Waterway Point ANNUAL REPORT 2020 / 1 AGILITY & TENACITY At Frasers Centrepoint Trust, we believe having the right focus, relevant scale, and local expertise are critical success factors for retail real estate. This will give us a sustained competitive advantage, while placing us in a stronger position to deliver long-term unitholder value. As we navigate through a volatile, uncertain, complex and ambiguous operating environment, we must be agile and tenacious as an organisation to be able to sustain over the long term. In the face of adversity, we are investing with agility to strengthen our organisational culture and structure, ensuring quality and consistent systems and processes across our businesses. We demonstrate tenacity by strengthening FCT’s well-diversified portfolio with earnings underpinned by a resilient base of retail properties generating recurring income. We will continue to evolve, reinvent and thrive as a Retail REIT in the post COVID-19 world, as we remain committed to sustainable value creation and delivering steady returns for our stakeholders. CONTENTS Overview Asset Portfolio 02 About Frasers Centrepoint Trust 50 FCT Portfolio Overview 03 Structure of FCT and Organisation 52 Causeway Point Structure of the Manager 54 Northpoint City North Wing and Yishun 10 04 Business Objectives and Growth Strategies Retail Podium 05 FY2020 Highlights 56 Waterway Point 06 Key Events 58 Changi City Point 08 5-Year Performance at a Glance 60 Bedok Point 10 Unit Price Performance 62 YewTee Point 12 Letter to Unitholders 64 Anchorpoint 16 Board of Directors 66 Mall Directory 20 Trust Management Team 67 Investment in AsiaRetail Fund Limited 22 Investor Relations 70 Investment in Hektar REIT Business Review Risk Management, Sustainability Report & 26 Operations & Financial Review Corporate Governance 34 Capital Resources 72 Risk Management 36 Retail Property Market Overview 74 Sustainability Report 101 Corporate Governance Report Financial Information 137 Financial Statements Other Information 212 Use of Proceeds 213 Statistics of Unitholdings 217 Additional Information 219 Notice of Annual General Meeting Proxy Form 2 / FRASERS CENTREPOINT TRUST ABOUT FRASERS CENTREPOINT TRUST Frasers Centrepoint Trust (“FCT”) is a FCT also holds a 31.15% stake in leading developer-sponsored retail Hektar Real Estate Investment Trust, real estate investment trust (“REIT”). a retail-focused REIT in Malaysia After acquiring the remaining listed on the Main Market of Bursa interest in AsiaRetail Fund Limited Malaysia Securities Berhad. (“ARF”) on 27 October 20201, FCT has become one of the largest suburban FCT is index constituent of several retail mall owners in Singapore with benchmark indices including total assets of approximately S$6.7 the FTSE EPRA/NAREIT Global billion. FCT’s enlarged Singapore Real Estate Index Series (Global portfolio, comprises 11 retail malls Developed Index), the FTSE ST Real and an office building located in Estate investment Trust Index, the the suburban regions of Singapore, MSCI Singapore Small Cap Index and near homes and within minutes the SGX iEdge S-REIT Leaders Index. to transportation amenities. The Singapore retail portfolio has over Listed on the Main Board of the 2.3 million square feet of net lettable Singapore Exchange Securities area with over 1,500 leases with Trading Limited since 5 July a strong focus on providing for 2006, FCT is managed by Frasers necessity spending, food & beverage Centrepoint Asset Management Ltd., and essential services. a real estate management company and a wholly-owned subsidiary of The Singapore portfolio comprises Frasers Property Limited. Causeway Point, Northpoint City North Wing (including Yishun 10 Retail Podium), Anchorpoint, YewTee Point, Changi City Point, Waterway Point (40%-interest), Tiong Bahru Plaza, White Sands, Hougang Mall, Century Square and Tampines 1 and an office property (Central Plaza). FCT’s malls enjoy stable and recurring shopper footfall supported by commuter traffic and residential population in the catchment. 1 FCT announced on 3 September 2020 the acquisition of the remaining 63.11% interest in AsiaRetail Fund Limited (the “ARF Acquisition”) which it does not own. The ARF Acquisition was approved at an Extraordinary General Meeting on 28 September 2020. The ARF Acquisition was completed on 27 October 2020 and FCT now owns 100% interests in ARF whose property portfolio comprises Tiong Changi City Point Bahru Plaza, White Sands, Hougang Mall, Century Square, Tampines 1 and Central Plaza. ANNUAL REPORT 2020 / 3 STRUCTURE OF FRASERS CENTREPOINT TRUST Frasers Centrepoint Trust Unitholders Holdings of Units in Distributions Frasers Centrepoint Trust Management Acts on behalf of Services Unitholders Trustee Manager HSBC Institutional Trust Frasers Centrepoint Asset Services (Singapore) Management Ltd. Management Trustee Limited Fees Fees Ownership of Assets Net Property Income FCT Portfolio Properties1 Property Causeway Point Management Services Northpoint City North Wing, Property Manager including Yishun 10 retail podium Frasers Property Retail Waterway Point (40% stake) Management Pte Ltd. Property Changi City Point Management Fee YewTee Point Anchorpoint 1 The divestment of Bedok Point, which was approved by Unitholders at an extraordindary general meeting convened on 28 September 2020, has been completed on 9 November 2020. ORGANISATION STRUCTURE OF THE MANAGER The Manager Frasers Centrepoint Asset Management Ltd The Board of Directors Nominating and Remuneration Committee Audit, Risk and Compliance Committee Chief Executive Officer Investor Relations Finance Investment & Asset Management 4 / FRASERS CENTREPOINT TRUST BUSINESS OBJECTIVES AND GROWTH STRATEGIES FCT is a real estate investment trust set up to own and invest in income producing properties or properties that could be developed or redeveloped into income-producing properties, used primarily for retail purposes in Singapore and overseas. FCT’s objectives are to deliver regular and stable distributions to unitholders of FCT (“Unitholders”) and to achieve long- term growth in its net asset value, so as to provide Unitholders with competitive rate of return for their investments. Frasers Centrepoint Asset Management Ltd. (“FCAM”), the Manager of FCT, sets the strategic direction for FCT and this includes making recommendations to HSBC Institutional Trust Services (Singapore) Limited, as the Trustee of FCT, on acquisitions, divestments and enhancement of assets. FCAM also oversees the overall management of FCT’s portfolio of investment properties, including the capital and risk management. FCT’s growth strategies comprise three growth drivers – acquisition growth, enhancement growth and organic growth. ACQUISITION GROWTH ORGANIC GROWTH RISK MANAGEMENT Identifying and pursuing growth Active lease management to Effective risk management is a opportunities via acquiring achieve positive rental reversions, fundamental part of FCT’s business additional income-producing maintaining healthy portfolio management. Key risks, mitigating properties and properties that occupancy to provide steady measures and management actions could be developed or redeveloped rental growth. are continually identified, reviewed into income-producing properties. and monitored by management The acquisitions should meet FCT’s FCAM adopts prudent capital and risk as part of FCAM’s enterprise-wide investment objectives to enhance management strategies in its course risk management framework. yields and returns for Unitholders of business: Recognising and managing risks while improving portfolio are central to the business and to diversification. The acquisition protecting Unitholders’ interests. opportunities include Sponsor’s pipeline assets and 3rd party assets, in Singapore and overseas. CAPITAL MANAGEMENT FCAM continues to maintain a prudent financial structure and adequate financial flexibility to ENHANCEMENT GROWTH ensure that it has access to capital resources at competitive cost. This includes change of configuration FCAM proactively manages FCT’s and layout of the properties to cash flows, financial position, debt achieve better asset yield and maturity profile, costs of capital, sustainable income growth; and interest rates exposure and overall to achieve value creation through liquidity position. Asset Enhancement Initiative (“AEI”) to improve the income producing capability of the properties. ANNUAL REPORT 2020 / 5 FY2020 HIGHLIGHTS GROSS APPRAISED VALUE OF REVENUE PROPERTY PORTFOLIO S$164.4 million S$2,857 million 16.3% year-on-year 0.4% year-on-year Total appraised value of FCT’s portfolio of investment properties as at 15 September 20201 stood at S$2,857 million, compared with S$2,846 million a year ago. The NET PROPERTY appraised values of Causeway Point, Northpoint City INCOME North Wing, Changi City Point, and YewTee Point were $110.9 million relatively stable compared to a year ago. The smaller 20.4% year-on-year properties Anchorpoint and Yishun 10 saw declines of 3.1% and 7.9% to their respective appraised value. Bedok FY2020 revenue and net property income fell 16.3% and Point registered a S$14 million or 14.9% gain in appraised 20.4% year-on-year (y-o-y), respectively. The financial value, based on the divestment price of the property 1 performance were impacted by rental rebates dispensed announced on 3 September 2020 . The appraised value of 2 in 2H20 to help tenants cope with challenges arising from Waterway Point remained unchanged at S$1,300 million . COVID-19. The total amount of rental