Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q2 FY2016 Earnings Presentation
45 slides from Frasers Centrepoint Trust's earnings presentation, Apr 22, 2016
Slide 1: Financial Results Presentation for 2nd Quarter FY2016
Frasers Centrepoint Trust Financial Results Presentation for 2nd Quarter FY2016 from 1 January 2016 to 31 March 2016 22 April 2016
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: Contents
Contents 3 Results slide 4 Balance sheet slide 13 Operational performance slide 17 Northpoint AEI slide 24 Outlook slide 32 Appendix slide 35
Slide 4: Results
Results
Slide 5: 2Q16 Results Highlights
Results - 2Q16 5 2Q16 Results Highlights Financial performance • 2Q16 DPU of 3.039 cents, up 2.6% year-on-year (2Q15 DPU: 2.963 cents) • Gross Revenue of $47.1 million, down 0.8% year-on-year • Net Property Income of $33.7 million, up 0.4% year-on-year • Net Asset Value per Unit of $1.91 as at 31
Slide 6: 2Q16 DPU of 3.039 cents, up 2.6% year-on-year
Results – 2Q16 6 2Q16 DPU of 3.039 cents, up 2.6% year-on-year 2Q16 2Q15 Y-o-Y $’000 Jan 16 to Mar 16 Jan 15 to Mar 15 change Gross Revenue 47,089 47,487 ▼0.8% • Lower utility tariff rates Property Expenses 13,414 13,941 ▼ 3.8% • Write-back of provision for property tax as a result of resolved pro
Slide 7: 1H16 DPU of 5.909 cents, up 3.4% year-on-year
Results – 2Q16 7 1HQ16 DPU of 5.909 cents, up 3.4% year-on-year 1H16 1H15 Y-o-Y $’000 Oct 15 to Mar 16 Oct 14 to Mar 15 change Gross Revenue 94,165 94,665 ▼0.5% Property Expenses 26,945 28,221 ▼ 4.5% Net Property Income 67,220 66,444 ▲1.2% Income Available for Distribution 56,686 53,754 ▲5.5% Cash
Slide 8: FCT delivers steady and regular DPU
Results – 2Q16 8 FCT delivers steady and regular DPU FCT Quarterly DPU DPU (¢) +2.6% year on year 3.022 3.036 3.039 Cash Retained: 2.96 1Q16: 0.150 cents per unit 2.88 2.875 2.859 2.87 2.75 2Q16: 0.116 cents per unit 2.50 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
Slide 9: 2Q16 Gross Revenue comparable to same period last year
Results – Performance by Properties 9 2Q16 Gross Revenue comparable to same period last year • Causeway Point revenue up 2.9% y-o-y from higher gross rent, turnover rent and other incomes • Northpoint revenue decline due to vacancy arising from AEI which started in March and lower income from rent
Slide 10: 2Q16 Property Expenses down 3.8% year-on-year
Results – Performance by Properties 10 2Q16 Property Expenses down 3.8% year-on-year • Decrease due mainly to lower utility tariff rates and write-back of provisions for property. The decrease was partially offset by increase in other property expenses Property Expenses $ million 2Q16 2Q15 ▼ 3.8%
Slide 11: 2Q16 Net Property Income steady at $33.7 million
Results – Performance by Properties 11 2Q16 Net Property Income was steady year-on-year at $33.7 million Net Property Income (NPI) $ million 2Q16 2Q15 ▲ 0.4% 33.68 33.55 ▲ 5.5% 16.14 15.30 ▼ 6.4% 8.69 9.28 ▲ 1.8% ▲ 2.5% ▼ 12.6% ▼ 6.7% 4.01 3.94 2.47 2.41 1.11 1.27 1.26 1.35 FCT Portfolio Causeway
Slide 12: Bigger malls to continue to drive portfolio NPI growth
Results – NPI contribution by Properties 12 Bigger malls to continue to drive portfolio NPI growth • Causeway Point, Northpoint and Changi City Point account for approximately 86% of portfolio NPI Percentage of Net Property Income contribution by mall in 2Q16 Anchorpoint Bedok Point 3.7% 3.3% YewT
Slide 13: Balance sheet
Balance sheet
Slide 14: Strong financial position with stable gearing level at 28.3%
Balance sheet 14 Strong financial position with stable gearing level at 28.3% • Lower average cost of borrowing due to favourable movement in interest rates for borrowings which are not swapped to fixed rates As at 31 March 16 30 September 15 Gearing ratio1 28.3% 28.2% Interest cover for the quart
Slide 15: NAV per unit stable at $1.91
Balance sheet 15 NAV per unit stable at $1.91 31 March 2016 30 Sep 2015 As at S$’000 S$’000 Non-current assets 2,528,082 2,527,148 Current assets 26,218 21,598 Total assets 2,554,300 2,548,746 Current liabilities (326,870) (327,669) Non-current liabilities (472,615) (466,533) Total liabilities (79
Slide 16: Weighted average debt maturity: 1.91 years
Balance sheet 16 Weighted average debt maturity @ 31 March 2016: 1.91 years Type of borrowings Aggregate amount Secured bank borrowings: S$334 million (46.1%) Unsecured bank borrowings: S$170 million (23.5%) Medium Term Note: S$220 million (30.4%) Total Borrowings: S$724 million (100.0%) FCT enter
Slide 17: Operational performance
Operational performance
Slide 18: Overall portfolio occupancy at 92.0%
Operational performance 18 18 Overall portfolio occupancy at 92.0%, decline due mainly to Northpoint AEI • Portfolio occupancy decline due mainly to Northpoint asset enhancement initiative (AEI) works which started in March 2016 • Occupancy at Causeway Point, Changi City Point and YewTee Point rem
Slide 19: Average rental reversion at +5.6% for 2Q16
Operational performance 19 Average rental reversion at +5.6% for 2Q16 No. of NLA (sq ft) As % Mall’s Change compared to 2Q16 preceding rental (1 Jan – 31 Mar 2016) renewals Renewed NLA rates1 Causeway Point 9 13,597 3.3% 8.7% Northpoint 2 1,166 0.5% 1.7% Changi City Point 8 6,212 3.0% 17.4% Bedok
Slide 20: Maintaining positive rental reversions through economic cycles
Operational performance 20 Maintaining positive rental reversions through economic cycles FCT rental reversions1 (FY2007 – 1HFY2016) Average rental reversion for 15.0% 1HFY2016: +12% 14.0% 12.8% 12.1% 12.0% 8.6% 7.2% 7.7% 6.5% 6.3% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 1HF
Slide 21: Portfolio Lease Expiry as at 31 March 2016
Operational performance 21 Portfolio Lease Expiry as at 31 March 2016 • 49% of the total NLA of expiring leases in FY2016 has been renewed in 1Q and 2Q of FY2016* Weighted Average Lease Expiry (WALE) Expiry profile as % of total gross rental income By NLA 1.51 years (1Q16: 1.61 years) 36.7% 32.0%
Slide 22: Larger malls the key focus of lease renewals in FY2016
Operational performance 22 The 3 larger malls remain the key focus of the lease renewals in FY2016 as at 31 March 2016 For remaining 6 months Number of Nett Lettable Area as % of leased as % of total gross in FY2016 Leases Expiring (NLA) Expiring (sq ft) area of Mall rent of Mall Causeway Point 30
Slide 23: 2Q16 shopper traffic up 11.4% year-on-year
Operational performance 23 2Q16 shopper traffic up 11.4% year-on-year • Northpoint registered double-digit y-o-y increase as more commuters and shoppers traffic pass through the mall after an outdoor public corridor adjacent to the mall was closed due to construction works • Excluding Northpoint,
Slide 24: Northpoint AEI
Artist’s impression Northpoint AEI
Slide 25: Asset Enhancement Initiative for Northpoint Shopping Centre
Northpoint AEI 25 Asset Enhancement Initiative (AEI) for Northpoint Shopping Centre The AEI at Northpoint is part of the overall strategy to periodically upgrade our malls to provide sustainable income growth for FCT 18-month AEI commenced in March 2016, expected completion is in September 201
Slide 26: AEI works to be carried out in Phases
Northpoint AEI 26 AEI works to be carried out in 2 Phases PHASE 1 (March to October 2016) Projected Occupancy at Northpoint (Mar 16 – Sep 16) • Reconfiguration of retail space 100% • Relocation of Food court at Basement level 2 90% 81.7%* 81% 86% 80% 75% • Relocation of through block link escalato
Slide 27: AEI to enable integration with Northpoint City
Northpoint AEI 27 AEI to enable Northpoint to benefit from the integration with upcoming retail component of Northpoint City by Frasers Centrepoint Limited Plan view of Northpoint Shopping Centre and the mixed-commercial and residential* development by Frasers Centrepoint Limited Links between Nor
Slide 28: Major AEI works in Phase 1 (Level B2)
Northpoint AEI 28 Major AEI works in Phase 1 Level B2 Northpoint Artist’s impression of link to Northpoint City at B2 City Major AEI works at this level include: • Reconfiguration of retail space • Relocation of Food court at Basement level 2 • Relocation of through block link escalators • Upgradi
Slide 29: Major AEI works in Phase 1 (Level B1)
Northpoint AEI 29 Major AEI works in Phase 1 Level B1 Northpoint City Artist’s impression of link to Northpoint City at B1 Major AEI works at this level include: • Reconfiguration of retail space • Relocation of through block link escalators • Upgrading of passenger lift, toilets, ceiling and floo
Slide 30: Major AEI works in Phase 1 (Level 1)
Northpoint AEI 30 Major AEI works in Phase 1 Level 1 Artist’s impression of link to Northpoint City at Level 1 Major AEI works at this level include: • Reconfiguration of retail space • Relocation of through block link escalators • Upgrading of passenger lift, toilets, ceiling and floor at common
Slide 31: Major AEI works in Phase 1 (Level 2)
Northpoint AEI 31 Major AEI works in Phase 1 Level 2 Artist’s impression of link to Northpoint City at Level 2 Major AEI works at this level include: • Reconfiguration of retail space • Relocation of through block link escalators • Upgrading of passenger lift, toilets, ceiling and floor at common
Slide 32: Outlook
Outlook
Slide 33: Outlook
Outlook 33 Outlook • The Singapore retail environment continues to be challenging. Excluding motor vehicles, retail sales index rose 1.4% year-on-year in January 2016, but fell 9.6% year-on-year in February 2016. • Asset Enhancement works at Northpoint have commenced. While the works have been pha
Slide 34: Thank you
Thank you Analyst & media contact: Chen Fung-Leng Frasers Centrepoint Asset Management Ltd Tel: (65) 6277-2657 Email: fungleng.chen@fraserscentrepoint.com Website: www.fct.sg
Slide 35: Distribution details
Appendix: Distribution details 35 Distribution details Distribution period 1 January 2016 to 31 March 2016 Distribution per unit 3.039 cents Ex-date 28 April 2016 (Thursday) Books closure date 3 May 2016 (Tuesday) at 5.00 pm Payment date 31 May 2016 (Tuesday)
Slide 36: 2Q16 year-on-year and quarter-on-quarter comparison
Appendix: Year-on-year and quarter-on-quarter comparison 36 2Q16 year-on-year and quarter-on-quarter comparison Year-on-Year Comparison Quarter-on-Quarter Comparison 2Q16 Change Change 2Q15 1Q16 $’000 (unless otherwise indicated) Inc/(Dec) Inc/(Dec) Gross Revenue 47,089 47,487 (0.8%) 47,075 0.0% P
Slide 37: Debt Information as at 31 March 2016
Appendix: Debt Information as at 31 March 2016 37 Debt Information Average cost of Borrowings (all-in) 2.286% For the quarter 1 Jan - 31 Mar 2016 Moody's rating Baa1 S&P rating BBB+ Interest cover (EBIT/Σinterest) (times) 7.44 For the quarter 1 Jan - 31 Mar 2016 Gearing 28.3% as at 31 Mar 2016 Amo
Slide 38: Portfolio Lease expiry profile as at 31 March 2016
Appendix: Portfolio Lease expiry profile as at 31 March 2016 38 Lease Expiry Profile as at 31 March 2016 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Total Causeway Point No of leases 30 90 73 32 0 0 225 Expiries as % Total NLA 9.9% 39.5% 25.9% 24.8% 0.0% 0.0% 100.0% NLA (sq ft) Expiring 40,602 162,2
Slide 39: Trade mix as at 31 March 2016
Appendix: Trade mix as at 31 March 2016 39 Trade Classifications % NLA % Rents 1 Fashion 14.5% 21.3% 2 Household 7.7% 7.0% 3 Services/Education 8.7% 9.0% 4 Beauty, Hair, Cosmetics, Personal Care 5.3% 7.9% 5 Food & Restaurants 29.2% 34.6% 6 Books, Music, Art & Craft, Hobbies 3.0% 2.9% 7 Sports Appa
Slide 40: Top 10 tenants as at 31 March 2016
Appendix: Top 10 tenants as at 31 March 2016 40 No. Tenant % NLA % Rents 1 Cold Storage Singapore (1983) Pte Ltd1 7.6% 5.6% 2 Copitiam Pte Ltd2 3.8% 3.7% 3 Metro (Private) Limited3 5.6% 3.4% 4 Courts (Singapore) Limited 3.3% 2.8% 5 Koufu Pte Ltd 2.8% 2.4% 6 Food Republic Pte Ltd 1.6% 1.8% 7 Watson
Slide 41: Historical portfolio information by quarter
Appendix: Historical portfolio information by quarter 41 Selected Financial Information Any di s crepa ncy between i ndi vi dua l a mount a nd the a ggrega te i s due to roundi ng. Note: Yel l ow cel l s mea ns property i s undergoi ng AEI 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Gross Rental Income ($ '000)
Slide 42: Historical profit and loss statement by quarter
Appendix: Historical profit and loss statement by quarter 42 Selected P&L Information 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 REVENUE Gross rent 41,773 41,839 41,942 42,360 41,828 41,019 Other revenue 5,405 5,648 5,155 5,119 5,247 6,070 47,178 47,487 47,097 47,479 47,075 47,089 EXPENSES Property Manager's f
Slide 43: Location of FCT's Malls
Appendix: Location of FCT’s Malls 43 Singapore-centric, suburban-focused retail asset portfolio Six retail malls next to or near to Mass Rapid Transit (MRT) stations / Bus Interchanges Woodlands BUS Yishun YewTee BUS Expo Bedok BUS Queenstown Map source: URA Master Plan 2014 Illustration not to sca
Slide 44: Summary of FCT's portfolio
Appendix: Portfolio Information 44 Summary of FCT’s portfolio FCT Portfolio Changi City Causeway Point Northpoint Bedok Point YewTee Point Anchorpoint as at 30 Sep 2015 Point Net Lettable Area 415,774 235,850 207,244 82,713 73,670 70,989 (sq ft) 99 years leasehold 99 years leasehold 60 years lease
Slide 45: Sponsor's retail assets in Singapore
Appendix: Sponsor’s retail assets 45 Sponsor’s retail assets in Singapore 12 retail malls in Singapore managed by Frasers Centrepoint Limited, including 6 malls in FCT Northpoint Retail Component of Causeway Point Northpoint City (2) (1): FCL owns 1/3 proportionate share of (under development) Wate
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