Frasers Property Ltd. · SGX:TQ5

Frasers Property — Frasers Commercial Trust — FY2010 Earnings Presentation

29 slides from Frasers Property's earnings presentation, Oct 22, 2010

  1. Slide 1: Frasers Commercial Trust 4QFY10 & Full Year Financial Results

    Frasers Commercial Trust 4QFY10 & Full Year Financial Results 22 October 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 – FY10 key highlights

     Results – FY10 5 Key highlights:  Full year distributable income to Unitholders of S$34.5m, ↑ 31% y-o-y  Distribution income to CPPU holders of S$18.8m, represents 5.5% distribution yield on the offer price of S$1.0  Full year DPU of 1.12 cents translates to distribution yield of 6.8%1  Singap

  6. Slide 6: Results – Financial highlights 4Q DPU up 55% Y-o-Y

     Results – Financial highlights 6 4Q DPU up 55% Y-o-Y 1 Jul 2010 – 30 Sep 2010 4Q Y-o-Y Contributing factors (S$ ‘000) FY10 Change (%)  Full quarter contribution from Alexandra Gross Revenue 29,291 Technopark and improved performance for KeyPoint 14% & Australia properties  Increase in Gross Reve

  7. Slide 7: Results – Financial highlights FY distributable income increased 31% Y-o-Y

     Results – Financial highlights 7 FY distributable income increased 31% Y-o-Y 1 Oct 2009 – 30 Sep 2010 Y-o-Y 1 FY10 Contributing factors (S$ ‘000) Change (%)  Full twelve months contribution from Alexandra Gross Revenue 117,934 21% Technopark, more favourable A$ exchange rate  Increase in Gross R

  8. Slide 8: Results – Distribution payment

     Results – Distribution payment 8 Distribution to be paid on 29 November 2010 Distribution Period 1 April 2010 to 30 September 2010 Distribution of 0.5549 cents per Unit comprising: a) taxable income distribution of 0.4750 cents; Ordinary Unit Distribution Rate b) tax-exempt income distribution of

  9. Slide 9: Portfolio review

    Portfolio review mm GH (ounenast TRUST

  10. Slide 10: Portfolio review – Valuations 1.9% increase in portfolio value

     Portfolio review – Valuations 10 1.9% increase in portfolio value Variance from last financial year Local currency Translation as at Date of Value 30 September 2010 Total variance Total variance Asset valuation (millions) (S$ million) 1 (S$ million) (%) China Square Central 30 September 2010 S$545

  11. Slide 11: Valuations: Singapore and Australia properties registered higher valuation

     Portfolio review – Valuations 11 Singapore and Australia properties registered higher valuation  Singapore & Australia: Asset values 1 TOTAL: S$1,985.2 million – Properties recorded a total valuation gain of Singapore: S$1,298.9 million (66%) S$54.8 million Australia S$502.9 million (25%) Japan:

  12. Slide 12: Occupancy Rates & WALE

     Portfolio review – Occupancy Rates & WALE 12 Singapore and Australia occupancy rates >96% and contribute more than 93% of portfolio Net Property Income (“NPI”) Geographical occupancy and % of NPI contribution As at Key portfolio statistics 30 September 2010 Ave Occupancy Rates % of NPI Contributio

  13. Slide 13: Lease expiry profile: Healthy lease expiry profile

     Portfolio review – Lease expiry profile 13 13 Healthy lease expiry profile Portfolio lease expiry by gross rental income 50% 28.6% 30% 23.8% 23.8% 11.2% 11.6% 10% FY11 FY12 FY13 FY14 FY15 and beyond -10% Number of leases expiring 88 90 55 8 18 NLA (sq ft) expiring 197,557 568,542 187,138 1,101,918

  14. Slide 14: Lease expiry profile: Only 11.2% of gross rental income due for renewal

     Portfolio review – Lease expiry profile 14 Only 11.2% of gross rental income is due for renewal for FY11 Property lease expiry as a proportion of total portfolio gross rental income 6% 5.3% 5% 4% 3% 2.2% 1.7% 2% 1.0% 1% 0.3% 0.5% 0% 55 Market Street KeyPoint Central Park Cosmo Plaza Galleria Otema

  15. Slide 15: Mid-term rent reviews

     Portfolio review – Mid-term rent reviews 15 15 Almost 25% of gross rental income has built-in fixed rent step-ups of approximately 4.0% for FY11 FY11 - Fixed % lease rent reviews FY11 - 14 - Portfolio fixed % reviews GROSS RENTAL INCOME Portfolio gross rental income Weighted average fixed step % A

  16. Slide 16: Stability of income

     Portfolio review – Stability of income 16 Master lessees/ blue chip tenants with long leases contribute 65% of total gross rental income Master Leases Other Tenants, % (Gross Rental 35.0% Tenant Lease Expiry Income) Master Leases, 36.8% Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 20

  17. Slide 17: Asset updates: KeyPoint

     Portfolio review – Asset updates 17 KeyPoint  Tenancy activity: KeyPoint occupancy rate Property management by KeyPoint Occupancy 85% – 15 new leases and renewals have In-house team from May 09 81.1% commenced in 4QFY10 with average 80% rental range from $3.9 to $5.0 psf pm 75% 70% – Non-renewals

  18. Slide 18: Asset updates: China Square Central

     Portfolio review – Asset updates 18 China Square Central  Healthy committed occupancy rate: – Committed occupancy has increased from 91.5% in June to 93.1% in September – New leases and renewals signed include  Mouth Restaurant – retail  Don’s pie – retail  Berkley Insurance Company – office C

  19. Slide 19: Asset updates: China Square Central lease expiry

     Portfolio review – Asset updates 19 China Square Central Lease expiry by gross rental income 80% 57.5% 60% 40% 26.2% 20% 15.5% 0.8% 0.0% 0% FY11 FY12 FY13 FY14 FY15 and beyond Number of leases expiring 29 53 24 2 0 NLA (sq ft) expiring 94,840 184,752 49,773 2,217 0 Expiries as % total Gross Rental

  20. Slide 20: Asset updates: Central Park

     Portfolio review – Asset updates 20 Central Park  Asset Enhancement: – Lavatory refurbishment for Central Park office tower – 44% out of 47 floors will be completed by 2010 – Target to refurbish 4 to 5 floors per year  Commencement of lease: – DLA Phillips Fox has commenced its 10 year lease ove

  21. Slide 21: Asset updates: 55 Market Street, Caroline Chisholm Centre

     Portfolio review – Asset updates 21 55 Market Street  Tenancy activity: – New tenant has leased office space for 4 years at $5.6 psf pm. This lease accounts for 6.5% of 55 Market Street NLA – Committed occupancy is 89.6% Caroline Chisholm Centre  Annual rent increment: – 3% annual rent increment

  22. Slide 22: Capital management

    Capital management 2. J IRASERS TRUST

  23. Slide 23: Capital Management – Debt statistics

    23  Capital Management – Debt statistics 23 Gearing below 40% Statistics Borrowings and assets by currency As at 30 September All debt facilities mature post-July 2012 1500 2010 1299 Total Assets (S$’000) 2,094,108 Gross Borrowings (S$’000) 828,461 1000 S$ million Units on Issue and Issuable 3,104,

  24. Slide 24: Capital Management – Interest rate statistics

     Capital Management – Interest rate statistics 24 Hedged more than 80% of Gross Borrowings Hedging debt Debt composition – floating vs. hedged As at As a % of: 30 September 2010 Floating, 19.6% SGD Borrowings 75.2% AUD Borrowings 75.8% JPY Borrowings 100.0% Total Gross Borrowings 80.4% Hedged, 80.4

  25. Slide 25: Moving forward

    Moving forward mm GH (ounenast TRUST

  26. Slide 26: Market outlook - Singapore

     Market outlook - Singapore 26 Demand for office space continued to improve  Market conditions 1 FCOT’s Singapore properties average occupancy 96.5% – Office rents continued to strengthen after turning 96.1% around in Q2 2010 96.0% 95.5% 95.5% 95.5% 95.2% – Grade A rents rose 6.5% q-o-q to average

  27. Slide 27: Market outlook - Australia

     Market outlook - Australia 27 Perth’s CBD office market has seen a surge in activity in 1H10 Perth CBD average net face rents 1 $900 forecast $790 Net Face Rent (AUD per sqm p.a.) $800 $720 $700 $600 $500 $400 $300 $200 $100 $0 Jan-08 Jan-06 Jan-07 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15

  28. Slide 28: Value proposition

     Value proposition 28 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 % (¢) 27.0 6.8% 39% discount 16.5 483 bps spread 2.0% 1 Based on full year DPU of 1.12 (¢) /FC

  29. Slide 29: 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

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