Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Centrepoint Trust — Investor Presentation (November 2020)
39 slides from Frasers Property's investor presentation, November 2020
Slide 1: Frasers Centrepoint Trust Investor Presentation
Frasers Centrepoint Trust Investor Presentation November 2020 WATERWAY POINT
Slide 2: Forward-looking statements disclaimer
• 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 results, performanc
Slide 3: FCT overview and key figures of retail portfolio
• Listed on the Main Board of the Singapore Exchange Securities Trading Limited since 5 July 2006 • Market capitalisation of approximately S$3.6 billion as at 30 Oct 2020 • Managed by Frasers Centrepoint Asset Management Ltd. Causeway Point Northpoint City North Wing Waterway Point a wholly-owned su
Slide 4: Share of suburban retail mall space in Singapore
Share of suburban retail mall space in Singapore 10.6% 10.2% 8.8% 7.0% 6.1% 5.5% 4.7% 3.3% 2.4% CapitaLand Frasers NTUC Lendlease HDB Mapletree Changi Far East UOL Group Mall Trust1 Centrepoint Entrerprise Commercial Airport Group Organisation Limited Trust Trust Source: Cistri , August 2020. Data a
Slide 5: Properties are near homes and transport nodes
◆ Properties are near homes and within minutes to transport nodes All retail properties are conveniently located near homes and within minutes to transport amenities Catchment population of 3 million1 underpins stable and recurring shopper footfall High proportion of necessity spending, F&B and Esse
Slide 6: Suburban retail space per capita is lower than national average
• The suburban retail sector in Singapore has a lower retail space per capita compared with the national average of 6.4 sq ft per capita, which is comparatively lower than regional cities like Hong Kong and Kuala Lumpur Shopping Centre Floor Space per Capita (sq ft NLA) National Average: 6.4 USA (20
Slide 7: Proportion of NLA allocated to Essential Services
Proportion of Nett Lettable Area allocated To FCT Retail Portfolio3 Essential Services1 (%) Essential Services1 by Gross Rental Income • Suburban retail malls generally have higher proportion of NLA allocated to Essential Services than central malls Non- essential FCT Retail Portfolio3: Services 45.
Slide 8: No single property represents more than 22% of portfolio value
No single property represents more than 22% of the portfolio’s aggregate value Asset Value by Property 1,2 YewTee Point Anchorpoint 3.1% 1.8% Changi City Point Causeway 5.6% Point 21.5% White Sands 7.0% Hougang Mall 7.1% Northpoint City North Wing 13.3% Waterway Point3 8.6% Century Tampines 1 Square
Slide 9: Debt maturity profile of FCT post ARF acquisition
Highlights Debt maturity profile of FCT post the Acquisition of ARF1 Gearing ratio2 (%) 39.3 Amount in S$ million Average cost of debt (%) 2.33 $608 m Weighted average debt maturity 4.34 (years) 119 ✓ Well-spaced out debt maturity $391 m $382 m $350 m $370 m ✓ 70 Minimal near-term refinancing needs
Slide 10: Highlights from Financial Results for 2H and FY2020
Highlights from Financial Results for the Second Half and Financial Year 2020 ended 30 September 2020 Released on 3 November 2020 Waterway Point, Singapore
Slide 11: Key events in FY2020
Key events in FY2020 Steadfast in our goals amidst tough times 7 April: Start of Circuit 1 June: The Circuit 19 June: Start of 30 June: FCT 3 Sep: FCT announced the 28 Sep: Unitholders’ approval Breaker:- Only essential trades Breaker lifts and Phase 2 : Reopening announced the acquisition of the re
Slide 12: FY2020 Results overview
FY2020 Results overview Unprecedented challenges due to the COVID-19 pandemic FY2020 (year-on-year change) Gross Revenue S$164.38 million ▼ 16.3% Net property income (NPI) S$110.89 million ▼ 20.4% Distribution per Unit (DPU) 9.042 S cents ▼ 25.1% Gearing level 35.9% as at 30 September 2020 ▲ 3.0%-po
Slide 13: 2H20 and FY2020 results highlights
2H20 and FY2020 results highlights • Excluding the impact from the rental relief1 which amounted to S$27.35 million1,2, FY2020 revenue and net property income (“NPI”) would have decreased 2.4% and 0.7% year-on-year, respectively S$ million 2H20 2H19 Change FY2020 FY2019 Change Gross revenue 64.46 97
Slide 14: Gross revenue by properties in FY2020
Gross revenue by properties in FY2020 Impact to performance due mainly to rental rebate provided to tenants in 2H20 Gross Revenue (S$ million) (year-on-year change) FY2020 FY2019 Based on FCT’s 40.0% share of results in joint venture Sapphire Star Trust 196.39 which holds Waterway ▼16.3% Point. FCT
Slide 15: Property expenses by properties in FY2020
Property expenses by properties in FY2020 Property expenses (S$ million) (year-on-year change) FY2020 FY2019 Based on FCT’s 40.0% share of results in joint venture Sapphire Star Trust ▼6.3% 57.10 which holds Waterway 53.49 Point. FCT acquired the stake in SST in 12 July 2019, hence there is no year-
Slide 16: Net property income by properties in FY2020
Net property income by properties in FY2020 Impact to performance due mainly to rental rebate provided to tenants in 2H20 Net property income (S$ million) (year-on-year change) FY2020 FY2019 Based on FCT’s 40.0% share of results in joint venture Sapphire Star Trust which holds Waterway Point. FCT ac
Slide 17: Financial position
Financial position Causeway Point, Singapore
Slide 18: Gearing, borrowings and credit ratings
30 September 2020 30 September 2019 Gearing ratio1 35.9% 32.9% Interest cover ratio for the financial year2 4.95 times 5.34 times Total borrowings S$1,255 million S$1,042 million % of borrowing on fixed rates or hedged via interest rate swaps 54.3% 50% Average cost of borrowings (all-in) 2.4% 2.6% S
Slide 19: Balance sheet as at 30 Sep 2020
30 Sep 2020 30 Sep 2019 As at S$’000 S$’000 Investment Properties 2,749,500 2,846,000 Notes: a. The number of units used for computation of NAV and NTA per Investment in associates 696,406 457,470 unit as at 30 September 2020 is 1,120,330,196. This comprises: Loans to and investment in joint venture
Slide 20: Debt maturity profile as at 30 September 2020
Debt maturity profile as at 30 September 2020 Type of borrowings Aggregate amount Average debt maturity: 2.1 years ■ Unsecured bank borrowings S$635.0 million (50.6%) ■ Medium Term Notes S$350.0 million (27.9%) ■ Secured bank borrowings S$270.0 million (21.5%) Total Borrowings S$1,255.0 million (100
Slide 21: Operational performance
Operational performance Waterway Point, Singapore
Slide 22: Portfolio occupancy maintained at 94.9%
• Portfolio occupancy maintained at 94.9%, slightly higher compared to the previous quarter. Mall Occupancy1 30 Sep 19 31 Dec 19 31 Mar 2020 30 Jun 2020 30 Sep 2020 Causeway Point 97.0% 97.8% 97.9% 96.7% 96.6% Northpoint City North Wing2 99.0% 99.2% 97.0% 96.2% 95.0% Waterway Point 98.0% 97.3% 96.3%
Slide 23: Tenant sales and shopper traffic recovery
• Total tenant sales has recovered close to pre-COVID-19 level although there are variances across trades and tenants • All retailers with the exception of a few such as family karaoke and travel agencies, have resumed businesses • Mall shopper traffic has stabilised at 60% to 70% of pre-COVID-19 le
Slide 24: Lease expiry profile as % of total GRI
Lease expiry profile as % of Total GRI ■ Expiries as at 30 September 2020 32.6% 33.6% ◆ WALE by NLA: 1.55 years 27.0% (3Q20: 1.69 years) ◆ WALE by GRI: 1.51 years (3Q20: 1.61 years) 6.4% 0.2% 0.2% Lease expiry1 as at 30 FY2026 FY2021 FY2022 FY2023 FY2024 FY2025 September 2020 and Beyond Number of le
Slide 25: Lease expiries in FY2021
Lease Expiries1 in FY2021 Number of leases Leased area expiring as % of leased area of as % of total GRI (As at 30 September 2020) expiring (sq ft) property of property Causeway Point 78 98,007 24.2% 30.0% Northpoint City North Wing2 72 73,394 33.6% 34.5% Waterway Point 53 110,275 30.9% 29.5% Changi
Slide 26: Lease renewals and rental reversion
Leased area Net Lettable Area Change compared Number of As % of (1 Oct 2019 – 30 Sep 2020) renewed (NLA) with preceding renewals property’s NLA (square feet) (square feet) rental rates1 Causeway Point 59 112,316 419,840 26.8% 3.8% Northpoint City North Wing2 57 59,264 229,709 25.8% 3.6% Waterway Poi
Slide 27: Summary
Summary YewTee Point, Singapore
Slide 28: Underpinning the relevance and resilience of suburban retail malls
Underpinning the relevance and resilience of suburban retail malls Focus on Essential Services, F&B and necessity shopping which are relevant to shoppers The proximity to homes makes FCT’s malls ideal fulfilment hubs for “last-mile” delivery and / or “Click-and-collect”, as “work from home” becomes
Slide 29: Acquisition, asset enhancement and organic growth
Northpoint 2 Bedok Changi City Yishun 10 Investment Waterway Point Acquisition Future YewTee Point Point Point Retail Podium in ARF (40%-stake) of ARF Opportunities 2010 2011 2014 2016 2019 2019 2020 Acquisition • Northpoint City South Growth 24.82% Full ownership Wing in ARF in ARF • Opportunities
Slide 30: Northpoint City
a NORTHPOINT CITY 30
Slide 31: Glossary of abbreviations
◆ 2H19: Second Half 2019 ended 30 September 2019 ◆ NAV: Net asset value ◆ 2H20: Second Half 2020 ended 30 September 2020 ◆ NLA: Net Lettable Area ◆ AEI: Asset Enhancement Initiative ◆ NPI: Net Property Income ◆ ARF: AsiaRetail Fund Limited ◆ NTA: Net Tangible Value ◆ ARF Acquisition: The acquisition
Slide 32: Average cost of borrowings and debt details
Average cost of Borrowings (all-in) 2.4% Annualised based on rates fixed @ 30 September 2020 Moody's rating Baa2 Outlook: Stable S&P rating BBB Outlook: Stable Interest cover (EBIT/Σ interest) 4.95 times FY2020: 1 October 2019 to 30 September 2020 Gearing 35.9%1 as at 30 September 2020 as % of total
Slide 33: Appraised values and capitalisation rates
15 September 2020 30 September 2019 Appraised Value Appraised Value Capitalisation Appraised Value Appraised Value Capitalisation (S$ million) (S$ psf) Rate (S$ million) (S$ psf) Rate Causeway Point 1,305.0 3,108 4.75% 1,298.0 3,090 4.75% Northpoint City North Wing1 771.5 3,517 4.75% 771.5 3,517 4.7
Slide 34: Top 10 tenants
Tenants As % of Total NLA As % of Total GRI (FCT Portfolio as at 30 September 2020, excluding properties in ARF portfolio) 1 NTUC1 4.6% 3.6% 2 Dairy Farm Group2 3.5% 3.2% 3 Copitiam Group3 2.8% 2.7% 4 Metro (Private) Limited4 4.2% 2.6% 5 Breadtalk Group5 2.0% 2.6% 6 Courts (Singapore) Pte Limited 2.
Slide 35: Trade classifications
Trade Classifications As % of total NLA As % of total GRI (FCT Portfolio as at 30 September 2020, excluding properties in ARF portfolio) F&B 30.6% 38.2% Fashion 12.7% 13.0% Beauty & Health 8.3% 12.0% Services 4.5% 8.4% Household 9.9% 7.8% Supermarket 7.3% 5.3% Leisure/Entertainment 6.4% 3.0% Books,
Slide 36: Lease expiry by property
Causeway Point FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 + Grand Total Anchorpoint FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 + Grand Total No. of leases 78 67 65 2 1 0 213 No. of leases 24 16 11 1 0 0 52 NLA (sq ft) expiring 98,007 170,593 130,417 5,135 1,364 0 405,516 NLA (sq ft) expiri
Slide 37: Property details
Northpoint City Property name Causeway Point Waterway Point2 Changi City Point YewTee Point Anchorpoint (North Wing)1 Property type Retail Retail Retail Retail Retail Retail 99-year leasehold 99-year leasehold 99-year leasehold 60-year leasehold 99-year leasehold Title Freehold (74 years remaining)
Slide 38: Frasers Experience (FRx) omnichannel platform
The FRx aims to increase productivity and improve efficiency for retailers and F&B operators, and provide shoppers with seamless omnichannel experience Shopping online with Pre-order F&B and pay on Frasers e-Store Frasers Makan Master Consolidation of orders from multiple Multi-brand delivery orders
Slide 39: Experience matters.
Experience matters.
Frasers Centrepoint Trust — Investor Presentation (November 2020) on 6ix