SUSTAINING Long-TERM GROWTH ANNUAL REPORT 2015 SUSTAINING LONG-TERM GROWTH This year’s design for the Frasers Centrepoint group of companies’ annual reports comprises a series that prominently features the Frasers Centrepoint logo. GROWING SUSTAINING THROUGH Long-TERM STRATEGIC GROWTH All four annual reports (Frasers Centrepoint Limited, FOOTPRINTS ANNUAL REPORT 2015 ANNUAL REPORT 2015 Frasers Centrepoint Trust, Frasers Commercial Trust and Frasers Hospitality Trust) can be positioned together to form the complete corporate logo. The Frasers Centrepoint logo symbolically personifies its brand essence of being a property group that builds upon trust and care. In the form of a structured yet dynamic diamond shape, the logo reflects Frasers Centrepoint’s strength, stability and trustworthiness as an integrated real estate group. ON TRACK The eight contoured strokes represent progression and GROWING TO TO REALISING continuity in its business activities. NEW HEIGHTS OUR AMBITIONS ANNUAL REPORT 2015 ANNUAL REPORT 2015 The red strokes represent a strong business foundation, while the warm grey strokes represent its business partners, investors and customers. Together, they form a complete diamond which represents success. The colour red symbolises warmth, vibrancy and passion while grey reflects dignity, trustworthiness and professionalism. Integration, progression and continuity are exemplified by the coming together of the four entities. At Frasers Centrepoint Trust, we focus on developing and growing a portfolio of retail assets which delivers stable and consistent returns. Our strength in being Singapore- centric and suburban-focused underpins our ability to deliver sustainable long-term growth to our unitholders. contents EDITORIAL OPERATIONS & FINANCIAL REVIEW SUSTAINABILITY 01 FINANCIAL HIGHLIGHTS IN 2015 24 OPERATIONS & FINANCIAL 60 SUSTAINABILITY REPORT 02 ABOUT FRASERS REVIEW CENTREPOINT TRUST 31 CAPITAL RESOURCES CORPORATE GOVERNANCE 03 STRUCTURE OF FRASERS 33 RISK MANAGEMENT 74 CORPORATE GOVERNANCE CENTREPOINT TRUST 34 RETAIL PROPERTY MARKET REPORT 04 PERFORMANCE AT A GLANCE REVIEW 06 LETTER TO UNITHOLDERS FINANCIALS 10 FINANCIAL YEAR 2015 IN BRIEF MALL PROFILES 91 FINANCIAL STATEMENTS 11 INVESTOR RELATIONS 42 FCT PORTFOLIO SUMMARY 13 FCT UNIT PRICE PERFORMANCE 44 CAUSEWAY POINT OTHERS 16 BOARD OF DIRECTORS 46 NORTHPOINT 142 STATISTICS OF UNITHOLDERS 20 TRUST MANAGEMENT TEAM 48 CHANGI CITY POINT 145 ADDITIONAL INFORMATION 21 PROPERTY MANAGEMENT TEAM 50 BEDOK POINT 146 NOTICE OF ANNUAL GENERAL 52 YEWTEE POINT MEETING 54 ANCHORPOINT PROXY FORM 56 HEKTAR REIT FINANCIAL HIGHLIGHTS IN 2015 $189.2M $131.0M 11.608¢ $1.91 GROSS NET PROPERTY DISTRIBUTION NET ASSET VALUE REVENUE INCOME PER UNIT PER UNIT +12.1% +11.0% +3.8% +3.2% ANNUAL REPORT 2015 ANNUAL 01 TRUST NT I ENTREPO FRASERS C ABOUT FRASERS CENTREPOINT TRUST Frasers Centrepoint Trust (“FCT”) is a occupancy. FCT also receives steady performance. The potential leading developer-sponsored retail overseas returns via its 31% strategic acquisitions of new assets will real estate investment trust (“REIT”) stake in Hektar REIT. help FCT gain greater scale and with six quality suburban malls in drive further income growth for Singapore. FCT is focused on increasing unitholders. shareholder value by pursuing FCT’s current portfolio comprises organic, enhancement and FCT was listed on the Main Board of Causeway Point, Northpoint, acquisition growth strategies. the Singapore Exchange Securities Changi City Point, YewTee Point, With proactive lease management Trading Limited on 5 July 2006. Bedok Point and Anchorpoint. With initiatives, FCT is well-placed to The trust is managed by Frasers combined appraised value of $2.46 achieve sustainable rental growth. Centrepoint Asset Management Ltd. billion as at 30 September 2015, To unlock the full potential of its (“FCAM”), a real estate management FCT’s malls enjoy wide captive assets, FCT continues to enhance company and a subsidiary of Frasers markets, good connectivity and high existing assets to maximise their Centrepoint Limited (“FCL”). ANNUAL REPORT 2015 ANNUAL 02 VISION Our vision is to be “Your Malls of Choice” to our stakeholders: Tenants, Shoppers and Investors. TRUST NT I We aim to be a fair and value-adding landlord to our Tenants. We aspire to create and offer a vibrant and exciting shopping experience to meet the expectations of our ENTREPO Shoppers. We endeavour to be the REIT of choice affording stable, sustainable and growing distributions to our Investors. FRASERS C MISSION Frasers Centrepoint Trust’s mission is to provide its unitholders with a regular and stable distribution by investing primarily in quality income-producing retail properties in Singapore and overseas, and to achieve long-term growth in net asset value. STRUCTURE OF FRASERS CENTREPOINT TRUST UNITHOLDERS Holdings of Units in Frasers Distributions Centrepoint Trust Acts on Management behalf of Services MANAGER Unitholders TRUSTEE Frasers HSBC Institutional Centrepoint Asset Trust Services Management Management Ltd. Trustee Fees (Singapore) Limited Fees Ownership Net Property of Assets Income FCT PORTFOLIO Property REPORT 2015 ANNUAL PROPERTY Management Causeway Point MANAGER Services Northpoint 03 Frasers Changi City Point Centrepoint Property Bedok Point Property Management Management Services Pte. Ltd. Fees YewTee Point TRUST NT Anchorpoint I ENTREPO FRASERS C PERFORMANCE AT A GLANCE GROSS REVENUE NET PROPERTY INCOME ($ Million) ($ Million) +12.1% +11.0% 189.2 168.8 131.0 158.0 147.2 118.1 111.6 104.4 117.9 82.6 FY2011 FY2012 FY2013 FY2014 FY2015 FY2011 FY2012 FY2013 FY2014 FY2015 NET ASSET VaLUE PER UNIT DISTRIBUTION PER UNIT ($) (Cents) +3.2% +3.8% 11.608 1.91 1.85 1.77 11.187 10.93 10.01 1.53 1.40 ANNUAL REPORT 2015 ANNUAL 8.32 04 TRUST NT I ENTREPO FY2011 FY2012 FY2013 FY2014 FY2015 FY2011 FY2012 FY2013 FY2014 FY2015 FRASERS C PERFORMANCE AT A GLANCE 5-YEAR FINANCIAL HIGHLIGHTS Group For the Financial Year ending 30 September FY2011 FY2012 FY2013 FY2014 FY2015 Selected Income Statement and Distribution Data ($‘000) Gross Rent 103,644 131,280 140,329 149,453 167,914 Other Revenue 14,240 15,923 17,630 19,301 21,328 Gross Revenue 117,884 147,203 157,959 168,754 189,242 Net Property Income 82,618 104,430 111,590 118,096 131,043 Distributable Income 64,375 82,348 90,131 95,442 106,412 Selected Balance Sheet Data ($ Million) Total Assets 1,786.8 1,917.1 2,134.5 2,521.8 2,548.7 Total Borrowings 559.0 577.0 589.0 739.0 718.0 Net Assets 1,151.9 1,263.0 1,462.4 1,698.7 1,754.5 Value of Portfolio Properties1 1,697.0 1,816.0 2,019.5 2,400.0 2,464.0 Key Financial Indicators Distribution per Unit (cents) 8.32 10.01 10.93 11.187 11.608 Net Asset Value per Unit ($)2 1.40 1.53 1.77 1.85 1.91 Ratio of Total Borrowings to Total Assets (Gearing) 31.3% 30.1% 27.6% 29.3% 28.2% Interest Coverage (Times) 4.62 5.56 6.15 6.20 6.61 1 FCT’s property portfolio comprises the following suburban retail properties in Singapore: Causeway Point, Northpoint, Anchorpoint, YewTee Point, Bedok Point and Changi City Point. 2 Includes the distribution to be paid for the last quarter of the Financial Year. ANNUAL REPORT 2015 ANNUAL 05 TRUST NT I ENTREPO FRASERS C LETTER TO UNITHOLDERS DEAR UNITHOLDERS, fixed-interest rate debt of our borrowings at 75% to provide cushion from short-term interest rates volatility. We are pleased to present Frasers Centrepoint On the asset side of the balance sheets, the appraised Trust (FCT)’s Annual Report 2015 and the inaugural value of our properties has increased to $2,464.0 million Sustainability Report for the financial year ended from $2,400.0 million, due to upward revision of the 30 September 2015. valuations of our properties, with the exception of Bedok Point. With higher total assets and lower liabilities, GOOD SET OF FINANCIAL RESULTS AND STRONG our net asset value as at end-FY2015 increased 3.2% BALANCE SHEET from $1.85 to $1.91 per unit. FCT has delivered another set of good financial results STABLE OPERATING PERFORMANCE for FY2015 with stable operating performance of its properties. Distribution per unit for FY2015 was up 3.8% Our portfolio of six suburban malls are mostly located to 11.608 cents and this is a new-high following nine near or next to MRT stations and bus interchanges in consecutive years of growth at a compounded average populous residential areas. Our malls attracted a total of growth rate of 7.5% since our IPO in 2006. 97.2 million shoppers in FY2015, an increase of about 3% ANNUAL REPORT 2015 ANNUAL from FY2014. Our suburban malls typically draw stable Gross revenue increased 12.1% to $189.2 million and net shopper footfall from residential catchment within 3 to 5 06 property income increased 11.0% to $131.0 million on kilometres radius of the mall, and spending at the malls the back of full-year contribution from Changi City Point are substantially for necessities such as food and dining, (which was acquired in June 2014), and from the step- groceries and services. These characteristics underpin up rents and higher rental rates achieved for new and the stability and resilient performance of our properties renewed leases signed during the year. through economic cycles. TRUST NT I Net property income margin for the portfolio eased Portfolio occupancy was 96.0% as at 30 September slightly to 69.2% from 70.0% in FY2014, as property 2015, a slight drop from 98.9% last year owing to ENTREPO expenses increase outpaced that of revenue. Our two on-going tenant remixing activities at Changi City Point largest malls, Causeway Point and Northpoint, continued and Bedok Point. Despite the current headwinds in the to deliver steady performance.