Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q3 FY2011 Earnings Presentation
34 slides from Frasers Centrepoint Trust's earnings presentation, Jul 26, 2011
Slide 1: Frasers Centrepoint Trust 3rd Quarter FY11 results
Frasers Centrepoint Trust 3rd Quarter FY11 results 26 July 2011
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 Causeway Point refurbishment update Growth strategy Summary
Slide 4: Results
Results a > > ‘ 3 ' BD y “A 3 A> ERASERS pe Ke CENTREPOINT TRUST
Slide 5: 3Q11 lower yoy on weaker contribution from Causeway Point due to refurbishment
Results 5 3Q11 lower yoy on weaker contribution from Causeway Point due to refurbishment Y-o-Y Apr – Jun 11 ($ ‘000) 3Q11 Highlights Change (%) • Weaker contribution from Causeway Point undergoing Gross Revenue 27,300 11% planned refurbishment, Causeway Point gross revenue 28% lower year-on-year Les
Slide 6: 3Q11 gross revenue & net property income by property
Results 6 3Q11 gross revenue & net property income by property Gross revenue S$ m 11% CWP undergoing planned refurbishment 30.7 27.3 28% 5% 14.8 3Q11 10.7 11.4 10.8 2% 3Q10 3.2 3.1 2.0 2.0 FCT Portfolio CWP NP 1 YTP 2 ACP Net property S$ m 13% CWP undergoing planned refurbishment income 21.5 18.7 35
Slide 7: Steady 9M11 performance; stronger contributions from other malls mitigated impact
Results 7 Steady 9M11 performance; stronger contributions from other malls mitigated impact from Causeway Point refurbishment Y-o-Y Oct 10 - Jun 11 ($ ‘000) 9M11 Highlights Change (%) • Stronger revenue contributions from other malls Gross Revenue 83,739 2% mitigated the revenue decline from CWP Les
Slide 8: 9M11 gross revenue & net property income by property
Results 8 9M11 gross revenue & net property income by property Gross revenue S$ m 2% 83.7 82.3 24% 28% 44.9 9M11 34.3 33.8 94% 26.4 2% 9M10 9.6 4.9 6.1 5.9 FCT Portfolio CWP NP 1 YTP 2 ACP Net property S$ m 1% income 57.4 57.8 30% 28% 31.8 22.2 24.9 9M11 19.4 111% 6.9 3.3 3.4 3.4 9M10 FCT Portfolio
Slide 9: Continues to deliver steady returns; expects 2011 full year DPU comparable
Results 9 Continues to deliver steady returns; expects 2011 full year DPU to be comparable to prior year Quarterly DPU payout trend 2010 DPU: 8.20 cts 9M11 DPU: 5.97 cts DPU (¢) 2.16 0.21 2.06 2.07 1.95 2.07 1.91 1.94 1.95 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Income retained from previous quarters
Slide 10: Distribution details
Results 10 Distribution details Distribution period 1 April to 30 June 2011 Distribution per unit 1.95 cents Books closure date 3 August 2011 at 5 pm Payment date 29 August 2011
Slide 11: Balance sheet
Balance sheet ——. « y> — = FRASERS - GF CENTREPORNT
Slide 12: Maintaining a healthy balance sheet
Balance sheet 12 Maintaining a healthy balance sheet As at 30 June 2011 30 Sep 2010 Change Total assets $1,532.3m $1,516.2m 1.1% Net assets $983.1m $989.3m 0.6% Total units in issue 770,428,0301 767,276,5722 - NAV per unit $1.283 $1.294 0.8% 1. Excludes 1,388,554 issuable units in partial payment of
Slide 13: Refinanced $260m CMBS with 5-year term loan; no major refinancing until 2016
Balance sheet 13 • Refinanced $260m CMBS with 5-year term loan on 5 July 2011; No major refinancing until 2016 Debt information As at 30 Jun 11 Debt Maturity Profile as at 6 July 2011 (after refinancing of CMBS) Gearing ratio 31.7% Interest cover1 3.61x $260m Cost of debt (weighted) 3.83% Total debt
Slide 14: Operational performance
. — —— -« Operational performance a - a - > . - y > — =| FRASERS — GF CENTREPOINT
Slide 15: 3Q11 rental reversions
Operational performance 15 3Q11 rental reversions Net Lettable Area 3Q11 No. of renewals / Increase over New leases Area preceding rents (sq ft) % Total NLA Causeway Point 7 4,790 1.1% -0.7%1 Northpoint2 7 2,105 0.9% 7.7% YewTee Point 8 2,552 3.5% 10.0% Anchorpoint 2 517 0.7% 4.3% FCT Portfolio 24 9
Slide 16: YTD rental reversions: Healthy 9% average rental reversion for new leases
Operational performance 16 YTD rental reversions: Healthy 9% average rental reversion for new leases signed year-to-date Net Lettable Area 9M11 No. of renewals / Increase over New leases Area preceding rents (sq ft) % Total NLA Causeway Point 25 16,370 3.9% 7.5%1 Northpoint2 33 12,228 5.2% 7.5% YewT
Slide 17: Maintaining healthy portfolio occupancy
Operational performance 17 Maintaining healthy portfolio occupancy 99.4% 98.1% 92.1% 87.6% 82.9% FCT portfolio occupancy Occupancy1 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Causeway Point 100.0% 97.2%2 86.1%2 69.0%2 78.3%2 Northpoint3 99.1% 99.3% 99.1% 99.1% 98.4% YewTee Point 98.3% 98.3% 98.5% 95.8% 95.6
Slide 18: Well-staggered lease expiry profile
Operational performance 18 Well-staggered lease expiry profile Lease expiry profile1 (as at 30 Jun 2011) 43.2% Weighted avg lease term to expiry By NLA 1.60 yrs 20.5% By Gross rent 1.63 yrs 15.4% 15.9% 5.0% Expiries as % of total gross rental income FY11 FY12 FY13 FY14 FY15 Number of leases expiring
Slide 19: Causeway Point Refurbishment Update
Causeway Point Refurbishment Update
Slide 20: Causeway Point refurbishment update Summary
Enhancement growth 20 Causeway Point refurbishment update Summary • 51.5% of works completed as at June 2011; • Occupancy swinging back to 78% in June from moving out of the most intense phase the low of 69% in March • Refurbished sections at basement level, Level 1 & 2, have opened for trading, dra
Slide 21: Causeway Point refurbishment works 51.5% completed @ 30 June 2011
Enhancement growth 21 Causeway Point refurbishment works 51.5% completed @ 30 June 201 Full completion scheduled December 2012 Timeline1 30 June 2011 Level Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 L1 L2 L3 B1 L4 L5 1. Indicative timing, subject to changes.
Slide 22: Causeway Point progress report – Refurbished sections opened for trading
Causeway Point progress report – Refurbished sections opened for trading 22 New kiosks at Basement Supermarket store at Basement
Slide 23: Causeway Point progress report – Refurbished sections opened for trading
Causeway Point progress report – Refurbished sections opened for trading 23 Completed works at Level 1 New Tenants at Level 1
Slide 24: Causeway Point progress report – Refurbished sections opened for trading
Causeway Point progress report – Refurbished sections opened for trading 24 New Tenants at Level 2
Slide 25: CWP occupancy rate swinging back up strongly, projected to stay at 90% and above
Causeway Point progress report 25 CWP occupancy rate swinging back up strongly, projected to stay at 90% and above from August 11 onwards Causeway 110% Point Average Occupancy Projection 100% 90% 80% 70% CWP June occupancy rebound to 78% from 69% in March 60% Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar
Slide 26: Refurbishment expected to add $162 million to Causeway Point's capital value
Enhancement growth 26 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 - $71
Slide 27: Growth strategy
Growth strategy —_— ae y> — = FRASERS - GF CENTREPORNT
Slide 28: Clear growth outlook
Growth strategy 28 Clear growth outlook Strategy 1 Acquisition growth • Target acquisition of Bedok Point in FY2011 • Pipeline assets and opportunity for 3rd party assets 2 Enhancement growth • Causeway Point refurbishment to provide enhanced, sustainable income growth 3 Organic growth • Positive re
Slide 29: Sponsor's main retail assets
Acquisition growth 29 Sponsor’s main retail assets Changi City Point The Centrepoint Bedok Point NLA (sf) MRT station Est. completion Est. catchment population Changi City Point 207,479 Expo 2H11 600,000 Bedok Point 80,985 Bedok Completed 295,000 The Centrepoint 395,315 Somerset Completed 4,987,600
Slide 30: Bedok Point: Target acquisition expected in FY2011
Acquisition growth 30 Bedok Point: Target acquisition expected in FY2011 Bedok Point Multi-tenanted retail mall comprising two basement levels and four storeys above ground. NLA 80,985 sq ft TOP Nov 2010
Slide 31: Outstanding track record of growth from asset enhancement initiatives
Enhancement growth 31 Outstanding track record of growth from asset enhancement initiatives Financials Mall NPI before FY2010 NPI1 Change Change revamp ($ 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 32: Summary
Summary a > > ‘ 3 ' BD y “A 3 A> ERASERS pe Ke CENTREPOINT TRUST
Slide 33: 3Q11 Results summary
Summary 33 3Q11 Results summary 1 Performance • 9M11 YTD steady performance • CWP swinging back up; other malls continue to deliver strong results • Strong balance sheet, low gearing at 32% • No major refinancing until 2016 2 Growth • Acquisition pipeline (Bedok Point; Changi City Point; 3rd party a
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
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