters), Canberra
Caroline Chisholm Centre (Centrelink Headquarters), Canberra 30 The Caroline Chisholm Centre is a new contemporary-designed, five storey “Grade A” office complex. The property is strategically located within the core of the Tuggeranong Town Centre, one of four town centres within the city of Canberr
Slide 31: Cosmo Plaza, Osaka
Cosmo Plaza, Osaka 31 Cosmo Plaza is a 14-storey building, comprising 11 levels of high quality commercial office space, one level of retail space, two levels of auditorium and conferencing facilities and 234 car spaces. The property is located in Nanko Cosmo Square, within Suminoe Ward, Osaka and i
Slide 32: Azabu Aco Building, Tokyo
Azabu Aco Building, Tokyo 32 Azabu Aco comprises three levels of commercial office space, basement office/studio space and two car spaces and is located in the Minato-ku ward of Tokyo, a central commercial and residential district in Tokyo. The property is situated approximately 250 metres northwest
Slide 33: Ebara Techno-Serve Headquarters Building, Tokyo
Ebara Techno-Serve Headquarters Building, Tokyo 33 33 Ebara Techno-Serve comprises five levels of high quality commercial office space and is located within Ota Ward, a southern ward of Tokyo. It is located approximately two kilometres from Tokyo International Airport (Haneda), the main domestic air
Slide 34: Galleria Otemae Building, Osaka
Galleria Otemae Building, Osaka 34 Galleria Otemae is a 12-storey building, comprising commercial office space, ground floor and basement retail space and 48 car spaces. It is prominently located in the Chuo Ward, an administration and financial district of Osaka. Galleria Otemae is within a short w
Slide 35: Allco Wholesale Property Fund (AWPF), Sydney
Allco Wholesale Property Fund (AWPF), Sydney 35 35 Diversified Australian property portfolio Providing exposure to Sydney CBA office and retail and suburban Sydney retail assets No ‘fees on fees’ Key Investment Statistics Initial unit holding 48,000,000 Initial investment A$48.0m (S$59.3m) Ini
Slide 36: Thank you
Thank you Please visit our new website at www.fraserscommercialtrust.com Investor Relations Frasers Centrepoint Asset Management (Commercial) Limited Level 16 | 55 Market Street | Singapore 048941 Tel: +65 6305 7800 | Fax: +65 6438 4002 | Email: fcot@fraserscentrepoint.com www. fraserscommercialtrus
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