Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — 3QFY11 Earnings Presentation

31 slides from Frasers Property's earnings presentation, Jul 29, 2011

  1. Slide 1: Frasers Commercial Trust 3QFY11 Financial Results

    Frasers Commercial Trust 3QFY11 Financial Results 29 July 2011

  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  Portfolio review  Capital management  Moving Forward

  4. Slide 4: Results

    Results Zz TRUST

  5. Slide 5: Results – 3Q FY11 key highlights

     Results – 3Q FY11 5 Key highlights:  Third quarter distributable income to Unitholders of S$8.7m, ↑ 13% Y-o-Y  Gross revenue ↑ 5% Y-o-Y to $S30.6m  Net Property Income (“NPI”) of S$24.9m, ↑ 10% Y-o-Y  Higher occupancy rates at KeyPoint and Central Park ↑ gross revenue and NPI  Distribution to

  6. Slide 6: Financial highlights: 3Q distributable income up 13% Y-o-Y

     Results – Financial highlights 6 3Q distributable income up 13% Y-o-Y 1 Apr 2011 – 30 Jun 2011 3Q Y-o-Y Contributing factors (S$ ‘000) FY11 Change (%)  Higher contribution from Central Park, Caroline Gross Revenue 30,564 5% Chisholm Centre and KeyPoint despite loss of contribution from Cosmo Plaz

  7. Slide 7: Financial highlights: YTD results lifted by improvement in 3Q

     Results – Financial highlights 7 YTD results lifted by improvement in 3Q 1 Oct 2010 – 30 Jun 2011 YTD Y-o-Y Contributing factors (S$ ‘000) FY11 Change (%)  Higher contribution from the Australian properties Gross Revenue 89,171 1% and KeyPoint despite loss of contribution from Cosmo Plaza  Highe

  8. Slide 8: Rising occupancy & rentals translate to higher NPI y-o-y

     Results – Financial highlights 8 Rising occupancy & rentals translate to higher NPI y-o-y Net Property Income (S$m) 11% TOTAL: S$24.880 million 3Q FY11 Singapore: S$13.467 million (54%) Australia: S$9.604 million (39%) 24.9 Japan: S$1.809 million (7%) Driven by 22.3 higher Negative occupancy renta

  9. Slide 9: Successive quarters of growth in NPI

     Results – Financial highlights 9 Successive quarters of growth in NPI Net Property Income (S$m) 26 7% 25 24.9 24 23.9 23.2 23 22 1QFY11 2QFY11 3QFY11 NPI (Ex-Cosmo)

  10. Slide 10: Portfolio review

    Portfolio review mm GH (ounenast TRUST

  11. Slide 11: Portfolio occupancy rates up 2.1% to 97.6% y-o-y

     Portfolio review – Occupancy Rates 11 Portfolio occupancy rates up 2.1% to 97.6% y-o-y 5.9% 2.1% 12.0% 100% 100% 100% 100% 99.9% 100% 100% 100% 100% 0.7% 100% 100% 7.8% 97.6% 95.5% 94.0% 91.7% 89.4% 88.7% 86.4% 79.7% 78.6% China Square 55 Market St KeyPoint Alexandra Central Park Caroline Azabu Ac

  12. Slide 12: Singapore & Australia portfolio contribute >92.5% of NPI

     Portfolio review – Occupancy Rates & WALE 12 Singapore & Australia portfolio contribute > 92.5% of NPI income Geographical occupancy and % of NPI contribution As at Key portfolio statistics 30 June 2011 Ave Occupancy Rates % of NPI Contribution WALE by gross rental income 3.8 years 99.9% 100% 97.3

  13. Slide 13: Healthy lease expiry profile

     Portfolio review – Lease expiry profile 13 13 Healthy lease expiry profile Portfolio lease expiry by gross rental income 50% 29.1% 27.6% 30% 26.0% 14.3% 10% 3.1% FY11 FY12 FY13 FY14 FY15 and beyond -10% Number of leases expiring 27 95 96 32 23 NLA (sq ft) expiring 52,438 576,134 239,498 1,142,814

  14. Slide 14: Master lease expiry presents an opportunity to enhance revenue

     Portfolio review – Lease expiry profile 14 Master lease expiry presents an opportunity to enhance revenue Property Lease Expiry as a proportion of total Portfolio Gross Rental Income FY11 FY12 18% 16.1% 16% 14% 12% 10% 8% 6% 4.2% 3.6% 4% 2.2% 2.4% 2.0% 2% 0.6% 1.0% 0.1% 0% China Square Central 55

  15. Slide 15: Organic growth provided by built-in step-up rents

     Portfolio review – Mid-term rent reviews 15 15 Organic growth provided by built-in step-up rents FY11 - Fixed % lease rent reviews FY11 - 14 - Portfolio fixed % reviews GROSS RENTAL INCOME Portfolio gross rental income Weighted average fixed step % Average Total Property Leases step-up rent Proper

  16. Slide 16: Stability of income

     Portfolio review – Stability of income 16 Master lessees/ blue chip tenants with long leases contribute >62% of total gross rental income Master Leases Other Tenants, % (Gross Rental Master Leases, Tenant Lease Expiry Income) 37.2% 36.2% Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 2

  17. Slide 17: KeyPoint – Strong growth momentum

     Portfolio review – Asset updates 17 KeyPoint – Strong growth momentum with 88.0% committed occupancy KeyPoint leasing statistics KeyPoint occupancy rate Property management by KeyPoint Occupancy 15.7% (S$psf pm) 95% In-house team from May 09 q-o-q 35,000 90% 86.4% $5.2 85% $5.2 80% 30,000 75% $5.0

  18. Slide 18: China Square Central – Rise in committed occupancy

     Portfolio review – Asset updates 18 China Square Central – Rise in committed occupancy  Healthy committed occupancy rate: – Committed occupancy has increased to 94.5% in June from 94.3% in March – New and renewal leases commenced include OCBC Properties Services, Watsons & True Fitness Committed

  19. Slide 19: China Square Central – Average passing rent below $6.0 psf pm

     Portfolio review – Asset updates 19 China Square Central – Average passing rent below $6.0 psf pm In negotiation with Lease expiry by gross rental income 2 major tenants 60% 55.6% Major tenant renewed for 40% $8.0 psf pm 21.8% 20% 9.2% 6.6% 4.6% 2.2% 0% FY11 FY12 FY13 FY14 FY15 and beyond Number o

  20. Slide 20: 55 Market Street – Higher signing rents achieved

     Portfolio review – Asset updates 20 55 Market Street – Higher signing rents achieved  Two office leases signed: 55 Market Street leasing statistics – In the quarter, two office leases signed at (S$psf pm) 17.9% $7.2 psf pm and $7.6 psf pm respectively q-o-q 6,000 $7.5 $7.4 – Signing rents achieve

  21. Slide 21: Central Park – Average net rents approximately 40% below market

     Portfolio review – Asset updates 21 Central Park – Average net rents are approximately 40% below market  Potential rental uplift: – Average office net rents of Central Park (A$499 psm pa) are approximately 40% below the Perth CBD premium office rentals at above A$700 psm pa1 – 0.3% and 13.0% of C

  22. Slide 22: AWPF – Divestment of non-core asset

     Portfolio review – Asset updates 22 AWPF – Divestment of non-core asset AWPF’s Ernst & Young Tower  Divestment details: – Completed on 12 May 2011 – An aggregate consideration of AUD22.2 million (S$29.11 million)1 for all ordinary units and equity loan held by FCOT – Net proceeds from the divestm

  23. Slide 23: Capital management

    Capital management 2. J IRASERS TRUST

  24. Slide 24: Valuations: 0.9% increase in portfolio value due to FX translation

     Capital Management – Valuations 24 0.9% increase in portfolio value due to FX translation Variance from 31 March 2011 Local currency Translation as at Date of Value 30 June 2011 Total variance Total variance Asset valuation (millions) (S$ million) 1 (S$ million) (%) China Square Central 30 Septemb

  25. Slide 25: Debt statistics

    25  Capital Management – Debt statistics 25 Divestments helped to improve interest coverage ratio & reduced gearing Statistics Borrowings and assets by currency As at 30 June All debt facilities mature post-November 2012 1500 2011 1299 Total Assets (S$’000) 2,011,479 Gross Borrowings (S$’000) 745,4

  26. Slide 26: Interest rate statistics: Hedged more than 81% of gross borrowings

     Capital Management – Interest rate statistics 26 Hedged more than 81% of Gross Borrowings Hedging debt Debt composition – floating vs. hedged As at As a % of: 30 June 2011 Floating, 18.1% SGD Borrowings 75.2% AUD Borrowings 91.9% JPY Borrowings 100.0% Total Gross Borrowings 81.9% Hedged, 81.9% For

  27. Slide 27: Moving forward

    Moving forward mm GH (ounenast TRUST

  28. Slide 28: Market outlook - Singapore

     Market outlook - Singapore 28 Office market begins to stabilise  Market conditions 1 FCOT’s Singapore properties average occupancy 98.0% 97.4% 97.3% – The office leasing activity in Q2 2011 remained 97.0% stable and in line with the start of year 97.0% 96.1% 96.0% – Grade A rents rose 2.9% q-o-q

  29. Slide 29: Market outlook - Australia

     Market outlook - Australia 29 Positive growth trend in Perth’s CBD office market  Market conditions 1 Perth CBD average net face rents 1 – Rental level have begun to see a positive growth trend again, particularly for Premium Grade and Grade A stock Net Face Rent (AUD per sqm pa) – Premium grade

  30. Slide 30: Delivering growth

    30  Delivering growth 30 Strategic initiatives delivering results Rising Occupancy & Rentals Boost NPI Organic Growth - Step – up Rents Singapore & Australia Potential Savings - from Re-financing Distributable Future Acquisitions Income - Debt Headroom Created from Divestments

  31. Slide 31: 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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