Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Commercial Trust — Q1 FY2014 Earnings Presentation
32 slides from Frasers Property's earnings presentation, Jan 22, 2014
Slide 1: Frasers Commercial Trust 1QFY14 Financial Results
Frasers Commercial Trust 1QFY14 Financial Results 22 January 2014
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
Slide 3: Contents
Contents 3 Results Portfolio review Capital management Moving Forward
Slide 4: Results
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Slide 5: Results – Key highlights
Results – Key highlights 5 1 Better performance of the properties Better performances of the Singapore properties, off-set by weaker Australian dollar and slightly lower occupancy for Central Park Weaker Australian dollar off-set by a realised gain on forward currency contracts arising from hedging
Slide 6: Results – Financial highlights
Results – Financial highlights 6 33% rise in distributable income for 1QFY14 1 Oct 2013 – 31 Dec 1QFY14 Y-o-Y Contributing factors 2013 (S$ ‘000) Change (%) Better performances of the Singapore properties, offset by weaker Australian dollar and Gross Revenue 28,769 3% slightly lower occupancy for Ce
Slide 7: Results – Financial highlights: Net Property Income
Results – Financial highlights 7 Better performances of the Singapore properties, offset by weaker AUD Net Property Income (S$m) TOTAL: S$22.1 million 1QFY14* Singapore: S$11.0 million (50%) Australia: S$11.1 million (50%) * * Includes the Japanese properties which were divested on 25 October 2012.
Slide 8: Results – Financial highlights: DPU growth
Results – Financial highlights 8 29.7% strong DPU growth for 1QFY14 Implementation of DRP for 1QFY14 DPU (Cents) 29.7% * Adjusted for Unit consolidation
Slide 9: Results – Distribution payment
Results – Distribution payment 9 Distribution Period 1 October 2013 to 31 December 2013 Distribution of 2.0483 cents per Unit comprising: a) taxable income distribution of 1.2188 cents; Ordinary Unit Distribution Rate b) tax-exempt income distribution of 0.7548 cents; and c) capital distribution of
Slide 10: Portfolio review
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Slide 11: Portfolio review – Valuation
Portfolio review – Valuation 11 Balanced portfolio consisting of Singapore and Australian properties No one property consist of more than 32% of portfolio value Singapore Perth Canberra Singapore $ 1,171.0 66% Australia $ 613.8 34% Total $ 1,784.8 100% As at 31 December 2013. Excludes retail turnove
Slide 12: Portfolio review – Occupancy Rates & WALE
Portfolio review – Occupancy Rates & WALE 12 Strong average occupancy rate of 97.1% Healthy WALE of 4.4 years Geographical occupancy and % of NPI contribution As at Key portfolio statistics 31 December 2013 Ave Occupancy 97.1% WALE by gross rental income 4.4 years As at 31 December 2013. Excludes re
Slide 13: Portfolio review – Lease expiry profile
Portfolio review – Lease expiry profile 13 13 More than 42% of lease expiry in FY2018 and beyond provides income stability Portfolio lease expiry by gross rental income Number of leases expiring 40 48 53 13 18 NLA (sq ft) expiring 1,121,025 92,616 187,955 95,385 715,636 Expiries as % total NLA 50.7%
Slide 14: Portfolio review – Lease expiry profile
Portfolio review – Lease expiry profile 14 Low passing rents and higher occupancy provide opportunities for higher income Represents the expiry of Property Lease Expiry as a proportion of total master lease of Alexandra Portfolio Gross Rental Income in FY14 Technopark Number of leases 31 7 1 1 expir
Slide 15: Lease expiry profile of Alexandra Technopark underlying leases
Portfolio review – Lease expiry profile of Alexandra Technopark underlying leases 15 15 More than 40% of lease expiry in FY2018 and beyond after early renewal of 511,000 square feet of leases Provide income stability after the expiry of Master Lease in August 2014 Alexandra Technopark underlying lea
Slide 16: Portfolio review – Rental reversions
Portfolio review – Rental reversions 16 Positive rental reversions for new and renewed leases commenced in 1QFY141 Positive rental reversions achieved in 1QFY141 China Square Central 20.2% 10.7% China Square Alexandra Technopark2 Central Alexandra Technopark As at 31 December 2013. Excludes retail t
Slide 17: Portfolio review – Mid-term rent reviews
Portfolio review – Mid-term rent reviews 17 17 More than 41% of leases have built-in step-up rents FY14 - Fixed % and other fixed lease rent reviews FY14 – 17 - Portfolio fixed % reviews GROSS RENTAL INCOME Average Total Property Leases step-up rent Property Portfolio China Square 5 3.1% 4.1% 1.0% C
Slide 18: Portfolio review – Stability of income
Portfolio review – Stability of income 18 Master lessee/ blue chip tenants with long leases contribute 68% of total gross rental income Master Leases % (Gross Rental Tenant Lease Expiry Income) Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 21.7% Blue Chip Tenants with Long Leases % (Gro
Slide 19: Asset updates
Portfolio review – Asset updates 19 Telok Ayer MRT station opened on 22 December 2013 – increased connectivity to China Square Central China Square Central is now close to 3 MRT stations Marina Bay Financial Marina Bay Sands Centre 6 mins 3 mins 3 mins 5 mins Chinatown MRT Telok Ayer MRT Downtown MR
Slide 20: Asset updates
Portfolio review – Asset updates 20 Expiry of Master Lease at Alexandra Technopark in August 2014 provides income uplift Positive reversions arising from: Immediate uplift in income after the expiry of the Master Lease Low underlying passing rents Alexandra Technopark is strategically located with g
Slide 21: Singapore asset updates
Portfolio review – Singapore asset updates 21 China Square Central – 55 Market Street – Alexandra Technopark – healthy leasing activities healthy occupancy rate High occupancy rate Occupancy 92.9%^ 90.0% 96.4% (underlying occupancy) Average underlying passing gross rent: S$3.4 psf New leases , OCBC
Slide 22: Australia asset updates
Portfolio review – Australia asset updates 22 Central Park – Long Caroline Chisholm Centre –full WALE of 4.1 years occupancy with long WALE of 11.5 years Occupancy 93.3% 100.0% Slightly lower occupancy compared to previous year due to Property occupied by a single tenant, i.e. the Commonwealth the d
Slide 23: Capital management
Capital management i, FRASERS A S| iRssens TRUST
Slide 24: Capital Management – Debt statistics
24 Capital Management – Debt statistics 24 Healthy interest coverage ratio of 4.18 times Low all-in interest rate of 2.7% Borrowings in AUD provide natural hedge for the Australian properties Statistics Borrowings and assets by currency As at 31 December 2013 1,400 Total Assets (S$’000) 1,832,114 1,
Slide 25: Portfolio reshaping – effects of CPPU net redemption/conversion on DPU
25 Portfolio reshaping– effects of CPPU net redemption/conversion on DPU 25 Redemption of CPPUs is accretive to Unitholders In 1QFY14, 11.1 million CPPUs were converted1 On 2 January 2014, a further 0.8 million CPPUs were converted2 To-date, a total of 342.3 million CPPUs were either redeemed or con
Slide 26: Capital Management and debt statistics
26 Capital Management and debt statistics 26 Well spread debt maturity profile Hedged about 51% of gross borrowings Debt maturity Debt composition – floating vs. hedged Post debt prepayment and divestment of Japanese properties 1 Hedging debt As at As a % of: 31 December 2013 Total facilities S$694
Slide 27: Moving forward
Moving forward i, FRASERS A S| iRssens TRUST
Slide 28: Solid fundamentals – positive market outlook
2. Solid fundamentals – positive market outlook 28 Singapore office rents trend – Rents have started to grow Singapore Grade A and Grade B office rents1 1 Source: CBRE Research
Slide 29: Solid fundamentals – demand, supply and outlook
2. Solid fundamentals – demand, supply and outlook 29 Office supply-demand dynamics1 Island-wide net absorption was 1.27 mil sf in Q4 2013 Annual net absorption of 2.45 mil sf was the highest level since 2011 and 58% higher than the 10 year average of 1.55 mil sf Overall island-wide office vacancy r
Slide 30: Premium Grade Perth office market remains resilient
2. Solid fundamentals – positive market outlook 30 Premium Grade Perth office market remains resilient Perth Office CBD forecast gross office supply by type1 Perth Office CBD vacancy by grade1 Market conditions 1 – Perth CBD office market vacancy rate has increased from 5.7% in January 2013 to 6.9%
Slide 31: Delivering growth
Delivering growth 31 31 Various initiatives in place to deliver growth in distributable income Positive rental reversions Expiry of the Enhanced China Master Lease at Square Central Alexandra with increased Technopark in connectivity August 2014 Redemption/ conversion of Grow portfolio in CPPUs cont
Slide 32: 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
Frasers Commercial Trust — Q1 FY2014 Earnings Presentation on 6ix