Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — Q3 FY2009/10 Earnings Presentation

26 slides from Frasers Property's earnings presentation, Jul 28, 2010

  1. Slide 1: Frasers Commercial Trust 3QFY09/10 Financial Results

    Frasers Commercial Trust 3QFY09/10 Financial Results 28 July 2010

  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 FY09/10 key highlights

     Results – 3Q FY09/10 5 Key highlights:  Distributable income to Unitholders of S$7.7m, ↑ 39% y-o-y  Distribution income to CPPU holders of S$4.7m  YTD DPU of 0.81 cents translates to annualised yield of 7.2%1  Portfolio occupancy rate is 93.1%, up 0.7% from the previous quarter  KeyPoint and

  6. Slide 6: Financial highlights: 3Q distributable income up 39% Y-o-Y

     Results – Financial highlights 6 3Q distributable income up 39% Y-o-Y 1 Apr 2010 – 30 Jun 2010 3Q Y-o-Y Contributing factors (S$ ‘000) FY09/10 Change (%)  Full quarter contribution from Alexandra Gross Revenue 29,222 29% Technopark, more favourable A$ exchange rate  Increase in Gross Revenue car

  7. Slide 7: Financial highlights: YTD DPU increased 21% Y-o-Y

     Results – Financial highlights 7 YTD DPU increased 21% Y-o-Y 1 Oct 2009 – 30 Jun 2010 YTD Y-o-Y Contributing factors (S$ ‘000) FY09/10 Change (%)  Full nine months contribution from Alexandra Gross Revenue 88,643 24% Technopark, more favourable A$ exchange rate  Increase in Gross Revenue carried

  8. Slide 8: Portfolio review

    Portfolio review mm GH (ounenast TRUST

  9. Slide 9: Portfolio review – Valuations

     Portfolio review – Valuations 9 Prudent valuations for portfolio As at 30 June 2010 As at 30 June 2008 % of asset write- Local currency Local currency down since 30 June Assets Date of valuation (millions) Capital value (millions) 2008 55 Market Street September 2009 2 S$119.5 S$1,657 psf S$148.0

  10. Slide 10: Portfolio review – Occupancy Rates & WALE

     Portfolio review – Occupancy Rates & WALE 10 Singapore and Australia occupancy rates >95% and contribute more than 90% of portfolio Net Property Income (“NPI”) Geographical Occupancy and % of NPI Contribution As at Key portfolio statistics 30 June 2010 Ave Occupancy Rates % of NPI Contribution WAL

  11. Slide 11: Portfolio review – Lease expiry profile

     Portfolio review – Lease expiry profile 11 Only 2.9% of effective gross rental income expiring for remaining FY09/10 Property Lease Expiry as a proportion of total Portfolio Gross Rental Income FY09/10 FY10/11 6% 5.3% 5% 4% 3% 2.6% 2% 1.4% 1.7% 1.0% 1% 0.6% 0.5% 0.4% 0.5% 2.2% 0.5% 0.0% 0% 55 Mark

  12. Slide 12: Portfolio review – Lease expiry profile, 95% secured

     Portfolio review – Lease expiry profile 12 12 95% of gross rental income is secured >83% gross rental income will expire post FY10/11 Portfolio Lease Expiry by Gross Rental Income 50% 46.1% 30% 27.0% 11.6% 10.1% 10% 5.1% FY09/10 FY10/11 FY11/12 FY12/13 FY13/14 and -10% beyond Number of leases expi

  13. Slide 13: Portfolio review – Mid-term rent reviews

     Portfolio review – Mid-term rent reviews 13 13 22% of gross rental income has built-in fixed rent step-ups of approximately 4.0% for FY10/11 FY10/11 - Fixed % mid-term lease rent reviews GROSS RENTAL INCOME Property Leases Average fixed rent review Property Total Portfolio KeyPoint 8 11.7% 3.9% 0.

  14. Slide 14: Portfolio review – Stability of income

     Portfolio review – Stability of income 14 Master lessees/ blue chip tenants with long leases contribute over 65% of total gross rental income Master Leases Other Tenants, % (Gross Rental 34.2% Tenant Lease Expiry Income) Master Leases, 37.1% Alexandra Technopark – Orrick Investments Pte Ltd Aug 20

  15. Slide 15: Asset updates – KeyPoint

     Portfolio review – Asset updates 15 KeyPoint  Tenancy activity: KeyPoint Occupancy rate KeyPoint Occupancy – 11 new leases commenced in 3QFY09/10 85% with average rental of $4.1 psf pm 80% 78.6% 75% – Non-renewals of 2,486 sqft were completely offset by new leases in 3QFY09/10 with net 70% take u

  16. Slide 16: Asset updates – China Square Central

     Portfolio review – Asset updates 16 China Square Central  Healthy committed occupancy rate: Committed occupancy rate Office 95.9% Retail 79.7% Total 91.5% – Signed committed new leases and renewals of  Capital enhancement works: 67,543 sqft in 3QFY09/10 – Create an outdoor alfresco dining area a

  17. Slide 17: Asset updates – 55 Market Street, Galleria Otemae

     Portfolio review – Asset updates 17 55 Market Street  Tenancy activity: – Three new tenants have committed to lease office space for 2, 3 and 4 years respectively, totaling 8,601sf, around 11.9% of 55 Market Street NLA at average rent of $5.6 psf pm Galleria Otemae Building, Osaka  New tenant: –

  18. Slide 18: Capital management

    Capital management 2. J IRASERS TRUST

  19. Slide 19: Capital Management – Debt statistics

    19  Capital Management – Debt statistics 19 No debt maturing until after July 2012 Statistics Borrowings and assets by currency As at 30 June 2010 All debt facilities mature post-July 2012 1500 Total Assets (S$’000) 2,028,276 1260 Gross Borrowings (S$’000) 818,470 1000 Units on Issue and Issuable 3

  20. Slide 20: Capital Management – Interest rate statistics

     Capital Management – Interest rate statistics 20 Hedged more than 80% of Gross Borrowings Hedging Debt Debt Composition – Floating vs Hedged As at As a % of: 30 June 2010 Floating, 19.6% SGD Borrowings 75.2% AUD Borrowings 75.8% JPY Borrowings 100.0% Total Gross Borrowings 80.4% Hedged, 80.4% For

  21. Slide 21: Moving forward

    Moving forward mm GH (ounenast TRUST

  22. Slide 22: Market outlook

     Market outlook 22 Strengthening of business confidence and better economic outlook for Singapore and Australia  Perth 1 – Perth’s CBD office leasing market made a strong start to 2010, with local business confidence in Western Australia strengthening as a result of surging resource sector demand

  23. Slide 23: Value proposition: attractive yield & discount to NAV

     Value proposition 23 Trading at attractive yield & discount to NAV Yield1 returns compared to Singapore 10-year bond2 NAV compared to share price3 FCOT 10-year Government bond yield NAV Share price Yield % (¢) 26.0 7.2% 42% discount 495 bps 15.0 spread 2.3% 1 Based on annualised DPU of 1.08 (¢) /F

  24. Slide 24: Growth strategy

    24  Growth strategy 24 Growth Drivers Positive rental Central reversion Park Step – up Singapore rents Australia Distributable KeyPoint, Central Park income Increase in occupancy 55 Market Street Pipeline Acquisition Assets

  25. Slide 25: Growth strategy – pipeline assets

     Growth strategy – pipeline assets 25 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 Area (

  26. Slide 26: 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 — Q3 FY2009/10 Earnings Presentation on 6ix