Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Commercial Trust — CLSA ASEAN Access Day Conference 2012
46 slides from Frasers Property's conference presentation, Oct 30, 2012
Slide 1: Frasers Commercial Trust CLSA ASEAN Access Day Conference
Frasers Commercial Trust CLSA ASEAN Access Day Conference 30-31 October 2012
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 FCOT overview FCOT’s reshaping strategy FCOT’s investment proposition Supplementary materials
Slide 4: FCOT overview
FCOT overview FRASERS COMMERCIAL TRUST ZB Ke
Slide 5: Where we are – geographic and asset
Where we are – geographic and asset 55 FCOT offers balanced exposure to 5 quality properties in Singapore and Australia Properties Portfolio Value 1 Portfolio Net Property Income 1 2 office assets SINGAPORE 1 business space asset S$1,076.0 million, (61%) S$53.3 million, (56%) AUSTRALIA 2 office asse
Slide 6: Portfolio details – Singapore & Australia focus
Portfolio details – Singapore & Australia focus 6 Portfolio will focus on Singapore and Australian properties Azabu Aco , 1% Ebara Techno- Serve, 2% Galleria Otemae , 2% Caroline Chisholm Centre, 15% Caroline Chisholm Centre, 14% China Square China Square Central, 32% Central, 30% Post-sale of Japan
Slide 7: Results – Financial highlights
Results – Financial highlights 7 7% higher NPI boosted by Central Park and Caroline Chisholm Centre Net Property Income (S$m) TOTAL: S$102.516 million FY12 Singapore: S$53.298 million (52%) Australia: S$42.381 million (41%) Japan: S$6.837 million (7%)
Slide 8: Results – Financial highlights
Results – Financial highlights 8 Recorded DPU growth for the third successive year since recapitalisation exercise DPU (Cents) 16.3% 6.69 5.75
Slide 9: Performance – total return
Performance – total return 9 FCOT outperformed indices in the last 12 months 150% FCOT FTSE STI FTSE REIT FCOT, 149.7% 140% 130% FTSE REIT,127.9% 120% FTSE STI, 116.7% 110% 100% 90% 80% Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Source: Bloomberg
Slide 10: FCOT's reshaping strategy
eiiie GSaSec aan FCOT’s reshaping strategy Zs J FRASERS TRUST
Slide 11: Portfolio reshaping – track record
Portfolio reshaping – track record 11 Portfolio reshaping strategy has yielded positive results Cosmo Plaza • ↓ Gearing by 1.8% January 2011 Australian Wholesale Property Fund • ↑ DPU by 4.6% May 2011 Remaining 50% interest in Caroline • Positive increase to NPI Chisholm Centre April 2012 Keypoint •
Slide 12: Portfolio reshaping – Acquired Caroline Chisholm Centre
Portfolio reshaping – Acquired Caroline Chisholm Centre 12 Acquisition of Caroline Chisholm Centre resulted in positive contribution to NPI Acquisition details – Acquired remaining 50% interest in Caroline Chisholm Centre – Acquisition price of A$83 million was 12.6% or A$12 million discount from va
Slide 13: Portfolio reshaping – Divested KeyPoint
Portfolio reshaping – Divested KeyPoint 13 Divested KeyPoint at 26.3% above valuation Divestment details – Sale consideration of S$360.0 million was 26.3% or S$75.0 million above current use valuation1 – Gain on divestment of approximately S$72.8 million – Completed in September 2012 Rationale – 34
Slide 14: Portfolio reshaping – Divestment of Japanese properties
Portfolio reshaping – Divestment of Japanese properties 14 Divestment of Japanese properties will strengthen financial position Divestment details – Nominal sale consideration of ¥4 – Completed on 25 October 2012 Rationale – Declining occupancy and weak performance Azabu Aco – TMK holding properties
Slide 15: Utilisation of proceeds from the divestment of Keypoint
15 Portfolio reshaping – Utilisation of proceeds from the divestment of Keypoint 15 S$160 million or 45% of the divestment proceeds from Keypoint utilised for part prepayment of SGD and AUD debt Debt 400 350 90 300 250 S$ million 70 200 358 150 268 100 198 50 - Net divestment proceeds Partial prepay
Slide 16: Portfolio reshaping – effects on NAV
16 Portfolio reshaping – effects on NAV 16 Portfolio reshaping strategy and higher property valuation led to increase in NAV per Unit to S$1.50 1 NAV per Unit 1.60 1.40 0.11 0.05 1.20 1.00 S$ 0.80 1.50 1.34 0.60 0.40 0.20 - 1 NAV per Unit as at 30 September Net increase in property Gain on divestmen
Slide 17: FCOT's investment proposition
FCOT’s investment proposition
Slide 18: FCOT's investment proposition – Stability of income
Contents FCOT’s investment proposition 18 18 1. Stability of income Healthy lease expiry profile Healthy occupancy and long WALE Quality tenants and master lease Organic growth 2. Solid fundamentals 3. Growth strategy
Slide 19: Stability of Income – healthy lease expiry profile
1. Stability of Income – healthy lease expiry profile 19 19 More than 40% of lease expiry in FY2017 and beyond Post-sale of Japanese properties would increase level of income expiring in FY17 & beyond 1 Portfolio lease expiry by gross rental income Number of leases expiring 2 65 40 33 4 20 NLA (sq f
Slide 20: Stability of Income – Healthy Lease Expiry Profile
1. Stability of Income – Healthy Lease Expiry Profile 20 Low passing rents presents potential for higher income Property Lease Expiry as a proportion of total Portfolio Gross Rental Income * Ave passing rent for expiring leases Number of leases expiring 54 8 3 Average passing rent $6.2 $6.0 AUD $546
Slide 21: Stable Occupancy Rates & Long WALE
2. Stability of income - Stable Occupancy Rates & Long WALE 21 Singapore & Australian portfolios contribute 93.3% of NPI income Healthy average occupancy rate of 94.9% 1 Geographical occupancy and % of NPI contribution As at Key portfolio statistics 30 September 2012 WALE by gross rental income 4.7
Slide 22: Stability of Income – quality tenants and master lease
3. Stability of Income – quality tenants and master lease 22
Slide 23: Stability of Income – quality tenants and master lease
3. Stability of Income – quality tenants and master lease 23 Master lessees/ blue chip tenants with long leases contribute 60% of total gross rental income Master Leases % (Gross Rental Tenant Lease Expiry Income) Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 20.5% Blue Chip Tenants wit
Slide 24: Stability of Income – organic growth
3. Stability of Income – organic growth 24 24 More than 35% of leases have built-in step-up rents FY13 - Fixed % and other fixed lease rent reviews FY13 – 16 - Portfolio fixed % reviews GROSS RENTAL INCOME Average Total Property Leases step-up rent Property Portfolio China Square 4 8.4% 3.5% 0.7% Ce
Slide 25: FCOT's investment proposition – Solid fundamentals
Contents FCOT’s investment proposition 25 25 1. Stability of income 2. Solid fundamentals Natural hedge in place Enhanced debt maturity profile and improved gearing Borrowings hedged Positive market outlook Growing demand Asset enhancement initiatives Pipeline assets 3. Growth strategy
Slide 26: Solid fundamentals – natural hedge in place
26 2. Solid fundamentals – natural hedge in place 26 Overseas investments are naturally hedged Statistics Borrowings and assets by currency As at 1,200 30 September 1,076 2012 1,000 Total Assets (S$’000) 2,339,892 800 Gross Borrowings (S$’000) 860,159 682 S$ million Units on Issue and Issuable 1 645
Slide 27: Enhanced debt maturity profile and improved gearing
27 2. Solid fundamentals – enhanced debt maturity profile and improved gearing 27 Proceeds from Keypoint used for partial prepayment of debt and divestment of Japanese properties reduce debt by 31% and improve gearing to 28.6% Debt 1000 900 800 161 700 109 600 S$ million 500 400 860 699 300 590 200
Slide 28: No debt maturing until FY2015
28 2. Solid fundamentals – enhanced debt maturity profile and improved gearing 28 No debt maturing until FY2015 Debt maturity as at 30 September 20121 Proforma debt maturity 2 600 566 450 405 400 500 350 400 Post debt prepayment and 300 S$ million S$ million divestment of Japanese 250 300 properties
Slide 29: Solid fundamentals – borrowings hedged
2. Solid fundamentals – borrowings hedged 29 Hedged about 72% of Gross Borrowings Hedging debt Debt composition – floating vs. hedged As at As a % of: 30 September 2012 Total Gross Borrowings 72.0% For quarter ended 30 September 2012
Slide 30: Positive market outlook – Singapore office market
2. Solid fundamentals – positive market outlook 30 Singapore office market recorded 4th consecutive quarter of positive net absorption and improved vacancy rates in Q3 2012 Market conditions 1 Singapore office new supply 2 – Office demand in Q3 2012 displayed resilience beyond Historical net supply
Slide 31: Singapore office rents trend – Grade B rents more resilient
2. Solid fundamentals – positive market outlook 31 Singapore office rents trend – Grade B rents more resilient Singapore Grade A and Grade B office rents 1 Rent (S$ psf / 2012 Q3 Previous High Change % month) $20 18.65 18.80 18.80 Grade A Rent 9.80 11.06 (2011 Q3) -11.4% $18 17.15 Grade B Rent 7.17
Slide 32: Positive market outlook – Perth office market
2. Solid fundamentals – positive market outlook 32 Premium Grade office market net rent between AUD 750 to AUD 950 Perth CBD supply 1 Perth CBD average net face rents 1 Market conditions 1 – Perth CBD office market remained positive – Vacancy rate remained at 2.9%, similar to the preceding quarter –
Slide 33: Growing demand – China Square Central
2. Solid fundamentals – growing demand 33 China Square Central – Healthy demand for space vacated by Marsh & McLennan Tenancy activity activities: – Approx. 26,500 sq ft of new leases and renewals secured during the quarter – Signed-on a new tenant, GroupM, part of the WPP Group listed on both LSE a
Slide 34: China Square Central – Average passing rent
3. Solid fundamentals – growing demand 34 China Square Central – Average passing rent approx. $6.3 psf pm Lease expiry by gross rental income Number of leases expiring 54 30 23 1 3 NLA (sq ft) expiring 121,178 40,717 55,327 10,056 43,074 Expiries as % total Gross Rental Income 44.9% 14.2% 19.7% 2.7%
Slide 35: Growing demand – Alexandra Technopark and 55 Market Street
3. Solid fundamentals – growing demand 35 Alexandra Technopark – full occupancy with robust 55 Market Street – healthy occupancy rate tenancy activities Healthy occupancy: Robust tenancy activities: – 90% occupancy as at 30 September – 100% occupancy as at 30 September – New tenants Corporate Servic
Slide 36: Growing demand – Central Park and Caroline Chisholm Centre
2. Solid fundamentals – growing demand 36 Caroline Chisolm Centre –full occupancy coupled Central Park – Long WALE of 4.2 years with long WALE of 12.8 years Robust occupancy: Robust tenancy activities: – 96.4% occupancy as at 30 September – 100% occupancy as at 30 September – Long WALE by gross rent
Slide 37: Asset Enhancement Initiatives – Precinct Master Plan
2. Solid fundamentals – Asset Enhancement Initiatives 37 Precinct Master Plan initiatives on schedule Covered linkway provides opportunities for alfresco dining Retail offering being upgraded Artist impression
Slide 38: China Square Central – Asset Enhancement Initiatives
2. Solid fundamentals – Asset Enhancement Initiatives 38 China Square Central – Asset Enhancement Initiatives (“AEI”) will enhance positioning of the property China Square Central, Singapore Artist impression Artist impression AEI being planned and targeted to commence by end-2012 Upgrading of main
Slide 39: Solid fundamentals – pipeline assets
2. Solid fundamentals – pipeline assets 39 FCOT’s developer–sponsor, providing quality assets for sustainable growth pipeline Property Alexandra Point Valley Point 20-storey office tower with a two-storey Description 24-storey office building retail podium 222,246 sq ft (20,647 sq m) Net Lettable Ar
Slide 40: FCOT's investment proposition – Growth strategy
Contents FCOT’s investment proposition 40 40 1. Stability of income 2. Solid fundamentals 3. Growth strategy Strategic initiatives
Slide 41: Growth strategy – strategic initiatives
41 3. Growth strategy – strategic initiatives 41 Strategic initiatives to deliver growth to Unitholders S$160 mil of S$358 mil net divestment proceeds utilised for Divestment of Keypoint debt repayment. Remaining earmarked for CPPU redemption/ unit buyback Portfolio Acquisition of remaining 50% inte
Slide 42: Portfolio details and financial highlights
Portfolio details and financial highlights
Slide 43: Portfolio details
Portfolio details 43 Alexandra Caroline Chisholm Property China Square Central 55 Market Street Central Park1 Technopark Centre 18,20 & 22 Cross Street, 438A/438B Alexandra 152-158 St Georges Block 4 Section 13, 55 Market Street, Address China Square Central Road Terrace Perth Tuggeranong ACT 2900,
Slide 44: Results – Financial highlights
Results – Financial highlights 44 DPU for 4Q rose by 15% Y-o-Y 4Q FY12 Y-o-Y 1 Jul 2012 – 30 Sep 2012 Contributing factors (S$ ‘000) Change (%) Higher contribution from Central Park; higher contribution from Caroline Chisholm Centre due to Gross Revenue 35,581 17% acquisition and direct leases with
Slide 45: Results – Financial highlights
Results – Financial highlights 45 19% rise in distributable income for FY12 FY12 Y-o-Y 1 Oct 2011 – 30 Sep 2012 Contributing factors (S$ ‘000) Change (%) Higher contribution from Central Park, higher contribution from Caroline Chisholm Centre due to Gross Revenue 132,861 11% acquisition and direct l
Slide 46: 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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