Frasers Property Limited Financial results presentation for the nine months ended 30 June 2019 8 August 2019 Waterway Point, Singapore Frasers Property Australia industrial facility, Melbourne, Australia Ceva Building 1, Melbourne, Australia
Important notice Statements in this presentation constitute “forward -looking statements”, including forward-looking financial information. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Frasers Property Limited (“FPL” or “Frasers Property” or the “Company”) and its subsidiaries (together with Frasers Property, the “Group”), 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 assumptions regarding the Group’s present and future business strategies and the environment in which the Group will operate in the future. Because these statements and financial information reflect Frasers Property’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 as a result of these risks, uncertainties and assumptions and you are cautioned not to place undue reliance on these statements and financial information. Frasers Property 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 Frasers Property’s expectations with regard thereto or any change in events, 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 Singapore Exchange Securities Trading Limited and/or any other regulatory or supervisory body or agency. 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 Frasers Property has taken reasonable steps to ensure that the information is extracted accurately and in its proper context, Frasers Property has not independently verified any of the data from third party sources or ascertained the underlying economic assumptions relied upon therein. Nothing in this presentation should be construed as financial, investment, business, legal or tax advice and you should consult your independent advisors. Any discrepancies in the figures included herein between the listed amounts and total thereof are due to rounding. 2
Contents Key highlights Operational updates – Singapore – Australia – Hospitality – Europe & rest of Asia Results & financials Appendices 3
Key highlights Victoria at the Clifford Hallam Healthcare warehouse, Melbourne Wolli Creek (Discovery Point), NSW, Australia Frasers Hospitality’s office, Singapore Frasers Property Australia industrial facility, Melbourne, Australia Frasers Property Europe, facility in Rheinberg, Germany 9 Indian Drive, Keysborough, Melbourne, Australia The Centrepoint, Singapore Frasers Tower, Singapore
Higher attributable profit Large base of recurring income assets Large base of recurring income sources continued to provide stability to earnings and helped to offset the inherent effects of lumpy development income contribution Attributable profit anchored by a large base Revenue S$2,656 million 10% of recurring income assets PBIT 1 S$906 million 4% Attributable profit S$600 million 53% Maintained 73.6% S$1.9 billion S$3.6 billion 2 sound net debt-to-equity pre-sold revenue cash and deposits financial ratio across Singapore, as at 30 June 2019 position Australia, and China as at 30 June 2019 Profit before interest, fair value change, taxation, and exceptional items 1. 5 Including cash balances of the Group’s listed entities in Singapore and Thailand 2.
Key highlights Effective portfolio management Group AUM 1 grew on the back of enhanced retail presence in Singapore and land bank additions in Australia Group AUM up 10.1% to S$37.1 billion as at 30 June 2019 from S$33.7 billion as at 31 March 2019 Building Completed acquisition of shares in PGIM Real Estate AsiaRetail Fund (“PGIM ARF”) sustainable Limited. FPL currently holds ~53.7% stake in the fund scale Acquired 56.0 ha industrial land across three sites at Dandenong South in VIC, Kemps Creek East in NSW and Berrinba in QLD with an estimated total GDV of S$493 million 2 and a residential site at Hardy’s Road in VIC that can yield approximately 1,545 land units with an estimated total GDV of S$458 million 2 Maintained efforts to optimise capital productivity Equity injection by a long-term strategic investor in Frasers Tower 3 in Singapore, which raised S$442.7 million 4 . Following completion of the equity injection, the Group and the strategic investor each holds a 50% stake in Frasers Tower Active capital Divested stake 5 in Waterway Point in Singapore to Frasers Centrepoint Trust (“FCT”) management for S$240.5 million 6 Announced the proposed divestment of 12 logistics and industrial properties in Germany and Australia to Frasers Logistics & Industrial Trust (“FLT”) for S$481.8 million 7 on 3 July 2019 5. Comprising 33⅓% of the total issued units of Sapphire Star Trust and 33⅓% of the 1. Comprises the full asset value of property assets in which the Group has an interest, including assets held by its REITs, joint ventures and associates, and acquisitions issued share capital of FC Retail Trustee Pte. Ltd. 6. Based on FCT’s announcement on the SGX -ST on completion of acquisition of pending completion 2. Based on exchange rate S$/A$ : 0.9429 as at 30 June 2019 Waterway Point dated 11 July 2019 3. Via a subscription of new units Aquamarine Star Trust (“AST”) 7. B ased on the exchange rate of S$/A$ : 0.9500 and €1/S$ : 1.5400 as at 3 July 2019 4. Subject to post- closing adjustments and based on 50% of AST’s adjusted net asset 6 value immediately after closing on an agreed property value of S$1,965,000,000
Key highlights Capital structure aligned to strategic focus on sustainability Fifth green loan and fourth issuance of perpetual securities for the Group On 16 July 2019, the Group secured a syndicated green loan with pricing structure linked to BCA Green Mark 1 – A$750 million term loan comprising a A$500 million five-year green loan tranche and a A$250 million five-year tranche Continued – Green loan tranche has a favourable pricing adjustment from the second diversification of year onwards if the requisite green standards of Alexandra Point and 51 funding sources Cuppage Road are maintained Issued S$600 million of perpetual securities in two tranches – in April 2019 and July 2019, with semi-annual distributions of 4.98% per annum. The July retap was issued above par (100.53) giving an effective yield of 4.85% In July 2019, announced intention to redeem S$600 million 4.88% subordinated perpetual securities that was issued in September 2014 1. BCA Green Mark is a Singapore green building rating system to evaluate a building for its environmental impact and performance. 7
Recurring income base provides resilience and stability Total property assets evenly spread across asset classes > 80% of the Group’s total property assets are recurring income assets > 75% of the Group’s operating PBIT 1 for 9M FY19 was from recurring income sources Recurring vs non-recurring operating PBIT 1 Total property assets 2 : S$27.8 billion 100% 80% Development, Logistics / Recurring: S$4.4 b, industrial, 76% 16% S$6.5 b, 23% 60% Retail, S$6.4 b, 40% 23% Business parks / offices, S$5.8 b, 20% 21% Hospitality, S$4.7 b, 17% 0% FY 14 FY 15 FY16 FY17 FY18 9M FY19 3 Recurring Non-Recurring Excluding corporate expenses 1. Property assets comprise investment properties, property, plant and equipment, investments in joint ventures and associates and properties held for sale 2. 8 Includes property and fee income but excludes share of fair value change of joint ventures and associates and corporate expenses 3.
Recommend
More recommend
