Frasers Property Ltd. · SGX:TQ5
Frasers Property — Allco Commercial REIT — FY2007 Earnings Presentation
39 slides from Frasers Property's earnings presentation, Feb 1, 2008
Slide 1: 2007 Financial Results
2007 Financial Results 1 February 2008 partnership / determination / ingenuity Allco Commercial REIT
Slide 2: Disclaimer
Disclaimer This presentation is focused on comparing actual results versus forecasts for the Allco REIT properties. All references to Forecast in this presentation are defined as follows: The forecast for 4Q2007 is based on management’s forecast for 2H2007 shown in the Circular dated 26 June 2007, p
Slide 3: 2H2007 Distribution
2H2007 Distribution Record DPU: 3.74 cents per Unit for 2H2007, up 25.1% on 1H2007 6.73 cents per Unit for FY2007, up 13.3% on FY2007 forecast Distribution Period 1 July 2007 to 31 December 2007 Distribution of 3.74 cents per Unit comprising: a) taxable income distribution of 1.93 cents; Distributio
Slide 4: FY2007 in review
FY2007 in review “Year of growth” Strategic acquisitions and markets diversification – six new properties acquired through entry into three new sub-markets in FY2007 27.4% increase in Net Asset Value per Unit driven by strong asset revaluations Excellent leasing and rent review outcomes – capitalisi
Slide 5: Key Highlights
Key Highlights Actual Forecast Actual FY2007 FY2007 FY2006* Gross Revenue (S$000) 75,247 54,864 37.2% 34,891 115.7% Net Property Income (S$000) 61,422 46,377 32.4% 28,757 113.6% Net Income (S$000) 34,947 29,383 18.9% 19,116 82.8% Distributable income (S$000) 47,526 35,871 32.5% 22,687 109.5% DPU (ce
Slide 6: Total Gross Revenue
Total Gross Revenue Total Gross Revenue: 37.2% up on FY2007 forecast, 115.7% up on FY2006 Outperformed forecast and grew with asset acquisitions, higher rental income and full year contributions from existing assets Actuals Year-on-Year FY2007 Forecast to Actual S$'000 + 115.7% S$'000 + 37.2% $80,00
Slide 7: Net Property Income
Net Property Income Net Property Income: 32.4% up on FY2007 forecast, 113.6% up on FY2006 Q4 boosted by S$7.276 million, of which S$6.626 million of NPI came from new assets in Japan and Singapore – representing 91.1% of the out-performance over Q4 forecast Central Park’s increased NPI accounted for
Slide 8: Net Property Income by asset
Net Property Income by asset NPI exceeds FY2007 forecast by 32.4%, strongly driven by existing assets NPI up on forecast by S$15.045 million or 32.4%, with more than half the increase attributable to out-performance of assets held before new acquisitions made in 2H2007 Assets in the Circular forecas
Slide 9: Distributable Income
Distributable Income Distributable Income: 109.5% up on FY2006 Resulting from strong gross revenue growth of 115.7%, partially diluted by higher property operating, trust and finance expenses incurred through new acquisitions and full year contribution of existing assets Actuals Year-on-Year FY2007
Slide 10: Distribution statement
Distribution statement DPU: strong growth year-on-year, out-performance of FY2007 forecast 2007 Actual 2007 Forecast 2006 Actual* (S$000) (S$000) (S$000) Gross Revenue 75,247 54,864 34,891 Less property operating expenses (13,825) (8,487) (6,134) Net property Income 61,422 46,377 28,757 Interest inc
Slide 11: Distribution per Unit
Distribution per Unit Record DPU of 3.74 cents per Unit for 2H2007, up 22.6% on 2H2006 Total distribution for FY2007 of S$47.526 million or 6.73 cents per Unit Total FY2007 DPU was up 11.4% compared to the annualised FY2006 DPU of 6.04 cents per Unit 4.58 6.73 Cents per Unit 1.53 3.05 2.99 3.74 4.00
Slide 12: Distribution per Unit
Distribution per Unit DPU: total FY2007 DPU beats forecast by 0.78 cents per Unit (+ 13.1%) Q42007 produced greatest quarterly DPU performance for Allco REIT since IPO on the back of net contributions from new assets and better than forecast performance from existing assets FY2007 DPU exceeds FY2006
Slide 13: Balance Sheet
Balance Sheet Unitholders funds up S$472.3m y-o-y, including net equity raised of S$199.6m Change in net assets attributable to Unitholders from operations was S$291.1 million, of which 93.4% was from increases in fair values of property investments As at 31 December As at 31 December 2007 2006 S$’0
Slide 14: Net Asset Value per Unit
Net Asset Value per Unit Net Asset Value per Unit: 27.7% up on FY2006 NAV per Unit up by 27.4% during FY2007, adding S$0.32 per Unit, following strong property revaluations and Rights Issue The increase in NAV per Unit since IPO is 60.2%, adding S$0.56 per Unit to NAV S$0.93 S$0.95 S$1.17 S$1.38 S$1
Slide 15: Debt Profile
Debt Profile Sources of Funding Sources of Debt S$ Bank Debt 69.8% Gross JPY Fixed Borrowings Rate Term 43.6% Specified Bonds Unitholders 16.0% Funds 56.4% JPY Bank Debt 14.2% S$550.0 million maturing 31 July 2008 S$70.0 million maturing 22 November 2008 S$268.4 million (JPY denominated debt) maturi
Slide 16: Capital Management
Capital Management Debt Conservative capital management resulting in 43.6% gearing at 31 December 2007, within stated target leverage range of between 40% - 45% Weighted average debt term 1.8 years Interest cover 4.7 times for FY2007 Interest Rate Hedging Japan debt 100.0% fixed at weighted average
Slide 17: Track record of acquisition-led growth
Track record of acquisition-led growth 185.3% increase in portfolio value since Allco REIT’s IPO 1,951 (S$million) Base portfolio Revaluation uplift New acquisitions 612 1,216 121 881 141 182 663 684 73 140 1,219 892 684 663 668 IPO portfolio 30 June 2006 31 December 2006 30 June 2007 31 December 20
Slide 18: Portfolio Overview
Portfolio Overview Six acquisitions totaling S$749.6 million completed in FY2007* A 10 UIR A A 10 UIR 10 UIR C C C 0% E Q 0% E 0% E Q Q D D D Japan Tokyo Osaka KeyPoint, Singapore Cosmo Plaza, Osaka Galleria Otemae, Osaka A A A 10 UIR 10 UIR 50 UIR Singapore C C C 0% E Q 0% E Q Q % E D D D Australia
Slide 19: Portfolio Overview
Portfolio Overview Strong revaluations during FY2007: like-for-like property assets up S$302.8m or 36.8%1 Date of Most Local Converted at As at Increase in Recent Currency 31 Dec 20072 31 Dec 20063 Value Independent Value Assets Valuation (millions) (S$’million) (S$’million) (S$’million) China Squar
Slide 20: Portfolio Overview
Portfolio Overview Increased presence in Asia through entry into Japan and Singapore acquisitions FY20061 FY20072 Total: S$880.1 million Total: S$1,951.2 million Japan 12.2% Australia 41.7% Australia Singapore Singapore 55.9% 32.0% 58.3% 1 Based on the most recent valuation prior to and converted to
Slide 21: Portfolio Overview
Portfolio Overview Greater asset diversification – reducing reliance upon any one property FY20061 FY20072 Total: S$880.1 million Total: S$1,951.2 million AWPF Ebara Techno- 6.4% Azabu Aco Serve Galleria Otemae 1.3% 2.0% 4.5% Cosmo Plaza China Square 4.3% Central Centrelink 29.1% Headquarters 7.1% A
Slide 22: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile Weighted Average Lease Expiry (WALE) is 4.95 years Average Lease Expiry by Area 31.0% 23.3% 21.0% 15.3% 3.4% 2.8% 2008 2009 2010 2011 2012 2013 + Capitalising on the buoyant property markets – 46.3% of leases expire before 2010 Allco Commercial REIT 1 February 2008 22
Slide 23: Risk Management
Risk Management Management Tools Management Fundamentals Foreign exchange hedges on income Adherence to investment strategy Fixed interest rates for majority of debt Experienced partners Master Lease / Income Support High quality, strategic assets arrangements Strong, growing and diversified markets
Slide 24: Execution Success
Execution Success Allco REIT’s results ahead of forecast Record results, increase in DPU, NAV & Unitholders’ funds Central Park, Perth - Reduced lease expiry concentration risk - Driven strong rental growth External Growth through Acquisitions in the Pan-Asian region Undertaking - Acquisition of 55
Slide 25: Growth Strategy
Growth Strategy Steady growth backed by strong fundamentals with a measured approach to new markets High quality commercial and retail properties Strategy Opportunistic value focus Strategic, long term quality acquisitions Leveraging Allco Finance Group’s agency and partner relationships Acquisition
Slide 26: Strategic Focus for FY2008
Strategic Focus for FY2008 1. Execution on asset plans to drive asset values and organic growth 2. Strategic portfolio management with a view to redeploying capital to higher growth assets Allco Commercial REIT 1 February 2008 26
Slide 27: Appendix A: Portfolio Detail
Appendix A Portfolio Detail partnership / determination / ingenuity Allco Commercial REIT
Slide 28: Portfolio Management
Portfolio Management Continued growth and active management – enhancing portfolio and providing attractive diversification June 2006 December 2006 June 2007 December 2007 Property Diversification - No. of properties 2 3 4 9 Tenant Diversification -No. of leases * 135 135 157 411 Geographic Diversifi
Slide 29: China Square Central, Singapore
China Square Central, Singapore 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 met
Slide 30: 55 Market Street, Singapore
55 Market Street, Singapore 55 Market Street is a high quality commercial property located in the heart of the financial district at Raffles Place. It was acquired on 22 November 2006 with vacant possession and had committed occupancy of 100.0% in May 2007. The property comprises 15 office levels an
Slide 31: KeyPoint, Singapore
KeyPoint, Singapore 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 and a 22-storey office tower. KeyPoint also has a four-storey car park block containing 227 car bays. It is w
Slide 32: Central Park, Perth
Central Park, Perth Central Park is a “premium” grade office tower and the tallest building in Perth. Located on St George’s 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 and
Slide 33: Centrelink Headquarters, Canberra
Centrelink Headquarters, Canberra Centrelink Headquarters 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 Canberra, Australia’s capital city and the
Slide 34: Cosmo Plaza, Osaka
Cosmo Plaza, Osaka 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 is l
Slide 35: Galleria Otemae Building, Osaka
Galleria Otemae Building, Osaka 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 walk
Slide 36: Azabu Aco Building, Tokyo
Azabu Aco Building, Tokyo 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 of
Slide 37: Ebara Techno-Serve, Tokyo
Ebara Techno-Serve, Tokyo 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 airport for the greater Tokyo a
Slide 38: Allco Wholesale Property Fund (AWPF)
Allco Wholesale Property Fund (AWPF) Diversified Australian property portfolio Exposure to property market growth in Sydney No ‘fees on fees’ Current partial withdrawal offer being processed for reduction in holding by 8.2m units Key Investment Statistics Current unit holding 48,000,000 Initial inve
Slide 39: Contact Details
Contact Details Nicholas McGrath SINGAPORE OFFICE Chief Executive Officer and Managing Director Allco (Singapore) Limited +65 6305 7807 Level 16 nicholas.mcgrath@allco.com.sg 55 Market Street SINGAPORE 048941 Phone: +65 6438 1191 Liew Sheau Hui Fax: +65 6438 1161 Chief Financial Officer +65 6305 783