Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — FY2022 Earnings Presentation
39 slides from Frasers Centrepoint Trust's earnings presentation, Oct 26, 2022
Slide 1: Frasers Centrepoint Trust Results Presentation 2H and FY2022
Frasers Centrepoint Trust Results Presentation for the Second Half and Financial Year 2022 ended 30 September 2022 26 October 2022 Northpoint City, Singapore
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 re
Slide 3: Contents
Contents Sections 1. Results highlights page 4 2. Financial performance page 9 3. Portfolio performance page 16 4. Sustainability page 27 5. Summary page 29 6. Appendix page 31 We are Frasers Property 3
Slide 4: Results highlights
Results highlights Stronger 2H2022 results lift full year revenue +4.6% y-o-y and NPI +4.9% y-o-y Gross Revenue S$ million ▲4.6% 356.93 − 341.16 ▲1.5% ▲7.9% 173.62 176.19 167.54 180.74 − − 1H2021 1H2022 2H2021 2H2022 FY2021 FY2022 − Net property income S$ million ▲4.9% − 246.57 258.60 ▲3.8% ▲6.0
Slide 5: Results highlights: full year DPU
Results highlights Full year DPU at 12.227 cents Distribution to Unitholders S$ million ▲1.7% 204.68 208.19 ▲3.3% ▲0.2% 101.10 104.41 103.58 103.78 1H2021 1H2022 2H2021 2H2022 FY2021 FY2022 Distribution per Unit S cents ▲1.2% (1) 12.085 12.227 ▲2.3% - (1) 5.996 6.136 6.089 6.091 1H2021 1H2022 2H
Slide 6: Results highlights
Results highlights Retail portfolio’s committed occupancy up Announced on 12 September 2022 the 0.4%-pt q-o-q to 97.5%. proposed acquisition of an additional 10% stake in Waterway Point to raise Retail portfolio registered average rental FCT’s share to 50% from 40%. reversion of 1.5% (incoming vs ou
Slide 7: Market environment
Market environment Both Orchard Road and suburban retail prime rents are firming up Chart 1: Prime retail rents by Chart 2: Estimated Gross New • The Ministry of Trade and submarkets (CBRE Q3 2022) Supply (CBRE Q3 2022) Industry (MTI) expects Singapore GDP growth of 3.0% S$ psf per month Orchard Pri
Slide 8: FCT is well-positioned to ride the structural trends in the new normal
FCT is well-positioned to ride the structural trends in the new normal Rising WFH trend bodes well for FCT’s suburban malls which are near homes and transportation nodes. FCT’s focus on essential trade mix expected to benefit as consumers prioritise spending allocation on necessities. Rising demand
Slide 9: Financial performance
Financial performance
Slide 10: 2H2022 results versus 2H2021
Increase / S$’000 2H2022 2H2021 (Decrease) Gross revenue 180,744 167,535 7.9% Property expenses (52,626) (46,626) 12.9% Net property income 128,118 120,909 6.0% Distributable income 100,673 103,576 (2.8%) Distribution to Unitholders* 103,776 103,576 0.2% Distribution per Unit (S cents) 6.091 6.089 -
Slide 11: FY2022 results versus FY2021
Increase / S$’000 FY2022 FY2021 (Decrease) Gross revenue 356,931 341,149 4.6% Property expenses (98,334) (94,582) 4.0% Net property income 258,597 246,567 4.9% Distributable income 209,884 204,674 2.5% Distribution to Unitholders* 208,190 204,674 1.7% Distribution per Unit (S cents) 12.227 12.085 1.
Slide 12: Statements of financial position
S$’000 30 September 2022 30 September 2021 Non-current assets 5,891,015 5,847,568 Current assets 50,353 51,229 Total assets 5,941,368 5,898,797 Current liabilities 507,361 322,198 Non-current liabilities 1,469,930 1,657,791 Total liabilities 1,977,291 1,979,989 Net assets 3,964,077 3,918,808 Net ass
Slide 13: Debt maturity profile as at 30 September 2022
30 Sep 22 30 Jun 22 Debt maturity profile as at 30 September 2022 Total Borrowings: S$1,815 million Average debt maturity (years) 2.03 2.31 (% represents as proportion of total borrowings) Aggregate leverage2 33.0% 33.9% S$511 million S$472 million (28.2%) Interest Cover (times)3 5.19 5.17 (26.0
Slide 14: Investment properties appraised value
30 September 2022 30 September 2021 Investment properties Appraised value Appraised value Appraised value Appraised value Cap Rate Cap Rate (S$ million) (S$ psf NLA2) (S$ million) (S$ psf NLA2) Causeway Point 1,323.0 3,152 4.75% 1,312.0 3,127 4.75% Northpoint City North Wing 778.0 3,927 4.75% 771.5
Slide 15: Distribution for 1 April 2022 to 30 September 2022
Distribution for 1 April 2022 to 30 September 2022 Distribution per Unit 6.091 S cents Ex date 9.00 a.m. on 2 November 2022 (Wednesday) Books closure date 5.00 p.m. on 3 November 2022 (Thursday) Payment date 29 November 2022 (Tuesday) We are Frasers Property 15
Slide 16: Portfolio performance
Waterway Point, Singapore Portfolio performance
Slide 17: Stable portfolio occupancy
Stable portfolio occupancy Quality portfolio with resilient performance • Any discrepancies between individual amount and the aggregate is due to rounding. We are Frasers Property 17
Slide 18: Continued focus on asset and property management
Continued focus on asset and property management Note: The properties (outlined in blue) in the ARF acquisition include Tampines 1, Tiong Bahru Plaza, Century Square, Hougang Mall, White Sands and Central Plaza. The FY2021 financials for these properties were from 28 October 2020 to 30 September 202
Slide 19: Higher shopper traffic and tenants' sales versus FY2021
Higher shopper traffic and tenants’ sales versus FY2021 Retail portfolio tenants’ sale averaged 10% above pre-COVID levels in first 3 quarters of 2022 FY2022 retail portfolio tenants’ sales is 11.3% higher versus FY2021. FY2022 portfolio shopper traffic is 12.4% higher versus FY2021. We are Fras
Slide 20: Improving retail portfolio occupancy cost
Improving retail portfolio occupancy cost Tenant mix curation and targeted marketing to improve space productivity Retail portfolio occupancy cost1 19.2% 17.5% 17.0% 16.6% 16.6% 16.2% 15.7% FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 (Affected by Circuit Breaker) 1. Occupancy cost refers
Slide 21: Improved rental reversion compared to FY2021
Improved rental reversion compared to FY20211 Stronger leasing demand with normalization of the economy No. of NLA YTD incoming vs YTD average vs Property Renewals / As percentage of outgoing rental average rental New Leases Area (sq ft) reversion reversion Mall Causeway Point 58 171,312 41% 1.6% 4.
Slide 22: Well-spread lease maturity profile
Well-spread lease maturity profile Lease tenure is typically 3 years Lease expiry profile of FCT retail portfolio as % of Total GRI WALE @ 30 September 2022 1.87 years by NLA (3Q22: 1.85 years) 1.78 years by GRI (3Q22: 1.78 years) Lease expiry1,2 as at FY2027 FY2023 FY2024 FY2025 FY2026 Total 30
Slide 23: No concentration risk in lease renewals in FY2023
No concentration risk in lease renewals in FY2023 Lease expiring in FY2023 as proportion of total GRI of FCT retail portfolio : 27.6% Proportion of lease expiries (by GRI) in FY2023 by asset 32.8% 32.7% 30.9% 30.0% 29.1% 28.9% 27.8% 26.3% 21.8% 19.8% 13.3% Changi City Tampines 1 Northpoint Causeway
Slide 24: Notable openings in 4Q2022
Notable openings in 4Q2022 73 new-to-FCT brands in FY2022 First Don Don Donki in Yishun finally opened its first Safari themed store at Northpoint City in early-Oct. Café BomBom, a popular dessert café chain from South Korea, opened its New to FCT, this is 1st Singapore outlet at also Tiong Bahru Ta
Slide 25: Upcoming new tenancies in FY2023
Upcoming new tenancies in FY2023 Continuous leasing effort to curate and refresh retail offerings Hougang Mall (Nov 22) – New to FCT, Foodies’ Changi City Point (Nov 22) – Garden is a food court Expanded Nike outlet retail space concept by Collin’s that with an enhanced shopping presents a diverse s
Slide 26: Injecting community content to our malls
Injecting community content to our malls Continuous effort to curate marketing program to engage shoppers Little Chef Experience at Mediacorp meet-and-greet at Century Square Tampines 1 Do-It-Yourself (DIY) felt food Meet-and-greet with cast from Channel making experience for kids from 8 drama “Your
Slide 27: Sustainability
Waterway Point, Singapore Sustainability
Slide 28: GRESB update
GRESB update FCT received 5 Star rating in the GRESB 2022 Real Estate Assessment Ranked 2nd out of 8 (up from 3rd) in the Asia Listed Retail peer group with a score of 92 Ranked 2nd out of 25 within Asia Retail universe 2019 2020 2021 2022 Score: 72 Score: 69 Score: 92 Score:
Slide 29: Summary
Waterway Point, Singapore Summary
Slide 30: FCT remains resilient in the new normal
FCT remains resilient in the new normal FY2022 performance Achieved higher revenue, NPI and DPU in FY2022. Healthy financial position with aggregate leverage at 33.0% with stable portfolio appraised valuations. Broad-based improvement in operating performance with rise in shopper traffic and t
Slide 31: Appendix
mm a ERASERS TRUST Appendix
Slide 32: Definition of terms used in this presentation
Definition of terms used in this presentation • 1H2021: first half of FY2021 ended 31 March 2021 • Moody’s: Moody’s Investors Service (credit rating agency) • 1H2022: first half of FY2022 ended 31 March 2022 • MSCI: Morgan Stanley Capital International • 2H2021: second half of FY2021 ended 30 Septem
Slide 33: Portfolio at a glance: S$6.2 billion AUM
Excellent location: All properties malls S$6.2 Asset Under are located on/next billion Management to MRT stations, and they enjoy healthy occupancy Well-located and high recurring 9 suburban retail malls shopper traffic. Large catchment: Retail Portfolio The retail portfolio 2.3m Net Lettable Sq ft
Slide 34: Portfolio overview
Portfolio overview Causeway Point Waterway Point1 Tampines 1 Northpoint City North Wing2 Tiong Bahru Plaza ◆ GFA: 629,160 sq ft ◆ GFA: 542,493 sq ft ◆ GFA: 380,898 sq ft ◆ GFA: 386,922 sq ft ◆ GFA: 294,381 sq ft ◆ NLA: 419,698 sq ft ◆ NLA: 389,444 sq ft ◆ NLA: 268,514 sq ft ◆ NLA: 240,214 sq ft ◆ NL
Slide 35: Well-diversified retail portfolio and essential trade mix
• No single property accounting for more than 19% of total NLA • Retail portfolio trade mix focuses on essential services that underpin resilience and stability Well-diversified retail portfolio Trade mix focuses on essential services White Sands Essential services 54.1%1 7% Hougang Mall 7% Changi C
Slide 36: Growth strategies
Growth strategies To deliver regular and stable distributions to unitholders and achieve long-term growth in NAV ACQUISITION ENHANCEMENT ORGANIC GROWTH GROWTH GROWTH • Explore opportunities to acquire • Asset Enhancement Initiative • Proactive property and asset income-producing properties and (“AEI
Slide 37: Top 10 tenants by gross rental as at 30 September 2022
Top 10 tenants by gross rental as at 30 September 2022 No. Tenants As % of total NLA As % of total GRI 1 NTUC Fairprice1 6.1% 4.1% 2 Breadtalk Group2 2.0% 2.3% 3 Kopitiam3 2.2% 1.9% 4 Dairy Farm Group4 1.5% 1.8% 5 Metro (Private) Limited5 3.0% 1.7% Notes: 6 Hanbaobao Pte. Ltd.6 1.1% 1.6% 1. Includes
Slide 38: Trade Categories as at 30 September 2022
Trade Categories as at 30 September 2022 Trade Classifications As % of total NLA As % of total GRI (by order of decreasing % of Total GRI) Food & Beverage 30.2% 38.0% Beauty & Healthcare 11.8% 15.0% Fashion & Accessories 11.6% 11.5% Sundry & Services 6.0% 8.6% Supermarket & Grocers 10.0% 6.3% Ho
Slide 39: Inspiring experiences, creating places for good.
Inspiring experiences, creating places for good.
Frasers Centrepoint Trust — FY2022 Earnings Presentation on 6ix