Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Centrepoint Trust — Q4 2006 Earnings Presentation
43 slides from Frasers Property's earnings presentation, Oct 16, 2006
Slide 1: Fourth Quarter 2006 Results
Fourth Quarter 2006 Results 5 Jun (Listing Date) to 30 Sep 06 Analyst and Media Briefing 16 October 2006
Slide 2: Agenda
Agenda Highlights Financial Results Portfolio Update Going Forward Anchorpoint Asset Enhancement Plans Summary
Slide 3: Highlights
FRASERS CENTREPOINT TRUST ? Highlights
Slide 4: Solid Financial Performance
Solid Financial Performance Distribution Per Unit Exceeds Forecast by 7.2% For the Period Actual Forecast (1) Variance Change % 5 Jul 06 – 30 Sep 06 Distributable income $8.9M $8.3M + $0.6M + 7.2% Distributable income per 1.45 cents 1.36 cents 0.09 cents + 7.2% unit Annualized distribution 6.03 cent
Slide 5: Strong Unit Performance
Strong Unit Performance FCT Unit Price Appreciated 19% since Listing 125% Relative Performance: FCT vs STI Index 120% Liquidity Statistics FCT + 19% STI + 10% Avg Daily Traded 115% 796,616 Volume (1) 110% Total Shareholder 20.8% Return (2) 105% 100% Market Cap (3) S$756 million 95% 90% 5 July 06 13
Slide 6: Distribution Details
Distribution Details FCT Units trade ex-distribution on 23 October 2006 Distribution for the period 5 July 2006 – 30 September 2006 Distribution of 1.45 cents per Unit Notice of Book Closure 16 October 2006 Ex-Date 23 October 2006 Book Closure Date 26 October 2006 Distribution Payment Date 29 Novemb
Slide 7: Financial Results
FRASERS CENTREPOINT TRUST ? Financial Results
Slide 8: Distribution Statement 5 July '06 – 30 September '06
Distribution Statement 5 July ’06 – 30 September ’06 Actual Forecast (1) Variance S$ ‘000 S$ ‘000 (%) Gross revenue 17,392 17,055 2.0% Less property expenses (5,362) (5,429) (1.2%) Net property income 12,030 11,626 3.5% Net Borrowing costs (2,612) (2,622) (0.4%) Trust Expenses (218) (537) (59.4%) Ma
Slide 9: Property Gross Revenue
Property Gross Revenue 5 July ’06 – 30 September ’06 Gross Revenue Exceeds Forecast by 2.0% S$M 2.0% Actual 20 17.4 17.1 18 Forecast 1.4% 16 14 11.9 11.7 12 10 4.1% 8 6 4.5 4.3 - In Line - 4 2 1.1 1.1 0 FCT Portfolio Causeway Northpoint Anchorpoint Point
Slide 10: Property Operating Expenses
Property Operating Expenses 5 July ’06 – 30 September ’06 Portfolio Operating Expenses 1.2% Lower than Forecast 1.2% S$M Actual 6 5.36 5.43 Forecast 5 1.0% 4 3.42 3.46 3 1.1% 2.5% 2 1.24 1.25 1 0.71 0.72 0 FCT Portfolio Causeway Point Northpoint Anchorpoint
Slide 11: Net Property Income
Net Property Income 5 July ’06 – 30 September ’06 Portfolio Net Property Income Exceeds Forecast by 3.5% S$M 3.5% Actual 14 12.03 Forecast 12 11.63 2.5% 10 8.44 8.24 8 6 6.3% 4 3.23 3.04 2.3% 2 0.36 0.35 0 FCT Portfolio Causeway Northpoint Anchorpoint Point
Slide 12: Debt Capital Information
Debt Capital Information As at 30 September 2006 Gearing Below 28% - Further Upside with Corporate Credit Rating in FY07 Debt Maturity Profile Relevant Debt Statistics Revolving Credit S$3.7M Facility (Oct 2006) Gearing Ratio 27.6% Term Loan Facility S$260.0M (Jul 2011) Interest Cover 3.95 x ¾ Compl
Slide 13: Valuation and Property Yield
Valuation and Property Yield As at 30 September 2006 Increase in Valuation to S$936 Million Sep 2006 Dec 2005 In S$ millions Variance Valuation (1) Valuation (2) Causeway Point 635.0 622.3 + 12.7 Northpoint 263.0 255.9 + 7.1 Anchorpoint 38.0 37.0 + 1.0 FCT Portfolio 936.0 915.2 + 20.8 Notes: (1) Val
Slide 14: Balance Sheet
Balance Sheet As at 30 September 2006 Increase in NAV to S$1.09 per Unit S$ Millions Non Current Assets 939.0 Current Assets 15.5 Total Assets 954.5 NAV per Unit S$1.09 Current Liabilities 24.9 Adjusted NAV per Unit Non Current Liabilities 258.6 (excluding income available for $1.08 distribution) To
Slide 15: Portfolio Update
FRASERS CENTREPOINT TRUST ? Portfolio Update
Slide 16: Summary of Renewals / New Leases
Summary of Renewals / New Leases For the Period 5 July to 31 October 2006 Strong demand and a good pipeline of tenants has provided platform for favourable Renewals / 18 16 renewals / new leases which increased 6% New Leases 16 14 12 10 10 8 6 6 4 2 0 0 FCT Portfolio Causeway Northpoint Anchorpoint
Slide 17: Portfolio Lease Expiry Profile for 2007 by Property
Portfolio Lease Expiry Profile for 2007 by Property - Lease expiry profile positions malls well for rental reversions Expiring 70 - Anchorpoint expiry profile favourable for ACP AEI program 61 Leases 60 50 40 33 30 20 17 11 10 0 FCT Portfolio Causeway Northpoint Anchorpoint Point Expiries as % Total
Slide 18: Portfolio Lease Expiry Profile by Year
Portfolio Lease Expiry Profile by Year Expiring FCT Portfolio Weighted Average Lease Term Leases To Expiry by Rental & NLA (as at 30 Sep 06) 180 162 By Gross Rent: 1.8 years 160 By NLA: 2.1 years 140 ¾ Positioned positively for reversions in a 120 strong retail outlook 100 74 80 61 60 40 20 5 0 2007
Slide 19: High Committed Occupancy Rates at Properties
High Committed Occupancy Rates at Properties Strong Demand and Limited Supply = High Occupancy 3 mths to As at Occupancy (%) FY2003 FY2004 FY2005 31 Dec 05 30 Sep 06 Causeway Point 99.9% 99.8% 99.7% 100.0% 100.0% Northpoint 99.6% 100.0% 99.6% 99.3% 100.0% Anchorpoint 84.1% 91.2% 95.9% 93.6% 92.7% FC
Slide 20: Top 10 Tenants
Top 10 Tenants Top 10 Tenants Account for 36% Gross Rental vs 37% as at 31 Dec 05 Ranked by Gross Rent Net Lettable Area % Total Net % Total Gross Tenant (sqft) Lettable Area Rents Cold Storage Singapore (1983) Pte Ltd(1) 72,835 11.8 8.3 Courts (Singapore) Limited 36,147 5.8 5.8 Metro Private Limite
Slide 21: Diversified Trade Mix by NLA
Diversified Trade Mix by NLA 8% 1% Fashion 12% 3% Household Services/Education 10% Beauty, Hair, Cosmetics, 12% Personal Care Food & Restaurants Books, Music, Art & Craft, Hobbies Sports Apparel & Equipment 4% Department Store 17% 4% Supermarket/Hypermarket Healthcare Leisure/Entertainment 2% Vacant
Slide 22: Diversified Trade Mix by Gross Rental Income
Diversified Trade Mix by Gross Rental Income 4% Fashion 5% 22% Household 6% Services/Education Beauty, Hair, Cosmetics, 9% Personal Care Food & Restaurants Books, Music, Art & Craft, 3% Hobbies Sports Apparel & Equipment 11% 6% Department Store Supermarket/Hypermarket 5% Healthcare 6% Leisure/Entert
Slide 23: Going Forward
FRASERS CENTREPOINT TRUST ? Going Forward
Slide 24: Going Forward: Value Enhancements for Next 3 Years
Going Forward Value Enhancements for Next 3 Years Clarity of Value Enhancements Deliver Sustainable DPU growth Double Asset Size in 3 years Acquisitions Asset Enhancement Initiatives Reversions Inc leases with Expected ROI at least 12% for any AEI project GTO and Step-up Rents Northpoint NP AEI 75%
Slide 25: Going Forward: Northpoint 2 & Centrepoint Shopping Centre
Going Forward Northpoint 2 & Centrepoint Shopping Centre Northpoint 2 Centrepoint Shopping Centre ¾ FCL obtained approval from the ¾ Centrepoint Extension leasing in progress Government to alienate & purchase the land on 23 Aug 06 ¾ Substantially leased ¾ Will be integrated to Northpoint Shopping ¾
Slide 26: Northpoint 2 Artist Impressions
Going Forward Northpoint 2 Artist Impressions Northpoint 2 Public Thoroughfare Atrium Northpoint 2 Main Atrium
Slide 27: Going Forward: Rental Reversions
Going Forward Rental Reversions ¾ Lease expiry profile positions malls well for positive rental reversions ¾ GTO and step-up rents to be part of all renewals and new leases ¾ Expect to increase % leases with either GTO or step-up rents from 28% to 75% in two years 75% Percentage of Total Leases 40%
Slide 28: Asset Enhancement Programs 2007 - 2008
Going Forward Asset Enhancement Programs 2007 - 2008 ¾ Target ROI no lower than 12% for all asset enhancement programs ¾ Specific AEI plans will be disclosed at the appropriate timing Current Timeline (1) Primary Areas of Focus Jan 07 – Sep 07 Repositioning Staged AEI for entire mall Sep 07 – Oct 08
Slide 29: Anchorpoint Asset Enhancement Plans
Anchorpoint Asset Enhancement Plans
Slide 30: Repositioning Anchorpoint into a niche "Village Mall" with a strong F&B Offering
Repositioning Anchorpoint into a niche “Village Mall” with a strong F&B Offering
Slide 31: Artist Impression - Anchorpoint New Façade
Artist Impression - Anchorpoint New Façade
Slide 32: Artist Impression – Anchorpoint 1st Storey Corridor
Artist Impression – Anchorpoint 1st Storey Corridor
Slide 33: Artist Impression – Anchorpoint 1st Storey Corridor
Artist Impression – Anchorpoint 1st Storey Corridor
Slide 34: Artist Impression – Anchorpoint Basement Feature
Artist Impression – Anchorpoint Basement Feature
Slide 35: Artist Impression – Anchorpoint Basement Atrium
Artist Impression – Anchorpoint Basement Atrium
Slide 36: Artist Impression – Anchorpoint Basement Atrium
Artist Impression – Anchorpoint Basement Atrium
Slide 37: Artist Impression – Anchorpoint Landscape Layout
Artist Impression – Anchorpoint Landscape Layout
Slide 38: Value Creation of Planned Anchorpoint AEI
Value Creation of Planned Anchorpoint AEI ¾ Anchorpoint AEI presents the lowest risk with the highest return ¾ AEI program has committed income support of S$1.3 million ¾ More than 50% of leases have indicated an interest to remain Anchorpoint AEI Net Property Income S$2.59M (up 72%) Average Gross R
Slide 39: Summary
FRASERS CENTREPOINT TRUST ? Summary
Slide 40: In Summary
In Summary Strong Performance ¾ 4Q06 results outperformed IPO forecast ¾ 4Q06 DPU of 1.45 cents exceeds forecast by 7.2% ¾ Portfolio valuation increased to $936M ¾ NTA per unit up 11.4% to S$1.09 from S$1.03 per unit ¾ Strong operating performance 9 High Occupancy 9 Healthy rental reversions of 6% L
Slide 41: FCT Recent Corporate Events
FCT Recent Corporate Events Frasers Centrepoint Trust Frasers Centrepoint Trust Winner Corporate Website Most Transparent Company 2006 www.fraserscentrepointtrust.com (New Issues Category) Securities Investors Association of Singapore September 2006
Slide 42: Thank You
2. “T Thank You
Slide 43: 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 res
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