Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Frasers Commercial Trust — FY2008 Earnings Presentation
36 slides from Singapore Exchange's earnings presentation, Jan 22, 2009
Slide 1: Frasers Commercial Trust 4Q2008 and FY2008 Financial Results
Frasers Commercial Trust 4Q2008 and FY2008 Financial Results 22 January 2008
Slide 2: Important notice
Important notice This presentation is focused on comparing actual results versus forecast for Frasers Commercial Trust’s properties. All references to forecast in this presentation are defined as follows: The 4Q2008 forecast is based on management’s FY2008 forecast shown in the Circular dated 26 Jun
Slide 3: Agenda
Agenda 3 4Q2008 and FY2008 Results Quarter in review Distribution 2H2008 Financial highlights Portfolio review Valuations Tenant diversification Lease expiry profile Rent reviews Asset updates Capital management Snapshot & debt maturity profile Interest risk profile Portf
Slide 4: 4Q2008 and FY2008 Results
4Q2008 and FY2008 Results 2. J IRASERS TRUST
Slide 5: Quarter in review
4Q2008 and FY2008 Results – Quarter in review 5 4QY2008: rationalisation and restructuring of portfolio, active asset management Asset valuations: continue to rationalise and ‘clean house’, hence further write-downs on the KeyPoint, AWPF and Cosmo Plaza assets Portfolio review: possible dive
Slide 6: Distribution 2H2008
4Q2008 and FY2008 Results – Distribution 2H2008 6 DPU: 2.36 cents per Unit for 2H2008, contributing to 6.35 cents per Unit for FY2008 Distribution Period 1 July 2008 to 31 December 2008 Distribution Rate Distribution of 2.36 cents per Unit comprising: a) taxable income distribution of 1.33 cents;
Slide 7: Financial highlights 4Q2008
4Q2008 and FY2008 Results – Financial highlights 7 4Q2008: weaker distributable income stemming from increased borrowing expenses under previous debt extension terms and higher property expenses 1 October to 31 December 4Q2008 Y-o-Y change Highlights (S$’000) (%) Lower contributions from Central
Slide 8: Financial highlights FY2008
4Q2008 and FY2008 Results – Financial highlights 8 FY2008: higher property income diluted by higher debt costs 1 January to 31 December FY2008 Y-o-Y change Highlights (S$’000) (%) Gross Revenue 106,954 Full contributions in FY2008 from post-IPO acquisitions 42.1% Property operating expenses in
Slide 9: Portfolio review
Portfolio review mm GH (ounenast TRUST
Slide 10: Portfolio review – Valuations
Portfolio review – Valuations 10 Fair values: further write-downs to reflect current market values Variance from Variance from Translation as at 30 September 2008 due 30 September 2008 Date of last Local currency 31 December 2008 to asset write-down due to FX translation Assets valuation value (mi
Slide 11: Lease expiry profile
Portfolio review – Lease expiry profile 11 11 Lease expiry profile: well spread out expiry profile with a long weighted average lease term, providing a secure long-term income stream Portfolio lease expiries Key portfolio statistics * as a % of gross rental income ** WALE by NLA 4.35 years WALE by
Slide 12: Upcoming lease expiries
Portfolio review – Lease expiry profile 12 Upcoming lease expiries: most expiries at low passing rents and below market rents FY2009 key lease expiries Gross rental income Net lettable area (NLA) Average passing % of property’s % of total No. of rental of expiring current gross rental portfolio’s
Slide 13: Rent reviews
Portfolio review – Rent reviews 13 13 Fixed rent step-ups: 29% of the Trust’s current gross rental has in-built average organic growth of 4.2% in FY2009 FY2009 Fixed % Mid-Lease Term Rent reviews Average fixed % % of property’s % of total No. of review on those current gross rental portfolio’s cur
Slide 14: Asset updates: KeyPoint, Singapore
Portfolio review – asset updates 14 KeyPoint, Singapore Asset enhancement initiatives (AEI): following detailed review, a decision has been made to defer full retail refurbishment plans Targeted capital expenditure: instead of the full retail refurbishment, specific capex is being planned to a
Slide 15: Asset updates: China Square Central, Singapore
Portfolio review – asset updates 15 China Square Central, Singapore Asset enhancement initiatives (AEI): deferring full retail refurbishment plans initiated by previous management following detailed review Master Lease: remains in place until 2012, securing income for FrasersComm regardless of
Slide 16: Asset updates: Cosmo Plaza, Osaka
Portfolio review – asset updates 16 Cosmo Plaza, Osaka Investment strategy: Management is reviewing the asset and is exploring potential divestment of Cosmo Plaza Rental income: Master Lessee, Restoration Asset KK, is in financial difficulty and no further income is expected in the coming year
Slide 17: Asset updates: Allco Wholesale Property Fund
Portfolio review – asset updates 17 Allco Wholesale Property Fund (AWPF) Investment strategy: Management is exploring potential divestment of the AWPF units, previously expected by way of wind up of AWPF through sale of assets and return of capital Asset value: as at 31 December 2008, AWPF uni
Slide 18: Capital management
Capital management 2. J IRASERS TRUST
Slide 19: Snapshot & debt maturity profile
Capital management – Snapshot & debt maturity profile 19 Continued focus: exploring various options available to strengthen balance sheet and refinance debt Snapshot Debt maturity profile As at 31 December As at 31 December S$'million 2008 2007 JPY Bank Loan S$ Loan Note Facility S$’000 S$’000 JPY
Slide 20: Interest risk profile
Capital management – Interest risk profile 20 Key management action: improve interest profile through refinancing and strengthening of balance sheet Debt statistics Fixed interest rate profile As at 31 December 2008 64% S$’000 62% Interest coverage ratio * 2.2 times Weighted average debt term 1.7
Slide 21: Portfolio detail
Portfolio detail 2. J IRASERS TRUST
Slide 22: Asset diversification
Portfolio review – Asset diversification 22 Geographic and asset diversification: Pan-Asian investment strategy limits exposure to any one concentrated property market Asset values 1 Net property income TOTAL: S$1,685.4 million TOTAL: S$18.559 million 4Q2008 Singapore: S$1,033.0 million (61%) Sing
Slide 23: 4Q2008 gross property revenue
Portfolio detail - 4Q2008 results 23 4Q2008 Gross property revenue: Lower contributions from Central Park and Caroline Chisholm Centre due to weakening A$ and termination of income support for Central Park Gross property revenue (S$m) TOTAL: S$24.888 million 4Q2008 Singapore: S$11.305 (45%) 8.93 A
Slide 24: 4Q2008 net property income
Portfolio detail - 4Q2008 results 24 4Q2008 Net property income: lower NPI due to softening A$, loss of income support and increased property expenses Net property income (S$m) TOTAL: S$18.559 million 4Q2008 6.66 Singapore: S$9.190 million (50%) Australia S$6.311 million (34%) Japan: S$3.058 milli
Slide 25: Tenant diversification
Portfolio review – Tenant diversification 25 Tenant diversity: broad tenant base underpinned by government and strong global corporates Portfolio tenant mix – gross rental income * Well-recognised tenants Banking, Insurance & 19.50% Sector Tenants Financial Services 16.94% Government and 12.47% Ba
Slide 26: China Square Central, Singapore
China Square Central, Singapore 26 China Square Central is an office and retail development located in the financial district of Singapore. The property is a grade “A” 15-storey office tower and a retail complex. It is well-served by both Raffles Place and Chinatown MRT stations, located within 500
Slide 27: 55 Market Street, Singapore
55 Market Street, Singapore 27 55 Market Street is a high quality commercial property located in the heart of the financial district at Raffles Place. The property comprises 15 office levels and two floors of retail (including basement). It was acquired with vacant possession and had committed occup
Slide 28: KeyPoint, Singapore
KeyPoint, Singapore 28 KeyPoint is an integrated 25-storey commercial development located at the junction of Beach Road and Jalan Sultan, Singapore. The property comprises a three-storey podium, a 22-storey office tower and a four-storey car park block containing 227 car bays. It is well-served by b
Slide 29: Central Park, Perth
Central Park, Perth 29 Central Park is a “premium” grade office tower and the tallest building in Perth. Located on St Georges Terrace, Central Park is a pre-eminent business address, in the heart of the CBD and shopping precinct. The property comprises a 47-level office tower with on-site tenant pa
Slide 30: Caroline Chisholm Centre, Canberra
Caroline Chisholm Centre (Centrelink Headquarters), Canberra 30 The Caroline Chisholm Centre is a new contemporary-designed, five storey “Grade A” office complex. The property is strategically located within the core of the Tuggeranong Town Centre, one of four town centres within the city of Canberr
Slide 31: Cosmo Plaza, Osaka
Cosmo Plaza, Osaka 31 Cosmo Plaza is a 14-storey building, comprising 11 levels of high quality commercial office space, one level of retail space, two levels of auditorium and conferencing facilities and 234 car spaces. The property is located in Nanko Cosmo Square, within Suminoe Ward, Osaka and i
Slide 32: Azabu Aco Building, Tokyo
Azabu Aco Building, Tokyo 32 Azabu Aco comprises three levels of commercial office space, basement office/studio space and two car spaces and is located in the Minato-ku ward of Tokyo, a central commercial and residential district in Tokyo. The property is situated approximately 250 metres northwest
Slide 33: Ebara Techno-Serve Headquarters Building, Tokyo
Ebara Techno-Serve Headquarters Building, Tokyo 33 33 Ebara Techno-Serve comprises five levels of high quality commercial office space and is located within Ota Ward, a southern ward of Tokyo. It is located approximately two kilometres from Tokyo International Airport (Haneda), the main domestic air
Slide 34: Galleria Otemae Building, Osaka
Galleria Otemae Building, Osaka 34 Galleria Otemae is a 12-storey building, comprising commercial office space, ground floor and basement retail space and 48 car spaces. It is prominently located in the Chuo Ward, an administration and financial district of Osaka. Galleria Otemae is within a short w
Slide 35: Allco Wholesale Property Fund (AWPF), Sydney
Allco Wholesale Property Fund (AWPF), Sydney 35 35 Diversified Australian property portfolio Providing exposure to Sydney CBA office and retail and suburban Sydney retail assets No ‘fees on fees’ Key Investment Statistics Initial unit holding 48,000,000 Initial investment A$48.0m (S$59.3m) Ini
Slide 36: Thank you
Thank you Investor Relations Frasers Centrepoint Asset Management (Commercial) Limited Level 16 | 55 Market Street | Singapore 048941 Tel: +65 6305 7800 | Fax: +65 6438 4002 | Email: fcot@fraserscentrepoint.com www. fraserscommercialtrust.com
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