Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Commercial Trust — Shareholder Meeting (January 2014)
29 slides from Frasers Property's shareholder meeting presentation, Jan 22, 2014
Slide 1: Frasers Commercial Trust 5th Annual General Meeting
Frasers Commercial Trust 5th Annual General Meeting 22 January 2014 Growing
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: Contents
Contents 3 Year in review Solid fundamentals Looking ahead
Slide 4: Year in review
in review Year FRASERS COMMERCIAL TRUST 2 FT
Slide 5: Year in review – Financial highlights
Year in review – Financial highlights 55 FY2013 results highlights Net Property Income S$90.6 million ↑ 7.0% (excluding Divestments)1 Distributable Income to S$51.4 million ↑ 19.3% Unitholders Distribution Per Unit 7.83 cents ↑ 17.0% Net Asset Value per Unit2 S$1.57 ↑ 4.7% Singapore Portfolio Occupa
Slide 6: Year in review - Asset values
Year in review - Asset values 6 Balanced portfolio consisting of Singapore and Australian properties Good quality properties, well located with great connectivity No one property consist of more than 32% of property value Caroline Chisholm Asset values as at 30 Sept 2013 Centre, 12.9% Singapore $ 1,
Slide 7: Year in review - Healthy occupancy rates & WALE
Year in review - Healthy occupancy rates & WALE 7 Resilient, quality properties with enduring tenant appeal Healthy average portfolio occupancy rate of 97.9% Geographical occupancy and % of NPI contribution As at Key portfolio statistics 30 September 2013 WALE by gross rental income 4.6 years Ave Oc
Slide 8: Year in review - Highest distributable income to Unitholders
Year in review - Highest distributable income to Unitholders 8 Highest distributable income to Unitholders despite the divestments of KeyPoint and the Japanese properties Strategies in delivering growth have been effective Reshaping the portfolio Enhancing and Effective capital unlocking management
Slide 9: Initiatives undertaken over the past years – positive effects on DPU
9 Initiatives undertaken over the past years – positive effects on DPU 9 Fourth consecutive year of DPU growth since recapitalisation exercise Distributable income to Unitholders Distribution Per Unit1 S$ million ¢ 2 1 The number of Units used to calculate the distribution per Unit had been adjusted
Slide 10: Initiatives undertaken over the past years – positive effects on NAV
10 Initiatives undertaken over the past years – positive effects on NAV 10 NAV per Unit increased from S$1.50 to S$1.571 NAV Per Unit1,2 S$ 1 Excludes distributable income. 2 The number of Units used to calculate the NAV per Unit had been adjusted for the effect of the Unit consolidation on 11 Febru
Slide 11: Initiatives undertaken over the past years - Corporate Governance award
11 Initiatives undertaken over the past years - Corporate Governance award 11 FCOT wins prestigious award in Corporate Governance Runner-up, Singapore Corporate Governance Award under the REITs and Business Trust category, 14th SIAS Investors’ Choice Award
Slide 12: Reshaping and unlocking values
Reshaping and unlocking values
Slide 13: Unlocking values – Enhanced and unlocked values of China Square Central
Unlocking values – Enhanced and unlocked values of China Square Central 13 China Square Precinct Master Plan (“PMP”) completed in June 2013 New covered linkway along Nankin Mall provides better connectivity and PMP continues to transform, revitalise and rejuvenate the area Balanced portfolio to opti
Slide 14: Unlocking values – Enhanced and unlocked values of China Square Central
Unlocking values – Enhanced and unlocked values of China Square Central 14 Completed the asset enhancement works for the office tower in June 2013 Create a more contemporary, elegant and conducive working environment Complements PMP and capitalise on the new Telok Ayer MRT station Marina Bay Financi
Slide 15: Reshaping portfolio – Redeployed KeyPoint divestment proceeds
15 Reshaping portfolio – Redeployed KeyPoint divestment proceeds and generated higher yield 15 Manager optimised the use of proceeds from the divestment of KeyPoint Generated a higher yield for Unitholders Utilisation of net proceeds from the divestment of KeyPoint Divestment proceeds of KeyPoint wa
Slide 16: Unlocking values – Series A CPPU redemption/conversion uplifts distributable income
16 Unlocking values–Series A CPPU net redemption/conversion uplifts distributable income 16 Redemption of Series A CPPUs accretive to Unitholders Trust will continue to benefit from the full year effects of redemption and conversion of Series A CPPU S$17.7 mil savings in 321.9 mil Series A Series A
Slide 17: Proactive asset management
Proactive asset management Z FRASERS “Li COMMERCIAL TRUST
Slide 18: Proactive asset management – positive rental reversions
18 Proactive asset management – achieved positive rental reversions for the properties 18 Properties achieved positive rental reversions for new and renewed leases which commenced in FY2013 Leads to income growth and value enhancement for the Trust Rental reversions achieved in FY2013* 26.1% 18.7% 1
Slide 19: Proactive asset management – lengthened underlying lease expiries at Alexandra Technopark
19 Proactive asset management – lengthened underlying lease expiries at Alexandra Technopark 19 Completed the early renewal of 48.9% net lettable area of the underlying leases expiring in FY2014 and FY2015 Lengthened underlying leases to FY2016 and FY2018 and beyond Provide income stability after th
Slide 20: Effective capital management
Effective capital management
Slide 21: Effective capital management – lower cost of debt
21 Effective capital management – 21 Average cost of debt reduced from 3.5% in FY2012 to 3.0% in FY2013 Interest cover improved from 3.1 times for FY2012 to 4.3 times for FY2013 35.9% lower interest expense in FY2013 S$159.5 mil from Full year effect of KeyPoint divestment refinancing loan 35.9% low
Slide 22: Solid fundamentals
== FRASERS — a K/L COMMERCIAL F TRUST
Slide 23: Solid fundamentals – lease expiry profile
Solid fundamentals 23 23 More than 42% of lease expiry in FY2018 and beyond provides income stability Portfolio lease expiry by gross rental income As at 30 September 2013. Excludes retail turnover rent
Slide 24: Solid fundamentals - quality tenants and master lease
Solid fundamentals - quality tenants and master lease 24 Master lessee/ blue chip tenants with long leases contribute 67% of total gross rental income Master Leases % (Gross Rental Tenant Lease Expiry Income) Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 20.8% Blue Chip Tenants with Lon
Slide 25: Solid fundamentals – organic growth
Solid fundamentals – organic growth 25 25 More than 41% of leases have built-in step-up rents FY2014 – 2017 - Portfolio fixed % reviews Excludes retail turnover rent
Slide 26: Solid fundamentals – well spread debt maturity profile
26 Solid fundamentals – well spread debt maturity profile 26 Well spread debt maturity profile Hedged 51.0% of gross borrowings Established $1 billion multicurrency MTN programme in September 2013 – provides an alternative source of financing Debt maturity Debt composition – floating vs. hedged Borr
Slide 27: Looking ahead
Looking ahead PPS ra, Z FRASERS “Li COMMERCIAL TRUST
Slide 28: Delivering growth
Delivering growth 28 28 Various initiatives in place to deliver growth in distributable income Positive rental reversions Expiry of the Enhanced China Master Lease at Square Central Alexandra with increased Technopark in connectivity August 2014 Redemption/ conversion of Grow portfolio in Series A C
Slide 29: 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
Frasers Commercial Trust — Shareholder Meeting (January 2014) on 6ix