Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q1 FY2019 Earnings Presentation
36 slides from Frasers Centrepoint Trust's earnings presentation, Jan 21, 2019
Slide 1: Frasers Centrepoint Trust Financial Results Presentation 1Q FY2019
Frasers Centrepoint Trust Financial Results Presentation for the First Quarter FY2019 ended 31 December 2018 21 January 2019
Slide 2: Important Notice
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 c
Slide 3: Contents
Contents Contents Results highlights 4 Balance sheet 11 Operational performance 15 Outlook 22 Appendix 24 3
Slide 4: 1Q19 results highlights
Results - Highlights 1Q19 results highlights 1Q19 Financial performance DPU of 3.02 cents, 0.7% year-on-year (1Q18 DPU: 3.00 cents) Gross Revenue of $49.3 million, up 2.9% year-on-year Net Property Income of $35.4 million, up 2.5% year-on-year NAV and NTA per Unit of $2.08 as at 31 Dec 2018
Slide 5: 1Q19 DPU up 0.7% to 3.02 cents
Results - Highlights 1Q19 DPU up 0.7% to 3.02 cents Revenue and NPI growth driven by larger malls in the portfolio 1Q19 1Q18 Y-o-Y $’000 Oct 18 to Dec 18 Oct 17 to Dec 17 change Gross Revenue 49,281 47,910 ▲ 2.9% Property Expenses (13,894) (13,397) ▲ 3.7% Net Property Income 35,387 34,513 ▲ 2.5% I
Slide 6: FCT delivers higher quarterly DPU
Results - Highlights FCT delivers higher quarterly DPU Distribution per Unit (S cents) ▲ 0.7% year-on-year ▲ 5.5% Quarter-on-quarter 3.10 3.053 3.02 3.00 2.862 1Q18 2Q18 3Q18 4Q18 1Q19 6
Slide 7: 1Q19 revenue increased 2.9% year-on-year
Results – Performance by properties 1Q19 revenue increased 2.9% year-on-year Growth from mainly Northpoint City North Wing and Changi City Point from higher average gross rental rate, better turnover rent as well as improvement in occupancy rate compared with the same period last year Gross Revenu
Slide 8: 1Q19 property expenses increased 3.7% year-on-year
Results – Performance by properties 1Q19 property expenses increased 3.7% year-on-year Increase due mainly to higher marketing expenses and additional car park related expenses at Anchorpoint Property Expenses 1Q19 1Q18 $ million Lower expenses Higher due mainly to mainly due to one- absence of pr
Slide 9: 1Q19 NPI up 2.5% year-on-year
Results – Performance by properties 1Q19 NPI up 2.5% year-on-year Overall portfolio NPI margin maintained at about 72% (similar to same period last year) Net Property Income $ million 1Q19 1Q18 Due to higher ▲ 2.5% revenue growth (+12.7%) which 35.39 34.51 outpaced increase Mainly due to in expens
Slide 10: The larger malls account for 88.6% of portfolio NPI
Results – NPI contribution by properties The larger malls account for 88.6% of portfolio NPI Percentage of 1QFY19 Net Property Income (NPI) contribution by property Bedok Point Anchorpoint 1.8% 2.6% YewTee Point 7.0% Causeway Point 47.6% Changi City Point 12.7% Northpoint City North Wing 28.3% 10
Slide 11: Balance sheet
Balance sheet
Slide 12: Strong financial position with gearing level at 28.8%
Balance sheet Strong financial position with gearing level at 28.8% FCT’s gearing at 28.8% is among the lowest among its peers in the Singapore REITs As at 31 December 18 30 September 18 Gearing ratio1 28.8% 28.6% Interest cover for the Quarter2 5.92 times 5.61 times Total borrowings $818 million
Slide 13: NAV and NTA maintained at $2.08 per Unit
Balance sheet NAV and NTA maintained at $2.08 per Unit Movement in borrowings under current liabilities due to: increase of S$5m in bank borrowings; and reclassification of the S$70m bank borrowing (due Dec 2019) from non-current liabilities to current liabilities. 31 Dec 2018 30 Sep 2018 As at S$
Slide 14: Weighted average debt maturity: 1.8 years
Balance sheet Weighted average debt maturity @ 31 December 2018: 1.8 years The Manager has secured commitments from a lender relating to the refinancing of the $60m MTN (due April 2019); $60m of bank unsecured borrowing (due June 2019); and the prepayment of the $70m bank borrowing (due Dec 2019).
Slide 15: Operational performance
~~ ERASERS CENTREPOINT TRUST Operational performance
Slide 16: Portfolio occupancy improved to 96.4%
Operational performance Portfolio occupancy improved to 96.4% Improved occupancy at all malls over the previous quarter Mall Occupancy 31 Dec 17 31 Mar 18 30 Jun 18 30 Sep 18 31 Dec 18 Causeway Point 99.9% 99.3% 99.9% 98.4% 98.7% Northpoint City North Wing 86.8% 94.0% 92.5% 96.5%* 97.9%* (Includes
Slide 17: 1Q19 average rental reversion at +6.9%
Operational performance 1Q19 average rental reversion at +6.9% Change compared 1Q19 No. of Leased area As % Mall’s NLA to preceding (1 Oct – 31 Dec 2018) renewals renewed (sq ft) rental rates1 Causeway Point 25 82,591 19.8% 11.1% Northpoint City North Wing 10 9,221 4.0% -1.3% (Includes Yishun 10 Ret
Slide 18: Maintaining positive rental reversions through economic cycles
Operational performance Maintaining positive rental reversions through economic cycles FCT Portfolio Average Rental Reversions1 15.0% 14.0% 12.8% 12.1% 9.9% 8.6% 7.7% 7.2% 6.9% 6.5% 6.3% 5.1% 3.2% FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 1QFY19 1. Based on
Slide 19: Lease expiry profile
Operational performance Lease expiry profile Lease expiry profile as % of total gross rental income Weighted Average Lease Expiry 37.0% (WALE) 24.4% By NLA 2.02 years 18.0% (4Q18: 1.91 years) 12.0% By Gross Rent 1.79 years 8.0% (4Q18: 1.72 years) 0.2% 0.3% // FY2019 FY2020 FY2021 FY2022 FY2023 FY202
Slide 20: Lease expiries in FY2019 by property
Lease expiries in FY2019 by property As at 31 December 2018 Lease Area Lease Expiries in remaining Number of as % of leased as % of total Expiring 9 months of FY2019 Leases Expiring area of Mall gross rent of Mall (sq ft) Causeway Point 57 76,230 18.5% 22.1% Northpoint City North Wing and 25 17,936
Slide 21: Overall shopper traffic and tenants' sales
Overall shopper traffic and tenant’s sales Overall growth in shopper traffic (+3.5% excluding Northpoint City) Slight dip in overall tenants’ sales of 0.9% year-on-year Shopper Traffic Tenants’ Sales (0.9%) 35 Millions 30 +64.9% 25 20 +3.5% 15 10 5 0 Oct - Dec 2017 Oct - Dec 2018 Sep - Nov 2017
Slide 22: Outlook
~~ ERASERS CENTREPOINT TRUST Outlook
Slide 23: Outlook
Outlook Outlook Based on advance estimates, the Singapore economy grew 3.3% in year 2018. Despite the continuing challenges in the retail sector, suburban malls, which made up FCT’s portfolio, are expected to see relatively stable performance. 23
Slide 24: Appendix
~~ ERASERS CENTREPOINT TRUST Appendix
Slide 25: Distribution details
Distribution details Distribution period 1 October 2018 to 31 December 2018 Distribution per unit 3.02 cents Ex-date 28 January 2019 (Monday) Books closure date 29 January 2019 (Tuesday) at 5.00 pm Payment date 28 February 2019 (Thursday) 25
Slide 26: 1Q19 year-on-year and quarter-on-quarter comparison
Appendix: Year-on-year and quarter-on-quarter comparison 1Q19 year-on-year and quarter-on-quarter comparison Year-on-Year Quarter-on-Quarter Comparison Comparison 1Q19 1Q18 Change 4Q18 Change $’000 (unless otherwise indicated) Oct 18 to Dec 18 Oct 17 to Dec 17 Inc / (Dec) Jul 18 to Sep 18 Inc / (Dec
Slide 27: Debt Information
Debt Information Average cost of Borrowings (all-in) 2.7% Annualised based on rates fixed @ 31 Dec 2018 Moody's rating Baa1 S&P rating BBB+ Interest cover (EBIT/Σinterest) (times) 5.92 For the quarter 1 Oct - 31 Dec 2018 Gearing 28.8% as at 31 December 2018 % of Total Description Amount ($m) Expiry
Slide 28: Portfolio Lease expiry profile as at 31 December 2018
Portfolio Lease expiry profile as at 31 December 2018 as at 31 December 2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 Total Causeway Point No of leases 57 74 63 19 7 1 0 0 0 0 221 Expiries as % Total NLA 18.5% 31.6% 18.8% 11.6% 19.0% 0.4% 0.0% 0.0% 0.0% 0.0% 100.0% NLA (
Slide 29: Trade mix as at 31 December 2018
Trade mix as at 31 December 2018 Trade Classifications As % of total As % of total Gross (In descending order of % of rent) NLA Rental Income Food & Restaurants 32.2% 38.0% Fashion 12.8% 17.2% Services/Education 8.2% 8.5% Beauty, Hair, Cosmetics, Personal Care 5.8% 8.0% Household 9.2% 7.5% Supermark
Slide 30: Top 10 tenants by gross rental as at 31 Dec 2018
Top 10 tenants by gross rental as at 31 Dec 2018 As % of As % of total Gross Tenant total NLA Rental Income 1 Cold Storage Singapore (1983) Pte Ltd1 5.4% 4.3% 2 Copitiam Pte Ltd2 3.8% 3.6% 3 Metro (Private) Limited3 5.6% 3.5% 4 Courts (Singapore) Limited 3.3% 2.9% 5 NTUC Fairprice Co-operative4 3.3%
Slide 31: Historical portfolio information by quarter
Historical portfolio information by quarter Occupancy by Properties Note: Yellow cells means property is undergoing AEI Property (Occupancy rate as at end of each quarter) 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Causeway Point 99.7% 99.3% 99.1% 99.5% 99.9% 99.3% 99.9% 98.4% 98.7% Northpoint Cit
Slide 32: Portfolio of six suburban retail properties
Overview Portfolio of six suburban retail properties Well-located suburban retail properties that enjoy good connectivity to public transport, high footfall and high occupancy Anchorpoint YewTee Point Causeway Point Northpoint City Bedok Point Changi City Point North Wing1 Legend Existing MRT Line
Slide 33: Summary of FCT's portfolio of properties
Appendix: Portfolio Information Summary of FCT’s portfolio of properties FCT Portfolio Northpoint City Yishun 10 Changi City Causeway Point Bedok Point YewTee Point Anchorpoint North Wing Retail Podium Point 416,301 sq ft 219,286 sq ft 10,398 sq ft 205,210 sq ft 82,713 sq ft 73,669 sq ft 70,988 sq f
Slide 34: Appraised value of portfolio properties
Balance sheet Appraised value of portfolio properties 15bps - 25bps compression in valuation cap rates for some malls compared to FY2017 FY2018 FY2017 Valuation @ 30 Sep 2018 Valuation @ 30 Sep 2017 Property Valuation Valuation Valuation Valuation Cap rate (a) Valuer Cap rate (a) Valuer ($ million)
Slide 35: Frasers Property's retail assets in Singapore
Overview Frasers Property’s retail assets in Singapore Northpoint City North Wing Northpoint City South Wing (FPL owns 100%) Causeway Point YewTee Point Singapore The Centrepoint Waterway Point (FPL owns 33.3%) Bedok Point Eastpoint Anchorpoint Robertson Walk Changi City Point Valley Point (6) Owned
Slide 36: Experience Ask O) o -)
Experience Ask O) o -) matters. 8 A Nl
Frasers Centrepoint Trust — Q1 FY2019 Earnings Presentation on 6ix