CELEBRATING
10 YEARS OF
GROWTH
A N N U A L R E P O R T 2 0 1 6
Causeway Point
Northpoint
Changi City Point
CELEBRATING
10 YEARS OF GROWTH
The Frasers Centrepoint group of companies has always
shared common ground, in which each entity is built
on the foundations of integrity and excellence – key
values that continue to guide every aspect of our
business operations today. Inspired by our heritage,
this year’s annual report features a repeat motif of our
logo identity, to reference the Group’s ability to build
on these values to strengthen our industry position and
deliver sustainable returns to our shareholders.
Frasers Centrepoint Trust (FCT) marks a milestone in
FY2016 as it celebrates its tenth anniversary as a listed
REIT on the SGX. FCT established a stellar record of
consistent growth and steady returns to its unitholders,
including ten consecutive years of growth in Distribution
per Unit (DPU). This is a testament to its ability to remain
resilient and achieve growth through economic cycles
and uncertainties in the market conditions. Going
forward, FCT will continue to focus on its vision to be
the “malls of choice” to all its stakeholders.
CONTENTS
EDITORIAL
02 About Frasers Centrepoint
OPERATIONS &
FINANCIAL REVIEW
SUSTAINABILITY
68 Sustainability Report
Trust
30 Operations & Financial Review
03 Structure of Frasers
Centrepoint Trust
04 Key Financial Figures
for FY2016
06 10-Year Performance
at a Glance
37 Capital Resources
39 Risk Management
CORPORATE
GOVERNANCE
40 Retail Property Market Review
98 Corporate Governance Report
MALL PROFILES
FINANCIALS
11 10-Year Financial Highlights
50 FCT Portfolio Summary
119 Financial Statements
12 Letter to Unitholders
52 Causeway Point
18 Financial Year 2016 in Brief
54 Northpoint
19
Investor Relations
56 Changi City Point
21 FCT Unit Price Performance
22 Board of Directors
26 Trust Management Team
27 Property Management Team
58 Bedok Point
60 YewTee Point
62 Anchorpoint
64 Hektar REIT
OTHERS
175 Statistics of Unitholders
178 Additional Information
179 Notice of Annual General
Meeting
Proxy Form
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
01
ABOUT FRASERS CENTREPOINT TRUST
Frasers Centrepoint Trust (“FCT”)
is a leading developer-sponsored
retail real estate investment trust
(“REIT”) with six quality suburban
malls in Singapore.
FCT’s current portfolio comprises
Causeway Point, Northpoint,
Changi City Point, YewTee Point,
Bedok Point and Anchorpoint. With
combined appraised value of $2.51
billion as at 30 September 2016,
FCT’s malls enjoy wide captive
markets, good connectivity and
high occupancy. FCT also receives
steady overseas returns via its 31%
strategic stake in Hektar REIT.
FCT is focused on increasing
shareholder value by pursuing
organic, enhancement and
acquisition growth strategies.
With proactive lease management
initiatives, FCT is well-placed to
achieve sustainable rental growth.
To unlock the full potential of its
assets, FCT continues to enhance
existing assets to maximise their
performance. The potential
acquisitions of new assets will
help FCT gain greater scale and
drive further income growth for
unitholders.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
02
FCT was listed on the Main Board of
the Singapore Exchange Securities
Trading Limited on 5 July 2006.
The trust is managed by Frasers
Centrepoint Asset Management
Ltd. (“FCAM”), a real estate
management company and a
subsidiary of Frasers Centrepoint
Limited (“FCL”).
STRUCTURE OF FRASERS CENTREPOINT TRUST
UNITHOLDERS
Holdings of Units in
Frasers Centrepoint Trust
Distributions
MANAGER
Frasers Centrepoint
Asset Management Ltd.
Management
Services
Management
Fees
Acts on behalf
of Unitholders
Trustee
Fees
TRUSTEE
HSBC Institutional Trust
Services (Singapore)
Limited
Ownership
of Assets
Net Property
Income
PROPERTY
MANAGER
Frasers Centrepoint
Property
Management Services
Pte. Ltd.
Property
Management
Services
Property
Management
Fees
FCT PORTFOLIO
Causeway Point
Northpoint
Changi City Point
Bedok Point
YewTee Point
Anchorpoint
VISION
MISSION
Our vision is to be “Your Malls of Choice” to our
stakeholders: Tenants, Shoppers and Investors.
We aim to be a fair and value-adding landlord to
our Tenants.
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.
We aspire to create and offer a vibrant and exciting
shopping experience to meet the expectations of
our Shoppers.
We endeavour to be the REIT of choice affording stable,
sustainable and growing distributions to our Investors.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
03
KEY FINANCIAL FIGURES FOR FY2016
APPRAISED VALUE OF
INVESTMENT PROPERTIES
$ 2.51 billion
1.8% year-on-year
NET PROPERTY
INCOME
$129.9 million
0.9% year-on-year
NET ASSET VALUE
PER UNIT
$1.93
1.0% year-on-year
Four of the FCT malls - Causeway
Point, Northpoint, YewTee Point and
Anchorpoint saw higher appraised
valuations from the independent
property valuers. Valuations of
Changi City Point and Bedok
Point remained unchanged. The
aggregate value of the portfolio
properties was $2,509 million,
which is $45 million or 1.8% higher
compared with the aggregate
value of $2,464 million as at 30
September 2015.
Net Property Income (NPI) for
FY2016 was $129.9 million, which
is 0.9% lower compared to the
previous year. The NPI in FY2016
was affected by the ongoing asset
enhancement initiative (AEI) at
Northpoint and lower average
occupancy rate at Changi City Point
and Bedok. The year-on-year drop
was mitigated by lower property
expenses attributed to lower utilities
tariff rates and other property
expenses in FY2016.
FCT’s NAV as at 30 September
2016 is 1.0% higher than the $1.91
a year ago.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
04
GROSS
REVENUE
$183.8 million
2.9% year-on-year
GEARING
LEVEL
28.3 %
DISTRIBUTION
PER UNIT
$11.764 cents
1.3% year-on-year
DPU
YIELD
5.34 %
FCT achieved gross
revenue of $183.8 million
in FY2016, 2.9% lower
than FY2015. The revenue
in FY2016 was affected
by lower contributions
from Northpoint, which
is undergoing AEI and
lower average occupancy
rate at Changi City Point
and Bedok Point due to
ongoing tenant-remixing.
FCT continues to maintain
a healthy gearing level at
28.3%, which is one of the
lowest in the Singapore
REIT sector. The gearing
level as at 30 September
2016 is stable compared
with 28.2% a year ago
Total distribution per unit
(DPU) for FY2016 amounts
to 11.764 cents, which
is 1.3% higher than the
11.608 cents DPU for
FY2015. FCT maintains
consecutive DPU growth
over the ten years since its
listing at a compounded
annual growth rate
(CAGR) of 6.9%.
Based on the DPU of
11.764 cents for FY2016
and the closing price of
$2.20 on 30 September
2016, the DPU yield of
FCT stood at 5.34%,
which is 358 basis points
above the Singapore
Government 10-year
bond yield of 1.758%
(Source: Bloomberg)
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
05
10-YEAR PERFORMANCE AT A GLANCE
10YEARS OF
GROWTH
2006
2007
2008
JULY
Frasers Centrepoint Trust
listed on the Mainboard of the
Singapore Exchange on 5 July
2006. Initial portfolio comprised
Causeway Point, Northpoint
and Anchorpoint valued at
S$915 million. Unit price at
listing was S$1.03 per unit,
market capitalization was
S$633 million
MAY
FCT acquired a 27% stake in
Hektar REIT
Anchorpoint commenced its
AEI works, to reposition the
mall as an outlet mall offering
a wider range of F&B and retail
concepts
OCTOBER
FCT closed its fi rst full year with
DPU which was 12% above the
forecast provided in its IPO
prospectus
JANUARY
FCT embarked on S$39
million AEI at Northpoint, to
rejuvenate and reconfi gure
the mall and to integrate
with the newly-completed
Northpoint 2, to create a single
seamless 232,000 square feet
mall. The expected return on
investment for the AEI was 11%
MAY
FCT relaunched Anchorpoint
as Singapore’s fi rst outlet mall
after completing $13 million
AEI. The AEI delivered a
return on investment of 14%
OCTOBER
FCT achieved strong results
for FY2008 with 9% growth
in gross revenue and net
property income and 11%
increase in DPU to 7.29 cents
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
06
2009
2010
FEBRUARY
Standard & Poor’s Rating
Services assigned ‘BBB+’ rating
to FCT
OCTOBER
FCT achieved higher year on
year DPU of 7.51 cents for
FY2009
DECEMBER
Asiamoney Magazine conferred
the “Small-Cap Corporate of
the Year in Singapore” award
on FCT
JANUARY
FCT announced the acquisitions
of Northpoint 2 and YewTee Point
for total purchase consideration of
S$290.2 million
MARCH
Northpoint was relaunched after
completing the S$39 million
AEI. The AEI delivered return on
investment of 10.7%
JULY
Causeway Point commenced
S$72 million AEI works
SEPTEMBER
FCT was ranked in the top
quartile for corporate governance
in Asia by CLSA
OCTOBER
FCT achieved 9% growth in DPU
to 8.20 cents for FY2010
Unitholders approved the
acquisitions of Northpoint 2 &
YewTee Point at an Extraordinary
General Meeting
FCT completed the private
placement exercise of 137.0
million new units at an issue
price of S$1.33 per new unit. The
net proceeds of approximately
S$177.8 million was used to
part-fi nance the acquisitions of
Northpoint 2 & YewTee Point
FEBRUARY
FCT completed the acquisitions of
Northpoint 2 & YewTee Point
Dr Chew Tuan Chiong succeeded
Mr Christopher Tang as the CEO
of FCAM
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
07
2011
2012
2013
JULY
Causeway Point was re-
launched in conjunction with its
15th anniversary
AUGUST
FCT won the Best Investor
Relations Award (Bronze) in
the REITS & Business Trust
Category at the Singapore
Corporate awards 2013
organised by The Business
Times
OCTOBER
FCT achieved strong
performance for FY2013 with
full year DPU of 10.93 cents,
an increase of 9.2% over the
previous year. It was also the
seventh consecutive year of
DPU growth since FCT’s listing
JUNE
FCT was voted Best Mid-Cap
Company in Singapore by
FinanceAsia
Frasers Centrepoint Asset
Management, the Manager
for FCT, was a nominee in the
Category of Best Asian REIT
Manager in the REIW ASIA
2012 Awards for Excellence
OCTOBER
FCT achieved a strong fi nish in
FY2012 with multiple-highs in
revenue, net property income
and DPU. Full year DPU was at
record-high of 10.01 cents, an
increase of 20%. This is also the
sixth consecutive year of DPU
growth since FCT’s listing
FCT was ranked in the top
quartile among Singapore
companies in CLSA’s Corporate
Governance survey
DECEMBER
FCT was awarded the “Grand
prix for best overall investor
relations - mid/small cap” at the
IR Magazine Awards South East
Asia 2012
MAY
Causeway Point awarded the
GreenMark Platinum Award by
the Building and Construction
Authority of Singapore
JULY
FCT announced the proposed
acquisition of Bedok Point for
$127 million
Standard and Poor’s upgraded
FCT’s MTN program to “BBB+/
Stable” from “BBB/Stable”
SEPTEMBER
Unitholders approved the
proposed acquisition of Bedok
Point at an Extraordinary
General Meeting
FCT completed the private
placement of 48 million new
units at an issue price of S$1.39
per new unit. The placement
was 4.1 times oversubscribed
and the net proceeds of
approximately S$64.3 million
was used to part-fi nance the
acquisition of Bedok Point
FCT completed the acquisition
of the Bedok Point
OCTOBER
FCT achieved record
distribution per unit of 8.32
cents for FY2011
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
08
2014
2015
2016
APRIL
FCT announced the proposed
acquisition of Changi City Point
for S$305 million
FEBRUARY
Moody’s changed the outlook
of FCT’s Baa1 issuer rating to
‘Positive’ from ‘Stable’
MAY
FCT’s Causeway Point was
awarded the BCA Universal
Design GoldPlus Award for its
user-friendliness, connectivity
and safety features. Bedok
Point was awarded the BCA
GreenMark Gold award for its
energy effi cient, water-saving
and recycling features
OCTOBER
FCT achieved new-high DPU
of 11.608 cents for FY2015,
an increase of 3.8% over the
previous year. It was also the
ninth consecutive year of DPU
growth since FCT’s listing
MAY
Unitholders approved the
proposed acquisition of Changi
City Point at an Extraordinary
General Meeting
FCT launched a private
placement exercise and raised
S$161.5 million in gross
proceeds from the placement of
88 million New Units at an Issue
Price of S$1.835 per New Unit
JUNE
FCT completes the acquisition
of Changi City Point
OCTOBER
FCT achieved strong
performance for FY2014. Full
year revenue increased 16.1%
year-on-year and DPU rose
2.4% to 11.187 cents. It was
also the eighth consecutive
year of DPU growth since FCT’s
listing
FEBRUARY
FCT changed its Auditors from
Ernst & Young LLP to KPMG LLP
MARCH
FCT commenced AEI at
Northpoint to upgrade the
mall for sustainable growth
and to facilitate the integration
with the upcoming retail
component of Northpoint City
under construction by Frasers
Centrepoint Limited
MAY
FCT announced the
appointment of Independent
and Non-Executive Director, Dr
Cheong Choong Kong
SEPTEMBER
FCT wins prestigious
Transparency Award at the SIAS
Investors’ Choice Awards
OCTOBER
FCT achieved new-high DPU
of 11.764 cents for FY, its tenth
consecutive year of DPU growth
since its listing
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
09
10-YEAR PERFORMANCE AT A GLANCE
GROSS REVENUE
($ Million)
77.5
84.7
86.6
114.7
117.9
147.2
158.0
168.8
189.2
183.8
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
NET PROPERTY INCOME
($ Million)
51.7
56.6
59.9
80.1
82.6
104.4
111.6
118.1
131.0
129.9
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
DISTRIBUTION PER UNIT
($ cents)
6.55
7.29
7.51
8.20
8.32
10.01
10.93
11.187
11.608
11.764
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
NET ASSET VALUE PER UNIT
($)
1.16
1.23
1.22
1.29
1.40
1.53
1.77
1.85
1.91
1.93
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
10
10-YEAR FINANCIAL HIGHLIGHTS
Group
For the
Financial Year
ended
30 September
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Selected Income Statement and Distribution Data ($‘000)
Gross Rent
68,574
73,256
74,608 100,349 103,644 131,280 140,329 149,453 167,914 162,969
Other Revenue
8,925
11,408
12,016
14,389
14,240
15,923
17,630
19,301
21,328
20,847
Gross Revenue
77,499 84,664 86,624 114,738 117,884 147,203 157,959 168,754 189,242 183,816
Net Property
Income
Distributable
Income
51,723
56,566
59,861
80,050
82,618 104,430 111,590 118,096 131,043 129,852
40,353
45,244
46,940
59,177
64,375
82,348
90,131
95,442 106,412 108,101
Selected Balance Sheet Data ($ Million)
Total Assets
1,055.3 1,127.0 1,165.5 1,516.2 1,786.8 1,917.1 2,134.5 2,521.8 2,548.7 2,594.5
Total
Borrowings
Net Assets
Value of
Portfolio
Properties1
307.5
317.5
349.0
460.0
559.0
577.0
589.0
739.0
718.0
734.0
715.3
767.2
763.8
989.3 1,151.9 1,263.0 1,462.4 1,698.7 1,754.5 1,775.6
988.5 1,063.0 1,100.0 1,439.0 1,697.0 1,816.0 2,019.5 2,400.0 2,464.0 2,509.0
Key Financial Indicators
Distribution per
Unit (cents)
Net Asset Value
per Unit ($)2
Ratio of Total
Borrowings to
Total Assets
(Gearing)
Interest
Coverage
(Times)
6.55
7.29
7.51
8.20
8.32
10.01
10.93
11.187
11.608
11.764
1.16
1.23
1.22
1.29
1.40
1.53
1.77
1.85
1.91
1.93
29.1% 28.2% 29.9% 30.3% 31.3% 30.1% 27.6% 29.3% 28.2% 28.3%
4.10
4.43
4.57
4.31
4.62
5.56
6.15
6.20
6.61
7.33
1
FCT’s property portfolio in FY2016 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.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
11
LETTER TO UNITHOLDERS
DEAR UNITHOLDERS,
We are pleased to present Frasers Centrepoint Trust
(FCT)’s Annual Report and Sustainability Report for
fi nancial year ended 30 September 2016 (FY2016).
DELIVERING STABLE PERFORMANCE
IN A SLOW ECONOMY
STELLAR RECORD OF 10 CONSECUTIVE YEARS
OF DPU GROWTH, RECORD-HIGH DPU AND NAV
2016 is a milestone for FCT as it celebrates its tenth
year as a public listed entity on the Singapore Exchange
(SGX). FCT has maintained a stellar record of ten
consecutive years of Distribution per Unit (DPU) growth
at a compounded annual growth rate of almost 7%.
The DPU for FY2016 was a record-high of 11.764 cents.
Net Asset Value (NAV) per Unit is also at a new-high at
$1.93. Both FCT’s DPU and NAV per Unit have almost
doubled since its IPO. This translates to total return of
about 290%1, or equivalent to about 14% per annum,
for investors who hold the units and had reinvested
the DPU over the decade. Over the last 3- and 5-year
periods, FCT registered total returns of 42.4% and
101.4%1, respectively, both outperforming the FTSE
REIT Index. We take pride that the FCT has done well
in fulfi lling its mission in providing its unitholders with
regular and stable DPU, and to achieve long-term
growth in NAV.
Despite the slow economy and tough retail
environment, FCT delivered stable performance in
FY2016. Revenue for FY2016 was $183.8 million, 2.9%
lower compared with FY2015. The decline was mainly
attributed to lower contributions from Northpoint due
to the on-going asset enhancement initiative (AEI) at the
mall since March 2016, and the transitional vacancy at
Changi City Point. Net property income in FY2016 was
$129.9 million, just 0.9% lower year-on-year, helped by
lower property expenses incurred compared with the
previous year. Causeway Point (our largest mall) and
YewTee Point performed well to deliver 5.0% increase in
net property income each.
STRONG FINANCIAL POSITION, HIGHER
APPRAISED VALUE OF INVESTMENT PROPERTIES
FCT maintains strong fi nancial position with gearing
level at a healthy 28.3%, one of the lowest among
its S-REIT peers listed on the SGX. Its all-in cost of
borrowings remains low at 2.1% and the average debt
maturity stood at 2.7 years. We continue to adopt a
prudent capital management approach and maintain
our vigilance on the interest rate environment amidst
volatile conditions in the capital markets.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
12
1 Data from Bloomberg
LETTER TO UNITHOLDERS
FCT has maintained a stellar record of ten consecutive years
of Distribution per Unit (DPU) growth at a compounded
annual growth rate of almost 7%.
Four of our malls - Causeway Point, Northpoint, YewTee
Point and Anchorpoint, saw higher appraised valuations
from the independent property valuers while valuations
of Changi City Point and Bedok Point remained
unchanged. The aggregate value of the portfolio
properties was $2,509 million, which is $45 million or
1.8% higher than the $2,464 million as at 30 September
2015.
SOFTER OCCUPANCY BUT RENTAL REVERSIONS
AND SHOPPER TRAFFIC STAY HEALTHY
Portfolio occupancy as at 30 September 2016 stood
at 89.4%, compared with 96.0% in the previous year.
The lower occupancy was mainly due to the ongoing
AEI at Northpoint as well as the transitional vacancy at
Changi City Point. Northpoint occupancy dropped to
70.9% from 98.2% a year ago as the AEI progresses,
while occupancy at Changi City Point was 81.1%,
compared with 91.1% a year ago due to the change
in an anchor tenant space. The occupancy at Changi
City Point will improve when the anchor tenant (a
supermarket) commences trading in late-October 2016.
The occupancy at Northpoint is projected to average
around 71% between October 2016 and March 2017,
and improves thereafter as the AEI progresses towards
completion which is scheduled for September 2017.
FCT renewed 215,373 square feet of leased area in
FY2016, which represents approximately 20% of the
nett lettable area of its portfolio. These leases were
renewed at an average rental rate 9.9% higher than the
preceding leases. The 9.9% average rental reversion
rate in FY2016 is also at the highest in the last 4 years,
during which the average rental reversion ranged
between 6.3% and 7.7%. The healthy rental reversion
in FY2016 was driven mainly by the three larger malls,
Causeway Point, Northpoint and Changi City Point,
which achieved positive average rental reversion of
between 9.6% and 18.9%.
The shopper traffi c to FCT portfolio of malls in FY2016
was 102 million, up 4.9% year-on-year and crossing
100 million-mark for the fi rst time. Traffi c at Changi
City Point and YewTee Point saw double-digit jump in
traffi c year-on-year, as the former added new shuttle bus
service to draw offi ce crowd from within the business
park and the latter held more promotional events at the
mall. Northpoint continued to enjoy high shopper traffi c
of about 4 million per month and Causeway Point at
about 2 million a month. The two smaller malls Bedok
Point and Anchorpoint saw its shopper traffi c weakened
by 6.4% and 5.6%, respectively. Our mall management
team will continue to work on retaining and attracting
higher shopper traffi c to their malls through promotional
and festive events, in collaboration with retailers and
various communities and agencies.
TENANT’S SALES AND INTRODUCING
NEW RETAILERS IN OUR MALLS
On tenants’ sales performance, the overall portfolio
tenants’ sales for the 12-months ended September 2016
was 4.8% lower compared with the same period a year
ago. The overall tenants sales was affected mainly by
the ongoing AEI due to the resultant vacancy as well as
the changeover of anchor tenant space at Changi City
Point. Tenant sales at Causeway Point, which accounts
for about 50% of the portfolio tenant sales, was up by
0.5%. The occupancy cost, which is the ratio of the gross
rent and the tenant’s sales, inched up 40 basis points to
15.7% from 15.3% last year.
During the year, we introduced many new brands and
retailers into our malls. Some of the notable retailers
include Jollibee (fast food restaurant), Lian Peng Bak
Kut Teh (pork rib soup restaurant), St Marc (café), Kipling
(outlet store), Clarks (outlet store), NTUC Club and Four
Fingers (fast food restaurant). There is an observable
trend in the increase of Food & Beverage (F&B) vendors
at our malls, especially in the recent years, due to
increasing consumer demand, changes in demography
Over the last 3- and 5-year periods, FCT registered total
returns of 42.4% and 101.4%1
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
13
LETTER TO UNITHOLDERS
FCT was named the Runner-Up winner of the
Most Transparent Company Award (REITs &
Business Trusts Category) in the SIAS Investors’
Choice Awards 2016 for its outstanding efforts in
Disclosure and Transparency standards
SUSTAINABILITY REPORTING
Sustainability continues to be an important aspect of
FCT’s long-term business strategy. Our sustainable
report, which forms part of the Annual Report,
demonstrates how we support sustainability in
our business activities, our sector and the local
communities. Our sustainability approach is aligned with
that of Frasers Centrepoint Group. Frasers Centrepoint
Limited became a signatory to the United Nations
Global Compact (UNGC), joining more than 8,000
companies and 4,000 non-businesses in a innovative
and collaborative worldwide movement to shape a
sustainable future for the global business community,
through promoting responsible business practices that
will benefi t both the businesses and the society. FCT
as part of the Frasers Centrepoint Group, is committed
in supporting the sustainability efforts and initiatives
spearheaded by the group.
ACCOLADE FOR DISCLOSURE
AND TRANSPARENCY, FOSTERING
GOOD INVESTOR RELATIONS
FCT was named the Runner-Up winner of the Most
Transparent Company Award (REITs & Business Trusts
Category) in the SIAS Investors’ Choice Awards 2016 for
its outstanding efforts in Disclosure and Transparency
standards. This is an endorsement of our efforts in
improving the quality of disclosures and corporate
transparency of FCT. We place great emphasis in
providing timely and accurate information to enable
investors to make informed decisions. We will continue
to work hard at this.
and lifestyle shifts. We remain ready to respond to
these shifts as we curate our tenant-mix for each mall
accordingly.
AEI AND ACQUISITION STRATEGIES TO
REMAIN KEY GROWTH DRIVERS FOR FCT
Singapore’s economic growth is likely to remain tepid
in the near-term. The Monetary Authority of Singapore
said the country’s GDP is not expected to pick up
signifi cantly in 2017. It is not surprising that outlook
for Singapore retail industry remains sluggish, as it
continues to grapple with other headwinds such as
manpower shortage as well as challenges from online-
shopping and weak tourist spending.
Going forward, we will continue to focus on optimising
the performance and returns of FCT’s malls, ensuring
that they remain relevant to our shoppers and tenants.
AEI and acquisition strategies will remain the key growth
drivers for FCT, while active lease management and
maintaining healthy occupancy and rental reversion are
crucial in sustaining our organic growth momentum.
Prospects for acquisition include existing and future
malls in the sponsor’s portfolio, as well as other
opportunities arising within Singapore and overseas.
Progress of asset enhancement works at Northpoint is
on schedule. Phase 1 of the AEI is expected to complete
in January 2017, and we will commence Phase 2 right
after Chinese New Year in February 2017. Completion
is scheduled for September 2017. While the works have
been phased to minimise income disruption, the rental
revenue of Northpoint and FCT will be impacted. The
AEI at Northpoint will enhance shopper experience and
comfort, boosting the diversity of retail offerings, and
to position the mall to benefi t from the integration with
the upcoming retail component of Northpoint City by
our sponsor, Frasers Centrepoint Limited. We expect
the AEI to deliver positive return on investment upon its
completion and more importantly, to bring about long-
term benefi ts for FCT and its unitholders.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
14
LETTER TO UNITHOLDERS
We devote appreciable amount of management time
and resources to engage the investment community
globally. During the year, our management met with
289 institutional investors, a 5% increase compared
with 275 investors in FY2015. This is achieved through
one-on-one meetings, non-deal road shows, post-results
luncheon and participation in investor conferences,
both locally and overseas. We will continue to diversify
our unitholder base in the region and globally. The
investors generally view FCT favourably because of its
established track record in distribution growth, stability,
good growth prospects, attractive total return, good
corporate governance and transparent management.
We continue to enjoy a strong base of research
coverage. There are currently 18 equity research houses
covering FCT, of which 14 of them hold positive views
(overweight/outperform or buy) on the stock.
ACKNOWLEDGEMENTS
Mr Lim Ee Seng and Mr Chia Khong Shoong have
both stepped down from the board on 30 September
2016. Ee Seng served more than 10 years on the
board, his resignation from the board is in line with his
retirement as Group Chief Executive Offi cer of Frasers
Centrepoint Limited. Khong Shoong served more than
7 years on the board and his resignation was in line
with the rebalancing of duties and responsibilities in
connection with his new appointments at the Frasers
Centrepoint Limited Group. We would like to express
our appreciations to them for their contributions to the
Board and FCT and we wish them well in their future
endeavours.
We would like to welcome Dr Cheong Choong Kong,
who joined the board as Lead Independent Director on
18 May 2016. Dr Cheong also serves as member of the
Audit Committee and the Nominating & Remuneration
Committee. Dr Cheong brings many years of broad
corporate experience, including in fi nance and banking,
which will be invaluable as FCT continues to grow.
In closing, we thank our fellow board members for their
stewardship in guiding FCT forward. We would also like
to thank the management and staff for their dedication
and relentless hard work. Finally, we express our
gratitude to our unitholders, business partners, tenants
and shoppers for their continued support.
MR PHILIP ENG
Chairman
DR CHEW TUAN CHIONG
Chief Executive Offi cer
22 December 2016
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
15
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
16
A DECADE OF
CONSISTENT PERFORMANCE
FCT delivered consistent performance and stable returns
to its unitholders over the past decade. FCT’s portfolio
of high quality and well-located retail assets continue to
perform well and stay resilient through economic cycles.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
17
FINANCIAL YEAR 2016 IN BRIEF
FCT achieved new-high
DPU of 11.764 cents
for FY2016, its tenth
consecutive year of DPU
growth since its listing.
FCT posts steady DPU of
3.04 cents for 3Q16.
Renewal of Appointment of
Property Manager.
Issue of S$50 million 2.76%
Notes due 2021 pursuant
to S$1 billion Multicurrency
MTN programme.
OCTOBER
SEPTEMBER
JULY
MAY
FCT’s 2Q16 DPU up
2.6% to 3.039 cents.
APRIL
FCT wins prestigious
Transparency Award at
the SIAS Investors’ Choice
Awards 2016.
Announcement on
Appointment of
Independent and Non-
Executive Director, Dr
Cheong Choong Kong.
MARCH
FCT commences the AEI at
Northpoint
Change of Auditors
from Ernst & Young LLP
to KPMG LLP.
FEBRUARY
JANUARY
Results of Annual General
Meeting held on
21 January 2016.
FCT’s 1Q16 DPU up
4.4% to 2.87 cents.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
18
INVESTOR RELATIONS
OPEN AND TRANSPARENT COMMUNICATIONS
Frasers Centrepoint Asset Management Ltd (“FCAM”),
as Manager of Frasers Centrepoint Trust (“FCT”),
is committed to maintaining open and transparent
communications with its unitholders and the investment
community. FCAM provides factual and timely
disclosure on all material information concerning FCT.
General information on FCT including annual reports,
portfolio information and investor presentations are
updated regularly on FCT’s website. All news releases
and company announcements are also available on the
SGX-ST website.
ANNUAL GENERAL MEETING (AGM)
The AGM and EGM are important channels for
communication between the board of directors, the
management of FCAM and the unitholders of FCT. FCT
convened its 7th AGM on 21 January 2016. The voting
for all resolutions at the AGM were conducted via
electronic polls. All resolutions tabled at the AGM were
duly passed and the results of the polls were announced
on the SGX and FCT websites on the same day of the
events.
ACCOLADE – FOR OUTSTANDING EFFORTS IN
DISCLOSURE AND TRANSPARENCY STANDARDS
FCT was named the Runner Up of the Most Transparent
Company Award (REITs & Business Trusts Category)
in the Securities Investors Association (Singapore)
Investors’ Choice Awards 2016. FCT was commended
for its outstanding efforts in its disclosure and
transparency standards.
Dr Chew Tuan Chiong (right) receiving the award from Mr Robson Lee,
Gibson, Dunn & Crutcher LLP and Mr Loh Uantchern, CEO, Asia Pacifi c,
Black Sun
Dr Chew Tuan Chiong (left, in jacket) fi elding questions from analysts
and the media at the 4Q16 Results Briefi ng on 21 October 2016
ACTIVE ENGAGEMENT WITH INSTITUTIONAL
AND RETAIL INVESTORS
The senior management of FCAM meets regularly
with FCT’s investors and analysts at conferences (both
overseas and local), one-on-one meetings, quarterly
post-results luncheons and non-deal roadshows to
apprise them of FCT’s corporate developments and
fi nancial performance. During the year under review,
FCT participated in overseas non-deal investor
roadshows to Europe, Japan, South Korea, Hong Kong
and Malaysia as well as investor conferences hosted by
major fi nancial institutions. Investor Conferences and
non-deal roadshows. During FY2016, the management
of FCAM participated in the following events:
Singapore
• DBS Pulse of Asia Conference
• Phillip Capital Regional Day
• KGI Retail Investor Day
• Citi ASEAN Investor Conference 2016
• Macquarie ASEAN Conference 2016
Overseas
• DBS Debt Investor Tokyo NDR, Japan
• Nomura Tokyo Real Estate Conference Day, Tokyo,
Japan
• DBS Bangkok Non-Deal Roadshow, Bangkok,
Thailand
• HSBC Europe Non-Deal Roadshow, London, UK and
Netherlands
• Citi Asia Pacifi c Property Conference, Hong Kong
• DBS Seoul Non-Deal Roadshow, Seoul, South Korea
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
19
INVESTOR RELATIONS
The management met or spoke with 289 institutional
investors in FY2016, a 5% increase compared with 275
investors in FY2015. The investors generally view FCT
favourably because of its established track record in
distribution growth, stability, good growth prospects,
attractive total return, good corporate governance and
transparent management.
14. Phillip Research
15. Religãre Institutional Research
16. RHB
17. UBS
18. UOB Kay Hian Research
ENQUIRIES
As at 25 November 2016, 50.08% of the total FCT
issued units were held by institutional investors,
41.55% were held by the Sponsor group (comprising
Frasers Centrepoint Limited and FCAM) and 8.37%
were held by individual investors. There were 6,084
CDP-registered unitholders of FCT and an additional
844 investors who held their units under their CPF-
Investment accounts.
COVERAGE BY EQUITY RESEARCH HOUSES
During the year under review, there were 18 equity
research fi rms (FY2015: 18) which provided equity
research coverage on FCT.
The research fi rms which cover FCT (in alphabetical
order) are:
For general enquiries on FCT, please contact:
Mr Chen Fung Leng
Head, Investor Relations & Research
Frasers Centrepoint Asset Management Ltd
Tel
Email
: (65) 6277-2657
: ir@fraserscentrepointtrust.com
UNIT REGISTRAR
Boardroom Corporate & Advisory Services Pte Ltd
Phone
Fax
Website : www.boardroomlimited.com
: (65) 6536-5355
: (65) 6536-1360
1. Bank of America-Merrill Lynch
2. BNP Paribas
3. CIMB Research
4. Citi Investment Research
5. CLSA
6. Credit Suisse
7. Daiwa Capital Markets
8. DBS Vickers Securities
9. HSBC
10. J.P. Morgan
11. KGI Fraser Securities
12. Maybank Kim Eng Research
13. OCBC Investment Research
FY2017 FINANCIAL CALENDAR#
20 January 2017
20 January 2017
Annual General Meeting
1Q FY2017 Results Announcement
End February 2017
1Q FY2017 Distribution Payment
24 April 2017
End May 2017
24 July 2017
End August 2017
23 October 2017
2Q FY2017 Results Announcement
2Q FY2017 Distribution Payment
3Q FY2017 Results Announcement
3Q FY2017 Distribution Payment
4Q FY2017 Results Announcement
End November 2017
4Q FY2017 Distribution Payment
# Note: Dates are indicative and are subject to change
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
20
FCT UNIT PRICE PERFORMANCE
PERFORMANCE OF THE FCT UNIT PRICE
FOR FY2015
FCT unit price closed at $2.20 on 30 September
2016, this is 15.5% higher than the last done price
on 30 September 2015, the last day of the preceding
period. During this period, despite the volatilities in the
global capital markets arising from uncertainties in the
global economy, risk of interest rates hike, BREXIT and
geopolitical tensions, among other factors, FCT units
registered a total return of 22.4%, outperforming the
19.1% total return from the FTSE REIT index. Over the
longer 3-year and 5-year periods, FCT units registered
total returns of 42.4% and 101.4%, respectively.
TRADING PERFORMANCE HIGHLIGHTS
(1 October 2015 – 30 September 2016)
• Opening price on 1 October 2015
• Closing price on 30 September 2016
• Highest closing price
• Lowest closing price
• Average daily trading volume
• Total volume traded
: $1.905
: $2.20
: $2.21 on 24 August 2016
: $1.80 on 14 December 2015
: 949,830 units
: 239.4 million units
FCT UNIT PRICE PERFORMANCE IN FY2016
(Base = 100 on 30 September 2015)
120%
115%
110%
105%
100%
95%
90%
FCT
115.5%
FSTREI
111.1%
30 Sep 15 30 Oct 15 30 Nov 15 30 Dec 15 30 Jan 16 29 Feb 16 31 Mar 16 30 Apr 16 31 May 16 30 Jun 16 31 Jul 16 31 Aug 16 30 Sep 16
PERFORMANCE OF FCT COMPARED WITH THE FTSE REIT INDEX
1 Year
(30/9/2015 - 30/9/2016)
3 Years
(30/9/2013 - 30/9/2016)
5 Years
(30/9/2011 - 30/9/2016)
Price
Change
15.49%
11.13%
Total
Return
22.45%
19.09%
Price
Change
19.24%
5.42%
Total
Return
42.4%
27.39%
Price
Change
52.78%
29.41%
Total
Return
101.45%
77.00%
Frasers Centrepoint Trust
FTSE REIT Index
Note: Calculation of the price change is based on the closing price on the last day of the preceding reporting period compared with the closing
price on the last day of the next period. Calculation of the total return assumed the distributions paid during the period are reinvested.
Source: Bloomberg
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
21
BOARD OF DIRECTORS
MR PHILIP ENG HENG NEE, 70
Chairman, Non-Executive and Non-Independent Director
DR CHEW TUAN CHIONG, 58
Executive and Non-Independent Director
Date of appointment as Director
Length of service as Director
(as at 30 September 2016)
:
:
3 April 2006
10 years and 6 months
Board committee served on
• Audit Committee (Member)
• Nominating and Remuneration Committee (Member)
Date of appointment as Director
Length of service as Director
(as at 30 September 2016)
Board committee served on
Nil
:
:
14 July 2010
6 years and 2 months
Academic & Professional Qualifi cations
• Bachelor of Commerce in Accountancy, University of New
South Wales
• Associate Member, Institute of Chartered Accountants in
Australia
Present Directorships (as at 30 September 2016)
Listed companies
• Ezra Holdings Limited
• Frasers Centrepoint Limited (Chairman of Remuneration
Committee and Member of Audit Committee)
• mDR Limited (Non-Executive Chairman)
• PT Adira Dinamika Multi Finance, Tbk (Commissioner)
• The Hour Glass Limited
Academic & Professional Qualifi cations
• Bachelor of Engineering (First Class Honours), Monash
University
• Master of Engineering, National University of Singapore
• Doctor of Philosophy, University of Cambridge
• Chartered Engineer, The Engineering Council UK
• Fellow, The Institution of Engineers Singapore
• Fellow, Academy of Engineering Singapore
Present Directorships (as at 30 September 2016)
Listed companies
Nil
Listed REITs/Trusts
• Hektar Asset Management Sdn Bhd, Manager of Hektar
Real Estate Investment Trust
Listed REITs/Trusts
• Hektar Asset Management Sdn Bhd, Manager of Hektar
Real Estate Investment Trust
Others
• CityNet Infrastructure Management Pte Ltd
Others
• Frasers Property Australia Pty Limited
• Heliconia Capital Management Private Limited
• KK Women’s and Children’s Hospital Pte Ltd
• NTUC Income Insurance Cooperative Limited
• Singapore Health Services Pte Ltd
• Vanda 1 Investments Pte Ltd
Major appointments (other than Directorships)
• Singapore’s Non-Resident High Commissioner to Canada
Past Directorships in listed companies held over
the preceding 3 years (from 1 October 2013 to
30 September 2016)
• Asia Pacifi c Breweries Limited
• Fraser and Neave, Limited
• Hup Soon Global Corporation Limited
Others
• Mr Eng was previously the Group Managing Director,
Jardine Cycle & Carriage Group
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
22
Major appointments (other than Directorships)
• Chief Executive Offi cer, Frasers Centrepoint Asset
Management Ltd
Past Directorships in listed companies held over
the preceding 3 years (from 1 October 2013 to
30 September 2016)
Nil
Others
• Dr Chew was Chief Executive of the Science Centre
Singapore (1995 – 2010)
• Public Administration Medal (Silver) (Singapore)
• Sugden Award by the Combustion Institute (UK)
• IPS Cadi Scientifi c Medal by the Institute of Physics
Singapore
• President’s Award by Asia Pacifi c Association of Science
& Technology Centres
BOARD OF DIRECTORS
MR CHIA KHONG SHOONG, 45
Non-Executive and Non-Independent Director
MR BOBBY CHIN YOKE CHOONG, 65
Non-Executive and Independent Director
Date of appointment as Director
Length of service as Director
(as at 30 September 2016)
Board committee served on
Nil
:
:
1 September 2009
7 years and 1 month1
Date of appointment as Director
Length of service as Director
(as at 30 September 2016)
:
:
3 April 2006
10 years and 6 months
Board committee served on
• Audit Committee (Chairman)
• Nominating and Remuneration Committee (Member)
Academic & Professional Qualifi cations
• Bachelor of Commerce (Accounting and Finance) (First
Class Honours), University of Western Australia
• Master of Philosophy (Management Studies), Cambridge
University
Academic & Professional Qualifi cations
• Bachelor of Accountancy, University of Singapore
• Associate member, Institute of Chartered Accountants in
England and Wales
Present Directorships (as at 30 September 2016)
Listed companies
Nil
Listed REITs/Trusts
• Frasers Centrepoint Asset Management (Commercial)
Limited, Manager of Frasers Commercial Trust
Present Directorships (as at 30 September 2016)
Listed companies
• AV Jennings Limited
• Ho Bee Land Limited
• Sembcorp Industries Limited
• Singapore Telecommunications Limited
• Yeo Hiap Seng Limited
Others
Nil
Major appointments (other than Directorships)
• Chief Corporate Offi cer and Chief Financial Offi cer,
Frasers Centrepoint Limited
Past Directorships in listed companies held over
the preceding 3 years (from 1 October 2013 to
30 September 2016)
Nil
Others
Mr Chia’s previous work experience include:
• Chief Executive Offi cer, Australia, New Zealand and UK,
Frasers Centrepoint Limited
• Director, Investment Banking and Global Banking, The
Hongkong & Shanghai Banking Corporation Ltd
• Vice President, Global Investment Banking, Citigroup /
Salomon Smith Barney / Schroders
Others
• Housing & Development Board (Deputy Chairman)2
• NTUC Enterprise Co-operative Limited (Deputy
Chairman)
• NTUC Fairprice Co-operative Limited (Chairman)
• Singapore Labour Foundation
• Temasek Holdings (Private) Limited
Major appointments (other than Directorships)
• Council of Presidential Advisers (Member)
Past Directorships in listed companies held over
the preceding 3 years (from 1 October 2013 to
30 September 2016)
• Oversea-Chinese Banking Corporation Limited
Others
• Mr Chin was the Managing Partner of KPMG Singapore
from 1992 until his retirement in 2005. He was the
Chairman of the Urban Redevelopment Authority from
2001 to 2006, and prior to that, served as its board
member from 1997 to 2001. He also served as the
Chairman of the Singapore Totalisator Board from 2006
to 2012. Mr Chin chaired the MediShield Life Review
Committee in 2013
1 Mr Chia Khong Shoong resigned from the Board on 1 October 2016 as part of the rebalancing of his duties and responsibilities in connection
with his new appointments at the Frasers Centrepoint Limited Group.
2 Mr Bobby Chin assumed the position of Chairman Housing & Development Board on 1 October 2016 after serving as the Deputy Chairman from
1 October 2015 to 30 September 2016.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
23
BOARD OF DIRECTORS
MR LIM EE SENG, BBM, 65
Non-Executive and Non-Independent Director
MR SOH KIM SOON, 70
Non-Executive and Independent Director
:
:
27 January 2006
10 years and 8 months2
Date of appointment as Director
Length of service as Director
(as at 30 September 2016)
:
:
23 March 2006
10 years and 6 months
Date of appointment as Director
Length of service as Director
(as at 30 September 2016)
Board committee served on
Nil
Academic & Professional Qualifi cations
• Bachelor of Engineering (Civil Engineering), University of
Singapore
• Master of Science (Project Management), National
University of Singapore
• Fellow, Singapore Institute of Directors
• Member, The Institution of Engineers Singapore
Present Directorships (as at 30 September 2016)
Listed companies
Nil
Listed REITs/Trusts
• Frasers Centrepoint Asset Management (Commercial)
Limited, Manager of Frasers Commercial Trust
• Frasers Hospitality Asset Management Pte Ltd, Manager
of Frasers Hospitality Real Estate Investment Trust
• Frasers Hospitality Trust Management Pte Ltd, Trustee-
Manager of Frasers Hospitality Business Trust
• Frasers Logistics & Industrial Asset Management Pte Ltd,
Manager of Frasers Logistics & Industrial Trust
Others
• Frasers Property Australia Pty Limited
• Vacaron Company Sdn Bhd
Board committee served on
• Nominating and Remuneration Committee (Chairman)
• Audit Committee (Member)
Academic & Professional Qualifi cations
• Bachelor of Arts (Honours), University of Singapore
• Associate, Chartered Institute of Bankers
Present Directorships (as at 30 September 2016)
Listed companies
• EnGro Corporation Limited
Others
• ORIX Investment and Management Private Limited
• ORIX Leasing Singapore Limited
Major appointments (other than Directorships)
• Chairman of ORIX Investment and Management Private
Limited
Past Directorships in listed companies held over
the preceding 3 years (from 1 October 2013 to
30 September 2016)
Nil
Major appointments (other than Directorships)
• Group Chief Executive Offi cer, Frasers Centrepoint
Others
• Mr Soh was previously Senior Managing Director of DBS
Limited
Bank
• 2nd Vice-President, Real Estate Development Association
of Singapore
Past Directorships in listed companies held over
the preceding 3 years (from 1 October 2013 to
30 September 2016)
• Gemdale Properties and Investment Corporation Limited
Others
• Awarded Public Service Star (BBM)
• Former Board member of the Building and Construction
Authority of Singapore
• Former Council member of the Singapore Chinese
Chamber of Commerce and Industry
• Previously Managing Director of MCL Land Limited
• Previously General Manager (Property Division), First
Capital Corporation Ltd.
• Previously Project Manager, Singapore Land Limited
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
24
2 Mr Lim Ee Seng resigned from the Board on 1 October 2016 in line with his retirement as the Group Chief Executive Offi cer of Frasers
Centrepoint Limited on 1 October 2016.
BOARD OF DIRECTORS
MR CHRISTOPHER TANG KOK KAI, 55
Non-Executive and Non-Independent Director
DR CHEONG CHOONG KONG, 75
Non-Executive and Lead Independent Director
Date of appointment as Director
Length of service as Director
(as at 30 September 2016)
:
:
27 January 2006
10 years and 8 months
Date of appointment as Director
Length of service as Director
(as at 30 September 2016)
:
:
18 May 2016
4 months
Board committee served on
• Nominating and Remuneration Committee (Member)
Board committee served on
• Audit Committee (Member)
• Nominating and Remuneration Committee (Member)
Academic & Professional Qualifi cations
• Bachelor of Science, National University of Singapore
• Master of Business Administration, National University of
Academic & Professional Qualifi cations
• Bachelor of Science (First Class Honours), Adelaide
Singapore
University
Present Directorships (as at 30 September 2016)
Listed companies
Nil
Listed REITs/Trusts
• Frasers Centrepoint Asset Management (Commercial)
Limited, Manager of Frasers Commercial Trust
• Hektar Asset Management Sdn Bhd, Manager of Hektar
Real Estate Investment Trust
• Master of Science, Australian National University
• Doctor of Philosophy, Australian National University
• Doctor of Science (Honorary), Australian National
University
• Degree of Doctor of the University (Honorary), Adelaide
University
Present Directorships (as at 30 September 2016)
Listed companies
Nil
Others
• Republic Polytechnic (Member of the Board of
Listed REITs/Trusts
Nil
Governors)
Major appointments (other than Directorships)
• Chief Executive Offi cer, Singapore - Frasers Centrepoint
Limited
• Chief Executive Offi cer, China - Frasers Centrepoint
Limited
Past Directorships in listed companies held over
the preceding 3 years (from 1 October 2013 to
30 September 2016)
Nil
Others
• Previously Chief Executive Offi cer of Frasers Centrepoint
Asset Management Ltd., the Manager of Frasers
Centrepoint Trust. He had previously worked with DBS
Bank, DBS Land and British Petroleum.
Others
Nil
Major appointments (other than Directorships)
Nil
Past Directorships in listed companies held over
the preceding 3 years (from 1 October 2013 to
30 September 2016)
• Great Eastern Holdings Limited
• Overseas-Chinese Banking Corporation Limited
• The Overseas Assurance Corporation Limited
• OCBC Wing Hang Bank Ltd
• OCBC Management Services Private Limited
Others
• Dr Cheong was Chairman, Oversea-Chinese Banking
Corporation (July 2003 - August 2014). He was formerly
the CEO of Singapore Airlines Ltd until June 2003
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
25
TRUST MANAGEMENT TEAM
DR CHEW TUAN CHIONG
Chief Executive Offi cer & Executive
Director
MR ALEX CHIA
Head, Investment
Please refer to Dr Chew’s biography
in the section on ‘Board of
Directors’
MS LIM POH TIN
General Manager and Head, Asset
Management
Poh Tin’s responsibilities include
formulating business and asset
enhancement plans in relation to
FCT’s properties with short, medium
and long-term objectives. This
involves working together with the
Property Manager to ensure that
the property business plans are
executed diligently.
Poh Tin has more than 25 years of
experience in real estate asset and
property management. She holds
Diplomas in Building Maintenance
and Management from Ngee Ann
Technical College and Management
Studies from Singapore Institute
of Management. She obtained
her Bachelor of Science (Honours)
degree in Real Estate Management
from Oxford Brookes University.
Alex leads the investment team that
is responsible for the expansion
of FCT’s asset portfolio with the
objective of ensuring optimum
investment returns.
Alex has over 8 years of business
development experience in serviced
residence industry covering the Pan
Asia market. He also has more than
5 years of retail experience in areas
of operations and project planning.
Alex holds a Bachelor Degree
in Business Administration from
National University of Singapore
and an MBA from University of Hull,
United Kingdom.
MS TAY HWEE PIO
Financial Controller
Hwee Pio is responsible for the
fi nancial, taxation, treasury and
compliance functions of Frasers
Centrepoint Trust. She has over
20 years of fi nancial experience
in the real estate industry. Prior to
joining FCT, Hwee Pio was based
in Shanghai for 10 years, of which
she was the fi nancial controller
for Frasers Centrepoint Limited’s
business operations in China since
year 2006. Before joining Frasers
Centrepoint Limited, Hwee Pio held
fi nancial positions at Keppel Land
and Guocoland. She started her
career as an external auditor with
KPMG.
Hwee Pio is a Singapore Chartered
Accountant (CA) with the Institute of
Singapore Chartered Accountants
and she is a Fellow with the
Association of Chartered Certifi ed
Accountants.
MR CHEN FUNG LENG
Head, Investor Relations and
Research
Fung Leng is responsible for FCT’s
investor relations function, he
covers investor targeting, media
and unitholder communication,
as well as to provide market
intelligence and research support
to management. Fung Leng holds
a Master of Science degree in
Industrial and Systems Engineering
and a Bachelor’s degree in
Mechanical Engineering (Honours),
both degrees from the National
University of Singapore.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
26
From left: Mr Alex Chia, Ms Lim Poh Tin, Dr Chew Tuan Chiong, Ms Tay Hwee Pio, Mr Chen Fung Leng
PROPERTY MANAGEMENT TEAM
MS JILL NG
Head, Advertising & Promotions
MS SEE SAN SAN
Head, Leasing
Jill has 14 years of experience
in sales and marketing in the
fi eld of information technology,
event management and mall
management. Prior to joining
Frasers Centrepoint, she was part
of the development marketing
team for a greenfi eld retail mall.
She also led the Marketing
Communications team at
Singapore’s largest suburban mall,
where she spearheaded branding,
loyalty, service excellence and
promotions. Jill has a Degree
in Business Administration from
Macquarie University and a Diploma
in Hospitality Management from
Temasek Polytechnic.
San San heads the leasing function
across ten malls in the FCL Group
and she has more than 25 years of
work experience. Prior to this, San
San was Assistant General Manager
of Marina Centre Holdings (MCH)
where she was responsible for
marketing/leasing the shopping
mall, leisure-plex and offi ce block
at Marina Square, Singapore’s third
largest shopping mall.
Prior to joining MCH, San San
gained extensive marketing and
management experience in the
retail, industrial and residential
sector working for Jones Lang
Wootton, Colliers Jardine, and
Colliers Goh & Tan. San San
holds a Bachelor Degree in Estate
Management from the National
University of Singapore and a
graduate diploma in marketing from
the Marketing Institute of Singapore.
She is also a Member of Singapore
Institute of Surveyors and Valuers.
MS MOLLY LIM
Assistant General Manager, Retail
Properties
Molly oversees the operations and
business processes of 3 malls in the
FCT portfolio. She has 26 years in
retail property management and
commercial leasing. Prior to this,
she was overseeing Causeway Point
for 18 years including the asset
enhancement works which was
completed in 2012. Being part of
the pioneer centre management
team for Causeway Point, she
was instrumental in establishing
the administrative framework and
standard operational procedures for
the mall.
Her responsibilities include the
operations and management of
the mall, tenancy and leasing
management, customer service,
and the implementation of retail
policies and initiatives of the Frasers
Centrepoint Group.
Molly graduated from the National
University of Singapore with
a Bachelor of Social Sciences
(Honours) degree majoring in
Economics. She also holds a
Graduate Diploma in Business
Administration from the Singapore
Institute of Management.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
27
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
28
ACHIEVING SUSTAINABLE GROWTH
Going forward, FCT will continue to grow from strength to strength.
We will leverage on our expertise and people to improve the
performance of FCT’s retail asset portfolio and to achieve growth
through combination of asset acquisitions, asset enhancement
initiatives and organic growth strategies in a sustainable way.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
29
OPERATIONS & FINANCIAL REVIEW
LEASE RENEWALS
A total of 153 leases were renewed in FY2016 (FY2015: 255). These leases accounted for 215,373 square feet or
19.9% of FCT’s total net lettable area (the ‘‘NLA”). The average rental reversion of these renewals was 9.9% (FY2015:
6.3%). Rental reversion refers to the variance between the average rental rate of the renewed leases and the
preceding expired leases which were contracted typically 3 years ago. All malls, with the exception of Bedok Point,
recorded positive rental reversions of between 3.6% and 18.9% for the year.
SUMMARY OF LEASES RENEWED IN FY2016
(Excluding newly-created and reconfi gured area)
Property
Number of leases
renewed
Aggregate area of
renewed leases
(square feet)
Renewed area
as percentage of
property’s NLA
Causeway Point
Northpoint
Changi City Point
Bedok Point
YewTee Point
Anchorpoint
FCT Portfolio
LEASE EXPIRY PROFILE
56
17
36
8
19
17
153
103,862
16,534
54,941
8,474
13,519
18,043
215,373
25.0%
7.1%
26.5%
10.2%
18.4%
25.4%
19.9%
Increase / (Decrease)
in average rental
rates of renewed
leases compared
with rental rates of
preceding leases
9.6%
18.9%
15.4%
(30.0%)
5.5%
3.6%
9.9%
The portfolio lease expiry from FY2017 to FY2021 and the lease expiry by property in FY2017 are presented in
tables below. Our leases have an average lease duration of 3 years. Certain key or anchor tenants may be offered
longer tenures, depending on the lease structure. The leases due in the next two years in FY2017 and FY2018
account for 39.6% and 32.1% of FCT’s Gross Rental Income (the “GRI”), respectively. As at 30 September 2016, the
weighted average lease expiry of FCT portfolio stood at 1.38 years by NLA and 1.36 years by GRI. The weighted
average lease expiry of the new leases, based on the date of commencement of the leases, was 2.19 years. The
leases accounted for 30.45% of the total leases by gross rental income. The aggregate NLA of the leases in FCT
portfolio due for renewal in FY2017 is 380,170 square feet and substantial portion of it (283,604 square feet) is
attributed to Causeway Point, Changi City Point and Northpoint.
PORTFOLIO LEASE EXPIRY AS AT 30 SEPTEMBER 2016
FY2017
FY2018
FY2019
FY2020
FY2021
259
249
132
13
2
Total
655
380,170
299,448
230,314
41,818
17,530
969,280
39.2%
30.9%
23.8%
4.3%
1.8%
100.0%
39.6%
32.1%
24.7%
2.8%
0.8%
100.0%
Number of leases
expiring
Total NLA of expiring
leases
(square feet)
NLA of expiring
leases as % of the
portfolio’s NLA
GRI of expiring
leases as % of the
portfolio’s GRI
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
30
OPERATIONS & FINANCIAL REVIEW
LEASE EXPIRY FOR FY2017 AS AT 30 SEPTEMBER 2016
Property
Causeway Point
Northpoint
Changi City Point
Bedok Point
YewTee Point
Anchorpoint
Total FCT
Number of Leases
Expiring
Area of expiring
leases
(square feet)
Area of expiring
leases as % of the
mall’s leased area1
GRI of expiring
leases as % of the
mall’s GRI2
89
55
32
29
27
27
259
161,501
63,462
58,641
43,115
26,382
27,069
380,170
38.9%
38.2%
34.9%
54.9%
36.3%
39.4%
39.2%3
40.3%
38.5%
31.0%
60.3%
35.3%
46.0%
39.6%4
1 As percentage of mall’s total leased area, excluding vacancy, as at 30 September 2016
2 As percentage of mall’s actual gross rent income for the month of September 2016, excluding gross turnover rent
3 As percentage of leased area of FCT portfolio, excluding vacancy, as at 30 September 2016
4 As percentage of actual gross rent income of FCT portfolio for the month of September 2016, excluding gross turnover rent
PORTFOLIO TENANTS’ SALES AND OCCUPANCY COST
On a portfolio basis, FCT’s aggregate tenants’ sales declined 4.8% year-on-year in FY2016. The portfolio tenants’
sales in FY2016 was affected by several factors which include the commencement of the asset enhancement works
at Northpoint in March 2016 as well as the tenant remixing efforts at Changi City Point and Bedok Point. Tenant
sales at Causeway Point grew 0.5% year-on-year while the remaining fi ve malls saw softer tenant sales compared
with the previous year.
The average occupancy cost for FCT portfolio for the 12-month period between October 2015 and September 2016
was 15.7%, compared with 15.3% registered in FY2015. Occupancy cost refers to the ratio of gross rental paid by
the tenants to the tenant’s sales turnover (excluding Goods & Services Tax).
LEASES WITH GROSS TURNOVER RENT AND STEP-UP CLAUSES
Nearly all our leases include step-up clauses that provide for annual rental increment of between 1% and 2% during
the lease term. In addition, 95% of the occupied leases include Gross Turnover rent (the “GTO”) clauses, which the
tenants would pay between 0.5% and 1% of their sales as part of the gross rent under the lease agreements. The
aggregate GTO as a percentage of FCT’s gross revenue was approximately 5% for the year under review, which is
relatively stable compared with FY2015.
PERCENTAGE OF OCCUPIED LEASES WITH GTO AND STEP-UP CLAUSES
With GTO clause
With step-up clause
FY2016
94.2%
99.2%
FY2015
94.8%
99.3%
Increase/(Decrease)
(0.6%-point)
(0.1%-point)
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
31
OPERATIONS & FINANCIAL REVIEW
PORTFOLIO OCCUPANCY
The average portfolio occupancy stood at 89.4% as at 30 September 2016, this is 6.6%-point lower than a year ago.
The decline in portfolio occupancy is attributed to the on-going asset enhancement works at Northpoint (expected
completion is September 2017) and the transitional vacancy due to fi tting out of incoming tenants at Changi City
Point. The occupancy at Causeway Point, YewTee Point and Anchorpoint remained steady while Bedok Point’s
occupancy improved 10.8%-point following the commencement of several new tenants in FY2016. The occupancy
by property for the last three years is shown in the table below.
Occupancy by Property
As at 30 September 2016
As at 30 September 2015
As at 30 September 2014
Causeway Point
Northpoint
Changi City Point
Bedok Point
YewTee Point
Anchorpoint
FCT Portfolio
SHOPPER TRAFFIC
99.8%
70.9%
81.1%
95.0%
98.7%
96.7%
89.4%
99.5%
98.2%
91.1%
84.2%
94.8%
96.9%
96.0%
99.8%
99.4%
97.9%
98.2%
96.6%
97.8%
98.9%
The total shopper traffi c in FY2016 was 102.0 million (FY2015: 97.2 million), an increase of 4.9% year-on-year. This
is also the fi rst time the aggregate shopper traffi c crosses 100 million. Northpoint registered a 9.4% year-on-year
increase, due mainly to higher human traffi c fl ow through the mall after the closure of an outdoor public corridor
adjacent to the mall in August 2015 due to on-going construction works. Changi City Point shopper traffi c was up
10.4% year-on-year to 11.7 million. The increase can be attributed to the introduction of a new lunchtime shuttlebus
service in late 2015 to help bring in workers and business professionals from other parts of Changi Business Park
further from the mall, as well as more Advertising and Promotional (“A&P”) activities specifi c to Changi City Point.
YewTee Point saw 5.0% higher shopper traffi c as the mall embarked on more A&P activities during the year. Shopper
traffi c at Causeway Point saw a marginal drop of 1.2% but it is still averaging a healthy 2 million per month traffi c.
Anchorpoint and Bedok Point saw softer traffi c of 5.6% and 6.4%, respectively.
Shopper Traffi c by
Property (million)
Causeway Point
Northpoint
Bedok Point
YewTee Point
Anchorpoint
Changi City Point
FCT portfolio
FY2016
(1 Oct 2015 – 30 Sep 2016)
FY2015
(1 Oct 2014 – 30 Sep 2015)
Increase / (Decrease)
24.6
45.2
4.4
12.7
3.4
11.7
102.0
24.9
41.3
4.7
12.1
3.6
10.6
97.2
(1.2%)
9.4%
(6.4%)
5.0%
(5.6%)
10.4%
4.9%
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
32
OPERATIONS & FINANCIAL REVIEW
TRADE SECTOR ANALYSIS
FCT’s well-diversifi ed portfolio comprises 11 trade sectors. Food & Restaurants is the largest sector which accounted
for 27.7% of FCT’s total NLA, down slightly from 30.1% a year ago. In term of gross rents, Food & Restaurants is
again the largest contributor, accounting for 34.1% of total FCT gross rents, down slightly from 34.2% a year ago.
Trade Classifi cations
Food & Restaurants
Fashion
Services/Education
Beauty, Hair, Cosmetics, Personal Care
Household
Supermarket
Healthcare
Department Store
Sports Apparels & Equipment
1
2
3
4
5
6
7
8
9
10 Books, Music, Art & Craft, Hobbies
11 Leisure/Entertainment
12 Vacant
Total
% NLA
27.7%
14.3%
9.1%
5.2%
8.4%
6.7%
2.2%
5.7%
3.3%
3.3%
3.5%
10.6%
100.0%
% Rents1
34.1%
21.3%
9.2%
7.9%
7.8%
4.5%
3.8%
3.6%
3.4%
3.0%
1.4%
0.0%
100.0%
1 As percentage of actual gross rent income of FCT portfolio for the month of September 2016, excluding gross turnover rent.
TOP 10 TENANTS BY GRI1
FCT malls have a total of 432 tenants. The top ten tenants collectively accounted for 23.5% of the total GRI as at
30 September 2016 (30 September 2015: 23.8%). Our largest tenant, Cold Storage Singapore (1983) Pte Ltd, the
operator of Cold Storage supermarkets, the Guardian Pharmacy and 7-Eleven stores in FCT malls, accounted for
4.4% of the portfolio GRI in FY2016 (FY2015: 5.4%).
TOP 10 TENANTS BY GRI AS AT 30 SEPTEMBER 2016
Tenant
Cold Storage Singapore (1983) Pte Ltd2
Metro (Private) Limited3
Courts (Singapore) Limited
Koufu Pte Ltd
Copitiam Pte Ltd4
Food Republic Pte Ltd
Trade Sector
Supermarket
Departmental Store
Household
Food & Restaurants
Food & Restaurants
Food & Restaurants
NTUC FairPrice Co-operative Ltd5
Supermarket
Watson’s Personal Care Stores Pte Ltd
Beauty, Hair, Cosmetics, Personal Care
McDonald’s Restaurants Pte Ltd
Food & Restaurants
Uniqlo (Singapore) Pte Ltd
Fashion
Total (Top 10)
1 Based on actual gross rental income for the month of September 2016, excluding gross turnover rent
2
3
Includes the leases for Cold Storage supermarket, Guardian Pharmacy and 7-Eleven stores
Includes the leases for Metro departmental store and Clinique Service Centre
4 Operator of Kopitiam food courts, includes Kopitiam, Bagus, Cantine, Dorakeiki
5
Includes leases for NTUC FairPrice and NTUC Healthcare (Unity)
GRI %
4.4%
3.5%
2.9%
2.5%
1.9%
1.9%
1.7%
1.6%
1.6%
1.5%
23.5%
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
33
OPERATIONS & FINANCIAL REVIEW
FINANCIAL REVIEW
Gross Revenue
($’000)
Causeway Point
Northpoint
Anchorpoint
YewTee Point
Bedok Point
Changi City Point
Total FCT
Property Expenses
($’000)
Causeway Point
Northpoint
Anchorpoint
YewTee Point
Bedok Point
Changi City Point
Total FCT
Net Property Income
($’000)
Causeway Point
Northpoint
Anchorpoint
YewTee Point
Bedok Point
Changi City Point
Total FCT
FY2016
83,022
44,962
8,728
14,343
8,334
24,427
183,816
FY2016
20,991
11,629
4,030
4,137
4,108
9,069
53,964
FY2016
62,031
33,333
4,698
10,206
4,226
15,358
129,852
FY2015
Increase / (Decrease)
80,960
50,335
8,772
14,049
9,386
25,740
189,242
2.5%
(10.7%)
(0.5%)
2.1%
(11.2%)
(5.1%)
(2.9%)
FY2015
Increase / (Decrease)
21,860
14,179
3,973
4,329
4,441
9,417
58,199
(4.0%)
(18.0%)
1.4%
(4.4%)
(7.5%)
(3.7%)
(7.3%)
FY2015
Increase / (Decrease)
59,100
36,156
4,799
9,720
4,945
16,323
131,043
5.0%
(7.8%)
(2.1%)
5.0%
(14.5%)
(5.9%)
(0.9%)
PERFORMANCE COMPARISON BETWEEN FY2016 AND FY2015
Gross revenue for the year ended 30 September 2016 was S$183.8 million, a decrease of S$5.4 million or 2.9% over
the corresponding period last year.
FCT’s property portfolio continued to achieve positive rental reversions during the year. Rentals from renewal and
replacement leases from the Properties commencing during the period, showed an average increase of 9.9% over
the expiring leases.
Property expenses for the year ended 30 September 2016 totalled S$54.0 million, a decrease of S$4.2million or
7.3% from the corresponding period last year. The decrease was mainly due to lower utilities tariff rates and other
property expenses.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
34
OPERATIONS & FINANCIAL REVIEW
Hence, net property income was S$129.9 million, which was S$1.2 million or 0.9% lower than the corresponding
period last year.
Non-property expenses of S$33.0 million was S$1.8 million lower than the corresponding period last year due to
lower borrowing costs as a result of lower weighted average interest rate, despite higher borrowings.
Total operating expenses1 as a percentage of net asset value was 3.9%, which was 0.3%-point lower than 4.2% for
the corresponding period last year.
Total return included:
(i) unrealised loss of S$1.9 million arising from fair valuation of interest rate swaps for the hedging of interest rate in
respect of S$160 million of the mortgage loans;
(ii) share of associate’s results from operations of S$3.7 million and from revaluation defi cit of S$4.1 million; and
(iii) share of joint venture’s results of S$0.5 million.
DISTRIBUTION
Income available for distribution for the year ended 30 September 2016 was S$108.1 million, which was S$1.7
million higher compared to the corresponding period in the preceding fi nancial year. Distribution per unit for
FY2016 grew 1.3% to a new-high of 11.764 cents from 11.608 cents. The breakdown and comparison of the
distribution per unit for FY2016 and FY2015 are presented below:
DISTRIBUTION PER UNIT (CENTS)
Financial year ended 30 September
First quarter (1 October – 31 December)
Second quarter (1 January – 31 March)
Third quarter (1 April – 30 June)
Fourth quarter (1 July – 30 September)
Full Year (1 October – 30 September)
FY2016
2.870
3.039
3.040
2.815
11.764
FY2015
Increase / (Decrease)
2.750
2.963
3.036
2.859
11.608
4.4%
2.6%
0.1%
(1.5%)
1.3%
TOTAL ASSETS AND NET ASSET VALUE PER UNIT
As at 30 September 2016, the total assets of FCT stood at $2,594 million, a slight increase from $2,549 million a
year ago. The increase was attributed to revaluation surplus of $28.4 million (after adjusting for amortization of rent
incentives of S$0.5 million) on FCT’s properties and an increase in current assets, partially offset by a decrease in
carrying value of investment in Hektar REIT.
The total appraised value of FCT’s investment properties was $2,509 million as at 30 September 2016.
(2015: $2,464 million).
FCT’s net assets stood at $1,776 million as at 30 September 2016, a slight increase compared with $1,754 million
a year ago. Correspondingly, the net asset value (the “NAV”) of FCT increased to $1.93 per unit from $1.91
a year ago.
As at
NAV per unit
30 September 2016
30 September 2015
$1.932
$1.913
1. The total operating expenses include property expenses, all fees and charges paid to Manager and interested parties of $69,816,000 (2015:
$73,881,000) for the fi nancial year.
2. Computed based on 920,198,330 units, comprising (i) 919,369,341 units in issue as at 30 September 2016; and (ii) 828,989 units issuable to the
Manager in October 2016 at an issue price of S$2.1316 per unit, in satisfaction of 50% of the management fee payable to the Manager for the
quarter ended 30 September 2016.
3. Computed based on 917,211,336 units, comprising (i) 916,840,040 units in issue as at 30 September 2015; and (ii) 371,296 units issued to the
Manager in October 2015 at an issue price of S$1.8925 per unit, in satisfaction of 20% of the management fee payable to the Manager for the
quarter ended 30 September 2015.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
35
OPERATIONS & FINANCIAL REVIEW
APPRAISED VALUE OF PROPERTIES3
Four of the FCT malls - Causeway Point, Northpoint, YewTee Point and Anchorpoint saw higher appraised valuations
from the independent property valuers. Valuations of Changi City Point and Bedok Point remained unchanged. The
aggregate value of the portfolio properties was $2,509 million, which is $45 million or 1.8% higher compared with
the aggregate value of $2,464 million as at 30 September 2015.
Valuation as at
30 September 2016
($ million)
Valuation as at
30 September 2015
($ million)
Causeway Point
1,143.0
1,110.0
Northpoint
Bedok Point
YewTee Point
Anchorpoint
Changi City Point
Total
672.0
108.0
172.0
103.0
311.0
665.0
108.0
170.0
100.0
311.0
2,509.0
2,464.0
Capitalisation Rate4
2016
5.35%
5.35%
5.50%
5.50%
5.25%
5.75%
2015
5.35%
5.25%
5.50%
5.50%
5.50%
5.70%
3
The properties were valued either by Colliers International Consultancy & Valuation (Singapore) Pte Ltd, Edmund Tie & Company (SEA) Pte Ltd,
Knight Frank Pte Ltd, or Savills Valuation and Professional Services (S) Pte. Ltd. Valuation methods used include the capitalisation approach,
discounted cash fl ow analysis and direct comparison method in determining the fair values of the properties. Annual valuations are required by
the Code on Collective Investment Schemes.
4 As indicated by property valuers.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
36
CAPITAL RESOURCES
OVERVIEW
Frasers Centrepoint Asset Management Ltd. (“FCAM”), as Manager of Frasers Centrepoint Trust (“FCT”), continues
to maintain a prudent fi nancial structure and adequate fi nancial fl exibility to ensure that it has access to capital
resources at competitive cost. FCAM proactively manages FCT’s cash fl ows, fi nancial position, debt maturity profi le,
cost of funds, interest rates exposure and overall liquidity position. FCAM monitors and maintains a level of cash and
cash equivalents deemed adequate by management to meet its operational needs. It also maintains an amount of
available banking facilities deemed suffi cient by management with several reputable banks to ensure FCT has access
to diversifi ed sources of bank borrowings.
SOURCES OF FUNDING
FCT relies on the debt capital and syndicated loans markets, equity market and bilateral bank facilities for its
funding needs. FCAM maintains active relationship with several reputable banks which are located in Singapore. The
principal bankers of FCT are DBS Bank Ltd, Oversea-Chinese Banking Corporation, and Citibank.
As at 30 September 2016, FCT has a total capacity of $1,526 million from its sources of funding, of which $734
million or 48.1% has been utilised. The following table summarises the capacity and the amount utilised for each of
the sources of funding:
Sources of Funding
Revolving credit facility
Type
Capacity
Amount Utilised
% Utilised
Unsecured
$90 million
Medium Term Note Programme
Unsecured
$1,000 million
Bank borrowings
Bank borrowings
Total
CREDIT RATINGS
Unsecured
$150 million
Secured
$286 million
$1,526 million
$28 million
$270 million
$150 million
$286 million
$734 million
31.0%
27.0%
100.0%
100.0%
48.1%
FCT has corporate credit ratings from Standard & Poor’s Rating Services (“S&P”) and Moody’s Investors Service
(“Moody’s”).
S&P has given FCT a corporate rating of “BBB+” with a stable outlook and Moody’s has given FCT a corporate
rating of “Baa1“ with a stable outlook. In addition, S&P has also given a “BBB+” credit rating for FCT’s multicurrency
Medium Term Notes Programme (“MTN Programme”).
DEBT PROFILE
The Manager, in July 2016, refi nanced the $264 million loan secured on Northpoint with term loan facilities
amounting to $216 million and issuance of $50 million 2.76% Medium Term Notes (“Notes”) due 2021 under FCT’s
existing MTN programme The mortgage on Northpoint has since been discharged.
FCT’s total debt, stood at $734 million at 30 September 2016, comprised $286 million secured bank borrowings,
$178 million unsecured bank borrowings and $270 million in unsecured Notes. $218 million of borrowing (about
29.7% of total borrowing) will mature in the next 12 months. FCT’s gearing stood at 28.3% as at 30 September 2016.
The interest cover for the year ended 30 September 2016 was 7.33 times.
The weighted average debt maturity was 2.7 years as at 30 September 2016.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
37
CAPITAL RESOURCES
Financial Year ended 30 September
Total Borrowings
Gearing1
Interest Cover
Average cost of borrowing
Average Debt Maturity
2016
$734 million
28.3%
7.33 times
2.10%
2.7 years
2015
$718 million
28.2%
6.61 times
2.40%
1.6 years
1 Calculated as the ratio of total outstanding borrowings over the total assets as at the stated balance sheet date.
The fair value of derivatives as at 30 September 2016 is included in note 11 to the Financial Statements as “Fair
value of interest rate swaps - liabilities” of $0.6 million (2015: Fair value of interest rate swaps - assets of $1.4 million
and fair value of interest rate swaps - liabilities of $0.1 million). The net fair value derivatives represented -0.03%
(2015: 0.07%) of the net assets of FCT as at 30 September 2016.
DEBT MATURITY PROFILE AS AT 30 SEPTEMBER 2016
Timeframe
< 1 year
1-2 years
2-4 years
> 4 years
Total Borrowings
$734 million
Amount Due (S$ million)
As % of total borrowings
218.0
60.0
190.0
266.0
734.0
29.7%
8.2%
25.9%
36.2%
100.0%
$218 million
(29.7% of total
borrowing)
$60 million
(8.2% of total
borrowing)
$190 million
(25.9% of total
borrowing)
$266 million
(36.2% of total
borrowing)
Total Borrowings
< 1 year
1-2 years
2-4 years
> 4 years
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
38
RISK MANAGEMENT
Effective risk management is a
fundamental part of FCT’s business
strategy. Key risks, mitigating
measures and management actions
are continually identifi ed, reviewed
and monitored by management as
part of FCAM’s enterprise-wide risk
management (“ERM”) framework.
Recognising and managing risks
are central to the business and to
protecting unitholders’ interests.
RISK MANAGEMENT
FRAMEWORK
ERM reporting is facilitated through
a web-based Corporate Risk
Scorecard system which enables
the reporting of risks and risk status
using a common platform in a
consistent and cohesive manner.
Risks are reported and monitored
at the operational level using a Risk
Scorecard which captures risks,
mitigating measures, timeline for
action items and risk ratings. Where
applicable, Key Risk Indicators
(“KRIs”) are established to monitor
risks. For risks that are material, the
mitigating measures and KRIs are
presented in the form of a Key Risk
Dashboard and reviewed by the
Management and Audit Committee
on a regular basis.
Risk tolerance statements setting
out the nature and extent of
signifi cant risks which FCAM is
willing to take in achieving its
strategic objectives are reviewed
annually.
RISK UPDATE
Formal risk reviews take place half
yearly and the scorecard is updated
regularly. On a yearly basis, ERM
validations are held where the
Management of FCAM provides
assurance to the Audit Committee,
that key risks have been identifi ed
and the mitigating measures are
adequate, and the system of risk
management is adequate and
effective to address risks which are
considered relevant and material to
the operations.
FCAM also seeks to benchmark its
ERM programme against industry
best practices and standards. In
assessing areas for improvement
and how the ERM processes and
practices can be strengthened,
reference was made to the best
practices in risk management
including those set out in the Code
of Corporate Governance 2012
and the Risk Governance Guidance
for Listed Boards issued by the
Corporate Governance Council in
May 2012.
As every staff has a role to play
in risk management, ERM and
business continuity plans (“BCPs”)
awareness briefi ngs are conducted
for new staff. Refresher sessions are
also held to update staff on relevant
developments in the area of ERM
and BCPs, where required.
KEY RISKS IN FINANCIAL
YEAR 2016
Operational Risk
FCAM has established and strictly
adheres to a set of standard
operating procedures designed
to identify, monitor, report and
manage the operational risks
associated with the day-to-day
management and maintenance of
FCT malls. These procedures and
guidelines are regularly reviewed
and benchmarked against industry
best practices to ensure relevance
and effectiveness. Insurances are
also in place to mitigate losses
resulting from unforeseen events.
BCPs are regularly tested for their
effectiveness.
Human Capital Risk
FCAM has in place a career
planning and development system
and conducts regular remuneration
and benefi ts benchmarking to
attract and retain appropriate talent
for the business.
Liquidity Risk
In managing FCT, FCAM adheres
closely to the covenants in the loan
agreements and property fund
guidelines in the Code on Collective
Investment Schemes issued by the
Monetary Authority of Singapore.
In addition, there is close
monitoring by FCAM of FCT’s cash
fl ow position and requirements
so as to ensure suffi cient liquidity
reserves to fi nance its operations
and meet any short-term
obligations.
Investment Risk
As FCT grows its investment
portfolio via the acquisition of
new properties and other forms
of permitted investments, all
investment opportunities are
subject to a disciplined and rigorous
appraisal process. All investment
proposals are evaluated based on
a comprehensive set of investment
criteria including alignment
with FCT’s investment mandate,
asset quality, expected returns,
sustainability of asset performance
and future growth potential, and
having due regard to market
conditions and outlook.
Interest Rate Risk
Interest rate risk is managed by
FCAM on an on-going basis with
the primary objective of limiting the
extent to which net interest expense
could be affected by adverse
movements in interest rates. For a
major portion of FCT’s outstanding
borrowings, FCAM adopts a policy
of hedging the fl oating-rate loans
to fi xed-rates through interest rate
swaps.
Credit Risk
FCAM has established credit limits
for tenants and monitors their debt
levels on an ongoing basis. Credit
evaluations are performed before
lease agreements are entered
into with tenants. Credit risk is
also mitigated by collecting rental
deposits from the tenants. Cash
and fi xed deposits are placed with
regulated fi nancial institutions.
Compliance Risk
FCT is subject to relevant laws and
regulations including the Listing
Manual of the Singapore Exchange
Securities Trading Limited, the Code
on Collective Investment Schemes
issued by the Monetary Authority of
Singapore and the tax rulings issued
by the Inland Revenue Authority
of Singapore with regard to the
taxation of FCT and its Unitholders.
Any changes to these regulations
may affect FCT’s operations and
results.
FCAM has in place policies and
procedures to facilitate compliance
with applicable laws and
regulations. Management keeps
abreast of latest developments
in relevant laws and regulations
through training and attending talks
and briefi ngs.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
39
RETAIL PROPERTY MARKET REVIEW
By Edmund Tie & Company (SEA) Pte Ltd
1.0
ECONOMIC OVERVIEW
GDP Growth, Infl ation and Employment
1.1
Singapore’s economy was on a slower growth path
Singapore’s economy expanded by 2.0%1 in 2015 (Table
1.1). This was a moderation from the 3.3% in 2014.
Advance estimate of Gross Domestic Product (GDP)
growth was 0.6% y-o-y in Q3 2016, down signifi cantly
from 2.0% y-o-y in Q2 2016. Economic growth was
weighed down by decline of manufacturing output and
slight contraction in the services sector. The key demand
drivers for retail space i.e., the GDP for retail trade and
food services were also weak between Q4 2015 and Q3
2016.
Table 1.1: Key Economic Indicators
Indicator (y-oy)
Real GDP
Growth
2015
2.0%
Infl ation
-0.5%
2016 F
2017 F
1.0% to
2.0%
(MTI)
-1.0% to
0.0%
(MAS)
1.4% to
3.0%2
-0.1% to
2.0%9
Unemployment
1.9%
2.1%
2.1%
Source: Ministry of Trade and Industry (MTI), Department of Statistics
(DOS), Monetary Authority of Singapore (MAS), Oxford Economics,
October 2016
Infl ation continued to ease and unemployment
edged up
Headline infl ation continued to ease, from 1.0% in 2014
to -0.5% in 2015. The Consumer Price Index continued
to refl ect a price decline in January-September 2016,
as it fell by 0.7% y-o-y. While that for food, education,
recreation & culture and healthcare costs increased,
price gains were outweighed by the decline in housing
& utilities and transport costs.
More workers were laid off and there were fewer job
openings in H1 2016, pushing unemployment rate to
2.1%3 as at September 2016, higher than that of 2.0%
as at September 2015. The total number of retrenched
workers rose by 18% y-o-y to 4,100 workers4 in Q3
2016.
Population
1.2
Population continues to grow, supporting retail
spending and demand for retail space
As at June 2016, Singapore’s population reached
5.61 million, refl ecting an annual increase of 1.3%,
slightly faster than the 1.2% in the preceding year.
This comprises 3.41 million (61%) citizens, 520,000
(9%) permanent residents and 1.67 million (30%) non-
residents. Population in selected planning areas, where
Frasers Centrepoint Trust (FCT) malls are located, are
expected to increase and underpin the growth in retail
spending (Map 1.1 and Table 1.2).
Map 1.1: Location of FCT Malls
Causeway Point
YewTee Point
Northpoint
Suburban Areas
Changi City Point
Anchorpoint
Bedok Point
Source: FCT, Edmund Tie & Company Consulting, October 2016
Under Population White Paper 2013, the government
projected total population to reach 6.5 to 6.9 million by
2030.
1.3
Household Income, Expenditure and
Retail Sales
Despite increases in household income, retail
spending decreased on the back of subdued
consumer sentiment
Amidst a tight labour market in 2015, median monthly
household income grew by 4.5%, faster than infl ation.
However, it is slower than the 5.3% growth in 2014
(Table 1.3).
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
40
1 Ministry of Trade and Industry (MTI).
2 Based on the Monetary Authority of Singapore’s Survey of Professional Forecasters as at June 2016. It refl ects the views received from 22
economists and analysts.
3 Advance estimate.
4 According to Ministry of Manpower (MOM), Services (59%) formed the majority of retrenched workers.
RETAIL PROPERTY MARKET REVIEW
By Edmund Tie & Company (SEA) Pte Ltd
Table 1.2: Population in Selected Planning Areas
Planning Areas
FCT Malls
Current Population
Queenstown
Bedok
Anchorpoint
Bedok Point
Woodlands
Causeway Point
Tampines
Yishun
Changi City Point
Northpoint
Choa Chu Kang
YewTee Point
92,300
274,400
184,700
247,300
172,900
134,250
Current Number of
Dwelling units*
Projected Ultimate
Units**
39,000
100,000
68,400
79,000
63,500
48,600
>60,000
>119,000
>98,000
>110,000
>84,000
> 62,000
* Note: Current number of dwelling units include both public and private residential units
** Note: Projected ultimate units include Housing & Development Board (HDB) fl ats and private developments under HDB Government Land
Sales (GLS) Programme. It does not include private residential developments on private lands and Urban Redevelopment Authority (URA) GLS
Programme. The projected ultimate fi gures may change.
Source: DOS, URA, HDB, October 2016
Table 1.3: Household Income, Expenditure and
Infl ation
Category
Median Monthly
Household Income
Growth in Private
Consumption Expenditure
2015
$8,666
y-o-y
Change
4.5%
$136 billion
4.5%
Infl ation
-
-0.5%
Source: MTI, DOS, MAS, Oxford Economics, October 2016
Private consumption expenditure, a refl ection of
consumer confi dence and household retail spending,
rose by 4.5% in 2015, higher than the 2.2% growth in
2014. However, the increase was mainly in transport
expenditure (20%). Meanwhile, expenditure in selected
retail category including Food & Non-alcoholic
Beverages fell (Table 1.4).
Table 1.4: Selected Category in Private Consumption
Expenditure
Category
2015
Food & Non-alcoholic
Beverages
Clothing & Footwear
Food Serving Services
$9.0 billion
$3.6 billion
$8.7 billion
Source: DOS, October 2016
y-o-y
Change
-1.0%
-1.2%
-3.7%
Decline in overall retail sales was cushioned by slower
fall in non-discretionary items, which are major trades
in suburban malls
The subdued consumer sentiment5 affected retail
sales6. The fall in retail sales growth was steeper in
discretionary items. Retail sales of supermarkets, which
is typically the major trade for suburban malls, was more
resilient (Table 1.5).
Table 1.5: Retail Sales Growth for Selected Product7
Indicator (y-o-y)
2015
Q1
2016
Q2
2016
Retail Sales (Excluding
Motor Vehicles)
-1.0%
-2.6%
-3.2%
Non-discretionary item
Supermarkets
0.4%
-1.1%
-3.6%
Discretionary items
-5.8%
-7.2%
-8.4%
Optical Goods &
Books
Department Stores
2.7%
-1.4%
-3.2%
Telecommunication
Apparatus &
Computers
Wearing Apparel &
Footwear
-6.0% -21.9% -22.8%
-2.4%
-5.9%
-3.8%
Watches & Jewellery
1.3%
-9.3%
-8.5%
Source: DOS, October 2016
5 Nielsen’s Singapore Consumer Confi dence Index was 88 points as at Q2 2016, down from 99 points in Q2 2015.
6 Non-motor vehicle retail sales declined by 1.0% in 2015, following the 0.7% decline in 2014.
7 Based on retail sales index.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
41
RETAIL PROPERTY MARKET REVIEW
By Edmund Tie & Company (SEA) Pte Ltd
As at June 2016, supermarkets occupied some 6.7% of
Net Lettable Area (NLA) in FCT’s portfolio and formed
4.3% of total rental revenue. Top tenants - including
Cold Storage and NTUC Fairprice - are popular among
residents for groceries and necessities. This helped to
cushion FCT malls against the decline in overall retail
sales.
Outlook
1.4
In the short term, economic uncertainties will impact
retail spend
With increased uncertainty in the UK due mainly to its
vote to leave the European Union, as well as growing
risks in Mainland China’s economy, global economic
growth in 2017 is expected to slow. Lukewarm global
demand, concerns over the mixed performance of
various industries and rising unemployment affected
overall consumer sentiment.
Given the overall economic uncertainties, the retail
market is expected to be tepid in the short term.
Retailers are reinventing themselves to value-add to
address challenges arising from lower per capita retail
spending, labour constraint and leakage of shopping
dollars through online purchases and overseas
shopping.
Long term Government plans will support the growth
of retail market
Notwithstanding, suburban malls are expected to fare
well over the long-term. Major government plans are in
place and these are expected to widen existing retail
catchments.
• Land Use Plan – The 2013 plan aims to double the
Mass Rapid Transit (MRT) network to about 360km
by 2030 through fi ve new MRT lines, as well as 40
more new bus services. Connectivity in the suburban
areas will be enhanced with scheduled completions
of Downtown Line Stage 3 (2017), Jurong Regional
Line extensions (2025) and Cross Island Line (2030).
Malls located at/close to the transport nodes are
likely to attract higher shopper footfall. For instance,
Changi City Point, which is adjacent to Expo MRT
station on East-West Line and Downtown Line Stage
3, will benefi t from the enlarged catchment.
• URA Master Plan 2014 – Decentralisation is the
main theme of the Master Plan. The URA has plans
to grow more residential and commercial clusters in
the suburban areas, adding more jobs and increase
live-in and working population (Table 1.6).
Table 1.6: Selected Growth Areas
Planning
Areas
Tampines
Woodlands
Yishun
Highlights
• Expansion of Changi Business
Park
• Woodlands Regional Centre
is positioned as Singapore’s
Northern Gateway
• Features 700,000 sq m of new
commercial space and 100 ha of
land for development
• The development of North
Coast Innovation Corridor,
stretching from Woodlands to
Seletar Regional Centre
Source: URA, October 2016
Riding on its strength as a decentralised hub for
back offi ce operations for fi nancial institutions,
Changi Business Park will gradually evolve into
a major employment hub in the East Region,
benefi ting Changi City Point. Development of
the North Region with new homes and enhanced
mobility, will bode well for malls including Causeway
Point and Northpoint.
• Lean Enterprise Development Scheme – In
October 2015, the MOM launched the scheme to
help Small-to-Medium Enterprises (SME) to make
temporary adjustments to their local and foreign
worker mix, as they transform to become more
manpower lean. The government also reiterated
its fi rm stand on lower reliance on foreign labour.
Many SME retailers can tap on this scheme to
restructure their operations to improve their
business operations. Stronger profi t margin amidst
lower operating cost is likely to facilitate retailers’
expansion, which in turn increases demand for retail
space.
• Food Services Industry Transformation Map
and Retail Industry Transformation Map – In
September 2016, the government launched these
two transformation maps to address challenges
in retailing. Four strategies - boosting innovation,
enhancing productivity with technology, reskilling
workers and internationalising local companies
were identifi ed. One of the key initiatives is to assist
retailers to adopt omnichannel marketing, to reach
out to both online and offl ine consumers.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
42
RETAIL PROPERTY MARKET REVIEW
By Edmund Tie & Company (SEA) Pte Ltd
In-store sales are expected to grow alongside
bricks and clicks, as omnichannel marketing gathers
momentum
As brands are integrating both online and offl ine
channels to pursue omnichannel marketing, more
“bricks and clicks” concepts are emerging. Shoppers
can browse and experience products in store, while
purchases can be made online through mobile devices
at shoppers’ convenience10. Alternatively, shoppers can
buy online and collect their products in the store. This
increases the retail touchpoints with shoppers.
Mall operators are more receptive to pop-up stores
Since 2015, many online stores have established a
physical presence to boost brand awareness. With
short-term leases, pop-up stores enable mall operators
to refresh the shopping experience, as well as improve
occupancy.
3.0
RETAIL PROPERTY MARKET
Stock11
3.1
Of the total islandwide stock, 10% is owned and
managed by REITs, while 50% is in the suburban
areas
According to Edmund Tie & Company Research, retail
stock increased by 1.6% to 41.2 million sq ft as at Q3
2016. About 4.1 million sq ft (10%) of the total stock
islandwide are owned and managed by Real Estate
Investment Trust (REITs).
Over the last decade, suburban retail space has grown
signifi cantly from 35% to 51% of total stock (Figure 3.1).
This is due in part to decentralisation and extension of
the MRT network.
2.0
RETAIL INDUSTRY TRENDS
On the back of the strong Singapore Dollar, more
residents spent overseas
Catalysed by the strong Singapore Dollar and growth
of budget airlines, residents’ expenditure abroad
grew by 2.0% in 2015, up from 0.5% in 20148. This
came alongside an increase in outbound departure
of Singapore residents from 8.9 million in 2014 to 9.1
million in 2015.
Increased online shopping
With wider adoption of e/m-commerce, consumers
are becoming more receptive to online purchases.
According to MasterCard in September 2015, $303.5
million was spent online by Singapore cardholders
during the Great Singapore Sale (GSS) 2015, a growth
of 5.6% while e-commerce transactions increased
faster by 9.8%. VisaNet9 highlighted that 20% of its
e-commerce transactions in Singapore were cross-
border transactions, with top corridors being the US and
UK. Strong purchasing power makes online purchase
overseas more affordable.
Despite the increase in online shopping, majority still
spend in-store
Notwithstanding, with the availability of well-located
malls, as well as both landlords and retailers constantly
innovating their concepts to be more experiential,
majority of shoppers prefer to spend in-store, as
shopping is often regarded as leisure activity.
Increased spending on eating-out, evidenced by
increasing proportion of Food & Restaurants in
tenant mix
Consumers are more willing to spend on eating-out to
experience new dining options and socialise with friends
and family. With one-third of FCT’s portfolio in terms
of NLA being Food & Restaurants (29.5%), twice the
NLA for Fashion (14.5%) as at H2 2016, FCT malls’ wide
variety of Food & Restaurants options has added to the
attractiveness of the mall as shoppers come to dine and
socialise.
8
Yearbook of Statistic 2016, DOS.
9 VisaNet data as of November and December 2015.
10 The upcoming Additions & Alterations (A/A) and extension to the Singapore Post Centre (SPC) (188,400 sq ft) in Paya Lebar Central will integrate
online and offl ine shopping into a single platform. Scheduled to complete in 2017, future shoppers at SPC will be able to browse through the
products in-store, purchase the product and arrange for product delivery. This provides greater convenience for shoppers, as they are able to
shop hands-free. Additionally, this allows retailers to save on storage space in their physical stores, as logistics arrangement is completed in the
warehouse.
11 Retail supply, demand and occupancy fi gures in this report are based on URA’s statistics.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
43
RETAIL PROPERTY MARKET REVIEW
By Edmund Tie & Company (SEA) Pte Ltd
Figure 3.1: Stock
sq ft
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
35%
40%
25%
51%
29%
20%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015 Q1 2016 Q2 2016 Q3 2016
Orchard/Scotts Road
Other City Areas
Suburban Areas
In Bedok, retail space in Viva Business Park is expected
to pose some competition. With popular sports goods
retailer Decathlon as an anchor tenant, more dining
options are being introduced in Viva Business Park to
serve shoppers, the working population and residents
living in the area.
Potential Supply
3.2
Although potential supply in the suburban areas is
signifi cant, most are not located near FCT malls
Potential supply between Q4 2016 and 2020 is about 4
million sq ft, with 2.9 million sq ft (73%) in the suburban
areas (Figure 3.2 and Table 3.2).
Figure 3.2: Potential Supply
Average Annual Net Supply (Islandwide) between 2006 and 2015: 1.3m sq ft
Average Annual Completion (Islandwide) between Q4 2016F and 2020F: 1.0m sq ft
sq ft
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Q4 2016 F
2017 F
2018 F
2019 F
2020 F
Orchard/Scotts Road
Other City Areas
Suburban Areas
Source: URA, Edmund Tie & Company Consulting, October 2016
Source: URA, Edmund Tie & Company Consulting, October 2016
Most of the recent completions in the vicinity of FCT
malls are not direct competitors
With the exception of Bedok, recent completions in
planning areas where FCT malls are located, are less
than 80,000 sq ft NLA. With these malls signifi cantly
smaller than that the FCT malls, these completions are
not direct competitors (Table 3.1).
Table 3.1: Completions since Q3 2015
Planning
Areas
FCT Malls
(sq ft)
Completions in the
Planning Areas
Estimated
NLA
(sq ft)
15,000
120,400
Name
456
Alexandra
Road
Viva
Business
Park
Phase 1
and 2
-
-
Additions &
Alterations
(A/A) in
Tampines
Mall
Our
Tampines
Hub
Junction
Nine
27,500
76,900
79,000
-
-
Queenstown Anchorpoint
(71,000)
Bedok
Bedok Point
(82,700)
Woodlands
Tampines
Causeway
Point
(415,800)
Changi City
Point
(207,300)
Yishun
Choa Chu
Kang
Northpoint
(235,900)
YewTee
Point
(74,000)
Source: URA, Edmund Tie & Company Consulting, October 2016
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
44
RETAIL PROPERTY MARKET REVIEW
By Edmund Tie & Company (SEA) Pte Ltd
Table 3.2: Major Retail Projects in the Pipeline
Planning
Areas
Downtown
Core
Downtown
Core
Geylang
Bukit
Panjang
Changi
Changi
Geylang
Yishun
Estimated
Year of
Completion
Development Estimated
NLA
(sq ft)
Q4 2016 DUO Galleria
56,000
2017 Tanjong Pagar
Centre
2017
Singapore
Post Centre
(A&A)
38,000*
188,000
2017
Hillion Mall
168,000
2017
Changi
Airport
Terminal 4
183,000
2018
Project Jewel
576,000
2018
2018
Paya Lebar
Quarter
Northpoint
City
340,000
290,000
* Note: Estimated 62,000 sq ft of retail space in Tanjong Pagar Centre
was completed in Q3 2016
Source: URA, Edmund Tie & Company Consulting, October 2016
Other than Northpoint City, the pipeline supply near
FCT malls are under 80,000 sq ft. FCT is expected
to complete its asset enhancement initiatives by
linking Northpoint and upcoming retail component of
Northpoint City at all levels in 2018. Together they will
be the largest mall (with more than 500,000 sq ft) in the
North Region, further galvanising FCT’s presence.
(Table 3.3).
Pressure is likely to be more pronounced in the East
Region, when Project Jewel is completed in 2018
Elsewhere, Changi Airport Group and CapitaLand Mall
Asia are jointly developing Project Jewel (576,000 sq
ft), a regional retail mall in Changi Airport. Scheduled
to complete in 2018, Project Jewel will serve both
travellers and residents in the East Region. To enhance
the shopping experience, it also features an indoor
waterfall and garden. This will have an impact on Bedok
Point and Changi City Point, which need to deliver
stronger value propositions to remain competitive.
Over the medium term, there will be relatively
limited retail space arising from the Government
Land Sales Programme
Taking the retailing challenges and signifi cant potential
supply into account, the government is adapting a
cautious approach in introducing new retail supply.
Retail Gross Floor Area (GFA) was capped at 20,000 sq
m (215,000 sq ft) for sites with retail component in H2
2016 Government Land Sales (GLS) Programme (Table
3.4).
Table 3.3: Selected Pipeline Developments near FCT Malls
Planning Areas
FCT Malls
(sq ft)
Pipeline Supply
Year
Potential Supply in Planning Area
Queenstown
Bedok
Woodlands
Tampines
Yishun
Anchorpoint
(71,000)
Bedok Point
(82,700)
Causeway Point
(415,800)
Changi City Point
(207,300)
Northpoint
(235,900)
Choa Chu Kang
YewTee Point
(74,000)
-
2017
2017
2017
-
2018
-
The Flow
Kampung Admiralty
Woodlands Central
-
Northpoint City
Q4 2016
Brooks Signature @ The Springside
2018
-
Wisteria Mall
-
Source: URA, Edmund Tie & Company Consulting, October 2016
Estimated NLA
(sq ft)
-
49,200
78,300
58,200
-
290,000
26,100
58,100
-
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
45
RETAIL PROPERTY MARKET REVIEW
By Edmund Tie & Company (SEA) Pte Ltd
Table 3.4: Sites with Retail Component in the
Suburban Areas under H2 2016 GLS Programme
Planning
Areas
Sites
Maximum
Allowable
GFA
Maximum
Allowable
GFA (Retail)
Confi rmed List
Hougang
Upper
Serangoon
Road*
89,250 sq m
(960,700 sq ft)
15,000 sq m
(161,500 sq ft)
Reserved List12
Bukit Timah Holland
Road*
Woodlands Woodlands
Square**
59,800 sq m
(643,700 sq ft)
6,800 sq m
(73,200 sq ft)
78,400 sq m
(843,900 sq ft)
8,000 sq m
(86,100 sq ft)
* Commercial & residential site
** Commercial site
Source: URA, October 2016
Over the medium term, pressure from potential supply
arising from the GLS programme is not expected to
be signifi cant. The sites in Upper Serangoon Road and
Holland Road are primarily residential, while the site in
Woodlands Square comprises mainly offi ce component.
Demand and Occupancy
3.3
As supply outstripped demand, occupancy in the
suburban areas eased
Between Q4 2015 and Q3 2016, the completion of
new malls outstripped retailers’ need for space in the
suburban areas. Over the same period, cumulative net
supply (1.3m sq ft) was higher than cumulative demand
(776,400 sq ft). The largest completion was Compass
One (281,800 sq ft) at Sengkang Square in Q2 2016.
Consequently, occupancy in the suburban areas eased
slightly by 0.2%-points y-o-y to 90.9% as at Q3 2016
(Figure 3.3).
As at July 2016, FCT portfolio occupancy was at
90.8%13, similar to the average occupancy of 90.9%
in the suburban areas. FCT malls consistently attract
traffi c fl ow from residential estates, offi ces and schools
in the vicinity. Apart from the primary catchment, good
connectivity via the MRT provides healthy footfall,
supporting occupancy.
Mall operators were more receptive to a broader
spectrum of tenants to achieve higher occupancy
Amid rising operating costs and weaker in-store
sales, some retailers have announced store closure
in Singapore. These include furniture and home
accessories retailer iwannagohome and beverage
establishment Smoothie King.
In light of retail challenges, many mall operators
reviewed their leasing strategy and are more receptive
to a broader spectrum of tenants. For example, FCT
amalgamated two adjoining retail spaces at Bedok
Point and leased to a local dining start-up 5 Senses.
Meanwhile, the nearby Bedok Mall brought in Bank of
China bank branch, Encik Tan eatery and Q&M dental
surgery.
Some suburban malls are ideal for brands to debut
stores closer to where shoppers live. For instance,
CASIO opened the fi rst-of-its-kind CASIO Concept
Store in Tampines Mall instead of Orchard/Scotts
Road, which is Singapore’s premier shopping belt. This
highlights the attractiveness of suburban malls, beyond
the usual retailing of non-discretionary items and food
services.
Figure 3.3: Supply, Demand and Occupancy (Suburban Areas)
sq ft
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Average Annual Net Supply between 2006 and 2015: 973,000 sq ft
Average Annual Demand between 2006 and 2015: 896,000 sq ft
91.1%
100%
98%
96%
94%
92%
90%
88%
86%
84%
82%
80%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Q1
2016
Q2
2016
Q3
2016
Supply (LHS)
Demand (LHS)
Occupancy (RHS)
Source: URA, Edmund Tie & Company Consulting, October 2016
12 A site on the Reserve List will be launched for tender if a developer’s indicated minimum price is acceptable to the government.
13 According to FCT’s fi nancial result presentation in July 2016, portfolio occupancy was affected by Northpoint’s ongoing asset enhancement and
transitional vacancy due to fi tting of an incoming anchor tenant at Changi City Point. Occupancy at Causeway Point, Anchorpoint and YewTee
Point remained relatively stable. Meanwhile, Bedok Point occupancy recovered to 90% but is expected to remain volatile as tenant remixing
efforts continues.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
46
RETAIL PROPERTY MARKET REVIEW
By Edmund Tie & Company (SEA) Pte Ltd
Rent
3.4
Due to the weak retail market and large completions,
rent in the suburban areas fell by 4.7% y-o-y in
Q3 2016
While majority of the retail sales were in-store, there
was increasing consumer propensity to spend through
alternative channels from online to overseas shopping.
In-store retail sales were weakened further, tampered
by economic uncertainty. Consequently, demand for
suburban retail space was moderated and occupancy
eased amidst high completions. Average prime fi rst-
storey monthly gross rent in the suburban areas fell by
4.7% y-o-y to $30.60 per sq ft per month in Q3 2016
(Figure 3.4).
Figure 3.4: Average Prime First-storey Monthly Gross
Rent
Bedok
Major Transactions
3.5
There were two major retail transactions since July 2015
- CapitaLand Mall Trust sold Rivervale Mall to AEW Asia
in October 2015, while CapitaLand sold Bedok Mall to
CapitaLand Mall Trust in July 2015 (Table 3.5).
Table 3.5: Selected Major Transactions
(July 2015 - November 2016)
Planning
Areas
Development
Sengkang Rivervale Mall
(balance
tenure of 89
years)
Bedok Mall
(balance
tenure of 94
years)
NLA
(sq ft)
Transacted
Price
81,159 $190.5 million
($2,347 per
sq ft)
222,500 $783.1 million
($3,520 per
sq ft)
$ per sq ft
per month
45
40
35
30
25
20
15
10
5
0
37.20%
30.60%
20.08%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Orchard/Scotts Road
Other City Areas
Suburban Areas
Source: Edmund Tie & Company Consulting, October 2016
Suburban malls were more resilient than that of
Other City Areas
Notwithstanding, average prime fi rst-storey monthly
gross rent in the Other City Areas fared worse, with
higher decline of 9.1% y-o-y to about $20.00 per
sq ft per month in Q3 2016. This indicates stronger
rental resilience in the suburban areas, benefi ting
from large primary catchment. Meanwhile, average
prime fi rst-storey monthly gross rent in Orchard/Scott
Roads declined the least by 3.3% to $37.20 per sq ft
per month in Q3 2016, maintaining its position as the
premier shopping belt in Singapore.
On a positive note, FCT malls are actively managed
to optimise rental potential. As such, the portfolio
achieved positive average rental reversion at 8.3%
between April and Jun 201614.
Source: CapitaLand Mall Trust, Edmund Tie & Company Consulting,
October 2016
Outlook
3.6
Rents in the suburban areas are expected to ease
against the backdrop of economic slowdown and
retailing challenges
In light of a slow economy, consumers are expected to
continue exercising greater caution in spending, thus
impacting on the retail market. Coupled with signifi cant
potential supply in suburban areas, weaker consumer
sentiments, falling retail sales and alternative retail
channels are likely to exert downward pressure on
rents. Average prime fi rst-storey monthly gross rent in
the suburban areas are expected to decline by 2.0%
over the next one year. Notwithstanding, FCT portfolio
is expected to be resilient with predominance of
Supermarket15 and Food & Restaurant16 in the trade mix.
Consumers need to spend on necessities and are willing
to dine out.
Well-located suburban malls are in better position to
ride the rental decline
Suburban malls that are integrated with transport
nodes spaces such as Northpoint and Causeway Point,
are expected to continue to enjoy stable footfall and
draw interest from retailers. Leveraging on its strategic
location, these developments are in better positions
to weather the retailing challenges and moderate the
rental decline.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
47
14 Change between the average rental rates between the new lease and the preceding lease contracted typically three years ago.
15 6.7% of portfolio NLA; 4.3% of total rental revenue as at 30 June 2016.
16 29.5% of portfolio NLA;35.4% of total rental revenue as at 30 June 2016.
RETAIL PROPERTY MARKET REVIEW
By Edmund Tie & Company (SEA) Pte Ltd
LIMITING CONDITIONS
Where it is stated in the report that information has
been supplied to us in the preparation of this report
by the sources listed, this information is believed to
be reliable and we will accept no responsibility if this
should be otherwise. All other information stated
without being attributed directly to another party is
obtained from our searches of records, examination
of documents or enquiries with relevant government
authorities.
The forward statements in this report are based on
our expectations and forecasts for the future. These
statements should be regarded as our assessment of the
future, based on certain assumptions on variables which
are subject to changing conditions. Changes in any of
these variables may signifi cantly affect our forecasts.
Utmost care and due diligence has been taken in the
preparation of this report. We believe that the contents
are accurate and our professional opinion and advice
are based on prevailing market conditions as at the
date of the report. As market conditions do change, we
reserve the right to update our opinion and forecasts
based on the latest market conditions.
Edmund Tie & Company (SEA) Pte Ltd gives no
assurance that the forecasts and forward statements in
this report will be achieved and undue reliance should
not be placed on them.
Edmund Tie & Company (SEA) Pte Ltd or persons
involved in the preparation of this report disclaims all
responsibility and will accept no liability to any other
party. Neither the whole nor any part, nor reference
thereto may be published in any document, statement
or circular, nor in any communications with third parties,
without our prior written consent of the form or context
in which it will appear.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
48
MALL PROFILES
50 FCT Portfolio Summary
52 Causeway Point
54 Northpoint
56 Changi City Point
58 Bedok Point
60 YewTee Point
62 Anchorpoint
64 Hektar REIT
FCT PORTFOLIO SUMMARY
As at 30 September 2016
Causeway Point
Northpoint
Changi City Point
Net Lettable Area1
(NLA)
(Square Feet)
Number of Leases
Title
415,792
225,032
207,244
227
131
115
99 years leasehold
commencing 30/10/95
(about 78 years remaining)
99 years leasehold
commencing 1/4/90
(about 72 years remaining)
60 years leasehold
commencing 30/4/09
(about 52 years remaining)
Year Purchased
2006
Purchased Price
($ million)
Appraised Value
As % of Total
Portfolio
Appraised Value
FY2016 Gross
Revenue
($’000)
FY2016 Net
Property Income
($’000)
Occupancy Rate
Key Tenants
by gross rental
income
Annual Shopper
Traffi c in FY2016
Connectivity
$606.17 million
$1,143 million
45.5%
83,022
62,031
99.8%
Northpoint 1: 2006
Northpoint 2: 2010
Northpoint 1: $249.27 million
Northpoint 2: $164.55 million
$672 million
26.8%
2014
$305.0 million
$311 million
12.4%
44,962
33,333
70.9%2
24,427
15,358
81.1%3
Metro, Courts Singapore,
Cold Storage, Food Republic,
Cathay Cineplexes, Uniqlo
Cold Storage, OCBC Bank,
Kopitiam food court, UOB
Bank, Popular Bookstore,
McDonald’s
Koufu food court, Bagus food
court, Uniqlo, NIKE, MOA
Brewing Company, Tung Lok
Millennium
24.6 million
45.2 million
11.7 million
Woodlands MRT station
(North South Line and future
Thomson Line)
& Bus Interchange
Yishun MRT station
(North South Line)
& Bus Interchange
Expo MRT station
(East West Line, and future
Downtown Line)
1 Net lettable area as stated in valuation reports dated 30 September 2016 for the respective assets.
2 Northpoint occupancy is affected by the ongoing asset enhancement initiative works (AEI) which commenced in March 2016 and expected to
complete in September 2017. The occupancy of the mall as at September 2015 was 98.2%.
3 Changi City Point occupancy is affected by the ongoing fi tting out of an anchor tenant which is expected to complete in October 2016. The
occupancy of the mall as at September 2015 was 91.1%.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
50
FCT PORTFOLIO SUMMARY
As at 30 September 2016
Bedok Point
YewTee Point
Anchorpoint
Net Lettable Area1
(NLA)
(Square Feet)
Number of Leases
Title
82,713
73,670
70,989
50
74
99 years leasehold
commencing 15/3/78
(about 60 years remaining)
99 years leasehold
commencing 3/1/06
(about 88 years remaining)
58
Freehold
Year Purchased
2011
2010
2006
Purchased Price
($ million)
Appraised Value
As % of Total
Portfolio
Appraised Value
FY2016 Gross
Revenue
($’000)
FY2016 Net
Property Income
($’000)
Occupancy Rate
Key Tenants
by gross rental
income
Annual Shopper
Traffi c in FY2016
Connectivity
$127.0 million
$125.65 million
$36.02 million
$108 million
4.3%
$172 million
6.9%
$103 million
4.1%
8,334
4,226
95.0%
14,343
10,206
98.7%
8,728
4,698
96.7%
Harvey Norman Store, Sushi
Express, Ssiksin Korea BBQ,
Sukiya
NTUC FairPrice, Koufu food
court,
Watson’s, KFC, Shakura
Cold Storage, Koufu food
court, Gyu-Kaku, Xin Wang
Hong Kong Cafe, Cotton On
4.4 million
12.7 million
3.4 million
Bedok MRT station
(East West Line)
& Bus Interchange
YewTee MRT station
(North South Line)
& Bus Stop
Near Queenstown MRT
station (East West Line)
& bus stop
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
51
MALL PROFILES
CAUSEWAY POINT
PROPERTY DESCRIPTION
Description
Seven retail levels (including one
basement level) and seven car park
levels (B2, B3 and 2nd - 6th levels)
Address
1 Woodlands Square
Singapore 738099
Net Lettable Area
415,792 square feet1
Car Park Lots
839
Title
99 years leasehold w.e.f 30 Oct 1995
Year Acquired by FCT
2006
Market Valuation
$1,143.0 million as at 30 Sep 2016
Annual Shopper Traffi c
24.6 million (Oct 2015 – Sep 2016)
Senior Centre Manager
Ms Elsie Goh
Key Tenants
Metro, Courts, Cold Storage
supermarket, Cathay Cineplexes,
Food Republic, Uniqlo
1 As indicated in the valuation report
for Causeway Point, dated 30
September 2016, by Edmund Tie &
Company (SEA) Pte Ltd
MALL PROFILE
Causeway Point is the largest mall in Woodlands, one of Singapore’s
most populous residential estates. It is conveniently located next to the
Woodlands regional bus interchange and the Woodlands MRT station,
which will serve as an interchange station for the existing North-South
line and the new Thomson line in the future.
With more than 200 stores and food outlets spread over seven retail
levels (including basement level), Causeway Point offers its shoppers
a one-stop shopping and dining destination. The mall recorded gross
revenue of $83.02 million in FY2016, up 2.5 % year-on-year. The mall
attracted 24.6 million shoppers in FY2016.
Causeway Point is the winner of BCA Universal Design GoldPlus award in
2015 for its emphasis in incorporating user-friendliness, connectivity and
safety aspects in its mall design and features. The mall is also awarded
the Platinum Award in the BCA’s GreenMark program for its host of
environmental-friendly features that reduces its energy consumption and
carbon footprint.
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September ($’000)
FY2016
FY2015
Increase/(Decrease)
Gross Revenue
Property Expenses
Net Property Income
Occupancy
Shopper Traffi c (million)
83,022
20,991
62,031
99.8%
24.6
80,960
21,860
59,100
99.5%
24.9
2.5%
(4.0%)
5.0%
0.3%-point
(1.2%)
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
52
MALL PROFILES
TOP 10 TENANTS
As at 30 September 2016,
Causeway Point has a total of 227
leases (FY2015: 223), excluding
vacancy. The key tenants include
Metro, Courts, Cold Storage
Supermarket, Food Republic and
Cathay Cineplexes, among others.
The top 10 tenants contributed
collectively, 33.3% (FY2015: 33.1%)
of the mall’s total gross rental
income.
Top 10 Tenants at Causeway Point
(as at 30 September 2016)
Metro (Private) Limited1
Courts (Singapore) Limited
Cold Storage Singapore (1983) Pte Ltd2
Food Republic Pte Ltd
Cathay Cineplexes Pte Ltd
Uniqlo (Singapore) Pte Ltd
McDonald's Restaurants Pte Ltd
Aspial Corporation Ltd3
Bagus Management Pte Ltd4
RE&S Enterprises5
Total
% of Mall’s Gross Rental
Income
7.4%
6.1%
5.0%
3.9%
2.3%
2.2%
1.9%
1.6%
1.5%
1.4%
33.3%
TRADE SECTOR ANALYSIS
Food & Restaurants contributed
28.5%, (FY2015: 28.5%) of the mall’s
gross rental income, followed by
the Fashion trade at 23.6% (FY2015:
23.9%). These two trades account
for 52.1% of the mall’s gross rental
income. The breakdown of the
trade sector analysis by net lettable
area and gross rental income is
presented on the right.
1
2
3
Includes leases for Metro Department Store & Clinique Service Centre
Includes leases for Cold Storage supermarket, Guardian Pharmacy and 7-Eleven stores
Includes leases for Lee Hwa Jewellery, CITIGEMs and Goldheart Jewellery
4 Operator of Bagus food court
5 Operator of Kuriya Japanese Market and Ichiban Boshi restaurant
Trade Classifi cations
(in descending order of % rent)
By Net
Lettable Area
By Gross
Rental Income6
1
2
Food & Restaurants
Fashion
3 Household
4
Services/Education
5 Department Store
6
7
8
Beauty, Hair, Cosmetics, Personal Care
Sports Apparels & Equipment
Supermarket
9 Healthcare
10 Books, Music, Art & Craft, Hobbies
11 Leisure/Entertainment
12 Vacant
Total
6
Excludes gross turnover rent
23.2%
17.5%
12.2%
4.9%
14.5%
4.3%
2.3%
5.7%
2.0%
4.0%
9.2%
0.2%
28.5%
23.6%
10.7%
7.4%
7.3%
6.7%
3.4%
3.2%
3.2%
3.1%
2.9%
0.0%
100.0%
100.0%
LEASE EXPIRY PROFILE7
As at 30 Sep 2016
Number of leases expiring
89
76
61
1
-
FY2017
FY2018
FY2019
FY2020
FY2021
Total
227
Net Lettable Area of Expiring Leases (square feet)
161,501 106,697 146,379
442
- 415,019
Expiries as % of Mall’s Total Leased Area
Gross Rental Income (GRI) Contribution of Expiring
Leases as % of Mall’s Total GRI
38.9%
40.3%
25.7%
26.8%
35.3%
32.5%
0.1%
0.4%
0.0% 100.0%
0.0% 100.0%
7
Excludes vacancy
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
53
MALL PROFILES
NORTHPOINT
MALL PROFILE
Northpoint, opened in 1992, is Singapore’s pioneer suburban retail mall.
The mall is located in the central of the populous Yishun estate. The mall
offers six retail levels of shopping (including two basement levels). It is
connected to the Yishun bus interchange and is also linked to the Yishun
MRT station via a direct underground pedestrian underpass.
Northpoint consistently attracts high shopper traffi c fl ow from the
surrounding residential estate and schools. Shopper traffi c in FY2016 was
45.2 million, one of the highest among suburban malls in Singapore.
Key tenants at Northpoint include Cold Storage supermarket, OCBC
Bank, Kopitiam food court, UOB and Popular bookstore. The mall also
features a community library and a 5,400 square feet rooftop wet and
dry children’s playground on the rooftop.
PROPERTY DESCRIPTION
Description
Six retail levels (including two
basement levels) and three levels of
car park (B1 - B3)
Address
930 Yishun Avenue 2, Northpoint,
Singapore 769098
Net Lettable Area
225,032 square feet1
Car Park Lots
235
Title
99 years leasehold w.e.f 1 Apr 1990
Year Acquired by FCT
2006 (Northpoint 1),
2010 (Northpoint 2)
Market Valuation
$672.0 million as at 30 Sep 2016
Annual Shopper Traffi c
45.2 million (Oct 2015 – Sep 2016)
Senior Centre Manager
Ms Cynthia Ng
Key Tenants
Cold Storage supermarket, OCBC
Bank, Kopitiam food court, UOB
and Popular bookstore
1 As indicated in the valuation report
for Northpoint, dated 30 September
2016, by Knight Frank Pte Ltd
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
54
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September ($’000)
FY2016
FY2015
Increase/(Decrease)
Gross Revenue
Property Expenses
Net Property Income
Occupancy
Shopper Traffi c (million)
44,962
11,629
33,333
70.9%
45.2
50,335
14,179
36,156
98.2%
41.3
(10.7%)
(18.0%)
(7.8%)
(27.3%-point)*
9.4%
* Northpoint commenced its asset enhancement (AEI) works in March 2016 with expected completion in September 2017. The decrease in
vacancy) was due to the ongoing AEI.
MALL PROFILES
TOP 10 TENANTS
As at 30 September 2016,
Northpoint has a total of 131 leases
(FY2015: 172), excluding vacancy.
The mall commenced its asset
enhancement (AEI) works in March
2016 with expected completion
in September 2017. The decrease
in number of leases (and vacancy)
was due to the ongoing AEI. The
key tenants include Cold Storage
supermarket, OCBC Bank, Kopitiam
food court, UOB, among others.
The top 10 tenants contributed
collectively 29.9% (FY2015: 32.1%)
of the mall’s total gross rental
income.
Top 10 Tenants at Northpoint
(as at 30 September 2016)
Cold Storage Singapore (1983) Pte Ltd1
Overseas-Chinese Banking Corporation
Ltd
Copitiam Pte Ltd2
United Overseas Bank Ltd
Popular Book Company Pte Ltd
McDonald's Restaurants Pte Ltd
National Library
XWS Pte Ltd3
Cotton On Singapore Pte Ltd
Watson’s Personal Care Stores Pte Ltd
Total
% of Mall’s Gross Rental
Income
6.7%
4.7%
2.9%
2.6%
2.4%
2.4%
2.2%
2.1%
2.0%
1.9%
29.9%
TRADE SECTOR ANALYSIS
Food & Restaurants contributed
27.1%, (FY2015: 31.9%) of the mall’s
gross rental income, followed by
the Fashion trade at 25.9% (FY2015:
25.7%). The year-on-year variance in
the trade mix was mainly attributed
to the ongoing AEI works at the
mall. The breakdown of the trade
sector analysis by net lettable
area and gross rental income is
presented on the right.
1
Includes leases for Cold Storage supermarket, Guardian Pharmacy and 7-Eleven stores
2 Operator of Kopitiam food court
3 Operates Xin Wang HK Café at Northpoint
Trade Classifi cations
(in descending order of % rent)
By Net
Lettable Area
By Gross
Rental Income4
1
2
3
4
Food & Restaurants
Fashion
Services/Education
Beauty, Hair, Cosmetics, Personal Care
5 Healthcare
6
7
Supermarket
Books, Music, Art & Craft, Hobbies
8 Household
9
Sports Apparels & Equipment
10 Vacant
Total
4
Excludes gross turnover rent
14.7%
11.3%
16.0%
4.9%
2.8%
8.8%
5.7%
4.2%
2.5%
29.1%
100.0%
27.1%
25.9%
15.2%
9.0%
5.9%
4.7%
4.6%
4.0%
3.6%
0.0%
100.0%
Total
131
LEASE EXPIRY PROFILE5
As at 30 Sep 2016
FY2017
FY2018
FY2019
FY2020
FY2021
Number of leases expiring
55
54
21
Net Lettable Area of Expiring Leases (square feet)
63,462
72,455
20,377
-
-
Expiries as % of Mall’s Total Leased Area
Gross Rental Income (GRI) Contribution of Expiring
Leases as % of Mall’s Total GRI
38.2%
38.5%
43.6%
38.8%
12.3%
20.3%
0.0%
0.0%
5
Excludes vacancy
1
9,870 166,164
5.9% 100.0%
2.4% 100.0%
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
55
MALL PROFILES
CHANGI CITY POINT
MALL PROFILE
Changi City Point is a three-storey retail mall (with one basement)
located in Changi Business Park, next to the Singapore Expo MRT station
and near one of Singapore’s largest convention and exhibition venues,
The Singapore Expo. Changi City Point is the third largest by net lettable
area among Frasers Centrepoint Trust’s portfolio of six retail malls.
The mall offers diverse shopping and dining experience especially for
the working population in Changi Business Park; residents in nearby
precincts such as Tampines, Bedok and Simei; and the visitors to the
Singapore Expo. Changi City Point features fashion retailers including
Uniqlo, Nike, Timberland, Adidas and many outlets stores. Shoppers can
also do their grocery shopping at the supermarket. The restaurants at
the mall include Tung Lok Signatures and Table Manners and the Koufu
and Bagus food courts. Families can also enjoy the landscaped rooftop
garden that also features a wet and dry children’s playground.
PROPERTY DESCRIPTION
Description
Three retail levels (including one
basement level)
Address
5 Changi Business Park Central
1, Changi City Point, Singapore
486038
Net Lettable Area
207,244 square feet1
Car Park Lots
6272
Title
60 years leasehold w.e.f 30 Apr 2009
Year Acquired by FCT
2014
Market Valuation
$311.0 million as at 30 Sep 2016
Annual Shopper Traffi c
11.7 million (Oct 2015 – Sep 2016)
Senior Centre Manager
Ms Emily Fong
Key Tenants
Koufu food court, Bagus food court,
Uniqlo, Nike, MOA New Zealand
Bar
1 As indicated in the valuation
report for Changi City Point, dated
30 September 2016, by Colliers
International Consultancy & Valuation
(Singapore) Pte Ltd
2 The car park lots are shared between
Changi City Point, Capri By Fraser
and ONE@Changi City.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
56
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September ($’000)
FY2016
FY2015
Increase/(Decrease)
Gross Revenue
Property Expenses
Net Property Income
Occupancy
Shopper Traffi c (million)
24,427
9,069
15,358
81.1%
11.7
25,740
9,417
16,323
91.1%
10.6
(5.1%)
(3.7%)
(5.9%)
(10.0%-point)*
10.4%
* The year-on-year decrease in occupancy at Changi City Point was due to the ongoing tenant-remixing and the fi tting out of an anchor tenant as
at 30 September 2016. The fi tting out is expected to complete in the month of October 2016.
MALL PROFILES
TOP 10 TENANTS
As at 30 September 2016, Changi
City Point has a total of 115 leases
(FY2015: 122), excluding vacancy.
The year-on-year decrease in the
number of leases at Changi City
Point was due to the ongoing
tenant-remixing. The key tenants
include Koufu food court, Bagus
food court, Uniqlo and Nike,
among others. The top 10 tenants
contributed collectively, 31.9%
(FY2015: 35.0%) of the mall’s total
gross rental income.
Top 10 Tenants at Changi City Point
(as at 30 September 2016)
Koufu Pte Ltd1
Copitiam Pte Ltd2
Uniqlo (Singapore) Pte Ltd
NIKE Singapore Pte Ltd
Trilogies of Beers Pte Ltd
Tung Lok Millennium Pte Ltd
Challenger Technologies Limited
RE & S Enterprise Pte Ltd3
Golden Beeworks Pte Ltd4
RSH (Singapore) Pte Ltd5
Total
% of Mall’s Gross Rental
Income
9.8%
4.3%
3.5%
2.3%
2.2%
2.1%
2.0%
1.9%
1.9%
1.9%
31.9%
TRADE SECTOR ANALYSIS
Food & Restaurants contributed
54.1%, (FY2015: 47.5%) of the
mall’s gross rental income, followed
by the Fashion trade at 23.2%
(FY2015: 20.8%). The year-on-year
variance was mainly attributed to
tenant-remixing efforts at the mall.
The breakdown of the trade sector
analysis by net lettable area and
gross rental income is presented on
the right.
1 Operates the Koufu food court at Changi City Point
2 Operator of Bagus food court
3 Operates the Ichiban Sushi restaurant at Changi City Point
4 Operates the Jollibee restaurant at Changi City Point
5 Operates the Quicksilver, Lacoste outlet store and Royal Sporting House outlet store at
Changi City Point
Trade Classifi cations
(in descending order of % rent)
By Net
Lettable Area
By Gross
Rental Income4
1
2
3
4
Food & Restaurants
Fashion
Sports Apparels & Equipment
Services/Education
5 Household
6
Beauty, Hair, Cosmetics, Personal Care
7 Healthcare
8 Department Store
Books, Music, Art & Craft, Hobbies
9
10 Supermarket5
11 Vacant
Total
40.3%
19.0%
8.6%
4.6%
3.9%
1.8%
1.4%
1.0%
0.5%
0.0%
18.9%
100.0%
54.1%
23.2%
6.6%
5.3%
3.8%
3.1%
2.2%
1.2%
0.5%
0.0%
0.0%
100.0%
4
Excludes gross turnover rent
5 New Supermarket tenant at Changi City Point will commence trading from October 2016
onwards
LEASE EXPIRY PROFILE6
As at 30 Sep 2016
Number of leases expiring
32
54
17
12
-
FY2017
FY2018
FY2019
FY2020
FY2021
Total
115
Net Lettable Area of Expiring Leases (square feet)
58,641
52,360
15,791
41,376
- 168,168
Expiries as % of Mall’s Total Leased Area
Gross Rental Income (GRI) Contribution of Expiring
Leases as % of Mall’s Total GRI
34.9%
31.0%
31.1%
36.8%
9.4%
12.5%
24.6%
19.7%
0.0% 100.0%
0.0% 100.0%
6
Excludes vacancy
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
57
MALL PROFILES
BEDOK POINT
MALL PROFILE
Bedok Point has fi ve retail levels (including one basement level) and
one basement car park. The mall is located in the town centre of
Bedok, which is one of the largest residential estates in Singapore by
population. The mall is well-served by the nearby Bedok MRT station
and the Bedok bus interchange.
The mall offers an exciting array of restaurants, food outlets, enrichment
centres, retail and service offerings that makes it an attractive destination
for families, students and PMEBs (Professionals, Managers, Executives
and Businessmen) around the precinct. The tenants at Bedok Point
include Harvey Norman, Challenger, Ssiksin Korea BBQ, Mind Stretcher,
The Learning Lab and Paradise Inn, among others. Bedok Point was
awarded the BCA green Mark gold Award in 2014.
PROPERTY DESCRIPTION
Description
Five retail levels (including one
basement level) and one basement
car park
Address
799 New Upper Changi Road,
Singapore 467351
Net Lettable Area
82,713 square feet1
Car Park Lots
76
Title
99 years leasehold w.e.f 15 Mar 1978
Year Acquired by FCT
2011
Market Valuation
$108.0 million as at 30 Sep 2016
Annual Shopper Traffi c
4.4 million (Oct 2015 – Sep 2016)
Senior Centre Manager
Ms Donna Oh
Key Tenants
Harvey Norman, Challenger, Ssiksin
Korea BBQ, Gym Boxx
1 As indicated in the valuation report
for Bedok Point, dated 30 September
2016, by Savills Valuation and
Professional Services (s) Pte Ltd
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
58
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September ($’000)
FY2016
FY2015
Increase/(Decrease)
Gross Revenue
Property Expenses
Net Property Income
Occupancy
Shopper Traffi c (million)
8,334
4,108
4,226
95.0%
4.4
9,386
4,441
4,945
84.2%
4.7
(11.2%)
(7.5%)
(14.5%)
(10.8%-point)
(6.4%)
* The year-on-year decrease in occupancy at Changi City Point was due to the ongoing tenant-remixing and the fi tting out of an anchor tenant as
at 30 September 2016. The fi tting out is expected to complete in the month of October 2016.
MALL PROFILES
TOP 10 TENANTS
As at 30 September 2016, Bedok
Point has a total of 50 leases
(FY2015: 47), excluding vacancy.
The key tenants include Pertama
Merchandising Pte Ltd (operator of
Harvey Norman), Go Sushi, Korea
Buffet Pte Ltd (operator of Ssiksin),
among others. The top 10 tenants
contributed collectively, 46.2%
(FY2015: 46.2%) of the mall’s total
gross rental income.
TRADE SECTOR ANALYSIS
Food & Restaurants contributed
44.9%, (FY2015: 50.1%) of the mall’s
gross rental income, followed by
the Services and Education trade
at 18.8% (FY2015: 13.4%). The
breakdown of the trade sector
analysis by net lettable area and
gross rental income is presented on
the right.
Top 10 Tenants at Bedok Point
Top 10 Tenants at Bedok Point
(as at 30 September 2016)
(as at 30 September 2016)
Pertama Merchandising Pte Ltd1
Gymboxx Pte Ltd
Go Sushi Pte Ltd2
Korea Buffet Pte Ltd3
Creative Eateries Pte Ltd4
Starbucks Coffee Singapore Pte Ltd
Meng Har Le Spa Pte Ltd
Pastamatrix International Pte Ltd
NTUC Club
Bachmann Japanese Restaurant Pte Ltd5
Total
1 Operator of the Harvey Norman Store at Bedok Point
2 Operator of Sushi Express at Bedok Point
3 Operator of Ssiksin Korea BBQ at Bedok Point
4 Operator of Sukiya at Bedok Point
5 Operator of Ajisen Ramen Express at Bedok Point
% of Mall’s Gross Rental
% of Mall’s Gross Rental
Income
Income
11.6%
5.5%
5.4%
5.3%
4.0%
3.7%
2.7%
2.7%
2.7%
2.6%
46.2%
Trade Classifi cations
(in descending order of % rent)
By Net
Lettable Area
By Gross
Rental Income6
1
2
Food & Restaurants
Services/Education
3 Household
4
5
6
7
Beauty, Hair, Cosmetics, Personal Care
Fashion
Sports Apparels & Equipment
Books, Music, Art & Craft, Hobbies
8 Healthcare
9
Vacant
Total
6
Excludes gross turnover rent
34.7%
25.9%
18.5%
8.6%
2.1%
2.7%
1.9%
0.6%
5.0%
44.9%
18.8%
14.5%
11.6%
4.7%
2.5%
1.8%
1.2%
0.0%
100.0%
100.0%
LEASE EXPIRY PROFILE7
As at 30 Sep 2016
FY2017
FY2018
FY2019
FY2020
FY2021
Number of leases expiring
29
16
4
Net Lettable Area of Expiring Leases (square feet)
43,115
21,022
6,779
-
-
Expiries as % of Mall’s Total Leased Area
Gross Rental Income (GRI) Contribution of Expiring
Leases as % of Mall’s Total GRI
54.9%
60.3%
26.8%
27.5%
8.6%
6.7%
0.0%
0.0%
7
Excludes vacancy
Total
50
1
7,660
78,576
9.7% 100.0%
5.5% 100.0%
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
59
MALL PROFILES
YEWTEE POINT
MALL PROFILE
YewTee Point has two retail levels (including one basement level). The
mall is located in Yew Tee, a housing estate within a major residential
precinct Choa Chu Kang, northwest of Singapore. YewTee Point is served
by the adjacent Yew Tee MRT station and public bus services.
YewTee Point’s key tenants include NTUC FairPrice, Koufu food court,
Watson’s and KFC, among others. It draws shoppers from the private
apartments located above the mall (YewTee Residence), the YewTee
housing estate, schools, military camp and the nearby industrial estate.
Total shopper traffi c to the mall in FY2016 was 12.7 million.
PROPERTY DESCRIPTION
Description
Two retail levels (including one
basement level) and one basement
car park
Address
21 Choa Chu Kang North 6,
Singapore 689578
Net Lettable Area
73,670 square feet1
Car Park Lots
832
Title
99 years leasehold w.e.f 3 Jan 2006
Year Acquired by FCT
2010
Market Valuation
$172.0 million as at 30 Sep 2016
Annual Shopper Traffi c
12.7 million (Oct 2015 – Sep 2016)
Senior Centre Manager
Ms Jazmine Lim
Key Tenants
NTUC FairPrice, Koufu food court,
Watson’s, KFC
1 As indicated in the valuation
report for YewTee Point, dated 30
September 2016, by Savills Valuation
and Professional Services (s) Pte Ltd
2
Part of limited common property for
the exclusive benefi t of YewTee Point
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September ($’000)
Gross Revenue
Property Expenses
Net Property Income
Occupancy
Shopper Traffi c (million)
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
60
FY2016
14,343
4,137
10,206
98.7%
12.7
FY2015
14,049
4,329
9,720
94.8%
12.1
Increase/(Decrease)
2.1%
(4.4%)
5.0%
3.9%-point
5.0%
MALL PROFILES
TOP 10 TENANTS
As at 30 September 2016, YewTee
Point has a total of 74 leases
(FY2015: 70), excluding vacancy.
The key tenants include NTUC
FairPrice, Koufu food court,
Watson’s and KFC, among others.
The top 10 tenants contributed
collectively, 49.4% (FY2015: 51.6%)
of the mall’s total gross rental
income.
TRADE SECTOR ANALYSIS
Food & Restaurants contributed
39.5%, (FY2015: 38.6%) of the mall’s
gross rental income, followed by
the supermarket trade at 18.0%
(FY2015: 19.0%). The breakdown
of the trade sector analysis by
net lettable area and gross rental
income is presented on the right.
Top 10 Tenants at YewTee Point
(as at 30 September 2016)
NTUC FairPrice Co-operative Ltd1
Koufu Pte Ltd2
Watson's Personal Care Stores Pte Ltd
Kentucky Fried Chicken Management Pte Ltd
Shakura Pigmentation Pte Ltd
West Co'z Café Ptd Ltd
OldTown Singapore Pte Ltd
XWS Pte Ltd3
BreadTalk Pte Ltd4
Zensho Food Singapore Pte Ltd5
Total
% of Mall’s Gross Rental
Income
19.5%
9.8%
3.6%
3.5%
2.6%
2.2%
2.2%
2.1%
2.0%
1.9%
49.4%
1
Includes leases for NTUC Fairprice and NTUC Healthcare (Unity)
2 Operator of Koufu food court
3 Operator of Xin Wang HK Café
4 Operator of ToastBox
5 Operator of Long John Silver’s
Trade Classifi cations
(in descending order of % rent)
By Net
Lettable Area
By Gross
Rental Income6
1
2
3
Food & Restaurants
Supermarket
Beauty, Hair, Cosmetics, Personal Care
4 Healthcare
5
6
Services/Education
Fashion
7 Household
8
9
Books, Music, Art & Craft, Hobbies
Vacant
Total
6
Excludes gross turnover rent
39.2%
23.4%
14.3%
6.3%
7.5%
3.1%
2.9%
2.0%
1.3%
39.5%
18.0%
16.9%
8.1%
7.6%
4.3%
3.0%
2.6%
0.0%
100.0%
100.0%
LEASE EXPIRY PROFILE7
As at 30 Sep 2016
Number of leases expiring
27
36
11
Net Lettable Area of Expiring Leases (square feet)
26,382
37,472
8,868
-
-
-
-
FY2017
FY2018
FY2019
FY2020
FY2021
Total
74
72,722
Expiries as % of Mall’s Total Leased Area
Gross Rental Income (GRI) Contribution of Expiring
Leases as % of Mall’s Total GRI
36.3%
35.3%
51.5%
52.7%
12.2%
12.0%
0.0%
0.0%
0.0% 100.0%
0.0% 100.0%
7
Excludes vacancy
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
61
MALL PROFILES
ANCHORPOINT
MALL PROFILE
Anchorpoint has two retail levels (including one basement level) and
an adjacent a 2-storey restaurant building. The mall is located along
Alexandra Road, opposite to the popular large home furnishing store
IKEA and newly-opened Park Hotel Alexandra. Anchorpoint is well-
served by public bus services as well as scheduled shuttle bus service
between the mall and the nearby offi ces in the Alexandra area.
Anchorpoint offers an exciting range of eateries and restaurants,
retail shopping and boutique outlets. The stores and restaurants at
Anchorpoint include Cold Storage, Koufu (food court), Japanese BBQ
restaurant Gyu-Kaku as well as reputable retailers such as Charles &
Keith and Cotton On, among others.
Total shopper traffi c to the mall in FY2016 was 3.4 million. Anchorpoint
was awarded the Singapore Service Class Award (2012 – 2015) by Spring
Singapore.
PROPERTY DESCRIPTION
Description
Two retail levels (including one
basement level) and an adjacent a
two-storey restaurant building
Address
368 and 370 Alexandra Road
Singapore 159952/159953
Net Lettable Area
70,989 square feet1
Car Park Lots
1282
Title
Freehold
Year Acquired by FCT
2006
Market Valuation
$103.0 million as at 30 Sep 2016
Annual Shopper Traffi c
3.4 million (Oct 2015 – Sep 2016)
Senior Centre Manager
Mr Raymond Chan Kin
Key Tenants
Cold Storage, Gyu-Kaku, Koufu, Xin
Wang Hong Kong Cafe
1 As indicated in the valuation report
for Anchorpoint, dated 30 September
2016, by Savills Valuation and
Professional Services (s) Pte Ltd
2 Located at Anchorpoint but are
part of a common property of strata
sub-divided mixed-use development,
which comprises Anchorpoint and
The Anchorage (a condominium),
managed by the MCST Title plan
No.2304.
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September ($’000)
FY2016
FY2015 Increase/(Decrease)
Gross Revenue
Property Expenses
Net Property Income
Occupancy
Shopper Traffi c (million)
8,728
4,030
4,698
96.7%
3.4
8,772
3,973
4,799
96.9%
3.6
(0.5%)
1.4%
(2.1%)
(0.2%-point)
(5.6%)
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
62
MALL PROFILES
TOP 10 TENANTS
As at 30 September 2016,
Anchorpoint has a total of 58 leases
(FY2015: 60), excluding vacancy.
The key tenants include Cold
Storage Supermarket, Koufu (food
court), Gyu-Kaku Japanese BBQ
restaurant, among others. The top
10 tenants contributed collectively,
49.3% (FY2015: 49.5%) of the mall’s
total gross rental income.
Top 10 Tenants at YewTee Point
(as at 30 September 2016)
Cold Storage (1983) Singapore Pte Ltd1
Koufu Pte Ltd
Royal Culinary Pte Ltd2
XWS Pte Ltd3
Cotton On Singapore Pte Ltd
Sarika Connoisseur Cafe Pte Ltd4
Sakuraya Foods Pte Ltd
JP Food Service Pte Ltd5
Watson's Personal Care Stores Pte Ltd
G2000 Apparel (S) Pte Ltd
Total
% of Mall’s Gross Rental
Income
11.1%
6.6%
4.7%
4.5%
4.4%
4.2%
4.0%
3.7%
3.5%
2.6%
49.3%
TRADE SECTOR ANALYSIS
Food & Restaurants contributed
41.6%, (FY2015: 40.0%) of the mall’s
gross rental income, followed by
the Fashion trade at 20.1% (FY2015:
19.7%). The breakdown of the
trade sector analysis by net lettable
area and gross rental income is
presented on the right.
1
Includes leases for Cold Storage supermarket, Guardian Pharmacy and 7-Eleven store
2 Operator of Gyu-Kaku at Anchorpoint
3 Operator of Xin Wang HK Café at Anchorpoint
4 Operator of The Coffee Connoisseur at Anchorpoint
5 Operator of Jack’s Place Restaurant at Anchorpoint
Trade Classifi cations
(in descending order of % rent)
By Net
Lettable Area
By Gross
Rental Income6
1
2
3
4
5
Food & Restaurants
Fashion
Beauty, Hair, Cosmetics, Personal Care
Supermarket/Hypermarket
Services/Education
6 Household
7
Books, Music, Art & Craft, Hobbies
8 Healthcare
9
Vacant
Total
6
Excludes gross turnover rent
39.4%
17.4%
8.6%
15.2%
6.6%
6.5%
1.8%
1.2%
3.3%
41.6%
20.1%
10.5%
10.2%
6.7%
6.4%
2.9%
1.6%
0.0%
100.0%
100.0%
LEASE EXPIRY PROFILE7
As at 30 Sep 2016
Number of leases expiring
27
13
18
Net Lettable Area of Expiring Leases (square feet)
27,069
9,442
32,120
-
-
-
-
FY2017
FY2018
FY2019
FY2020
FY2021
Total
58
68,631
Expiries as % of Mall’s Total Leased Area
Gross Rental Income (GRI) Contribution of Expiring
Leases as % of Mall’s Total GRI
39.4%
46.0%
13.8%
14.6%
46.8%
39.4%
0.0%
0.0%
0.0% 100.0%
0.0% 100.0%
7
Excludes vacancy
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
63
MALL PROFILES
HEKTAR REAL ESTATE INVESTMENT TRUST
INVESTMENT IN HEKTAR REIT
As at 30 September 2016, FCT holds 31.17% of the units in Hektar Real Estate Investment Trust (“H-REIT”). H-REIT,
an associate of FCT, is a retail-focused REIT in Malaysia listed on the Main Market of Bursa Malaysia Securities
Berhad. Its property portfolio comprises Subang Parade in Selangor; Mahkota Parade in Melaka; Wetex Parade &
Classic Hotel in Muar, Johor; Central Square in Sungai Petani and Landmark Central in Kulim, both located in Kedah.
The properties in H-REIT portfolio have a total net lettable area of 1.8 million square feet.
HEKTAR PROPERTY PROFILE
As at 31 December 2015
Subang Parade Mahkota Parade
Wetex Parade
Central Square
Selangor
Freehold
Melaka
Leasehold*
Johor
Freehold
Kedah
Freehold
Landmark
Central
Kedah
Freehold
505,293 sq ft
519,654 sq ft
159,153 sq ft
311,741 sq ft
281,388 sq ft
126
94.7%
106
95.5%
75
98.7%
82
98.0%
71
99.3%
9.8 million
9.1 million
4.6 million
3.9 million
3.2 million
280.0 million
257.5 million
117.5 million
83.0 million
98.0 million
State
Title
Net Lettable
Area (Retail)
Tenancies
Occupancy
Visitor Traffi c
FY2015
Purchase
Price(RM)
Valuation (RM)
426.4 million
320.0 million
135.0 million
94.0 million
111.2 million
* Until year 2101
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
64
MALL PROFILES
HEKTAR REIT’S TOP 10 TENANTS
The top ten tenants in the Hektar’s portfolio contributed approximately 28.5% of total monthly rental income.
Tenant
Trade Sector
NLA (Sq ft)
% of Total
NLA
% of Monthly
Rental Income1
Parkson
The Store
Seleria
Giant
Bata
MBO
McDonald’s
KFC
Watsons
Department Store / Supermarket
Department Store / Supermarket
Food & Beverage
Department Store / Supermarket
Fashion & Footwear
Leisure & Entertainment/Sports & Fitness
Food & Beverage
Food & Beverage
Services
Kenny Roger Roasters
Food & Beverage
Top 10 Tenants (By Monthly Rental Income)
Other Tenants
Total
1 Based on monthly rental income for December 2015Tenancy Mix
254,009
273,198
35,437
96,283
8,355
83,705
14,124
17,431
8,757
7,096
798,395
978,834
14.3%
15.4%
2.0%
5.4%
0.5%
4.7%
0.8%
1.0%
0.5%
0.4%
45.0%
55.0%
1,777,229
100.0%
9.6%
5.8%
2.5%
1.7%
1.7%
1.6%
1.6%
1.5%
1.3%
1.2%
28.5%
71.5%
100.0%
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
65
MALL PROFILES
INVESTMENT IN HEKTAR REIT
TENANCY MIX
As at 31 December 2015
The portfolio tenancy mix is dominated by department stores and supermarkets, which led by Parkson, The Store
and Giant, constitute approximately 36.3% of total portfolio NLA. In terms of rental income, the largest segment
remains fashion and footwear, which contributes approximately 23.2% of monthly rental income. Food and beverage
comes closely behind, constituting 21.2% of the portfolio monthly income.
By Rental Income *
By Net Lettable Area
Fashion & Footwear
Food & Beverage / Food Court
Department Store / Supermarket
Gifts / Books / Toys / Specialty
Education / Services
Leisure & Entertainment, Sports & Fitness
Electronics & IT
Homewares & Furnishing
Others
Total
*
Based on monthly rental income for December 2015
LEASE EXPIRY PROFILE
As at 31 December 2015
23.2%
21.2%
17.1%
6.4%
7.1%
9.3%
8.3%
0.7%
6.7%
100.0%
12.3%
12.7%
36.3%
5.3%
3.1%
18.8%
6.9%
0.6%
4.0%
100.0%
For the year 2016, a total of 176 tenancies will expire, representing approximately 32% of NLA and 37% of monthly
rental income as at 31 December 2015. This is in line with typical tenancy terms of 3 years, as per the current market
practice in Malaysia.
For Year Ending 31
December
No. of tenancies
expiring
NLA of Tenancies
Expiring (sq ft)
NLA of Tenancies
Expiring as % of
Total NLA
% of Total Monthly
Rental Income*
FY 2016
FY 2017
FY 2018
FY 2019
176
152
129
2
567,805
666,924
451,306
26,737
32%
38%
25%
2%
37%
38%
25%
0.5%
*
Based on monthly rental income for December 2015
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
66
SUSTAINABILITY REPORT
68 Growing Sustainability at
Frasers Centrepoint Trust
69 Key Highlights for FY2016
70 About This Report
71 What’s Important To Us
74 Engaging Our Stakeholders
75 Managing Sustainability
76 Governance
77 Environment
81 People
84 Local Communities
92 GRI Content Index (G4 Core)
SUSTAINABILITY REPORT
GROWING SUSTAINABILITY AT
FRASERS CENTREPOINT TRUST
Sustainability is an important aspect of our business,
and we are pleased to present our second Sustainability
Report. As a member of the Frasers Centrepoint Group,
FCT’s strategic sustainability initiatives are aligned
with that of Frasers Centrepoint Limited (FCL) and
incorporates the interest of FCT’s stakeholders.
Our sustainability programme is supported by relevant
policies and standard operating procedures (SOP)
established by FCAM (the Manager of FCT) and FCL.
Compliance with these policies and SOPs is effected
through regular staff training, periodic reviews by the
senior management and the board as well as through
internal audits.
We worked closely with our sponsor FCL in growing
our engagement in sustainability initiatives at Frasers
Centrepoint Group. Our Sponsor, FCL, became a
signatory to the United Nations Global Compact
(UNGC) in February 2016. In doing so, FCL joins more
than 8,000 companies and 4,000 non-businesses in
this global movement to shape a sustainable future
for the global business community through promoting
responsible business practices. FCT fully supports FCL
in this initiative, and in line with FCL, we have mapped
FCT’s material issues against the relevant SDGs to
assess the performance and to explore opportunities for
further improvements.
As part of the Frasers Centrepoint Group, FCT also
supports FCL’s contributions to the Global Compact
Network Singapore (where FCL is a Gold member) and
the Singapore Green Building Council (where FCL is a
founding member).
Within the Frasers Centrepoint Group, dedicated
sustainability sub-committees for Environment, Health
& Safety and Innovation were also set up under the
Sustainability Steering Committee during the year. FCT
is represented in the sub-committees and participates
actively to support a more comprehensive roll-out of
sustainability initiatives to all business units.
Our report is guided by the GRI G4 guidelines and
we measure our performance in the 10 material
aspects through a set of performance indicators. This
sustainability report sets out the progress we have made
last year. Our approach focuses on identifying in which
areas we can make a difference, to mitigate the impacts
of our properties on the environment as well as creating
a safe and positive working environment.
WE WOULD LIKE TO HEAR FROM YOU [G4-31]
We seek to continuously improve our sustainability
performance and welcome your feedback, which is vital
to help us achieve our aims. Please write to Mr Chen
Fung Leng, Head of Investor Relations & Research, at
fungleng.chen@fraserscentrepoint.com.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
68
SUSTAINABILITY REPORT
KEY HIGHLIGHTS FOR FY2016
RECOGNITION
• Runner-Up Award for the Most Transparent Company (REITs &
Business Trusts Category) at the Securities Investors Association
(Singapore) (SIAS) Investors’ Choice Awards 2016
GOVERNANCE
• No known incident of non-compliance with the codes,
laws and regulations related to anti-corruption, whistle-blowing
and ethical marketing in FY2016
ENVIRONMENT
• 3.7% decrease year-on-year for building energy intensity
• 4.0% decrease year-on-year in GHG emission intensity
• Causeway Point - Named Top 10 Energy Effi cient Buildings
in Singapore 2016 (Retail Building Category), Platinum Green Mark
Standard by the Building and Construction Authority of
Singapore (BCA)
• Causeway Point, Northpoint, Bedok Point, YewTee Point and
Anchorpoint are recipients of the Basic Certifi cation of Water Effi cient
Building by the Public Utilities Board (PUB)
HEALTH AND SAFETY
•
Implemented the OHSAS 18001 and SS506 Part 1: 2009 Occupation
Health and Safety Management Systems at FCT properties
• No reported incident of lost-time injury involving FCAM employees
PEOPLE
• Employees of FCAM attained an average of 68.1 hours of training
per employee, surpassing the target of 40 hours set in FY2015. This
is also a signifi cant improvement from the average of 23.3 hours
attained in FY2015
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
69
SUSTAINABILITY REPORT
ABOUT THIS REPORT [G4-17, G4-28]
This Sustainability Report provides detailed information
about our material issues, as well as our societal and
environmental impacts.
Data disclosed in this sustainability report relates to
all properties owned by FCT, which are located in
Singapore and covers the period from 1 October 2015
to 30 September 2016 (FY2016).
This Sustainability Report continues to be prepared with
reference to international framework for sustainability
reporting, the Global Reporting Initiative’s (GRI) G4 core
requirements as well as GRI’s Construction and Real
Estate Sector disclosures. We intend to seek external
assurance on our sustainability report in the future.
Together with the other information set out in our
Annual Report, this Sustainability Report plays an
integral role in promoting communication and
transparent reporting to our stakeholders.
GRI Principles
How FCT demonstrates this
Stakeholder inclusiveness
We engage and communicate with our stakeholders on an ongoing basis. Our
stakeholders are important to us. We strive to address their concerns and keep
them informed in these aspects.
Sustainability context
Sustainability is in line with our objectives to deliver stable and sustainable
distributions to Unitholders, and to achieve long term growth. We take
references from national and global agendas, such as the Sustainable Singapore
Blueprint and the UN Sustainable Development Goals (SDG), to seek continuous
improvements in sustainability performance. Please see pages 72-73 for mapping
the SDG with our sustainability priorities.
Materiality
The materiality assessment enabled us to identify issues which are key to FCT and
its stakeholders and to report these issues accordingly. Please refer to page 71.
• Completeness
• Balance
This report covers the material issues identifi ed and all the properties of FCT, and
is presented with a balanced and objective perspective. The reporting boundaries
are set out in this page “About This Report”.
• Comparability
• Accuracy and reliability
• Clarity
This report references GRI’s G4 Core requirements and we also take industry
trends into consideration. The same performance metrics have also been used to
ensure the report is comparable, accurate, reliable and clear.
Timeliness
The information presented is in relation to FY2016, in line with the time period of
this Annual Report. The Annual Report is published within 4 months from the end
of our fi nancial year to provide timely information to stakeholders.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
70
SUSTAINABILITY REPORT
WHAT’S IMPORTANT TO US [G4-18, G4-19]
For purposes of reporting, we reviewed our materiality assessment, completed in FY2015, to determine
environmental, social and governance (ESG) issues relevant to our business and our stakeholders. This assessment
was based on the international standards for materiality, GRI and AA1000 principles, as well as the application of
sector-specifi c guidance from the Global Real Estate Sustainability Benchmark (GRESB), the GRI G4 Construction &
Real Estate Sector supplements.
From the materiality assessment, we identifi ed the following 10 material issues in the following categories:
ECONOMIC PERFORMANCE
1. Economic and fi nancial contribution to our business and our
stakeholders
(refer to fi nancial highlights on page 11, Letter to Unitholders on
pages 12-15 and Financial Statements in pages 125-174)
GOVERNANCE
2. Anti-corruption
3. Ethical marketing
ENVIRONMENT
4. Energy use/ climate change
5. Environmental compliance
6. Water use/ conservation
PEOPLE
7. Health and safety
8. Labour/management relations
9. Staff retention and development
10. Local communities
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
71
SUSTAINABILITY REPORT
We have reviewed the SDGs against our material issues and business operations for relevance and alignment and
determined that 7 of them are relevant goals we can contribute meaningfully, to as an organization.
United Nations Sustainable
Development Goals
Material factor
How does FCT address this goal
Health and safety
FCT addresses this goal in several ways:
• Encouraging a healthy and safe work
environmental for our staff, in accordance
to the health & safety policies of Frasers
Centrepoint Group.
• Encouraging staff to participate in the year-
round wellness and health-related activities,
such as the Frasers Health & Safety month in
August 2016.
Energy use and GHG
emissions
We target to reduce our energy intensity by 15%
by FY2025 (baseline FY2015). This is in line with
the Frasers Centrepoint Group’s target.
We continue to monitor our energy consumption
of our properties and improve on our practices
to improve effi ciency of energy use. We take
the opportunity to upgrade or enhance our
equipment to better energy effi ciency during
major equipment replacement cycle or asset
enhancement initiative works (AEI) at our
properties.
Economic & fi nancial
contribution and Labour/
Management relations
FCAM provides employment opportunities and
follows fair employment practices, as formalised
in our Business Conduct and Workplace Safety
policies.
FCT adopts Tripartite Alliance for Fair and
Progressive Employment Practices (TAFEP) in
Singapore. We support the recruitment and reward
of employees based on merit.
The Manager is committed to grow the skills and
knowledge of employees through various training
and development programmes.
Economic & Financial
contribution
We constantly explore new initiatives to enhance
the effectiveness and effi ciency in our business
operations, as well as to collaborate with our
tenants to improve their sales performance.
Goal 3:
Good health and wellbeing
Ensuring healthy lives and promote well-
being for all at all ages.
Goal 7:
Affordable and clean energy
Ensure access to affordable, reliable,
sustainable and modern energy for all.
Goal 8:
Decent work and economic
growth
Promote sustained, inclusive and
sustainable economic growth, full and
productive employment and decent work
for all.
Goal 9:
Industry, Innovation and
Infrastructure
Build resilient infrastructure, promote
inclusive and sustainable industrialisation
and foster innovation.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
72
SUSTAINABILITY REPORT
United Nations Sustainable
Development Goals
Material factor
How does FCT address this goal
Goal 10:
Reduced inequalities
Reduce inequality.
Goal 11:
Sustainable cities and
communities
Make cities and human settlements
inclusive, safe, resilient and sustainable.
Goal 17:
Partnership for goals
Strengthen the means of implementation
and revitalise the global partnership for
sustainable development.
Labour/ Management
relations
At FCAM, our remuneration is based on merit
alone, and we adhere to the TAFEP in Singapore,
which include the pledge to reward employees
fairly based on their ability, performance,
contribution and experience.
• Energy use and GHG
emissions
• Water use/
conservation
This goal encourages sustainable and coordinated
urban development through national policies and
regional development plans. We support building
sustainability initiatives, such as energy and water
effi ciency and waste management. We believe
that our efforts in improving energy effi ciency,
water reduction and waste management efforts
contribute to achieving this goal.
• Economic & Financial
contribution
• Local communities
We are aligned with the FCL group’s policies and
guidelines in supporting global sustainability
awareness.
We work with various partners to give back to
our communities, engaging them and supporting
community projects. These include contribution
of spaces for events sponsorships for community
funds, engagement activities with our shoppers
and tenants, active support for the arts and active
participation in community projects.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
73
SUSTAINABILITY REPORT
ENGAGING OUR STAKEHOLDERS [G4-24, G4-27]
Our stakeholders are important to FCT’s long-term success. We seek to engage stakeholders’ concerns through
multiple forms of engagement, as outlined in the table below:
Key stakeholders
Form of engagement
Key topics
Shoppers
• Shopper surveys
• Focus group study (every 2 years)
• Feedback via online and mobile platforms
such as social media (FaceBook) and FCT/
FCL websites
• Regular shopper events to engage
shoppers and their families
• Meeting the shopping needs of our
shoppers
• Quality of services and facilities
• Providing comfortable shopping
environment and family-friendly
amenities
• Considerations for safety and easy
• Frasers Rewards (loyalty program for
accessibility
shoppers at Frasers malls)
• Feedback forms
• Good connectivity to public
transport
Tenants
• Partnership in promotional events
• Regular tenant feedback meetings
• Maintaining high shopper traffi c
• Competitive rental rates
• Collaboration in marketing and
promotional events
Regulators
Industry associations
• Participation in industry associations
• Compliance with relevant rules and
including REIT Association of Singapore
(REITAS), Investor Relations Professionals
Association (IRPAS), Orchard Road Business
Association (ORBA), Securities Investors
Association (Singapore) (SIAS) and
Singapore Retailers Association (SRA)
• Participation in briefi ngs and consultation
with regulators such as the SGX and MAS
regulations
• Engagement with investors and
unitholders
• Government policies on REITs or
•
Real Estate sector
Issues concerning both short and
long-term interests of the retail
industry in Singapore
Property manager
• Monthly meetings
• Email exchanges
• Key Performance indicators for the
property manager
Investors and
FCT unitholders
•
Investor meetings, quarterly post-results
luncheons and non-deal roadshows
• Business and operations
performance
• Mall tours upon requests
• Annual General Meetings
• Website, annual reports, SGXNET
announcements, presentations slides,
quarterly fi nancial results briefi ngs and
conference calls
• Business strategy and outlook
• Sustainability concerns
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
74
Employees
• Annual Performance appraisals
• Communal sports and activities
• Orientation and training programme
• Compensation and Benefi ts
• Career progression
• Continuous education and skills
organised by FCL Group Human Resources
upgrading
• Regular department meetings
• Family Day
• Annual Dinner and Dance event
• Employee well-being
Community
• Annual Charity Drives and Events
• Donations and sponsorships to charitable
• Helping the needy group in the
community
organisations
• Foster strong community ties and
promote family-values
SUSTAINABILITY REPORT
Infl uencing Our Supply Chain [G4-12]
FCT and FCAM are committed to infl uencing our value
chain in sustainability matters.
Where relevant and practicable, we engage our
property manager and service providers, and
collaborate with them to take actions with positive
sustainability impacts. For example, the switch or
upgrade to environmentally friendly equipment and
materials during AEI and facilities maintenance.
We also require our property manager to ensure that the
service providers who carry out maintenance work and
fi tting-out works in our properties are in compliance with
the relevant statutory requirements and the Workplace
Safety and Health Approved Codes of Practice issued
by the Singaporean WSH Council.
Partnerships and Affi liations
The Manager has memberships to several industry
organisations including the Securities Investors
Association (Singapore) (SIAS), REIT Association of
Singapore (REITAS), Investor Relations Professionals
Association (IRPAS). It works with these organisations in
various aspects to contribute to the real estate and REIT
industry, as well as to the general investor community
and to the public. For example, the Manager became
a member of REITAS as it shares its common objectives
to grow and promote the S-REIT industry; to promote
good corporate governance; and to engage regulators
during the formulation of policies relevant to the
industry, among other objectives. The Manager, as
part of Fraser Centrepoint Group, also participates
in activities organised by Orchard Road Business
Association (ORBA) and Singapore Retailers Association
(SRA).
The Manager supports FCL, in its commitment to
enhance corporate social responsibility initiatives.
MANAGING SUSTAINABILITY [G4-34]
The tone from the top is critical for driving good
sustainability practices throughout FCT and FCAM.
FCAM’s CEO, Dr Chew Tuan Chiong represents FCT in
FCL’s Sustainability Steering Committee (SSC).
We are also represented in the Sustainability Working
Committee (SWC) and the Innovation sub-committee.
Committee
Members
Responsibilities
Sustainability Steering
Committee
• Chairperson: Group CEO
• Members: CFO, Company Secretary,
Chief Human Resources Offi cer and
the CEOs of all FCL’s business units,
including Dr Chew Tuan Chiong, the
CEO of FCAM
Sustainability Working
Committee
• Management representatives from
Finance, Human Resource, Legal, Risk
and Group Communications
• FCAM is a member of the Sustainability
Working Committee
• Drives sustainability strategy
• Reviews performance against each of
our key material issues.
•
Implements sustainability initiatives
• Manages data compilation and analysis
Environmental, Health
& Safety, Innovation
Sub-committees
• FCAM is a member of the Innovation
• Supports initiatives and training
Sub-committee
programs to promote awareness and
culture of innovation in the Frasers
Centrepoint organisation.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
75
SUSTAINABILITY REPORT
GOVERNANCE
We believe that sustainability should be integral to
the corporate governance structure of our business.
We strive to maintain high standards of integrity,
accountability and responsible governance.
Our commitment and efforts in disclosure and
transparency is recognised by our receipt of the Runner-
Up Award for the Most Transparent Company (REITs
& Business Trusts Category) at the Securities Investors
Association (Singapore) (SIAS) Investors’ Choice Awards
2016.
Anti-Corruption, Fraud Prevention and Ethical
Marketing [G4-58, SO3, SO5, PR7]
To grow, we need to continuously refi ne our competitive
advantage and good corporate practices. Anti-
corruption, fraud prevention and ethical marketing are
placed high on our agenda.
We adhere to the Code of Corporate Governance
2012, Code of Advertising Practice, listing rules and
regulations set out by SGX and the MAS Securities
and Futures Act, as well as all other applicable laws
and regulations. FCAM has a zero-tolerance approach
towards corruption and fraud. We adhere with the
corporate policies and SOPs established by FCL to
guide conduct of our employees. Our management
approach is risk-based, and supported by our internal
audit framework.
We have in place an internal audit function established
within the FCL Group to independently examine
and evaluate the activities of FCAM, focusing on the
adequacy and effectiveness of internal controls, risk
management and corporate governance processes.
For further details on our internal audit, please refer to
pages 109-110 of this Annual Report.
In all our engagements with our tenants, suppliers and
customers, we ensure that our communications and
marketing are responsible, clear, timely and accurate.
Information for investors is disclosed in our Annual
Report, our quarterly statements and our investor
presentations. All these documents are publicly
available on our website and on the SGX-ST website.
In addition, we hold post-results briefi ngs and/or
conference calls meetings every quarter and participate
in regular non-deal roadshows and investors meetings.
Corporate Policies
Guidance on:
Code of Business
Conduct
Company values, ethics and conduct in relation to:
Information confi dentiality
• Compliance monitoring
• Record keeping
•
• Confl icts of interest
•
Insider trading
• Relations with key stakeholder
Whistle-Blowing Policy Independent channel to report concerns:
improprieties in fi nancial reporting
•
• professional misconduct
•
irregularities or non-compliance with laws and
regulations.
Made available to/
available at:
Internal Policy
Available at:
www.
fraserscentrepointtrust.
com
Anti-Bribery Policy
Prevention and management of bribery and
corruption
Policy for Disclosure and
Approval of Purchase of
Property Projects
Declaration and approval requirements for any
interested persons, directors and employees of FCL,
purchasing property developed by FCL.
Internal Policy
Internal Policy
Competition Act
Compliance Manual
Compliance with the Competition Act to protect and
promote healthy competitive markets in Singapore.
Internal Policy
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
76
SUSTAINABILITY REPORT
Corporate Policies
Guidance on:
Personal Data Protection
Act Policy
Compliance with the personal data protection (pdp)
act 2012relating to the handling and processing
personal data, complaint handling procedures, and
avenues for employees, customers, suppliers or other
contact persons of fcl to report any concern that the
policy may have been breached
Safeguard the health and safety of all relevant
stakeholders and interested parties within its premises
and providing an environmental friendly and safe
place for them to work in of to conduct their business
Provides guidance on compliance with relevant rules
and regulations
Provides guidance with regard to dealings in FCT
units by directors, offi cers and employees
Provides guidance so that employees of the Manager
are aware of their obligations and responsibilities and
meet the obligations under the relevant Prevention of
Money Laundering and Countering the Financing of
Terrorism regulations
Environment, Health and
Safety Policy
Legal and Regulatory
Compliance Manual
Policy on Dealing
in Units of FCT and
Reporting Procedures
Policy for Prevention
of Money Laundering
and Countering the
Financing of Terrorism
Policy on Outsourcing
Treasury Policy
Provides guidance with regard to adopting sound risk
management practices on outsourcing of services
Provide guidance on the management of treasury
activities
Internal Policy
Internal Policy
Made available to/
available at:
Available at:
www.
fraserscentrepointtrust.
com
Internal Policy
Internal Policy
Internal Policy
Internal Policy
We are pleased to inform that there were no known
incident of non-compliance with the codes, laws and
regulations related to anti-corruption, whistle-blowing
and ethical marketing in FY2016. We target to maintain
zero incidence of non-compliance going forward.
ENVIRONMENT
FCT aligns its goals in environmental sustainability with
that of FCL. As member of the Frasers Centrepoint
Group, FCT supports Singapore’s Intended Nationally
Determined Contributions (INDC) submitted during
the Conference of Parties 21 (“COP21”). Singapore has
pledged to reduce its emission intensity by 36% from
2005 levels by 2030 and to reduce its emissions by 16%
below business-as-usual levels by 2020, with an aim to
stabilise emissions with the aim of peaking around 2030.
FCT also supports the Building & Construction Authority
(BCA)’s second Green Building Master Plan for at least
80% of the buildings in Singapore to achieve the BCA
Green Mark Certifi ed rating by 2030.
FCT’s BCA Green Mark certifi ed properties have
energy effi ciency measures built into their designs and
are subject to energy audits every three years. The
properties in FCT’s portfolio which are BCA Green Mark
certifi ed as at 30 September 2016 are:
• Causeway Point : BCA Green Mark (Platinum)
• Changi City Point : BCA Green Mark (GoldPlus)
• Bedok Point : BCA Green Mark (Gold)
Our environmental results start with the right mind-set,
led by senior management, driven by our project and
property teams, and supported by active involvement of
FCAM employees. Raising awareness continues to be a
company-wide effort.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
77
SUSTAINABILITY REPORT
Energy Use and GHG Emissions – [EN3, EN5, EN6,
CRE1, EN16, EN18, EN19, CRE3]
We recognise that our investors and stakeholders are
increasingly emphasising responsible environmental
management. To ensure we proactively address these
expectations, we continue our efforts in improving
energy effi ciency in the properties in our portfolio.
We actively engage in environmentally responsible
practices through:
• encouraging environment-friendly behavior by all
•
•
employees
improving daily mall operations to encourage the
3Rs – Reduce, Reuse and Recycle
incorporating green design features into our
properties during its asset enhancement (AEI) and
renovation works. For example, we retrofi tted the
chiller plants at Causeway Point during the mall’s
AEI which resulted in signifi cant energy savings of
3.4 million kWh annually. For the ongoing AEI at
Northpoint, we are incorporating many features
to improve water and energy effi ciency and
environment-friendliness. These features include the
introduction of Newater for fl ushing in restrooms
(use of Newater is estimated to account for about
39% of total water consumption of the mall); use of
water-effi cient sanitary wares & fi ttings; use of low
volatile organic compound paint and adhesives;
installation of energy-effi cient LED lamination for
the mall; and provision of meters to detect water
leakages.
With our continuous efforts to drive the effi cient use of
energy, we are pleased to see that our overall building
energy consumption decreased 3.6% year-on-year to
31.7 million kWh, from 32.9 million kWh in FY2015. Our
overall building energy intensity also decreased 3.7% to
200.0 kWh/m2 from 207.7 kWh/m2 in FY2015.
In line with the drop in energy intensity, our GHG
emissions and intensity, decreased to 13.6 thousand
tonnes of CO2e and 86.2 CO2e/m2, respectively.
To demonstrate our commitment to reducing energy
use, we have set a 10-year target with a 15% reduction
by FY2025, from the baseline of FY2015.This is
consistent with FCL’s target.
Environmental Compliance [EN29]
Environmental compliance is a critical aspect of our
business operations, and we make every effort to
ensure that we comply with all rules and regulations. In
FY2016, there was no known incident of non-monetary
sanctions for non-compliance with environmental laws
and regulations.
Building energy consumption
(million kWh)
33.2
32.9
31.7
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0
Building GHG emissions
(thousand tonnes of CO2e)
14.60
14.4
14.2
13.6
14.40
14.20
14.00
13.80
13.60
13.40
13.20
FY2014
FY2015
FY2016
FY2014
FY2015
FY2016
Building energy intensity
(kWh/m2)
209.7
207.7
200.0
300.0
250.0
200.0
150.0
100.0
50.0
0
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
78
GHG emission intensity
(kilograms of CO2e/m2)
94.00
90.7
89.8
86.2
93.00
92.00
91.00
90.00
89.00
88.00
87.00
86.00
FY2014
FY2015
FY2016
FY2014
FY2015
FY2016
Note:
The building energy intensity (in kWh/m2) for FY2014 has been re-stated from 209.8 to 209.7 due to re-calculation of GFA for one of the
properties, The GHG emission intensity (in kilograms of CO2e/m2) for FY2014 and FY2015 have been re-stated from 93.4 to 90.7 and from
92.5 to 89.8, respectively, due to re-calculation of GFA for one of the properties.
SUSTAINABILITY REPORT
TOP 10 ENERGY EFFICIENT BUILDINGS IN SINGAPORE 2016
Retail Building Category – Causeway Point
The Building and Construction Authority of Singapore (BCA) awarded
Causeway Point the Green Mark Platinum Award in 2011. This is further
affi rmed with BCA naming Causeway Point as one of the Top 10 most
energy effi cient retail malls in 2015 and 2016.
Causeway Point
SINGAPORE’S BUILDING
ENERGY BENCHMARKING 2016
This is an annual publication
under the Building & Construction
Authority (BCA) Singapore’s 3rd
Green Building Masterplan. Energy
consumption data and building-
related information are submitted
to BCA on annual basis for analysis
and benchmarking.
The report’s objective is to inform
owners and their operation teams
on how well they have performed
and to spur them to initiate and
implement progress to improve
energy effi ciency and reduce energy
consumption.
The report ranks the Top 10 energy
effi cient buildings in fi ve categories
– Government offi ce buildings,
private offi ce buildings, hotels, retail
buildings and mixed developments.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
79
SUSTAINABILITY REPORT
Water Use/ Conservation [EN8, CRE2]
Water scarcity is a globally pressing issue, especially so
in Singapore, which is a net importer of water. We strive
to reduce the water consumption and water intensity of
our malls. Our malls are fi tted with many water-saving
features such as:
tap fl ow restrictors/regulators
•
•
low-fl ush water system
• waterless urinal system
• Public Utilities Board (PUB)’s Water Effi ciency
Labelling Scheme (WELS) approved fi ttings
• use of NEWater and Air Handling Unit (AHU)
condensate for non-portable purposes.
Five of our malls, Causeway Point, Northpoint, Bedok
Point, YewTee Point and Anchorpoint have achieved
PUB’s Water Effi cient Building (Basic) certifi cation.
For FY2016, our total volume of water used and our
building water intensity increased marginally, mainly due
to a increase in overall shopper traffi c.
In line with FCL, to demonstrate our commitment to
reducing water use, we have set a target to reduce
our water intensity by 15% on the FY2015 baseline by
FY2025.
Waste Management [EN23]
Waste minimisation and recycling at commercial
buildings
With Singapore’s limited land space, there are space
constraints around managing waste. Waste generation
and disposal remain as one of the top environmental
issues in the country.
We track the activities in waste disposal and recycling
at our malls, and implements initiatives to reduce our
ecological footprint brought about by waste generation.
We constantly look for ways to spread the awareness
of Reduce, Reuse and Recycle (3Rs) in our operations,
where a large part of the waste is generated by
shoppers and tenants.
In FY2016, the total weight of non-hazardous waste
and from our malls increased by about 1% from last
year. The increase is likely due to an increase in overall
shopper traffi c at our mall, and partially mitigated by
our efforts in promoting the 3Rs. Total waste sent for
recycling and the related intensity, decreased from
422 tonnes to 356 tonnes, and from 2.7 kg/m2 to
2.3 kg/m2, respectively, in FY2016.
Recycling bins have been made available at our malls
to make it convenient to shoppers and tenants to
recycle. Retail tenants have also been encouraged to
segregate their waste before disposal to improve their
recycling participation. We have also invited National
Building water volume
(m3)
Total weight of non-hazardous waste collected
(tonnes)
507,986
481,512
488,628
600,000
500,000
400,000
300,000
200,000
100,000
0
7,291
7,397
7,600
7,400
7,200
7,000
6,800
6,600
6,400
6,851
FY2014
FY2015
FY2016
FY2014
FY2015
FY2016
Building water intensity
(m3/m2)
Total weight of waste sent for recycling
(kilograms)
3.2
3.0
3.1
5
4
3
2
1
0
421,993
356,026
296,810
500,000
400,000
300,000
200,000
100,000
0
FY2014
FY2015
FY2016
FY2014
FY2015
FY2016
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
80
SUSTAINABILITY REPORT
Environment Agency (NEA) to deliver a lunchtime talk
to staff and tenants on waste minimization to drive the
message on the 3Rs practices.
We will continue to work on improving recycling efforts
at our malls, which includes ramping up recycling of
other materials such as plastics and metals.
The F&B businesses in our shopping malls generate
signifi cant amount of food waste, we have been
evaluating initiatives to promote the reduction and
recycling in this area.
PEOPLE
Health and Safety [LA5, LA6]
FCAM adheres to the Workplace Health and Safety
Policy of the Frasers Centrepoint Group, the relevant
safety rules and regulations to provide a safe
environment at our properties for our employees,
tenants, shoppers and stakeholders. We implemented
the OHSA18001 and SS506 Part1:2009 occupation
health and safety management systems at our
properties.
In addition to reporting workplace incidents relating to
FCAM employees, we also include reports of workplace
incidents at our properties which involve employees
of our property manager, Frasers Centrepoint Property
Management Services Pte Ltd. (FCPMS)
There were no reported incident of lost-time injury
involving FCAM employees during FY2016 (FY2015:
0). However, there were three lost-time injury incidents,
which involved employees of our property manager,
FCPMS (FY2015: 0). The total number of lost days and
lost-time injury rate related to these incidents were 98
days and 3.1 injury per million man hours, respectively.
The resulting severity rate for FY2016 was 101 lost-
days per million man hours (FY2015: 21.6 lost-days per
million man hours). The data reported is in line with
requirements of Ministry of Manpower, Singapore. Lost-
time injury refers to injury that results in medical leave of
more than 3 days.
Labour/ Management Relations [LA4]
FCAM complies with the employment policies of
FCL, including policies on fair and equal employment
based on meritocracy which is in the Code of Business
Conduct. We support FCL’s participation in the Tripartite
Alliance for Fair and Progressive Employment Practice
(TAFEP), and is committed to adopting TAFEP’s fi ve
key principles of fair employment practices. We are
also guided on fair employment practices by FCL’s
membership in the Singapore National Employer
Federation (SNEF).
Employee Profi le by Age Group
14.3%14.3%
2 employees aged
50 and above
85.7%85.7%
12 employees aged
30-49
=> 50 years old
30-49 years old
Employee Profi le by Job Type
14.3%
2 non-executives
85.7%85.7%
12 executives
Non-executive
Executive
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
81
Note: Contract staff not included due to contracts being one year or less and contract staff not making up a substantial portion of the workforce.
SUSTAINABILITY REPORT
Employee Profi le by Gender
28.6%28.6%
4 male employees
71.4%71.4%
10 female employees
Male
Female
Employee Profi le by Nationality
100%
14 employees who
are Singaporeans
Singapore
Others
Staff Retention and Development
[LA1, LA9, LA11]
As of 30 September 2016, FCAM has a total of 14
employees, not including contract staff, with 1 new hire
and 2 resignations during the year.
Training and skills development for FCAM employees
are facilitated by FCL’s HR department, and assessed by
the supervisors against the requirements for Continuing
Education of Capital Markets Services Representatives
to ensure compliance. FCL’s HR department publishes
periodic comprehensive learning directory for all FCL
staff and staff may also request to attend training
courses not covered by this learning directory. The
average duration of training per FCAM employee
in FY2016 increased to 68.1 hours from 23.3 hours
in FY2015. Further breakdown of the train data is as
follows:
Average training hours per employee by gender:
- Male: 54.8 hours per year
- Female: 73.5 hours per year
Average Training Hours Per Employee by Gender
(hours)
Average training hours per employee by job type:
54.8 hours
54.8 hours
per year
- Executive: 74.1 hours per year
- Non-Executive: 32.5 hours per year
73.5 hours
per year
Male
Female
Average Training Hours Per Employee by Job Type
(hours)
FCAM employees participate in the year-round staff
wellness programme organised by FCL’s Corporate
Wellness Committee. The programme is planned
around team building, personal development and
health according to the motto “Make Wellness Part
of Your Life: Regular Exercise. Eating Right. Staying
Positive”.
32.5 hours
32.5 hours
per year
74.1 hours
74.1 hours
per year
Our employees also participate in social events such
as the Annual Dinner and Dance, Family Day, Health
Screening, fi tness activities such as walk/jog and yoga.
Non-executive
Executive
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
82
Note: Contract staff not included due to contracts being one year or less and contract staff not making up a substantial portion of the workforce.
SUSTAINABILITY REPORT
Property-level Programme
To ensure that all Frasers Centrepoint staff are engaged
in the H&S month, all business units carried out
H&S activities relevant to their operations at each of
our property/project under management. Activities
included:
- Workplace safety workshops
- First-aid, CPR, fi re extinguisher trainings
- Emergency and fi re drills
- Health screening and wellness talks
- Fitness and sports events
- Workplace H&S quiz and discussion
- Massage sessions for staff
- Non-routine safety checks
Frasers Global Running Challenge
The Frasers Global Running Challenge was organised as
a Group-wide activity. The event challenges Frasers staff
globally to accumulate their running mileage for the
month of August. The inaugural challenge concluded
with execellent response from 114 staff from Frasers
properties worldwide with total accumulated mileage
of 4,139km.
The inaugural H&S outreach programme, engaged
approximately 5,200 staff (including contractors’
staff). To further inculcate the H&S culture at Frasers
Centrepoint, the Group will dedicate every August as
Frasers Health and Safety Month.
TOUR DE FRASER – A VIRTUAL TOUR
One of the most interesting activities from the
properties this year would be Tour de Fraser
by Fraser Suites Glasgow. The team, using a
stationary bike cycled 825km, the distance
between all Fraser properties in the UK. This
was aimed at promoting both teamwork and
exercise. The team achieved the distance in 30
hours, burning an impressive 15,500 calories (the
equivalent of 60 Big Macs).
FRASERS HEALTH & SAFETY MONTH 2016
FCL organised the company-wide inaugural Frasers
Health & Safety (H&S) Month in August 2016 with the
aim of reinforcing the importance of H&S in the Frasers
culture, as well as to raise awareness on H&S issues
amongst its staff. The theme was “See Something, Do
Something”, which revolves around the broad messages
of raising alertness among staff, for the Frasers family
to take ownership of safety around them, while taking
steps to stay healthy.
A series of H&S-related activities were carried out
during the month, including activities for the global staff
force such as the Frasers Global Running Challenge, as
well as property-level events such as safety inspection
and talks, fi re drills, fi rst-aid demo and fi tness sessions.
Corporate Offi ce Outreach Programme
Frasers H&S Carnival was held at FCL’s corporate
offi ce, where it featured H&S awareness activities, and
bazaar with vendors selling health- and wellness-related
merchandises. A free health screening was also held
for all staff where blood tests and measurements of the
body condition (e.g. blood pressure, Body Mass Index)
were provided. Health improvement tips were given
to staff.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
83
SUSTAINABILITY REPORT
LOCAL COMMUNITIES [S01]
Launch of “Play it Forward” at Causeway Point
We believe in giving back to the local communities
who have supported our growth through community
initiatives and investment. We do this in several ways,
through fundraising, organising community engagement
at our malls, involving our neighbourhoods and
providing spaces at our malls for the events.
Giving back to the community
In conjunction with Frasers Centrepoint Mall‘s Christmas
campaign “Spread the Christmas Cheer”, a year-long
initiative, the fundraising event “Play It Forward”
was launched in partnership with Community Chest.
The objective of the event is to raise funds for Family
Service Centres, which serve as community-based focal
points of family resources that provide social support
for families facing diffi culties. This gives shoppers an
opportunity to support families in need by donating
a minimum of $5 to experience 15 minutes of play in
Singapore largest charity ball pool. Frasers Centrepoint
Malls will match shoppers’ donations dollar-for-dollar for
up to $30,000. Under the Care & Share Movement by
the government, total donations till 31 March 2016 will
also be matched dollar-for-dollar by the Government.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
84
Children enjoying in a pool of balls at the “Play it Forward” event
at Northpoint
Sharing our space and connecting with our
community
Our malls actively support community events for
communal and family events, in which we provide space
at our atrium for events that our shoppers and their
families can enjoy and bond. Our malls organise regular
festive celebration and awareness outreach events.
Some example of the events were the Chinese New
Year, Children’s Day celebrations and the Mid-Autumn
Festival.
SUSTAINABILITY REPORT
Care and Share event at YewTee Point in January 2016
Children’s Day party at Northpoint
YewTee Point collaborated with the YewTee Grassroots
Organisations to organise the YewTee Festive Care
and Share initiative, in celebration of the Chinese New
Year. This was a donation drive to provide assistance to
low-income individuals and families within the vicinity of
YewTee and Choa Chu Kang. Donations in cash and kind
were contributed by staff members from YewTee Point’s
centre management offi ce, tenants, and event sponsors.
The half-day event was graced by Advisor to YewTee
GROs, Mr. Alex Yam, MP for Choa Chu Kang GRC, who
presented the Care and Share packages to families.
During Mid-Autumn Festival, Bedok Point also
collaborated with People’s Association and Kampong
Chai Chee Community Centre to invite the community
living within the 2-5km vicinity of Bedok Point to
celebrate together through organising a Mid-Autumn
Mall Walk with lanterns, art and craft workshops,
magic shows and lucky draws for residents. Mr Lee Yi
Shyan, MP for East Coast GRC, opened the event and
presented the lucky draw prizes to winners.
Supporting the community
Changi City Point continues to sponsor the venue
space for the event “An Estatic Vision”, an annual art
exhibition organised by Very Special Arts Singapore
(VSA Singapore) to showcase artworks by artists with
special needs. This event featured more than 100 pieces
of paintings by artists from the VSA Singapore, and it is
known to be one of the largest platform for these artists
to achieve fi nancial independence through art.
Changi City Point also partnered with the Yellow Ribbon
Project (YRP) in arranging for an advertising vehicle
to move around around Singapore to increase the
general public’s awareness on the rehabilitation and
reintegration of ex-offenders, and how they can support
the ex-offenders and their families in the transformation
journey.
“An Estatic Vision” held at the Changi City Point this year
Visitors appreciating the artworks at “An Estatic Vision” art exhibition
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
85
Participating FCT Malls and
Contribution
Causeway Point, Northpoint,
YewTee Point
- Sponsorship of event
space
- Collaborating partner
- Cash donation
SUSTAINABILITY REPORT
Event
Event Description
“Play It Forward at
Frasers Centrepoint
Malls”
22 November 2016
15 - 11 December 2016
This is a year-long fund raising campaign by
Frasers Centrepoint Mall in partnership with the
Community Chest. This is a Roving Charity Event
at Five Malls: Causeway Point, Northpoint, YewTee
Point, Eastpoint Mall and Waterway Point
It aims to raise funds for 5 Family Services Centres
(Care Corner Family Service Centre (Woodlands),
Fei Yue Family Service Centre (Yew Tee), Punggol
Family Service Centre, South Central Community
Family Service Centre, TRANS Family Service
Centre (Bedok)). These Family Services Centres
serve as community-based focal points of family
resources that provide social support for families
facing diffi culties.
The event provides opportunity for shoppers to
contribute to charity by donating a minimum of
$5 to experience 15 minutes of play in Singapore
largest charity ball pool, which measures 8m by 8m
wide and 1m in depth and contains over 100,000
colourful balls.
Frasers Centrepoint Malls will match shoppers’
donations dollar-for-dollar for up to $30,000. Under
the Care & Share Movement by the government,
total donations till 31 March 2016 will also be
matched dollar-for-dollar by the government.
Mid-Autumn Festival
2016
25 September 2016
Bedok Point collaborated with People’s Association
and Kampong Chai Chee Community Centre to
invite residents within vicinity of Bedok Point to
celebrate the Mid-Autumn Festival. As the co-host
for the celebration, they organised a Mid-Autumn
Mall Walk with lanterns, art and craft workshops,
magic shows and lucky draws for residents.
Bedok Point
- Co-Host of the event
- Sponsorship of event
space
- Sponsorship of lucky draw
prizes, food and goodie
bags
MP, Lee Yi Shyan was invited for the opening of
the event and to giveaway the lucky draw prizes to
winners.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
86
SUSTAINABILITY REPORT
Event
Event Description
Very Special Art (VSA)
Annual Exhibition
22 - 28 August 2016
This is an annual fund raising event by the Very
Special Arts Singapore Ltd (VSA Singapore),
a charity affi liated to the National Council of
Social Service in Singapore and Very Special
Arts International in the United States. The VSA
Singapore provide access and opportunities for
persons with disabilities to the arts for enjoyment
and integration into society. VSA also promotes the
educational, social, rehabilitative and therapeutic
benefi ts of visual, performing and literary arts.
The exhibition, “An Ecstatic Vision”, featured
more than 100 pieces of paintings that showcases
artworks by artists with special needs. This is
also one of the largest platform for these artists
to achieve fi nancial independence through
art making. The public can show support by
purchasing artworks.
Participating FCT Malls and
Contribution
Changi City Point
- Sponsorship of event
space
365 Cancer Prevention
Society
8 - 14 August 2016
This is an awareness event held at Anchorpoint
for the 365 Cancer Prevention Society (365 CPS),
a society with approved Institution of Public
Character (IPC) status, registered under Singapore’s
National Council of Social Service. 365 CPS’s
mission is to serve the community through cancer
prevention measures.
Anchorpoint
- Sponsorship of event
space
APPCO Fundraising
and Awareness Events
28 July - 3 August 2016
2 - 8 June 2016
24 - 30 March 2016
12 - 18 November 2015
YewTee Point regularly sponsors spaces at the
mall for the fundraising and awareness building
projects by APPCO Group Asia, which is one of
the largest face-to-face donor recruitment agency
globally. Since 2002, Appco Group Asia has raised
US$7 billion in donations for charity clients across
the region. (source: http://www.appcogroup.asia/
industry-fundraising)
YewTee Point
- Sponsorship of event
space
JP Morgan Charity
Event
15, 22, 29 July 2016
The JP Morgan “Step for Hunger” Initiative is a
fund raising event hosted at Changi City Point. This
initiative aims to raise funds for the less fortunate
benefi ciaries and helped to empower charity
organizations to give back to their community.
Changi City Point
- Sponsorship of event
space
Guide Dog Association
of the Blind (GDAB)’s
10th Anniversary -
“Journeys in the Dark”
10 July 2016
This event is in celebration of GDAB’s 10th
Anniversary, “Journeys in the Dark” at Causeway
Point showcased the special relationship between
the Visually Impaired and their Guide Dogs, and
GDAB’s efforts to empower the Visually Impaired
through their Guide Dog and Orientation &
Mobility programmes. Through this event, GDAB
hopes to inspire the public and business owners to
embrace these Guide Dog teams and play a part
by helping to forge more of these relationships.
Causeway Point
- Sponsorship of event
space
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
87
SUSTAINABILITY REPORT
Event
Event Description
Participating FCT Malls and
Contribution
Singapore Youth
Festival 2016 –
Celebrations at the
malls
9 July 2016
This event, held at Causeway Point, celebrates the
50th anniversary of the Singapore Youth Festival
(SYF)
Causeway Point
- Sponsorship of event
space
Themed YOUTHforia! SYF 2016 was a meaningful
and vibrant celebration of both the SYF’s proud
50-year heritage and the vitality of our youths.
Street Culture was the theme at Causeway Point.
Audience were treated to a day of all things street,
ranging from art to dance, fashion and music.
Bone Marrow Donor
Programme
This is a Bone Marrow Donor Programme (BMDP)
fund raising event hosted at Anchorpoint.
Anchorpoint
- Sponsorship of event
space
27 June - 3 July 2016
28 December 2015
- 3 January 2016
The event aims to educate the public about bone
marrow transplants and how it can save lives.
The BMDP was set up to build Singapore’s national
register of volunteer bone marrow donors.
Privilege Enterprise
Group Holdings
Pte Ltd
1 - 30 June 2016
14 - 20 December 2015
1 - 13 December 2015
Children Cancer
Foundation Event
(Kids Fiesta)
20 - 26 June 2016
This is an awareness building event by the Privilege
Enterprise Group Holdings Pte Ltd (PEG), a social
enterprise to help the low income, underprivileged
families, elderly, single mums and youths from
disadvantaged families, to earn an income to
support themselves and/or family.
Anchorpoint
- Sponsorship of event
space
Changi City Point
- Host of the Kid’s
Adventure event
- Sponsorship of event
space
This is a fund raising event for the Children Cancer
Foundation.
With the support of The Children’s Cancer
Foundation & Children’s Society of Singapore,
Changi City Point hosted the event called “Kid’s
Adventure”. The event focused on three specifi c
elements namely “Mind”, “Lifestyle” and “Health
& Wellness” of today’s children, realising individual
needs.
This event is in recognition of the United Nation’s
“Universal Children’s Day” & World Geneva
“International Children’s Day”.
Kids Adventures in
support of Children’s
Cancer Foundation &
Children’s Society of
Singapore
6 - 12 June 2016
This is an exhibition event held at Anchorpoint
for the Children’s Cancer Foundation & Children’s
Society of Singapore. The aim was to increase
awareness about Children’s Cancer in Singapore, in
collaboration with
Children’s Cancer Foundation and/or Children’s
Society of Singapore.
Anchorpoint
- Sponsorship of event
space
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
88
SUSTAINABILITY REPORT
Event
Event Description
Drone Activity with
kids from Singapore
Children Society
This event was organised for the under-privileged
kids from the Singapore Children Society residing
in Yishun & Woodlands.
6 June 2016
50 children from Singapore Children Society were
invited to spend half a day at Causeway Point and
experience drone activities. Goodie bags fi lled with
mini drones, restaurant vouchers and Causeway
Point gift cards were presented to all children as
memento.
Participating FCT Malls and
Contribution
Causeway Point
- Sponsorship of event
space
- Sponsorship of drone
activity and goodie bags
Geng Sihat Sihat Selalu
(The Healthy Gang)
by National Kidney
Foundation (NKF)
29 May 2016
This event is a fi nale Finale of the television
program on Channel Suria, which aims to promote
healthy living and share real-life stories of patients
going through dialysis. Mass exercise, cooking
demonstration and performance by local artistes;
Taufi k Batisah and Sufi e Rashid were part of the
program.
Causeway Point
- Sponsorship of event
space
Dumpling Festival
2016
29 May 2016
Bedok Point collaborated with People’s Association
and Kampong Chai Chee Community Centre,
Rivervale RC and Fengshan RC to host Dumpling
Festival celebration with the community. They
organised art and craft workshops, magic shows
and a lucky draw for residents and shoppers living
within a 2-5km vicinity of the mall.
Bedok Point
- Sponsorship of event
space
- Sponsorship of lucky draw
prizes, food and goodie
bags
National Heritage
Board – Deliciously
Singaporean Exhibition
by NHB
15 - 21 April 2016
Bedok Point collaborated with National Heritage
Board to showcase the ‘Deliciously Singaporean’
Exhibition in their atrium during Singapore
Heritage Festival 2016. It brought greater
awareness to the history and origins of Singapore’s
local dishes. An estimated 85 shoppers also
attended Bedok Point’s Rooftop Movie screening
in collaboration with the National Heritage Board.
The screening featured two of Singapore’s old local
fi lms, and shoppers were treated to popcorn and
drinks sponsored by the mall.
Bedok Point
- Sponsorship of event
space
- Sponsorship of food and
movie screening
Remembering
Mr Lee Kuan Yew
Memorial
23 March 2016
This is an event to commemorate the late
Mr Lee Kuan Yew. Ministers, MPs, community
groups and north zonal residents came together
to show respect for the Singapore leader with a
minute of silence and performances from schools
and community groups. An event that also
highlights plans for Singapore for the next 50 years.
Causeway Point
- Sponsorship of event
space
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
89
SUSTAINABILITY REPORT
Event
Event Description
Special Olympics Asia
Pacifi c
7 - 13 March 2016
9 - 15 November 2015
This is an awareness building event by the Special
Olympics Asia Pacifi c Ltd., a Singapore registered
charity under the National Council of Social
Service.
Special Olympics, founded in 1968, is a grassroots
community Movement dedicated to empowering
and transforming the lives of people with
intellectual disabilities, giving them the opportunity
to become contributing members of society.
Participating FCT Malls and
Contribution
Anchorpoint
- Sponsorship of event
space
YewTee Care & Share
31 January 2016
This is a donation drive that aims to benefi t the low
income individual and families within the YewTee
and Choa Chu Kang vicinity.
YewTee Point
- Sponsorship of event
space
- Contribution by YewTee
Point staff
The Yew Tee Citizens’ Consultative Committee,
Yew Tee Family Life Champion and YewTee Point
collaborated together with the Yew Tee Grassroots
Organisations to organise the Yew Tee Festive Care
and Share initiative held at YewTee Point on 31
January 2016, in conjunction with the Chinese New
Year celebrations.
Staff of YewTee Point’s centre management offi ce
also contributed money to buy recycle bags for
the groceries which was handed out to low-income
individuals and families. Tenants of YewTee Point
also contributed to the event.
The half-day event was graced by Advisor
to YewTee GROs, Mr. Alex Yam, Member of
Parliament for Choa Chu Kang GRC.
Bone Marrow Donor
Event
This is a Bone Marrow Donor Programme (BMDP)
fund raising event hosted at Changi City Point
Changi City Point
- Sponsorship of event
space
11 - 17 January 2016
The event aims to educate the public about bone
marrow transplants and how it can save lives.
The BMDP was set up to build Singapore’s national
register of volunteer bone marrow donors.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
90
SUSTAINABILITY REPORT
Event
Event Description
Participating FCT Malls and
Contribution
Yellow Ribbon
Community Truck
23 - 25 November 2015
This is a Yellow Ribbon Project (YRP) event with
the objectives to engage the community, to create
greater awareness and to educate the public on
the rehabilitation and reintegration of ex-offenders.
Changi City Point
- Co-organiser of the
advertising truck
- Sponsorship of event
space
It also shows how the public can support the ex-
offenders and their families in the transformation
journey.
YRP and Changi City Point organised an advertising
truck that travelled around Singapore to bring
awareness to the general public about YRP. The
public were able to board the truck to view YRP’s
exhibits.
Republic Polytechnic
Pushcart Challenge
19 - 20 November 2015
This is a project by the students in Social Enterprise
Management from the Republic Polytechnic
students to collaborate with secondary schools
to raise awareness of social causes and make
impact to the community. Students from various
schools manage push carts and sales to promote
entrepreneurship and team work.
Causeway Point
- Sponsorship of event
space
Celebrate Children’s
Day with the
Community
8 October 2015
Our staff from Northpoint Centre Management
Offi ce, together with the volunteers from Nee
Soon East Community Club – Women Executive
Committee (WEC) celebrated Children’s Day on 8
October with 42 children from low-income families
in Yishun, hosted at Northpoint’s Level 1 Atrium.
Northpoint
- Sponsorship of event
space
- Sponsorship of magic
show, entertainment and
goodie bags
Children from low-income families in Yishun were
treated to a magic show, delectable refreshments
as well as goodie-bags.
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
91
SUSTAINABILITY REPORT
GRI CONTENT INDEX (G4 CORE)
GENERAL STANDARD DISCLOSURES
STANDARD DISCLOSURE TITLE
STRATEGY AND ANALYSIS
G4-1
Statement from the most senior decision-
maker of the organisation about the relevance
of sustainability to the organisation and the
organisation’s strategy for addressing sustainability
ORGANISATIONAL PROFILE
G4-3
Name of the organisation
PAGE REFERENCE
Letter to Unitholders, pg12-15
Corporate Information in the inside back
cover
G4-4
G4-5
G4-6
Primary brands, products, and services
About Frasers Centrepoint Trust, pg 2
Location of the organisation’s headquarters
About Frasers Centrepoint Trust, pg 2
Number of countries where the organisation
operates, and names of countries where either
the organisation has signifi cant operations or that
are specifi cally relevant to the sustainability topics
covered in the report
Corporate Information in the inside back
cover
About Frasers Centrepoint Trust, pg 2
G4-7
Nature of ownership and legal form
About Frasers Centrepoint Trust, pg 2
G4-8
Markets served (including geographic breakdown,
sectors served, and types of customers and
benefi ciaries)
Structure of Frasers Centrepoint Trust, pg 3
About Frasers Centrepoint Trust, pg 2
G4-9
Scale of the organisation
About Frasers Centrepoint Trust, pg 2
Staff Retention and Development, pg 82
G4-10
a. total number of employees by employment
Staff Retention and Development, pg 82
No substantial work is performed by workers
who are legally recognised as self-employed.
there is no signifi cant variation in employment
numbers.
contract and gender
b. total number of permanent employees by
employment type and gender
c. total workforce by employees and supervised
workers and by gender
d. total workforce by region and gender
e. report whether a substantial portion of the
organisation’s work is performed by workers who
are legally recognised as self- employed, or by
individuals other than employees or supervised
workers, including employees and supervised
employees of contractors
f. any signifi cant variations in employment
numbers (such as seasonal variations in
employment in the tourism or agricultural
industries)
G4-11
Employees covered by collective bargaining
agreements
There are no collective bargaining
agreements in place.
G4-12
The organisation’s supply chain
Infl uencing Our Supply Chain, pg 75
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
92
SUSTAINABILITY REPORT
G4-13
Signifi cant changes during the reporting period
regarding the organisation’s size, structure,
ownership, or its supply chain
None
G4-14
Whether and how the precautionary approach or
principle is addressed by the organisation
Risk Management, pg 39
Corporate Governance, pg 107
FCT does not use the Precautionary approach
in when managing risk, however, our
management approach is risk-based, and
underpinned by our internal audit framework.
G4-15
G4-16
Externally developed economic, environmental
and social charters, principles, or other initiatives
to which the organisation subscribes or which it
endorses
Governance, pg 76
Environment, pg 78
People, pg 81
Memberships of associations (such as industry
associations) and national or international advocacy
organisations
Engaging Our Stakeholders, pg 74-75
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
All entities included or not included in organisation’s
fi nancial statements
About This Report, pg 70
Process for defi ning report Content
What’s Important To Us, pg 71
G4-17
G4-18
G4-19
G4-20
The material aspects identifi ed in the process for
defi ning report content
For each material aspect, aspect Boundary within
the organisation
G4-21
Aspect Boundary outside the organisation
G4-22
Effect of any restatements of information provided
in previous reports, and the reasons for such
restatements
What’s Important To Us, pg 71
All the 10 identifi ed material issues impact
both inside and outside the organisation,
with the exception of Labour-management
relations and Staff retention and
development, which are internally focused.
All the 10 identifi ed material issues impact
both inside and outside the organisation,
with the exception of Labour-management
relations and Staff retention and
development, which are internally focused.
Restatement for building energy intensity
for FY2014, and GHG emission intensity
due to re-calculation of GFA for one of the
properties, pg 78
G4-23
Signifi cant changes from previous reporting periods
in the scope and aspect Boundaries
No signifi cant changes.
STAKEHOLDER ENGAGEMENT
G4-24
G4-25
G4-26
G4-27
Stakeholder groups engaged by the organisation
Engaging Our Stakeholders, pg 74-75
Basis for identifi cation and selection of stakeholders
with whom to engage
We have selected these stakeholders based
on their interest in our business.
Approach to stakeholder engagement, including
frequency of engagement by type and by
stakeholder group
Key topics and concerns raised through stakeholder
engagement, and how the organisation has
responded
Engaging Our Stakeholders, pg 74-75
Engaging Our Stakeholders, pg 74-75
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
93
SUSTAINABILITY REPORT
REPORT PROFILE
G4-28
G4-29
G4-30
G4-31
G4-32
G4-33
Reporting period for information provided
About This Report, pg 70
Date of most recent previous report
Our previous sustainability report was
published for our last fi nancial year - FY2015
Reporting cycle
About This Report, pg 70
Contact point for questions regarding the report or
its contents
We Would Like To Hear From You, pg 68
Report on ‘In accordance’ option, Gri Content
Index, reference to external assurance
About This Report, pg 70
Policy and current practice with regard to seeking
external assurance for the report
About This Report, pg 70
G4-34
Governance structure of the organisation
Managing Sustainability, pg 75
Governance, pg 76
Governance, pg 76
Anti-Corruption and Fraud Prevention, pg 76
G4-58
Internal and external mechanisms for reporting
concerns about ethical and lawful behaviour, and
matters related to organisational integrity, such
as escalation through line management, whistle-
blowing mechanisms or hotlines
SPECIFIC STANDARD DISCLOSURES
CATEGORY: ECONOMIC
ASPECT: ECONOMIC PERFORMANCE
G4-DMZ Generic Disclosures on Management approach
Operations & Financial Review, pg 30
Financials, pg 119-174
G4-EC1
Direct economic value generated and distributed
Operations & Financial Review, pg 30
G4-EC3
Coverage of the organisation's defi ned benefi t plan
obligations
Financials, pg 119-174
Labour/Management Relations, pg 81
Our employees are covered by Singapore’s
mandatory social security savings plan, the
Central Provident Fund (CPF).
CATEGORY: ENVIRONMENTAL
ASPECT: ENERGY
G4-DMA Generic Disclosures on Management approach
Environment, pg 77-80
G4-EN3
Energy consumption within the organisation
Energy Use and GHG Emissions, pg 78
Energy Use and GHG Emissions, pg 78
No onsite production of electricity,
no non-metered sources
G4-EN5
Energy intensity
Energy Use and GHG Emissions, pg 78
G4-EN6
Reduction of energy consumption
Energy Use and GHG Emissions, pg 78
G4-CRE1 Building energy intensity
Energy Use and GHG Emissions, pg 78
ASPECT: WATER
G4-DMA Generic Disclosures on Management approach
Environment, pg 77-80
Water use/Conservation, pg 80
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
94
SUSTAINABILITY REPORT
G4-EN8
Total water withdrawal by source
Water use/Conservation, pg 80
G4-CRE2 Building water intensity
Water use/Conservation, pg 80
ASPECT: EMISSIONS
G4-DMA Generic Disclosures on Management approach
Environment, pg 77-80
G4-EN16
Energy indirect greenhouse gas (GHG) emissions
(scope 2)
Energy Use and GHG Emissions, pg 78
Energy Use and GHG Emissions, pg 78
Main emissions source monitored is
electricity, therefore, CO2 is the only gas
included
G4-EN18 Greenhouse gas (GHG) emissions intensity
Energy Use and GHG Emissions, pg 78
G4-EN19
Reduction of greenhouse gas (GHG) emissions
Energy Use and GHG Emissions, pg 78
G4-CRE3 Greenhouse gas (GHG) emissions intensity from
Energy Use and GHG Emissions, pg 78
buildings
ASPECT: EFFLUENTS AND WASTE
G4-DMA Generic Disclosures on Management approach
Environment, pg 77-80
G4-EN23
Total weight of waste by type and disposal method Waste Management, pg 80
ASPECT: COMPLIANCE
G4-DMA Generic Disclosures on Management approach
Environment, pg 77-80
G4-EN29 Non-monetary sanctions for non-compliance with
Environment, pg 77-80
environmental laws and regulations
CATEGORY: SOCIAL
SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK
ASPECT: EMPLOYMENT
G4-DMA Generic Disclosures on Management approach
People, pg 81
G4-LA1
G4-LA2
Total number and rates of new employee hires
and employee turnover by age group, gender and
region
People, pg 82
Benefi ts provided to full-time employees that are
not provided to temporary or part-time employees,
by signifi cant locations of operation
Labour/Management Relations, pg 81
Temporary or part time employees are not a
signifi cant part of FCT’s workforce.
ASPECT: LABOR/MANAGEMENT RELATIONS
G4-DMA Generic Disclosures on Management approach
People, pg 81
G4-LA4
Minimum notice periods regarding operational
changes, including whether these are specifi ed in
collective agreements. this is currently not covered
in group-wide collective agreements
Labour/Management Relations, pg 81
This is currently not covered in group wide
collective agreements. The notice period
varies.
ASPECT: OCCUPATIONAL HEALTH AND SAFETY
G4-DMA Generic Disclosures on Management approach
People, pg 81
G4-LA5
Workforce represented in formal joint management-
worker health and safety committees that help
monitor and advise on occupational health and
safety programs
Growing Sustainability at Frasers Centrepoint
Trust, pg 68
6
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
95
SUSTAINABILITY REPORT
G4-LA6
Type of injury and rates of injury, occupational
diseases, lost days, and absenteeism, and total
number of work-related fatalities, by region and by
gender
People, pg 81
There were no known incidences of
occupational diseases.
G4-CRE6
Percentage of the organisation operating in verifi ed
compliance with an internationally recognised
health and safety management system
People, pg 81
Implemented the OHSAS 18001 and SS506
Part 1:2009 systems
ASPECT: TRAINING AND EDUCATION
G4-DMA Generic Disclosures on Management approach
Staff Retention and Development, pg 82
G4-LA9
Training per year per employee by gender, and by
employee category
Staff Retention and Development, pg 82
G4-LA10
Programs for skills management and lifelong
learning that support the continued employability
of employees and assist them in managing career
endings
G4-LA11
Employees receiving regular performance and
career development reviews, by gender and by
employee category
SUB-CATEGORY: SOCIETY
ASPECT: LOCAL COMMUNITIES
Staff Retention and Development, pg 82
Staff Retention and Development, pg 82
All FCAM staff receive annual performance
appraisals
G4-DMA Generic Disclosures on Management approach
Local Communities, pg 84-91
G4-SO1
Operations with implemented local community
engagement, impact assessments, and
development programs
ASPECT: ANTI-CORRUPTION
Local Communities, pg 84-91
G4-DMA Generic Disclosures on Management approach
Governance, pg 76-77
G4-SO3
Operations assessed for risks related to corruption
and the signifi cant risks identifi ed
Anti-Corruption and Fraud Prevention, pg
76-77
Our anti-corruption and fraud prevention
policies are relevant and apply to all our
operations.
G4-SO5
Confi rmed incidents of corruption and actions taken Anti-Corruption and Fraud Prevention, pg 76
No known incident of non-compliance with
the codes, laws and regulations related to
anti-corruption,whistle-blowing and ethical
marketing in FY2016, pg 77
SUB-CATEGORY: PRODUCT RESPONSIBILITY
ASPECT: MARKETING COMMUNICATIONS
G4-DMA Generic Disclosures on Management approach
Ethical Marketing, pg 76-77
G4-PR7
Total number of incidents of non-compliance
with regulations and voluntary codes concerning
marketing communications, including advertising,
promotion, and sponsorship, by type of outcomes
No known incident of non-compliance with
the codes, laws and regulations related to
anti-corruption,whistle-blowing and ethical
marketing in FY2016, pg 77
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
96
CORPORATE GOVERNANCE
98
Corporate Governance
Report
97
ANNUAL REPORT 2016 INTRODUCTION
Frasers Centrepoint Trust (“FCT”) is a real estate investment trust (“REIT”) listed on the Main Board of the Singapore
Exchange Securities Trading Limited (the “SGX-ST”). FCT is managed by Frasers Centrepoint Asset Management Ltd.
(“Manager”), which is a wholly-owned subsidiary of Frasers Centrepoint Limited (“FCL”).
The Manager is committed to upholding high standards of corporate governance to preserve and enhance FCT’s asset
value so as to maximise the returns from investments, and ultimately the distributions and total return to unitholders
of FCT (“Unitholders”).
The Manager has general powers of management over the assets of FCT. The Manager’s main responsibility is to
manage FCT’s assets and liabilities for the benefit of Unitholders. It ensures that the business of FCT is carried on and
conducted in a proper and efficient manner. It also supervises the property manager in its day-to-day management of
the malls of FCT, namely, Anchorpoint, Causeway Point, Northpoint, YewTee Point, Bedok Point and Changi City Point,
pursuant to property management agreements entered into for each mall.
The primary role of the Manager is to set the strategic direction for FCT. This includes making recommendations to the
Trustee on acquisitions, divestments and enhancement of assets.
As required under the licensing regime for REIT managers, the Manager holds a Capital Markets Services Licence
(“CMS Licence”) issued by the Monetary Authority of Singapore (“MAS”) to carry out REIT management activities.
Listed on the Mainboard of the SGX-ST, FCT adheres closely to the principles and guidelines of the Code of Corporate
Governance 2012 (the “CG Code”) and other applicable laws, rules and regulations, including the SGX-ST Listing Manual,
the Code on Collective Investment Schemes (the “Code on CIS”) and the Securities and Futures Act (the “SFA”).
This corporate governance report (“CG Report”) provides an insight on the Manager’s corporate governance framework
and practices in compliance with the principles and guidelines of the CG Code. As FCT is a listed REIT, not all principles
of the CG Code may be applicable to FCT and the Manager. Any deviations from the CG Code are explained.
BOARD MATTERS
Principle 1: The Board’s Conduct of Affairs
The composition of the board of directors of the Manager (“Directors”, and the board of Directors, the “Board”) as
at 30 September 2016 is as follows:
Mr Philip Eng Heng Nee
Dr Chew Tuan Chiong
Dr Cheong Choong Kong
Mr Chia Khong Shoong (1)
Mr Bobby Chin Yoke Choong
Mr Lim Ee Seng (2)
Mr Soh Kim Soon
Mr Christopher Tang Kok Kai
Chairman, Non-Executive (Non-Independent)
Chief Executive Officer (Non-Independent)
Non-Executive (Lead Independent Director)
Non-Executive (Non-Independent)
Non-Executive (Independent)
Non-Executive (Non-Independent)
Non-Executive (Independent)
Non-Executive (Non-Independent)
(1) Mr Chia Khong Shoong resigned from the Board on 1 October 2016.
(2) Mr Lim Ee Seng resigned from the Board on 1 October 2016 in line with his retirement as the Group Chief Executive Officer of FCL on 1 October 2016.
98
CORPORATE GOVERNANCE REPORTFRASERS CENTREPOINT TRUST The Board oversees the business affairs of FCT and the Manager, providing oversight, strategic direction and
entrepreneurial leadership, and sets strategic aims and directions of the Manager. It works closely with Management,
and has oversight of and reviews Management’s performance. The Board sets the values and standards of corporate
governance for the Manager and FCT, with the ultimate aim of safeguarding and enhancing Unitholder value and
achieving sustainable growth for FCT. None of the Directors has entered into any service contract directly with FCT.
Management provides the Board with complete, timely and adequate information to keep the Directors updated on
the operations and financial performance of FCT.
As part of the Manager’s internal controls, the Board has established a Manual of Authority. This sets out the requisite
levels of authorisation required for particular types of transactions to be carried out, and specifies whether Board
approval needs to be sought. The matters reserved to the Board for approval include approval of annual budgets,
financial plans, financial statements, business strategy and material transactions of FCT, namely, major acquisitions,
divestments, funding and investment proposals, and appointment of key executives. To assist the Board to effectively
discharge its oversight and functions, appropriate delegations of authority to Management have been effected to
enhance operational efficiency. To assist the Board in its corporate governance, compliance and risk management
responsibilities, the Audit Committee was established. In addition, the Nominating and Remuneration Committee
(“NRC”) was also established on 16 September 2016 to assist the Board in its nominating and remuneration
responsibilities, as guided by the CG Code.
Upon joining the Board, new Directors undergo an induction and/or orientation programme to provide them with
information on FCT’s business, strategic directions, governance practices, policies and business activities, including
major new projects. New Directors who join the Board are issued a formal letter of appointment setting out relevant
Directors’ duties and obligations, so as to acquaint them with their responsibilities as Directors of the Manager.
The Manager sees to it that the Board is regularly updated on new developments in laws and regulations or changes
in regulatory requirements and financial reporting standards which are relevant to or may affect the Manager or
FCT. During the financial year ended 30 September 2016 (“FY2016”), the Board was briefed and updated on the
introduction of sustainability reporting requirements by the SGX-ST, changes in tax regulations in the jurisdictions that
FCT operates in, changes in the financial reporting standards and changes to the auditor’s report.
In addition to talks conducted by relevant professionals, members of the Board are encouraged to attend relevant
courses and seminars so as to keep themselves updated on developments and changes in FCT’s operating environment,
and to be members of the Singapore Institute of Directors (“SID”) and for them to receive journal updates and training
from SID to stay abreast of relevant developments in financial, legal and regulatory requirements, and the business
environment and outlook.
The Board meets regularly, at least once every quarter, to review the key activities, performance, business strategies
and significant operations and/or management matters pertaining to the Manager and/or FCT. In the event Directors
are unable to attend Board meetings physically, the Manager’s Constitution allows for such meetings to be conducted
via telephone, video conference or any other form of electronic or instantaneous communication. At least once a
year and if required, time is set aside after scheduled Board meetings for discussions amongst the members of the
Board without the presence of Management, in line with the guidelines of the CG Code. In addition to the meetings,
the members of the Board have access to Management throughout the financial year, thereby allowing the Board
continuous strategic oversight over the activities of FCT.
99
CORPORATE GOVERNANCE REPORTANNUAL REPORT 2016 The number of Board and Audit Committee meetings held during FY2016 and the attendance of Directors at these
meetings are disclosed below: (3)
Meetings held for financial year ended 30 September 2016
Mr Philip Eng Heng Nee
Dr Chew Tuan Chiong
Dr Cheong Choong Kong *
Mr Chia Khong Shoong
Mr Bobby Chin Yoke Choong
Mr Lim Ee Seng
Mr Soh Kim Soon
Mr Christopher Tang Kok Kai
Board
Meetings
Audit Committee
Meetings
4
4
4
1
4
4
4
4
4
5
4
NA
1
NA
5
NA
5
NA
(3) The NRC was established on 16 September 2016 and the first NRC meeting was held after FY2016.
* Appointed on 18 May 2016
Principle 2: Board Composition and Guidance
For FY2016, the Board comprised eight members, of whom three are independent non-executive Directors. The CEO
is the only Executive Director on the Board. The rest of the Board members are non-executive Directors.
The size of the Board is appropriate and adequate, having regard to the scope and nature of the Manager’s and FCT’s
business and operations. The Board is of the view that the current size and composition of the Board is appropriate for
the scope and nature of the operations of the Manager and FCT and facilitates effective decision-making. In line with
the CG Code, the Board, with the assistance of the NRC, undertook a review of the structure, size and composition
of the Board, and following the review, is of the view that the Board’s present composition and balance between
Executive, Non-Executive and Independent Directors is appropriate and allows for a balanced exchange of views,
robust deliberations and debates among members and effective oversight over Management.
The current composition gives the Board the ability to consider and make decisions objectively and independently
on issues relating to FCT and the Manager. Under the current composition, no one individual or group dominates the
Board’s decisions or its process. With respect to its size, the Board is of the view that the same is not so large as to be
unwieldy, meets the requirements of the business of the Manager and FCT, and is sufficient to avoid undue disruptions
from changes to its composition, especially in the event of exigencies. The composition of the Board shall be reviewed
regularly to ensure that the Board has the appropriate size and mix of expertise and experience. There is a strong and
independent element on the Board.
Directors exercise their judgment independently and objectively in the interests of FCT and the Manager. The
Board reviews and assesses annually the independence of its directors based on the definitions and guidelines of
independence set out in the CG Code and the proposed regulations 13D to13G of the Securities and Future (Licensing
and Conduct of Business) Regulations (Rg 10), Chapter 289. In its review for FY2016, the NRC has endorsed in its
recommendation to the Board that the following directors are independent for FY2016:
Dr Cheong Choong Kong
Mr Bobby Chin Yoke Choong
Mr Soh Kim Soon
Independent
Independent
Independent
100
CORPORATE GOVERNANCE REPORTFRASERS CENTREPOINT TRUST As part of its review, the NRC has taken into consideration, inter alia, the following:
(i)
each Independent Director’s declaration of independence, which includes questions relating to his relationship
with FCT, the Manager, the Trustee, and FCT’s sponsor, FCL, whereby, all have declared that there were no
relationships or instances that would otherwise deem him not to be independent; and
(ii)
that Mr Bobby Chin Yoke Choong and Mr Soh Kim Soon had served on the Board for more than 9 years.
Notwithstanding their length of service, the NRC, following its rigorous review, had recommended to the Board that
Mr Bobby Chin Yoke Choong and Mr Soh Kim Soon, had continued to demonstrate their ability to exercise strong
objective judgement, acting in the best interests of the Manager and FCT at all times. They had and continue to
remain independent in the expression of their views and in their participation in the deliberations and decision making
of the Board, the Audit Committee and the NRC.
Having considered the above factors and weighing the need to refresh board membership, the Board (with each
of Mr Bobby Chin Yoke Choong and Mr Soh Kim Soon abstaining with respect to the assessment of his own
independence) determined that each of Mr Bobby Chin Yoke Choong and Mr Soh Kim Soon is independent,
notwithstanding that each of them has served on the Board for more than 9 years.
The Board members have core competencies and expertise and experience in various fields ranging from accounting
and finance, to business management. Coupled with relevant industry knowledge and strategic planning experience
of the Board members, the Board is well-placed to drive FCT’s continuous growth and success and deliver sustainable
Unitholder value. Management is able to benefit from the diverse and objective perspectives of the Board members
on issues that are brought before the Board, with a healthy exchange of ideas and views between the Board and
Management, to help shape the strategic process. Directors of the Manager are not subject to periodic retirement by
rotation. The Board reviews its composition to ensure the appropriate size and diversity of skills, expertise and experience.
Principle 3: Chairman and Chief Executive Officer
The positions of Chairman and CEO are held by separate persons. This is so that an appropriate balance of power and
authority, with clear divisions of responsibilities and accountability, can be attained. Such separation of roles between
the Chairman and the CEO promotes robust deliberations by the Board and Management on the business activities of
FCT. The Chairman and CEO are not related to each other, nor is there any other business relationship between them.
The Chairman leads and ensures the effectiveness of the Board. Through the Chairman’s continuing leadership of
the Board, constructive discussions among the Board members as well as between the Board and Management, and
effective contribution by the Directors, are promoted. High standards of corporate governance are upheld as a result.
The CEO has full executive responsibilities over the business direction and operations of the Manager.
101
CORPORATE GOVERNANCE REPORTANNUAL REPORT 2016 Principle 4: Board Membership
The Board established the NRC on 16 September 2016 to assist the Board in its nominating function, responsibilities
and role. Prior to its establishment, the functions of a nominating committee were undertaken by the Board. The
NRC comprises four Directors, being Mr Soh Kim Soon, Dr Cheong Choong Kong, Mr Bobby Chin Yoke Choong
and Mr Christopher Tang Kok Kai, all of whom are non-executive and the majority of whom (including its Chairman,
Mr Soh Kim Soon) are independent.
The NRC has written terms of reference setting out its scope and authority in performing the functions of a nominating
committee, which include the following:
•
•
•
•
•
•
make recommendations to the Board on all Board appointments, re-appointments and the composition of the
Board and on relevant matters relating to the appointment and re-appointment of directors;
regularly review the Board structure, size, composition and the independence of the Board to ensure that the
Board has the appropriate mix of expertise and experience, and recommend to the Board such adjustments as
it may deem necessary;
ensure that at all times, there should be a strong and independent element on the Board;
put in place board succession plans for the Board’s approval and make recommendations on relevant matters
relating to the review of board succession plans for directors, in particular, the Chairman and for the CEO;
identify candidates, review and approve nominations for directors, alternate directors and membership of
Board committees (including the Audit Committee and the NRC), as well as appraise the qualifications and
experience of any proposed new appointments to the Board and to recommend to the Board whether the
nomination should be supported;
review, on an annual basis and as and when circumstances require, whether or not a director is independent,
bearing in mind the circumstances set forth in the CG Code and any other salient factors.
The composition of the Board is determined using the following principles:
•
•
at least one-third of the Board should comprise independent directors, and at least half of the Board should
comprise independent directors if the Chairman and the CEO is the same person, the Chairman and the CEO
are immediate family members, the Chairman is part of the management team or the Chairman is not an
independent director; and
the Board and its committees should comprise directors who as a group provide an appropriate balance
and diversity of skills, experience, gender and knowledge of the Manager, and they should also provide core
competencies such as accounting or finance, business or management experience, industry knowledge,
strategic planning experience and customer-based experience or knowledge.
In respect of the search and nomination process for new directors, the NRC identifies the relevant and/or desirable skills
and experience, and engages search companies as well as networking contacts to identify and shortlist candidates, to
spread its reach for the best person for the role.
102
CORPORATE GOVERNANCE REPORTFRASERS CENTREPOINT TRUST The CG Code requires listed companies to fix the maximum number of board representations on other listed companies
that their directors may hold and to disclose this in their annual report. Details of such directorships and other principal
commitments of our Directors may be found on pages 22 to 25. In determining whether each Director is able to
devote sufficient time to discharge his duties, the Board has taken cognizance of the CG Code requirement, but is
of the view that its assessment should not be restricted to the number of board representations of each Director and
their respective principal commitments per se. Holistically, the contributions by the Directors to and during meetings
of the Board and the Audit Committee as well as their attendance at such meetings should also be taken into account.
All appointments and resignations of Board members are approved by the Board. With the establishment of the
NRC, the NRC shall be instrumental in assisting in the review of all Board appointments, re-appointments and the
composition of the Board, its recommendations of which shall be taken into consideration by the Board in its decision.
Principle 5: Board Performance
The Board, with the assistance of the NRC, has implemented a process to evaluate and assess the performance of
the Board and the Audit Committee and their decision-making processes. The NRC has appointed Ernst & Young
LLP to assist in its evaluation and assessment process. Members of the Board are required to assess the Board’s
performance, which includes areas such as the Board’s composition and processes, effectiveness in its management of
FCT’s performance, and such other areas which the Board is of the view that improvements are required.
The findings of the evaluation and assessment are reviewed by the Board with a view to improving its overall
effectiveness in fulfilling its role and meeting its responsibility to unitholders. The Board is committed to ensure that
collectively as a Board, and individually its members, both contribute effectively to such improvement, and is of the
view that the evaluation and assessment framework would assist to meet such commitment.
Principle 6: Access to Information
On an on-going basis, and prior to Board meetings, adequate and timely information is given by Management to
Board members, who have separate and independent access to Management and the Company Secretary. Under
the direction of the Chairman, the Company Secretary ensures that Board procedures, and applicable rules and
regulations are complied with. He attends all Board meetings and acts as a channel of communication for information
flow and dissemination to and within the Board, as well as between senior Management and non-executive Directors.
The annual calendar of Board activities is scheduled in advance. Board papers are dispatched to Directors about a
week before scheduled meetings so that Directors have sufficient time to review and consider matters being tabled
and discussed at the meetings. Senior Executives are requested to attend the Board meetings to provide additional
insights into matters being discussed and to respond to any queries from Directors.
The Directors, either individually or as a group, may seek or obtain independent professional advice, where necessary,
in the furtherance of their duties.
REMUNERATION MATTERS
Principle 7: Remuneration Matters
Principle 8: Level and Mix of Remuneration
Principle 9: Disclosure on Remuneration
103
CORPORATE GOVERNANCE REPORTANNUAL REPORT 2016 FCT, as a REIT, is managed by the Manager which has experienced and well-qualified management personnel to
manage the operational matters of the Manager and FCT. The remuneration of the staff of the Manager and Directors’
fees are paid by the Manager from the fees it receives from FCT, and not by FCT.
On 16 September 2016, the Board established the NRC, to assist the Board in its remuneration function, responsibilities
and role. The NRC comprises four Directors, being Mr Soh Kim Soon, Dr Cheong Choong Kong, Mr Bobby Chin Yoke
Choong and Mr Christopher Tang Kok Kai, all of whom are non-executive and the majority of whom (including its
Chairman, Mr Soh Kim Soon) are independent.
The NRC has written terms of reference setting out its scope and authority in performing the functions of a remuneration
committee, which include the following matters:
•
•
•
review the remuneration framework for the Board and the key executive officers of the Manager;
review the disclosures in FCT’s annual report on the Manager’s remuneration policies, level and mix of
remuneration, and the procedure for setting remuneration; and
ensure that the remuneration of executive directors of the Manager shall not be linked in any way to FCT’s
gross revenue.
The NRC is responsible for ensuring a formal and transparent procedure for developing policy on executive
remuneration and for determining the remuneration packages of individual Directors and key management personnel
of the Manager (“Key Management Personnel”). The NRC assists the Board to ensure that remuneration policies
and practices are sound in that they are able to attract, retain and motivate without being excessive, and thereby
maximise Unitholder value. The NRC will recommend a framework of remuneration (which covers all aspects of
remuneration including Directors’ fees, salaries, allowances, bonuses, options and benefits-in-kind) and the specific
remuneration packages for each Director (including the CEO) to the Board for endorsement. The NRC will also review
the remuneration of the Key Management Personnel of the Manager.
As stated above, the NRC was established only recently on 16 September 2016. In this regard, for FY2016, the
level and mix of remuneration and benefits, policies and practices of the FCL group, which includes the Manager,
were reviewed by FCL’s Remuneration Committee (the “FCL RC”). In undertaking such reviews, the FCL RC takes
into consideration the performance of the Manager as part of the FCL group, and the performance of individual
employees. The FCL RC also reviewed and approved the framework for salary reviews, performance bonuses and
incentives for the Key Management Personnel of the Manager as part of the FCL group-wide review.
From the financial year beginning from 1 October 2016 onwards, the NRC, in performing the functions of a remuneration
committee, and in accordance with the NRC’s written terms of reference, will support the Board in determining and
reviewing the remuneration policies and practices of the Manager. In this regard and following the new directions and
guidelines from the MAS on the remuneration of directors and Key Management Personnel of the Manager, the Board,
with the assistance of the NRC, is in the midst of reviewing the remuneration objectives, policies and procedures
applicable to the Manager, with a view to aligning them with the substance and spirit of such directions and guidelines
from the MAS.
Policies in respect of Directors’ Remuneration
The remuneration of Non-Executive Directors takes into account their respective responsibilities, including attendance
and time spent at Board meetings and Board Committee meetings. Non-Executive Directors are paid a basic fee
and attendance fees for attending Board meetings. Non-Executive Directors who perform services through Board
Committees are paid additional fees for such services. The CEO, who is the only Executive Director on the Board, does
not receive Directors’ fees. No Director decides his own fees. Non-Executive Directors’ fees are reviewed periodically
to benchmark such fees against the amounts paid by other major listed REITs in Singapore.
104
CORPORATE GOVERNANCE REPORTFRASERS CENTREPOINT TRUST The Directors’ fees for FY2016 are shown in the table below.
Board Members
Mr Philip Eng Heng Nee (Chairman) (Member of Audit Committee)
Dr Chew Tuan Chiong
Dr Cheong Choong Kong (Member of Audit Committee and NRC)
Mr Chia Khong Shoong (1)
Mr Bobby Chin Yoke Choong (Chairman of Audit Committee and Member of NRC)
Mr Lim Ee Seng (1)
Mr Soh Kim Soon (Member of Audit Committee and Chairman of NRC)
Mr Christopher Tang Kok Kai (1) (Member of NRC)
(1) Director’s fees are paid to FCL Management Services Pte Ltd
Remuneration Policy for Management
Directors’ Fees
S$113,000
–
S$23,612
S$46,000
S$81,208
S$46,000
S$68,917
S$46,208
The Managers’ remuneration framework comprises (i) a fixed pay component; and (ii) a variable component comprising
short-term and long-term incentives. The variable component is linked to and determined based on both: (a) FCT’s
performance and contribution to the FCL group; and (b) an annual appraisal of each individual employee against
performance indicators including adherence to core values, competencies, key result areas, performance rating, and
potential of the relevant employee. The mix of fixed and variable remuneration components is considered appropriate
for the Managers and for each individual employee’s role.
The level and mix of remuneration and the remuneration benefits, policies and practices of the Manager, where
appropriate, including the long-term incentives will be reviewed by the NRC. The NRC will ensure that competitive
remuneration policies and practices are in place to draw and motivate high-performing executives so as to drive FCT’s
businesses to greater growth, efficiency and profitability.
In its deliberation, the NRC will take into consideration industry practices and benchmarks against relevant industry
players to ensure that its remuneration and employment conditions are competitive and may, if it considers necessary,
engage independent remuneration consultant(s).
The NRC will exercise broad discretion and independent judgement in ensuring that the amount and mix of
compensation are aligned with the interests of Unitholders and promote the long-term success of FCT. The NRC will
ensure that the overall level of remuneration is not considered to be at a level which is likely to promote behaviour
contrary to the Manager’s or FCT’s risk profile.
Performance Indicators for Key Management Personnel
As set out above, the Manager’s variable remuneration component comprise short-term and long-term incentives
which takes into account both individual performance, FCT’s performance and FCT’s contribution to the FCL group.
The Manager has put in place a framework for determining the short-term incentives of the Key Management
Personnel, where both FCT’s financial performance and non-financial performance will be taken into consideration.
The financial performance indicators in which the Key Management Personnel will be evaluated on comprise (i) FCT’s
net portfolio property income, (ii) Unitholder distribution, (iii) distribution per Unit and (iv) relative REIT unit price
performance. These performance indicators are quantitative and objective measures of the Manager’s performance.
The non-financial performance indicators in which the Key Management Personnel will be evaluated on include (i) FCT’s
business initiatives, (ii) strategic perspective, (iii) corporate sustainability and (iv) branding of FCT. These qualitative
performance indicators will align the Key Management Personnel’s performance with FCT’s strategic objectives for
the financial year.
105
CORPORATE GOVERNANCE REPORTANNUAL REPORT 2016 Long-term incentives in the form of FCL share awards were granted to Key Management Personnel for FY2016.
To align the interests of Key Management Personnel with the long-term interests of Unitholders, the grant of FCL
share awards were based on various performance indicators, including individual performance based on the annual
appraisal of the individual employees, FCT’s performance, FCT’s contribution to the FCL group and the performance
of the Manager as part of the FCL group.
From the financial year beginning from 1 October 2016 onwards, the NRC will review the short-term and long-term
incentives in the Key Management Personnel’s remuneration package to ensure its compliance with the substance and
spirit of the directions and guidelines from the MAS.
Currently, the Manager does not have claw-back provisions which allow it to reclaim incentive components of
remuneration from its key executive personnel in exceptional circumstances of misstatement of financial results or
misconduct resulting in financial loss.
Pursuant to MAS’ “Notice to All Holders of a Capital Markets Services Licence for Real Estate Investment Trust
Management”, REIT managers are required to disclose (i) the remuneration of the CEO and each individual director
on a named basis, and (ii) the remuneration of at least the top five executive officers (which shall not include the CEO
and executive officers who are directors), on a named basis, in bands of S$250,000. The Board has assessed and
decided against the disclosure of the remuneration of the CEO and executive officers on a named basis, whether in
exact quantum or in bands of S$250,000, as well as the disclosure of the total remuneration paid to the top five key
executive officers (who are not directors or the CEO), and believes that the interests of the Unitholders will not be
prejudiced as a result of such non-disclosure, for the following reasons:
(i)
(ii)
(iii)
(iv)
competition for talent in the REIT management industry is very keen and the Manager has, in the interests of
Unitholders, opted not to disclose the remuneration of its CEO and top five executive officers as this may give
rise to recruitment and talent retention issues as well as the risk of unnecessary key management turnover;
the composition of the current management team has been quite stable and to ensure the continuity of
business and operations of FCT, it is important that the Manager continues to retain its team of competent and
committed staff;
due to the confidentiality and sensitivity of staff remuneration matters, the Manager is of the view that such
disclosure could be prejudicial to the interests of Unitholders; and
there is full and frank disclosure of the total amount of fees paid to the Manager set out at pages 126 and 178
of this Annual Report.
There were no employees of the Manager who are immediate family members of a Director or the CEO during FY2016.
ACCOUNTABILITY AND AUDIT
Principle 10: Accountability
The Board, with the support of Management, is responsible for providing a balanced and understandable assessment
of FCT’s performance, position and prospects, on a quarterly basis. Quarterly and annual financial statements and
other material information are disseminated to Unitholders through announcements to the SGX-ST, and, where
applicable, press releases. Financial statements of FCT are prepared in accordance with the recommendations of the
Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of
Singapore Chartered Accountants and the applicable requirements of the Code on CIS issued by the MAS and the
provisions of FCT Trust Deed. The Board, with the support of Management, is responsible for providing a balanced and
understandable assessment of FCT’s performance, position and prospects. Financial reports are provided to the Board
on a quarterly basis and monthly accounts will be made available to the Directors on request. Quarterly and annual
financial reports and other material information are disseminated to Unitholders through announcements released
via SGXNET, and where applicable, media releases and analysts’ briefings. Such financial reports are reviewed by the
Board before dissemination.
106
CORPORATE GOVERNANCE REPORTFRASERS CENTREPOINT TRUST Principle 11: Risk Management and Internal Controls
The Manager has established a sound system of risk management and internal controls comprising procedures and
processes to safeguard FCT’s assets and Unitholders’ interests. The Audit Committee reviews and reports to the Board
on the adequacy and effectiveness of such controls, including financial, compliance, operational and information
technology controls, and risk management procedures and systems, taking into consideration the recommendations
of both internal and external auditors.
Internal Controls
The Audit Committee, through the assistance of internal and external auditors, reviews and reports to the Board on
the adequacy and effectiveness of the Manager’s system of controls, including financial, compliance, operational and
information technology controls. In assessing the effectiveness of internal controls, the Audit Committee ensures
primarily that key objectives are met, material assets are properly safeguarded, fraud or errors in the accounting
records are prevented or detected, accounting records are accurate and complete, and reliable financial information
is prepared in compliance with applicable internal policies, laws and regulations.
Risk Management
The Board, through the Audit Committee, reviews the adequacy and effectiveness of the Manager’s risk management
framework for the Manager and FCT to ensure that robust risk management and mitigating controls are in place.
The Manager has adopted an enterprise-wide risk management (“ERM”) framework to enhance its risk management
capabilities. Key risks, control measures and management actions are continually identified, reviewed and monitored
as part of the ERM process. Financial and operational key risk indicators are in place to track key risk exposures. Apart
from the ERM process, key business risks are thoroughly assessed by Management and each significant transaction is
comprehensively analysed so that Management understands the risks involved before it is embarked upon. An outline
of the Manager’s ERM framework and progress report is set out on page 39.
Periodic updates are provided to the Audit Committee on FCT’s and the Manager’s risk profile. These updates would
involve an assessment of FCT’s and the Manager’s key risks by risk categories, its current status, the effectiveness of
mitigating measures taken, and the action plans undertaken by Management to manage such risks.
In addition to the ERM framework, a comfort matrix of key risks, by which relevant material financial, compliance and
operational (including information technology) risks of FCT and the Manager have been documented to assist the
Board to assess the adequacy and effectiveness of the existing internal controls. The comfort matrix is prepared with
reference to the strategies, policies, processes, systems and reporting processes connected with the management of
such key risks and presented to the Board and the Audit Committee. Risk tolerance statements setting out the nature
and extent of significant risks which the Manager is willing to take in achieving its strategic objectives have been
formalised and adopted.
The Board has received assurance from the CEO and the Financial Controller of the Manager that as at 30 September 2016:
(a)
(b)
(c)
the financial records of FCT have been properly maintained and the financial statements for FY2016 give a true
and fair view of FCT’s operations and finances;
the system of internal controls in place for FCT is adequate and effective as at 30 September 2016 to address
financial, operational, compliance and information technology risks which the Manager considers relevant and
material to FCT’s operations; and
the risk management system in place for FCT is adequate and effective as at 30 September 2016 to address
risks which the Manager considers relevant and material to FCT’s operations.
107
CORPORATE GOVERNANCE REPORTANNUAL REPORT 2016 Opinion of the Board on Internal Controls and Risk Management Framework
Based on the internal controls established and maintained by the Manager, work performed by internal and external
auditors, reviews performed by Management and the Audit Committee and assurance from the CEO and the Financial
Controller of the Manager, the Board, with the concurrence of the Audit Committee, is of the opinion that the internal
controls in place for FCT, were adequate and effective as at 30 September 2016 to address financial, operational,
compliance and information technology risks, which the Manager considers relevant and material to FCT’s operations.
Based on the risk management framework established and assurance from the CEO and the Financial Controller of the
Manager, the Board is of the view that the risk management system in place for FCT was adequate and effective as at
30 September 2016 to address risks which the Manager considers relevant and material to FCT’s operations.
The Board notes that the system of internal controls and risk management provides reasonable, but not absolute,
assurance that the Manager will not be adversely affected by any event that could be reasonably foreseen as it works
to achieve its business objectives.
In this regard, the Board also notes that no system of internal controls and risk management can provide absolute
assurance against the occurrence of material errors, poor judgment in decision making, human error, losses, fraud or
other irregularities.
Principle 12: Audit Committee
The Audit Committee is governed by written terms of reference, with explicit authority to investigate any matter
within its terms of reference. It has full access to, and the co-operation of Management, and full discretion to invite
any Director or executive officer to attend its meetings. It has reasonable resources to enable it to discharge its
functions effectively.
The Audit Committee’s responsibilities include:
•
•
•
•
•
•
•
•
reviewing the effectiveness of the Manager’s internal control processes for the Manager and FCT, including
financial, compliance and risk management controls/framework, reviewing the results of audit findings, and
directing prompt remedial action by Management;
reviewing the financial statements and the audit report for recommendation to the Board for approval;
monitoring Management’s compliance with applicable rules and legislation, such as the listing rules of the
SGX-ST, the Code on CIS and the SFA;
reviewing with the external auditors, the audit plans, audit reports and their evaluation of the system of
internal controls;
reviewing the appointment and re-appointment of the external auditors and their fees and recommending
the same to the Board for approval, as well as reviewing the adequacy and effectiveness of external audits in
respect of cost, scope and performance;
reviewing the independence and objectivity of the external auditors, taking into consideration the non-audit
services provided by the external auditors. For FY2016, audit fees of $115,500 and fees of $63,400 for the non-
audit services were paid/payable to FCT’s external auditors;
reviewing the adequacy and effectiveness of the internal audit function, including its resources, audit plans and
the scope and effectiveness of the internal audit procedures; and
reviewing Interested Person/Party Transactions to ascertain compliance with internal procedures and provisions
of applicable laws and regulations.
108
CORPORATE GOVERNANCE REPORTFRASERS CENTREPOINT TRUST In performing its functions, the Audit Committee meets with the internal and external auditors and reviews the internal
and external audit plans and reports for FCT and the Manager, and the assistance given by Management to the
auditors. All audit findings and recommendations are presented to the Audit Committee for discussion. In addition,
updates on changes in accounting standards and treatment are prepared by external auditors and circulated to
members of the Audit Committee periodically.
For FY2016, the Audit Committee comprised four non-executive Directors, the majority of whom including the
Chairman, are independent:
Name
Mr Bobby Chin Yoke Choong
Mr Philip Eng Heng Nee
Dr Cheong Choong Kong *
Mr Soh Kim Soon
* Appointed on 18 May 2016
Role
Chairman
Member
Member
Member
The separation of the roles of the Chairman of the Board and the Chairman of the Audit Committee ensures
greater independence of the Audit Committee in the discharge of its duties. This is also with a view to increasing its
effectiveness in assisting the Board in the discharge of its statutory and other responsibilities in the areas of internal
controls, financial and accounting matters, compliance and risk management.
Members of the Audit Committee collectively possess the accounting and related financial management, expertise
and experience required for the Audit Committee to discharge its responsibilities and assist the Board in its oversight
over Management in the design, implementation and monitoring of risk management and internal control systems.
External Auditors
KPMG LLP (“KPMG”) was appointed pursuant to the approval of the Unitholders on 21 January 2016 as external
auditors of FCT in place of the retiring auditors, Ernst and Young LLP. The Manager confirms that FCT complies with
Rules 712 and 715 of the Listing Manual in relation to the appointment of KPMG as the external auditors of FCT. The
Audit Committee has conducted a review of all non-audit services provided by KPMG during the financial period.
The Audit Committee is satisfied that given the nature and extent of non-audit services provided and the fees for
such services, neither the independence nor the objectivity of KPMG is put at risk. KPMG has attended the Audit
Committee meeting held every quarter for FY2016, and where appropriate, has met with the Audit Committee without
the presence of Management to discuss their findings, if any.
It is proposed that at the forthcoming FCT Annual General Meeting, KPMG be re-appointed as the external auditors
of FCT and that the Manager be authorised to fix their remuneration.
WHISTLE-BLOWING POLICY
A Whistle-Blowing Policy is in place to provide an avenue through which employees and any other persons may
report or communicate, in good faith and in confidence, any concerns relating to financial and other matters, so that
independent investigation of such matters can be conducted and appropriate follow-up action taken.
Principle 13: Internal Audit
The Manager has in place an internal audit function (“IA”) established within the FCL Group to independently examine
and evaluate the activities of the Manager, focusing on the adequacy and effectiveness of internal controls, risk
management and corporate governance processes.
109
CORPORATE GOVERNANCE REPORTANNUAL REPORT 2016 The FCL Group IA is independent of the activities that it audits. The Head of Group IA, who is a Certified Fraud
Examiner and a Fellow of The Institute of Singapore Certified Accountants (ISCA), CPA Australia and ACCA, reports
directly to the Chairman of the Audit Committee. The Head of Group IA and the IA staff are members of the Institute
of Internal Auditors, Singapore and FCL Group IA has adopted and complied with the Standards for the Professional
Practice of Internal Auditing set by the Institute of Internal Auditors, Inc. To ensure that the internal audits are effectively
performed, it recruits and employs suitably qualified staff with the requisite skills and experience. Such staff are also
given relevant training and development opportunities to update their technical knowledge and auditing skills. All
IA staff received relevant technical training and attended seminars organised by the Institute of Internal Auditors,
Singapore or other professional bodies.
The FCL Group IA operates within the framework stated in the Terms of Reference as contained in the Internal Audit
Charter approved by the AC. It adopts a risk-based audit methodology to develop its audit plans, and its activities are
aligned to key risks of FCT. Based on risk assessments performed, greater focus and appropriate review intervals are
set for higher risk activities and material internal controls. The audit scope also included review of compliance with the
policies, procedures and regulatory responsibilities of FCT and the Manager.
During the year, Group IA conducted its audit reviews based on the approved Internal Audit Plan. All audit reports
detailing audit findings and recommendations are provided to Management who would respond on the actions to be
taken. Each quarter, IA would submit to the Audit Committee a report on the status of the Audit Plan and on audit
findings and actions taken by Management on such findings. Key findings are highlighted at the Audit Committee
meetings for discussion and follow-up action. The Audit Committee monitors the timely and proper implementation
of appropriate follow-up measures to be undertaken by Management.
The Audit Committee is satisfied that for FY2016, the internal audit function is adequately resourced and has
appropriate standing within FCT and the Manager to perform its functions effectively.
UNITHOLDER RIGHTS AND RESPONSIBILITIES
Principle 14: Unitholder Rights
The Manager believes in treating all Unitholders fairly and equitably. It aspires to keep all Unitholders and other
stakeholders and analysts in Singapore and beyond informed of FCT’s activities, including changes (if any) in FCT’s
business which are likely to materially affect the price or value of its Units, in a timely and consistent manner.
Unitholders are also given the opportunity to participate effectively and vote at general meetings of FCT, where
relevant rules and procedures governing such meetings (for instance, how to vote) are clearly communicated.
Principle 15: Communication with Unitholders
The Manager strives to uphold high standards of disclosure and corporate transparency. It aims to provide timely,
effective and fair information relating to FCT’s performance and its developments to its Unitholders and the investment
community through announcements to the SGX-ST and on FCT’s website, to enable them to make informed investment
decisions. The Manager has a dedicated investor relations manager (“IR manager”) to facilitate communication
between FCT, its Unitholders and the investment community.
The Manager meets and communicates regularly with Unitholders and the investment community to keep them
apprised of FCT’s corporate developments and financial performance. During FY2016, the senior Management and
the IR manager, met or spoke with 289 investors at investment conferences, non-deal road shows as well as one-on-one
and group meetings. The Manager also conducts post-result briefings for analysts and the media, following the release
of its half year and full year results. For its first quarter and third quarter results, this is done by conference calls. The
Manager makes available all its briefing materials, its financial information, its annual reports and all announcements
to the SGX-ST on its website at www.fct.sg, with contact details for investors to channel their comments and queries.
110
CORPORATE GOVERNANCE REPORTFRASERS CENTREPOINT TRUST FCT was conferred the runner-up of the “Most Transparent Company Award (REITs & Business Trusts Category)” at the
SIAS Investors’ Choice Awards 2016.
Principle 16: Conduct of Unitholder Meetings
A copy of the FCT Annual Report is sent to all Unitholders. In compliance with the Code on CIS, an Annual General
Meeting (“AGM”) is held after the close of each financial year allowing the Manager to interact with investors. The
Board supports and encourages active Unitholder participation at AGMs. It believes that AGMs serve as an opportune
forum for Unitholders to meet the Board and senior Management, and to interact with them. Board members
and appropriate senior Management are present at each Unitholders’ meeting to respond to any questions from
Unitholders. The external auditors are also present to address queries about the conduct of audit and the preparation
and content of the auditors’ report.
The Manager has implemented electronic poll voting at its AGMs, whereby Unitholders are invited to vote on relevant
resolutions by way of poll (instead of by show of hands), using hand held electronic devices. This allows all Unitholders
present or represented at the meeting to vote on a one vote per Unit basis. The voting results of all votes cast for,
or against, of each resolution are displayed at the meeting and announced to the SGX-ST after the meeting. The
Manager will continue to use the electronic poll voting system at the forthcoming AGM.
DEALINGS IN UNITS
The Manager has adopted a dealing policy (“Dealing Policy”) on securities trading which provides guidance with
regard to dealings in FCT units by its Directors, officers and employees. Directors, officers and employees are
prohibited from dealing in FCT units:
•
in line with the Listing Rule 1207(19)(c) on Dealings in Securities, two weeks before the date of announcement of
quarterly financial statements and one month before the date of announcement of full-year results (“Prohibition
Period”); and
•
at any time while in possession of unpublished material or price sensitive information.
Directors, officers and employees are also directed to refrain from dealing in FCT units on short-term considerations.
Prior to the commencement of the Prohibition Period, Directors, officers and employees will be reminded not to
trade during this period or whenever they are in possession of unpublished price sensitive information. Outside of the
Prohibition Period, any trades must be reported to the Board within 48 hours. Every quarter, each Director, officer or
employee is required to complete and submit a declaration form to the Compliance Officer to report any trades he/
she made in FCT units in the previous quarter and confirm that no trades were made during the Prohibition Period.
A quarterly report will be provided to the Audit Committee. Any non-compliance with the Dealing Policy will be
reported to the Audit Committee for its review and instructions.
In compliance with the Dealing Policy in relation to the Manager, prior approval from the Board is required before the
Manager deals or trades in FCT units. The Manager has undertaken that it will not deal in FCT units:
(a)
during the period commencing one month before the public announcement of FCT ’s full-year results and (where
applicable) property valuations and two weeks before the public announcement of FCT ’s quarterly results; or
(b)
whenever it is in possession of unpublished material price sensitive information.
111
CORPORATE GOVERNANCE REPORTANNUAL REPORT 2016 The Manager has also given an undertaking to the MAS that it will announce to the SGX-ST the particulars of its
holdings in FCT units and any changes thereto within two business days after the date on which it acquires or disposes
of any FCT units, as the case may be.
CONFLICTS OF INTEREST
The Manager has put in place procedures to address potential conflicts of interest (including in relation to Directors,
officers and employees) which may arise in managing FCT. These include the following:
•
•
•
•
•
•
The Manager is to be dedicated to managing FCT and will not directly or indirectly manage other REITs;
All executive officers of the Manager will be employed by the Manager;
All resolutions in writing of the Directors in relation to matters concerning FCT must be approved by a majority
of the Directors, including at least one Independent Director;
At least one-third of the Board shall comprise Independent Directors;
On matters where FCL and/or its subsidiaries have an interest (directly or indirectly), Directors nominated by
them shall abstain from voting. In such matters, the quorum must comprise a majority of independent Directors
and must exclude nominee Directors of FCL and/or its subsidiaries; and
An interested Director is required to disclose his interest in any proposed transaction with FCT and is required
to abstain from voting on resolutions approving the transaction.
INTERESTED PERSON TRANSACTIONS
The Manager has established internal control procedures to ensure that all interested person transactions (“IPTs”) are
undertaken on normal commercial terms, and will not be prejudicial to the interests of FCT and the Unitholders. This
may entail obtaining (where practicable) quotations from parties unrelated to the Manager, or obtaining one or more
valuations from independent professional valuers (in accordance with the Property Funds Appendix).
All IPTs are entered in a register maintained by the Manager, including any quotations from unrelated parties and
independent valuations supporting the bases on which such transactions are entered into. The Manager incorporates
into its internal audit plan a review of the IPTs recorded in the register to ascertain that internal procedures and
requirements of the Listing Manual and Property Funds Appendix have been complied with. The Audit Committee
reviews the internal audit reports twice a year to ascertain that the guidelines and procedures established to monitor
IPTs have been complied with. In addition, the Trustee also has the right to review any such relevant internal audit
reports to ascertain that the Property Fund Appendix have been complied with.
In respect of transactions entered into or to be entered into by the Trustee for and on behalf of FCT with an interested
person, the Trustee is required to satisfy itself that such transactions are conducted on normal commercial terms, are
not prejudicial to the interests of FCT and the Unitholders, and in accordance with all applicable requirements of the
Property Funds Appendix and/or the Listing Manual. The Trustee has the ultimate discretion under the Trust Deed
entered into between the Trustee and the Manager constituting FCT to decide whether or not to enter into such a
transaction involving an interested person.
ROLE OF THE AUDIT COMMITTEE FOR INTERESTED PERSON TRANSACTIONS
The Audit Committee reviews IPTs periodically to ensure compliance with the internal control procedures and the
relevant provisions of the Listing Manual and Property Funds Appendix. Any member who has an interest in a
transaction shall abstain from participating in the review and approval processes in relation to that transaction.
112
CORPORATE GOVERNANCE REPORTFRASERS CENTREPOINT TRUST ADDITIONAL DISCLOSURE ON FEES PAYABLE TO THE MANAGER
Pursuant to the Trust Deed, the Manager is entitled to receive the following fees:
Type of Fee
Computation and Form of Payment
Rationale and Purpose
Base Fee
Performance Fee
Acquisition Fee
Divestment Fee
Pursuant to Clause 15.1.1 of the Trust Deed,
the Manager is entitled to receive a Base Fee
not exceeding the rate of 0.3% per annum of
the Value of FCT’s Deposited Property.
The Base Fee is payable quarterly in the
form of cash and/or Units as the Manager
may elect.
Pursuant to Clause 15.1.2 of the Trust
Deed, the Manager is entitled to receive a
Performance Fee equal to a rate of 5.0% per
annum of the Net Property Income (calculated
before accounting for the Performance Fee
in that Financial Year) of FCT or (as the case
may be) Special Purpose Vehicles for each
Financial Year accrued to the Manager and
remaining unpaid.
The Performance Fee is payable in the form of
cash and/or Units as the Manager may elect.
With effect
from 1 October 2016, the
Performance Fee shall be paid annually,
in compliance with the Property Funds
Appendix.
Pursuant to Clause 15.2.1(i) of the Trust
Deed, the Manager is entitled to receive
an Acquisition Fee not exceeding the rate
of 1.0% of the acquisition price upon the
completion of an acquisition.
Subject to the Property Funds Appendix,
the Acquisition Fee is payable as soon
the
as practicable after completion of
acquisition in the form of cash and/or Units as
the Manager may elect.
Pursuant to Clause 15.2.1(ii) of the Trust
Deed, the Manager is entitled to receive a
Divestment Fee not exceeding the rate of
0.5% of the sale price upon the completion of
a sale or disposal.
Subject to the Property Funds Appendix,
the Divestment Fee is payable as soon as
practicable after completion of the sale or
disposal in the form of cash and/or Units as
the Manager may elect.
The base fee compensates the Manager for
the costs incurred in managing FCT, which
includes overheads, day-to-day operational
costs, compliance, monitoring and reporting
costs as well as administrative expenses.
The base fee is calculated at a fixed percentage
of asset value as the scope of the Manager’s
duties is commensurate with the size of FCT’s
asset portfolio.
The performance fee, which is based on Net
Property Income, aligns the interests of the
Manager with Unitholders as the Manager is
incentivised to proactively focus on improving
rentals and optimising the operating costs
and expenses of FCT’s properties. Linking
the Performance Fee to Net Property Income
will also motivate the Manager to ensure the
long-term sustainability of the assets instead
of taking on excessive short-term risks to the
detriment of Unitholders.
The Acquisition Fee and Divestment Fee seek
to motivate and compensate the Manager for
the time, cost and effort spent (in the case
of an acquisition) in sourcing, evaluating and
executing potential opportunities to acquire
new properties to further grow FCT’s asset
portfolio or, (in the case of a divestment) in
rebalancing and unlocking the underlying
value of the existing properties.
The Manager provides these services over and
above the provision of ongoing management
services with the aim of enhancing long-term
returns, income sustainability and achieving
the investment objectives of FCT.
The Acquisition Fee
is higher than the
Divestment Fee because there is additional
work required to be undertaken in terms of
sourcing, evaluating and conducting due
diligence for an acquisition, as compared to a
divestment.
113
CORPORATE GOVERNANCE REPORTANNUAL REPORT 2016 GUIDELINES FOR DISCLOSURE
Guideline
Questions
How has the Company complied
General
(a)
Has the Company complied with all the principles
and guidelines of the Code? If not, please state the
specific deviations and the alternative corporate
governance practices adopted by the Company in
lieu of the recommendations in the Code.
Please refer to the disclosures and
references in this table for the
specific deviations from the Code.
(b)
In what respect do these alternative corporate
governance practices achieve the objectives of
the principles and conform to the guidelines in
the Code?
has
adopted
The Manager
alternative corporate governance
practices which reflect the fact that
the Manager itself is not a listed
entity but that the entity which it
manages, Frasers Centrepoint Trust
(“FCT”), is listed and managed
externally by the Manager.
Board
Responsibility
Guideline 1.5
Members
of the Board
What are the types of material transactions which require
approval from the Board?
Please refer to page 99 of this
Annual Report.
Guideline 2.6
(a) What is the Board’s policy with regard to diversity
in identifying director nominees?
(b)
Please state whether the current composition
of the Board provides diversity on each of
the following – skills, experience, gender and
knowledge of the Company, and elaborate with
numerical data where appropriate.
Please refer to pages 100 to 102 of
this Annual Report.
Please refer to pages 100 to 102 of
this Annual Report.
(c) What steps has the Board taken to achieve the
balance and diversity necessary to maximize its
effectiveness?
Please refer to pages 100 to 102 of
this Annual Report.
Guideline 4.6
Please describe the board nomination process for the
Company in the last financial year for (i) selecting and
appointing new directors and (ii) re-electing incumbent
directors
Please refer to page 102 of this
Annual Report.
Directors of the Manager are not
subject to periodic retirement by
rotation.
114
CORPORATE GOVERNANCE REPORTFRASERS CENTREPOINT TRUST Guideline
Questions
How has the Company complied
Guideline 1.6
(a)
Are new directors given formal training? If not,
please explain why
Yes. Please refer to page 99 of this
Annual Report.
(b) What are the types of information and training
provided to (i) new directors and (ii) existing
directors to keep them up-to-date?
Please refer to page 99 of this
Annual Report.
Guideline 4.4
(a) What is the maximum number of listed company
board representations that the Company has
prescribed for its directors? What are the reasons
for this number?
No maximum number has been
prescribed.
(b)
If a maximum number has not been determined,
what are the reasons?
Please refer to page 103 of this
Annual Report.
(c) What are the specific considerations in deciding
on the capacity of directors?
Please refer to page 103 of this
Annual Report.
Board
Evaluation
Guideline 5.1
Independence
of Directors
Guideline 2.1
(a) What was the process upon which the Board
reached the conclusion on its performance for the
financial year?
Please refer to page 103 of this
Annual Report.
(b)
Has the Board met its performance objectives?
Yes. Please refer to page 103 of this
Annual Report.
Does the Company comply with the guideline on the
proportion of independent directors on the Board? If
not, please state the reasons for the deviation and the
remedial action taken by the Company
Yes. Please refer to pages 100 to
101 of this Annual Report.
Guideline 2.3
(a)
Is there any director who is deemed to be
independent by the Board, notwithstanding
the existence of a relationship as stated in the
Code that would otherwise deem him not to be
independent? If so, please identify the director
and specify the nature of such relationship.
None.
(b) What are the Board’s reasons for considering
him independent? Please provide a detailed
explanation.
Not applicable.
115
CORPORATE GOVERNANCE REPORTANNUAL REPORT 2016 Guideline
Questions
How has the Company complied
Guideline 2.4
(a)
Has any independent director served on the Board
for more than nine years from the date of his first
appointment? If so, please identify the director
and set out the Board’s reasons for considering
him independent.
Yes. Mr Bobby Chin Yoke Choong
and Mr Soh Kim Soon have served
on the Board for more than nine
years from the respective dates
of their first appointment. Please
refer to page 101 of this Annual
Report for the Board’s reasons for
considering them independent.
Disclosure on
Remuneration
Guideline 9.2
Has the Company disclosed each director’s and the CEO’s
remuneration as well as a breakdown (in percentage
or dollar terms) into base/fixed salary, variable or
performance related income/bonuses, benefits-in-kind,
stock options granted, share-based
incentives and
awards, and other long-term incentives? If not, what are
the reasons for not disclosing so?
The fees paid to all directors for the
financial year have been disclosed.
Please refer to pages 104 to 106 of
this Annual Report.
Guideline 9.3
(a)
Has the Company disclosed each key management
personnel’s remuneration, in bands of S$250,000
or in more detail, as well as a breakdown (in
percentage or dollar terms) into base/fixed salary,
variable or performance-related income/bonuses,
benefits-in-kind, stock options granted, share-
based incentives and awards, and other long-
term incentives? If not, what are the reasons for
not disclosing so?
Please refer to pages 104 to 106 of
this Annual Report.
(b)
Please disclose the aggregate remuneration paid
to the top key management personnel (who are
not directors or the CEO).
Please refer to pages 104 to 106 of
this Annual Report.
Guideline 9.4
Is there any employee who is an immediate family
member of a director or the CEO, and whose
remuneration exceeds S$50,000 during the year? If so,
please identify the employee and specify the relationship
with the relevant director or the CEO.
No.
Guideline 9.6
(a)
Please describe how the remuneration received
by executive directors and key management
the
personnel has been determined by
performance criteria.
Please refer to pages 104 to 106 of
this Annual Report.
(b) What were the performance conditions used to
determine their entitlement under the short-term
and long-term incentive schemes?
Please refer to pages 104 to 106 of
this Annual Report.
(c) Were all of these performance conditions met? If
not, what were the reasons?
Please refer to pages 104 to 106 of
this Annual Report.
116
CORPORATE GOVERNANCE REPORTFRASERS CENTREPOINT TRUST Guideline
Questions
How has the Company complied
Risk Management
and Internal
Controls
Guideline 6.1
What types of information does the Company provide to
independent directors to enable them to understand its
business, the business and financial environment as well
as the risks faced by the Company? How frequently is the
information provided?
Please refer to page 103 of this
Annual Report.
Guideline 13.1
Does the Company have an internal audit function? If
not, please explain why
Yes. Please refer to pages 109 to
110 of this Annual Report.
Guideline 11.3
(a)
(b)
In relation to the major risks faced by the Company,
including
financial, operational, compliance,
information technology and sustainability, please
state the bases for the Board’s view on the
adequacy and effectiveness of the Company’s
internal controls and risk management systems.
In respect of the past 12 months, has the Board
received assurance from the CEO and the CFO
as well as the internal auditor that: (i) the financial
records have been properly maintained and the
financial statements give true and fair view of the
Company’s operations and finances; and (ii) the
Company’s risk management and internal control
systems are effective? If not, how does the Board
assure itself of points (i) and (ii) above?
Please refer to page 108 of this
Annual Report.
Please refer to page 107 of this
Annual Report.
Guideline 12.6
(a)
Please provide a breakdown of the fees paid in
total to the external auditors for audit and non-
audit services for the financial year
Please refer to page 108 of this
Annual Report.
(b)
If the external auditors have supplied a substantial
volume of non-audit services to the Company,
please state the bases for the Audit Committee’s
view on the independence of the external auditors
Please refer to page 109 of this
Annual Report.
Communication
with Shareholders
Guideline 15.4
(a)
Does the Company regularly communicate with
shareholders and attend to their questions? How
often does the Company meet with institutional
and retail investors?
Yes. Please refer to pages 110 to
111 of this Annual Report.
Is this done by a dedicated investor relations team (or
equivalent)? If not, who performs this role?
Yes. Please refer to page 110 of this
Annual Report.
Guideline 15.5
If the Company is not paying any dividends for the
financial year, please explain why.
Not applicable. Please refer to the
“Distribution Statements” on page
127 of this Annual Report.
117
CORPORATE GOVERNANCE REPORTANNUAL REPORT 2016 FINANCIALS
119 Report of the Trustee
120 Statement by the Manager
121
Independent Auditor’s Report
to the Unitholders of Frasers
Centrepoint Trust
125 Balance Sheets
126 Statements of Total Return
127 Distribution Statements
128 Statements of Movements
in Unitholders’ Funds and
Translation Reserve
129 Portfolio Statements
132 Cash Flow Statement
133 Notes to the Financial
Statements
OTHERS
175 Statistics of Unitholders
178 Additional Information
179 Notice of Annual General
Meeting
Proxy Form
REPORT OF THE TRUSTEE
HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”) is under a duty to take into custody and hold the
assets of Frasers Centrepoint Trust (the “Trust”) and its subsidiary (collectively, the “Group”) in trust for the holders
(“Unitholders”) of units in the Trust (the “Units”). In accordance with the Securities and Futures Act, Chapter 289,
of Singapore, its subsidiary legislation and the Code on Collective Investment Schemes, the Trustee shall monitor
the activities of Frasers Centrepoint Asset Management Ltd. (the “Manager”) for compliance with the limitations
imposed on the investment and borrowing powers as set out in the trust deed dated 5 June 2006 (as amended by
a first supplemental deed dated 4 October 2006, a first amending and restating deed dated 7 May 2009, a second
supplemental deed dated 22 January 2010 and a third supplemental deed dated 17 December 2015) (the “Trust
Deed”) between the Manager and the Trustee in each annual accounting period and report thereon to Unitholders in
an annual report.
To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Trust during the period
covered by these financial statements set out on pages 125 to 174 in accordance with the limitations imposed on the
investment and borrowing powers set out in the Trust Deed.
For and on behalf of the Trustee,
HSBC Institutional Trust Services (Singapore) Limited
Esther Fong
Senior Vice President, Trustee Services
Singapore
18 November 2016
119
ANNUAL REPORT 2016 STATEMENT BY THE MANAGER
In the opinion of the directors of Frasers Centrepoint Asset Management Ltd., the accompanying financial statements
set out on pages 125 to 174, comprising the Balance Sheets and Portfolio Statements as at 30 September 2016,
the Statements of Total Return, Distribution Statements, Statements of Movements in Unitholders’ Funds and Cash
Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory
notes are drawn up so as to present fairly, in all material respects, the financial positions of the Group and the Trust
as at 30 September 2016, the total return, distributable income, movements in Unitholders’ funds of the Group and
of the Trust and cash flow of the Group for the year ended on that date in accordance with the recommendations
of Statement of Recommended Accounting Practice 7 Reporting Framework for Unit Trusts issued by the Institute
of Singapore Chartered Accountants and the provisions of the Trust Deed. At the date of this statement, there are
reasonable grounds to believe that the Group and the Trust will be able to meet their financial obligations as and when
they materialise.
For and on behalf of the Manager,
Frasers Centrepoint Asset Management Ltd.
Mr Philip Eng Heng Nee
Director
Dr Chew Tuan Chiong
Director and Chief Executive Officer
Singapore
18 November 2016
120
FRASERS CENTREPOINT TRUST INDEPENDENT AUDITORS’ REPORT
TO THE UNITHOLDERS
FRASERS CENTREPOINT TRUST
(CONSTITUTED UNDER A TRUST DEED (AS AMENDED) IN THE REPUBLIC OF SINGAPORE)
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the financial statements of Frasers Centrepoint Trust (the “Trust”) and its subsidiary (the “Group”),
which comprise the consolidated balance sheet and consolidated portfolio statement of the Group and the balance
sheet and portfolio statement of the Trust as at 30 September 2016, the consolidated statement of total return,
consolidated distribution statement, consolidated statement of movements in unitholders’ funds and consolidated
cash flow statement of the Group and the statement of total return, distribution statement and statement of movements
in unitholders’ funds of the Trust for the year then ended, and notes to the financial statements, including a summary
of significant accounting policies as set out on pages 125 to 174.
In our opinion, the accompanying consolidated financial statements of the Group and the balance sheet, statement
of total return, distribution statement and statement of movements in unitholders’ funds of the Trust present fairly,
in all material respects, the consolidated financial position of the Group and the financial position of the Trust as at
30 September 2016 and the consolidated total return, consolidated distributable income, consolidated movements
in unitholders’ funds and consolidated cash flows of the Group and the total return, distributable income and
movements in unitholders’ funds of the Trust for the year then ended in accordance with the recommendations of
Statement of Recommended Accounting Practice 7 (“RAP 7”) Reporting Framework for Unit Trusts issued by the
Institute of Singapore Chartered Accountants.
Basis for opinion
We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under
those standards are further described in the Auditors’ responsibilities for the audit of the financial statements section of
our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority
(“ACRA”) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”)
together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Valuation of investment properties
(Refer to Portfolio Statement and Note 3 to the financial statements)
Risk
The Group and the Trust own six suburban retail malls located all around Singapore. These malls, classified as investment
properties, are all located within close proximity to Mass Rapid Transit stations and bus interchanges in populated
residential areas. As at 30 September 2016, the investment properties, with carrying amount of $2.51 billion, represent
the single largest asset category on the balance sheet of the Group and the Trust.
The investment properties are stated at their fair values based on independent external valuations. The valuation
process is considered a key audit matter because it involves significant judgement in determining the appropriate
valuation methodology to be used, and in estimating the underlying assumptions to be applied. Any changes in the
key assumptions applied could result in material impact in the financial statements.
121
ANNUAL REPORT 2016 INDEPENDENT AUDITORS’ REPORT (cont’d)
Our response
We assessed the Group’s processes for the selection of the external valuers, the determination of the scope of work of
the valuers, and the review and acceptance of the valuation reports issued by the external valuers.
We evaluated the qualifications and competence of the external valuers and held discussions with the valuers to
understand their valuation methods and assumptions used.
We considered the valuation methodologies used against those applied by other valuers for similar property types.
We challenged the capitalisation and discount rates used in the valuations by comparing them against historical
rates and available industry data, taking into consideration comparability and market factors. Where the rates were
outside the expected range, we undertook further procedures to understand the effect of additional factors and, when
necessary, held further discussions with the valuers.
We also considered the adequacy of the disclosures in the financial statements.
Our findings
The Group has a structured process in appointing and instructing valuers, and in reviewing and accepting their
valuations. The valuers are members of recognised professional bodies for valuers and have considered their own
independence in carrying out their work.
The approach to the methodologies and in deriving the assumptions in the valuations is supported by market practices
and data, and the disclosures in the financial statements are in compliance with RAP 7.
Other matter
The financial statements for the year ended 30 September 2015 were audited by another auditor who expressed an
unmodified opinion on those financial statements on 12 November 2015.
Other Information
Frasers Centrepoint Asset Management Ltd., the Manager of the Trust (the “Manager”) of the Trust is responsible
for the other information. The other information comprises the About Frasers Centrepoint Trust, Structure of Frasers
Centrepoint Trust, Key Financial Figures for FY2016, 10-Year Performance at a Glance, 10-Year Financial Highlights,
Letter to Unitholders, Financial Year 2016 in Brief, FCT Unit Price Performance, Board of Directors, Trust Management
Team, Property Management Team, Operations & Financial Review, Capital Resources, Risk Management, Retail
Property Market Review, FCT Portfolio Summary, Causeway Point, Northpoint, Changi City Point, Bedok Point, YewTee
Point, Anchorpoint, Hektar REIT, Corporate Governance Report, Report of the Trustee, Statement by the Manager,
Additional Information, Notice of Annual General Meeting, and Proxy Form, but does not include the financial
statements and our auditors’ report thereon, which we obtained prior to the date of this auditors’ report, and the
Investor Relations, Sustainability Report and Statistics of Unitholders (the “Reports”) which are expected to be made
available to us after that date.
Our opinion on the financial statements does not cover the other information and we do not and will not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified
above and, in doing so, consider whether the other information is materially inconsistent with the financial statements
or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
122
FRASERS CENTREPOINT TRUST INDEPENDENT AUDITORS’ REPORT (cont’d)
If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’
report, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
When we read the Reports, if we conclude that there is a material misstatement therein, we are required to communicate
the matter to the directors of the Manager and take appropriate actions in accordance with SSAs.
Responsibilities of management and directors of the Manager for the financial statements
The management of the Manager of the Trust is responsible for the preparation and fair presentation of these
financial statements in accordance with the recommendations of RAP 7 issued by the Institute of Singapore Chartered
Accountants, and for such internal control as the management of the Manager determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the management of the Manager is responsible for assessing the Group’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the management of the Manager either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
The responsibilities of the directors of the Manager include overseeing the Group’s financial reporting process.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
•
•
•
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the management of the Manager.
Conclude on the appropriateness of the use of the going concern basis of accounting by the management
of the Manager and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
123
ANNUAL REPORT 2016 INDEPENDENT AUDITORS’ REPORT (cont’d)
•
•
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our
audit opinion.
We communicate with the directors of the Manager regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.
We also provide the directors of the Manager with a statement that we have complied with relevant ethical requirements
regarding independence, and communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors of the Manager, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matter. We
describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
The engagement partner on the audit resulting in this independent auditors’ report is Karen Lee Shu Pei.
KPMG LLP
Public Accountants and
Chartered Accountants
Singapore
18 November 2016
124
FRASERS CENTREPOINT TRUST BALANCE SHEETS
AS AT 30 SEPTEMBER 2016
Non-current assets
Investment properties
Fixed assets
Intangible assets
Investment in subsidiary
Investment in associate
Investment in joint venture
Current assets
Trade and other receivables
Cash and cash equivalents
Total assets
Current liabilities
Trade and other payables
Current portion of security deposits
Deferred income
Interest-bearing borrowings
Non-current liabilities
Interest-bearing borrowings
Non-current portion of security deposits
Deferred income
Total liabilities
Net assets
Represented by:-
Unitholders’ funds
Translation reserve
Unitholders’ funds and reserve
Units in issue (’000)
Net asset value per Unit
* Denotes amount less than $500
Note
Group
Trust
2016
$’000
2015
$’000
2016
$’000
2015
$’000
3
4
5
6
7
8
9
10
11
12
13
13
12
14
15
16
2,509,000
86
48
–
59,600
235
2,568,969
2,464,000
105
66
–
62,823
154
2,527,148
2,509,000
86
48
*
63,843
1
2,572,978
2,464,000
105
66
*
63,843
1
2,528,015
6,800
18,708
25,508
5,401
16,197
21,598
6,800
18,708
25,508
5,401
16,197
21,598
2,594,477
2,548,746
2,598,486
2,549,613
39,960
20,413
427
218,000
278,800
516,000
23,883
149
540,032
31,813
17,124
732
278,000
327,669
440,000
25,957
576
466,533
39,978
20,413
427
218,000
278,818
516,000
23,883
149
540,032
31,831
17,124
732
278,000
327,687
440,000
25,957
576
466,533
818,832
794,202
818,850
794,220
1,775,645
1,754,544
1,779,636
1,755,393
1,794,694
(19,049)
1,775,645
1,774,711
(20,167)
1,754,544
1,779,636
–
1,779,636
1,755,393
–
1,755,393
919,369
916,840
919,369
916,840
$
1.93
$
1.91
$
1.93
$
1.91
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
125
ANNUAL REPORT 2016 STATEMENTS OF TOTAL RETURN
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2016
Gross revenue
Property expenses
Net property income
Interest income
Borrowing costs
Asset management fees
Valuation fees
Trustee’s fees
Audit fees
Other professional fees
Other charges
Net income
Distributions from associate
Distributions from joint venture
Share of results of associate
– operations
– revaluation surplus
Share of results of joint venture
– operations
Surplus on revaluation of investment properties
Unrealised (loss)/gain from fair valuation
of derivatives
Total return before tax
Taxation
Total return for the year
Earnings per Unit (cents)
Basic
Diluted
Note
17
18
19
20
3
21
22
Group
Trust
2016
$’000
2015
$’000
2016
$’000
2015
$’000
183,816
(53,964)
129,852
189,242
(58,199)
131,043
183,816
(53,964)
129,852
189,242
(58,199)
131,043
–
(17,187)
(14,209)
(127)
(403)
(104)
(417)
(592)
96,813
–
–
3,679
(4,095)
538
28,407
180
(19,336)
(14,097)
(125)
(397)
(108)
(310)
(645)
96,205
–
–
4,550
722
506
64,039
–
(17,187)
(14,209)
(127)
(403)
(104)
(417)
(594)
96,811
3,926
458
–
–
180
(19,336)
(14,097)
(125)
(397)
(108)
(310)
(648)
96,202
4,243
352
–
–
–
28,407
–
64,039
(1,896)
123,446
5,442
171,464
(1,896)
127,706
5,442
170,278
–
123,446
–
171,464
–
127,706
–
170,278
13.44
18.71
13.91
18.58
13.44
18.71
13.91
18.58
126
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
FRASERS CENTREPOINT TRUST DISTRIBUTION STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2016
Income available for distribution to Unitholders
at beginning of year
Net income
Net tax adjustments (Note A)
Distributions from associate
Distributions from joint venture
Income available for distribution to Unitholders
Distributions to Unitholders:
Distribution of 2.785 cents per Unit for period
from 1/7/2014 to 30/9/2014
Distribution of 2.75 cents per Unit for period
from 1/10/2014 to 31/12/2014
Distribution of 2.963 cents per Unit for period
from 1/1/2015 to 31/3/2015
Distribution of 3.036 cents per Unit for period
from 1/4/2015 to 30/6/2015
Distribution of 2.859 cents per Unit for period
from 1/7/2015 to 30/9/2015
Distribution of 2.87 cents per Unit for period
from 1/10/2015 to 31/12/2015
Distribution of 3.039 cents per Unit for period
from 1/1/2016 to 31/3/2016
Distribution of 3.04 cents per Unit for period
from 1/4/2016 to 30/6/2016
Group
Trust
2016
$’000
2015
$’000
2016
$’000
2015
$’000
26,334
96,813
6,904
3,926
458
108,101
134,435
–
–
–
–
26,223
26,335
27,913
25,612
96,205
5,612
4,243
352
106,412
132,024
25,505
25,194
27,156
27,835
26,331
96,811
6,906
3,926
458
108,101
134,432
–
–
–
–
–
–
–
26,223
26,335
27,913
25,609
96,202
5,615
4,243
352
106,412
132,021
25,505
25,194
27,156
27,835
–
–
–
27,949
108,420
–
105,690
27,949
108,420
–
105,690
Income available for distribution to
Unitholders at end of year
26,015
26,334
26,012
26,331
Distribution per unit (cents) *
11.764
11.608
11.764
11.608
Note A – Net tax adjustments relate to the following items:
– Asset management fees paid/payable in Units
– Trustee’s fees
– Amortisation of loan arrangement fees
– Amortisation of lease incentives
– Deferred income and amortisation of rental deposits
– Other items
Net tax adjustments
6,021
403
888
(537)
11
118
6,904
2,819
397
889
480
4
1,023
5,612
6,021
403
888
(537)
11
120
6,906
2,819
397
889
480
4
1,026
5,615
*
The Distribution per unit relates to the distributions in respect of the relevant financial year. The distribution relating to the last quarter of 2016 will
be paid after 30 September 2016.
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
127
ANNUAL REPORT 2016 STATEMENTS OF MOVEMENTS IN UNITHOLDERS’ FUNDS AND
TRANSLATION RESERVE
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2016
Group
Trust
2016
$’000
2015
$’000
2016
$’000
2015
$’000
Net assets at beginning of year
1,754,544
1,698,677
1,755,393
1,687,994
Operations
Total return for the year
Unitholders’ transactions
Creation of Units
– issued as satisfaction of asset management fees
Distributions to Unitholders
Net decrease in net assets resulting from
Unitholders’ transactions
123,446
171,464
127,706
170,278
4,957
(108,420)
2,811
(105,690)
4,957
(108,420)
2,811
(105,690)
(103,463)
(102,879)
(103,463)
(102,879)
Movement in translation reserve (Note 14)
1,118
(12,718)
–
–
Net assets at end of year
1,775,645
1,754,544
1,779,636
1,755,393
128
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
FRASERS CENTREPOINT TRUST PORTFOLIO STATEMENTS
AS AT 30 SEPTEMBER 2016
GROUP
Description
of Property
Term of
Lease
Location
Existing
Use
Occupancy
Rate as at
30 September
2016
%
At Valuation
2016
$’000
Percentage of
Total Assets
2015 2016 2015
%
$’000
%
Investment properties in Singapore
Causeway Point
Northpoint
99-year
leasehold
from
30 October
1995
99-year
leasehold
from
1 April
1990
Anchorpoint
Freehold
YewTee Point
Bedok Point
Changi City
Point
99-year
leasehold
from
3 January
2006
99-year
leasehold
from
15 March
1978
60-year
leasehold
from
30 April
2009
1 Woodlands
Square
930 Yishun
Avenue 2
368 & 370
Alexandra
Road
21 Choa Chu
Kang North 6
799 New
Upper Changi
Road
5 Changi
Business Park
Central 1
Commercial
99.8 1,143,000 1,110,000
44.1
43.6
Commercial
70.9
672,000
665,000
25.9
26.1
Commercial
96.7
103,000
100,000
4.0
3.9
Commercial
98.7
172,000
170,000
6.6
6.7
Commercial
95.0
108,000
108,000
4.1
4.2
Commercial
81.1
311,000
311,000
12.0
12.2
Investment properties, at valuation
2,509,000 2,464,000
96.7
96.7
Investment in associate (Note 7)
Other assets
Total assets attributable to Unitholders
59,600
62,823
2,568,600 2,526,823
2.3
99.0
2.5
99.2
25,877
0.8
21,923
2,594,477 2,548,746 100.0 100.0
1.0
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
129
ANNUAL REPORT 2016 PORTFOLIO STATEMENTS
AS AT 30 SEPTEMBER 2016
TRUST
Description of
Property
Term of
Lease
Location
Existing
Use
Occupancy
Rate as at
30 September
2016
%
At Valuation
2016
$’000
Percentage of
Total Assets
2015 2016 2015
%
$’000
%
Investment properties in Singapore
Causeway Point
Northpoint
99-year
leasehold
from
30 October
1995
99-year
leasehold
from
1 April
1990
Anchorpoint
Freehold
YewTee Point
Bedok Point
Changi City
Point
99-year
leasehold
from
3 January
2006
99-year
leasehold
from
15 March
1978
60-year
leasehold
from
30 April
2009
1 Woodlands
Square
930 Yishun
Avenue 2
368 & 370
Alexandra
Road
21 Choa Chu
Kang North 6
799 New
Upper Changi
Road
5 Changi
Business Park
Central 1
Commercial
99.8 1,143,000 1,110,000
44.0
43.5
Commercial
70.9
672,000
665,000
25.9
26.1
Commercial
96.7
103,000
100,000
4.0
3.9
Commercial
98.7
172,000
170,000
6.6
6.7
Commercial
95.0
108,000
108,000
4.1
4.2
Commercial
81.1
311,000
311,000
12.0
12.2
Investment properties, at valuation
2,509,000 2,464,000
96.6
96.6
Investment in associate (Note 7)
Other assets
Total assets attributable to Unitholders
63,843
63,843
2,572,843 2,527,843
2.4
99.0
2.5
99.1
25,643
0.9
21,770
2,598,486 2,549,613 100.0 100.0
1.0
130
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
FRASERS CENTREPOINT TRUST PORTFOLIO STATEMENTS
AS AT 30 SEPTEMBER 2016
On 30 September 2016, independent valuations of the investment properties were undertaken by Knight Frank Pte Ltd
(“Knight Frank”), Savills Valuation and Professional Services (S) Pte Ltd (“Savills”), Colliers International Consultancy &
Valuation (Singapore) Pte Ltd (“Colliers”), and Edmund Tie & Company (SEA) Pte Ltd (“Edmund Tie”). The Manager
believes that these independent valuers possess appropriate professional qualifications and recent experience in
the location and category of the investment properties being valued. The valuations were performed based on the
following methods:
Description of
Property
Valuer
Valuation Method
Causeway Point
Edmund Tie
(2015: DTZ)
Northpoint
Knight Frank
(2015: JLL)
Anchorpoint
Savills
(2015: Colliers)
YewTee Point
Savills
(2015: Colliers)
Bedok Point
Savills
(2015: CBRE)
Changi City Point Colliers
(2015: Knight Frank)
Capitalisation approach and discounted
cash flow analysis (2015: Capitalisation
approach and discounted cash flow
analysis)
Capitalisation approach and discounted
cash flow analysis (2015: Capitalisation
approach and discounted cash flow
analysis)
Capitalisation approach, discounted
cash flow analysis and direct comparison
method (2015: Capitalisation approach,
discounted cash flow analysis and direct
comparison method)
Capitalisation approach, discounted
cash flow analysis and direct comparison
method (2015: Capitalisation approach,
discounted cash flow analysis and direct
comparison method)
Capitalisation approach, discounted
cash flow analysis and direct comparison
method (2015: Capitalisation approach
and discounted cash flow analysis)
Capitalisation approach and discounted
cash flow analysis (2015: Capitalisation
approach and discounted cash flow
analysis)
Valuation
2016
$’000
2015
$’000
1,143,000
1,110,000
672,000
665,000
103,000
100,000
172,000
170,000
108,000
108,000
311,000
311,000
The net changes in fair values of these investment properties have been recognised in the Statements of Total Return
in accordance with the Group’s accounting policies.
The investment properties are leased to third party tenants. Generally, these leases contain an initial non-cancellable
period of three years. Subsequent renewals are negotiated with individual lessees. Contingent rent, which comprises
gross turnover rent, recognised in the Statements of Total Return of the Group and the Trust amounted to $9,141,000
(2015: $9,288,000).
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
131
ANNUAL REPORT 2016 CASH FLOW STATEMENT
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2016
Operating activities
Total return before tax
Adjustments for:
Allowance for doubtful receivables
Write back of allowance for doubtful receivables
Borrowing costs
Interest income
Asset management fees paid/payable in Units
Depreciation of fixed assets
Amortisation of intangible assets
Share of associate’s results (including revaluation surplus)
Share of joint venture’s results
Surplus on revaluation of investment properties
Unrealised loss/(gain) from fair valuation of derivatives
Amortisation of lease incentives
Deferred income recognised
Operating income before working capital changes
Changes in working capital:
Trade and other receivables
Trade and other payables
Cash flows generated from operating activities
Investing activities
Distributions received from associate
Distributions received from joint venture
Interest received
Capital expenditure on investment properties
Investment in joint venture
Acquisition of fixed assets
Cash flows used in investing activities
Financing activities
Proceeds from borrowings
Repayment of borrowings
Borrowing costs paid
Distributions to Unitholders
Payment of issue and finance costs
Cash flows used in from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 10)
Significant Non-Cash Transactions
Group
2016
$’000
2015
$’000
123,446
171,464
38
(36)
17,187
–
6,021
41
18
416
(538)
(28,407)
1,896
(537)
(732)
118,813
8
(7)
19,336
(180)
2,819
46
18
(5,272)
(506)
(64,039)
(5,442)
480
(975)
117,750
(594)
7,768
125,987
(827)
3,081
120,004
3,926
458
–
(17,540)
–
(23)
(13,179)
315,500
(299,500)
(16,182)
(108,420)
(1,695)
(110,297)
2,511
16,197
18,708
4,243
352
180
(5,356)
(1)
(38)
(620)
98,000
(119,000)
(18,110)
(105,690)
(128)
(144,928)
(25,544)
41,741
16,197
During the financial years, 2,986,994 (2015:1,432,104) Units were issued and issuable in satisfaction of asset
management fees payable in Units, amounting to a value of $6,021,088 (2015: $2,819,438) in respect of the financial
year ended 30 September 2016.
132
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
FRASERS CENTREPOINT TRUST The following notes form an integral part of the financial statements.
1.
GENERAL
Frasers Centrepoint Trust (the “Trust”) is a Singapore-domiciled unit trust constituted pursuant to a trust
deed dated 5 June 2006, and any amendment or modification thereof (the “Trust Deed”), between Frasers
Centrepoint Asset Management Ltd. (the “Manager”) and HSBC Institutional Trust Services (Singapore) Limited
(the “Trustee”). The Trust Deed is governed by the laws of the Republic of Singapore. The Trustee is under a
duty to take into custody and hold the assets of the Trust and its subsidiary (collectively, the “Group”) in trust
for the holders (“Unitholders”) of units in the Trust (the “Units”). The address of the Trustee’s registered office
is 21 Collyer Quay #13-02 HSBC Building Singapore 049320.
The Trust was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited
(“SGX-ST”) on 5 July 2006 and was included in the Central Provident Fund Investment Scheme (“CPFIS”) on
5 July 2006.
The principal activity of the Trust is to invest in income-producing properties used primarily for retail purposes, in
Singapore and overseas, with the primary objective of delivering regular and stable distributions to Unitholders
and to achieve long-term capital growth. The principal activity of the subsidiary is set out in Note 6.
The financial statements were authorised for issue by the Manager and the Trustee on 18 November 2016.
The Trust has entered into several service agreements in relation to management of the Trust and its property
operations. The fee structures of these services are as follows:
(a)
Property management fees
Under the property management agreements, fees are charged as follows:
(i)
2.0% per annum of the gross revenue of the properties;
(ii)
(iii)
2.0% per annum of the net property income of the properties (calculated before accounting for the
property management fees); and
0.5% per annum of the net property income of the properties (calculated before accounting for the
property management fees), in lieu of leasing commissions.
The property management fees are payable monthly in arrears.
(b)
Asset management fees
Pursuant to the Trust Deed, asset management fees comprise the following:
(i)
(ii)
A base fee equal to a rate of 0.3% per annum of the value of Deposited Property (being all assets, as
stipulated in the Trust Deed) of the Trust; and
An annual performance fee equal to a rate of 5.0% per annum of the Net Property Income (as defined
in the Trust Deed) of the Trust and any Special Purpose Vehicles (as defined in the Trust Deed) for each
financial year.
Any increase in the rate or any change in the structure of the asset management fees must be approved
by an Extraordinary Resolution of Unitholders passed at a Unitholders’ meeting duly convened and held in
accordance with the provisions of the Trust Deed.
133
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 1.
GENERAL (CONT’D)
(b)
Asset management fees (Cont’d)
The Manager may elect to receive the fees in cash or Units or a combination of cash and Units (as it may in its
sole discretion determine). For the year ended 30 September 2016, the Manager has opted to receive 20% - 50%
(2015: 20%) of the asset management fees in the form of Units with the balance in cash. The portion of the asset
management fees in the form of Units is payable on a quarterly basis in arrears, and the portion in cash is payable
on a monthly basis in arrears.
The Manager is also entitled to receive acquisition fee at the rate of 1% of the acquisition price and a divestment
fee of 0.5% of the sale price on all future acquisitions or disposals of properties or investments.
(c)
Trustee’s fees
Pursuant to the Trust Deed, the Trustee’s fees shall not exceed 0.1% per annum of the value of Deposited
Property of the Trust, subject to a minimum of $9,000 per month, excluding out-of-pocket expenses and GST.
Any increase in the maximum permitted or any change in the structure of the Trustee’s fee must be approved
by an Extraordinary Resolution of Unitholders passed at a Unitholders’ meeting duly convened and held in
accordance with the provisions of the Trust Deed.
The Trustee’s fees are payable monthly in arrears.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis of preparation
The financial statements have been prepared in accordance with the recommendations of Statement of
Recommended Accounting Practice (“RAP”) 7 Reporting Framework for Unit Trusts issued by the Institute of
Singapore Chartered Accountants (“ISCA”), the applicable requirements of the Code on Collective Investment
Schemes (the “CIS Code”) issued by the Monetary Authority of Singapore (“MAS”) and the provisions of
the Trust Deed. RAP 7 requires the accounting policies to generally comply with the principles relating to
recognition and measurement under the Singapore Financial Reporting Standards (“FRS”).
The financial statements, which are presented in Singapore dollars and rounded to the nearest thousand,
unless otherwise stated, have been prepared on the historical cost basis except as disclosed in the accounting
policies below.
The preparation of the financial statements in conformity with RAP 7 requires the Manager to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical
experience and relevant factors, including expectations of future events that are believed to be reasonable
under the circumstances. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Financial impact arising from
revisions to accounting estimates are recognised in the period in which the estimates are revised and in any
future periods affected.
134
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(a)
Basis of preparation (Cont’d)
Information about critical judgements in applying accounting policies that have the most significant effect on
the amounts recognised in the financial statements is included in the following note:
(i)
Note 7 – Accounting for investment in associate.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material
adjustment within the next financial year are included in the following notes:
(i)
Note 3 – Valuation of investment properties; and
(ii)
Note 11 – Valuation of interest rate swaps.
(b)
New standards and interpretations not adopted
A number of new standards and amendments to standards are effective for annual periods beginning
after 1 October 2015, and have not been applied in preparing these financial statements. For those new
standards and amendments to standards that are expected to have an effect on the financial statements
of the Group and the Trust in future financial periods, the Group will assess the transition options and the
potential impact on its financial statements, and to implement these standards. The Group does not plan
to adopt these standards early.
Applicable to financial statements for the year ending 30 September 2019
(i)
FRS 115 Revenue from Contracts with Customers
FRS 115 establishes a comprehensive framework for determining whether, how much and when revenue
is recognised. It also introduces new cost guidance which requires certain costs of obtaining and fulfilling
contracts to be recognised as separate assets when specified criteria are met.
When effective, FRS 115 replaces existing revenue recognition guidance, including FRS 18 Revenue,
FRS 11 Construction Contracts, INT FRS 113 Customer Loyalty Programmes, INT FRS 115 Agreements
for the Construction of Real Estate, INT FRS 118 Transfers of Assets from Customers and INT FRS 31
Revenue – Barter Transactions Involving Advertising Services.
FRS 115 is effective for annual periods beginning on or after 1 January 2018, with early adoption
permitted. FRS 115 offers a range of transition options including full retrospective adoption where an
entity can choose to apply the standard to its historical transactions and retrospectively adjust each
comparative period presented in its financial statements for the year ending 30 September 2019. When
applying the full retrospective method, an entity may also elect to use a series of practical expedients
to ease transition.
135
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(b)
New standards and interpretations not adopted (cont’d)
(ii)
FRS 109 Financial instruments
FRS 109 replaces most of the existing guidance in FRS 39 Financial Instruments: Recognition and
Measurement. It includes revised guidance on the classification and measurement of financial
instruments, a new expected credit loss model for calculating impairment on financial assets, and
new general hedge accounting requirements. It also carries forward the guidance on recognition and
derecognition of financial instruments from FRS 39.
FRS 109 is effective for annual periods beginning on or after 1 January 2018, with early adoption
permitted. Retrospective application is generally required, except for hedge accounting. For hedge
accounting, the requirements are generally applied prospectively, with some limited exceptions.
Restatement of comparative information is not mandatory. If comparative information is not restated,
the cumulative effect is recorded in opening equity as at 1 October 2018.
Applicable to financial statements for the year ending 30 September 2020
(i)
FRS 116 Leases
FRS 116 eliminates the lessee’s classification of leases as either operating leases or finance leases and
introduces a single lessee accounting model. Applying the new model, a lessee is required to recognise
right-of-use (ROU) assets and lease liabilities for all leases with a term of more than 12 months, unless
the underlying asset is of low value.
FRS 116 substantially carries forward the lessor accounting requirements in FRS 17 Leases. Accordingly,
a lessor continues to classify its leases as operating leases or finance leases, and to account for these
two types of leases using the FRS 17 operating lease and finance lease accounting models respectively.
However, FRS 116 requires more extensive disclosures to be provided by a lessor.
When effective, FRS 116 replaces existing lease accounting guidance, including FRS 17, INT FRS 104
Determining whether an Arrangement contains a Lease; INT FRS 15 Operating Leases—Incentives; and
INT FRS 27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.
FRS 116 is effective for annual periods beginning on or after 1 January 2019, with early adoption
permitted if FRS 115 is also applied.
(c)
Foreign currency
Transactions in foreign currencies are measured and recorded on initial recognition in Singapore dollars, the
functional currency of the Trust and subsidiary, at exchange rates approximating those ruling at the transaction
dates. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange
ruling at the balance sheet date. Non-monetary items that are measured in terms of historical cost in a foreign
currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair
value was determined.
136
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(c)
Foreign currency (cont’d)
Exchange differences arising on the settlement of monetary items or on translating monetary items at the
balance sheet date are recognised in the Statements of Total Return except for exchange differences arising
on monetary items that form part of the Group’s net investment in foreign operations, which are recognised
initially in equity as translation reserve in the Balance Sheets and recognised in the Statements of Total Return
on disposal of the foreign operation.
For consolidation purposes, the assets and liabilities of foreign operations are translated into Singapore dollars
at the rate of exchange ruling at the balance sheet date and their profit or loss are translated at the exchange
rates prevailing at the date of the transactions. The exchange differences arising on translation are taken
directly to a separate component of equity as translation reserve. On disposal of a foreign operation, the
cumulative amount recognised in translation reserve relating to that particular foreign operation is recognised
in the Statements of Total Return.
When associates that are foreign operations are partially disposed, the proportionate share of the accumulated
exchange differences is reclassified to the Statements of Total Return.
(d)
Investment properties
Investment properties are stated at initial cost on acquisition, including transaction costs, and at valuation
thereafter. Valuation is determined in accordance with the Trust Deed, which requires the investment properties
to be valued by independent registered valuers.
•
•
In such manner and frequency required under the CIS Code issued by the MAS; and
At least once in each period of 12 months following the acquisition of each parcel of real estate property.
Any increase or decrease on revaluation is credited or charged to the Statements of Total Return as a net
revaluation surplus or deficit in the value of the investment properties.
Subsequent expenditure relating to investment properties that have already been recognised is added to the
carrying amount of the asset when it is probable that future economic benefits, in excess of originally assessed
standard of performance of the existing asset, will flow to the Group and the Trust. All other subsequent
expenditure is recognised as an expense in the period in which it is incurred.
Investment properties are derecognised when either they have been disposed of or when the investment
property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any
gains or losses on the retirement or disposal of an investment property are recognised in the Statements of
Total Return in the year of retirement or disposal.
Investment properties are not depreciated. Investment properties are subject to continual maintenance and
regularly revalued on the basis set out above. For taxation purposes, the Group and the Trust may claim capital
allowances on assets that qualify as plant and machinery under the Singapore Income Tax Act.
137
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(e)
Basis of consolidation and investment in subsidiary
A subsidiary is an entity controlled by the Group. The Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through
its power over the entity. The financial statements of a subsidiary are included in the consolidated financial
statements from the date that control commences until the date that control ceases. All intra-group balances,
income and expenses and unrealised gains and losses resulting from intra-group transactions are eliminated
in full.
In the Trust’s balance sheet, investment in subsidiary is accounted for at cost less any impairment losses.
The consolidated financial statements incorporate the financial statements of the Trust and its subsidiary
as of the balance sheet date. The financial statements of the subsidiary used in the preparation of the
consolidated financial statements are prepared for the same reporting date and using consistent accounting
policies as the Trust.
Business combinations are accounted for by applying the acquisition method. Identifiable assets acquired and
liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.
Acquisition-related costs are recognised as expenses in the periods in which the costs are incurred and the
services are received.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic circumstances and pertinent
conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts
by the acquiree.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition
date. Subsequent changes to the fair value of the contingent consideration, if deemed to be an asset or liability
within the scope of FRS 39, will be recognised either in the Statements of Total Return. If the contingent
consideration is classified as equity, it is not remeasured until it is finally settled within equity.
In business combinations achieved in stages, previously held equity interests in the acquiree are remeasured
to fair value at the acquisition date and any corresponding gain or loss is recognised in the Statements of
Total Return.
The Group elects for each individual business combination whether non-controlling interest in the acquiree (if
any) is recognised on the acquisition date at fair value or at the non-controlling interest’s proportionate share
of the acquiree’s identifiable net assets.
Any excess of the sum of the fair value of the consideration transferred in the business combination, the
amount of non-controlling interest in the acquiree (if any), and the fair value of the Group’s previously held
equity interest in the acquiree (if any), over the net fair value of the acquiree’s identifiable assets and liabilities
is recorded as goodwill. In instances where the latter amount exceeds the former, the excess is recognised as
gain on bargain purchase in the Statements of Total Return on the acquisition date.
138
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(f)
Investment in associate and joint venture
An associate is an entity over which the Group has significant influence over the financial and operating policy
decisions of the investee but does not have control or joint control of those policies. Significant influence is
presumed to exist when the Group has 20% or more of the voting power of another entity.
A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to the net
assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
The Group account for its investments in associates and joint ventures using the equity method from the date
on which it becomes an associate or joint venture.
On acquisition of the investment, any excess of the cost of the investment over the Group’s share of the net fair
value of the investee’s identifiable assets and liabilities is accounted as goodwill and is included in the carrying
amount of the investment. Any excess of the Group’s share of the net fair value of the investee’s identifiable
assets and liabilities over the cost of the investment is included as income in the determination of the entity’s
share of the associate or joint venture’s profit or loss in the period in which the investment is acquired.
Under the equity method, the investment in associates or joint ventures are carried in the balance sheet at cost
plus post-acquisition changes in the Group’s share of net assets of the associates or joint ventures. The profit
or loss reflects the share of results of the operations of the associates or joint ventures. Distributions received
from joint ventures or associates reduce the carrying amount of the investment. Where there has been a
change recognised in other comprehensive income by the associates or joint venture, the Group recognises its
share of such changes in other comprehensive income. Unrealised gains and losses resulting from transactions
between the Group and associate or joint venture are eliminated to the extent of the interest in the associates
or joint ventures.
When the Group’s share of losses in an associate or joint venture equals or exceeds its interest in the associate or
joint venture, the Group does not recognise further losses, unless it has incurred obligations or made payments
on behalf of the associate or joint venture.
After application of the equity method, the Group determines whether it is necessary to recognise an additional
impairment loss on the Group’s investment in associate or joint ventures. The Group determines at the end
of each reporting period whether there is any objective evidence that the investment in the associate or joint
venture is impaired. If this is the case, the Group calculates the amount of impairment as the difference between
the recoverable amount of the associate or joint venture and its carrying value and recognises the amount in
the Statements of Total Return.
The financial statements of the associates and joint ventures are prepared as the same reporting date as
the Company. Where necessary, adjustments are made to bring the accounting policies in line with those
of the Group.
In the Trust’s separate financial statements, interests in joint ventures and associates are carried at cost less
impairment losses.
A list of the associates and joint ventures is shown in Notes 7 and 8, respectively.
139
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(g)
Fixed assets
Fixed assets are stated at cost less accumulated depreciation and any impairment. The cost of an asset comprises
its purchase price and any directly attributable costs of bringing the asset to working condition for its intended
use. The cost of a fixed asset is recognised as an asset if, and only if, it is probable that future economic
benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably.
Expenditure for additions, improvements and renewals are capitalised and expenditure for maintenance and
repair are charged to the Statements of Total Return. When assets are derecognised upon disposal or when no
future economic benefits are expected from their use or disposal, their cost and accumulated depreciation are
removed from the financial statements and any gain or loss on derecognition of the assets is included in the
Statements of Total Return.
Fixed assets are depreciated on the straight line method so as to write off the cost of the fixed assets over their
estimated useful lives. The principal annual rates of depreciation for equipment, furniture and fittings range
from 10% to 20%.
The carrying values of fixed assets are reviewed for impairment when events or changes in circumstances
indicate that the carrying value may not be recoverable.
The residual value, useful life and depreciation method are reviewed at each financial year-end, and adjusted
prospectively, if appropriate.
(h)
Intangible assets
Software is initially recognised at cost and subsequently carried at cost less accumulated amortisation.
Software is amortised over the estimated useful life and assessed for impairment whenever there is an indication
that the intangible asset may be impaired.
Changes in the expected useful life or the expected pattern of consumption of future economic benefits
embodies in the asset is accounted for by changing the amortisation period or method, as appropriate, and
are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite useful
lives is recognised in the Statements of Total Return in the expense category consistent with the function of
the intangible asset.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognised in the Statements of Total
Return when the asset is derecognised.
(i)
Financial assets
The Group determines the classification of its financial assets at initial recognition. When financial assets are
recognised initially, they are measured at fair value, plus, in the case of financial assets not at fair value through
profit or loss, directly attributable transaction costs.
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market
are classified as loans and receivables. Subsequent to initial recognition, loans and receivables are carried at
amortised cost using the effective interest method, less any impairment losses. Gains or losses are recognised
in the Statements of Total Return when the loans and receivables are derecognised or impaired, as well as
through the amortisation process.
140
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(i)
Financial assets (cont’d)
Financial assets at fair value through profit or loss include financial assets held for trading and financial
assets designated upon initial recognition at fair value through profit or loss. Financial assets classified as
held for trading include derivative financial instruments entered into by the Group that are not designated as
hedging instruments in hedge relationships as defined by FRS 39. Derivatives, including separated embedded
derivatives, are also classified as held for trading unless they are designated as effective hedging instruments.
Subsequent to initial recognition, financial assets at fair value through profit or loss are measured at fair value.
Any gains or losses arising from changes in fair value of the financial assets are recognised in the Statements
of Total Return.
Financial assets are recognised on the Balance Sheets when, and only when, the Group becomes a party to
the contractual provisions of the instruments. Financial assets are derecognised when the contractual rights to
receive cash flows from the assets have expired. On derecognition, the difference between the carrying amount
and the consideration received is recognised in the Statements of Total Return.
All regular way purchases and sales of financial assets are recognised or derecognised on the trade date (i.e.,
the date that the Group commits to purchase or sell the asset). Regular way purchases or sales are purchases
or sales of financial assets that require delivery of assets within the period generally established by regulation
or convention in the marketplace concerned.
(j)
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and bank deposits.
(k)
Financial liabilities
Financial liabilities are recognised on the Balance Sheets when, and only when, the Group becomes a party to
the contractual provisions of the financial instrument. The Group determines the classification of its financial
liabilities at initial recognition. Financial liabilities are initially recognised at the fair value of consideration
received, and in the case of financial liabilities other than those designated at fair value through profit or loss,
less directly attributable transaction costs.
Financial liabilities that are designated at fair value through profit or loss include financial liabilities held for
trading. Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the
near term. This category includes derivative financial instruments such as interest rate swaps entered into by
the Group to hedge its risks associated with interest rate fluctuations.
Subsequent to initial recognition, financial liabilities at fair value through profit or loss are measured at fair
value. Any gains or losses arising from changes in fair value of the financial liabilities are recognised in the
Statements of Total Return.
After initial recognition, financial liabilities that are not carried at fair value through profit or loss are subsequently
measured at amortised cost using the effective interest rate method. Gains and losses are recognised in the
Statements of Total Return when the liabilities are derecognised and through the amortisation process.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
has expired.
141
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(l)
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and the amount of the obligation can be estimated reliably.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate.
If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the
provision is reversed. If the effect of the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time is recognised as finance cost.
(m)
Impairment
(i)
Impairment of non-financial assets
The Group assesses at each reporting date whether there is any indication that an asset may be
impaired. If any such indication exists, or when annual impairment testing for an asset is required, the
Group makes an estimate of the asset’s recoverable amount.
An impairment loss is recognised in the Statements of Total Return whenever the carrying amount of an
asset or its cash-generating unit exceeds its recoverable amount.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair
value less costs to sell and is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or group of assets. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset.
Impairment losses recognised in prior periods are assessed at each reporting date for any indication
that the loss has decreased or no longer exists. If such indication exists, the recoverable amount is
estimated. An impairment loss is reversed only if there has been a change in the estimates used to
determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the
case, the carrying amount of the asset is increased to its recoverable amount. An impairment loss is
reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that
would have been determined, net of depreciation, had no impairment loss been recognised for the
asset in prior years. Reversal of an impairment loss is recognised in the Statements of Total Return.
After such a reversal, the depreciation charge, if any, is adjusted in future periods to allocate the asset’s
revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
142
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(m)
Impairment (cont’d)
(ii)
Impairment of financial assets
The Group assesses at each reporting date whether there is any objective evidence that a financial asset
is impaired.
For financial assets carried at amortised cost, the Group first assesses individually whether objective
evidence of impairment exists individually for financial assets that are individually significant, or
collectively for financial assets that are not individually significant. If the Group determines that no
objective evidence of impairment exists for an individually assessed financial asset, whether significant
or not, it includes the asset in a group of financial assets with similar credit risk characteristics and
collectively assesses them for impairment. Assets that are individually assessed for impairment and for
which an impairment loss is or continues to be recognised are not included in a collective assessment
of impairment.
If there is objective evidence that an impairment loss on financial assets carried at amortised cost has
been incurred, the amount of impairment loss is calculated as the difference between its carrying amount,
and the present value of estimated future cash flows discounted at the financial asset’s original effective
interest rate (i.e., the effective interest rate computed at initial recognition). The carrying amount of the
asset is reduced through the use of an allowance account. The amount of the loss and any subsequent
write-back is recognised in the Statements of Total Return.
When the asset becomes uncollectible, the carrying amount of impaired financial assets is reduced
directly or if an amount was charged to the allowance account, the amounts charged to the allowance
account are written off against the carrying value of the financial asset.
To determine whether there is objective evidence that an impairment loss on financial assets has incurred,
the Group considers factors such as the probability of insolvency or significant financial difficulties of the
debtor and default or significant delay in payments.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment loss was recognised, the previously
recognised impairment loss is reversed. Any subsequent reversal of an impairment loss is recognised
in the Statements of Total Return to the extent that the carrying value of the asset does not exceed its
amortised cost at the reversal date.
(n)
Security deposits and deferred income
Security deposits relate to rental deposits received from tenants at the Group’s investment properties. The
accounting policy for security deposits as a financial liability is set out in Note 2(k).
Deferred income relates to the difference between consideration received for security deposits and its fair
value at initial recognition, and is credited to the Statements of Total Return as gross rental income on a straight
line basis over individual lease term.
143
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(o)
Leases
The determination of whether an arrangement is or contains a lease is based on the substance of the
arrangement at inception date: whether fulfilment of the arrangement is dependent on the use of a specific
asset or assets or the arrangement conveys a right to use the asset even if that right is not explicitly specified
in an arrangement.
Leases where the Group retains substantially all the risks and rewards of ownership of the asset are classified
as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying
amount of the leased asset and recognised over the lease term on the same bases as rental income. The
accounting policy for rental income is set out in Note 2(p)(i).
(p)
Revenue recognition
Revenue is recognised to the extent it is probable that the economic benefits will flow to the Group and
the revenue can be reliably measured. Revenue is measured at the fair value of consideration received or
receivable, excluding discounts, rebates, and sales taxes or duty. The following specific recognition criteria
must also be met before revenue is recognised:
(i)
Rental income
Rental income receivable under operating leases is recognised in the Statements of Total Return on a
straight-line basis over the term of the lease, except where an alternative basis is more representative of
the pattern of benefits to be derived from the leased assets. Lease incentives granted are recognised as
an integral part of the total rental to be received. The aggregate cost of incentives provided to lessees
is recognised as a reduction of rental income over the lease term on a straight-line basis. Contingent
rent, which comprises gross turnover rental, is recognised as income in the period in which it is earned.
(ii)
Interest income
Interest income is recognised in the Statements of Total Return using the effective interest method.
(q)
Expenses
(i)
Property expenses
Property expenses are recognised on an accrual basis. Included in property expenses are property
management fees which are based on the applicable formula stipulated in Note 1(a).
(ii)
Asset management fees
Asset management fees are recognised on an accrual basis based on the applicable formula stipulated
in Note 1(b).
(iii)
Trust expenses
Trust expenses are recognised on an accrual basis. Included in trust expenses are Trustee’s fees which
are based on the applicable formula stipulated in Note 1(c).
144
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(r)
Taxation
(i)
Current income tax
Current income tax is the expected tax payable on the taxable income for the period, using tax rates
and tax laws enacted or substantively enacted at the balance sheet date.
(ii)
Deferred tax
Deferred tax is provided using the liability method on temporary differences at the balance sheet date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax is not recognised for temporary differences that:
–
–
Arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not
a business combination and, at the time of the transaction, affects neither the accounting profit
nor taxable profit or loss; and
Are associated with investments in subsidiaries and associates, where the timing of the reversal
of the temporary differences can be controlled and it is probable that the temporary differences
will not reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the assets are realised or the liabilities are settled, based on tax rates and tax laws that have been
enacted or substantively enacted at the balance sheet date.
(iii)
Tax transparency
The Inland Revenue Authority of Singapore (“IRAS”) has issued a tax ruling on the income tax treatment
of the Trust. Subject to meeting the terms and conditions of the tax ruling which includes a distribution
of at least 90% of the taxable income of the Trust, the Trustee will not be assessed to tax on the taxable
income of the Trust. Instead, the distributions made by the Trust out of such taxable income are subject
to tax in the hands of Unitholders, unless they are exempt from tax on the Trust’s distributions (the “tax
transparency ruling”). Accordingly, the Trustee and the Manager will deduct income tax at the prevailing
corporate tax rate from the distributions made to Unitholders that are made out of the taxable income
of the Trust, except:
–
–
Where the beneficial owners are individuals or Qualifying Unitholders, the Trustee and the
Manager will make the distributions to such Unitholders without deducting any income tax; and
Where the beneficial owners are foreign non-individual investors or where the Units are held by
nominee Unitholders who can demonstrate that the Units are held for beneficial owners who
are foreign non-individual investors, the Trustee and the Manager will deduct/withhold tax at a
reduced rate of 10% from the distributions.
145
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(r)
Taxation (cont’d)
(iii)
Tax transparency (cont’d)
A Qualifying Unitholder is a Unitholder who is:
(i)
A tax resident Singapore-incorporated company;
(ii)
(iii)
(iv)
A non-corporate Singapore constituted or registered entity (e.g. town council, statutory board,
charitable organisation, management corporation, club and trade and industry association
constituted, incorporated, registered or organised in Singapore);
An agent bank or a Supplementary Retirement Scheme (“SRS”) operator acting as nominee for
individuals who have purchased Units in the Trust within the CPFIS or the SRS respectively; or
A nominee who can demonstrate that the Units are held for beneficial owners who are individuals
or who fall within the classes of Unitholders listed in (i) to (ii) above.
The above tax transparency ruling does not apply to gains from the sale of real properties. Such
gains, when determined by the IRAS to be trading gains, are assessable to tax on the Trustee.
Where the gains are capital gains, the Trustee will not be assessed to tax and may distribute the
capital gains without tax being deducted at source.
(iv)
Sales tax
Revenue, expenses and assets are recognised net of the amount of sales tax except:
–
Where the sales tax incurred on a purchase of assets or services is not recoverable from the
taxation authority, in which case the sales tax is recognised as part of the cost of acquisition of
the asset or as part of the expense item as applicable; and
–
Receivables and payables that are stated with the amount of sales tax included.
The net amount of sales tax recoverable from, or payable to, the IRAS is included as part of receivables
or payables on the Balance Sheets.
(s)
Borrowing costs
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying
asset are recognised in the Statements of Total Return using the effective interest method.
(t)
Segment reporting
For management purposes, the Group is organised into operating segments based on individual investment
property within the Group’s portfolio. The Manager regularly reviews the segment results in order to allocate
resources to the segments and to assess the segments’ performance. Additional disclosures on each of these
segments are shown in Note 26, including the factors used to identify the reportable segments and the
measurement basis of segment information.
146
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(u)
Units and unit issuance expenses
Proceeds from issuance of Units are recognised as Unithholders’ funds. Incremental costs directly attributable
to the issuance of Units are deducted against Unitholders’ funds.
(v)
Contingencies
A contingent liability is:
–
A possible obligation that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Group or the Trust; or
–
A present obligation that arises from past events but is not recognised because:
(i)
It is not probable that an outflow of resources embodying economic benefits will be required to
settle the obligation; or
(ii)
The amount of the obligation cannot be measured with sufficient reliability.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Group or the Trust.
Contingent liabilities and assets are not recognised on the Balance Sheets, except for contingent liabilities assumed
in a business combination that are present obligations and which the fair values can be reliably determined.
3.
INVESTMENT PROPERTIES
At beginning
Capital expenditure
Surplus on revaluation taken to Statements of Total Return
At end
Group and Trust
2016
$’000
2015
$’000
2,464,000
16,056
2,480,056
2,400,000
441
2,400,441
28,944
2,509,000
63,559
2,464,000
The investment properties owned by the Group and the Trust are set out in the Portfolio Statements on pages
129 to 131.
Bedok Point has been mortgaged as security for a $70 million secured five-year term loan from DBS Bank Ltd
(Note 13).
Anchorpoint has been mortgaged as security for a $80 million secured five-year term loan from DBS Bank Ltd
(Note 13).
YewTee Point has been mortgaged as security for a $136 million secured five-year term loan from Oversea-Chinese
Banking Corporation Limited and DBS Bank Ltd (Note 13).
147
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 3.
INVESTMENT PROPERTIES (CONT’D)
Valuation processes
Investment properties are stated at fair value based on valuations performed by external independent valuers
who possess appropriate recognised professional qualifications and relevant experience in the location and
property being valued. In accordance with the CIS code, the Group rotates the independent valuers every
two years.
In determining the fair value, the valuers have used valuation methods which involve certain estimates. The
key assumptions used to determine the fair value of investment properties include market-corroborated
capitalisation yields, discount rates and terminal yields. The Manager reviews the appropriateness of the
valuation methodologies, assumptions and estimates adopted and is of the view that they are reflective of the
market conditions as at 30 September 2016.
Fair value hierarchy
•
•
•
Level 1:
quoted prices (unadjusted) in active markets for identical assets or liabilities that the
Group can access at the measurement date;
Level 2:
inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
Level 3:
inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
Fair value measurements that use inputs of different hierarchy levels are categorised in its entirety in the same
level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
At 30 September 2016
Non-financial assets
Investment properties
At 30 September 2015
Non-financial assets
Investment properties
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
–
–
–
2,509,000
2,509,000
–
2,464,000
2,464,000
148
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 3.
INVESTMENT PROPERTIES (CONT’D)
Level 3 fair value measurements
The following table shows the information about fair value measurements using significant unobservable inputs
(Level 3):
Fair value at
30 September 2016
Description
$’000
Valuation
techniques
Key
unobservable
inputs
Range of
unobservable
inputs
Investment
properties
2,509,000
Capitalisation
approach
Capitalisation
rate
5.25% – 5.75%
Discounted
cash flow
analysis
Discount
rate
7.50% – 8.00%
Terminal
yield
5.50% – 6.00%
Relationship of
unobservable
inputs to
fair value
The higher
the rate,
the lower
the fair value.
The higher
the rate,
the lower
the fairvalue.
The higher
the rate,
the lower
the fair value.
Direct
comparison
method
Transacted
prices
–
The higher
the comparable
value,
the higher
the fair value.
A significant reduction in the capitalisation rate and/or discount rate in isolation would result in a significantly
higher fair value of the investment properties.
The key unobservable inputs correspond to:
•
•
•
Discount rate, based on the risk-free rate for 10-year bonds issued by the government in Singapore,
adjusted for a risk premium to reflect the increased risk of investing in the asset class;
Terminal yield reflects the uncertainty, functional/economic obsolescence and the risk associated with
the investment properties; and
Capitalisation rate which corresponds to a rate of return on investment properties based on the expected
income that the property will generate.
149
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 3.
INVESTMENT PROPERTIES (CONT’D)
Level 3 fair value measurements (cont’d)
The net change in fair value of the properties recognised in the Statements of Total Return has been adjusted
for amortisation of lease incentives as follows:
Surplus on revaluation
Amortisation of lease incentives
Surplus on revaluation recognised in Statements of Total Return
Group and Trust
2016
$’000
2015
$’000
28,944
(537)
28,407
63,559
480
64,039
Direct operating expenses (including repairs and maintenance) arising from rental generating properties are
disclosed on Note 18 to the financial statements.
The Group has no restrictions on the realisability of its investment properties and no contractual obligations to
purchase, construct or develop investment property or for repairs, maintenance or enhancements other than
as disclosed in Note 27.
4.
FIXED ASSETS
Cost
At beginning
Additions
Disposals
At end
Accumulated depreciation
At beginning
Charge for the year
Disposals
At end
Carrying amount
At beginning
At end
150
Equipment,
furniture and fittings
Group and Trust
2016
$’000
2015
$’000
360
23
(26)
357
255
41
(25)
271
105
86
324
38
(2)
360
211
46
(2)
255
113
105
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 5.
INTANGIBLE ASSETS
Cost
At beginning
Additions
At end
Accumulated amortisation
At beginning
Charge for the year
At end
Carrying amount
At beginning
At end
6.
INVESTMENT IN SUBSIDIARY
Unquoted equity investment, at cost
* Denotes amount less than $500.
Details of the subsidiary are as follows:
Name of subsidiary
Place of incorporation / business
FCT MTN Pte. Ltd. (1)
Singapore
(1) Audited by KPMG LLP, Singapore
Software
Group and Trust
2016
$’000
2015
$’000
90
–
90
24
18
42
66
48
90
–
90
6
18
24
84
66
Trust
2016
$’000
2015
$’000
*
*
Effective equity
interest held by
the Trust
2016
%
100
2015
%
100
FCT MTN Pte. Ltd. (“FCT MTN”) is a wholly-owned subsidiary with share capital of $2 comprising 2 ordinary
shares. The principal activity of the subsidiary is the provision of treasury services, including lending to the Trust
the proceeds from issuance of notes under an unsecured multicurrency medium term note programme.
151
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 7.
INVESTMENT IN ASSOCIATE
Quoted units, at cost
Share of post-acquisition reserves
– operations
– revaluation surplus
Translation difference
Allowance for impairment
Fair value of investment based on
published price quotation
Details of the associate are as follows:
Group
Trust
2016
$’000
2015
$’000
2016
$’000
2015
$’000
67,806
67,806
67,806
67,806
3,598
14,004
(19,049)
66,359
(6,759)
59,600
3,844
18,099
(20,167)
69,582
(6,759)
62,823
–
–
–
67,806
(3,963)
63,843
–
–
–
67,806
(3,963)
63,843
64,511
60,914
64,511
60,914
Name of associate
Place of incorporation / business
Hektar Real Estate Investment Trust (1) Malaysia
(1) Audited by SJ Grant Thornton, Malaysia
Effective equity
interest held by the
Group and Trust
2016
%
2015
%
31.17
31.17
Hektar Real Estate Investment Trust (“H-REIT”) is a real estate investment trust constituted in Malaysia by a trust
deed dated 5 October 2006. H-REIT units are listed on the Main Board of Bursa Malaysia Securities Berhad.
The principal investment objective of H-REIT is to invest in income-producing real estate in Malaysia used
primarily for retail purposes.
As the results of H-REIT are not expected to be announced in sufficient time to be included in the Group’s
results for the quarter ended 30 September 2016, the Group has estimated the results of H-REIT for the quarter
ended 30 September 2016 based on its results for the preceding quarter, adjusted for significant transactions
and events occurring up to the reporting date of the Group, if any.
The result for H-REIT was equity accounted for at the Group level, net of 10% (2015: 10%) withholding tax
in Malaysia.
152
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 7.
INVESTMENT IN ASSOCIATE (CONT’D)
The following summarised financial information relating to the associate has not been adjusted for the
percentage of ownership interest held by the Group:
Assets and liabilities
Non-current assets
Current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Results
Revenue
Expenses
Revaluation surplus
Total return for year
2016 (2)
$’000
2015 (3)
$’000
364,872
12,651
377,523
12,661
169,186
181,847
395,216
10,628
405,844
11,815
172,096
183,911
42,340
(27,982)
(13,374)
984
44,308
(28,188)
2,181
18,301
(2) The financial information is based on the latest available unaudited management accounts as at 30 June 2016 and for the six months
ended 30 June 2016 and the pro-rated six month results from the audited financial statements for the period ended 31 December 2015.
(3) The financial information is based on the unaudited management accounts as at 30 June 2015 and for the six months ended 30 June 2015
and the pro-rated six month results from the audited financial statements for the period ended 31 December 2014.
As at 30 September 2016 and 2015, the associate’s property portfolio comprises Subang Parade in Selangor,
Mahkota Parade in Melaka, Wetex Parade in Muar, Johor, Central Square and Landmark Central in Kedah.
8.
INVESTMENT IN JOINT VENTURE
Unquoted equity investment, at cost
Share of post-acquisition reserves
– operations
Details of the joint venture are as follows:
Group
Trust
2016
$’000
2015
$’000
2016
$’000
2015
$’000
1
234
235
1
153
154
1
–
1
1
–
1
Name of joint venture
Place of incorporation / business
Changi City Carpark Operations LLP Singapore
Effective equity
interest held by the
Group and Trust
2016
%
2015
%
43.68
43.68
The Group has 43.68% interest in the ownership and voting rights in a joint venture, Changi City Carpark
Operations LLP. This joint venture is incorporated in Singapore and is a strategic venture in the management
and operation of car park in Changi City Point. The Group jointly controls the venture with other partner under
the contractual agreement and requires unanimous consent for all major decisions over the relevant activities.
153
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 9.
TRADE AND OTHER RECEIVABLES
Trade receivables
Allowance for doubtful receivables
Net trade receivables
Deposits
Prepayments
Amount due from joint venture
Loan arrangement fees
Fair value of interest rate swaps
Group and Trust
2016
$’000
2015
$’000
3,963
(62)
3,901
443
166
87
2,203
–
6,800
2,020
(61)
1,959
70
532
87
1,396
1,357
5,401
Trade receivables are recognised at their original invoiced amounts which represent their fair values on initial
recognition.
(i)
Trade receivables that are past due but not impaired
The Group and the Trust have trade receivables amounting to $3,901,000 (2015: $1,959,000) that are
past due at the balance sheet date but not impaired. The aging of receivables at the balance sheet date
is as follows:
Trade receivables past due but not impaired:
Less than 30 days
30 to 60 days
61 to 90 days
91 to 120 days
More than 120 days
(ii)
Trade receivables that are impaired
Group and Trust
2016
$’000
2015
$’000
2,776
539
76
205
305
3,901
1,624
169
76
41
49
1,959
The Group’s and the Trust’s trade receivables that are impaired at the balance sheet date and the
movements of the allowance account used to record the impairment are as follows:
Trade receivables
Allowance for impairment
154
Group and Trust
2016
$’000
2015
$’000
62
(62)
–
61
(61)
–
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 9.
TRADE AND OTHER RECEIVABLES (CONT’D)
Movement in allowance account:
At beginning
Impairment loss recognised
Written back
Allowance utilised
At end
Group and Trust
2016
$’000
2015
$’000
61
38
(36)
(1)
62
69
8
(7)
(9)
61
Trade receivables that are individually determined to be impaired at the balance sheet date relate to debtors
that are in significant difficulties and have defaulted on payments. The allowance for impairment recorded in
relation to these receivables represents the amount in excess of the security deposits held as collateral.
Based on the Group’s historical experience of the collection of trade receivables, the Manager believes that
there is no additional credit risk beyond those which have been provided for.
10. CASH AND CASH EQUIVALENTS
For purpose of the consolidated cash flow statement, cash and cash equivalents comprise the following at the
balance sheet date:
Cash at bank and on hand
Group and Trust
2016
$’000
2015
$’000
18,708
16,197
155
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 11.
TRADE AND OTHER PAYABLES
Trade payables and accrued operating expenses
Amounts due to related parties (trade)
Deposits and advances
Interest payable
Other payables
Withholding tax
Fair value of interest rate swaps
Group
Trust
2016
$’000
26,567
9,005
180
2,571
36
1,000
601
39,960
2015
$’000
16,694
6,486
4,365
3,196
29
981
62
31,813
2016
$’000
26,585
9,005
180
2,571
36
1,000
601
39,978
2015
$’000
16,712
6,486
4,365
3,196
29
981
62
31,831
Included in trade payables and accrued operating expenses is an amount due to the Trustee of $67,487
(2015: $66,441).
Included in amounts due to related parties are amounts due to the Manager of $3,788,620 (2015: $3,759,333)
and the Property Manager of $5,205,879 (2015: $2,568,740) respectively. The amounts due to related parties
are unsecured, interest free and payable within the next 3 months.
The Trust entered into contracts to exchange, at specified intervals, the difference between floating rate and
fixed rate interest amounts calculated by reference to agreed notional amounts. As at balance sheet date, the
Trust has interest rate swaps for:
(i)
notional contract amount of $70 million that matures in December 2016; and
(ii)
notional contract amount of $90 million that matures in June 2017.
The fair value of the interest rate swaps is determined using valuation technique as disclosed in Note 24(b). The
Group does not apply hedge accounting.
156
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 12. DEFERRED INCOME
Cost
At beginning
Additions
Fully amortised
At end
Accumulated amortisation
At beginning
Charge for the year
Fully amortised
At end
Net deferred income
This comprises:
Current portion
Non-current portion
Group and Trust
2016
$’000
2015
$’000
2,888
–
(910)
1,978
1,580
732
(910)
1,402
3,147
880
(1,139)
2,888
1,744
975
(1,139)
1,580
576
1,308
427
149
576
732
576
1,308
157
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 13.
INTEREST-BEARING BORROWINGS
Non-current liabilities
Term loan (secured)
Term loan (unsecured)
Loan from subsidiary (unsecured)
Medium Term Notes (unsecured)
Current liabilities
Term loan (secured)
Term loan (unsecured)
Medium Term Notes (unsecured)
Loan from subsidiary (unsecured)
Short term loans (unsecured)
(a)
Term loans (secured)
Group
Trust
2016
$’000
2015
$’000
2016
$’000
2015
$’000
216,000
60,000
–
240,000
516,000
70,000
90,000
30,000
–
28,000
218,000
70,000
150,000
–
220,000
440,000
264,000
–
–
–
14,000
278,000
216,000
60,000
240,000
–
516,000
70,000
90,000
–
30,000
28,000
218,000
70,000
150,000
220,000
–
440,000
264,000
–
–
–
14,000
278,000
(i)
The Trust obtained a $264 million 5-year secured term loan under a facility agreement dated
29 November 2010 between (i) the Trustee, as borrower and (ii) DBS Bank Ltd, Oversea-Chinese Banking
Corporation Limited and Standard Chartered Bank, as lenders (the “$264 million Secured Term Loan“).
The secured term loan bears interest at the swap-offer rate plus a margin.
The $264 million Secured Term Loan is principally secured by the following:
•
•
•
•
a mortgage over Northpoint;
an assignment of the rights, benefits, title and interest of the Trust in, under and arising out of the
insurances effected in respect of Northpoint;
an assignment and charge of the rights, benefits, title and interest of the Trust in, under and
arising out of the tenancy agreements, the sale agreements, the performance guarantees
(including sale proceeds and rental proceeds) and the bank accounts arising from, relating to or
in connection with Northpoint; and
a first fixed and floating charge over all present and future assets of the Trust in connection with
Northpoint.
The $264 million Secured Term Loan had been fully repaid upon its maturity on 4 July 2016. Its mortgage
had been discharged upon maturity.
158
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 13.
INTEREST-BEARING BORROWINGS (CONT’D)
(a)
Term loans (secured) (cont’d)
(ii)
In December 2011, the Trust entered into a facility agreement with DBS Bank Ltd for a secured five-year
term loan of $70 million (the “$70 million Secured Term Loan”).
The $70 million Secured Term Loan is principally secured by the following:
•
•
•
•
a mortgage over Bedok Point;
an assignment of the rights, benefits, title and interest of the Trust in, under and arising out of the
insurances effected in respect of Bedok Point;
an assignment and charge of the rights, benefits, title and interest of the Trust in, under and
arising out of the tenancy agreements, the sale agreements, the performance guarantees
(including sale proceeds and rental proceeds) and the bank accounts arising from, relating to or
in connection with Bedok Point; and
a first fixed and floating charge over all present and future assets of the Trust in connection
with Bedok Point.
(iii)
In March 2016, the Trust entered into a facility agreement with DBS Bank Ltd for a secured five-year term
loan of $80 million (the “$80 million Secured Term Loan”).
The $80 million Secured Term Loan is principally secured by the following:
•
•
•
a mortgage over Anchorpoint;
an assignment of the rights, benefits, title and interest of the Trust in, under and arising out of the
insurances effected in respect of Anchorpoint; and
an assignment and charge of the rights, benefits, title and interest of the Trust in, under and
arising out of the tenancy agreements, the sale agreements, the performance guarantees
(including sale proceeds and rental proceeds) and the bank accounts arising from, relating to or
in connection with Anchorpoint.
(iv)
In June 2016, the Trust entered into a facility agreement with Oversea-Chinese Banking Corporation
Limited and DBS Bank Ltd for a secured five-year term loan of $136 million (the “$136 million Secured
Term Loan”).
The $136 million Secured Term Loan is principally secured by the following:
•
•
•
a mortgage over YewTee Point;
an assignment of the rights, benefits, title and interest of the Trust in, under and arising out of the
insurances effected in respect of YewTee Point; and
an assignment and charge of the rights, benefits, title and interest of the Trust in, under and
arising out of the tenancy agreements, the sale agreements, the performance guarantees
(including sale proceeds and rental proceeds) and the bank accounts arising from, relating to or
in connection with YewTee Point.
159
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 13.
INTEREST-BEARING BORROWINGS (CONT’D)
(b)
Term loan (unsecured)
On 9 June 2014, the Trust entered into a facility agreement with DBS Bank Ltd and Citibank N.A., Singapore
branch for an unsecured term loan of $150 million. The unsecured term loan, which has 2 repayment dates in
June 2017 and June 2019, bears interest at swap-offer rate plus respective margins.
(c) Medium Term Notes (unsecured)
On 7 May 2009, the Group through its subsidiary, FCT MTN, established a $500,000,000 Multicurrency Medium
Term Note Programme (“FCT MTN Programme”). With effect from 14 August 2013, the maximum aggregate
principal amount of notes that may be issued under the FCT MTN Programme is increased from $500,000,000
to $1,000,000,000. Under the FCT MTN Programme, FCT MTN may, subject to compliance with all relevant
laws, regulations and directives, from time to time issue notes (the “Notes”) in Singapore dollars or any other
currency. The Notes may be issued in various amounts and tenors, and may bear interest at fixed, floating,
hybrid or variable rates of interest. Hybrid notes or zero coupon notes may also be issued under the FCT MTN
Programme.
The Notes shall constitute direct, unconditional, unsubordinated and unsecured obligations of FCT MTN
ranking pari passu, without any preference or priority among themselves, and pari passu with all other present
and future unsecured obligations (other than subordinated obligations and priorities created by law) of FCT
MTN. All sums payable in respect of the Notes are unconditionally and irrevocably guaranteed by the Trustee.
As at 30 September 2016, the aggregate balance of the Notes issued by the Group under the FCT MTN
Programme amounted to $270 million (2015: $220 million), consisting of:
(i)
(ii)
(iii)
(iv)
(v)
$30 million (2015: $30 million) Fixed Rate Notes which mature on 12 June 2017 and bear a fixed interest
rate of 2.850% per annum payable semi-annually in arrear;
$70 million (2015: $70 million) Fixed Rate Notes which mature on 21 January 2020 and bear a fixed
interest rate of 3.000% per annum payable semi-annually in arrear;
$60 million (2015: $60 million) Fixed Rate Notes which mature on 12 December 2017 and bear a fixed
interest rate of 2.535% per annum payable semi-annually in arrear;
$60 million (2015: $60 million) Fixed Rate Notes which mature on 10 April 2019 and bear a fixed interest
rate of 2.900% per annum payable semi-annually in arrear; and
$50 million (2015: $Nil) Fixed Rate Notes which mature on 21 June 2021 and bear a fixed interest rate
of 2.760% per annum payable semi-annually in arrear.
(d)
Short term loans (unsecured)
The Trust has obtained unsecured credit facilities totalling $90 million (2015: $50 million). As at 30 September 2016,
total borrowings drawn down by the Trust on these facilities amounted to $28 million (2015: $14 million).
160
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 14.
TRANSLATION RESERVE
The translation reserve represents exchange differences arising from the translation of the financial statements
of foreign operations whose functional currency is different from that of the Group’s presentation currency.
At beginning
Net effect of exchange (gain)/loss arising from translation
of financial statements of foreign operations
At end
15. UNITS IN ISSUE
Group
2016
$’000
2015
$’000
20,167
7,449
(1,118)
19,049
12,718
20,167
Group and Trust
2016
2015
No. of Units No. of Units
’000
’000
Units in issue
At beginning
Issue of Units
– issued as satisfaction of asset management fees
At end
Units to be issued
– as asset management fees payable in Units
Total issued and issuable Units at end
916,840
915,415
2,529
919,369
1,425
916,840
829
920,198
371
917,211
Each Unit represents an undivided interest in the Trust. The rights and interests of Unitholders are contained in
the Trust Deed and include the rights to:
•
•
•
Receive income and other distributions attributable to the Units held;
Participate in the termination of the Trust by receiving a share of all net cash proceeds derived from the
realisation of the assets of the Trust less any liabilities, in accordance with their proportionate interests in
the Trust. However, a Unitholder has no equitable or proprietary interest in the underlying assets of the
Trust and is not entitled to the transfer to it of any assets (or part thereof) or of any estate or interest in
any assets (or part thereof) of the Trust;
Attend all Unitholders’ meetings. The Trustee or the Manager may (and the Manager shall at the request
in writing of not less than 50 Unitholders or one-tenth number of the Unitholders, whichever is lesser) at
any time convene a meeting of Unitholders in accordance with the provisions of the Trust Deed; and
•
One vote per Unit.
161
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 15. UNITS IN ISSUE (CONT’D)
The restrictions of a Unitholder include the following:
•
•
•
A Unitholder’s right is limited to the right to require due administration of the Trust in accordance with
the provisions of the Trust Deed; and
A Unitholder has no right to request the Manager to redeem his Units while the Units are listed on
SGX-ST.
A Unitholder’s liability is limited to the amount paid or payable for any Units in the Trust. The provisions
of the Trust Deed provide that no Unitholders will be personally liable to indemnify the Trustee or any
creditor of the Trustee in the event that liabilities of the Trust exceed its assets.
16. NET ASSET VALUE PER UNIT
Group
Trust
2016
$’000
2015
$’000
2016
$’000
2015
$’000
Net asset value per Unit is based on:
Net assets
1,775,645
1,754,544
1,779,636
1,755,393
Total issued and issuable Units (Note 15)
920,198
917,211
920,198
917,211
’000
’000
’000
’000
17. GROSS REVENUE
Gross rental income
Turnover rental income
Carpark income
Others
162
Group and Trust
2015
2016
$’000
$’000
162,969
9,141
4,484
7,222
183,816
167,914
9,288
4,738
7,302
189,242
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 18.
PROPERTY EXPENSES
Property tax
Utilities
Maintenance
Property management fees
Marketing expenses
Allowance for doubtful receivables
Write back of allowance for doubtful receivables
Depreciation of fixed assets
Amortisation of intangible assets
Staff costs (1)
Carpark expenses
Others
(1) Relates to reimbursement of staff costs paid/payable to the Property Manager.
The Group and the Trust do not have any employees.
19.
BORROWING COSTS
Interest expense
Amortisation of loan arrangement fees
20. ASSET MANAGEMENT FEES
Group and Trust
2016
$’000
2015
$’000
15,707
2,447
15,923
7,100
6,697
38
(36)
41
18
4,134
1,236
659
53,964
15,700
5,779
16,020
7,242
6,865
8
(7)
46
18
3,886
1,973
669
58,199
Group and Trust
2016
$’000
2015
$’000
16,299
888
17,187
18,447
889
19,336
Asset management fees comprise $7,716,381 (2015: $7,545,053) of base fee and $6,492,582 (2015: $6,552,138)
of performance fee computed in accordance with the fee structure as disclosed in Note 1(b) to the financial
statements.
An aggregate of 2,986,994 (2015: 1,432,104) Units were issued or are issuable to the Manager as satisfaction
of the asset management fees payable for the financial year ended 30 September 2016.
163
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 21.
TAXATION
Reconciliation of effective tax
Net income
Income tax using Singapore
tax rate of 17% (2015: 17%)
Non-tax deductible items
Income not subject to tax
Income exempt from tax
22.
EARNINGS PER UNIT
Group
Trust
2016
$’000
2015
$’000
2016
$’000
2015
$’000
96,813
96,205
96,811
96,202
16,458
1,174
667
(18,299)
–
16,355
954
721
(18,030)
–
16,458
1,174
667
(18,299)
–
16,354
955
721
(18,030)
–
The calculation of basic earnings per Unit is based on the weighted average number of Units during the year
and total return for the year.
Group
Trust
2016
$’000
2015
$’000
2016
$’000
2015
$’000
Total return for year after tax
123,446
171,464
127,706
170,278
Weighted average number of Units in issue
918,181
916,318
918,181
916,318
Diluted earnings per Unit is the same as basic earnings per Unit as there is no dilutive instrument in issue during
the year.
’000
’000
’000
’000
164
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 23.
SIGNIFICANT RELATED PARTY TRANSACTIONS
During the financial year, other than the transactions disclosed in the financial statements, the following related
party transactions were carried out in the normal course of business on arm’s length commercial terms:
Property management fees and reimbursement of expenses paid/payable
to the Property Manager (1)
Reimbursement of expenses paid/payable to the Manager
Reimbursement of expenses paid/payable to a subsidiary of a Unitholder
Recovery of expenses paid on behalf of a subsidiary of a Unitholder
Recovery of net income receivable from related companies of the Manager
Income from related company of the Manager
Car park expenses paid/payable to the Joint Venture
(1)
In accordance with service agreements in relation to management of the Trust and its property operations.
Group and Trust
2016
$’000
2015
$’000
17,933
43
33
(14)
(8)
(3)
32
17,634
41
8
(27)
(27)
(23)
28
24.
FAIR VALUE OF ASSETS AND LIABILITIES
(a)
Assets and liabilities measured at fair value
At 30 September 2016
Financial liabilities
Interest rate swaps
At 30 September 2015
Financial assets
Interest rate swaps
At 30 September 2015
Financial liabilities
Interest rate swaps
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
–
–
–
601
1,357
62
–
–
–
601
1,357
62
During the financial years ended 30 September 2016 and 2015, there have been no transfers between the
respective levels.
(b)
Level 2 fair value measurements
Interest rate swap contracts are valued using present value calculations by applying market observable inputs
existing at each balance sheet date into swap models. The models incorporate various inputs including the
credit quality of counterparties and interest rate curves.
165
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 24.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
(c)
Fair value of financial liabilities that are not carried at fair value and whose carrying amounts are not
reasonable approximation of fair values
The following fair values, which are determined for disclosure purposes, are estimated by discounting expected
future cash flows at market incremental lending rates for similar types of lending or borrowing arrangements
at the balance sheet date:
Group and Trust
Financial liabilities
Interest-bearing borrowings
(non-current)
Security deposits (non-current)
2016
$’000
2015
$’000
Carrying
amount
Fair value
Carrying
amount
Fair value
516,000
23,883
539,883
521,788
23,131
544,919
440,000
25,957
465,957
439,080
25,377
464,457
(d)
Fair value of financial assets and liabilities that are not carried at fair value and whose carrying amounts
are reasonable approximation of fair values
The carrying amounts of financial assets and liabilities with maturity of less than one year (including trade and
other receivables, cash and cash equivalents, and trade and other payables) are reasonable approximation of
fair values, either due to their short-term nature or that they are floating rate instruments that are re-priced to
market interest rates on or near the balance sheet date.
25.
FINANCIAL RISK MANAGEMENT
(a)
Capital risk management
The primary objective of the Group’s capital management is to ensure that it maintains a strong and healthy
capital structure in order to support its business and maximise Unitholder value.
The Group is subject to the aggregate leverage limit as defined in the Property Fund Guidelines of the CIS
Code. The CIS Code stipulates that borrowings and deferred payments (together the “Aggregate Leverage”)
of a property fund should not exceed 35.0% of the fund’s depository property. The Aggregate Leverage of
a property fund may exceed 35.0% of its depository property (up to a maximum of 60.0%) only if a credit
rating from Fitch Inc., Moody’s or Standard and Poor’s is obtained and disclosed to the public. With effect
from 1 January 2016, the aggregate leverage of a property fund shall not exceed 45%.
As at 30 September 2016, the Group’s Aggregate Leverage stood at 28.3% (2015: 28.2%) of its depository
property, which is within the limit set by the Property Fund Guidelines and externally imposed capital
requirements. The Trust has maintained its corporate ratings of “BBB+” from Standard and Poor’s and “Baa1”
from Moody’s.
166
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 25.
FINANCIAL RISK MANAGEMENT (CONT’D)
(b)
Financial risk management objectives and policies
Exposure to credit, interest rate and liquidity risks arises in the normal course of the Group’s business. The
Manager continually monitors the Group’s exposure to the above risks. There has been no change to the
Group’s exposure to these financial risks or the manner in which it manages and measures risks.
(i)
Credit risk
Credit risk is the potential financial loss resulting from the failure of a customer or counterparty to settle
its financial and contractual obligations to the Group as and when they fall due.
The Group’s objective is to seek continual revenue growth while minimising losses incurred due to
increased credit risk exposure. The Manager has established credit limits for tenants and monitors
their balances on an ongoing basis. Credit evaluations are performed by the Manager before lease
agreements are entered into with tenants. Credit risk is also mitigated by the rental deposits held for
each of the tenants. In addition, receivables are monitored on an ongoing basis with the result that the
Group’s exposure to bad debts is not significant.
The Manager has established an allowance account for impairment that represents its estimate of losses
in respect of trade receivables due from specific customers. Subsequently when the Group is satisfied
that no recovery of such losses is possible, the financial asset is considered irrecoverable and the amount
charged to the allowance account is written off against the carrying amount of the impaired financial asset.
The maximum exposure to credit risk is represented by the carrying value of each financial asset on
the Balance Sheets. At the balance sheet date, approximately 14.0% (2015: 6.5%) of the Group’s trade
receivables were due from 5 tenants who are reputable companies located in Singapore.
Trade and other receivables that are neither past due nor impaired represent creditworthy debtors with
good payment record with the Group. Cash and fixed deposits are placed with a local bank regulated
by the MAS.
Information regarding financial assets that are either past due or impaired is disclosed in Note 9.
(ii)
Interest rate risk
The Group’s exposure to changes in interest rates relates primarily to its interest-earning financial assets
and interest-bearing financial liabilities. Interest rate risk is managed by the Manager on an ongoing
basis with the primary objective of limiting the extent to which net interest expense could be affected
by adverse movements in interest rates. The Manager adopts a policy of fixing the interest rates for a
portion of its outstanding borrowings using financial derivatives or other suitable financial products.
Sensitivity analysis for interest rate risk
It is estimated that twenty five (2015: a hundred) basis points increase or decrease in interest rate at the
balance sheet date, with all other variables held constant, would decrease or increase the Group’s total
return for the year and Unitholders’ funds by approximately $451,000 (2015: $3,014,000), arising mainly
as a result of change in the fair value of interest rate swap instruments. On outstanding borrowings not
covered by financial derivatives at the balance sheet date, it is estimated that a twenty five basis points
increase in interest rate, with all other variables held constant, would decrease the Group’s total return
for the year and Unitholders’ funds by approximately $690,000 (2015: $448,000) and a twenty five basis
points decrease in interest rate, with all other variables held constant, would increase the Group’s total
return for the year and Unitholders’ funds by approximately $690,000 (2015: $448,000), arising mainly as
a result of lower/higher interest expense on floating rate loans and borrowings. The assumed movement
in basis points for interest rate sensitivity analysis is based on current observable market environment.
167
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 25.
FINANCIAL RISK MANAGEMENT (CONT’D)
(b)
Financial risk management objectives and policies (cont’d)
(iii)
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to
shortage of funds. The Group’s objective is to maintain sufficient cash on demand to meet expected
operational expenses for a reasonable period, including the servicing of financial obligations. The
Manager monitors and maintains a level of cash and cash equivalents deemed adequate to finance the
Group’s operations and to mitigate the effects of fluctuations in cash flows. In addition, the Manager
monitors and observes the CIS Code issued by the MAS concerning limits on total borrowings.
The table below summarises the maturity profile of the Group’s and the Trust’s financial liabilities at the
balance sheet date based on contractual undiscounted payments.
Within 1 year
$’000
1 to 5 years
$’000
More than
5 years
$’000
Total
$’000
As at 30 September 2016
Group
Trade and other payables
Derivative financial instruments
Security deposits
Interest-bearing borrowings
Trust
Trade and other payables
Derivative financial instruments
Security deposits
Interest-bearing borrowings
As at 30 September 2015
Group
Trade and other payables
Derivative financial instruments
Security deposits
Interest-bearing borrowings
Trust
Trade and other payables
Derivative financial instruments
Security deposits
Interest-bearing borrowings
39,359
601
21,010
229,973
290,943
39,377
601
21,010
229,973
290,961
31,751
62
17,955
293,095
342,863
31,769
62
17,955
293,095
342,881
–
–
23,873
538,368
562,241
–
–
23,873
538,368
562,241
–
–
26,456
459,375
485,831
–
–
26,456
459,375
485,831
–
–
10
–
10
–
–
10
–
10
–
–
10
–
10
–
–
10
–
10
39,359
601
44,893
768,341
853,194
39,377
601
44,893
768,341
853,212
31,751
62
44,421
752,470
828,704
31,769
62
44,421
752,470
828,722
168
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 26.
SEGMENT REPORTING
Business segments
The Group is in the business of investing in the following shopping malls, which are considered to be the main
business segments: Causeway Point, Northpoint, Anchorpoint, YewTee Point, Bedok Point and Changi City
Point. All these properties are located in Singapore.
Management monitors the operating results of the business segments separately for the purpose of making
decisions about resource allocation and performance assessment. Segment information is presented in respect
of the Group’s business segments, based on its management and internal reporting structure.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can
be allocated on a reasonable basis. Unallocated items comprise mainly income-earning assets, interest-bearing
borrowings and their related revenue and expenses.
Segment capital expenditure is the total costs incurred during the year to acquire segment assets that are
expected to be used for more than one year.
Geographical segments
The Group’s operations are primarily in Singapore except for its associate, for which operations are in Malaysia.
169
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 26.
SEGMENT REPORTING (COMT’D)
(a)
Business segments
Causeway
Point
$’000
North-
point
$’000
Anchor-
point
$’000
YewTee
Point
$’000
Bedok
Point
$’000
Changi
City Point
$’000
Group
$’000
72,889
10,133
83,022
40,788
4,174
44,962
7,853
875
8,728
12,640
1,703
14,343
7,450
884
8,334
21,349 162,969
20,847
24,427 183,816
3,078
2016
Revenue and expenses
Gross rental income
Others
Gross revenue
Segment net
property income
62,031
33,333
4,698
10,206
4,226
15,358 129,852
Unallocated expenses *
Net income
Unrealised gain from fair
valuation of derivatives
Share of results of
associate
Share of results of
joint venture
Surplus on revaluation of
investment properties
Total return for the year
2015
Revenue and expenses
Gross rental income
Others
Gross revenue
Segment net
(33,039)
96,813
(1,896)
(416)
538
28,407
123,446
32,408
(8,463)
3,031
2,019
(201)
(387)
71,175
9,785
80,960
45,131
5,204
50,335
7,926
846
8,772
12,251
1,798
14,049
8,393
993
9,386
23,039 167,915
21,327
25,740 189,242
2,701
property income
59,100
36,156
4,799
9,720
4,945
16,323 131,043
Interest income
Unallocated expenses *
Net income
Unrealised gain from fair
valuation of derivatives
Share of results of
associate
Share of results of
joint venture
Surplus on revaluation of
investment properties
Total return for the year
180
(35,018)
96,205
5,442
5,272
506
64,039
171,464
52,535
10,036
2,033
6,982 (11,945)
4,398
* Unallocated expenses include borrowing costs and asset management fees as disclosed in the Statements of Total Return.
170
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST Causeway
Point
$’000
North-
point
$’000
Anchor-
point
$’000
YewTee
Point
$’000
Bedok
Point
$’000
Changi
City Point
$’000
Group
$’000
1,147,132 675,130 104,611 173,850 109,916
314,786 2,525,425
59,600
235
9,217
2,594,477
30,064
21,012
3,847
5,693
4,526
11,382
76,524
26.
SEGMENT REPORTING (COMT’D)
(a)
Business segments (cont’d)
As at 30 September 2016
Assets and liabilities
Segment assets
Investment in associate
Investment in
joint venture
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
– Trade and other
payables
– Interest-bearing
borrowings
Total liabilities
Other segmental
information
Allowance for
doubtful receivables
Write back of allowance
for doubtful receivables
Amortisation of
lease incentives
Depreciation of
fixed assets
Amortisation of
intangible assets
12
(13)
–
–
417
(955)
15
3
6
3
Capital expenditure
– Investment properties
– Fixed assets
1,009
11
14,509
2
8,308
734,000
818,832
19
(19)
56
4
3
25
2
–
–
5
–
2
(4)
38
(36)
26
30
(111)
(537)
5
3
7
–
6
3
230
6
5
3
41
18
276
2
16,056
23
171
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 26.
SEGMENT REPORTING (COMT’D)
(a)
Business segments (cont’d)
Causeway
Point
$’000
North-
point
$’000
Anchor-
point
$’000
YewTee
Point
$’000
Bedok
Point
$’000
Changi
City Point
$’000
Group
$’000
1,114,619 669,104 102,044 171,000 110,159
314,976 2,481,902
62,823
154
3,867
2,548,746
28,132
16,572
3,351
5,296
4,444
9,802
67,597
8,605
718,000
794,202
As at 30 September 2015
Assets and liabilities
Segment assets
Investment in associate
Investment in
joint venture
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
– Trade and
other payables
– Interest-bearing
borrowings
Total liabilities
Other segmental
information
Allowance for
doubtful receivables
Write back of allowance
for doubtful receivables
–
–
1
–
–
–
3
(5)
–
(1)
4
(1)
8
(7)
Amortisation of
lease incentives
Depreciation of
fixed assets
Amortisation of
intangible assets
Capital expenditure
– Investment properties
– Fixed assets
817
36
22
34
97
(526)
480
14
3
283
6
6
3
–
7
4
3
40
20
7
3
–
5
9
3
42
–
6
3
76
–
46
18
441
38
172
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST 27. COMMITMENTS
Capital expenditure contracted but not provided for
33,016
1,209
The Group leases out its investment properties. Non-cancellable operating lease rentals receivable are
as follows:
Group and Trust
2016
$’000
2015
$’000
Receivable:
Within 1 year
After 1 year but within 5 years
After 5 years
28. CONTINGENT LIABILITY
Group and Trust
2016
$’000
2015
$’000
129,906
132,673
163
262,742
145,715
143,916
44
289,675
Pursuant to the tax transparency ruling from the IRAS, the Trustee and the Manager have provided a tax
indemnity for certain types of tax losses, including unrecovered late payment penalties, that may be suffered
by the IRAS should the IRAS fail to recover from Unitholders tax due or payable on distributions made to them
without deduction of tax, subject to the indemnity amount agreed with the IRAS. The amount of indemnity, as
agreed with the IRAS, is limited to the higher of $500,000 or 1.0% of the taxable income of the Trust each year.
Each yearly indemnity has a validity period of the earlier of seven years from the relevant year of assessment
and three years from the termination of the Trust.
29.
SUBSEQUENT EVENTS
On 21 October 2016, the Manager declared a distribution of $25,904,000 to Unitholders in respect of the
period from 1 July 2016 to 30 September 2016.
On 24 October 2016, the Trust issued 828,989 new Units at a price of $2.1316 per Unit in payment of 50% of
its management fees for the period from 1 July 2016 to 30 September 2016.
On 16 November 2016, the Group completed the acquisition of all ten strata-titled retail units at Yishun 10 Cinema
Complex for an aggregate purchase consideration of $37,750,000. An amount of $377,500 will be payable to the
Manager as payment of the acquisition fee.
173
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016ANNUAL REPORT 2016 30.
FINANCIAL RATIOS
The following financial ratios are presented as required by RAP 7:
Expenses to weighted average net assets (1):
including performance component of asset management fees
excluding performance component of asset management fees
Portfolio turnover rate (2)
Group
2016
%
0.90
0.53
–
2015
%
0.92
0.54
–
(1) The annualised ratios are computed in accordance with the guidelines of Investment Management Association of Singapore. The expenses
used in the computation relate to expenses of the Trust, excluding property expenses, interest expense and taxation.
(2) The annualised ratios are computed based on the lesser of purchases or sales of underlying investment properties of the Group expressed
as a percentage of daily average net asset value.
174
NOTES TO THE FINANCIAL STATEMENTS30 SEPTEMBER 2016FRASERS CENTREPOINT TRUST STATISTICS OF UNITHOLDERS
ISSUED AND FULLY PAID-UP UNITS
There were 920,387,961 Units (voting rights: one vote per Unit) outstanding as at 25 November 2016.
There is only one class of Units.
The market capitalisation was S$1,799 million based on closing unit price of S$1.955 on 25 November 2016.
TOP TWENTY UNITHOLDERS AS AT 25 NOVEMBER 2016
As shown in the Register of Unitholders
S/No Unitholders
FCL TRUST HOLDINGS PTE. LTD.
CITIBANK NOMINEES SINGAPORE PTE LTD
HSBC (SINGAPORE) NOMINEES PTE LTD
DBS NOMINEES (PRIVATE) LIMITED
RAFFLES NOMINEES (PTE) LIMITED
FRASERS CENTREPOINT ASSET MANAGEMENT LTD
DBSN SERVICES PTE. LTD.
UNITED OVERSEAS BANK NOMINEES (PRIVATE) LIMITED
NTUC FAIRPRICE CO-OPERATIVE LTD
CIMB SECURITIES (SINGAPORE) PTE. LTD.
BNP PARIBAS SECURITIES SERVICES SINGAPORE BRANCH
DB NOMINEES (SINGAPORE) PTE LTD
KGI SECURITIES (SINGAPORE) PTE LTD
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14. MAYBANK KIM ENG SECURITIES PTE. LTD.
OCBC SECURITIES PRIVATE LIMITED
15.
YAP CHONG HIN GABRIEL
16.
UOB KAY HIAN PRIVATE LIMITED
17.
OCBC NOMINEES SINGAPORE PRIVATE LIMITED
18.
BNP PARIBAS NOMINEES SINGAPORE PTE LTD
19.
NG SAY BAN
20.
Total
Number of Units
% of Total
Units in Issue
349,671,000
148,909,637
118,375,840
84,065,791
34,013,022
32,757,961
23,612,578
10,124,500
7,695,000
5,899,608
4,516,180
3,643,255
2,266,900
2,198,274
1,883,800
1,700,000
1,614,600
1,560,200
1,428,700
1,300,000
837,236,846
37.99
16.18
12.86
9.13
3.70
3.56
2.57
1.10
0.84
0.64
0.49
0.40
0.25
0.24
0.20
0.18
0.18
0.17
0.16
0.14
90.98
UNITHOLDINGS OF DIRECTORS OF THE MANAGER AS AT 21 OCTOBER 2016
Name of Director
Mr Bobby Chin Yoke Choong
Mr Lim Ee Seng
Mr Soh Kim Soon
Mr Christopher Tang Kok Kai
Number of FCT Units held
Direct Interest
Deemed Interest
–
200,000
100,000
50,000
100,000
–
–
620,000
175
ANNUAL REPORT 2016 STATISTICS OF UNITHOLDERS
SUBSTANTIAL UNITHOLDERS AS AT 25 NOVEMBER 2016
Substantial Unitholders
Number of Units
% Number of Units
%
Direct Interest
Deemed Interest
Total Number
of Units Held
%
FCL Trust Holdings Pte. Ltd.
Frasers Centrepoint Limited (1)
Thai Beverage Public
Company Limited (2)
International Beverage
Holdings Limited (3)
InterBev Investment Limited (4)
TCC Assets Limited (5)
Charoen Sirivadhanabhakdi (6)
Khunying Wanna
Sirivadhanabhakdi (7)
Schroder Investment
Management Group (8)
349,671,000
–
37.99%
–
–
382,428,961
–
41.55%
349,671,000
382,428,961
37.99%
41.55%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
382,428,961
41.55%
382,428,961
41.55%
382,428,961
41.55%
382,428,961
41.55%
382,428,961
382,428,961
382,428,961
41.55%
41.55%
41.55%
382,428,961
382,428,961
382,428,961
41.55%
41.55%
41.55%
382,428,961
41.55%
382,428,961
41.55%
49,978,400
5.43%
49,978,400
5.43%
Notes:
(1)
Frasers Centrepoint Limited (“FCL”) holds a 100% direct interest in each of Frasers Centrepoint Asset Management Ltd (“FCAM”) and FCL Trust
Holdings Pte. Ltd. (“FCLT”); and FCAM and FCLT hold units in FCT. FCL therefore has a deemed interest in the units in FCT in which each of FCAM
and FCLT has an interest, by virtue of Section 4 of the Securities and Futures Act (Chapter 289 of Singapore).
(2) Thai Beverage Public Company Limited (“ThaiBev”) holds a 100% direct interest in International Beverage Holdings Limited (“IBHL”);
IBHL holds a 100% direct interest in InterBev Investment Limited (“IBIL”);
IBIL holds a greater than 20% interest in FCL;
−
−
− FCL holds a 100% direct interest in each of FCAM and FCLT; and
− FCAM and FCLT hold units in FCT.
ThaiBev therefore has a deemed interest in the units in FCT in which FCL has an interest, by virtue of Section 4 of the Securities and Futures Act
(Chapter 289 of Singapore).
(3)
(4)
IBIL holds a greater than 20% interest in FCL;
IBHL holds a 100% direct interest in InterBev Investment Limited;
−
− FCL holds a 100% direct interest in each of FCAM and FCLT; and
− FCAM and FCLT hold units in FCT.
IBHL therefore has a deemed interest in the units in FCT in which FCL has an interest, by virtue of Section 4 of the Securities and Futures Act
(Chapter 289 of Singapore).
IBIL holds a greater than 20% interest in FCL;
− FCL holds a 100% direct interest in each of FCAM and FCLT; and
− FCAM and FCLT hold units in FCT.
IBIL therefore has a deemed interest in the units in FCT in which FCL has an interest, by virtue of Section 4 of the Securities and Futures Act (Chapter
289 of Singapore).
(5) TCC Assets Limited (“TCCA”) holds a majority interest in FCL;
− FCL holds a 100% direct interest in each of FCAM and FCLT; and
− FCAM and FCLT hold units in FCT.
TCCA therefore has a deemed interest in the units in FCT in which FCL has an interest, by virtue of Section 4 of the Securities and Futures Act
(Chapter 289 of Singapore).
(6) Charoen Sirivadhanabhakdi and his spouse, Khunying Wanna Sirivadhanabhakdi, each owns 50% of the issued and paid-up share capital of TCCA;
− TCCA holds a majority interest in FCL;
− FCL holds a 100% direct interest in each of FCAM and FCLT; and
− FCAM and FCLT hold units in FCT.
Charoen Sirivadhanabhakdi therefore has a deemed interest in the units in FCT in which FCL has an interest, by virtue of Section 4 of the Securities
and Futures Act (Chapter 289 of Singapore).
(7) Khunying Wanna Sirivadhanabhakdi and her spouse, Charoen Sirivadhanabhakdi, each owns 50% of the issued and paid-up share capital of TCCA;
− TCCA holds a majority interest in FCL;
− FCL holds a 100% direct interest in each of FCAM and FCLT; and
− FCAM and FCLT hold units in FCT.
Khunying Wanna Sirivadhanabhakdi therefore has a deemed interest in the units in FCT in which FCL has an interest, by virtue of Section 4 of the
Securities and Futures Act (Chapter 289 of Singapore).
(8) Based on information provided by Schroder Investment (Singapore) Ltd. on 28 November 2016.
176
FRASERS CENTREPOINT TRUST STATISTICS OF UNITHOLDERS
DISTRIBUTION OF HOLDINGS BY SIZE AS AT 25 NOVEMBER 2016
Size of Holdings
1 to 99
100 to 1,000
1,001 to 10,000
10,001 to 1,000,000
1,000,001 and above
Total
Number of
Unitholders
Percentage of
Unitholders
Number of Units
Percentage of
Units in Issue
15
736
3,992
1,319
22
6,084
0.25%
12.10%
65.61%
21.68%
0.36%
100.00%
306
642,131
19,742,459
60,386,847
839,616,218
920,387,961
0.00
0.07
2.15
6.56
91.22
100.00%
DISTRIBUTION OF HOLDINGS BY COUNTRY OF RESIDENCE AS AT 25 NOVEMBER 2016
Country
Singapore
Malaysia
Others
Total
FREE FLOAT
Number of
Unitholders
Percentage of
Unitholders
Number of Units
Percentage of
Units in Issue
5,792
201
91
6,084
95.20%
3.30%
1.50%
100.00%
915,739,858
3,570,200
1,077,903
920,387,961
99.49%
0.39%
0.12%
100.00%
Based on information made available to the Manager as at 25 November 2016, approximately 58% of the Units are
held in the hands of the public. Rule 723 of the Listing Manual of the Singapore Exchange Securities Trading Limited
has accordingly been complied with.
177
ANNUAL REPORT 2016 ADDITIONAL INFORMATION
INTERESTED PERSON TRANSACTIONS
The transactions entered into with interested persons during the financial year, which fall within the Listing Manual
of the Singapore Exchange Securities trading Limited (“SGX-ST”) and the Property Funds Appendix of the Code on
Collective Investment Schemes (excluding transactions of less than $100,000 each) are as follows:
Aggregate value of all
Interested Person Transactions
during the financial year under
review (excluding transactions
less than $100,000 and
transactions conducted under
shareholders’ mandate
pursuant to Rule 920)
$’000
Aggregate value of all
Interested Person
Transactions during the
financial year under review
under shareholders’ mandate
pursuant to Rule 920
(excluding transactions less
than $100,000)
$’000
14,209
5,071
4,465
403
–
–
–
Name of Interested Person
Frasers Centrepoint Limited and its
subsidiaries or associate
– Asset management fees
– Property management fees
– Reimbursement of expenses
HSBC Institutional Trust Services
(Singapore) Limited
– Trustee’s fees
Saved as disclosed above, there were no additional interested person transactions (excluding transactions of less than
$100,000 each) entered into during the financial year under review nor any material contracts entered into by the Trust
that involved the interests of the CEO, any Director or any controlling shareholder of the Trust.
Please also see Significant Related Party Transactions in Note 23 in the financial statements.
Fees payable to the Manager and the Property Manager on the basis of, and in accordance with, the terms and
conditions set out in the Trust deed dated 5 June 2006 (as amended) and/or the prospectus dated 27 June 2006
are not subject to Rules 905 and 906 of the SGX-ST’s Listing Manual. Accordingly, such fees are not subject to
aggregation and other requirements under Rules 905 and 906 of the SGX-ST’s Listing Manual.
SUBSCRIPTION OF THE TRUST UNITS
As at 30 September 2016, an aggregate of 919,369,341 Units were in issue. On 24 October 2016, the Trust issued
828,989 Units to the Manager as asset management fees for the period from 1 July 2016 to 30 September 2016.
NON-DEAL ROADSHOW EXPENSES
Non-deal roadshow expenses of $37,020 (2015: $35,595) were incurred during the year ended 30 September 2016.
178
FRASERS CENTREPOINT TRUST Addendum to Annual Report 2016
This is an addendum to the Annual Report 2016 of Fraser Centrepoint Trust. This addendum replaces page 178 of the
Annual Report 2016.
ADDITIONAL INFORMATION
INTERESTED PERSON TRANSACTIONS
The transactions entered into with interested persons during the financial year, which fall within the Listing Manual
of the Singapore Exchange Securities trading Limited (“SGX-ST”) and the Property Funds Appendix of the Code on
Collective Investment Schemes (excluding transactions of less than $100,000 each) are as follows:
Aggregate value of all
Interested Person Transactions
during the financial year under
review (excluding transactions
less than $100,000 and
transactions conducted under
shareholders’ mandate
pursuant to Rule 920)
$’000
Aggregate value of all
Interested Person
Transactions during the
financial year under review
under shareholders’ mandate
pursuant to Rule 920
(excluding transactions less
than $100,000)
$’000
14,209
5,071
4,465
403
–
–
–
Name of Interested Person
Frasers Centrepoint Limited and its
subsidiaries or associate
– Asset management fees
– Property management fees*
– Reimbursement of expenses*
HSBC Institutional Trust Services
(Singapore) Limited
– Trustee’s fees
* During the financial year, property management agreements with Frasers Centrepoint Property Management Services Pte Ltd (the “Property
Manager”) for Anchorpoint, Bedok Point, Causeway Point, Northpoint Shopping Centre and YewTee Point have been renewed for a term of 5
years commencing 5 July 2016. The fees payable and expenses reimbursable to the Property Manager pursuant to the property management
agreements are estimated at $81.77 million.
Saved as disclosed above, there were no additional interested person transactions (excluding transactions of less than
$100,000 each) entered into during the financial year under review nor any material contracts entered into by the Trust
that involved the interests of the CEO, any Director or any controlling shareholder of the Trust.
Please also see Significant Related Party Transactions in Note 23 in the financial statements.
Fees payable to the Manager and the Property Manager on the basis of, and in accordance with, the terms and
conditions set out in the Trust deed dated 5 June 2006 (as amended) and/or the prospectus dated 27 June 2006
are not subject to Rules 905 and 906 of the SGX-ST’s Listing Manual. Accordingly, such fees are not subject to
aggregation and other requirements under Rules 905 and 906 of the SGX-ST’s Listing Manual.
SUBSCRIPTION OF THE TRUST UNITS
As at 30 September 2016, an aggregate of 919,369,341 Units were in issue. On 24 October 2016, the Trust issued
828,989 Units to the Manager as asset management fees for the period from 1 July 2016 to 30 September 2016.
NON-DEAL ROADSHOW EXPENSES
Non-deal roadshow expenses of $37,020 (2015: $35,595) were incurred during the year ended 30 September 2016.
T
S
U
R
T
T
N
I
O
P
E
R
T
N
E
C
S
R
E
S
A
R
F
178
NOTICE OF ANNUAL GENERAL MEETING
(a real estate investment trust constituted on 5 June 2006 under the laws of the Republic of Singapore)
NOTICE IS HEREBY GIVEN that the 8th Annual General Meeting of the unitholders of FRASERS CENTREPOINT
TRUST (“FCT”, and the unitholders of FCT, “Unitholders”) will be held at Level 2, Alexandra Point, 438 Alexandra
Road, Singapore 119958 on Friday, 20 January 2017 at 10.00 a.m. for the following purposes:
ROUTINE BUSINESS
Resolution (1)
1.
To receive and adopt the Report of the Trustee issued by HSBC Institutional Trust Services (Singapore)
Limited, as trustee of FCT (the “Trustee”), the Statement by the Manager issued by Frasers Centrepoint Asset
Management Ltd., as manager of FCT (the “Manager”) and the Audited Financial Statements of FCT for the
financial year ended 30 September 2016.
Resolution (2)
2.
To re-appoint KPMG LLP (“KPMG”) as Auditors of FCT to hold office until the conclusion of the next Annual
General Meeting of FCT, and to authorise the Manager to fix their remuneration.
SPECIAL BUSINESS
To consider and, if thought fit, to pass the following Ordinary Resolution, with or without any modifications:
Resolution (3)
3.
That authority be and is hereby given to the Manager, to:
(a)
(i)
issue units in FCT (“Units”) whether by way of rights, bonus or otherwise; and/or
(ii)
make or grant offers, agreements or options (collectively, “Instruments”) that might or would
require Units to be issued, including but not limited to the creation and issue of (as well as
adjustments to) securities, warrants, debentures or other instruments convertible into Units,
at any time and upon such terms and conditions and for such purposes and to such persons as the
Manager may in its absolute discretion deem fit; and
(b)
issue Units in pursuance of any Instrument made or granted by the Manager while this Resolution was
in force (notwithstanding that the authority conferred by this Resolution may have ceased to be in force
at the time such Units are issued),
179
ANNUAL REPORT 2016 NOTICE OF ANNUAL GENERAL MEETING
provided that:
(1)
(2)
(3)
(4)
(5)
(6)
the aggregate number of Units to be issued pursuant to this Resolution (including Units to be issued in
pursuance of Instruments made or granted pursuant to this Resolution) shall not exceed fifty per cent.
(50%) of the total number of issued Units (excluding treasury Units, if any) (as calculated in accordance
with sub-paragraph (2) below), of which the aggregate number of Units to be issued other than on a
pro rata basis to Unitholders shall not exceed twenty per cent (20%) of the total number of issued Units
(excluding treasury Units, if any) (as calculated in accordance with sub-paragraph (2) below);
subject to such manner of calculation as may be prescribed by Singapore Exchange Securities Trading
Limited (the “SGX-ST”) for the purpose of determining the aggregate number of Units that may be
issued under sub-paragraph (1) above, the total number of issued Units (excluding treasury Units, if any)
shall be based on the number of issued Units (excluding treasury Units, if any) at the time this Resolution
is passed, after adjusting for:
(a)
any new Units arising from the conversion or exercise of any Instruments which are outstanding
at the time this Resolution is passed; and
(b)
any subsequent bonus issue, consolidation or subdivision of Units;
in exercising the authority conferred by this Resolution, the Manager shall comply with the provisions of
the Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived
by the SGX-ST) and the deed of trust constituting FCT (as amended) (the “Trust Deed”) for the time
being in force (unless otherwise exempted or waived by the Monetary Authority of Singapore);
unless revoked or varied by Unitholders in a general meeting, the authority conferred by this Resolution
shall continue in force until (i) the conclusion of the next Annual General Meeting of FCT or (ii) the date
by which the next Annual General Meeting of FCT is required by the applicable law or regulations to be
held, whichever is earlier;
where the terms of the issue of the Instruments provide for adjustment to the number of Instruments or
Units into which the Instruments may be converted in the event of rights, bonus or other capitalisation
issues or any other events, the Manager is authorised to issue additional Instruments or Units pursuant
to such adjustment notwithstanding that the authority conferred by this Resolution may have ceased to
be in force at the time the Instruments or Units are issued; and
the Manager, any director of the Manager (“Director”) and the Trustee, be and are hereby severally
authorised to complete and do all such acts and things (including executing all such documents as may
be required) as the Manager, such Director, or, as the case may be, the Trustee may consider expedient
or necessary or in the interest of FCT to give effect to the authority conferred by this Resolution.
Frasers Centrepoint Asset Management Ltd.
(Company Registration No: 200601347G)
As manager of Frasers Centrepoint Trust
Catherine Yeo
Company Secretary
Singapore, 22 December 2016
180
FRASERS CENTREPOINT TRUST NOTICE OF ANNUAL GENERAL MEETING
NOTES:
(1)
(2)
A Unitholder who is not a relevant intermediary entitled to attend and vote at the meeting is entitled to
appoint not more than two proxies to attend and vote in the Unitholder’ stead. A proxy need not be a
Unitholder. Where a Unitholder appoints more than one proxy, the appointments shall be invalid unless the
Unitholder specifies the proportion of the Unitholder’s holdings (expressed as a percentage of the whole) to
be represented by each proxy.
A Unitholder who is a relevant intermediary entitled to attend and vote at the meeting is entitled to appoint
more than two proxies to attend and vote instead of the Unitholder, but each proxy must be appointed to
exercise the rights attached to a different Unit or Units held by such Unitholder. Where such Unitholder appoints
more than two proxies, the appointments shall be invalid unless the Unitholder specifies in the proxy form the
number of Units in relation to which each proxy has been appointed.
“Relevant intermediary” means:
(a)
(b)
(c)
a banking corporation licensed under the Banking Act, Chapter 19 of Singapore or a wholly-owned
subsidiary of such a banking corporation, whose business includes the provision of nominee services
and who holds Units in that capacity;
a person holding a capital markets services licence to provide custodial services for securities under the
Securities and Futures Act, Chapter 289 of Singapore and who holds Units in that capacity; or
the Central Provident Fund Board (“CPF Board”) established by the Central Provident Fund Act,
Chapter 36 of Singapore, in respect of Units purchased under the subsidiary legislation made under
that Act providing for the making of investments from the contributions and interest standing to the
credit of members of the Central Provident Fund, if the CPF Board holds those Units in the capacity of
an intermediary pursuant to or in accordance with that subsidiary legislation.
(3)
The instrument appointing a proxy or proxies (a form is enclosed) must be deposited with the company
secretary of the Manager at the office of FCT’s Unit Registrar, Boardroom Corporate & Advisory Services Pte
Ltd, 50 Raffles Place, #32-01 Singapore Land Tower, Singapore 048623, not less than 72 hours before the time
appointed for holding the meeting.
EXPLANATORY NOTE:
Resolution 3
The Ordinary Resolution 3 above, if passed, will empower the Manager from the date of this Annual General Meeting
until the earliest of (i) the conclusion of the next Annual General Meeting of FCT or (ii) the date by which the next
Annual General Meeting of FCT is required by the applicable laws and regulations or the Trust Deed to be held,
whichever is earlier, or (iii) the date on which such authority is revoked or varied by the Unitholders in a general
meeting, to issue Units and to make or grant instruments (such as securities, warrants or debentures) convertible into
Units and issue Units pursuant to such instruments, up to a number not exceeding 50% of the total number of issued
Units (excluding treasury Units, if any), with a sub-limit of 20% for issues other than on a pro rata basis to Unitholders.
For the purpose of determining the aggregate number of Units that may be issued, the percentage of issued Units
will be calculated based on the total number of issued Units at the time Ordinary Resolution 3 above is passed, after
adjusting for new Units arising from the conversion or exercise of any Instruments which are outstanding at the time
this Resolution is passed and any subsequent bonus issue, consolidation or subdivision of Units.
181
ANNUAL REPORT 2016 NOTICE OF ANNUAL GENERAL MEETING
Fund raising by issuance of new Units may be required in instances of property acquisitions or debt repayments.
In any event, if the approval of Unitholders is required under the Listing Manual of the SGX-ST and the Trust Deed
or any applicable laws and regulations in such instances, the Manager will then obtain the approval of Unitholders
accordingly.
PERSONAL DATA PRIVACY:
By submitting an instrument appointing a proxy(ies) and/or representative(s) to attend, speak and vote at the Annual
General Meeting (“AGM”) and/or any adjournment thereof, a Unitholder (i) consents to the collection, use and disclosure
of the Unitholder’s personal data by the Manager and the Trustee (or their agents) for the purpose of the processing
and administration by the Manager and the Trustee (or their agents) of proxies and representatives appointed for the
AGM (including any adjournment thereof) and the preparation and compilation of the attendance lists, minutes and
other documents relating to the AGM (including any adjournment thereof), and in order for the Manager and the
Trustee (or their agents) to comply with any applicable laws, listing rules, regulations and/or guidelines (collectively,
the “Purposes”), (ii) warrants that where the Unitholder discloses the personal data of the Unitholder’s proxy(ies) and/
or representative(s) to the Manager and the Trustee (or their agents), the Unitholder has obtained the prior consent
of such proxy(ies) and/or representative(s) for the collection, use and disclosure by the Manager and the Trustee (or
their agents) of the personal data of such proxy(ies) and/or representative(s) for the Purposes, and (iii) agrees that the
Unitholder will indemnify the Manager and the Trustee (or their agents) in respect of any penalties, liabilities, claims,
demands, losses and damages as a result of the Unitholder’s breach of warranty.
Important Notice
The value of Units and the income derived from them, if any, may fall or rise. Units are not obligations of, deposits
in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks,
including the possible loss of the principal amount invested.
Investors should note that they have no right to request the Manager to redeem or purchase their Units for so
long as the Units are listed on the SGX-ST. It is intended that Unitholders may only deal in their Units through
trading on the SGX-ST. The listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.
The past performance of FCT is not necessarily indicative of the future performance of FCT.
182
FRASERS CENTREPOINT TRUST FRASERS CENTREPOINT TRUST
(CONSTITUTED IN THE REPUBLIC OF SINGAPORE
PURSUANT TO A TRUST DEED DATED 5 JUNE 2006
(AS AMENDED AND RESTATED))
PROXY FORM
ANNUAL GENERAL MEETING
IMPORTANT
1. A relevant intermediary may appoint more than two proxies to attend
the Annual General Meeting and vote (please see Note 2 for the
definition of “relevant intermediary”).
2. This Proxy Form is not valid for use by CPF Investors and shall be
ineffective for all intents and purposes if used or is purported to be
used by them.
3. PLEASE READ THE NOTES TO THE PROXY FORM.
PERSONAL DATA PRIVACY
By submitting an instrument appointing a proxy(ies) and/or representative(s),
the unitholder accepts and agrees to the personal data privacy terms set
out in the Notice of Annual General Meeting dated 22 December 2016.
I/We
of
(Name)
(NRIC/Passport Number)
(Address)
being a unitholder/unitholders of Frasers Centrepoint Trust (“FCT”), hereby appoint:
Name
Address
NRIC/Passport
Number
Proportion of
Unitholdings (Note 2)
No. of Units
%
and/or (delete as appropriate)
Name
Address
NRIC/Passport
Number
Proportion of
Unitholdings (Note 2)
No. of Units
%
or failing the person, or either or both of the persons, referred to above, the Chairman of the Annual General Meeting as
my/our proxy/proxies to attend and to vote for me/us on my/our behalf at the Annual General Meeting of FCT to be held
at 10.00 a.m. on Friday, 20 January 2017 at Level 2, Alexandra Point, 438 Alexandra Road, Singapore 119958, and any
adjournment thereof. I/We direct my/our proxy/proxies to vote for or against the resolutions to be proposed at the Annual
General Meeting as indicated hereunder. If no specific direction as to voting is given, the proxy/proxies may vote or abstain
from voting at his/her/their discretion, as he/she/they may on any other matter arising at the Annual General Meeting.
NO. RESOLUTIONS RELATING TO:
ROUTINE BUSINESS
To receive and adopt the Trustee’s Report, the Statement by the Manager and the
Audited Financial Statements of FCT for the financial year ended 30 September 2016
To re-appoint KPMG LLP as Auditors of FCT to hold office until the conclusion of the
next Annual General Meeting, and to authorise the Manager to fix their remuneration
SPECIAL BUSINESS
To authorise the Manager to issue Units and to make or grant convertible instruments
1.
2.
3.
No. of Votes
For*
No. of Votes
Against*
*
Voting will be conducted by poll. If you wish to exercise all your votes “For” or “Against” the relevant resolution, please tick (
) within the relevant box
provided. Alternatively, if you wish to exercise your votes for both “For” and “Against” the relevant resolution, please indicate the number of Units in the
boxes provided.
Dated this
day of
2016/2017
Signature(s) of Unitholder(s)/Common Seal
IMPORTANT: PLEASE READ NOTES TO THE PROXY FORM
Total number of Units held (Note 5)
fold and seal here
IMPORTANT: PLEASE READ THE NOTES TO PROXY FORM BELOW
Notes To Proxy Form
1. A Unitholder who is not a relevant intermediary entitled to attend and vote at the meeting is entitled to appoint not more than two proxies to attend and
vote instead of the Unitholder. A proxy need not be a Unitholder. Where a Unitholder appoints more than one proxy, the appointments shall be invalid unless
the Unitholder specifies the proportion of the Unitholder’s holdings (expressed as a percentage of the whole) to be represented by each proxy.
2. A Unitholder who is a relevant intermediary entitled to attend and vote at the meeting is entitled to appoint more than two proxies to attend and vote
instead of the Unitholder, but each proxy must be appointed to exercise the rights attached to a different Unit or Units held by such Unitholder. Where such
Unitholder appoints more than two proxies, the appointments shall be invalid unless the Unitholder specifies the number of Units in relation to which each
proxy has been appointed.
“relevant intermediary” means:
(a) a banking corporation licensed under the Banking Act, Chapter 19 of Singapore or a wholly-owned subsidiary of such a banking corporation, whose
business includes the provision of nominee services and who holds Units in that capacity;
(b) a person holding a capital markets services licence to provide custodial services for securities under the Securities and Futures Act, Chapter 289 of
Singapore and who holds Units in that capacity; or
(c)
the Central Provident Fund Board (“CPF Board”) established by the Central Provident Fund Act, Chapter 36 of Singapore, in respect of Units purchased
under the subsidiary legislation made under that Act providing for the making of investments from the contributions and interest standing to the credit
of members of the Central Provident Fund, if the CPF Board holds those Units in the capacity of an intermediary pursuant to or in accordance with that
subsidiary legislation.
3. The instrument appointing a proxy or proxies (a form is enclosed) must be deposited with the company secretary of the Manager at the office of FCT’s Unit
Registrar, Boardroom Corporate & Advisory Services Pte Ltd, 50 Raffles Place, #32-01 Singapore Land Tower, Singapore 048623, not less than 72 hours
before the time appointed for holding the meeting.
4. Completion and return of this instrument appointing a proxy or proxies shall not preclude a Unitholder from attending and voting at the meeting. Any
appointment of a proxy or proxies shall be deemed to be revoked if a Unitholder attends the meeting in person, and in such event, the Manager reserves
the right to refuse to admit any person or persons appointed under this instrument of proxy, to the meeting.
5. A Unitholder should insert the total number of Units held. If the Unitholder has Units entered against the Unitholder’s name in the Depository Register
maintained by the Central Depository (Pte) Limited (“CDP”), the Unitholder should insert that number of Units. If the Unitholder has Units registered in the
Unitholder’s name in the Register of Unitholders of FCT, he should insert that number of Units. If the Unitholder has Units entered against his name in the
said Depository Register and registered in the Unitholder’s name in the Register of Unitholders, the Unitholder should insert the aggregate number of Units.
If no number is inserted, this form of proxy will be deemed to relate to all the Units held by the Unitholder.
6. The instrument appointing a proxy or proxies must be under the hand of the appointor or of his attorney duly authorised in writing. Where the instrument
appointing a proxy or proxies is executed by a corporation, it must be executed either under its common seal or under the hand of its attorney or a duly
authorised officer. A corporation which is a Unitholder may authorise by resolution of its directors or other governing body such person as it thinks fit to act
as its representative at the Meeting and the person so authorised shall upon production of a copy of such resolution certified by a director of the corporation
to be a true copy, be entitled to exercise the powers on behalf of the corporation so represented as the corporation could exercise in person if it were an
individual.
7. Where an instrument appointing a proxy or proxies is signed on behalf of the appointor by an attorney, the power of attorney or a duly certified copy thereof
must (failing previous registration with the Manager) be lodged with the instrument of proxy, failing which the instrument may be treated as invalid.
8. The Manager shall be entitled to reject a Proxy Form which is incomplete, improperly completed or illegible or where the true intentions of the appointor
are not ascertainable from the instructions of the appointor specified on and/or attached to the Proxy Form. In addition, in the case of Units entered in the
Depository Register, the Manager may reject a Proxy Form if the Unitholder, being the appointor, is not shown to have Units entered against the Unitholder’s
name in the Depository Register as at 72 hours before the time appointed for holding the meeting, as certified by CDP to the Manager.
fold here
Affix
Postage
Stamp
The Company Secretary
Frasers Centrepoint Asset Management Ltd.
(as manager of Frasers Centrepoint Trust)
c/o Boardroom Corporate & Advisory Services Pte Ltd
50 Raffles Place #32-01
Singapore Land Tower
Singapore 048623
CORPORATE
INFORMATION
FRASERS CENTREPOINT TRUST
Registered Address:
HSBC Institutional Trust Services (Singapore) Limited
21 Collyer Quay, HSBC Building,
#13-02 Singapore 049320
Website address: www.fct.sg
TRUSTEE
HSBC Institutional Trust Services (Singapore) Limited
21 Collyer Quay, HSBC Building,
#03-01 Singapore 049320
AUDITOR
KPMG LLP
Partner-in-charge: Ms Karen Lee Shu Pei
Appointed: 21 January 2016
16 Raffl es Quay #22-00
Hong Leong Building
Singapore 048581
Telephone: (65) 6213 3388
Fax: (65) 6225 0984
Website address: www.kpmg.com.sg
BANKERS
Citibank N.A.
DBS Bank Ltd
Oversea-Chinese Banking Corporation Ltd
Standard Chartered Bank
UNIT REGISTRAR
Boardroom Corporate & Advisory Services Pte Ltd
50 Raffl es Place,
Singapore Land Tower, #32-01
Singapore 048623
Phone: (65) 6536-5355
Fax: (65) 6536-1360
THE MANAGER
Frasers Centrepoint Asset Management Ltd
438 Alexandra Road, Alexandra Point,
#21-00 Singapore 119958
Phone: (65) 6276-4882
Fax: (65) 6272-8776
DIRECTORS OF THE MANAGER
Mr Philip Eng Heng Nee
Chairman, Non-Executive (Non-Independent)
Dr Chew Tuan Chiong
Chief Executive Offi cer (Non-Independent)
Dr Cheong Choong Kong1
Non-Executive (Lead Independent Director)
Mr Chia Khong Shoong2
Non-Executive (Non-Independent)
Mr Bobby Chin Yoke Choong
Non-Executive (Independent)
Mr Lim Ee Seng3
Non-Executive (Non-Independent)
Mr Soh Kim Soon
Non-Executive (Independent)
Mr Christopher Tang Kok Kai
Non-Executive (Non-Independent)
AUDIT COMMITTEE
Mr Bobby Chin Yoke Choong (Chairman)
Mr Philip Eng Heng Nee
Dr Cheong Choong Kong
Mr Soh Kim Soon
NOMINATING AND REMUNERATION
COMMITTEE#
Mr Soh Kim Soon (Chairman)
Dr Cheong Choong Kong
Mr Bobby Chin Yoke Choong
Mr Christopher Tang Kok Kai
#
The Nominating and Remuneration Committee was established on
16 September 2016
COMPANY SECRETARY
Ms Catherine Yeo (from 1 October 2016)
Mr Piya Treruangrachada (until 30 September 2016)
1 Appointed on 18 May 2016
2 Mr Chia Khong Shoong resigned from the Board on 1 October 2016 as part of the rebalancing of his duties and responsibilities in connection
with his new appointments at the Frasers Centrepoint Limited group.
3 Mr Lim Ee Seng resigned from the Board on 1 October 2016 in line with his retirement as the Group Chief Executive Offi cer of Frasers
Centrepoint Limited on 1 October 2016.
FRASERS CENTREPOINT ASSET MANAGEMENT LTD.
As Manager of Frasers Centrepoint Trust
Company Registration Number: 200601347G
438 Alexandra Road
#21-00 Alexandra Point
Singapore 119958
Phone: +65 6276 4882
+65 6272 8776
Fax:
ir@fraserscentrepointtrust.com
Email:
w w w.fct.sg