Frasers Centrepoint Trust · SGX:J69U

Frasers Centrepoint Trust — Q1 FY2018 Earnings Presentation

59 slides from Frasers Centrepoint Trust's earnings presentation, February 2018

  1. Slide 1: Frasers Centrepoint Trust Investor Presentation February 2018

    Frasers Centrepoint Trust Investor Presentation February 2018

  2. Slide 2: Important notice: Forward-looking statements

    Important notice Forward-looking statements  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 wh

  3. Slide 3: Contents

    Contents Outline  Overview 4  Highlights from Financial Results for 1QFY18 ended 31 December 2017 17  Northpoint City North Wing AEI Update 36  Outlook 42  Appendix 45 3

  4. Slide 4: Frasers Centrepoint Trust (FCT)

    Overview Frasers Centrepoint Trust (FCT)  Six suburban retail properties located in Singapore’s densely-populated residential areas, with excellent Market Cap of footfall catchment and connection to public transport S$2.1 billion1 infrastructure Bloomberg: FCT SP  Tenancy-mix focused on necessity

  5. Slide 5: Largest REIT by market cap within Frasers Property

    Overview Largest REIT by market cap within Frasers Property Europe & Singapore Australia Hospitality Rest of Asia Multi- Multi- Retail Commercial Industrial Hospitality Multi-Segment Segment Segment As at 29 Dec 2017 1. Frasers Property Limited. Listed on SGX since Jan 2014, market cap of S$6.06b 2.

  6. Slide 6: Portfolio of six suburban retail properties

    Overview Portfolio of six suburban retail properties  Well-located suburban retail properties that enjoy good connectivity to public transport, high footfall and high occupancy Anchorpoint YewTee Point Causeway Point Northpoint City Bedok Point Changi City Point North Wing1 Legend Existing MRT Line

  7. Slide 7: Overview of FCT's portfolio

    Appendix: Portfolio Information Overview of FCT’s portfolio* Causeway Point Bedok Point NLA 415,626 sq ft NLA 82,713 sq ft Footfall 24.5 million Footfall 4.4 million Revenue $84.7 million Revenue $7.3 million NPI $65.5 million NPI $3.7 million Northpoint City North Wing (a) (Including Yishun 10 reta

  8. Slide 8: Total appraised value of S$2.67 billion

    Total appraised value of S$2.67 billion Valuation by Properties (S$ million) All valuations are as at 30 September 2017 Percentage figures represent property value as proportion of total appraised value of S$2,668.1 million Causeway Point 1,190.0 44.6% Northpoint City North Wing & 772.5 Yishun 10 Re

  9. Slide 9: Many reasons for shoppers to visit our malls

    Overview Many reasons for shoppers to visit our malls  Diversified tenant base that focuses on necessity and convenience shopping; staple F&B; and services to sustain footfall and tenants’ sale Necessity shopping Fun for the family Delightful shopper experiences Everyday dining Essential services S

  10. Slide 10: Consistent performance

    Consistent performance Revenue and Net Property Income (S$ million) Net Property Income Gross Revenue 189.2 183.8 181.6 168.8 158.0 147.2 131.0 129.8 129.6 117.9 118.1 114.7 111.6 104.4 84.7 86.6 82.6 80.1 56.6 59.9 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016* FY2017* * Revenue an

  11. Slide 11: Steady DPU growth

    Steady DPU growth • 11 consecutive years of DPU growth Distribution per Unit (S cents) 11.608 11.764 11.9 10.93 11.187 10.01 8.2 8.32 7.29 7.51 6.55 6.03 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 (IPO)* * Annualised DPU for the period 5 Jul 06 (IPO) to 30 Se

  12. Slide 12: Strong financial position

    Overview Strong financial position Key financial indicators Gearing level of SREIT by sector1 as at 31 December 2017 Gearing level1 29.4% 36.9% FCT’s gearing level 35.9% is one of the lowest Interest Cover2 6.49 times 34.9% Overall average 34.3% among SREITs 34.7% Weighted average debt 2.7 years 32.

  13. Slide 13: Clear growth strategies

    Overview Clear growth strategies  Growing the portfolio through accretive acquisitions of quality retail properties from Sponsor’s pipeline and/or 3rd party assets, in both Singapore and overseas  To enhance the yield and returns for unitholders while improving portfolio Acquisition diversificatio

  14. Slide 14: Frasers Property's retail assets in Singapore

    Overview Frasers Property’s retail assets in Singapore Northpoint City North Wing Northpoint City South Wing (FPL owns 100%) Causeway Point YewTee Point Singapore The Centrepoint Waterway Point (FPL owns 33.3%) Bedok Point Eastpoint Anchorpoint Robertson Walk Changi City Point Valley Point (6) Owned

  15. Slide 15: 4 acquisitions and 4 AEIs completed

    Overview 4 acquisitions and 4 AEIs completed Northpoint 2 Yishun 10 Retail YewTee Point Bedok Point Changi City Point Podium Purchase price: $290.2m Purchase price: $127.0m Purchase price: $305.0m Purchase price: $37.75m Acquired: 5 Feb 2010 Acquired: 23 Sep 2011 Acquired: 16 Jun 2014 Acquired: 16 N

  16. Slide 16: Summary

    Overview Summary  Well-located suburban retail properties that enjoy good connectivity to public transport, high footfall and high occupancy Quality assets  Diversified tenant base that focuses on necessity and convenience shopping; staple and F&B; and services to sustain footfall and tenants’ sal

  17. Slide 17: Financial Results for 1st Quarter FY2018

    Frasers Centrepoint Trust Financial Results for 1st Quarter FY2018 ended 31 December 2017

  18. Slide 18: 1Q18 Results highlights

    Results - Highlights 1Q18 Results highlights Financial performance  1Q18 DPU of 3.00 cents, up 3.8% year-on-year (1Q17 DPU: 2.89 cents)  1Q18 Gross Revenue of $47.9 million, up 8.7% year-on-year  1Q18 Net Property Income of $34.5 million, up 9.1% year-on-year  NAV per Unit of $2.02 as at 31 Dece

  19. Slide 19: 1Q18 Revenue lifted by higher rental income

    Results - Highlights 1Q18 Revenue lifted by higher rental income 1Q18 (a) 1Q17 Y-o-Y $’000 Oct 17 to Dec Oct 16 to Dec Comments change 17 16 Growth driven by higher contributions from Northpoint City North Wing and Gross Revenue 47,910 44,075 ▲ 8.7% higher rental revenue from Causeway Point and Chan

  20. Slide 20: FCT delivers higher quarterly DPU

    Results - Highlights FCT delivers higher quarterly DPU DPU (S cents) ▲ 3.8% year-on-year ▲ 1.0% quarter-on-quarter 3.039 3.040 3.040 3.00 3.00 2.970 2.87 2.890 2.82 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 20

  21. Slide 21: 1Q18 Revenue up 8.7% year-on-year

    Results – Performance by properties 1Q18 Revenue up 8.7% year-on-year  Growth driven by higher contributions from Northpoint City North Wing as well as from higher rental revenue from Causeway Point and Changi City Point Gross Revenue $ million 1Q18 1Q17 Higher rental Higher rental Higher rental Lo

  22. Slide 22: 1Q18 Property Expenses 7.7% higher year-on-year

    Results – Performance by properties 1Q18 Property Expenses 7.7% higher year-on-year  Higher expenses mainly due to higher maintenance expenses and utility tariff rates Property Expenses $ million 1Q18 1Q17 Higher Higher property Higher Lower property Higher electricity tariff management maintenance

  23. Slide 23: 1Q18 Net Property Income up 9.1% year-on-year

    1Q18 Net Property Income up 9.1% year-on-year  Key NPI growth drivers – Northpoint City North Wing and Changi City Point Net Property Income (NPI) $ million 1Q18 1Q17 ▲ 9.1% Due to higher 34.51 revenue 31.64 achieved ▼ 1.1% 16.49 16.68 ▲ 54.4% 9.79 ▲ 4.1% ▼ 3.0% 6.34 ▼ 38.8% No Change 3.80 3.65 2.5

  24. Slide 24: The larger malls account for 87.1% of portfolio NPI

    Results – NPI contribution by properties The larger malls account for 87.1% of portfolio NPI Percentage of 1Q18 Net Property Income (NPI) contribution by property Bedok Point Anchorpoint 2.1% 3.4% YewTee Point 7.4% Causeway Point 47.8% Changi City Point 11.0% Northpoint City North Wing + Yishun 10 2

  25. Slide 25: Balance sheet

    Balance sheet

  26. Slide 26: Strong financial position with gearing level at 29.4%

    Balance sheet Strong financial position with gearing level at 29.4% As at 31 December 17 30 September 17 Gearing ratio1 29.4% 29.0% Interest cover for the quarter2 6.49 times 6.85 times Total borrowings $814 million $798 million % of borrowing on fixed rates or hedged via interest rate 55% 55% swaps

  27. Slide 27: NAV maintains at $2.02 per unit

    Balance sheet NAV maintains at $2.02 per unit 31 Dec 2017 30 Sep 2017 As at S$’000 S$’000 Non-current assets 2,739,803 2,733,061 Current assets 27,326 17,804 Total assets 2,767,129 2,750,865 Current liabilities (146,399) (202,016) Non-current liabilities (746,301) (676,646) Total liabilities (892,70

  28. Slide 28: Weighted average debt maturity: 2.7 years

    Balance sheet Weighted average debt maturity @ 31 Dec 2017: 2.7 years Type of borrowings Aggregate amount Unsecured bank borrowings S$158 million (19.4%) Medium Term Note S$370 million (45.5%) Secured bank borrowings* S$286 million (35.1%) Total Borrowings S$814 million (100.0%) $266m (32.7% of tota

  29. Slide 29: Operational performance

    : Zz FRASERS “Og CENTREPOINT TRUST Operational performance

  30. Slide 30: Portfolio occupancy at 92.6%, up from 92.0% Q-o-Q

    Operational performance Portfolio occupancy at 92.6%, up from 92.0% Q-o-Q  Northpoint City North Wing occupancy improved to 86.8% from 81.9% a year ago Mall Occupancy 31 Dec 16 31 Mar 17 30 June 17 30 Sep 17 31 Dec 17 Causeway Point 99.7% 99.3% 99.1% 99.5% 99.9% Northpoint City North Wing 81.9% 60.

  31. Slide 31: 1Q18 average rental reversion at +1.0%

    Operational performance 1Q18 average rental reversion at +1.0%  Excluding Bedok Point, average rental reversion of portfolio is +3.3% 1Q18 Leased area Change compared to (1 Oct – 31 Dec 2017) No. of renewals As % Mall’s NLA preceding rental rates1 Renewed (sq ft) Causeway Point 23 29,191 7.0% +5.5%

  32. Slide 32: Maintaining positive rental reversions through economic cycles

    Operational performance Maintaining positive rental reversions through economic cycles FCT Portfolio Average Rental Reversions1 15.0% 14.0% 12.8% 12.1% 9.9% 8.6% 7.7% 7.2% 6.5% 6.3% 5.1% 1.0% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 1QFY18 1. Based on the variance

  33. Slide 33: Portfolio Lease Expiry as at 31 December 2017

    Operational performance Portfolio Lease Expiry as at 31 December 2017 Expiry profile as % of total gross rental income Weighted Average Lease Expiry (WALE) By NLA 1.87 years 36.4% (4Q17: 1.82 years) 26.9% 18.7% By Gross Rent 1.80 years 12.5% (4Q17: 1.73 years) 5.4% Lease expiry1 as at 31 Dec 2017 FY

  34. Slide 34: The larger malls account for 67% of leased area to be renewed

    The 3 larger malls account for 67% of the leased area to be renewed in remaining 9 months of FY2018 As at 31 December 2017 Number of Lease Area Remaining 9 months in as % of leased as % of total gross Leases Expiring FY2018 area of Mall rent of Mall Expiring (sq ft) Causeway Point 54 78,802 19.0% 20

  35. Slide 35: Shopper traffic improved 1.4% y-o-y

    Shopper traffic improved 1.4% y-o-y* • Positive shopper traffic growth at Causeway Point and Changi City Point offsets the mixed performance at the smaller malls • Shopper traffic through Northpoint City North Wing is 32.6% lower compared to the same period last year due to closure of some entrances

  36. Slide 36: Northpoint City North Wing AEI update

    Northpoint City North Wing AEI update

  37. Slide 37: Overview of Northpoint City

    Northpoint City North Wing AEI update Overview of Northpoint City Northpoint City North Wing Northpoint City South Wing 100%-owned by FCT 100%-owned by Frasers Property NLA @ 30 Sep 2017: 218,172 sq ft NLA @ 30 Sep 2017: 290,831 sq ft 37

  38. Slide 38: Highlights of the AEI at Northpoint City North Wing

    Northpoint City North Wing AEI update Highlights of the AEI at Northpoint City North Wing  Integration works with South Wing have been completed with 99% of the reconfigured areas leased and handed over to tenants.  Average gross rental rate (per square foot) of North Wing after stabilisation is e

  39. Slide 39: New F&B concepts and brands

    Northpoint City North Wing AEI update New F&B concepts and brands TAKEZO RAMEN PUTIEN HOKKAIDO BAKED CHEESE TART TENDERFRESH A ONE CLAYPOT HOUSE JINJJA!! CHICKEN

  40. Slide 40: New facade that links North Wing and South Wing

    Northpoint City North Wing AEI update New facade that links North Wing and South Wing of Northpoint City

  41. Slide 41: Wider and brighter atrium

    Northpoint City North Wing AEI update Wider and brighter atrium

  42. Slide 42: Outlook

    _Z FRASERS “Og CENTREPOINT TRUST Outlook

  43. Slide 43: FCT's malls expected to remain resilient

    Outlook FCT’s malls expected to remain resilient  Singapore’s economy grew by 3.5% in 2017 in line with MTI’s forecast.  At Northpoint City North Wing, integration works with South Wing have been completed with 99% of the reconfigured areas leased and handed over to the tenants.  Despite continui

  44. Slide 44: ey iRinrrons

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  45. Slide 45: Appendix

    _Z FRASERS “Og CENTREPOINT TRUST Appendix

  46. Slide 46: Debt Information

    Debt Information Average cost of Borrowings (all-in) 2.4% Annualised based on rates fixed @ 31 December 2017 Moody's rating Baa1 S&P rating BBB+ Interest cover (EBIT/Σinterest) (times) 6.49 For the quarter 1 Oct - 31 Dec 2017 Gearing 29.4% as at 31 Dec 2017 % of Total Description Amount ($m) Expiry

  47. Slide 47: Portfolio Lease expiry profile as at 31 December 2017

    Portfolio Lease expiry profile as at 31 December 2017 as at 31 December 2017 FY2018 FY2019 FY2020 FY2021 FY2022 Total Causeway Point No of leases 54 74 74 24 1 227 Expiries as % Total NLA 19.0% 36.1% 31.7% 11.0% 2.3% 100.0% NLA (sq ft) Expiring 78,802 149,954 131,776 45,597 9,544 415,673 Expiries as

  48. Slide 48: Trade mix as at 31 December 2017

    Trade mix as at 31 December 2017 Trade Classifications As % of As % of total (in descending order of % rent) total NLA Gross Rental Income 1 Food & Restaurants 31.4% 37.9% 2 Fashion 14.1% 19.2% 3 Services/Education 6.7% 8.6% 4 Beauty, Hair, Cosmetics, Personal Care 5.2% 7.5% 5 Household 8.1% 7.1% 6

  49. Slide 49: Top 10 tenants by gross rental as at 31 December 2017

    Top 10 tenants by gross rental as at 31 December 2017 As % of As % of total Gross Tenant total NLA Rental Income 1 Cold Storage Singapore (1983) Pte Ltd1 5.4% 4.3% 2 Copitiam Pte Ltd2 3.8% 3.7% 3 Metro (Private) Limited3 5.6% 3.5% 4 Courts (Singapore) Limited 3.3% 2.8% 5 NTUC Fairprice Co-operative4

  50. Slide 50: Historical portfolio information by quarter

    Historical portfolio information by quarter Occupancy by Properties Note: Yellow cells means property is undergoing AEI Property (Occupancy rate as at end of each quarter) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Causeway Point 99.2% 98.8% 99.0% 99.8% 99.7% 99.3% 99.1% 99.5% 99.9% Northpoint Cit

  51. Slide 51: Summary of FCT's portfolio of properties

    Appendix: Portfolio Information Summary of FCT’s portfolio of properties FCT Portfolio Northpoint City Yishun 10 Changi City Causeway Point Bedok Point YewTee Point Anchorpoint North Wing Retail Podium Point Net Lettable 415,626 218,172^ 10,412 207,239 82,713 73,670 70,989 Area (sq ft)* 99 years lea

  52. Slide 52: Total appraised value of portfolio properties: $2.7 billion

    Appendix: Appraised Value of Portfolio Properties Total appraised value of portfolio properties: $2.7 billion FY2017 FY2016 Valuation @30.09.2017 Valuation @30.09.2016 Property Valuation Valuation Valuation Valuation Cap rate (a) Valuer Cap rate (a) Valuer ($ million) ($ psf NLA) ($ million) ($ psf

  53. Slide 53: FCT's investment in Hektar REIT

    Appendix: FCT’s Investment in Hektar REIT FCT’s investment in Hektar REIT  FCT holds a 31.15% stake in Malaysia-listed Hektar REIT as at 30 September 2017. Hektar REIT portfolio comprises 6 retail malls in Malaysia 1. Subang Parade (Subang Jaya, Selangor) 2. Mahkota Parade (Bandar Melaka, Melaka) 3

  54. Slide 54: Research coverage

    Research coverage Firm name (alphabetical order) Analyst Bank of America Merrill Lynch Chua Donald CIMB Lock Mun Yee Citi Research Adrian Chua CLSA Tan Xuan Credit Suisse Nicholas Teh Daiwa David Lum DBS Vickers Derek Tan HSBC Pratik Ray JP Morgan Brandon Lee KGI Nicholas Siew Maybank Kim Eng Su Tye

  55. Slide 55: Healthy macro-economic fundamentals

    Healthy macro-economic fundamentals Household median income in Singapore Low unemployment rate in Singapore continues to grow (S$) 3.0 9,023 8,666 8,846 8,292 7,872 7,566 7,037 2.2 2.2 2.2 2.1 2.1 6,342 2.0 2.0 2.0 6,100 6,006 1.9 1.9 5,362 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007

  56. Slide 56: Singapore Retail Sales Index (RSI)

    Singapore Retail Sales Index (RSI)  Percentage Change Over Corresponding Period Of Previous Year At Current Prices (excluding motor vehicle and petrol service) 2016 2017 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Novp Total (excl Motor Vehicles) -2.5 0.6 2.1 -4.9 0.6 4.8 0.6 4.1 2.0 3.9 3.2 0.

  57. Slide 57: FCT Historical Trading Data

    FCT Historical Trading Data 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unit Price (S$) Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Highest 1.890 1.460 1.400 1.580 1.570 2.020 2.320 2.000 2.150 2.210 2.250 Lowest 1.300 0.490 0.560 1.260 1.375 1.

  58. Slide 58: Accolades in 2017

    Accolades in 2017  IR Magazine Awards – South East Asia 2017 1. Best Overall Investor Relations 2. Best Investor Relations Officer (small to mid-cap) 3. Best in Sector (Real Estate) 4. Best in Country (Singapore) 5. Best Investor Relations by a Senior Management team  BEST SUSTAINABLE GROWTH REIT

  59. Slide 59: Experience ‘GY ) Ss) oh

    Experience ‘GY ) Ss) oh matters. -Q- An

Frasers Centrepoint Trust — Q1 FY2018 Earnings Presentation on 6ix