Frasers Commercial Trust 4Q2008 and FY2008 Financial Results 22 - PowerPoint PPT Presentation

Frasers Commercial Trust 4Q2008 and FY2008 Financial Results 22 January 2008

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 June 2007, pro-rated for the period from 1 October to 31 December 2008. The FY2008 forecast is based on management’s FY2008 forecast shown in the Circular dated 26 June 2007, pro-rated for the period from 1 January to 31 December 2008. 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, performance or achievements of FrasersComm or the Manager, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements and financial information. Such forward-looking statements and financial information are based on numerous assumption s regarding the Manager’s present and future business strategies and the environment in which FrasersComm or the Manager will operate in the future. Because these statements and financial information reflect the Manager’s current views concerning future events, these statements and financial information necessarily involve risks, uncertainties and assumptions. Actual future performance could differ materially from these forward-looking statements and financial information. The Manager expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement or financial information contained in this Presentation to reflect any change in the Manager’s expectations with regard thereto or any change in even ts, conditions or circumstances on which any such statement or information is based, subject to compliance with all applicable laws and regulations and/or the rules of the SGX-ST and/or any other regulatory or supervisory body or agency. The value of Frasers Commercial Trust units (“Units”) and the income derived from them, if any, may fall or rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors should note that they have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on the Singapore Exchange Securities Trading Limited (“SGX - ST”) . Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. This document is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Units. The past performance of REIT and the Manager is not necessarily indicative of the future performance of Frasers Commercial Trust and the Manager. This Presentation contains certain information with respect to the trade sectors of the Trust’s tenants. The Manager has det erm ined the trade sectors in which the Trust’s tenants are primarily involved based on the Manager’s general understanding of the business activities conducted by such tena nts . The Manager’s knowledge of the business activities of the Trust’s tenants is necessarily limited and such tenants may conduct business activities that are i n addition to, or different from, those shown herein. This Presentation includes market and industry data and forecast that have been obtained from internal survey, reports and studies, where appropriate, as well as market research, publicly available information and industry publications. Industry publications, surveys and forecasts generally state that the information they contain has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of such included information. While the Manager has taken reasonable steps to ensure that the information is extracted accurately and in its proper context, the Manager has not independently verified any of the data from third party sources or ascertained the underlying economic assumptions relied upon therein.

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  Portfolio detail  Gross revenue  Net property income  Asset diversification  Asset profiles

4Q2008 and FY2008 Results

 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 divestments of Cosmo Plaza and AWPF units – management is exploring the sale of these assets as the portfolio review has determined they do not meet the long term investment strategy of FrasersComm  continued active asset management of portfolio – including strengthening the retail component of KeyPoint and China Square Central with FCL retail leasing expertise  cost control measures  capital management including the refinance of the Trust’s debt facilities maturing in FY2009 and restoration of balance sheet strength

 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; b) tax-exempt income distribution of 0.28 cents; and c) capital distribution of 0.75 cents Last day of trading on “cum” basis Thursday, 29 January 2009 Ex-date Friday, 30 January 2009 Distribution Books Closure Date Tuesday, 3 February 2009 Distribution payment date Friday, 27 February 2009

 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$’000) (%)  Lower contributions from Central Park and Caroline Chisholm Centre due to 6.6% Gross Revenue 24,888 weakening A$ and termination of income support for Central Park  No contribution from AWPF  Less Property Expenses 6,329 Higher property taxes from the Japanese assets and maintenance expenses 5.1%  Lower NPI due to softening A$, loss of income support and increased property 10.0% Net Property Income 18,559 expenses  Softer NPI q-n-q further diluted by increased debt margins under the May 2008 40.5% Distributable income 9,269 debt extension 43.0%  DPU (cents per Unit) 1.26 Debt cost impact on DPU

 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$’000) (%)  Gross Revenue 106,954 Full contributions in FY2008 from post-IPO acquisitions 42.1%  Property operating expenses increased with expanded property portfolio Less Property Expenses 25,995 88.0%  Actively reviewing for cost minimisation opportunities  Net Property Income 80,959 Benefit of new acquisitions coming through 31.8% 3.5%  Distributable income 45,840 Margins on S$ loans increased in May 2008, diluting higher net property income 5.1%  DPU (cents per Unit) 6.35 Lower DPU as a result of higher debt costs under the May 2008 extension

Portfolio review

 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 (S$ million) 1 (S$ million) 2 (S$ million) 3 Assets valuation value (millions) China Square Central 30 September 2008 S$575.0 575.0 - - 55 Market Street 30 September 2008 S$148.0 148.0 - - KeyPoint 31 December 2008 S$310.0 310.0 (25.0) - Azabu Aco 30 September 2008 ¥1,850.0 29.6 - 4.8 Ebara Techno-Serve 30 September 2008 ¥2,810.0 45.0 - 7.3 Galleria Otemae 30 September 2008 ¥6,370.0 102.0 - 16.5 Cosmo Plaza 31 December 2008 ¥4,529.0 72.6 (19.7) 11.8 Central Park 30 September 2008 A$290.0 284.8 - (59.6) Caroline Chisholm Centre (Centrelink 30 June 2008 A$93.8 92.1 - (19.2) Headquarters) AWPF units 31 December 2008 A$26.8 26.3 (9.8) (9.6) FrasersComm Portfolio 1,696.7 (54.5) (48.0) 1 Translated at ¥1.00 = S$0.01602 and S$1.00 = A$0.9821 being the prevailing spot rates at close of quarter accounts. 2 Calculated by converting the movement between valuations in local currency value at 30 September 2008 FX rates of ¥1.00 = S$0.01342 and S$1.00 = A$0.8420 . 3 Represents the difference in S$ holding value attributable only to the movement in FX rates between 30 September and 31 December.