Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — Q1 FY2012 Earnings Presentation

26 slides from Frasers Property's earnings presentation, Feb 1, 2012

  1. Slide 1: Frasers Commercial Trust 1QFY12 Financial Results

    Frasers Commercial Trust 1QFY12 Financial Results 01 February 2012

  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 2 GY unten TRUST

  5. Slide 5: Results – 1QFY12 Key highlights

     Results – 1QFY12 5 Key highlights:  Gross revenue of S$30.7m, ↑ 6% Y-o-Y  Net property income of S$24.6m, ↑ 7% Y-o-Y  Distributable income to Unitholders of S$9.6m, ↑ 22% Y-o-Y  Distribution to CPPU holders of S$4.7m, represents annualised distribution yield of 5.5% on the offer price of S$1.0

  6. Slide 6: Financial highlights: 1QFY12 DPU rose by 21% Y-o-Y

     Results – Financial highlights 6 1QFY12 DPU rose by 21% Y-o-Y 1 Oct 2011 – 31 Dec 2011 1Q Y-o-Y Contributing factors (S$ ‘000) FY12 Change (%)  Higher contribution from Central Park was offset by Gross Revenue 30,661 6% loss of contribution from Cosmo Plaza Net Property Income 24,633 7%  Higher

  7. Slide 7: Rising occupancy & rentals translate to higher NPI Y-o-Y

     Results – Financial highlights 7 Rising occupancy & rentals translate to higher NPI Y-o-Y Net Property Income (S$m) TOTAL: S$24.633 million 1Q FY12 Singapore: S$13.354 million (54%) 7% Australia: S$9.297 million (38%) Japan: S$1.982 million (8%) Driven by higher 24.6 22.9 occupancy & rentals 30% D

  8. Slide 8: Portfolio review

    Portfolio review Z FRASERS Ka COMMERCIAL TRUST

  9. Slide 9: Occupancy Rates & WALE

     Portfolio review – Occupancy Rates & WALE 9 Singapore & Australian portfolio contribute > 91.5% of NPI income Geographical occupancy and % of NPI contribution As at Key portfolio statistics 31 December 2011 Ave Occupancy Rates % of NPI Contribution WALE by gross rental income 3.4 years 98.1% 97.8%

  10. Slide 10: Lease expiry profile: Healthy lease expiry profile

     Portfolio review – Lease expiry profile 10 10 Healthy lease expiry profile Portfolio lease expiry by gross rental income 50% 30% 27.9% 28.1% 24.6% 15.5% * 10% 22.4% 3.9% FY12 FY13 FY14 FY15 FY16 and beyond -10% Number of leases expiring 92 111 51 11 16 NLA (sq ft) expiring 549,236 259,103 1,190,20

  11. Slide 11: Breakdown of FY12 lease expiry profile

     Portfolio review – Lease expiry profile 11 Breakdown of FY12 profile on a see through basis of CSC underlying leases Property Lease Expiry as a proportion of total Portfolio Gross Rental Income 12% 11.0% 10% 8% 6% 3.9% 4% 2.8% 2.0% 1.7% 2% 1.0% 0% China Square Central 55 Market Street KeyPoint Cen

  12. Slide 12: Mid-term rent reviews: Organic growth from step-up rents

     Portfolio review – Mid-term rent reviews 12 12 Organic growth provided by built-in step-up rents FY12 - Fixed % lease rent reviews FY12 – 15 - Portfolio fixed % reviews GROSS RENTAL INCOME Portfolio gross rental income Weighted average fixed step % Average Total Property Leases step-up rent Proper

  13. Slide 13: Stability of income

     Portfolio review – Stability of income 13 Master lessees/ blue chip tenants with long leases contribute >43% of total gross rental income Master Lease, Master Lease 19.8% % (Gross Rental Other Tenants, Tenant Lease Expiry Income) 56.9% Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 19.

  14. Slide 14: Asset updates: KeyPoint – Occupancy above 90%

     Portfolio review – Asset updates 14 KeyPoint – Occupancy above 90%  Tenancy activity: KeyPoint occupancy rate Property management by KeyPoint Occupancy – Major tenants commenced/renewed In-house team from May 09 95% 90.2% include Singapore Accredited Estate 90% Agencies, Version 2 Singapore and 8

  15. Slide 15: China Square Central – Taking over the management

     Portfolio review – Asset updates 15 China Square Central – Taking over the management  Tenancy activity: – Major tenants commenced/renewed include Australia and New Zealand Banking Group, Sushi Tei and Cold Storage Singapore – Occupancy rate as at 31 December was 92.5%  Master Lease: – Taking ov

  16. Slide 16: China Square Central – Average passing rent below $6.1 psf pm

     Portfolio review – Asset updates 16 China Square Central – Average passing rent below $6.1 psf pm Lease expiry by gross rental income 80% 60% 12.6% 40% 34.5% Committed 20% 40.1% 7.6% 2.8% 2.4% 0% FY12 FY13 FY14 FY15 FY16 and beyond Number of leases expiring 46 51 14 6 1 NLA (sq ft) expiring 179,82

  17. Slide 17: Central Park – Secured three new leases

     Portfolio review – Asset updates 17 Central Park – Secured three new leases  Tenancy activity: – Hamersley Iron has signed two new leases for expansion at Central Park commencing in January and April 2012 respectively – Secured a new retail tenant commencing in April 2012 – In total, all three ne

  18. Slide 18: Capital management

    Capital management 2. J RISERS TRUST

  19. Slide 19: Capital Management – Debt statistics

    19  Capital Management – Debt statistics 19 A portion of the investment in overseas assets is hedged naturally Statistics Borrowings and assets by currency As at 31 December 1,500 2011 1,325 Total Assets (S$’000) 2,052,014 Gross Borrowings (S$’000) 754,833 1,000 S$ million Units on Issue and Issuab

  20. Slide 20: Successful refinancing of the AUD Loan extends debt maturity

    20  Capital Management – Debt statistics 20 Successful refinancing of the AUD Loan extends debt maturity to FY15 Debt Maturity Profile* 800 700 120 600 S$ million 500 400 New AUD Facility 300 - Interest margin reduced to 1.55% 500 200 from 2.65% previously 100 - Caroline Chisholm Centre no longer f

  21. Slide 21: Interest rate statistics: Hedged about 84% of Gross Borrowings

     Capital Management – Interest rate statistics 21 Hedged about 84% of Gross Borrowings Hedging debt Debt composition – floating vs. hedged As at As a % of: 31 December 2011 Floating, 15.8% Total Gross Borrowings 84.2% Hedged, 84.2% For quarter ended 31 December 2011

  22. Slide 22: Moving forward

    Moving forward ZA J iRsERs TRUST

  23. Slide 23: Market outlook - Singapore

     Market outlook - Singapore 23 Office market moderated marginally in 4Q 2011  Market conditions 1 FCOT’s Singapore properties average occupancy 99.0% – The annual net absorption came to over 2 million sf 97.8% 98.1% 98.0% 97.4% 97.3% in 2011 97.0% 97.0% 96.1% – Grade A rents declined marginally by

  24. Slide 24: Market outlook - Australia

     Market outlook - Australia 24 Strong demand from resource related tenants in Perth CBD office markets Perth CBD supply 1 Perth CBD average net face rents 1 Net Face Rent (AUD per sqm pa)  Market conditions 1 – Strong demand from resource related tenants coupled with supply-side constraints – Prem

  25. Slide 25: Summary: Key focus

    25  Summary 25 Key focus  Continue to focus and implement a proactive leasing strategy  Take over the management of China Square Central and explore opportunities for enhancement  Undertake an early refinancing for the debt facilities  Continue to review and reshape the portfolio

  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 — Q1 FY2012 Earnings Presentation on 6ix