ANNUAL REPORT 2017 STRONGER TOGETHER STRONGER TOGETHER STRONGER ANNUAL REPORT 2017 FRASERS CENTREPOINT LIMITED LIMITED CENTREPOINT FRASERS STRONGER TOGETHER FRASERS CENTREPOINT LIMITED Company Registration Number: 196300440G 438 Alexandra Road Top: Alexandra Point, Singapore #21-00 Alexandra Point Above left: Artist’s impression of Wonderland at Central Park, Sydney, New South Wales, Australia Above right: Watertown, Singapore Singapore 119958 ANNUAL REPORT 2017 Phone: +65 6276 4882 Fax: +65 6276 6328 fraserscentrepoint.com Untitled-2 1 27/9/16 12:02 PM STRONGER TOGETHER Beyond providing physical space, a building represents the successful combination of thoughtful design, curated experiences, and respectful stewardship. Like a blueprint, these elements form the foundation of a building. For this year’s annual report design, the Frasers Centrepoint group of companies chose to feature line drawings of our key properties – a symbolic representation of our role as designer, curator and steward, not only of our properties, but also of our Group. It represents our continuous efforts to build on solid foundations to transform our blueprints of growth for the Group into reality for our stakeholders. Frasers Centrepoint Limited (FCL) continued to build business resilience by growing our portfolio in a balanced manner across key markets and property segments. Leveraging our experience and expertise across business segments and markets to move forward as one, we were able to capitalise on complementary strengths to capture growth opportunities. We are well positioned to grow alongside our customers with a portfolio of residential, commercial, retail, hospitality, industrial and logistics, and business park assets across multiple geographies. At FCL, we are future-ready because we are stronger together. All figures in this Annual Report are in Singapore dollars unless otherwise specified Contents OUR UNIFYING IDEA EXPERIENCE MATTERS. We believe our customers’ experience matters. 2 Our Unifying Idea FCL Group Strategy When we focus on our customers’ needs we gain valuable 3 FCL Group at A Glance insights which guide our products and services. We create 6 Our Global Presence memorable and enriching experiences for our customers. 8 Our Milestones 10 Group Structure We believe our experience matters. 11 Financial Highlights 12 Board of Directors Our legacy is valuable and inspires our future successes. As a 18 Group Management multi-national business of scale and diversity, we can bring the 23 Corporate Information right expertise to the table to create value for our customers. 24 Chairman’s Statement We celebrate the diversity of our staff and the expertise they 26 Group CEO’s Statement bring, and we commit ourselves to enabling their professional 32 Business Review and personal development. Singapore Australia Hospitality International Business 76 Investor Relations 78 Treasury Highlights 80 Sustainability Report FCL GROUP 124 Awards and Accolades STRATEGY 130 Enterprise-Wide Risk Management 133 Corporate Governance Report SUSTAINABLE 165 Financial Statements EARNINGS GROWTH 310 Particulars of Group Achieve sustainable Properties earnings growth through 336 Interested Person significant development Transactions project pipeline, investment 337 Shareholding Statistics properties and fee income 339 Notice of Annual General Meeting Proxy Form BALANCED ACHIEVE SUSTAINABLE FCL Fact Sheet PORTFOLIO GROWTH AND Grow asset portfolio in a DELIVER LONG-TERM balanced manner across SHAREHOLDER VALUE geographies and property segments OPTIMISE CAPITAL PRODUCTIVITY Optimise capital productivity through Real Estate Investment Trust (REIT) platforms and active asset management initiatives FCL GROUP AT A GLANCE At Frasers Centrepoint Limited, the integrated portfolio Driven by a belief that experience matters, we deliver and services we provide across the property value chain quality property products and services that meet the are unified by our commitment to deliver enriching ever-evolving needs of businesses and communities. and memorable experiences for our customers and Across all our businesses, an unwavering respect for stakeholders. We have businesses in Singapore, Australia, people, partnerships and collaboration has been the Southeast Asia, China and Europe, and our well- foundation for how we conduct ourselves. We strive established hospitality footprint spans over 80 cities to ensure that our products and services are guided across Asia Pacific, Europe, Middle East and North Africa. by insights into the needs of our customers and create environments that our customers can thrive in. Our multi-national businesses operate across five asset classes and have a proven legacy of shaping successful Our legacy of strong leadership and expertise, residential, hospitality, retail, commercial, and industrial commitment to progress, and belief that experience and logistics properties, with assets totalling $27 billion matters at every moment, are key to our continued as at 30 September 2017. We are also a sponsor of four success. vehicles listed on the SGX-ST, comprising three REITs focused on retail, commercial, and industrial properties, and one stapled trust focused on hospitality properties. TOTAL ASSETS ($’M) 10,357 12,847 21,291 23,067 24,204 27,009 2012 2013 2014 2015 2016 2017 PROFIT BEFORE INTEREST AND TAXATION ($’M) 390.2 704.4 765.0 1,104.8 938.2 1,089.0 2012 2013 2014 2015 2016 2017 FRASERS CENTREPOINT LIMITED & SUBSIDIARIES 3 SINGAPORE Frasers Centrepoint Singapore The Retail and Commercial comprises the Retail and Properties division owns and/ Commercial as well as the or manages 12 shopping malls in Residential Properties divisions. Singapore and 10 office and business space properties in Singapore and The Residential Properties division Australia. SGX-ST-listed Frasers has built and sold more than 19,000 Centrepoint Trust (FCT) and Frasers homes in Singapore, with two Commercial Trust (FCOT) hold six residential and a mixed-use project of the malls and six of the office and currently under development. business spaces respectively. Artist’s Impression of Frasers Tower, Singapore Fraser Suites New Delhi, India HOSPITALITY FCL’s hospitality business comprises and millennial travellers. In addition, Frasers Hospitality and Frasers Frasers Hospitality acquired the entire Hospitality Trust (FHT). portfolio of 29 upscale properties in the MHDV stable – Malmaison and Frasers Hospitality has interest in and/ Hotel du Vin, two leading boutique or manages award-winning serviced hotel chains with footprints across residences, hotel residences and key cities in the UK. lifestyle boutique hotels in over 80 cities across Asia, Australia, Europe, Including those in the pipeline, the Middle East and Africa. Frasers Hospitality’s global portfolio stands at over 24,000 units in 146 Conceived with the lifestyle properties, and is on track to achieve preferences of today’s discerning its target of 30,000 units by 2019. business and leisure travellers in mind, Frasers Hospitality launched FHT is the first global hotel and Fraser Suites and Fraser Place in serviced apartment trust to be listed Singapore in 1998. Modena by Fraser, on the SGX-ST. FHT currently has a modern and eco-conscious brand, 15 quality properties strategically and Capri by Fraser, a playful and located across key gateway cities in design-led hotel residence, are also Asia, Australia, the United Kingdom part of Frasers Hospitality’s brand (UK) and Germany. offerings aimed at busy executives 4 ANNUAL REPORT 2017 AUSTRALIA FCL’s businesses in Australia FPA has offices in Sydney, comprise Frasers Property Australia Melbourne, Brisbane and Perth. It (FPA) and Frasers Logistics & also maintains a residential sales Industrial Trust (FLT). office in Hong Kong, Shanghai and Singapore. FPA (incorporating Australand from late 2014) is one of Australia’s leading FLT currently owns a portfolio of property companies, having been Australian industrial properties and is involved in property development listed in Singapore. It has a portfolio since 1924. Its current operations are comprising 61 industrial properties focused on investment in income- concentrated within major industrial producing commercial, retail and markets in Australia, predominantly industrial properties; commercial, in Melbourne, Sydney and Brisbane. retail and industrial property Coupled with properties in Adelaide development and management; and and Perth, FLT’s total portfolio is residential development (including valued at A$1.91 billion as at 30 land, housing and apartments). September 2017. Frasers Property Head Office, Rhodes, New South Wales, Australia Geneba Industrie Park, Mülheim, Germany INTERNATIONAL BUSINESS The International Business unit demonstrate FCL’s strategy to comprises FCL’s investments in increase recurring income overseas. China, Europe including the UK, Vietnam and Thailand. In Vietnam, we acquired a 70% stake in G Homes to develop a residential- China has been an important cum-commercial project on a 1-ha market for FCL since we built our prime site in Ho Chi Minh City. FCL first residential development – the also has a 75% interest in Me Linh 452-unit Jingan Four Seasons in Point, a 21-storey retail/office building Shanghai – in 2001. To date, Frasers in District 1, Ho Chi Minh City. Property China, has developed over 9,000 homes in China. We have three In Thailand, we hold a 39.9% stake in projects currently under development Golden Land Property Development – residential projects in Suzhou and Public