Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — 2Q FY2011 Earnings Presentation

30 slides from Frasers Property's earnings presentation, Apr 21, 2011

  1. Slide 1: Frasers Commercial Trust 2QFY11 Financial Results

    Frasers Commercial Trust 2QFY11 Financial Results 21 April 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 – 2Q FY11 key highlights

     Results – 2Q FY11 5 Key highlights:  Second quarter distributable income to Unitholders of S$10.1m, ↑ 2% Y-o-Y  Distribution to CPPU holders of S$4.6m, represents 5.5% distribution yield on the offer price of S$1.0  Portfolio average occupancy rates ↑ 5.9% to 97.7% in 2Q11  Australia Portfolio

  6. Slide 6: Financial highlights: 2Q distributable income up 2% Y-o-Y

     Results – Financial highlights 6 2Q distributable income up 2% Y-o-Y 1 Jan 2011 – 31 Mar 2011 2Q Y-o-Y Contributing factors (S$ ‘000) FY11 Change (%)  Higher contribution from Central Park and KeyPoint Gross Revenue 29,626 - was offset by loss of contribution from Cosmo Plaza  Higher contributio

  7. Slide 7: Financial highlights: 1H results lifted by improvement in 2Q

     Results – Financial highlights 7 1H results lifted by improvement in 2Q 1 Oct 2010 – 31 Mar 2011 1H Y-o-Y Contributing factors (S$ ‘000) FY11 Change (%)  Higher contribution from the strengthening of the Gross Revenue 58,607 1% A$ and KeyPoint was offset by loss of contribution from Cosmo Plaza 

  8. Slide 8: Distribution payment

     Results – Distribution payment 8 Distribution to be paid on 30 May 2011 Distribution Period 1 October 2010 to 31 March 2011 Distribution of 2.8639 cents per Unit comprising: Ordinary Unit Distribution Rate a) taxable income distribution of 2.2927 cents; b) tax-exempt income distribution of 0.5712

  9. Slide 9: Portfolio review

    Portfolio review mm GH (ounenast TRUST

  10. Slide 10: Valuations: 0.7% decrease in portfolio value due to FX

     Portfolio review – Valuations 10 0.7% decrease in portfolio value due to FX translation Variance from 31 December 2010 Local currency Translation as at Date of Value 31 March 2011 Total variance Total variance Asset valuation (millions) (S$ million) 1 (S$ million) (%) China Square Central 30 Septe

  11. Slide 11: Singapore and Australia properties account for 93% of portfolio

     Portfolio review – Valuations 11 Singapore and Australia properties account for 93% of portfolio value  Singapore & Australia: Asset values 1 – Accounts for 93% of portfolio value TOTAL: S$1,945.0 million  Singapore: S$1,298.9 million (67%) – Singapore properties constitute more than  Australia

  12. Slide 12: Occupancy Rates & WALE

     Portfolio review – Occupancy Rates & WALE 12 Robust portfolio occupancy rate of 97.7% Geographical occupancy and % of NPI contribution As at Key portfolio statistics 31 March 2011 Ave Occupancy Rates % of NPI Contribution WALE by gross rental income 3.9 years 100.0% 100% 97.4% 93.0% Ave Occupancy

  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% 28.5% 26.6% 30% 25.1% 13.1% 10% 6.7% FY11 FY12 FY13 FY14 FY15 and beyond -10% Number of leases expiring 54 90 82 21 24 NLA (sq ft) expiring 107,088 563,978 215,030 1,125,447

  14. Slide 14: Only 6.7% of gross rental income due for renewal in FY11

     Portfolio review – Lease expiry profile 14 Only 6.7% of gross rental income is due for renewal for FY11 Property lease expiry as a proportion of total portfolio gross rental income 4% 3.7% 4% 3% 3% 2% 1.6% 2% 1.0% 1% 0.3% 1% 0.1% 0% 55 Market Street KeyPoint Central Park Galleria Otemae Azabu Aco

  15. Slide 15: Mid-term rent reviews

     Portfolio review – Mid-term rent reviews 15 15 Almost 25% of gross rental income has built-in fixed rent step-ups of approximately 4.0% for FY11 FY11 - Fixed % lease rent reviews FY11 - 14 - Portfolio fixed % reviews GROSS RENTAL INCOME Portfolio gross rental income Weighted average fixed step % A

  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 Tenant Lease Expiry Income) 37.1% Master Leases, 36.8% 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  Tenancy activity: KeyPoint occupancy rate Property management by KeyPoint Occupancy – 18 new leases and renewals have 95% In-house team from May 09 commenced in 2QFY11 with average 90% 85.6% rental range for office tenants fro

  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 94.3% in March from 93.7% in December – New and renewal leases commenced include Hinoki Japanese Dining, Chatham Financial and Obtech As

  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 Lease expiry by gross rental income 60% 56.8% 40% 19.5% 19.5% 20% 4.2% 0.0% 0% FY11 FY12 FY13 FY14 FY15 and beyond Number of leases expiring 21 54 31 8 0 NLA (sq ft) expiring 76,721 188,417 63,944 15,

  20. Slide 20: 55 Market Street – Occupancy at 95.8%

     Portfolio review – Asset updates 20 55 Market Street – Occupancy at 95.8%  Healthy occupancy: – Occupancy ↑ 6.2% to 95.8% in March from 89.6% in December – In the quarter, two office leases have commenced and signed for 3 years at $6.0 psf pm and $6.5 psf pm respectively 55 Market Street, Singapo

  21. Slide 21: Central Park – Fully occupied

     Portfolio review – Asset updates 21 Central Park – Fully occupied  Commencement of new leases: – Jones Lang LaSalle commenced a 10 year lease for one floor of space over 1,320 sq m – Expansion by existing tenant Hamersley Iron, a new 7.3 year lease over 3,639 sq m being two full floors – The two

  22. Slide 22: Central Park – New lobby café

     Portfolio review – Asset updates 22 Central Park – New lobby café  Capital enhancement works: – Awarded additional GFA for café (20 sq m) by City of Perth for activating external walkway – Tenant signed a 6 year lease with annual CPI review and contributed towards the cost of the Lobby café works

  23. Slide 23: Capital management

    Capital management 2. J IRASERS TRUST

  24. Slide 24: Capital Management – Debt statistics

    24  Capital Management – Debt statistics 24 Gearing reduce by 2% with sale of Cosmo Plaza Statistics Borrowings and assets by currency As at 31 March All debt facilities mature post-November 2012 1500 2011 1299 Total Assets (S$’000) 2,039,282 Gross Borrowings (S$’000) 770,606 1000 S$ million Units

  25. Slide 25: Interest rate statistics: hedged more than 78% of gross borrowings

     Capital Management – Interest rate statistics 25 Hedged more than 78% of Gross Borrowings Hedging debt Debt composition – floating vs. hedged As at As a % of: 31 March 2011 Floating, 21.1% SGD Borrowings 75.2% AUD Borrowings 75.8% JPY Borrowings 100.0% Total Gross Borrowings 78.9% Hedged, 78.9% Fo

  26. Slide 26: Moving forward

    Moving forward mm GH (ounenast TRUST

  27. Slide 27: Market outlook - Singapore

     Market outlook - Singapore 27 Office market begins to stabilise  Market conditions 1 FCOT’s Singapore properties average occupancy 98.0% 97.4% – Office market begins to stabilise after the sharp 97.0% upward market adjustments in 2010 97.0% 96.1% 96.0% – Grade A rents rose 4.0% q-o-q to an averag

  28. Slide 28: Market outlook - Australia

     Market outlook - Australia 28 Prime grade vacancy tightened in Perth’s CBD office market  Market conditions 1 Perth CBD average net face rents 1 – Net face rentals look to have stabilised with Premium office rentals in the region of A$700 psm pa Net Face Rent (AUD per sqm pa) – Effective rents ar

  29. Slide 29: Growth strategy

    29  Growth strategy 29 Growth Drivers Distributable Income Healthy Committed Occupancy Boost Organic Growth Potential Savings Acquisitions NPI Central Park – 100.0% Step – up Rents Capitalise on prevailing Additional headroom 55 Market Street – 95.8% - Singapore low interest rate created as a resul

  30. Slide 30: 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 — 2Q FY2011 Earnings Presentation on 6ix