Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — FY2015 Earnings Presentation

36 slides from Frasers Property's earnings presentation, Oct 23, 2015

  1. Slide 1: Frasers Commercial Trust 4QFY15 and FY15 Financial Results

    Frasers Commercial Trust 4QFY15 and FY15 Financial Results 23 October 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  Forecast vs. actual 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  Strong performance of Alexandra Technopark bolstered FY15 results  S$67.8 million marks the highest distributable income to Unitholders since the Trust was listed in 2006 1 Full year contribution from Alexandra Technopark following the expiry of the master lease  Ful

  6. Slide 6: Results – 4QFY15 Financial highlights

     Results – 4QFY15 Financial highlights 6  26% rise in distributable income for 4QFY15 1 Jul 2015 – 30 Sept 4QFY15 Y-o-Y Contributing factors 2015 (S$ ‘000) Change (%)  Higher revenue contribution from the underlying leases of Alexandra Technopark following the expiry of the master lease in August

  7. Slide 7: Results – FY15 Financial highlights

     Results – FY15 Financial highlights 7  18% rise in distributable income for FY15 1 Oct 2014 – 30 Sept FY15 Y-o-Y Contributing factors 2015 (S$ ‘000) Change (%)  Full year revenue contribution from the underlying leases of Alexandra Technopark following the expiry of the master lease in August 20

  8. Slide 8: Results – 4QFY15 Financial highlights

     Results – 4QFY15 Financial highlights 8 Higher contribution from Alexandra Technopark following the expiry of the master lease, better performance of China Square Central and 55 Market Street and maiden contribution from 357 Collins Street TOTAL: S$27.4 million 4QFY15 Net Property Singapore: S$16.

  9. Slide 9: Results – FY15 Financial highlights

     Results – FY15 Financial highlights 9 Full year contribution from Alexandra Technopark following the expiry of the master lease, better performance of China Square Central and 55 Market Street and maiden contribution from 357 Collins Street TOTAL: S$101.9 million FY15 Net Property Singapore: S$61.

  10. Slide 10: Results – Financial highlights

     Results – Financial highlights  All-time high in DPU  Sixth consecutive year of DPU growth since recapitalisation exercise  DPU grew at 11.6% CAGR from FY10 – FY15 DPU (Cents) * Adjusted for Unit consolidation

  11. Slide 11: Results – Distribution payment

     Results – Distribution payment 11 DRP will be implemented for the distribution for the period from 3 August 2015 to 30 September 2015 Distribution Period 3 August 2015 to 30 September 2015 Distribution of 1.6069 cents per Unit comprising: a) taxable income distribution of 1.1895 cents; Ordinary Un

  12. Slide 12: Forecast vs actual results

    Forecast vs actual results Z J Pease

  13. Slide 13: Forecast vs actual results for the period 18 August – 30 September 2015

     Forecast vs actual results for the period from 18 August 2015 – 30 September 2015 13  Actual results outperformed forecast:  Actual portfolio distributable income surpassed forecast^ by 12%  Actual net property income of 357 Collins Street was 9% higher than property forecast* Forecast vs actua

  14. Slide 14: Portfolio review

    Portfolio review FRASERS COMMERCIAL

  15. Slide 15: Portfolio review – Valuation

     Portfolio review – Valuation 15  Portfolio value increased to S$2.0 billion with the addition of 357 Collins Street  Higher valuation for:  55 Market Street  Caroline Chisholm Centre based on valuation denominated in AUD Local Variance from 30 Variance from 30 Date of currency Translation as a

  16. Slide 16: Portfolio review – Valuation

     Portfolio review – Valuation 16  Balanced portfolio consisting of Singapore and Australian properties  No one property consist of more than 29% of portfolio value Singapore Perth Canberra Singapore $ 1,209.0 62% Melbourne Australia $ 745.8 38% Total $ 1,954.8 100% As at 30 September 2015. Exclud

  17. Slide 17: Portfolio review – Occupancy Rates & WALE

     Portfolio review – Occupancy Rates & WALE 17  Healthy average occupancy rate of 95.4%  Healthy WALE of 3.5 years Geographical occupancy and % of NPI contribution As at Key portfolio statistics 30 September 2015 Ave Occupancy 95.4% Portfolio WALE by gross 3.5 years rental income As at 30 Septembe

  18. Slide 18: Portfolio review – Lease expiry profile

     Portfolio review – Lease expiry profile 18 18  Proactive leasing reduced lease expiries in FY18 and lengthened lease expiry profile  Well spread lease expiry provides income stability Portfolio lease expiry by gross rental income Portfolio lease expiry by gross rental income Number of leases exp

  19. Slide 19: Portfolio review – Lease expiry profile

     Portfolio review – Lease expiry profile 19 FY16 - Potential for higher income due to low passing rents Property Lease Expiry as a proportion of total Portfolio Gross Rental Income in FY16  Low lease expiry of 7.7% in year of high office supply  New supply are mainly in Grade A/ Premium Grade spa

  20. Slide 20: Portfolio review – Rental reversions

     Portfolio review – Rental reversions 20 Singapore properties continue to achieve positive weighted average rental reversions for new and renewed leases that commenced in 4QFY15 Weighted average rental reversions1 Property 1QFY15 2QFY15 3QFY15 4QFY15 FY15 China Square +1.2% +15.6% +17.0% +8.1% +12.

  21. Slide 21: Portfolio review – Robust leasing activities

     Portfolio review – Robust leasing activities 21  Robust leasing activities  Committed, new and renewed tenants in 4QFY15 include: Tenant Industry Property Superloop (Singapore) Pte Ltd Multimedia & Telecommunications China Square Central Abeam Consulting (Singapore) Pte Ltd Consultancy/ Business

  22. Slide 22: Portfolio review – Mid-term rent reviews

     Portfolio review – Mid-term rent reviews 22 22 More than 53% of leases have built-in step-up rents FY16 - Fixed % and other fixed lease rent reviews FY16 – 19 - Portfolio fixed % reviews GROSS RENTAL INCOME Average Total Property Leases step-up rent Property Portfolio China Square 3 2.5% 4.0% 0.8%

  23. Slide 23: Portfolio review – Stability of income

     Portfolio review – Stability of income 23 Top 10 tenants:  Established and well diversified across various sectors  MNCs, government department or public listed companies  Contribute 57% of portfolio gross rental income and have a long WALE of 5.8 years Top 10 tenants by gross rental income % (

  24. Slide 24: Asset updates – 357 Collins Street

     Asset updates – 357 Collins Street 24  Acquisition of 357 Collins Street completed on 18 August 2015  More than 80% of the leases will expire in FY2020 and beyond, providing income stability  97.2% of leases have rental escalation of 3.75% - 4.00% p.a., providing good organic growth  High occu

  25. Slide 25: Portfolio review – Singapore asset updates

     Portfolio review – Singapore asset updates 25 China Square Central – healthy 55 Market Street – Alexandra Technopark – occupancy rate healthy occupancy rate healthy occupancy rate Occupancy 96.2%^ (office tower: 98.3%) 95.8% 94.6% WALE 1.8 years 1.5 years 1.6 years New leases, Superloop (Singapore

  26. Slide 26: Portfolio review – Australia asset updates

     Portfolio review – Australia asset updates 26 Caroline Chisholm Centre Central Park – Healthy WALE of – full occupancy with 357 Collins Street – high 2.9 years long WALE of 9.8 years occupancy rate Occupancy 88.6% 100.0% 98.4% WALE 2.9 years (7.1 years with new lease^) 9.8 years 5.6 years New leas

  27. Slide 27: Capital management

    Capital management FRASERS COMMERCIAL

  28. Slide 28: Capital Management – Debt statistics

    28  Capital Management – Debt statistics 28  Healthy interest coverage ratio of 4.57 times  Low average interest rate of 2.96%  Borrowings in AUD provide natural hedge for the Australian properties Statistics Borrowings and assets by currency As at 30 September 2015 Total Assets (S$’000) 2,034,4

  29. Slide 29: Capital Management and debt statistics

    29  Capital Management and debt statistics 29  Well spread debt maturity profile  No refinancing required until FY17  All debts are unsecured  Hedged 81% of gross borrowings on fixed rate Debt maturity Debt composition – floating vs. hedged Weighted average term to maturity: 3.3 years 1 Hedging

  30. Slide 30: Moving forward

    Moving forward

  31. Slide 31: Solid fundamentals - Singapore office rents

     Solid fundamentals - Singapore office rents 31 Singapore office rental growth continues to moderate in 2Q 2015 Raffles Place/ Average Q-o-q change  Singapore’s office property market continued to New monthly gross (%) consolidate in 2Q 2015 Downtown rents (S$ psf micro-market per month) 2Q2015 

  32. Slide 32: Solid fundamentals - Singapore business park and high-specs rents

     Solid fundamentals - Singapore business park and high-specs rents 32 Rents for business park and independent high-specs space expected to moderate or stabilise Average Q-o-q change  Rents for higher-specification (high-specs) industrial space monthly gross (%) (upper floors) stayed firm at S$3.13

  33. Slide 33: Perth CBD office supply and rents

     Perth CBD office supply and rents 33  Perth Premium Grade average net face rent was A$745 psm per annum  Incentives for Premium space range between 35% and 40% Perth CBD office supply, net absorption and vacancy rate 1 Perth CBD office market average net face rents 1 Market conditions 1  Accord

  34. Slide 34: Melbourne CBD office supply and rents

     Melbourne CBD office supply and rents 34  Melbourne Grade A office net face rent was A$458 psm per annum and is expected to increase by 2.0% in the 12 months to July 2016  Melbourne CBD office leasing market continues to experience solid demand Melbourne CBD office market and absorption1 Market

  35. Slide 35: Delivering growth

     Delivering growth 35 35 Organic and in-organic initiatives to deliver growth in distributable income Grow portfolio organically and inorganically Positive rental Asset enhancement reversions DPU initiatives Prudent capital management

  36. Slide 36: 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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