Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Commercial Trust — Q1 2009 Earnings Presentation
37 slides from Frasers Property's earnings presentation, Apr 30, 2009
Slide 1: Frasers Commercial Trust 1Q2009 Financial Results
Frasers Commercial Trust 1Q2009 Financial Results 30 April 2009
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
Slide 3: Agenda
Agenda 3 1Q2009 Results Quarter in review Market conditions Financial highlights Portfolio review Valuations Lease expiry profile Mid-term rent reviews Asset updates Capital management Snapshot & debt maturity profile Interest risk profile Portfolio detail Net property in
Slide 4: 1Q2009 Results
1Q2009 Results mm GH (ounenast TRUST
Slide 5: 1Q2009 Results – Quarter in review
1Q2009 Results – Quarter in review 5 1Q2009: challenging quarter, working on measures to strengthen FrasersComm Asset valuations: – further write-downs on selected assets, recognising softened office market since mid-2008 – Singapore softening has now come through, rate of decline in Australian
Slide 6: 1Q2009 Results – Market conditions
1Q2009 Results – Market conditions 6 S-REIT sector faces a continued difficult operating environment in 2009 Presents significant challenges for all S-REITs – Pressure on the availability and cost of debt – Pressure on property values – Decline in tenant demand for office space Face a challeng
Slide 7: 1Q2009 Results – Financial highlights (1Q2009 v 1Q2008)
1Q2009 Results – Financial highlights 7 1Q2009 v 1Q2008: y-on-y weaker distributable income stemming from increased borrowing expenses under previous debt extension terms 1 January to 31 March 1Q2009 1Q2008 Y-on-y change Contributing factors (S$’000) (S$’000) (%) Termination of income support fo
Slide 8: 1Q2009 Results – Financial highlights (1Q2009 v 4Q2008)
1Q2009 Results – Financial highlights 8 1Q2009 v 4Q2008: stable NPI q-on-q performance, debt cost impact on DPU 1Q2009 4Q2008 Q-on-q change Contributing factors (S$’000) (S$’000) (%) 3.7% Reduction of income support for KeyPoint Gross Revenue 23,962 24,888 Reduced contribution from Cosmo Plaza
Slide 9: Portfolio review
Portfolio review mm GH (ounenast TRUST
Slide 10: Portfolio review – Valuations
Portfolio review – Valuations 10 Fair values: revaluations completed as market conditions have changed, to reflect most current NAV of S$0.79 per Unit Variance from 31 December 2008 Local currency Translation as at Date of value 31 March 2009 Valuation impact FX translation impact Asset valuation
Slide 11: Portfolio review – Lease expiry profile
Portfolio review – Lease expiry profile 11 11 Lease expiry profile: Australian properties anchor the long weighted average lease expiry, providing a secure long-term income stream Portfolio lease expiries Key portfolio statistics * as a % of gross rental >55% gross rental income expires post-2010
Slide 12: Portfolio review – Upcoming lease expiries
Portfolio review – Lease expiry profile 12 Upcoming lease expiries: upcoming expiries’ current passing rent still below or at market, providing buffer for renewals and new leasing Balance FY2009 key lease expiries GROSS RENTAL INCOME NET LETTABLE AREA(NLA) Leasing factors Property Leases Average p
Slide 13: Portfolio review – Mid-term rent reviews
Portfolio review – Mid-term rent reviews 13 13 Fixed rent step-ups: over 28% of the Trust’s current gross rental has in-built average organic growth of approximately 4% for the balance of FY2009 Balance of FY2009 - Fixed % mid-lease term rent reviews GROSS RENTAL INCOME Average fixed rent Property
Slide 14: Asset updates – KeyPoint
Portfolio review – Asset updates 14 KeyPoint Tenancy activity: – New retail tenants secured for KeyPoint include Banquet, 7-Eleven, two travel agencies and a Hong Kong pastries shop – Non-renewals in 1Q2009 were completely offset by new leases and renewals; tenant retention increasingly a major
Slide 15: Asset updates – KeyPoint
Portfolio review – Asset updates 15 KeyPoint New courtyard dining – artist impression New Banquet-operated food court Part of KeyPoint’s New Banquet food court opened recently courtyard is being at KeyPoint, adding to amenity of the converted to an property through the vibrant new fit-out al-fresc
Slide 16: Asset updates – New F&B offerings boost attractiveness
Portfolio review – Asset updates 16 New F&B offerings boost attractiveness of office tenancies China Square Central: Galleria Otemae: – Vacant South Bridge Road-fronted shop houses are now – Manager has successfully leased three additional retail fully leased units in the basement – Singapore-styl
Slide 17: Asset updates – Caroline Chisholm Centre
Portfolio review – Asset updates 17 Caroline Chisholm Centre Joint owner: – receivers and managers have been appointed to the assets of Record Funds Management Limited as responsible entity of Record Realty Trust (“RRT”) – FrasersComm and RRT each indirectly own 50.0% of units in Athllon Drive L
Slide 18: Asset updates – Cosmo Plaza, Osaka
Portfolio review – Asset updates 18 Cosmo Plaza, Osaka Divestment strategy: – agent has been appointed for marketing the property for sale – updates on sales progress will be made in due course Valuation: – completed as at 31 March and reflective of current Japanese market and current tenancy
Slide 19: Asset updates – Australian Wholesale Property Fund
Portfolio review – Asset updates 19 Australian Wholesale Property Fund (AWPF) On 23 February 2009, Permanent Investment Management Limited (“PIML”) replaced Record Funds Management Limited (“RFML”) as responsible entity of Allco Wholesale Property Fund PIML is a wholly owned subsidiary of Trus
Slide 20: Capital management
Capital management 2. J IRASERS TRUST
Slide 21: Capital management – Snapshot & debt maturity profile
Capital management – Snapshot & debt maturity profile 21 Continued focus: exploring various options available to strengthen balance sheet and refinance debt Snapshot Debt maturity profile As at 31 March As at 31 March S$'million 2009 2008 S$ Revolving Loan S$ Loan Note Facility S$’000 S$’000 S$ Lo
Slide 22: Capital management – Interest risk profile
Capital management – Interest risk profile 22 Key management action: improve interest profile through refinancing and strengthening of balance sheet Debt statistics Fixed interest rate profile As at 31 March 2009 S$’000 2012, 35% Interest coverage ratio * 1.8 times 2009, 64% Weighted average debt
Slide 23: Portfolio detail
Portfolio detail 2. J IRASERS TRUST
Slide 24: Portfolio detail – Net property income
Portfolio detail – 1Q2009 results 24 Net property income trends: varying NPI due to softening A$, loss of income support at Central Park and KeyPoint, but China Square Central and 55 Market Street stable Net property income (S$m) 6.60 TOTAL: S$18.668 million 1Q2009 Singapore: S$8.866 million (48%)
Slide 25: Portfolio detail – Asset diversification
Portfolio detail – Asset diversification 25 Geographic and asset diversification: Pan-Asian investment strategy limits exposure to any one concentrated property market Asset values 1 Net property income TOTAL: S$1,556.8 million TOTAL: S$18.668 million 1Q2009 Singapore: S$934.2 million (60%) Singap
Slide 26: Portfolio detail – Tenant diversification
Portfolio detail – Tenant diversification 26 Tenant diversity: broad tenant base underpinned by government and strong global corporates Portfolio tenant mix – gross rental income * Well-recognised tenants Banking, Insurance & Financial 19.7% Services 16.4% Sector Tenants Government and Government
Slide 27: China Square Central, Singapore
China Square Central, Singapore 27 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 28: 55 Market Street, Singapore
55 Market Street, Singapore 28 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 29: KeyPoint, Singapore
KeyPoint, Singapore 29 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 30: Central Park, Perth
Central Park, Perth 30 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 31: Caroline Chisholm Centre, Canberra
Caroline Chisholm Centre (Centrelink Headquarters), Canberra 31 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 32: Cosmo Plaza, Osaka
Cosmo Plaza, Osaka 32 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 33: Azabu Aco Building, Tokyo
Azabu Aco Building, Tokyo 33 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 34: Ebara Techno-Serve Headquarters Building, Tokyo
Ebara Techno-Serve Headquarters Building, Tokyo 34 34 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 35: Galleria Otemae Building, Osaka
Galleria Otemae Building, Osaka 35 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 36: Australian Wholesale Property Fund (AWPF), Sydney
Australian Wholesale Property Fund (AWPF), Sydney 36 36 Diversified Australian property portfolio Providing exposure to Sydney CBA office and retail and suburban Sydney retail assets No ‘fees on fees’ Key Investment Statistics Current unit holding 39,758,513 Current investment A$25.3m (S$26.3
Slide 37: Thank you
Thank you Frasers Centrepoint Asset Management (Commercial) Limited Level 21 | 438 Alexandra Road | Singapore 119958 Tel: +65 6276 4882| Fax: +65 6276 8942| Email: fcot@fraserscentrepoint.com www. fraserscommercialtrust.com
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