3Q 2024 Business Update Conference Call

Good morning, everyone. Welcome to Fraser Centre Point Business Update for the third quarter and the 24th of July, 20th of June, 2024. Today, we are very happy to have the management team here to give you an update of the progress that we have made in the last quarter. And so with us, we have the CEO, Jia-Nu, we have the CFO, Audrey Thao, and our head of investment, NSF Management is calling me. I will be your host today and I'm happy to hand this over to Richard to kick off the presentation. Richard, please. Hey, thanks. Thanks, Fanling, and good morning, everyone. Thanks for joining us bright and early today. Hopefully you had the opportunity to look through our deck. So as you know, this quarter is more on the business update, looking at the operations and how have we felt so far this quarter. But before I proceed further, I just wanted to note that Audrey, our CFO,

will be joining us for the last analyst update session before she stepped out on the 8th of August. All right, okay. So coming back to our deck here, as you can see, we have done some changes. Fanling has also created a little bit more of a dashboard look, and that is fundamentally to help in terms of visual aspects so that you guys could really see not just a number, but a trend in terms of where we are, how we have been performing so far. Okay, so in terms of the overall operational update, you can see that occupancy remains very healthy, 99.7% overall. And what's also more important is we have a couple of 100 pointers and all our more achieve at least 99% in the third. Shocker traffic, tenant sales, we will go into more detail later on where Fanling will share. But just a very quick snapshot, we are still ahead if you compare year on year

in terms of sales, it fluctuates a little bit quarter to quarter. But nonetheless, I think, you know, it's still on a positive trend. Similarly for shopper traffic, we are probably about 5% of pre-COVID. Some of our malls, the more dominant ones like Cosway Point, not Point CD, has actually achieved pre-COVID level. So something we continue to focus, something we continue to work on. Financial position, our gearing is at 39.1%. Again, this is partly due to some drawdown as we pay off the keybacks for our T1 AEI. Average cost of debt is of this quarter, it came in at 4.1%, but you can see that for year to date, essentially at 4.2%. So it has been moving down marginally from 4.3, the peak of 4.3 in first Q2, came down to 4.1 for the last two quarter. We're gonna be giving you an update of the T1 AEI.

We are very excited about this completion because it's gonna be something new for T1 AEI. We are able to bring in 68 new to mall and 46 new to SCT retail concepts. For those of you who had the opportunity, I would like to invite you to take a look at some of the new brands that we have brought in for this mall. It's still very much on track to complete fully by September. Most of the work has already been completed actually. It's now some of the tenants are doing a fit-down and so on, right? And happy to also share that the ROI, as we mentioned before, it's about 8% on the cost of the work, on the AEI work, but we are likely to outperform that. In terms of our ESG front, we continue to do our best where we can, focusing on the environment and also not forgetting the other element as well.

Specifically in this particular update, we'll focus a little bit more on our social aspect of the ESG. All right, Monday. Microeconomy, I'm not gonna touch in greater details, probably you guys have all the same details as what you're seeing here, but there's just some key points. Wanted to highlight that the GDP actually grew to 0.9% in the second quarter. And also this is very much in line with what NDI has earlier maintained, the forecast of 1-3%. More importantly, also looking at co-inflation is more dreaded to 2.9%. So I think we are seeing signs of this coming down, which bodes well for both our consumers and also our retailers. So there's another space that we continue to watch and continue to focus on. For retail sales, from the RSI for May, that is actually a flat number, no change here,

but actually for FCT portfolio has seen an increase. Similarly for FNB sales, for May 2024, for the broader market perspective, we saw a 2.9% increase here a year, but our own internal numbers actually surpassed that figure. RAN's Suburban Prime retail 0.3% QAQ and 2.6% year on year. So in the last quarter, we actually shared that our reversion came in at 7.5, again, happy to say that we are very much on track at that level. New supply, not much has changed since our last discussion. So very much, again, very limited supply. We're expecting to come on stream for the next three to four years. So that again helps underpin the demand, which is why we are seeing all our most, at least 99% occupied.