Frasers Logistics & Commercial Trust · SGX:BUOU
Frasers Logistics & Commercial Trust — H1 2021 Earnings Presentation
40 slides from Frasers Logistics & Commercial Trust's earnings presentation, May 6, 2021
Slide 1: Frasers Logistics & Commercial Trust 1HFY21 Results Presentation
Frasers Logistics & Commercial Trust 1HFY21 Results Presentation 6 May 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: Frasers Property entities and other acronyms
Frasers Property entities Other 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 Limite
Slide 4: Operational stability and financial growth
Operational stability and financial growth 1. Operational Highlights 2. Robust Financials Proactive lease management S$130.4 million 35.3% 1HFY21 Distributable Income Aggregate Leverage(1) 126,133 sqm ▲ 71.1% y-o-y S$1,929 million headroom (3) leased/renewed in 1HFY21 representing 5.0% of portfolio
Slide 5: Stable and growing DPU
Stable and growing DPU Distribution Timetable Distribution Period 1 October 2020 to 31 March 2021 Distribution Rate 3.80 Singapore cents Ex-date 12 May 2021 Record Date 17 May 2021 Distribution Payment Date 18 June 2021 DPU History (Singapore cents) 3.80 3.65 +4.1% 3.47 +5.2% 3.46 +0.3% Saalhoffer S
Slide 6: Financial Review
Financial Review 150-168 Atlantic Drive, Keysborough, Melbourne, Australia
Slide 7: Key Highlights
Key Highlights • DPU for 1HFY21 at 3.80 Singapore cents is 9.5% higher than 1HFY20 • Higher revenue and adjusted net property income resulted from the Merger(1) with Frasers Commercial 3.80 Singapore cents Trust in April 2020, the acquisitions undertaken in FY20 and strengthening of AUD:SGD and EUR:
Slide 8: Balance sheet as at 31 March 2021
As at 31 March 2021 ◆ The value of investment properties decreased by 0.6% from S$6,501 million as at 30 September 2020 to S$6,462 million as at 31 March 2021, due mainly to: The completion of the divestment of the 50% interest in 99 Sandstone Place, Parkinson, Queensland The completion of the dives
Slide 9: Key credit metrics
Key credit metrics Key Credit Metrics Well-spread Debt Maturity Profile Successfully refinanced and partially paid down c.S$378 million of borrowings in As at Change from 1HFY21 31 Mar 2021 31 Dec 2020 The Manager is in advanced discussion with banks on the refinancing of the borrowings maturing
Slide 10: Prudent capital management
Prudent capital management Investment Properties(1) and Debt(2) as at 31 March 2021 6,301 Investment Properties Debt 2,984 2,319 1,590 1,270 1,030 700 367 457 222 Total Portfolio Australian Portfolio European Portfolio Singapore Portfolio UK Portfolio Interest Risk Management as at 31 March 2021 SGD
Slide 11: Portfolio Review
Portfolio Review Walter-Gropius Straße 19, Bergheim, Germany
Slide 12: Portfolio overview
Portfolio overview Selectively diversified portfolio with attractive metrics Breakdown by Asset Type and Geography(1) 97 Properties in Five Developed Countries(1) ~S$6.3 billion Logistics & Industrial Commercial Total Portfolio Value(1) 90 7 97 Properties Properties Properties Office & Business Park
Slide 13: 62,587 sq m of leasing in 2QFY21
62,587 sq m of leasing for the period from January to March 2021 (“2QFY21”) 2QFY21 Industrial Leasing Summary Lettable Area Average Lease No. of Leases Annual Increment Reversion(1) (sqm) Term 62,587 sqm Australia 5 53,683 2.5 years 3.0 – 3.3% -3.6% leased/renewed in 2QFY21, totaling Europe 0 - - -
Slide 14: Minimal near-term lease expiries
Minimal near-term lease expiries Portfolio Lease Expiry Profile as at 31 March 2021(1) Well spread-out lease expiry profile with no more than 17.0% of GRI Logistics & Industrial 3.5 % expiring in any single year % of GRI due for Business Space 6 industrial and 30 commercial leases expiring in FY
Slide 15: Top-10 portfolio tenants
Top-10 portfolio tenants High-quality and well-diversified tenant base WALE No. Top-10 Portfolio Tenants(1) Country % of GRI (Years) 24.1 % 4.5 years % GRI contribution Average WALE for 1. Commonwealth of Australia Australia 5.1% 4.3 from Top-10 tenants Top-10 tenants 2. Google Asia Pacific Singapor
Slide 16: Well-diversified tenant base with low concentration risk
Well-diversified tenant base with low concentration risk Portfolio Tenant Sector Breakdown(1)(2) 58.8 % Stable and broad-based tenant mix with diversification across industries % of GRI contribution Well-positioned to capitalise on sectoral trends with approximately one-third of the logistics fr
Slide 17: COVID-19 update and commentary
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 in 1HFY21 is approximately S$1.2 millio
Slide 18: Market Information and Strategy
Market Information and Strategy Maxis Business Park, Bracknell, UK
Slide 19: Key economic indicators and market overview: Australia
Key economic indicators and market overview Key Economic Indicators(1) Overview of the Industrial and Commercial Market (3) Sequential GDP Industrial Prime Grade Net Face Rent Prime CBD Commercial Net Face Rent +3.1% for the Dec 20 quarter (A$/sqm/yr) (A$/sqm/yr) +3.4% for the preceding quarter Bris
Slide 20: Key economic indicators and market overview: Germany and Netherlands
Key economic indicators and market overview Key Economic Indicators in Germany(1) Key Economic Indicators in the Netherlands(4) Sequential GDP Unemployment Rate Sequential GDP Unemployment Rate -1.7% for the Mar 21 quarter 4.6% for the month of Mar 21 -0.1% for the Dec 20 quarter 3.5% for the month
Slide 21: Key economic indicators and market overview: Singapore
Key economic indicators and market overview Key Economic Indicators(1) Overview of the Singapore Office and Business Park Markets(3) Sequential GDP Grade A and Grade B Office Rents Business Park Rents(4) (S$ psf per month) (S$ psf per month) +2.0% for the Mar 21 quarter +3.8% in the preceding quarte
Slide 22: Key economic indicators and market overview: United Kingdom
Key economic indicators and market overview Key Economic Indicators(1) South East Office Trends and Outlook(3) Sequential GDP • Take-up levels across the South East totaled 647,890 sqft in Q1 2021, the highest level of take-up +1.3% for the Dec 20 quarter since the beginning of the pandemic. This is
Slide 23: FLCT objectives and strategies
FLCT objectives and strategies Harnessing competitive advantages to create long-term value and sustainable returns ◆ Our Objectives: Deliver stable and regular distributions to unitholders Achieve sustainable long-term growth in DPU Active Asset Selective Acquisition Capital & Risk Management Develo
Slide 24: Appendix: Additional Portfolio Information
Appendix: Additional Portfolio Information Farnborough Business Park, the United Kingdom
Slide 25: Portfolio overview – logistics & industrial
Portfolio overview – logistics & industrial Prime and modern properties in Australia, Germany and the Netherlands Australia As at 31 March 2021 Australia Europe Total No. of Properties 59(1) 31 90 (12) Portfolio Value(2) S$2,081.5 m S$1,590.5 m S$3,672.0 m Lettable Area 1,311,199 sqm 881,282 sqm 2,1
Slide 26: Portfolio overview – commercial
Portfolio overview – commercial Quality & well-located commercial portfolio Caroline Cross Street 357 Collins Central Alexandra Farnborough Maxis Business Chisholm Exchange Street Park Technopark Business Park Park Centre As at 31 March 2021 CBD Commercial Office and Business Parks Total Melbourne,
Slide 27: Occupancy rate
Occupancy rate Breakdown by asset type Logistics & Industrial As at 31 Mar 21 As at 31 Dec 20 Change Australia 100.0% 100.0% - Europe 100.0% 100.0% - Logistics & Industrial Portfolio: 100.0% 100.0% - Commercial Country As at 31 Mar 21 As at 31 Dec 20 Change Cross Street Exchange Singapore 82.6% 89.0
Slide 28: 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) Ceva Logistics, Australia 2.0% 4.2 Commonwealth of Australia 5.1% 4.3 BMW, Germany 1.9% 6.7 Google Asia Pacific, Sing
Slide 29: Lease expiry profile: Logistics & Industrial
Lease expiry profile Logistics & Industrial Industrial Portfolio Lease Expiry Profile as at 31 March 2021(1) (% of total FLCT Portfolio GRI) 10.7% Australia Germany and the Netherlands 7.0% 7.5% 6.6% 6.4% 6.7% 1.4% 1.0% 0.7% 2.9% 5.2% 5.0% 5.2% 1.7% 1.7% 2.7% 1.8% 5.7% 5.6% 5.7% 4.6% 4.1% 0.3% 3.5%
Slide 30: Lease expiry profile: Commercial
Lease expiry profile Commercial Commercial Portfolio Lease Expiry Profile as at 31 March 2021(1) (% of total FLCT Portfolio GRI) Australia Singapore UK 11.5% 1.2% 10.0% 2.8% 3.9% 4.7% 4.0% 4.7% 0.4% 4.3% 3.2% 1.4% 0.4% 0.7% 0.5% 6.4% 1.7% 3.7% 1.9% 1.4% 0.1% 2.9% 1.2% 3.2% 0.3% 3.2% 0.0% 1.2% 1.2% 0
Slide 31: Industrial leadership and strong commercial performance
Industrial Leadership The industrial portfolio was named Global Sector Leader (Listed Industrial) for the third consecutive year in the 2020 GRESB Assessment(1) Strong Commercial Top-5 in Asia Pacific Diversified – Office/Industrial(1) Performance Highest Rated Highest Green Star performance-r
Slide 32: Appendix: Additional Market Information
Appendix: Additional Market Information Cross Street Exchange, Singapore
Slide 33: Australian industrial market: Sydney
Australian industrial market Sydney ◆ Supply: Over the last 12 months, 439,990 sqm of new stock was completed in Sydney which is below the historic ten-year average. There were limited new completions in the first quarter of 2021 (“1Q21”) with only 3 developments reaching completion totalling 31,749
Slide 34: Australian industrial market: Melbourne
Australian industrial market Melbourne ◆ Supply: A total of four projects with a total GLA of 125,660 sqm reached practical completion in Melbourne over 1Q21. Over the last 12 months, 767,325 sqm of new stock was completed in Melbourne which is significantly above the historic ten-year average. In 1
Slide 35: Australian industrial market: Brisbane
Australian industrial market Brisbane ◆ Supply: During the March quarter, two developments were completed in Brisbane adding 12,800 of GLA to the market. Over the last 12 months, development activity in Brisbane has exceeded the 10-year average, with 378,605 sqm of new stock being added to the marke
Slide 36: Australian commercial market: Melbourne CBD office
Australian commercial market Melbourne CBD office ◆ Supply: There were no new major commercial developments completed in the Melbourne CBD in 1Q21. During 2020, a total of seven new projects were completed in the Melbourne CBD contributing approximate 329,000 sqm of net lettable area (“NLA”) making
Slide 37: 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 12 months. There are currently two major new developments under construction in the Perth CBD, Chevron HQ and Capital Square Tower 2. Th
Slide 38: Singapore commercial market: CBD office
Singapore commercial market CBD office ◆ Supply: There has been some new office completions in Q1 21, bringing total new completions in the 12-month period to 31 March 21 at c.636k mil sq ft. The bulk of the office supply will be injected into the market from 2021 to 2023, with bigger projects that
Slide 39: Singapore commercial market: Business park
Singapore commercial market Business park(1) ◆ Supply: The completion of on-going projects are expected to be delayed by at least three months due to disruptions in the construction industry. From 2021 to 2023, an estimated 4.14 million sq ft of new supply will come on stream. ◆ Demand: Leasing acti
Slide 40: Experience matters.
Experience matters.
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