Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — FY2010 Earnings Presentation
39 slides from Frasers Centrepoint Trust's earnings presentation, Oct 26, 2010
Slide 1: Frasers Centrepoint Trust 4th Quarter & Full Year FY2010 results
Frasers Centrepoint Trust 4th Quarter & Full Year FY2010 results 26 October 2010
Slide 2: Important notice
Important notice 2 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 re
Slide 3: Agenda
Agenda 3 Results Balance sheet Operational performance Growth strategy Summary
Slide 4: Results
Results
Slide 5: Four consecutive years of DPU growth
Results 5 FOUR consecutive years of DPU growth DPU (¢) 9% 11% 3% 8.20 9% 7.51 7.29 6.55 6.03 8% CAGR since listing FY2006 FY2007 FY2008 FY2009 FY2010 (IPO) Actual DPU (annualised) Y-o-Y change
Slide 6: FY2010 results
Results 6 Sterling FY2010 results Oct 09 - Sep 10 Y-o-Y FY2010 Highlights ($ ‘000) Change (%) • driven by acquisitions of Northpoint 2 & YewTee Point Gross Revenue 114,738 32% and revamp of Northpoint 1 • due to consolidation of Northpoint 2 & YewTee Point Less Property Expenses 34,688 30% expenses
Slide 7: FY2010 gross revenue by property
Results 7 FY2010 gross revenue by property Gross revenue $ m 36% excluding FRS 113.8 39 accounting 83.5 2% adjustments1 59.4 58.4 From 5 Feb 10 64% 28.6 4% FY2010 17.5 7.9 7.6 9.8 8.1 FY2009 FCT Portfolio CWP NP1 ACP NP2 YTP Reported $m 32% gross revenue 114.7 86.6 59.4 59.3 From 5 Feb 10 47% FY2010
Slide 8: FY2010 net property income by property
Results 8 FY2010 net property income by property NPI excluding $ m 40% FRS 39 79.1 accounting 56.7 2% adjustments1 41.8 41.6 From 5 Feb 10 88% FY2010 20.7 9% 11.0 6.8 4.4 4.1 5.4 FY2009 FCT Portfolio CWP NP1 ACP NP2 YTP $m 34% Reported 80.0 NPI 59.9 2% 41.8 42.6 From 5 Feb 10 59% FY2010 21.2 4% 13.3
Slide 9: Strong 4Q10 results
Results 9 Strong 4Q10 results Y-o-Y Jul - Sep 10 ($ ‘000) 4Q10 Highlights Change (%) • driven by acquisitions of Northpoint 2 & YewTee Point Gross Revenue 32,487 31% and revamp of Northpoint 1 • due to consolidation of Northpoint 2 & YewTee Point Less Property Expenses 10,264 42% expenses Net Proper
Slide 10: 4Q10 gross revenue by property
Results 10 4Q10 gross revenue by property Mall undergoing Gross revenue $ m 46% refurbishment excluding FRS 31.6 39 accounting adjustments1 21.7 1% 14.4 14.6 58% 8.2 5% 5.2 3.8 4Q10 2.0 1.9 3.2 4Q09 FCT Portfolio CWP NP1 ACP NP2 YTP Reported $m 31% gross revenue 32.5 24.8 7% 14.5 15.5 15% 4Q10 5% 8.
Slide 11: 4Q10 net property income by property
Results 11 4Q10 net property income by property Mall undergoing NPI excluding $ m 48% refurbishment FRS 39 21.3 accounting 14.6 adjustments1 10.0 10.1 64% 5.7 12% 3.6 2.5 4Q10 1.0 2.1 0.9 4Q09 FCT Portfolio CWP NP1 ACP NP2 YTP Reported $m 26% NPI 22.2 17.6 9% 4Q10 10.1 11.0 6% 10% 6.1 5.7 4Q09 2.9 2
Slide 12: Rising DPU trend
Results 12 Rising DPU trend Quarterly DPU payout trend Year-on-year comparison DPU (¢) 2.16 Y-o-Y 2.04 4Q10 4Q09 Change 0.21 0.10 (%) 2.06 2.07 DPU 2.16 2.04 6% 9.4% 1.94 1.91 1.94 4Q09 1Q10 2Q10 3Q10 4Q10 Income retained from previous quarters
Slide 13: Distribution details
Results 13 Distribution details Distribution period 1 Jul to 30 Sep 2010 DPU 2.16¢ Ex-date 28 Oct 2010 Books closure date 1 Nov 2010 at 5 pm Payment date 29 Nov 2010
Slide 14: Balance sheet
Balance sheet
Slide 15: $43 million revaluation surplus
Balance sheet 15 $43 million revaluation surplus Property Sep 2010 Sep 2010 Sep 2010 book Revaluation Change valuation capitalisation value surplus ($ m) rate1 ($ m) ($ m) Causeway Point 730.0 5.75% 716.8 13.2 2% Enlarged 503.0 5.75% 484.6 18.4 4% Northpoint YewTee Point 130.0 6.00% 127.3 2.7 2% Anc
Slide 16: Balance sheet summary
Balance sheet 16 Balance sheet summary As at 30 Sep 2010 30 Sep 2009 Change Total assets $1,516.2m $1,165.5m 30% Net assets $989.3m $768.8m 29% Total units in issue 767,276,5721 625,800,2212 23% NAV per unit $1.293 $1.224 6% 1. Excludes 296,433 issuable units in partial payment of 4Q10 mgmt fees. 2.
Slide 17: Robust capital structure
Balance sheet 17 Robust capital structure Debt information Debt expiry profile 260 As at 30 September 2010 $m Gearing ratio 30.3% 75 55 Interest cover1 4.43 x 45 25 Cost of debt (weighted) 3.76% 2010 2011 2012 2013 2014 2015 Total debt $460m Type RCF CMBS MTN MTN - MTN Corporate rating: Int rate Flt
Slide 18: Operational performance
Operational performance
Slide 19: Steady rental growth
Operational performance 19 Steady rental growth Increase in rents over preceding rates (%) 16.5% 8.5% 6.6% 7.2% 3.9% FY2010 1Q10 2Q10 3Q10 4Q10 Net Lettable Area FY2010 No. of renewals / Area % Total NLA Increase over New leases (sq ft) preceding rents Causeway Point1 14 48,706 11.6% 5.2% Northpoint
Slide 20: High portfolio occupancy
Operational performance 20 High portfolio occupancy 98.6% 99.4% 99.4% 98.1% FCT portfolio occupancy Occupancy1 Dec 09 Mar 10 Jun 10 Sep 10 Causeway Point 100.0% 100.0% 100.0% 97.2%2 Northpoint 1 95.1% 98.5% 98.6% 98.8% Anchorpoint 97.9% 97.7% 98.6% 98.8% Northpoint 2 - 100.0% 100.0% 100.0% YewTee Po
Slide 21: Healthy occupancy costs
Operational performance 21 Healthy occupancy costs Occupancy costs 4Q10 turnover rent contribution Turnover rent Jan - Aug 2010 4% FCT (weighted average) 13.7% Gross revenue Industry 16 – 17%
Slide 22: Opportunity to capitalise with 36% of gross rental income expiring in FY11
Operational performance 22 Opportunity to capitalise on positive economic outlook with 36% of gross rental income expiring in F20Y11 Lease expiry profile (as at 30 Sep 2010) 42.7% Weighted avg lease term to expiry 35.9% By NLA 1.43 yrs 18.2% By Gross rent 1.28 yrs Expiries as % of total 2.3% 0.9% gr
Slide 23: Growth strategy
Growth strategy
Slide 24: Delivered growth on all fronts
Growth Strategy 24 Delivered growth on all fronts Strategy FY2010 achievements 1 Acquisition growth Acquired Northpoint 2 & YewTee Point. 2 Enhancement growth Revamped Northpoint 1, refurbishing Causeway Point. 3 Organic growth 7% rental reversion1, 98% portfolio occupancy.2 1. For FY2010 2. As at S
Slide 25: Sponsor's main retail assets
Acquisition growth 25 Sponsor’s main retail assets Changi City Point The Centrepoint Bedok Point NLA (sf) MRT station Est. completion Est. catchment population Changi City Point 207,479 Expo 2H11 600,000 Bedok Point 80,985 Bedok End 2010 295,000 The Centrepoint 395,315 Somerset Completed 4,987,600 T
Slide 26: Bedok Point awaiting TOP
Acquisition growth 26 Bedok Point awaiting TOP Bedok Point NLA 80,985 Leasing status1 99% Target acquisition CY2011 1. Includes 96.1% committed leases and 2.4% leases under advance stages of negotiation
Slide 27: Outstanding track record of growth from asset enhancement initiatives
Enhancement growth 27 Outstanding track record of growth from asset enhancement initiatives Financials Mall NPI before FY2010 NPI1 Change Change revamp ($ m) ($ m) ($ m) Anchorpoint 1.7 4.4 2.7 193.3% 159% Northpoint 1 13.9 20.7 6.8 41.0% 49% Total 15.6 25.1 9.5 55.8% 61% 1. Excluding the effects of
Slide 28: Causeway Point's refurbishment
Enhancement growth 28 Causeway Point’s refurbishment Summary • Downsize space occupied by anchor tenants • Expand depth of retail offerings & create F&B from 65% to 50% of total NLA precinct on L5 • Shift escalators on B1 & L1 to improve visual • Introduce pro-family features sight-lines & release p
Slide 29: Causeway Point's refurbishment to span 30 months
Enhancement growth 29 Causeway Point’s refurbishment to span 30 months Timeline1 Level Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 L1 Sep 10 progress report L2 Construction status: 3.4% completed L3 Leasing status: 87% of level 1 pre-committed B1 L4 L5 1. Indicative timing,
Slide 30: Causeway Point's progress report Level 1
Causeway Point’s progress report 30 Level 1 Level 1 Level 1 Level 1
Slide 31: Causeway Point's progress report Level 2
Causeway Point’s progress report 31 Level 2 Level 2 Level 3 Level 4
Slide 32: Refurbishment expected to add $162 million to Causeway Point's capital value
Enhancement growth 32 Refurbishment expected to add $162 million to Causeway Point’s capital value Financials Projected Before AEI Change after AEI Through reconfiguring big boxes & Average rent per sq ft $10.2 $12.2 20% improving tenant mix NPI $42.2m $51.5m 22% Incremental NPI of $9.3m Capex - $71
Slide 33: Summary
Summary
Slide 34: FCT: High yielding investment with clear growth outlook
Summary 34 FCT: High yielding investment with clear growth outlook Investment merits 1 High dividend yield with • 5.5% DPU yield vs 10-year government bond yield of 2.0%1 limited downside • Resilient cash flow supported by high portfolio occupancy 2 Steady growth record • 8% CAGR in DPU since listin
Slide 35: Appendix
Appendix
Slide 36: FCT outperformed forecast
Appendix 36 FCT outperformed forecast 5 Feb – 30 Sep 10 Actual Forecast1 Change (%) Gross Revenue 82,217 76,803 7% 24,172 2% Less Property Expenses 24,631 Net Property Income 57,586 52,631 9% Income available for distribution 42,446 39,593 7% DPU2 5.53¢ 5.21¢ 6% 1. Refers to the Profit Forecast as s
Slide 37: Actual results vs forecast by property
Appendix 37 Actual results vs forecast by property Gross revenue S$ m 7% New acquisitions 82.2 6% outperformed forecast 76.8 63.6 60.2 Actual (5 Feb – 30 Sep) 12% 12% 10.2 9.1 8.4 7.5 Forecast1 (5 Feb – 30 Sep) FCT Portfolio CWP + NP1 + ACP NP2 YTP Net property S$ m 9% income 57.6 7% 52.6 44.6 41.6
Slide 38: 4Q10 rental reversions
Appendix 38 4Q10 rental reversions Net Lettable Area 4Q10 No. of renewals / Area % Total NLA Increase over New leases (sq ft) preceding rents Causeway Point1 - - - - Northpoint 1 1 183 0.1% 6% Anchorpoint 14 14,415 20.1% 17% Northpoint 2 - - - - YewTee Point - - - - FCT Portfolio 15 14,598 1.8% 17%
Slide 39: Thank you
Thank you Analyst & media contact: Goh Chat-Shen, CFA Investor Relations Frasers Centrepoint Asset Management Ltd Tel: (65) 6277-2657 Email: james.goh@fraserscentrepoint.com Web: www.fraserscentrepointtrust.com
Frasers Centrepoint Trust — FY2010 Earnings Presentation on 6ix