Frasers Centrepoint Trust

Good morning, everyone. I hope everyone is well today. Thank you for attending FCT's third quarter FY2025 Business Update. We have the full team here with us today. Mr. Richard Ng, Chief Executive Officer. Ms. Annie Kong, Chief Financial Officer. Ms. Pauline Lin, Head of Investment and Asset Management. Without further ado, I will now hand over the session to Richard to kick off today's briefing. Richard, please.

Thanks, Judy. Good morning everybody. I understand that you guys are having a very busy day today. Hopefully, you have some time to go through our deck. But anyway, we're going to run through quickly and we'll move on to Q&A after that. Okay, Judy, let's move on to the first slide, please. Thanks. Yeah, just a very quick summary of what has happened during the third quarter. A lot of has happened actually. You know, if you look at the third quarter, a very busy quarter for FTP. Of course, on the organic front, the team continues to work very hard to ensure that the malls are trading well. We'll share a little bit afterwards in terms of the traffic flow, the sales performance and so on. but the key highlight of this quarter of course is the acquisition of North Point TV South Wing which has been successfully completed and as part of this transaction we also raised did an equity fund raising of about 421 million and issued a perpetual securities amounting to about 200 million at a competitive pricing of 3.98% so we are very happy with what has happened and as we go through the deck you see that With this acquisition, you start to see the flow of income from South Wing coming into the portfolio as well. And the other point that I wanted to highlight is also, you know, as expected from the market that the cost of debt continues to come down and it has reduced to 3.7% in the third quarter of 2025. Next slide please. Okay, this is about North Point City South Wing. I'm not going to go into detail. I'm sure all of you are very familiar. Of course, it helps to consolidate our position as the leading private suburban retail space owner. And we are very happy that now, you know, we fully own both the North Wing as well as the South Wing and we have shared as part of the acquisition. There are various opportunities for us to unlock value. and we will start to do some of this work and progressively some of the lower hanging fruit will be producing its result along the next couple of quarters. Ok, so these are just a very high level focus on the KPI or the key metrics that we have achieved for this quarter. Occupancy is at 99.9%. I think it moves between 99.5, 0.7, 0.9. Sometimes it's a function of The void period and so on, so it's frictional vacancy really because the mall is running almost 100% and some of them are actually at 100% as we speak. So again, very high committed occupancy rate, a testament to the portfolio that we have, a testament to the strong demand we continue to see from the retail market, especially for prime suburban malls. the shopper numbers came in about 2.1% increase while we did see some softening in the month of June etc as a result of the school holidays but overall the quarter again was a positive quarter for us sales came in at 4.4% a number that we think is very strong given the headwinds and given some of the headline numbers coming from the overall retail sector as a whole for Singapore Every great leverage, you see two numbers there. At 30th of June, our leverage number was about 42.8%, but that's because of Perk Securities financing or the completion and the money came in only after the 30th of June. So if you take that into consideration, our gearing is now at 40.4%. has come down to 3.7% again that would be very helpful for our bottom line as well and another further update for outcome more we shared this earlier on but this is again as part of our continuous update very happy to see that over 74% of the AEI spaces has already been pre-committed before the completion of work A big picture, the market GDP grew by 4.3% year-on-year in the second quarter of 2025. Of course, I am aware that overall in terms of the estimate, it has come down to between 0 to 2%, but we still see very strong growth for the quarter. and for the first half itself the average was 4.2% so unless something really really significant happened in the second half or the next five months I think we still probably will probably at least achieve the higher end of the 0 to 2% if not more but what's also interesting to see is that inflation numbers continue to ease down to 0.8% and that's also something that we watch out for because that affects our our retailers it also affect our consumer sentiment retail sales index and this is the number that I was referring to of course we're just showing here in the month of May on the broader sales index wise it actually was a flat figure and then for for F&B sales for May and also it's a 1.4% year-on-year increase if you look at our sales number it came in about 6.2% just for the month of May and for F&B sales it came in about 5.6% year-on-year Rental continue its positive trajectory. If you look at the Prime Suburban Prime Retail rents, it's kind of gone up to about 1.7% year on year and a slight increase of 0.5% quarter on quarter. So again, all this points to the fact that the Prime Suburban Retail Malls continue to be very resilient, continue to be on a positive trajectory. and partly you know as we speak and this is something that we have shared before as well you know one of the main contributor is strong demand but at the same time there continues to be very limited stock that comes to the market so this is an updated number that we just recently gotten from CBRE that shows all the way to 2028 so from now to 2028 you're looking at in total right prime and and suburban and downtown core and also rest of central area etc It amounts to about 1 million square feet for the entire period. And this is barely 2% increase from existing total stock. But if you look at Jeff Suburban itself, it's about 340,000 square feet. And these are spread out across very small. Some of them, it is actually very smallish scale, 40,000, 56,000. Nothing significant or sizable is coming on stream for the next three years or so. This is when you put together the story where you see limited supply, strong demand, and that is the end result of saying there is actually a positive trajectory in terms of the rental for the sector itself. The red line denotes the rental for Prime Suburban Mall. It's on a positive trajectory. I shared about you know the supply and of course you know in terms of demand for the occupancy rate the suburban for the industry-wide is coming in about 95.6% but that's the total right across Singapore but if you look at FCT's portfolio alone we registered 99.9% Next slide. We're going to move on to the financial highlights so I'm just going to hand over to Annie to share some details with you. Over to you Annie.

Thank you Richard. Good morning everyone. I will take you through the financial matrix for this quarter. We continue to deliver a healthy financial position for this quarter with the improved average cost of debt. As mentioned by Richard earlier, gearing has increased to 42.8% at the 30th June versus 38.6%. This is mainly because of the acquisition of North Point City South Wing. If we take into account the repayment of borrowings, which happened where the project came in just after our quarter, the gearing is about 14.4%. Cost of debt on the 9-month basis is 3.8% On the quarter basis, it is 3.7% about 10 bids lower than the previous quarter Average debt to maturity has also lengthened to 3.38 years as a result of the new fertility that was taken for the acquisition of North Point City South Wing as well as the loan from the newly acquired subsidiary North Gem Trust which matures in FY2029 76.2% of our debt has been hedged to fixed rate and our total unloan facility is at $780 million. Credit rating remains unchanged at EAA2. Next slide please. Okay, total borrowing stood at $2.8 billion of which $58.2 is unsecured, $39.1 is secured with the remaining balance in MTN. The increase in secured borrowings was from Li Liang, the newly acquired loan from North Point City South Wing. Approximately $459 million of our debt is maturing in FY2026 and our refinancing discussion with the banks have commenced. The higher debt maturity that you can see in FY2029 is attributable to the loan that was consolidated following the acquisition of North Point City South Wing.