Frasers Logistics & Commercial Trust · SGX:BUOU
Frasers Logistics & Commercial Trust — FY2021 Earnings Presentation
47 slides from Frasers Logistics & Commercial Trust's earnings presentation, Nov 11, 2021
Slide 1: FY2021 Results Presentation
Frasers Logistics & Commercial Trust FY2021 Results Presentation 11 November 2021
Slide 2: Important notice and disclaimer
This presentation is for information only and does not constitute or form part of an offer, solicitation, recommendation or invitation for the sale or purchase or subscription of securities, including units in Frasers Logistics & Commercial Trust (formerly known as Frasers Logistics & Industrial Tru
Slide 3: Delivering growth and resilience
Delivering growth and resilience FLCT delivered a year of operational stability and financial growth, amidst uncertainty in the macroenvironment DPU Portfolio Value Achieved year-on-year growth in DPU (+7.9%) 7.68 S cents S$7.3 billion +7.9% y-o-y +S$603.9m(1) or up 9.0% from and NAV per unit (+12
Slide 4: Proactive lease management and strategic portfolio rationalisation
Proactive lease management and strategic portfolio rationalisation Proactive management ensuring stability of income Strategic acquisitions 93 leases signed in FY2021, representing 13.3% of portfolio lettable Reinforced core portfolio with S$562.4 million portfolio acquisition of area six European p
Slide 5: Commitment to High ESG Standards
Commitment to High ESG Standards External Recognition Acting Progressively Integrate ESG considerations into our business decisions to build resilience and holistically manage risks Consuming Responsibly Making conscious decisions that will positively 5-star rating Highest (Diversified – Office/Indu
Slide 6: Financial Review
Financial Review Industriepark 309, Gottmadingen, Germany
Slide 7: Key Highlights 2H2021
Key Highlights • DPU for 2H2021 at 3.88 Singapore cents is 6.3% higher than 2H2020 • Higher revenue and adjusted net property income resulted from the acquisitions undertaken in FY2020 3.88 Singapore cents and the 2021 Acquisitions. This was partially offset by the effect of the Sandstone Place Dive
Slide 8: Key Highlights FY2021
Key Highlights • DPU for FY2021 at 7.68 Singapore cents is 7.9% higher than FY2020 • Higher revenue and adjusted net property income resulted from the merger between FLCT and FCOT, the 7.68 Singapore cents acquisitions undertaken in FY2020 and the 2021 Acquisitions. This was partially offset by the
Slide 9: Delivering stable and growing returns to Unitholders
Delivering stable and growing returns to Unitholders DPU History (Singapore cents) 2H2021 Distribution Details Total distribution for the period from 1 April 2021 to 30 FY2021 DPU September 2021 was 3.88 Singapore cents, representing a 7.68 S cents full payout of 2H2021 distributable income, compr
Slide 10: Balance sheet as at 30 September 2021
As at 30 September 2021 ◆ The value of investment properties increased by 15.1% from S$6,501 million as at 30 September 2020 to S$7,482 million as at 30 September 2021, due mainly to: Net fair value adjustments of S$602.9 million The completion of the acquisition of two properties in UK and four pro
Slide 11: Key credit metrics
Key credit metrics Key Credit Metrics Well-spread Debt Maturity Profile Average weighted debt maturity improved by 0.3 years to 3.4 years, with the 7-year As at Change from notes issuance in July 2021 and new financings entered into in FY2021 30 Sep 2021 30 Jun 2021 Over 95% of the borrowings du
Slide 12: Prudent capital management
Prudent capital management Investment Properties(1) and Debt(2) as at 30 September 2021 (in S$ millions) Investment Properties Debt 7,324 Total: S$7,324 million Total: S$2,532 million 3,332 2,532 1,953 1,160 1,289 343 724 750 305 Total Portfolio Australian Portfolio European Portfolio Singapore Port
Slide 13: Portfolio Review
Portfolio Review Farnborough Business Park, United Kingdom
Slide 14: Valuation uplift of 9.0% over carrying value
Valuation uplift of 9.0% over carrying value ◆ The FLCT portfolio of 103 properties was valued at S$7.3 billion as at 30 September 2021, up 9.0% over the carrying value of S$6.7 billion Logistics & Industrial (As at 30 September 2021) Location Properties Valuation (local currency, million) Valuation
Slide 15: Logistics & industrial properties
Logistics & industrial properties ◆ The 95 logistics & industrial properties were valued at S$4,474.4 million as at 30 September 2021, up 15.7% over the carrying value of S$3,879.5 million The 59 Australian properties were valued at A$2,489.3 million, up 22.1% over the carrying value of A$2,039.3 mi
Slide 16: Commercial properties
Commercial properties ◆ The 8 commercial properties were valued at S$2,849.5 million as at 30 September 2021, down 0.1% from the carrying value of S$2,853.4 million The 3 Australian properties were valued at A$905.0 million, up 1.6% over the carrying value of A$891.1 million The 2 Singapore properti
Slide 17: Breakdown by asset type and geography
Breakdown by Asset Type and Geography(1) 103 Properties in Five Developed Countries(1) Logistics & Industrial Commercial Total 95 8 103 Properties Properties Properties Office & Business Parks, Germany, 22.0% $4,474.4 m $2,849.5 m $7,323.9 m 21.5% Portfolio value(1) Portfolio value(1) Portfolio valu
Slide 18: Leasing summary 4Q2021
151,975 sqm of leasing for the period from July to September 2021 (“4Q2021”) 151,975 sqm of leasing in 4Q2021, with an average portfolio rental reversion of -2.3%, translating into 352,972 sqm of leasing in FY2021, with an average portfolio rental reversion of -1.7% 4Q2021 Industrial Leasing Summa
Slide 19: Portfolio lease expiry profile
Portfolio Lease Expiry Profile as at 30 September 2021(1) Well spread-out lease expiry profile with no more than 16.6% of GRI expiring in any single year, translating Logistics & Industrial into reduced concentration risk Business Space 11 industrial and 53 commercial leases for renewal in FY202
Slide 20: Occupancy review
Occupancy review Breakdown by asset type Logistics & Industrial As at 30 Sep 21(1) As at 30 Jun 21 Change Australia 100.0% 100.0% - Europe 100.0% 100.0% - (2) United Kingdom 100.0% 100.0% - Logistics & Industrial Portfolio: 100.0% 100.0% - Commercial Country As at 30 Sep 21(1) As at 30 Jun 21 Change
Slide 21: Top-10 portfolio tenants
Top-10 portfolio tenants WALE No. Top-10 Portfolio Tenants(1) Country % of GRI (Years) 23.5% 4.9 years GRI contribution Average WALE for 1. Commonwealth of Australia Australia 4.6% 3.8 from Top-10 tenants Top-10 tenants 2. Google Asia Pacific Singapore 3.7% 3.3 High-quality tenant base with majori
Slide 22: Well-diversified tenant base with lower concentration risk
Well-diversified tenant base with lower concentration risk Portfolio Tenant Sector Breakdown(1)(2) 3PL / Distribution 23.2% 57.5% Consumer & Retail Products 19.0% 1.8% of GRI contribution from L&I tenants Manufacturing 6.6% Automotives Manufacturing 4.2% IT Products & Services 8.0% Government and re
Slide 23: Update and commentary on COVID-19
Update and commentary The REIT Manager is working closely with FLCT’s customers to overcome this challenging period together while focusing on managing any near- to mid-term downside risk from the pandemic The COVID-19 impact on FLCT’s distributable income for FY2021 is approximately S$1.6 milli
Slide 24: Market Information and Strategy
Market Information and Strategy Survitec & Phoenix Facility, Wetherill Park, New South Wales, Australia
Slide 25: Key economic indicators and market overview: Australia
Key economic indicators and market overview Key Economic Indicators(1) Industrial and Commercial Market Overview (3) GDP Industrial Prime Grade Net Face Rent Prime CBD Commercial Net Face Rent +0.7% q-o-q for the Jun 21 quarter (A$/sqm/yr) (A$/sqm/yr) +9.6% from the corresponding Jun 20 quarter Bris
Slide 26: Key economic indicators and market overview: Germany and Netherlands
Key economic indicators and market overview Key Economic Indicators in Germany(1) Key Economic Indicators in the Netherlands(4) GDP Unemployment Rate GDP Unemployment Rate +1.8% q-o-q for Sep 21 quarter 5.4% for the month of Sep 21 +3.8% q-o-q for Jun 21 quarter 3.23% for the month of Sep 21 +2.5% f
Slide 27: Key economic indicators and market overview: Singapore
Key economic indicators and market overview Key Economic Indicators(1) Singapore Office and Business Park Markets Overview(3) GDP Grade A and Grade B Office Rents Business Park Rents(4) (S$ psf per month) (S$ psf per month) +0.8% q-o-q for Sep 21 quarter +6.5% from corresponding Sep 20 quarter Grade
Slide 28: Key economic indicators and market overview: UK
Key economic indicators and market overview Key Economic Indicators(1) South East Commercial Market Overview(3) GDP Take Up (sq ft '000) • Take-up in the South East in Q3 2021 amounted Q1-Q3 Q4 3-year average to 605,271 sq ft, pushing up YTD 2021 take-up +5.5% q-o-q for the Jun 21 quarter volume to
Slide 29: Our Objectives and competitive advantages
Our Objectives: To deliver stable and regular distributions to unitholders and achieve sustainable long-term growth in DPU Harnessing FLCT’s Competitive Advantages Proactive leasing to maintain high occupancy rate, long Active Asset WALE and a diversified tenant base. Assess and undertake Prime an
Slide 30: Appendix: Additional Portfolio, Market and Financial Information
Appendix: Additional Portfolio, Market and Financial Information FDM & TTI Facility, New South Wales, Australia
Slide 31: Flagship portfolio of properties in five developed countries
6th largest SREIT(1) with a flagship portfolio of 103 properties in five developed countries 103 properties S$7.3 billion 96.2% 4.8 years High ESG Standards • Net zero carbon commitment Across 5 Countries Portfolio Value(2) Occupancy Rate(3) WALE(3) • GRESB 5-Star rating Australia Germany Singapore
Slide 32: Logistics & industrial portfolio by country
As at 30 Sept 2021 Australia Germany The Netherlands UK Total No. of Properties 59 29 6 1 95 Portfolio Value(1) S$2,443.0 m S$1,614.3 m S$339.1 m S$78.0 m S$4,474.4 m Lettable Area 1,311,199 sqm 709,858 sqm 233,873 19,534 2,274,464 sqm Average Age by Value 9.0 years 7.5 years 13.0 years 3.0 years 8.
Slide 33: Commercial properties
Caroline As at Alexandra Farnborough Maxis Business Blythe Valley Chisholm 30 Sept 2021 Technopark Business Park Park Park Centre Country Canberra, Australia Singapore United Kingdom United Kingdom United Kingdom Caroline Chisholm Centre Alexandra Technopark Ownership 100.0% 100.0% 100.0% 100.0% 100
Slide 34: Commercial properties: Cross Street Exchange, 357 Collins Street, Central Park
Cross Street 357 Collins Central As at 30 Sept 2021 Exchange Street Park Country Singapore Melbourne, Australia Perth, Australia Cross Street Exchange Ownership 100.0% 100.0% 50.0% Property Value 632.0 317.0 328.8(2) (S$ m)(1) Lettable Area (sqm) 36,497 31,962 66,016 357 Collins Street WALE(3) 2.5 y
Slide 35: Top-10 tenants
Top-10 tenants Breakdown by asset type % of FLCT % of FLCT WALE Top-10 Logistics & Industrial Tenants(1) Portfolio GRI WALE (Years) Top-10 Commercial Tenants(1) Portfolio GRI (Years) Hermes, Germany 2.7% 11.0 Commonwealth of Australia 4.6% 3.8 Ceva Logistics, Australia 1.8% 3.7 Google Asia Pacific,
Slide 36: Lease expiry profile: Logistics & Industrial
Lease expiry profile Logistics & Industrial Industrial Portfolio Lease Expiry Profile as at 30 September 2021(1) (Based on % of industrial Portfolio GRI) Australia Germany and the Netherlands United Kingdom 20.0% 1.0% 13.3% 12.2% 11.6% 11.3% 11.2% 9.6% 4.9% 10.3% 2.3% 1.7% 0.2% 3.0% 7.7% 2.8% 5.3% 1
Slide 37: Lease expiry profile: Commercial
Lease expiry profile Commercial Commercial Portfolio Lease Expiry Profile as at 30 September 2021(1) (Based on % of commercial Portfolio GRI) Australia Singapore United Kingdom 24.9% 22.7% 2.5% 6.9% 9.5% 11.9% 11.0% 9.4% 1.6% 8.8% 2.8% 7.8% 2.9% 1.4% 2.3% 12.9% 9.0% 4.7% 4.4% 3.5% 4.1% 6.4% 3.5% 2.2
Slide 38: Australian industrial market: Sydney
Australian industrial market Sydney ◆ Supply: Development activity in the nine months to September 2021 was 192,418 sqm with 11 developments completed. A further 413,867 sqm of supply is expected to complete by year-end, concentrated in the Outer Central West and Outer South West precincts, bringing
Slide 39: Australian industrial market: Melbourne
Australian industrial market Melbourne ◆ Supply: Three new projects were completed over 3Q21, introducing a total of 107,760 sqm of new industrial space into the Melbourne market. The additional area lifted total supply in 2021 to 536,031 sqm, already exceeding the 10-year annual average of 473,054
Slide 40: Australian industrial market: Brisbane
Australian industrial market Brisbane ◆ Supply: Development activity in the nine months to September 2021 was below the 10-year average of 295,823 sqm, with 93,003 sqm of new stock added to the Brisbane market. New construction continues to be concentrated in the Southern precinct. The largest compl
Slide 41: Australian commercial market: Melbourne CBD office
Australian commercial market Melbourne CBD office ◆ Supply: Three projects reached practical completion in the Melbourne CBD over the quarter delivering at total of 138,252 sqm of new supply. The new supply is 63% pre-committed. There are now six new projects totalling 177,690 sqm and two refurbishm
Slide 42: Australian commercial market: Perth CBD office
Australian commercial market Perth CBD office ◆ Supply: Development activity in the Perth CBD has been subdued with no new developments being completed in the last 24 months. There are currently two major new developments under construction in the Perth CBD, Chevron HQ and Capital Square Tower 2. Th
Slide 43: Singapore commercial market: CBD office
Singapore commercial market CBD office ◆ Supply: 3Q21 saw the completion of the office component in CapitaSpring which secured more than 80% occupancy. ◆ Demand: Majority of the leasing transactions are for renewals and “flight to quality” moves driven by the technology and non-banking financial ser
Slide 44: Singapore commercial market: Business park
Singapore commercial market Business park(1) ◆ Supply: From 4Q21 to 2024, an estimated 4.57 mil sq ft of new supply will come on stream. The majority of the supply pipeline is concentrated within the Rest of Island submarket of about 4.26 million sq ft. ◆ Demand: In 3Q21, the business park market re
Slide 45: Financial information: portfolio revenue and NPI by sector and region
Financial information Portfolio revenue and NPI by sector and region Breakdown by sector Breakdown by region Singapore UK 18.8% Commercial, 43.4% 10.6% Singapore: 18.8% Australia: 14.2% UK: 10.4% Revenue: Europe Revenue: S$469.3 m 21.0% S$469.3 m Industrial, 56.6% Australia Australia: 35.4%
Slide 46: Frasers Property entities and key acronyms
Frasers Property entities Other key acronyms FLCT: Frasers Logistics & Commercial Trust AEI: Asset Enhancement Initiative FLT: Frasers Logistics & Industrial Trust CBD: Central Business District FCOT: Frasers Commercial Trust COVID-19: Coronavirus disease 2019 FPL or the Sponsor: Frasers Property Li
Slide 47: Experience matters.
Experience matters.
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