Frasers Logistics & Commercial Trust · SGX:BUOU
Frasers Logistics & Commercial Trust — FY2021 Earnings Presentation
47 slides from Frasers Logistics & Commercial Trust's earnings presentation, Nov 17, 2021
Slide 1: Investor Presentation
Investor Presentation 17 November 2021 Industriepark 309, Gottmadingen, Germany
Slide 2: Important notice
Important notice This presentation is for information only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase or subscription of securities, including units in Frasers Logistics & Commercial Trust (formerly known as Frasers Logistics
Slide 3: About Frasers Logistics & Commercial Trust
About Frasers Logistics & Commercial Trust 6th largest SREIT(1) with a flagship portfolio of 103 properties in five developed countries 103 properties S$7.3 billion 96.2% 4.8 years High ESG Standards • Net zero carbon commitment Across 5 Countries Portfolio Value(2) Occupancy Rate(3) WALE(3) • GRESB
Slide 4: Portfolio overview
Portfolio overview High-quality portfolio with attractive metrics Breakdown by Asset Type and Geography(1) 103 Properties in Five Developed Countries(1) 95 8 103 Properties Properties Properties Office & Business Parks, Germany, 22.0% $4,474.4m $2,849.5 m $7,323.9 m 21.5% Portfolio value(1) Portfoli
Slide 5: FY2021 performance overview
FY2021 performance overview Delivering growth and resilience DPU Portfolio Value FLCT delivered a year of operational stability and financial growth, amidst 7.68 S cents S$7.3 billion uncertainty in the macroenvironment ▲ 7.9% y-o-y ▲ S$603.9m(1) or up 9.0% (FY2020: 7.12 S cents) from carrying value
Slide 6: Enhancing portfolio resilience
Enhancing portfolio resilience Proactive lease management and strategic portfolio rationalisation Proactive management ensuring stability of income Strategic acquisitions 93 leases signed in FY2021, representing 13.3% of portfolio Reinforced core portfolio with S$562.4 million portfolio acquisition
Slide 7: Continuing commitment to high ESG standards
Continuing commitment to high ESG standards Environmental, Social and Corporate Governance Highlights Commitment to High ESG Standards External Recognition Acting Progressively Integrate ESG considerations into our business decisions to build resilience and holistically manage risks Consuming Respon
Slide 8: Financial Review
2 GF [aeiAnese Comwencis Financial Review
Slide 9: Key financial highlights
Key financial highlights Second half ended 30 September 2021 Key Highlights Financial Highlights Change • DPU(1) for 2H2021 at 3.88 Singapore cents is 6.3% higher than 2H2020 2H2021 2H2020 (S$’000) (%) • Higher revenue and adjusted net property income resulted from the acquisitions undertaken in FY2
Slide 10: Key financial highlights
Key financial highlights Financial year ended 30 September 2021 Financial Highlights Change Key Highlights FY2021 FY2020 (S$’000) (%) • DPU for FY2021 at 7.68 Singapore cents is 7.9% higher than FY2020 • Higher revenue and adjusted net property income resulted from the merger between FLCT and FCOT,
Slide 11: Distribution
Distribution Delivering stable and growing returns to Unitholders 2H2021 Distribution Details DPU History (Singapore Cents) • Total distribution for the period from 1 April 2021 to 30 September 2021 was 3.88 Singapore cents, representing a full payout of 2H2021 distributable FY2021 DPU 3.88 income,
Slide 12: Healthy balance sheet
Healthy balance sheet As at 30 September 2021 • The value of investment properties increased by 15.1% from S$6,501 million as at 30 September 2020 to S$7,482 million as at 30 September 2021, due mainly to: • Net fair value adjustments of S$602.9 million • The completion of the acquisition of two pro
Slide 13: Key credit metrics
Key credit metrics Well-spread debt maturity profile with weighted average debt tenor of 3.4 years Key Credit Metrics Well-spread Debt Maturity Profile • Average weighted debt maturity improved by 0.3 years to 3.4 years, As at Change from 30 Sep 2021 30 Jun 2021 with the 7-year notes issuance in Jul
Slide 14: Prudent capital management
Prudent capital management As at 30 September 2021 Investment Properties(1) and Debt(2) as at 30 September 2021 (in S$ millions) Investment Properties Debt 7,324 Total: S$7,324 million Total: S$2,532 million 3,332 2,532 1,953 1,160 1,289 343 724 750 305 Total Portfolio Australian Portfolio European
Slide 15: Portfolio Review
2 GF FRA SERS MeRciat TRUST Portfolio Review
Slide 16: Portfolio valuation
Portfolio valuation Valuation uplift of 9.0% over carrying value • The FLCT portfolio of 103 properties was valued at S$7.3 billion as at 30 September 2021, up 9.0% over the carrying value of S$6.7 billion Logistics & Industrial (As at 30 September 2021) Location Properties Valuation (local currency
Slide 17: Portfolio valuation
Portfolio valuation Logistics & industrial Properties • The 95 logistics & industrial properties were valued at S$4,474.4 million as at 30 September 2021, up 15.7% over the carrying value of S$3,879.5 million • The 59 Australian properties were valued at A$2,489.3 million, up 22.1% over the carrying
Slide 18: Portfolio valuation
Portfolio valuation Commercial properties • The 8 commercial properties were valued at S$2,849.5 million as at 30 September 2021, down 0.1% from the carrying value of S$2,853.4 million • The 3 Australian properties were valued at A$905.0 million, up 1.6% over the carrying value of A$891.1 million •
Slide 19: Leasing update
Leasing update 151,975 sqm of leasing for the period from July to September 2021 (“4Q2021”) 151,975 sqm of leasing in 4Q2021, with an average portfolio rental reversion of -2.3%, translating into 352,972 sqm of leasing in FY2021, with an average portfolio rental reversion of -1.7% 4Q2021 Industria
Slide 20: Portfolio lease expiry profile
Portfolio lease expiry profile Minimal near-term lease expiries Portfolio Lease Expiry Profile as at 30 September 2021(1) • Well spread-out lease expiry profile with no more than 16.6% of GRI expiring in any single year, translating into reduced Logistics & Industrial concentration risk Commercial •
Slide 21: Occupancy review
Occupancy review Breakdown by asset type Logistics & Industrial As at 30 Sep 21(1) As at 30 Jun 21 Change Australia 100.0% 100.0% - Europe 100.0% 100.0% - United Kingdom 100.0% 100.0%(2) - Logistics & Industrial Portfolio: 100.0% 100.0% - Commercial Country As at 30 Sep 21(1) As at 30 Jun 21 Change
Slide 22: Top-10 portfolio tenants
Top-10 portfolio tenants High-quality and well-diversified tenant base 23.5% 4.9 years No. Top-10 Portfolio Tenants(1) Country % of GRI WALE (Years) GRI Average contribution WALE for 1. Commonwealth of Australia Australia 4.6% 3.8 from Top-10 Top-10 tenants tenants 2. Google Asia Pacific Singapore 3
Slide 23: Tenant sector breakdown
Tenant sector breakdown Well-diversified tenant base with lower concentration risk Portfolio Tenant Sector Breakdown(1)(2) 57.5% 1.8% Logistics & Industrial Commercial of GRI contribution from L&I tenants ~82.1% 23.2% of the enlarged portfolio 19.0% enjoys exposure to tenants in government-linked; 6
Slide 24: Our COVID-19 response
Our COVID-19 response Update and commentary • The REIT Manager is working closely with FLCT’s customers to overcome this challenging period together while focusing on managing any near- to mid-term downside risk from the pandemic • The COVID-19 impact on FLCT’s distributable income for FY2021 is app
Slide 25: Market Information and Strategy
Market Information and Strategy
Slide 26: Operating environment in Australia
Operating environment in Australia Key economic indicators and market overview Key Economic Indicators(1) Industrial and Commercial Market Overview (3) Industrial Prime Grade Net Face Rent Prime CBD Commercial Net Face Rent GDP (A$/sqm/yr) (A$/sqm/yr) +0.7% q-o-q for the Jun 21 quarter Brisbane Melb
Slide 27: Operating environment in Germany and the Netherlands
Operating environment in Germany and the Netherlands Key economic indicators and market overview Key Economic Indicators in Germany(1) Key Economic Indicators in the Netherlands(4) GDP Unemployment Rate GDP Unemployment Rate +1.8% q-o-q for Sep 21 quarter 5.4% for the month of Sep 21 +3.8% q-o-q for
Slide 28: Operating environment in Singapore
Operating environment in Singapore Key economic indicators and market overview Key Economic Indicators(1) Singapore Office and Business Park Markets Overview(3) Grade A and Grade B Office Rents Business Park Rents(4) (S$ psf per month) (S$ psf per month) GDP +0.8% q-o-q for Sep 21 quarter Grade A Gr
Slide 29: Operating environment in the United Kingdom
Operating environment in the United Kingdom Key economic indicators and market overview Key Economic Indicators(1) South East Commercial Market Overview(3) Take Up (sq ft ‘000) • Take-up in the South East in Q3 2021 amounted to 605,271 sq Q1-Q3 Q4 3-year average GDP ft, pushing up YTF 2021 take-up v
Slide 30: Our strategy for long-term value creation
Our strategy for long-term value creation Harnessing FLCT’s competitive advantages Our Objectives: To deliver stable and regular distributions to unitholders and achieve sustainable long-term growth in DPU Harnessing FLCT’s Competitive Advantages Active Asset Management Acquisition Growth Prime and
Slide 31: Appendix: Additional Portfolio, Market and Financial Information
Appendix: Additional Portfolio, Market and Financial Information
Slide 32: Portfolio overview – logistics & industrial
Portfolio overview – logistics & industrial Prime and modern properties in Australia, Germany, the Netherlands and the UK As at 30 September 2021 Australia Germany The Netherlands UK Total No. of Properties 59 29 6 1 95 Portfolio Value(1) S$2,443.0 m S$1,614.3 m S$339.1 m S$78.0 m S$4,474.4 m Lettab
Slide 33: Portfolio overview – offices & business parks
Portfolio overview – offices & business parks High-quality properties in attractive locations As at Caroline Chisholm Alexandra Farnborough Maxis Business Blythe Valley 30 September 2021 Centre Technopark Business Park Park Park Country Canberra, Australia Singapore United Kingdom United Kingdom Uni
Slide 34: Portfolio overview – CBD commercial
Portfolio overview – CBD commercial High-quality commercial assets in prime locations As at Cross Street 357 Collins Central 30 September 2021 Exchange Street Park Country Singapore Melbourne, Australia Perth, Australia Cross Street Exchange Ownership 100.0% 100.0% 50.0% Property Value 632.0 317.0 3
Slide 35: Top-10 tenants
Top-10 tenants Breakdown by asset type Top-10 Logistics & Top-10 Commercial % of FLCT Portfolio GRI WALE (Years) % of FLCT Portfolio GRI WALE (Years) Industrial Tenants(1) Tenants(1) Hermes, Germany 2.7% 11.0 Commonwealth of Australia 4.6% 3.8 Google Asia Pacific, Ceva Logistics, Australia 1.8% 3.7
Slide 36: Lease expiry profile
Lease expiry profile Logistics & industrial Industrial Portfolio Lease Expiry Profile as at 30 September 2021(1) 20.0% (Based on % of industrial Portfolio GRI) 1.0% 13.3% 12.2% 11.6% 11.3% 11.2% 9.6% 4.9% 10.3% 2.3% 1.7% 0.2% 3.0% 7.7% 2.8% 5.3% 1.2% 9.3% 9.6% 8.4% 8.2% 3.1% 6.5% 6.6% 6.8% 1.9% 5.0%
Slide 37: Lease expiry profile
Lease expiry profile Commercial Commercial Portfolio Lease Expiry Profile as at 30 September 2021(1) (Based on % of commercial Portfolio GRI) 24.9% 22.7% 2.5% 6.9% 9.5% 11.9% 9.4% 11.0% 1.6% 8.8% 2.8% 7.8% 2.9% 1.4% 2.3% 12.9% 9.0% 4.7% 4.4% 3.5% 4.1% 3.5% 2.2% 6.8% 6.4% 1.1% 3.1% 1.6% 0.4% 1.1% 1.0
Slide 38: Australian industrial market
Australian industrial market Sydney • Supply: Development activity in the nine months to September 2021 was 192,418 sqm with 11 developments completed. A further 413,867 sqm of supply is expected to complete by year-end, concentrated in the Outer Central West and Outer South West precincts, bringing
Slide 39: Australian industrial market
Australian industrial market Melbourne • Supply: Three new projects were completed over 3Q21, introducing a total of 107,760 sqm of new industrial space into the Melbourne market. The additional area lifted total supply in 2021 to 536,031 sqm, already exceeding the 10-year annual average of 473,054
Slide 40: Australian industrial market
Australian industrial market Brisbane • Supply: Development activity in the nine months to September 2021 was below the 10-year average of 295,823 sqm, with 93,003 sqm of new stock added to the Brisbane market. New construction continues to be concentrated in the Southern precinct. The largest compl
Slide 41: Australian commercial market
Australian commercial market Melbourne CBD office • Supply: Three projects reached practical completion in the Melbourne CBD over the quarter delivering at total of 138,252 sqm of new supply. The new supply is 63% pre-committed. There are now six new projects totalling 177,690 sqm and two refurbishm
Slide 42: Australian commercial market
Australian commercial market Perth CBD office • Supply: Development activity in the Perth CBD has been subdued with no new developments being completed in the last 24 months. There are currently two major new developments under construction in the Perth CBD, Chevron HQ and Capital Square Tower 2. Th
Slide 43: Singapore commercial market
Singapore commercial market CBD office • Supply: 3Q21 saw the completion of the office component in CapitaSpring which secured more than 80% occupancy. • Demand: Majority of the leasing transactions are for renewals and “flight to quality” moves driven by the technology and non-banking financial ser
Slide 44: Singapore commercial market
Singapore commercial market Business park(1) • Supply: From 4Q21 to 2024, an estimated 4.57 mil sq ft of new supply will come on stream. The majority of the supply pipeline is concentrated within the Rest of Island submarket of about 4.26 mil sq ft. • Demand: In 3Q21, the business park market regist
Slide 45: Financial information
Financial information Portfolio revenue and NPI by sector and region Breakdown by sector Breakdown by region UK, 10.6% Singapore, 18.8% Industrial, 56.6% Commercial, 43.4% Australia: 35.4% Revenue Singapore: 18.8% Europe, Revenue Europe: 21.0% Australia: 14.2% 21.0% S$469.3m S$469.3m UK: 0
Slide 46: Glossary
Glossary Frasers Property entities Other key acronyms FLCT: Frasers Logistics & Commercial Trust AEI: Asset Enhancement Initiative FLT: Frasers Logistics & Industrial Trust CBD: Central Business District FCOT: Frasers Commercial Trust COVID-19: Coronavirus disease 2019 FPL or the Sponsor: Frasers Pr
Slide 47: Experience matters.
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