A member of Frasers Property Group
LEADING
WITH
PURPOSE
Annual Report 2022
CO N T E N TS
G LO S S A R Y
OV E RV I E W
02 About Frasers Centrepoint Trust
03
Structure of FCT and Organisation
Structure of The Manager
FY2022 Highlights
5-Year Performance at a Glance
04 Business Objectives and Growth Strategies
05
06 Key Events
08
10 Unit Price Performance
12
16 Board of Directors
20
22
Trust Management Team
Investor Relations
Letter to Unitholders
B U S I N ES S R E V I E W
Financial Review
26 Operations Review
34
40 Capital Resources
42 Retail Property Market Overview
A S S E T P O RT FO L I O
FCT Portfolio Overview
56
58 Causeway Point
60 Waterway Point
62
64 Northpoint City North Wing and Yishun 10
Tampines 1
Retail Podium
Tiong Bahru Plaza
66
68 Central Plaza
70 Century Square
72 Changi City Point
74 Hougang Mall
76 White Sands
78
79
Property Directory
Investment in Hektar REIT
R I S K M A N AG E M E N T A N D
S U S TA I N A B I L I T Y R E P O RT
81
84
Risk Management
Sustainability Report
CO R P O R AT E G OV E R N A N CE
R E P O RT
125 Corporate Governance Report
F I N A N CI A L & A D D I T I O N A L
I N FO R M AT I O N
161 Financial Statements
234 Statistics of Unitholdings
237 Additional Information
Corporate Information
For ease of reading, this glossary provides definitions of
abbreviations that are frequently used throughout this report
AEI
AGM
ARF Acquisition
: Asset Enhancement Initiative
: Annual General Meeting
: The acquisition of the remaining
approximately 63.11% interest in ARF,
announced on 3 September 2020 and
completed on 27 October 2020
ARF
COVID-19
CSFS
DPU
EGAS Index
Essential Services : The groupings of essential and non-
: AsiaRetail Fund Limited
: Coronavirus disease
: Community/Sports Facilities Scheme
: Distribution per unit
: FTSE EPRA/NAREIT Developed Asia Index
essential services based on Ministry of
Trade and Industry’s press release on
21 April 2020
: Food and Beverage
: Frasers Centrepoint Asset Management
Ltd., the Manager of FCT
: Frasers Centrepoint Trust
: Federal Reserve System
: Federal Funds Target Rates
: FTSE ST All-share Real Estate Investment
Trust Index
: Frasers Property Limited, the sponsor of
FCT
: FCT’s financial year ending 30 September
: Gross Floor Area
: Global Real Estate Sustainability
Benchmark
: Gross Rental Income
: Ministry of Health
: Moody’s Investors Service (credit rating
agency)
: Medium Term Notes
: Net Asset Value
: Net Lettable Area
: Net Property Income
: Net Tangible Asset
: quarter-on-quarter, refers to the
F&B
FCAM
FCT
Fed
Fed Fund Rate
FSTREI Index
FPL
FY
GFA
GRESB
GRI
MOH
Moody’s
MTN
NAV
NLA
NPI
NTA
q-o-q
comparison with the previous quarter
RCF
REIT
Retail Portfolio
: Revolving Credit Facilities
: Real Estate Investment Trust
: Includes all retail malls in FCT’s investment
portfolio, and includes Waterway Point
(40.00%-owned by FCT as at
30 September 2022), but excludes
Central Plaza which is an office property
: Retail Sales Index, published by the
Department of Statistics
: Retail Sales Value, published by the
Department of Statistics
: Standard and Poor’s (credit rating agency)
: Safe Management Measures
: Square Feet
: Square Meter
: Sapphire Star Trust, which holds
Waterway Point; it is a joint venture of FCT
: Weighted Average Lease Expiry
: year-on-year, refers to the comparison with
the same period in the previous year
RSI
RSV
S&P
SMM
Sq ft
Sq m
SST
WALE
y-o-y
Unitholders
: Unitholders of FCT
LEADING
WITH
PURPOSE
At Frasers Centrepoint Trust, people are at the centre of everything we do.
We help connect and strengthen businesses and communities. We consider
our impact on people and the planet. Our Purpose – Inspiring experiences,
creating places for good. – requires us to maintain a long-term view to
business, creating lasting shared value for our stakeholders. We want to
collaborate with like-minded partners, taking a science-based approach for
outcomes that are equitable, people-focused and climate-positive. By being
purpose-led, we challenge ourselves to constantly innovate and evolve as
we strive to help build a more sustainable, inclusive and healthy world
for all. As we aspire to be a leading real estate investment trust of choice,
we believe we will build further on the progress made thus far in ensuring
a more resilient, future-ready business.
Waterway Point,
Singapore
2
FRASERS CENTREPOINT TRUST
A B O U T
F R A S E RS CE N T R E P O I N T T RU S T
Frasers Centrepoint Trust (“FCT”) is a leading developer-sponsored retail
real estate investment trust (“REIT”) and one of the largest suburban retail
mall owners in Singapore with assets under management of approximately
S$6.2 billion. FCT’s current property portfolio comprises nine retail malls
and an office building located in the suburban regions of Singapore, near
homes and within minutes to transportation amenities. The retail portfolio
has approximately 2.3 million square feet of net lettable area with over 1,400
leases with a strong focus on providing for necessity spending, food &
beverage and essential services.
The portfolio comprises Causeway Point, Northpoint City North Wing
(including Yishun 10 Retail Podium), Changi City Point, Waterway Point
(40.00%-interest), Tiong Bahru Plaza, White Sands, Hougang Mall, Century
Square and Tampines 1 and an office property (Central Plaza). FCT’s malls
enjoy stable and recurring shopper footfall supported by commuter traffic
and residential population in the catchment areas.
FCT also holds a 30.53% stake in Hektar Real Estate Investment Trust,
a retail-focused REIT in Malaysia listed on the Main Market of Bursa Malaysia
Securities Berhad.
FCT is index constituent of several benchmark indices including the FTSE
EPRA/NAREIT Global Real Estate Index Series (Global Developed Index),
FTSE ST Real Estate Investment Trust Index, MSCI Singapore Small Cap Index
and SGX iEdge S-REIT Leaders Index.
Listed on the Main Board of the Singapore Exchange Securities Trading
Limited since 5 July 2006, FCT is managed by Frasers Centrepoint Asset
Management Ltd. ("FCAM"), a real estate management company and a
wholly-owned subsidiary of Frasers Property Limited.
Contents
Overview
Business
Review
Asset
Portfolio
Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
3
S T RU CT U R E O F
F R A S E RS CE N T R E P O I N T T RU S T
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
Property Manager
Frasers Property
Retail Management
Pte. Ltd.
Property
Management
Services
Property
Management
Fee
Ownership of Assets
Net Property Income
FCT Portfolio Properties
Causeway Point
Waterway Point (40.00% stake)
Tampines 1
Northpoint City North Wing and
Yishun 10 Retail Podium
Tiong Bahru Plaza
Century Square
Changi City Point
Hougang Mall
White Sands
Central Plaza
O RGA N I S AT I O N S T RU CT U R E
O F T H E M A N AG E R
The Manager
Frasers Centrepoint Asset Management Ltd.
Nominating and
Remuneration Committee
The Board of Directors
Chief Executive Officer
Audit, Risk and
Compliance Committee
Investor Relations
Finance
Investment & Asset
Management
ANNUAL REPORT 2022 4
FRASERS CENTREPOINT TRUST
B U S I N ES S O B J E CT I V ES
A N D G RO W T H S T R AT E G I ES
FCT is a real estate investment trust set up to own and invest in income-producing properties or properties that
could be developed or redeveloped into income-producing properties, used primarily for retail purposes in
Singapore and overseas.
FCT’s objectives are to deliver regular and stable distributions to Unitholders of FCT (“Unitholders”) and to achieve
long-term growth in its net asset value, so as to provide Unitholders with competitive rate of returns for their
investments.
FCAM, the Manager of FCT, sets the strategic direction for FCT and this includes making recommendations to
HSBC Institutional Trust Services (Singapore) Limited, as the Trustee of FCT, on acquisitions, divestments and
enhancement of assets. FCAM also oversees the overall management of FCT’s portfolio of investment properties,
including the capital and risk management.
FCT’s growth strategies comprise three growth drivers – acquisition growth, enhancement growth and organic
growth.
ACQUISITION GROWTH
Identifying and pursuing growth opportunities via acquiring additional
income-producing properties and properties that could be developed
or redeveloped into income-producing properties. The acquisitions
should meet FCT’s investment objectives to enhance yields and returns
for Unitholders while improving portfolio diversification. The acquisition
opportunities include Sponsor’s pipeline assets and third party assets, in
Singapore and overseas.
ENHANCEMENT GROWTH
This includes change of
configuration and layout of the
properties to achieve better asset
yield and sustainable income
growth, and to achieve value
creation through AEI to improve the
income-producing capability of the
properties.
ORGANIC GROWTH
CAPITAL MANAGEMENT
RISK MANAGEMENT
Active lease management to
achieve positive rental reversions
and maintaining healthy portfolio
occupancy to provide steady rental
growth. FCAM adopts prudent
capital and risk management
strategies in its course of business.
FCAM continues to maintain a
prudent financial structure and
adequate financial flexibility to
ensure that it has access to capital
resources at competitive cost.
FCAM proactively manages FCT’s
cash flows, financial position, debt
maturity profile, costs of capital,
interest rates exposure and overall
liquidity position.
Effective risk management is a
fundamental part of FCT’s business
management. Key risks, mitigating
measures and management actions
are continually identified, reviewed
and monitored by management as
part of FCAM’s enterprise-wide risk
management framework.
Recognising and managing risks
are central to the business and to
protecting Unitholders’ interests.
Contents
Overview
Business
Review
Asset
Portfolio
Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
5
FY 2 022 H I G H L I G H TS
GROSS REVENUE
S$356.9
million
▲ 4.6% year-on-year
NET PROPERTY
INCOME
S$258.6
million
▲ 4.9% year-on-year
FY2022 gross revenue and NPI
reached new highs of S$356.9
million and S$258.6 million
respectively. The growth was
largely led by the full year
contribution from the enlarged
retail portfolio following the
ARF Acquisition on 27 October
2020 and absence of rental
rebates given to tenants in
FY2021 as well as an increase
in atrium income with the
lifting of restrictions on atrium
events in late March 2022. The
performance was partially offset
by the loss of contributions
from the divested properties
– Bedok Point, Anchorpoint
and YewTee Point which were
divested in FY2021, and higher
property expenses.
DISTRIBUTION PER
UNIT
12.227
S cents
▲ 1.2% year-on-year
DPU for FY2022 was 12.227
cents, which is 1.2% higher
than the 12.085 cents DPU
in FY2021. The increase was
mainly attributed to higher
NPI and distribution from joint
ventures partially offset by
higher finance costs arising
from the rising interest rate
environment.
NET ASSET VALUE
AND NET TANGIBLE
ASSET PER UNIT
S$2.33
▲ 1.3% year-on-year
FCT’s NAV and NTA per unit as
at 30 September 2022 stood at
S$2.33 per unit1 which is 1.3%
higher than the NAV and NTA
per unit of S$2.30 per unit2 a
year ago.
APPRAISED VALUE
OF INVESTMENT
PROPERTY
PORTFOLIO
S$5,516.0
million
▲ 0.2% year-on-year
Total appraised value of
FCT’s portfolio of investment
properties as at 30 September
2022 stood at S$5,516.0 million,
registering an increase of S$9.5
million as compared to 30
September 2021.
The increase in portfolio value
was largely driven by higher
valuation achieved by Causeway
Point and Northpoint City
North Wing which registered
an uplift in its appraised value
of S$11.0 million and S$6.5
million respectively. Century
Square registered a decline of
S$15.0 million in its appraised
value. The appraised values of
all other properties remained
relatively stable.
AGGREGATE
LEVERAGE
33.0%
FCT’s aggregate leverage stood
at a healthy level of 33.0%3,
compared to average of 36.9%4
in the S-REITs industry.
1
2
3
Includes the distribution to be paid for the second half of FY2022.
Includes the distribution to be paid for the second half of FY2021.
In accordance with Property Funds Appendix, the aggregate leverage includes FCT’s 40.00% proportionate share of deposited property value
and borrowing in Sapphire Star Trust (which owns Waterway Point).
4 Weekly S-REITS Tracker, 31 October 2022, Bank of Singapore Equity Research.
ANNUAL REPORT 2022 6
FRASERS CENTREPOINT TRUST
K EY E V E N TS
OCTOBER 2021
JANUARY 2022
JULY 2022
▶ FCT announced the full year
financial results for FY2021
on 27 October 2021: DPU for
FY2021 rose 33.7% year-on-
year at 12.085 Singapore cents,
gross revenue and net property
income for FY2021 reached new
highs of S$341.1 million and
S$246.6 million, respectively. The
improved financial performance
in FY2021 was attributed to the
ARF acquisition completed in
October 2020 and lower rental
rebates granted to tenants during
the financial year and partially
offset by the loss of contribution
from the properties divested
during the year.
▶ FCT achieved a 5-Star rating and
an overall score of 92 in the 2021
GRESB Real Estate Assessment.
This was a remarkable
improvement from the 3-star
rating achieved in the previous
year.
DECEMBER 2021
▶ FCT announced the retirement
of Mr Christopher Tang Kok
Kai as a Non-Executive and
Non-Independent Director of
FCAM and as a member of the
Nominating and Remuneration
Committee. Mr Tang has served
on the Board of FCAM since
27 January 2006. The Board
expressed its appreciation to
Mr Tang for his dedication and
invaluable contribution during his
tenure of service.
▶ FCT provided the business
update for the first quarter
ended 31 December 2021. FCT
continued to deliver resilient
performance despite continuing
COVID-19 impact and portfolio
occupancy remained stable at a
healthy level of 97.2%.
▶ FCT convened and held its 13th
AGM by way of electronic means
on Tuesday, 18 January 2022. All
resolutions proposed were duly
passed. On 12 January 2022,
prior to the AGM, the Manager
published the responses to
the substantial and relevant
questions for the AGM from
Unitholders. The minutes of
the AGM were published on
17 February 2022.
FEBRUARY 2022
▶ FCT announced the appointment
of Ms Soon Su Lin as a Non-
Executive and Non-Independent
Director of FCAM with effect from
1 March 2022.
APRIL 2022
▶ FCT released its interim financial
statements for the six-month
period ended 31 March 2022.
DPU for 1H2022 was 2.3% higher
year-on-year at 6.136 Singapore
cents. FCT also reported
improved operating and financial
performance in 1H2022 with
higher retail portfolio occupancy
at 97.8% and tenants’ sales
compared to the same period a
year ago.
▶ FCT provided business updates
for the third quarter ended
30 June 2022 on 26 July 2022.
FCT reported stable retail
occupancy at 97.1% and
improved shopper traffic and
tenants’ sales in 3Q2022.
SEPTEMBER 2022
▶ FCT announced the acquisition
of an additional 10.00% stake in
Waterway Point to raise its stake
to 50.00%. The acquisition is in
line with FCT’s growth strategy
to generate long-term returns for
the Trust and its Unitholders.
SUBSEQUENT
EVENTS
October 2022
▶ FCT announced the full
year financial results for
FY2022 on 26 October
2022. FCT achieved
higher gross revenue, net
property income and DPU
in FY2022. DPU for FY2022
was 1.2% higher year-on-
year at 12.227 Singapore
cents. FCT maintained a
healthy financial position
with aggregate leverage
at 33.0% and portfolio
appraised valuation
remaining stable. FCT also
achieved broad-based
improvement in operating
performance with double-
digit percentage year-on-
year rise in shopper traffic
and tenants’ sales, positive
rental reversion and higher
portfolio occupancy.
▶ FCT maintained its 5-Star
rating and an overall score
of 92 in the 2022 GRESB
Real Estate Assessment.
Waterway Point,
Singapore
8
FRASERS CENTREPOINT TRUST
5 - Y E A R P E R FO R M A N CE
AT A G LA N CE
Revenue (S$ million)
▲4.6%
Net Property Income (S$ million)
▲4.9%
341.1
356.9
246.6
258.6
193.3
196.4
164.4
137.2
139.3
110.9
FY2018
FY2019
FY2020
FY2021
FY2022
FY2018
FY2019
FY2020
FY2021
FY2022
Distribution per Unit (S cents)
▲1.2%
Net Asset Value per Unit (S$)
▲1.3%
12.015
12.070
12.085
12.227
2.21
2.27
2.30
2.33
2.08
9.042
FY2018
FY2019
FY2020
FY2021
FY2022
FY2018
FY2019
FY2020
FY2021
FY2022
Total Assets (S$ million)
▲0.72%
Aggregate Leverage (%)
▼0.3%
5,898.8
5,914.4
35.91
32.91
33.31
33.01
28.6
3,610.9
3,883.4
2,840.4
FY2018
FY2019
FY2020
FY2021
FY2022
FY2018
FY2019
FY2020
FY2021
FY2022
1
In accordance with the Property Funds Appendix, the aggregate leverage includes FCT’s 40.00% proportionate share of deposited property
value and borrowing in Sapphire Star Trust (which owns Waterway Point).
Contents
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9
Distribution per Unit by Financial Reporting Periods (S cents)
5.996
6.089
6.136
6.091
3.000
3.100
3.053
2.862
3.020
3.137
3.000
2.913
3.060
4.372
FY2018
Total DPU:
12.015
FY2019
Total DPU:
12.070
1.610
FY20201
Total DPU:
9.042
Q1 | Q2 | Q3 | Q4 | 1H | 2H
FY20211
Total DPU:
12.085
FY20221
Total DPU:
12.227
1 FCT moved to half-yearly financial announcement and half-yearly distribution payment with effect from the second half of its financial year 2020.
The announcement was made on 13 May 2020. This follows the amendment of SGX’s listing manual (Rule 705(2)) that allows issuers to move to
half yearly reporting which took effect from 7 February 2020.
FCT and its subsidiaries ("FCT Group")
For the Financial Year ended 30 September
FY2018
FY2019
FY2020
FY2021
FY2022
Selected Income Statement and Distribution Information (S$‘000)
Gross Revenue
Net Property Income
Distributable Income
193,347
137,186
111,316
196,386
139,283
118,718
164,377
110,888
101,146
341,149
246,567
204,674
356,931
258,597
208,190
Selected Balance Sheet Information (S$ million)
Total Assets
Total Borrowings
Net Assets
Value of Portfolio Properties
Other Financial Indicators
Distribution per Unit (S cents)3
Net Asset Value per Unit (S$)3
Aggregate Leverage4
Interest Coverage (times)5
Market Capitalisation (S$ million)
2,840.4
813.0
1,933.8
2,749.0
12.015
2.08
28.6%
6.25
2,102.9
3,610.9
1,042.0
2,471.0
2,846.0
12.070
2.21
32.9%
5.74
3,058.6
3,883.4
1,255.0
2,538.3
2,749.5
5,898.8
1,815.0
3,918.8
5,506.51,2
5,941.4
1,815.0
3,964.1
5,516.01
9.042
2.27
35.9%
6.34
2,675.5
12.085
2.30
33.3%
4.77
3,857.3
12.227
2.33
33.0%
5.19
3,693.56
1 The investment properties are Causeway Point, Northpoint City North Wing (including Yishun 10 Retail Podium), Changi City Point, Tampines 1,
Tiong Bahru Plaza, Century Square, Hougang Mall, White Sands, and Central Plaza. The 40.00% interest in Waterway Point is held as investment
in joint venture.
2 The properties Tampines 1, Tiong Bahru Plaza, Century Square, Hougang Mall, White Sands and Central Plaza were included in FCT’s
investment property portfolio following the completion of the acquisition of the remaining 63.11% interest in AsiaRetail Fund Limited on 27
October 2020. The properties Bedok Point, Anchorpoint and YewTee Point were divested during FY2021.
Includes the distribution to be paid for the last quarter for FY2018 and FY2019. Includes the distribution to be paid for the second half for
FY2020, FY2021 and FY2022.
In accordance with the Property Funds Appendix, the aggregate leverage includes FCT’s 40.00% proportionate share of deposited property
value and borrowing in Sapphire Star Trust (which owns Waterway Point).
3
4
5 From FY2020, ratio is calculated by dividing the trailing 12 months earnings before interest, tax, depreciation and amortisation (excluding
effects of any fair value changes of derivatives and investment properties, and foreign exchange translation), by the trailing 12 months interest
expense and borrowing-related fees as defined in the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore.
As FCT Group has not issued any hybrid securities, adjusted Interest Coverage Ratio ("ICR") is identical to the ICR.
6 Based on total outstanding 1,702,057,564 issued units and FCT’s closing price of S$2.17 as at 30 September 2022.
ANNUAL REPORT 2022 10
FRASERS CENTREPOINT TRUST
U N I T P R I CE P E R FO R M A N CE
FCT’S UNIT PRICE AND TOTAL RETURN IN FY2022 WERE AFFECTED
BY INTEREST RATE HIKES
FCT unit price closed at S$2.17 on 30 September 2022. This represents a unit price decline of 4.4% and a total
return of 0.6% during the year under review. FCT unit price rode on the market rally in mid-March 2022 on hopes
of sustained economy re-opening, after the Singapore Government announced further relaxation of the COVID-19
safe management measures. Markets turned cautious after the United States Central Bank, the Federal Reserve
System (the “Fed”) increased the Federal Funds Target Rates (the “Fed Fund Rate”) in May 2022 by 50 basis points,
which was higher than the 25 basis points when it first raised the rate in March 2022. The key benchmark REIT
indices, namely the FTSE ST All-share Real Estate Investment Trust Index (the “FSTREI Index”) and the FTSE EPRA/
NAREIT Developed Asia Index (the “EGAS Index”) fell following the Fed’s rate hike announcement in May 2022.
FCT unit price fell in tandem, after it peaked at S$2.48 on 5 April 2022. Thereafter, the Fed announced consecutive
75 basis points rate hikes in June, July and September 2022, and this continued to exert downward pressure
on the REITs, with the respective REIT indices closing at their lowest points in end September 2022. The lowest
closing unit price for FCT was S$2.13 on 28 September 2022. Please refer to the chart below on FCT’s unit price
performance versus the FSTREI Index, FTSE Straits Times Index and the EGAS Index between 1 October 2021 and
30 September 2022.
1-Year FCT Unit price performance versus FTSE REIT Index, FTSE Straits Times index and EGAS Index
115%
110%
105%
100%
95%
90%
85%
80%
STI Index
FCT SP Equity
EGAS Index
FSTREI Index
Oct 21
Nov 21
Dec 21
Jan 22
Feb 22
Mar 22
Apr 22
May 22
Jun 22
Jul 22
Aug 22
Sep 22
FCT SP Equity | EGAS Index | STI Index | FSTREI Index
Source: Bloomberg
REVIEW OF FCT PAST UNIT PRICE AND TOTAL RETURN PERFORMANCE COMPARED
WITH THE BENCHMARK INDICES
The benchmark REIT indices generally underperformed the broader based FTSE Straits Times Index during the
year under review mainly due to the impact from the Fed rate hikes. Both the FTSE REIT index and the EGAS Index
registered negative total returns for the one-year period between 1 October 2021 and 30 September 2022, while
FCT achieved a slight positive return of 0.61%. Over the three-year period, FCT registered -10.26% in total return
compared with -12.22% for the EGAS Index and -7.51% for the FTSE REIT Index, due to the stronger unit price
performance in the 2019/2020 period before COVID-19 hit. Over a five-year period, FCT’s total return stood at
29.62%, which outperformed the two REIT benchmark indices and the FTSE Straits Times Index. FCT achieved a
total return of more than 400% since inception, and this is much higher than the 3 benchmark indices, as shown in
the following table:
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11
1 year
1 October 2021 to
30 September 2022
3 years
1 October 2019 to
30 September 2022
5 years
1 October 2017 to
30 September 2022
Since inception
5 July 2006 to
30 September 2022
Price
Change %
Total
Return %1
Price
Change %
Total
Return %1
Price
Change %
Total
Return %1
Price
Change %
Total
Return %1
FCT
FTSE REIT Index
FTSE Straits Times Index
EGAS
-4.41%
-13.25%
1.41%
-8.95%
0.61% -20.61% -10.26%
-7.51%
-8.33% -20.34%
5.59%
12.56%
0.33%
-5.08% -22.05% -12.22%
3.18%
-8.41%
-2.78%
-6.04%
29.62% 111.37% 411.50%
9.26% 175.38%
19.53%
29.82% 115.74%
17.54%
88.59%
13.72%
5.52%
Source: Bloomberg
1 Assumes the distributions are reinvested
FCT MONTHLY TRADING PERFORMANCE IN FY2022
FCT’s trading volume and the unit closing price for each month in FY2022 is shown in the chart below. The average
daily trading volume (the “ADTV”) in FY2022 was 3.05 million units (FY2021: 3.98 million units), which is about
23.3% lower compared with the same period in the previous year. The closing unit price at the end of each month
generally trended lower from April 2022, mainly due to the rising Fed Fund Rates discussed earlier.
Trading Performance in FY2022
2.41
2.27
2.31
2.26
2.26
2.44
2.45
98.58
2.34
2.29
2.33
66.08
53.79
53.98
63.77
61.18
65.36
62.24
63.08
53.94
2.26
61.93
2.17
68.31
October
2021
November
2021
December
2021
January
2022
February
2022
March
2022
April
2022
May
2022
June
2022
July
2022
August
2022
September
2022
Total volume traded in the month (millions of units) | Closing price as at the last trading day of the month (S$)
Source: Bloomberg
TRADING PERFORMANCE IN THE PAST FIVE FINANCIAL YEARS
The table below shows the historical trading information of FCT units in the past five financial years. The market
capitalisation of FCT stood at approximately S$3.693 billion as at 30 September 2022.
Opening price (S$)
Closing price (S$)1
Highest closing price (S$)
Lowest closing price (S$)
Total volume traded (million units)
Average daily trading volume (million units)
Market capitalisation (S$ billion)2
FY2018
FY2019
FY2020
FY2021
FY2022
2.11
2.27
2.36
2.12
271.2
1.085
2.103
2.27
2.74
2.85
2.14
478.5
1.916
3.059
2.73
2.39
3.04
1.64
820.8
3.283
2.675
2.39
2.27
2.64
2.08
1,006.5
3.978
3.857
2.26
2.17
2.48
2.13
769.2
3.053
3.693
Source: Bloomberg
1 Based on the closing price as at the last trading day for the respective financial year.
2 Based on the closing price and issued Units as at the last trading day for the respective financial year.
ANNUAL REPORT 2022 L E T T E R T O
U N I T H O L D E R S
THE COVID-19 PANDEMIC HAS TRANSFORMED MANY
ASPECTS OF THE WAY WE LIVE, WORK AND PLAY, WHICH
INCLUDE THE RISE OF OMNICHANNEL RETAILING AND
SHIFT TO HYBRID WORK ARRANGEMENT. WE BELIEVE
FCT’S PORTFOLIO OF WELL-LOCATED AND HIGH QUALITY
SUBURBAN RETAIL PROPERTIES IS WELL-POSITIONED TO
BENEFIT FROM THESE TRENDS.
Dear Unitholders,
We are pleased to present
Frasers Centrepoint Trust and
its subsidiaries’ (“FCT” and the
“FCT Group”) Annual Report
and Sustainability Report for the
financial year ended 30 September
2022 (“FY2022”).
Year of recovery but hampered by
geopolitical and trade tensions,
persistent inflation and rising
interest rates
As we transitioned progressively
in the past year to the endemic
phase of COVID-19, new challenges
continued to emerge. We saw the
war break out between Ukraine
and Russia; wild swings in energy
and commodity prices; aggressive
rate hikes by the U.S. Federal
Reserve; rising geopolitical and
trade tensions as well as persistent
inflation.
Contents
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13
These challenges cast a long
shadow over recovery of
businesses and an economy
still reeling from the COVID-19
pandemic. The capital markets
have also been severely impacted
as investors remained concerned
about the impact on business
earnings due to soaring operating
and borrowing costs, supply chain
disruptions, persistent inflation and
deteriorating growth outlook. The
Singapore REIT benchmark index,
the FTSE REIT Index, retreated
13.25% during FY2022 as yields
rose with rising interest rates.
Analysts have also lowered their
earnings forecasts for the REIT
sector, citing rising interest rates,
higher operating costs and slower
growth prospects as reasons
that would impact the financial
performance of REITs in the
near-term.
OPPORTUNITIES AHEAD
TO CUSHION THE IMPACT
Notwithstanding these challenges,
FCT has remained steadfast in
managing its asset portfolio to
deliver resilient performance and
steady returns to its Unitholders.
The Manager sees several
opportunities that can help cushion
the impact. These include rent
growth and higher ancillary income.
Data from CBRE1 shows prime
retail rents in both Orchard Road
and suburban malls are firming up.
This bodes well for retail landlords.
Other opportunities include asset
enhancement initiatives (“AEI”)
for value creation and higher
contributions from the acquisition
of the additional 10.00% stake in
Waterway Point to be completed
in FY2023. The Manager will stay
vigilant on cost movements such
as energy prices and contracted
service fees and will adopt
appropriate hedging strategies to
manage the risks.
FY2022 PERFORMANCE
REVIEW
Higher gross revenue, NPI and
DPU; healthy financial position
FCT closed FY2022 with higher
gross revenue, net property
income (“NPI”) and distribution
per unit (“DPU”). Gross revenue
rose 4.6% year-on-year to S$356.9
million and NPI was 4.9% higher at
S$258.6 million. The increase was
attributed to full year contribution
from the enlarged retail portfolio
following the completion of the ARF
Acquisition in FY2021; the absence
of rental rebates provided to tenants
in FY2021; and an increase in atrium
income with the lifting of restrictions
on atrium events in late March 2022.
The increase was partially offset
by the loss of contribution from
properties divested in FY2021. The
stronger financial performance
lifted distribution to Unitholders in
FY2022 by 1.7% to S$208.2 million
and DPU by 1.2% to a new high of
12.227 Singapore cents from 12.085
Singapore cents last year.
FCT’s financial position remained
healthy with aggregate leverage at
33.0% and interest coverage ratio
at 5.19 times. 70.5% of FCT’s total
borrowings are on fixed interest
rates and average cost of debt for
FY2022 stood at 2.5%.
The aggregate appraised value of
FCT’s investment portfolio remained
stable at approximately S$5.5
billion with no change in valuation
capitalisation rates used by the
independent valuers. Net asset
value per unit as at 30 September
2022 rose 1.3% to S$2.33 from
S$2.30 a year ago.
Broad-based operating
performance improvement
FCT achieved broad based
improvements in operating
performance with double-digit
percentage year-on-year increases
in shopper traffic and tenants’ sales,
positive rental reversion, higher
portfolio occupancy and lower retail
portfolio occupancy cost.
The retail property portfolio
registered improved committed
occupancy of 97.5% as at 30
September 2022, up 0.2%-points
year-on-year. The larger malls -
Causeway Point, Waterway Point
and Northpoint City North Wing
- continued to maintain strong
occupancies, with Causeway
Point and Northpoint City North
Wing registering 100% occupancy.
Tampines 1 and Causeway Point
registered the largest year-on-
year improvement in occupancy
of 2.0%-points and 1.4%-points
respectively. The rental portfolio
achieved better average rental
reversion of 1.5% (on incoming
versus outgoing basis) compared
with the previous year’s -0.6%.
Strong tenants’ sales and shopper
traffic growth; more than 70 new-
to-FCT brands introduced
The easing of the COVID-19 safe
management measures since end-
March 2022 helped lift shopper
traffic and tenants’ sales of the
retail portfolio. Shopper traffic
and tenants’ sales in FY2022 rose
12.4% and 11.3% year-on-year,
respectively. With higher tenants’
sales, occupancy cost for the retail
portfolio continued to improve to
16.2% in FY2022, down from 19.2%
in FY2020 and 17.5% in FY2021,
providing headroom for rental
growth.
1 CBRE Singapore Real Estate Market Update, Q3 2022.
ANNUAL REPORT 2022 14
FRASERS CENTREPOINT TRUST
L E T T E R TO U N I T H O L D E RS
We were able to attract more than
70 new-to-FCT brands to our malls
in FY2022. Some notable brands
include the first Don Don Donki
in the North at Northpoint City,
new-to-Singapore Café BomBom
from South Korea which opened
at Tampines 1 and Tiong Bahru
Bakery’s first outlet in a suburban
mall at Waterway Point. These new
tenants are testament to the strong
appeal and relevance our suburban
malls continue to have for both
retailers and shoppers.
Making progress in our
sustainability journey
Sustainability is a core component
of FCT’s business strategy. The
Manager works closely with FCT’s
Sponsor, Frasers Property Limited
(“Frasers Property” or the “Group”)
towards the Group’s goal to net-
zero carbon by 2050. We have
made notable progress in our
sustainability journey in FY2022.
We introduced Technology Risk
Management and Environmental
Risk Management in our
governance framework and aligned
our climate-rated disclosures with
the Task Force on Climate-Related
Financial Disclosures (”TCFD”)
recommendations.
For the second consecutive
year, we achieved a 5-Star rating
in the 2022 GRESB Real Estate
Assessment. We believe this is a
meaningful benchmark that enables
our stakeholders to compare FCT’s
performance with its global real
estate peers in the same sector.
FCT has also received an “A” rating
from the MSCI ESG Ratings in May
2022, improving from its previous
“BBB” rating, for advancing in its
management of financially relevant
ESG risks and opportunities.
We invite you to read the details in
the Sustainability Report which is an
integral part of this Annual Report.
Looking ahead - FCT is well-
positioned to ride the rising
trends
The COVID-19 pandemic has
transformed many aspects of the
way we live, work and play, which
include the rise of omnichannel
retailing and shift to hybrid work
arrangement. FCT is well-positioned
to benefit from these trends due to
its portfolio properties’ competitive
advantages of being near homes
and transportation nodes, focus
on diversified essential trade and
services, high quality amenities and
a well-established shopper loyalty
program.
The proximity of FCT’s malls to
homes offers shoppers flexibility
and convenience for their orders
through Frasers digital platforms to
be fulfilled. The rise in hybrid work
arrangement means more people
will work from homes and shop in
nearby malls. There is a growing
demand for prime spaces in large
and well-located suburban malls
as retailers and F&B operators
assess their store location strategy
to manage rising costs, manpower
constraints and changes in shopper
behaviour. We believe FCT’s
portfolio of well-located and high
quality suburban retail properties
is well-positioned to benefit from
these trends.
Looking ahead, the Manager
remains focused on the financial
and operational performance of
the FCT portfolio to optimise returns
to the Trust and its Unitholders.
It will also continue to look at AEI
of its properties for value creation
and acquisition opportunities.
The opportunities in the Sponsor’s
pipeline include Northpoint
City South Wing, which is owned
by Frasers Property and the
TCC Group.
ACKNOWLEDGEMENTS
We welcome Ms Soon Su Lin who
was appointed to the board on
1 March 2022 as Non-Executive
and Non-Independent Director.
Su Lin brings on board a wealth of
real estate industry experience in
retail property development and
investment, real estate consultancy,
leasing and management
leadership.
We thank Mr Christopher Tang, who
retired from the FCAM board as
Director at the end of 2021 after 16
years of illustrious service. He also
served as the first Chief Executive
Officer of FCAM from July 2006 to
March 2010. We thank Christopher
for his invaluable contributions and
wish him all the best in his future
endeavours.
In closing, we would like to express
appreciation to our board members
for their stewardship and advice,
and the management and staff for
their commitment and hard work.
We are grateful to our stakeholders,
including our Unitholders,
tenants and shoppers as well as
our business partners for their
confidence and support.
Cheong Choong Kong
Chairman
Richard Ng
Chief Executive Officer
Causeway Point,
Singapore
16
FRASERS CENTREPOINT TRUST
B OA R D O F D I R E CTO RS
Date of appointment as Director
18 May 2016
Length of service as Director (as at 30 September 2022)
6 years and 4 months
Board committees served on
• Audit, Risk and Compliance Committee (Member)
• Nominating and Remuneration Committee (Member)
Academic & Professional Qualifications
• Bachelor of Science, Adelaide University
• 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 in other companies (as at 30 September 2022)
Listed companies
• Nil
Dr Cheong Choong Kong, 81
Chairman, Non-Executive and
Independent Director
Listed REITs/Trusts
• Nil
Others
• Nil
Major appointments
(other than Directorships)
• Chairman, NUS Mind Science Centre Advisory Board
Past Directorships in listed companies held over the preceding 3 years
(from 01 October 2019 to 30 September 2022)
• Nil
Past major appointments
• Chairman, Oversea-Chinese Banking Corporation Limited
• Chairman, Singapore Broadcasting Corporation
• Chairman, NUS Council
• Deputy Chairman and CEO, Singapore Airlines Limited
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Date of appointment as Director
30 June 2017
Length of service as Director (as at 30 September 2022)
5 years and 3 months
Board committees served on
• Nominating and Remuneration Committee (Chairman)
• Audit, Risk and Compliance Committee (Member)
Academic & Professional Qualifications
• Bachelor of Commerce, University of Windsor, Canada
• Member, Singapore Institute of Directors
• Member, International Bankers Association of Japan
Present Directorships in other companies (as at 30 September 2022)
Listed companies
• Nil
Mr Ho Chai Seng, 62
Non-Executive and
Independent Director
Listed REITs/Trusts
• Nil
Others
• Nil
Major appointments
(other than Directorships)
• Executive Director and Country Manager, United Overseas Bank Ltd, Tokyo Branch
Past Directorships in listed companies held over the preceding 3 years
(from 01 October 2019 to 30 September 2022)
• Nil
Past major appointments
• Vice President, BHF-Bank, New York
• Assistant General Manager, BHF-Bank, Singapore
• General Manager, DBS Bank, London
• General Manager, United Overseas Bank Ltd. London
• Executive Director, United Overseas Bank Ltd. Singapore
ANNUAL REPORT 2022 18
FRASERS CENTREPOINT TRUST
B OA R D O F D I R E CTO RS
Major appointments
(other than Directorships)
• Nil
Past Directorships in listed companies
held over the preceding 3 years
(from 01 October 2019 to 30 September
2022)
• Nil
Past major appointments
• Deputy CEO of CapitaLand Mall Asia
Limited (formerly known as CapitaMalls
Asia Limited)
• CEO of the Manager of CapitaLand Mall
Trust (formerly known as CapitaMall
Trust)
Others
• Previously on the Board of Directors
of the managers of CapitaLand Mall
Trust (which is listed on the Singapore
Exchange Securities Trading Limited) and
CapitaLand Malaysia Mall Trust (which is
listed on Bursa Malaysia)
Major appointments
(other than Directorships)
• Chief Executive Officer, Frasers Property
Retail, Frasers Property (Singapore) Pte.
Ltd.
Past Directorships in listed companies
held over the preceding 3 years
(from 01 October 2019 to 30 September
2022)
• Frasers Commercial Asset Management
Ltd., Manager of Frasers Commercial
Trust1
Past major appointments
• Senior Executive Vice President, Head of
Retail and Commercial Division, Frasers
Property Limited
• Chief Executive Officer of Frasers
Commercial Asset Management Ltd,
manager of Frasers Commercial Trust
• Chief Executive Officer of BNP Paribas
Peregrine (Singapore) Ltd., investment
banking arm of BNP Paribas Singapore
Date of appointment as Director
9 February 2017
Length of service as Director
(as at 30 September 2022)
5 years and 7 months
Board committees served on
• Audit, Risk and Compliance Committee
(Member)
• Nominating and Remuneration
Committee (Member)
Academic & Professional Qualifications
• Bachelor of Science (Estate
Management) (Honours), National
University of Singapore
• Master of Real Estate, National University
of Singapore
Present Directorships in other
companies (as at 30 September 2022)
Listed companies
• Nil
Listed REITs/Trusts
• Nil
Others
• ALPS Pte. Ltd. (formerly known as
Agency for Healthcare Supply Chain Pte.
Ltd.)
• Frasers Hospitality International Pte. Ltd.
• Frasers Property (Singapore) Pte. Ltd.
Date of appointment as Director
3 January 2020
Length of service as Director
(as at 30 September 2022)
2 years and 9 months
Board committees served on
• Nil
Academic & Professional Qualifications
• Bachelor of Economics, Monash
University
• Bachelor of Laws, Monash University
• Fellow of CPA Australia
• Fellow of Chartered Accountant of
Singapore
Present Directorships in other
companies (as at 30 September 2022)
Listed companies
• Nil
Listed REITs/Trusts
• Nil
Others
• President, Real Estate Investment Trust
Association of Singapore (REITAS)
• Chairman, Audit, Risk and Governance
Committee, Dover Park Hospice
• Board Member, Singapore River One
Limited
Mr Ho Chee Hwee,
Simon, 61
Non-Executive and
Non-Independent Director
Mr Low Chee Wah, 57
Non-Executive and
Non-Independent Director
1 Frasers Commercial Trust has been merged with Frasers Logistics & Industrial Trust with effect from 15 April 2020, to form Frasers Logistics &
Commercial Trust.
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Date of appointment as Director
1 October 2019
Length of service as Director
(as at 30 September 2022)
3 years
Board committees served on
• Audit, Risk and Compliance Committee
(Chairperson)
• Nominating and Remuneration
Committee (Member)
Academic & Professional Qualifications
• Bachelor of Science (Estate
Management) (Honours), National
University of Singapore
• Master of Arts (Business Administration),
University of Georgia (Athens)/United
States of America
• Fellow, Royal Institute of Chartered
Surveyors
• Fellow, Singapore Institute of Surveyors &
Valuers
Present Directorships in other
companies (as at 30 September 2022)
Listed companies
• Nil
Major appointments
(other than Directorships)
• Global Governing Trustee, Urban Land
Institute, USA
• Executive Committee Member and
Chairperson of Nominations Committee,
Urban Land Institute Singapore Council,
Singapore
• Management Board Member, National
University of Singapore Institute of Real
Estate and Urban Studies, Singapore
• Council Member and Vice-Chairperson
of Professional Development Committee,
Council for Estate Agencies, Singapore
Past Directorships in listed companies
held over the preceding 3 years
(from 01 October 2019 to 30 September
2022)
• Nil
Past major appointments
• Chief Executive Officer, Edmund Tie &
Company (SEA) Pte. Ltd.
• Chief Operating Officer, DTZ Debenham
Tie Leung (SEA) Pte. Ltd. (now known as
Edmund Tie & Company (SEA) Pte. Ltd.)
• Chairperson, Urban Land Institute
Singapore Council, Singapore
Listed REITs/Trusts
• Nil
Others
• Edmund Tie Holdings Pte. Ltd.
• New Horizons Holdings Pte. Ltd.
• CPG Corporation Pte Ltd
• GLP REIT Management Pte. Ltd.
Date of appointment as Director
1 March 2022
Length of service as Director
(as at 30 September 2022)
7 months
Board committees served on
• Nil
Academic & Professional Qualifications
• Master in Business Administration,
National University of Singapore
• Bachelor of Science - Estate
Management (Honours), National
University of Singapore
Present Directorships in other
companies (as at 30 September 2022)
Listed companies
• Nil
Listed REITs/Trusts
• Nil
Others
• Nil
Major appointments
(other than Directorships)
• Chief Executive Officer of Frasers
Property Singapore
• Member of the Integrated Development
Council, Urban Land Institute, Singapore
Past Directorships in listed companies
held over the preceding 3 years
(from 01 October 2019 to 30 September
2022)
• Nil
Past major appointments
• Chief Executive Officer (Development) of
Frasers Property Holdings (Thailand) Co.,
Ltd.
• Chief Executive Officer (Development) of
TCC Assets (Thailand) Co., Ltd.
• Chief Executive Officer of Orchard Turn
Developments Pte. Ltd.
Ms Koh Choon Fah, 64
Non-Executive and
Independent Director
Ms Soon Su Lin, 62
Non-Executive and
Non-Independent Director
ANNUAL REPORT 2022 20
FRASERS CENTREPOINT TRUST
T RU S T M A N AG E M E N T T E A M
Richard is responsible for the overall business direction, investment strategies and
operations of FCT. He leads the FCAM management team to ensure that FCT’s finance,
investment, asset management, investor relations and other plans and initiatives are
executed successfully.
Richard has over 30 years of experience in the Singapore and regional property markets,
spanning the areas of marketing, investment, asset and REIT management. Prior to joining
Frasers Property, he was Executive Director, Asset Management, at PGIM (Singapore) Pte.
Ltd. where he oversaw the portfolio asset management comprising retail and commercial
properties in Singapore and Malaysia. Richard has held senior management appointments
during his 14 years at the CapitaLand Group, including 10 years at CapitaLand Mall Trust
(CMT) where he was part of the team that oversaw the initial public offering of CMT in 2002.
At CMT, Richard was the Head of Asset Management, responsible for overall performance
of CMT’s assets.
Richard holds a Bachelor of Science (Honours) degree in Estate Management and a Master
of Science degree in Real Estate, both from the National University of Singapore.
Audrey is responsible for the financial, taxation, treasury and compliance functions of FCT.
She has over 20 years of financial experience in locally-listed and multinational companies.
Prior to joining FCAM, she was Head of Finance (Frasers Property Retail) at Frasers
Property Limited. Prior to joining Frasers Property Limited, she held various positions
at CapitaLand Limited (including its subsidiaries) for more than 10 years. Audrey holds
a Bachelor’s degree of Business (Accountancy) from RMIT and is a Certified Practising
Accountant with CPA Australia.
Pauline is responsible for the management of FCT’s portfolio of retail assets in
Singapore. She has over 20 years of real estate experience. Prior to joining FCAM, she
was the Executive Director at PGIM Real Estate (“PGIM”) and was responsible for the
portfolio management of PGIM Real Estate AsiaRetail Fund and another private equity
co- investment which together own several malls in Singapore and Malaysia. Before
PGIM, Pauline was Vice-President, Investment Management of GIC Real Estate (GIC RE),
where she was responsible for investment and asset management in the office, retail
and residential sectors in various Asia Pacific markets and supported GIC RE senior
management in global portfolio reporting, asset strategy and planning. Prior to GIC RE, she
held various roles at DBS and Jones Lang LaSalle in Singapore and Hong Kong.
Pauline holds a Master of Business Administration degree from the University of Western
Australia and a Bachelor’s degree in Business Administration from the National University
of Singapore.
Mr Richard Ng
Chief Executive Officer
Ms Audrey Tan
Chief Financial Officer
Ms Pauline Lim
Head, Investment &
Asset Management
Contents
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Other Information
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Adrian is responsible for FCT's investment function. He joined the Frasers Property
Group in 2018. Prior to joining Frasers, he spent 12 years in various investment and asset
management roles for other established real estate developers including the CapitaLand
Group, Ascendas-Singbridge Group, and NTUC Income. He has extensive experience in
the acquisition, asset management and divestment of real estate assets across multiple
sectors including office, retail and logistics/business parks. In addition to his core market
experience in Singapore, he is also experienced in overseas markets including Australia,
Malaysia and India. Adrian has represented Singapore as a Trade Counsellor in Singapore’s
Embassy in Russia.
Adrian Tan Holds an Honours degree in Business Administration from the National
University of Singapore.
Fung Leng is responsible for FCT’s investor relations function. He has more than 15 years
of experience in the field of investor relations and is responsible for communications and
forging relations between FCT and its Unitholders, the investment community and the
media. He also provides market intelligence and research to the management team and
oversees sustainability reporting for FCT.
Fung Leng holds a Master of Science degree in Industrial and Systems Engineering and a
Bachelor’s degree in Mechanical Engineering (Honours), both from the National University
of Singapore.
Mr Adrian Tan
Head, Investment
Mr Chen Fung Leng
Vice President, Investor Relations
ANNUAL REPORT 2022 22
FRASERS CENTREPOINT TRUST
I N V ES TO R R E LAT I O N S
OPEN AND TRANSPARENT
COMMUNICATION WITH
UNITHOLDERS
Frasers Centrepoint Asset
Management Ltd., as Manager
of Frasers Centrepoint Trust, is
committed to maintaining open and
transparent communication with its
Unitholders, media and investors.
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
The AGM and EGM are important
communication platforms between
the board of directors, the
management of FCAM and the
Unitholders. FCT convened its 13th
AGM on 18 January 2022, by way of
electronic means pursuant to the
COVID-19 (Temporary Measures)
(Alternative Arrangements for
Meetings for Companies, Variable
Capital Companies, Business Trusts,
Unit Trusts and Debenture Holders)
Order 2020. All resolutions tabled at
the AGM were duly passed.
Unitholders who wished to
attend the AGM were requested
to pre-register electronically to
enable the Manager to verify their
status as Unitholders. Following
the verification, authenticated
Unitholders will each receive an
email, which will contain a user
ID and password details, as well
as instructions on how to access
the live audio-visual webcast and
live audio-only stream of the AGM
proceedings.
Unitholders were invited to submit
questions related to the resolutions
to be tabled for approval at the
AGM in advance, to the Chairman
of the AGM. The responses to the
substantial and relevant questions
received from Unitholders before
the deadline on 9 January 2022
were published on 12 January
2022 (approximately one week
prior to the AGM) on FCT’s website
and SGXNET. Unitholders have
ample time and opportunity to
consider the Manager’s responses
before submitting their proxy
forms. Questions which were
submitted after 9 January 2022 were
consolidated and addressed “live”
at the AGM.
All resolutions were duly passed,
and the results were announced on
SGXNET and FCT’s website on the
same day of the AGM. The minutes
of the AGM were also published on
SGXNET and FCT’s website on 17
February 2022.
PROACTIVE OUTREACH TO
INVESTORS
FCAM proactively engages investors
and research analysts through
various channels to extend its
outreach and to raise the profile of
FCT among investors.
FCT participated in multiple major
investor conferences, investor
outreach events and post-results
meetings organised by the banks
and securities broking firms. While
most of the events were organised
on electronic platforms such as
Zoom or Microsoft Teams, the
FCAM management team also
participated in physical meetings
after the relevant restrictions were
lifted by the authorities.
During FY2022, the FCAM
management team met a total
of 435 investors during investor
conferences, post-results analysts’
briefing calls and post-results
investors calls. Of these 435
investors, 124 or 28.5% were new
investors1. The management team
also reached out to retail investors
through the retail investors webinar
hosted by Tiger Brokers, which
was attended by more than 1,800
participants.
1
Includes new-to-FCT and investors whom FCAM has not met or engaged in the preceding 24 months, including through virtual meetings.
Contents
Overview
Business
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Asset
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Sustainability
Corporate
Governance
Financial &
Other Information
23
The table below shows the list of investor relations events and activities during FY2022:
Timeframe
1 October -
31 December 2021
1 January -
31 March 2022
1 April -
30 June 2022
1 July -
30 September 2022
Key Investor Relations Events
• FCT 2H FY2021 post financial results analysts’ briefing call (27 October 2021)
• FCT 2H FY2021 post financial results investors’ call hosted by UBS (27 October 2021)
• Debt Investor Day (hosted by DBS) (10 November 2021)
• Frasers Bangkok Day (18 November 2021)
• UBS Global Real Estate CEO/CFO Conference 2021 (1-2 December 2021)
• FCT 1Q FY2022 post business updates analysts’ briefing call (26 January 2022)
• FCT 1Q FY2022 post business updates investors’ call hosted by JP Morgan (26 January 2022)
• FCT Global Debt Investors Call (7 February 2022)
• BofA Securities Retail Panel: Malls in a Post Covid World (8 March 2022)
• 18th Citic CLSA ASEAN Forum 2022 (9 March 2022)
• Tiger Brokers Retail Investor Webinar (15 March 2022)
• FCT 1H FY2022 post results analysts’ briefing call (27 April 2022)
• FCT 1H FY2022 post results investors’ call hosted by DBS (27 April 2022)
• BofA 2022 APAC Financial, Real Estate Equity and Credit Conference (11 May 2022)
• BNP Singapore Property Days (18 May 2022)
• Presentation and mall tour for Korean Institutional investors (29 June 2022)
• FCT 3Q FY2022 post business updates analysts’ briefing call (27 July 2022)
• FCT 3Q FY2022 post business updates investors’ call hosted by Daiwa (27 July 2022)
• Citi-SGX-REITAS/Sponsor Forum (24-25 August 2022)
• CITIC/CLSA Flagship Investors’ Forum (14 September 2022)
Subsequent event:
The 2H FY2022 and full year results were announced on 26 October 2022.
ACCOLADE
5-Star rating in the 2022 GRESB Real Estate
Assessment
FCT maintained its top 5-Star rating in the 2022 GRESB
Real Estate Assessment with a total score of 92 points
(2021: 92). It ranked second in the Asia Retail Centres
(Listed) category.
Coverage by equity research houses
As at 12 November 2022, there were 20 equity research
firms which provided equity research coverage on FCT.
The research firms which cover FCT (in alphabetical
order) are:
BofA Securities
1.
2. CGS-CIMB Securities (Singapore)
3. Citi Research
4. CLSA
5. Credit Suisse
6. Daiwa Capital Markets
7. DBS Bank
8. Goldman Sachs (Singapore)
9. HSBC
10. J.P. Morgan Securities Singapore
11. Macquarie Research
12. Maybank Research
13. Morgan Stanley Asia (Singapore)
14. Morningstar Equity Research
15. OCBC
16. Phillip Securities Research (Singapore)
17. RHB
18. Soochow CSSD Capital Markets
19. UBS Securities
20. UOB Kay Hian
ANNUAL REPORT 2022 24
FRASERS CENTREPOINT TRUST
I N V ES TO R R E LAT I O N S
CREDIT RATINGS BY CREDIT RATING AGENCIES
Credit rating agencies
Long term issue rating
Outlook
Rating date
Last review date
Moody’s Investors Service
S&P Global Ratings
Baa2
BBB
Stable
Stable
21 November 2022
21 November 2022
13 April 2020
7 November 2022
ESG RATINGS AND SCORES BY AGENCIES
As of 26 May 2022, FCT received an MSCI ESG Rating of A for ESG Rating issued by MSCI ESG Ratings.
Agency
ESG Credit Impact Score
Date
MSCI ESG Ratings
• Rating action date: 26 May 2022
• Last report update: 26 July 2022
ENQUIRIES
UNIT REGISTRAR
For general enquiries on FCT, please contact:
Mr Chen Fung Leng
Vice President, Investor Relations
Frasers Centrepoint Asset Management Ltd.
438 Alexandra Road, #21-00 Alexandra Point
Singapore 119958
Phone: (65) 6276 4882
Fax: (65) 6272 8776
Email: ir@fraserscentrepointtrust.com
Boardroom Corporate & Advisory Services Pte Ltd
1 Harbourfront Avenue
Keppel Bay Tower, #14-07
Singapore 098632
Phone: (65) 6536 5355
Fax: (65) 6536 1360
Website: www.boardroomlimited.com
Northpoint City
North Wing,
Singapore
26
FRASERS CENTREPOINT TRUST
O P E R AT I O N S R E V I E W
S I N G A P O R E
Causeway Point,
Singapore
Contents
Overview
Business
Review
Asset
Portfolio
Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
27
LEASE RENEWALS AND RENTAL
REVERSIONS
A total of 394 leases in the Retail Portfolio and five
leases at Central Plaza were renewed or newly leased
in FY2022. The retail leases accounted for 565,689
square feet or 26.1% of Retail Portfolio net lettable area1
(‘‘NLA”). The NLA of the five renewed leases at Central
Plaza in FY2022 represented 14.7% of its total NLA.
Positive rental reversion for Retail Portfolio in FY2022
The average rental reversion for the Retail Portfolio in
FY2022 was positive at 1.5%, based on the variance
between the rent in the first year of the incoming lease
and the rent in the final year of the outgoing lease
(“incoming versus outgoing”). The rental reversion
was 4.2%, based on the variance between the average
rent of the incoming lease and the average rent of the
outgoing lease (“average-to-average”). The average rent
includes the step-up rents during the respective lease
tenure, which the incoming versus outgoing method
does not.
Leasing demand for suburban retail malls picked up
in FY2022 as business sentiments and confidence
has improved with the normalisation of economy and
reopening of borders. However, retailers and operators
remained cautious with their renewals and new store
expansions amidst manpower constraints and rising
cost of goods.
All malls except for Changi City Point and Century
Square recorded positive reversion between 1.2%
and 2.6% due to their strategic locations in populous
residential catchment with direct connectivity to public
transport including buses and MRT trains. Changi
City Point’s catchment includes nearby residents,
workers from Changi Business Park and visitors to
Singapore Expo. Its recovery was diluted by hybrid
work arrangement and slow resumption of large-scale
exposition events. On the other hand, Century Square
has been affected by dampened occupancy with the
pre-termination of an anchor tenant.
1
Including Waterway Point, which FCT holds 40.00% interest.
ANNUAL REPORT 2022 28
FRASERS CENTREPOINT TRUST
Summary of Lease Renewals And Rental Reversion in FY2022
(Excluding newly created and reconfigured area)
Property
Number of Renewals /
New Leases
Causeway Point
Waterway Point
Tampines 1
Northpoint City North Wing3
Tiong Bahru Plaza
Century Square
Changi City Point
Hougang Mall
White Sands
Retail Portfolio
Central Plaza
58
85
20
41
59
27
28
27
49
394
5
Area
(sq ft)
171,312
132,294
33,491
43,103
59,360
34,913
27,794
16,112
47,310
565,689
21,098
As % of leased area
of property (Incoming vs outgoing)
(Average-to-average)
FY2022 rental reversion
40.8%
35.6%
12.5%
20.7%
27.6%
17.2%
13.6%
10.7%
36.8%
26.1%
14.7%
1.6%
1.9%
1.5%
1.3%
2.4%
(1.1%)
(3.7%)
1.2%
2.6%
1.5%
2.4%
4.4%
4.9%
3.7%
4.4%
4.4%
2.2%
2.6%
2.6%
4.2%
4.2%
2.4%
LEASE EXPIRY PROFILE
Well-spread lease expiry profile
The portfolio lease expiry from FY2023 to FY2027 and
beyond, and the lease expiry by property in FY2023 are
presented in tables below. The leases have a typical
lease duration of 3 years although certain key or anchor
tenancies may be of longer tenure.
FCT has a well-spread portfolio lease expiry profile
with low concentration risk. The leases expiring over
the next two years in FY2023 and FY2024 account for
27.6% and 35.0% of FCT’s Gross Rental Income (“GRI”),
respectively. As at 30 September 2022, the weighted
average lease expiry2 (“WALE”) of the Retail Portfolio
stood at 1.87 years (FY2021: 1.64 years) by NLA and
1.78 years (FY2021: 1.64 years) by GRI.
The WALE (by GRI) of the new leases entered during
FY2022, based on duration to lease expiry as at 30
September 2022 was 2.55 years (FY2021: 2.50 years).
The weighted average lease expiry (by NLA) of these
new leases is 2.66 years (FY2021: 2.45 years). These
new leases account for 33.7% (FY2021: 30.7%) of the
total GRI of the Retail Portfolio as at 30 September
2022.
The aggregate NLA of the leases in the Retail Portfolio,
including that of Waterway Point, due for renewal in
FY2023 is 581,872 sq ft.
Retail Portfolio Lease Expiry as at 30 September 2022
Lease expiry
as at 30 September 2022
FY2023
FY2024
FY2025
FY2026
Number of expiring leases
NLA of expiring leases (sq ft)
Expiries as % of total leased area
Expiries as % of GRI
463
581,872
27.5%
27.6%
501
717,877
33.9%
35.0%
421
455,736
21.6%
25.2%
82
203,433
9.6%
7.4%
FY2027 and
beyond
19
155,509
7.4%
4.8%
Total
1,486
2,114,427
100.0%
100.0%
Calculation based on committed leases as at 30 September 2022; vacant floor area and Community and Sports Facilities Scheme (CSFS) leases are
excluded. Excludes Central Plaza (office).
2 Computation of WALE is as follows:
WALE (by NLA) = Sum of (remaining lease tenure x NLA of individual leases)/total leased area.
WALE (by GRI) = Sum of (remaining lease tenure x GRI of individual leases)/total GRI.
Remaining lease tenure = time period between reporting date and the lease expiry date.
Includes Yishun 10 Retail Podium.
3
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29
FY2023 Lease Expiry as at 30 September 2022
FY2023 Lease Expiry
(As at 30 September 2022)
Number of
expiring leases
NLA of expiring leases
(sq ft)
as % of
leased area of property
as % of
total GRI of property
Causeway Point
Waterway Point
Tampines 1
Northpoint City North Wing3
Tiong Bahru Plaza
Century Square
Changi City Point
Hougang Mall
White Sands
Retail Portfolio
Central Plaza
FCT Portfolio
76
51
76
57
37
39
53
35
39
463
7
470
106,945
58,356
93,054
50,453
74,557
57,037
65,160
33,214
43,096
581,872
29,319
611,191
25.5%
15.9%
35.0%
24.2%
35.1%
32.4%
33.9%
22.5%
34.8%
27.5%
22.9%
27.3%
30.0%
19.8%
32.7%
30.3%
28.9%
26.3%
32.8%
21.8%
29.1%
27.6%
27.8%
27.6%
Calculation based on committed leases as at 30 September 2022; vacant floor area and Community and Sports Facilities Scheme (CSFS) leases are
excluded.
PORTFOLIO TENANTS’ SALES, SHOPPER
TRAFFIC AND OCCUPANCY COST
Tenants’ sales improved 11.3% year-on-year
Retail Portfolio’s total tenants’ sales in FY2022 stood at
S$2,313.9 million, which is approximately 11.3% higher
than S$2,078.3 million achieved in FY2021. Brick-
and-mortar retail and restaurants once again showed
resilience and went on their recovery trajectory as soon
as Covid regulations relaxed to allow 5 pax dine-in in
November 2021. The significant recovery over 2022
is a testament towards ongoing consumer demand for
in-store experiences.
Performance recovery among the trade categories
was uneven and polarised
The top five trade categories which constituted 79%
of Retail Portfolio GRI traded well. F&B, the largest
trade category of Retail Portfolio registered stronger
sales year-on-year in FY2022, in particular sub-trades
Restaurants, Cafes and Food Courts with the removal
of group size limit and safe distancing measures
between seats.
Some of the other trade categories which benefitted
from the opening of economy included Beauty &
Healthcare, Fashion & Accessories and Leisure &
Entertainment. This was driven by higher demand
for cosmetics, bags and footwear as people returned
to work.
Retail Portfolio Tenants’ Sales Year-on-Year Comparison
Retail Portfolio tenants’ sales in S$ Millions
▲5.8%
▲13.4%
▲1.2%
▼1.5%
▼4.9%
▲5.6%
▲12.5%
▲28.0%
▲31.8%
▲21.8%
▲17.8%
▲12.8%
s
n
o
i
l
l
i
M
250
200
150
100
50
0
October
November December
January
February
March
April
May
June
July
August
September
FY2022 | FY2021
ANNUAL REPORT 2022 30
FRASERS CENTREPOINT TRUST
As tenants’ sales saw a continued improvement
in FY2022 with the significant scale back of Covid
restrictions, the average occupancy cost of the Retail
Portfolio moderated to 16.2% which is within a healthy
and sustainable range for suburban retail malls.
Occupancy cost refers to the ratio of gross rental
(including turnover rent) paid by the tenants to the
tenant’s sales turnover (excluding Goods & Services
Tax). The average occupancy cost of Retail Portfolio
for FY2022 and the preceding 5 financial years are
presented in the chart below:
Retail Portfolio Average Occupancy Cost
19.2%
16.6%
16.6%
17.0%
17.5%
16.2%
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
(Affected
by Circuit
Breaker)
LEASES WITH GROSS TURNOVER RENT
AND STEP-UP CLAUSES
Approximately 91.8% (FY2021: 93.2%) of our leases
include step-up rent clauses that provide for annual
rental increment of between 1% and 2% over the lease
term. 92.3% (FY2021: 90.4%) of the committed leases
include Gross Turnover rent (“GTO”) clauses, which the
tenants would typically pay between 0.5% and 1% of
their sales as part of the gross rent.
PORTFOLIO OCCUPANCY
The portfolio committed occupancy stood at 97.5% as
at 30 September 2022, up 0.2%-points year-on-year.
All the malls generally show a year-on-year improvement
in occupancy. The improvement in portfolio occupancy
was in tandem with the pickup in leasing activities as
Singapore re-opens and embarks on its journey towards
endemicity, although retailers generally remain cautious
due to the prevailing labor crunch and rising cost of
goods.
The occupancy by property is tabulated in the table
below:
Committed Occupancy by Property
Causeway Point
Waterway Point
Tampines 1
Northpoint City North Wing3
Tiong Bahru Plaza
Century Square
Changi City Point
Hougang Mall
White Sands
Retail Portfolio
Central Plaza
As at
30 September 2022
As at
30 June 2022
As at
30 September 2021
100.0%
99.0%
99.1%
100.0%
99.0%
86.8%
93.7%
98.4%
96.4%
97.5%
88.9%
99.3%
100.0%
97.8%
100.0%
98.2%
83.0%
96.1%
99.4%
95.3%
97.1%
77.0%
98.6%
98.4%
97.1%
100.0%
98.3%
91.8%
94.7%
97.8%
95.4%
97.3%
91.8%
Committed occupancy includes occupied units and vacant units with committed leases.
3
Includes Yishun 10 Retail Podium.
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SHOPPER TRAFFIC
The Retail Portfolio traffic had seen steady recovery as Covid-19 infection growth rate dwindled in late 2021.
Restrictions had significantly scaled back, with the removal of group size limits and workplace capacities limits, the
lowering level of Disease Outbreak Response System Condition (DORSCON) level from orange to yellow, removal
of SafeEntry and TraceTogether requirement at malls, as well as the removal of mandatory mask rules except in
healthcare facilities and on public transport. Mall entrances are all reopened, allowing the unvaccinated to visit
the malls. These mark a significant milestone towards normalisation. The aggregate shopper traffic of the Retail
Portfolio has improved by 12.4% from 136.1 million in FY2021 to 153.0 million in FY2022, with a faster recovery
amongst the dominant malls.
Retail Portfolio Shopper Traffic Year-On-Year Comparison
▼11.2%
▼8.7%
▼4.1%
▼1.7%
▼3.6%
▼8.5%
▲44.7%
▲48.9%
▲35.7%
▲35.4%
▲40.4%
▲4.4%
s
n
o
i
l
l
i
M
16
14
12
10
8
6
4
2
0
October
November December
January
February
March
April
May
June
July
August
September
FY2022 | FY2021
Shopper Traffic by Property
(million)
FY2022
(1 October 2021 - 30 September 2022)
FY2021
(1 October 2020 - 30 September 2021)
Increase/
(Decrease)
Causeway Point
Waterway Point
Tampines 1
Northpoint City North Wing3
Tiong Bahru Plaza
Century Square
Changi City Point
Hougang Mall
White Sands
Note: Total may not add up due to rounding differences.
21.4
19.3
15.9
47.6
13.4
10.2
7.5
9.4
8.4
18.8
15.2
14.4
43.0
11.6
10.2
6.4
8.9
7.5
13.8%
27.0%
10.4%
10.7%
15.5%
0.0%
17.2%
5.6%
12.0%
3
Includes Yishun 10 Retail Podium.
ANNUAL REPORT 2022 32
FRASERS CENTREPOINT TRUST
Waterway Point, Singapore
RETAIL PORTFOLIO TRADE CATEGORIES
F&B is the largest trade category accounting for 30.2% (FY2021: 29.1%) of total NLA and 38.0% (FY2021: 37.8%)
of total GRI. The second and the third largest trade categories by GRI are Beauty & Healthcare at 15.0% (FY2021:
14.6%) and Fashion & Accessories at 11.5% (FY2021: 12.1%).
Trade Category
(in descending order of FY2022 GRI)
Food & Beverage
Beauty & Healthcare
Fashion & Accessories
Sundry & Services
Supermarket & Grocers
Homeware & Furnishing
Information & Technology
Leisure & Entertainment
Electrical & Electronics
Books, Music, Arts & Craft, Hobbies
Sports Apparel & Equipment
Jewellery & Watches
Education
Department Store
Vacant
Retail Portfolio
Note: Total may not add up due to rounding differences.
As % of total NLA
As % of total GRI
30.2%
11.8%
11.6%
6.0%
10.0%
3.9%
2.6%
5.8%
3.1%
3.4%
2.9%
0.8%
2.6%
2.8%
2.5%
100.0%
38.0%
15.0%
11.5%
8.6%
6.3%
2.9%
2.8%
2.5%
2.4%
2.3%
2.2%
2.1%
1.8%
1.6%
0.0%
100.0%
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33
Tampines 1, Singapore
Northpoint City, Singapore
TOP 10 TENANTS BY GRI
The top ten tenants collectively accounted for 18.4% (FY2021: 19.5%) of the total GRI as at 30 September 2022. Our
largest tenant NTUC FairPrice, the operator of FairPrice supermarkets and Unity Pharmacy in FCT malls, accounted
for 4.1% (FY2021: 3.3%) of the portfolio GRI.
Top 10 Tenants by GRI as at 30 September 2022
Tenants
Trade Category
1 NTUC FairPrice1
2 Breadtalk Group2
3 Kopitiam3
4 Dairy Farm Group4
5 Metro (Private) Limited5
6 Hanbaobao Pte Ltd6
7 Courts (Singapore) Pte. Ltd.
8 Oversea-Chinese Banking Corporation Limited
9 United Overseas Bank Limited
10 Koufu7
Total for Top 10
Supermarket & Grocers, Beauty & Healthcare
Food & Beverage
Food & Beverage
Supermarket & Grocers, Beauty & Healthcare,
Sundry & Services
Department Store, Beauty & Healthcare
Food & Beverage
Electrical & Electronics
Sundry & Services
Sundry & Services
Food & Beverage
As % of
total NLA
As % of
total GRI
6.1%
2.0%
2.2%
1.5%
3.0%
1.1%
1.7%
0.8%
0.7%
1.1%
20.2%
4.1%
2.3%
1.9%
1.8%
1.7%
1.6%
1.4%
1.3%
1.2%
1.1%
18.4%
Includes FairPrice, FairPrice Finest and Unity Pharmacy.
Includes Food Republic, Breadtalk, Toast Box, The Food Market and Din Tai Fung.
Note: Total may not add up due to rounding differences.
1
2
3 Operator of Kopitiam food courts, includes Kopitiam, Cantine and Food Tempo.
4
5
6 Operator of Mcdonald’s.
7 Operator of Cookhouse by Koufu.
Includes Cold Storage supermarkets, Guardian Pharmacy and 7-Eleven.
Includes Metro Department Store and Clinique Service Centre.
ANNUAL REPORT 2022 34
FRASERS CENTREPOINT TRUST
F I N A N CI A L R E V I E W
S I N G A P O R E
Changi City Point,
Singapore
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35
INVESTMENT PROPERTY PORTFOLIO
The investment property portfolio of FCT and its
subsidiaries (“FCT Group”) comprises Causeway Point,
Northpoint City North Wing (including Yishun 10 Retail
Podium), Changi City Point, Tampines 1, Tiong Bahru
Plaza, Century Square, Hougang Mall, White Sands
and Central Plaza. The properties are strategically
located in suburban regions of Singapore and have a
diversified tenant base covering a wide variety of trade
categories. Three properties - Bedok Point, Anchorpoint
and YewTee Point, which were previously part of
FCT’s investment property portfolio, were divested on
9 November 2020, 22 March 2021 and 28 May 2021,
respectively.
INVESTMENTS HELD IN ASSOCIATE AND
JOINT VENTURE
Sapphire Star Trust
FCT owns a 40.00% interest in the ownership and voting
rights in a joint venture, Sapphire Star Trust (“SST”),
a private trust that owns Waterway Point, a suburban
shopping mall located in Punggol. FCT jointly controls
the venture with other partners under the contractual
agreement and requires unanimous consent for all
major decisions over the relevant activities.
On 12 September 2022, FCT entered into a conditional
sale and purchase agreement with Sekisui House, Ltd.
(the “Vendor”) to acquire 10.00% of the total issued
units of SST, comprising 500,001 ordinary units and
56,904,785 redeemable preference units in SST from
the Vendor; and a conditional share sale and purchase
agreement with the Vendor to acquire 10.00% of the
issued share capital of FC Retail Trustee Pte. Ltd., which
is the trustee-manager of SST, from the Vendor. Upon
the completion in FY2023, the FCT’s interest in SST will
increase from 40.00% to 50.00%.
Hektar Real Estate Investment Trust
FCT holds 30.53% of the units in Hektar Real Estate
Investment Trust (“H-REIT”), an associate of FCT. H-REIT
is a retail-focused REIT in Malaysia listed on the Main
Market of Bursa Malaysia Securities Berhad. Its property
portfolio comprises Subang Parade (Selangor), Mahkota
Parade (Melaka), Wetex Parade (Johor), Central Square
(Kedah), Kulim Central (Kedah) and Segamat Central
(Johor).
ANNUAL REPORT 2022
36
FRASERS CENTREPOINT TRUST
FINANCIAL PERFORMANCE OF INVESTMENT PROPERTY PORTFOLIO
The tables presented below show the gross revenue, property expenses and net property income for FCT Group’s
investment property portfolio for the Financial Year ended 30 September 2022 (“FY2022”) and Financial Year ended
30 September 2021 (“FY2021”).
FY2022
1 October 2021 - 30 September 2022
FY2021
1 October 2020 - 30 September 2021
Increase /
(Decrease)
Gross Revenue S$’000
Causeway Point
Northpoint City North Wing*
Changi City Point
Tampines 1**
Tiong Bahru Plaza**
Century Square**
Hougang Mall**
White Sands**
Central Plaza**
Other investment properties***
Total
Property Expenses S$’000
Causeway Point
Northpoint City North Wing*
Changi City Point
Tampines 1**
Tiong Bahru Plaza**
Century Square**
Hougang Mall**
White Sands**
Central Plaza**
Other investment properties***
Total
Net Property Income S$’000
Causeway Point
Northpoint City North Wing*
Changi City Point
Tampines 1**
Tiong Bahru Plaza**
Century Square**
Hougang Mall**
White Sands**
Central Plaza**
Other investment properties***
Total
89,007
54,847
23,935
47,622
41,358
31,456
30,509
28,769
9,414
14
356,931
20,560
13,956
9,365
13,206
10,345
9,609
9,368
8,524
3,593
(192)
98,334
68,447
40,891
14,570
34,416
31,013
21,847
21,141
20,245
5,821
206
258,597
82,583
50,837
22,393
41,464
36,268
30,951
26,639
25,448
10,898
13,668
341,149
21,678
13,094
8,958
11,668
9,187
6,591
8,384
7,572
3,348
4,102
94,582
60,905
37,743
13,435
29,796
27,081
24,360
18,255
17,876
7,550
9,566
246,567
7.8%
7.9%
6.9%
14.9%
14.0%
1.6%
14.5%
13.1%
(13.6%)
(99.9%)
4.6%
(5.2%)
6.6%
4.5%
13.2%
12.6%
45.8%
11.7%
12.6%
7.3%
N.M.
4.0%
12.4%
8.3%
8.4%
15.5%
14.5%
(10.3%)
15.8%
13.3%
(22.9%)
(97.8%)
4.9%
Includes Yishun 10 Retail Podium.
*
** These properties were included in the Group’s portfolio following the ARF Acquisition on 27 October 2020.
*** Other investment properties comprise Bedok Point (until its divestment on 9 November 2020), Anchorpoint (until its divestment on 22 March
2021), and YewTee Point (until its divestment on 28 May 2021). For FY2022, the amount mainly relates to adjustment after the divestment of the
properties, i.e. Bedok Mall, Anchorpoint and YewTee Point.
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Total return included:
▶ Gain from fair valuation of
derivatives of S$0.5 million
was S$2.4 million or 82.1%
lower than FY2021 mainly due
to absence of realisation of
hedging reserve and lower
unrealised gain upon the expiry
of the interest rate swaps.
▶ Share of results of associates’
loss of S$1.1 million was S$0.3
million or 20.9% lower than
FY2021 mainly due to better
financial performance from
H-REIT in FY2022, partially
offset by the absence of
contribution from ARF, upon the
reclassification of investment
in ARF from “investment in
associates” to “investment
in subsidiaries” following the
acquisition of remaining 63.11%
of the total issued share capital
of ARF on 27 October 2020.
▶ On 24 December 2021 and 29
December 2021, H-REIT issued
6,300,000 and 3,000,000 new
units respectively in 2 tranches
arising from a private placement
exercise announced on 15
November 2021. Each unit was
priced at RM0.455.
▶ Following the private placement,
FCT Group’s interest in H-REIT
decreased from 31.15% to
30.53%. Arising from the dilution
of interest in H-REIT, FCT Group
recognised a loss of S$1.1
million, of which a loss of S$0.4
million arose from the realisation
of translation reserve.
▶ Share of results of joint ventures
for FY2022 of S$24.6 million was
S$7.7 million or 45.7% higher
than FY2021 due to better SST’s
results and recognition of SST’s
fair value gain on investment
property of S$4.3 million in
FY2022.
▶ In FY2022, FCT Group
recognised a net change in fair
value of investment properties of
S$2.7 million.
▶ No provision has been made
for tax at the Trust level as well
as for certain subsidiaries as
it is assumed that 100% of
the taxable income available
for distribution to unitholders
in the next financial year will
be distributed. The Tax Ruling
grants tax transparency to FCT,
Tiong Bahru Plaza Trust 1, White
Sands Trust 1, Hougang Mall
Trust 1, Tampines 1 Trust 1,
Century Square Trust 1, Century
Square Trust 2 and Central Plaza
Trust 1 on their taxable income
that is distributed to unitholders
such that the aforementioned
entities would not be taxed
on such taxable income. FCT
Group’s tax credit of S$6.1
million in FY2022 mainly arises
from the reversal of deferred
tax relating to Century Square
and is partially offset by the tax
expenses of Century Square
prior to the establishment of
the limited liability partnership
structure.
PERFORMANCE
COMPARISON BETWEEN
FY2022 AND FY2021
Gross revenue for FY2022 was
S$356.9 million, an increase of
S$15.8 million or 4.6% from FY2021.
The increase was mainly due to
the full year contribution from the
enlarged retail portfolio following
the ARF acquisition on 27 October
2020, absence of rental rebates
provided to the tenants, higher
gross turnover rental income
due to higher tenant’s sales as
well as increase in atrium income
with the resumption of atrium
events with effect from 29 March
2022. It was partially offset by the
loss of gross revenue from the
divested properties – Bedok Point,
Anchorpoint and YewTee Point.
Property expenses for FY2022 was
S$98.3 million, an increase of S$3.8
million or 4.0% from FY2021. The
increase was mainly due to the full
year contribution from the enlarged
retail portfolio, higher marketing
expenses and more ad-hoc
maintenance works carried out. It
was partially offset by the absence
of property expenses from the
divested properties – Bedok Point,
Anchorpoint and YewTee Point.
Net property income for FY2022
was therefore higher at S$258.6
million, an increase of S$12.0
million or 4.9% from FY2021.
Net non-property expenses for
FY2022 of S$83.0 million was S$2.2
million or 2.8% higher than FY2021
mainly due to higher finance costs
arising from the rising interest
rate environment and absence of
interest income from joint venture
following the conversion of the loan
to joint venture to Redeemable
Preference Units.
ANNUAL REPORT 2022
38
FRASERS CENTREPOINT TRUST
DISTRIBUTION
Distribution to Unitholders for FY2022 was S$208.2 million, which was S$3.5 million or 1.7% higher compared to
FY2021.
The breakdown and comparison of the DPU for FY2022 and FY2021 are presented below:
FY2022
1 October 2021 - 30 September 2022
FY2021
1 October 2020 - 30 September 2021
Increase /
(Decrease)
Distribution per Unit (S cents)
First half (1 October – 31 March)
Second half (1 April – 30 September)
Full Year (1 October – 30 September)
6.136 1
6.091 1,2
12.227
5.996
6.089
12.085
2.3%
-
1.2%
1
2
Includes retention of S$4.8 million in first half 2022 which was released in second half of FY2022.
Includes retention of S$1.7 million of tax-exempt income.
TOTAL ASSETS, NET ASSET VALUE PER UNIT AND NET TANGIBLE ASSET PER UNIT
As at 30 September 2022, the total assets stood at S$5,941.4 million, an increase of S$42.6 million from S$5,898.8
million a year ago. The increase was mainly attributed to investment in joint ventures of S$17.9 million, valuation
gain of S$2.7 million and capital expenditure of S$4.9 million as well as financial derivatives of S$25.1 million arising
from the fair value adjustments of interest rate swaps. The increase was partially offset by lower investment in
associate of S$5.7 million mainly due to share of H-REIT’s fair value loss on investment properties of S$4.4 million
and decrease in cash and cash equivalents of S$4.1 million.
FCT Group’s net assets stood at S$3,964.1 million as at 30 September 2022, an increase of S$45.3 million compared
with S$3,918.8 million a year ago.
Correspondingly, the NAV and the NTA of FCT Group increased to S$2.33 per Unit from S$2.30 per Unit a year ago.
The NAV and NTA per Unit are calculated based on the following:
NAV/NTA (S$’000)
Total issued and issuable Units (‘000)
NAV/NTA per Unit (S$)
30 September 2022
30 September 2021
3,964,077
1,703,765
2.33
3,918,808
1,700,859
2.30
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APPRAISED VALUE OF PROPERTIES
Independent valuations of the investment properties as at 30 September 2022 and 30 September 2021 were
undertaken by Jones Lang LaSalle Property Consultants Pte Ltd and Savills Valuation and Professional Services (S)
Pte Ltd (“Savills”).
The Manager believes that these independent valuers possess appropriate professional qualifications and relevant
experience in the location and category of the investment properties being valued. Valuation methods used for
the investment properties include the capitalisation approach and discounted cash flow analysis (and direct
comparison method as a cross-check) in determining the fair values of the properties.
Annual valuations are required by the Code on Collective Investment Schemes.
The total appraised value of FCT Group’s investment property portfolio as at 30 September 2022 stood at S$5,516.0
million, compared with S$5,506.5 million a year ago.
The appraised values of Causeway Point and Northpoint City North Wing saw an increase of S$11.0 million and
S$6.5 million respectively, while Century Square registered decline of S$15.0 million in its appraised value. The
remaining properties in the investment portfolio were relatively stable compared to a year ago.
Properties
Causeway Point
Northpoint City North Wing
Changi City Point
Yishun 10 Retail Podium1
Tampines 1
Tiong Bahru Plaza
Century Square
Hougang Mall
White Sands
Central Plaza
Total
Waterway Point6
As at 30 September 2022
As at 30 September 2021
Appraised Value
(S$ million)
Capitalisation
rate
Appraised Value
(S$ million)
Capitalisation
rate
1,323.0
778.0
325.0
34.0
764.0
655.0
559.0
433.0
429.0
216.0
5,516.0
1,312.5
4.75%
4.75%
5.00%
3.75%
4.75%
4.75%
4.75%
4.75%
4.75%
3.75%
4.50%
1,312.0
771.5
325.0
33.0
762.0
654.0
574.0
432.0
428.0
215.0
5,506.5
1,300.0
4.75%
4.75%
5.00%
3.75%
4.75%
4.75%
4.75%
4.75%
4.75%
3.75%
4.50%
1 Yishun 10 Retail Podium comprises 10 strata-titled retail units at Yishun 10 Cinema Complex. As at 30 September 2022, its valuation was based
on the capitalisation approach, discounted cash flow analysis and direct comparison method.
2 As of 30 September 2022, FCT owns 40.00% of Sapphire Star Trust which holds Waterway Point. The value reflected in this table is the total
value of the retail property and is based on the agreed property value in the proposed acquisition of an additional 10.00% interest in Waterway
Point as announced on 12 September 2022. The agreed property value was arrived at after taking into account the independent valuation
conducted by Savills (commissioned jointly by the Manager of FCT, HSBC Institutional Trust Services (Singapore) Limited (in its capacity as
trustee of FCT) and an unrelated third-party purchaser of the other 10.00% interest in Waterway Point). Savills, in its report dated 31 July 2022,
stated that the open market value of the Property as at 31 July 2022 was S$1,300.0 million. The valuation methods used to derive the open
market value of the Property include the capitalisation approach and discounted cash flow analysis, with the direct comparison method used
as a cross-check. FCT’s 40.00% interest amounts to S$525.0 million.
ANNUAL REPORT 2022 40
FRASERS CENTREPOINT TRUST
CA P I TA L R ES O U RCES
OVERVIEW
SOURCES OF FUNDING
The Manager of FCT continues to maintain a prudent
financial structure and adequate financial flexibility to
ensure that it has access to capital resources to drive
growth. The Manager proactively manages FCT Group’s
cash flows, financial position, debt maturity profile, cost
of funds, interest rates exposure and overall liquidity
position to stay competitive. The Manager monitors and
maintains a level of cash and cash equivalents deemed
adequate by management to meet its operational
needs. It also maintains a strong capital structure that is
supported by diversified sources of funding.
FCT Group taps on the debt and equity market for
its funding needs. The Manager maintains active
relationship with local and foreign banks which are
located in Singapore. The principal bankers of FCT
Group are BNP Paribas, Citibank, N.A., Singapore
Branch, Credit Industriel et Commercial, Singapore
Branch, DBS Bank Ltd., Oversea-Chinese Banking
Corporation Limited and Standard Chartered Bank.
As at 30 September 2022, FCT Group has a total
capacity of S$6,161.9 million from its sources of
funding, of which S$1,815.0 million or 29.5% has
been utilised.
The following table summarises the capacity and the
amount utilised for each of the sources of funding:
Sources of Funding
Type
Capacity
Amount Utilised
% Utilised
Revolving credit facilities
Revolving credit facilities
Medium Term Note Programme
Bank borrowings
Bank borrowings
Multicurrency Debt Issuance Programme
Total
Unsecured
Secured
Unsecured
Unsecured
Secured
Unsecured
S$665.0 million
S$298.8 million
S$1,000.0 million
S$580.0 million
S$618.1 million
S$3,000.0 million
S$6,161.9 million
S$171.0 million
S$175.9 million
S$70.0 million
S$580.0 million
S$618.1 million
S$200.0 million
S$1,815.0 million
25.7%
58.9%
7.0%
100.0%
100.0%
6.7%
29.5%
CREDIT RATINGS
DEBT PROFILE
FCT has corporate credit ratings from S&P Global
Ratings (“S&P”) and Moody’s Investors Service
(“Moody’s”). FCT has been assigned a corporate rating
of “BBB” with a stable outlook by S&P and a corporate
rating of “Baa2” with a stable outlook by Moody’s. In
addition, FCT’s Medium Term Note Programme (“MTN
Programme”) has been rated “BBB” by S&P.
SUSTAINABLE FINANCING
In December 2021, FCT set up a sustainable finance
framework to demonstrate its commitment towards
responsible investment by improving its portfolio’s
ESG performance. FCT’s goal is to certify 80.0%
of its existing buildings by 2024 to at least Building
Construction Authority Green Mark Gold certification.
As at 30 September 2022, green loans account
approximately 31.9% of total borrowings1.
In 2022, FCT Group entered into new term loan and
bank facilities of S$150.0 million and S$120.0 million
respectively to re-finance the existing bank loans
as well as S$30.0 million bond issued under its MTN
Programme. To mitigate interest rate risk, Interest Rate
Swaps of notional S$410.0 million were executed. As
at 30 September 2022, 70.5% of the total borrowings
are on fixed interest rates. During the year, the security
in relation to Tiong Bahru Plaza and Changi City Point
were unencumbered, following the full repayment of
the relevant loans and cancellation of facilities. The
percentage of total assets that are unencumbered
increased to 68.2% as at 30 September 2022 as
compared to 50.0% a year ago.
FCT Group’s total debt stood at S$1,815.0 million on
30 September 2022 for which it comprised S$794.0
million secured bank borrowings, S$751.0 million
unsecured bank borrowings and S$270.0 million
unsecured Notes. The Interest Coverage Ratio (“ICR”)
for the year ended 30 September 2022 was 5.19 times.
FCT Group’s aggregate leverage stood at 33.0% as at
30 September 2022.
1 The green loans and the total borrowings include FCT’s 40.00% proportionate share of borrowing in SST.
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KEY FINANCIAL METRICS
Financial Year ended 30 September
2022
2021
Total Borrowings
Aggregate Leverage1
Interest Coverage2
Average All-In Cost Of Borrowing
Average Debt Maturity
S$1,815.0 million
33.0%
5.19 times
2.5%
2.0 years
S$1,815.0 million
33.3%
4.77 times
2.2%
2.5 years
1
In accordance with Property Funds Appendix, the aggregate leverage included FCT’s proportionate share (40.00%) of deposited property value
and borrowings in SST (which owns Waterway Point).
2 Ratio is calculated by dividing the trailing 12 months earnings before interest, tax, depreciation and amortisation (excluding effects of any fair
value changes of derivatives and investment properties, and foreign exchange translation), by the trailing 12 months interest expense and
borrowing-related fees as defined in the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore. As the Group
has not issued any hybrid securities, adjusted ICR is identical to the ICR of the Group.
FCT Group holds derivative financial instruments to hedge its interest rate risk exposure. The fair value of derivative
assets as at 30 September 2022 of S$25.1 million (2021: S$3.1 million liabilities) is disclosed in Note 13 Financial
Derivatives to the Financial Statements. The fair value of financial derivatives represented 0.63% (2021: 0.08%) of
the net assets of FCT Group as at 30 September 2022.
DEBT MATURITY PROFILE AS AT 30 SEPTEMBER 2022
< 1 year
1 to 2 years
2 to 3 years
3 to 4 years
> 4 years
Total Borrowings
S$1,815.0 million
Amount Due
As % of total borrowings
S$391.0 million
S$472.0 million
S$511.0 million
S$215.0 million
S$226.0 million
S$1,815.0 million
21.5%
26.0%
28.2%
11.8%
12.5%
100.0%
S$391.0 million
(21.5% of total borrowings)
S$472.0 million
(26.0% of total borrowings)
S$511.0 million
(28.2% of total borrowings)
S$215.0 million
(11.8% of total borrowings)
S$226.0 million
(12.5% of total borrowings)
Total Borrowings
< 1 year
1 to 2 years
2 to 3 years
3 to 4 years
> 4 years
ANNUAL REPORT 2022 42
FRASERS CENTREPOINT TRUST
R E TA I L P RO P E RT Y M A R K E T OV E RV I E W
1. INTRODUCTION
This report has been prepared by Cistri Pte. Ltd.
This report provides an independent review of the
Singapore retail market, including the suburban
shopping centre market.
First, we consider the macro economic drivers of the
retail market, including economic growth, inflation,
tourism, and population growth.
Second, we look at the shopping centre market in more
detail, providing an analysis of key market dynamics
such as shopping centre supply, rental, and occupancy
growth.
Finally, we summarise key trends in the retail market
over the past year.
2. ECONOMIC CONTEXT
This section provides background information on the
economic context at the global and Singapore level.
Current Situation & Near-Term Outlook
Economic activity across many countries, particularly
advanced economies, bounced back from the
COVID-19 pandemic over late 2021 and early 2022. For
example, gross domestic product (“GDP“) in both the
United States (“US“) and European Union surpassed
pre-pandemic levels in Q2 2022. This recovery was
supported by economic reopening, the lifting of border
restrictions, consumer spending fuelled by pent-up
demand and accommodative monetary policy up to
early 2022.
Nevertheless, in the near future, the global economic
outlook is clouded by several headwinds. Firstly,
inflationary pressures have emerged as the demand
recovery coincided with tight labour markets and
commodity supply shortages largely due to the Russia-
Ukraine War and adverse weather events.
Second, interest rates have risen as central banks
worldwide responded to higher inflation by tightening
monetary policy. For example, the US Federal Reserve
has already increased the federal funds rate six times
up to November 2022 to reach a range of 3.75%
- 4.00%.
Third, economic recovery in China – now a significant
economic player and consumer on the global stage
– remains hampered by its “Zero-COVID-19” policy
and a downturn in its property sector. These market
disruptions could slow down private consumption
growth and broader economic activity if not managed
well.
So far, the Singapore economy has benefited from
the global and domestic post-pandemic reopening.
Notwithstanding the COVID-19 waves due to the
Omicron and XBB variants, Singapore has been able to
continue its economic reopening, lift its mask mandate
for most settings and fully remove Vaccination-
Differentiated Safe Management Measures (“VDS“) by
October 2022 as the local population gained immunity
through vaccination, boosters and prior infection.
With the economic reopening, Singapore recorded
year-on-year real GDP growth rates of around 4.5%
in Q2 2022 and 4.4% Q3 2022 (according to advance
estimates), with the fastest growth occurring in the
service sectors. For the full year of 2022, the Ministry of
Trade and Industry is forecasting real GDP growth within
a range of 3.0% – 4.0%. To achieve this growth and
manage the impacts of the emerging global economic
risks, the Singapore government will need to find a
balance between promoting growth and controlling
inflationary pressures through its monetary policy.
Medium-Term Outlook
In the medium term, we expect the momentum of the
post-pandemic rebound to continue, particularly with
the recovery of tourism. However, there are also some
risks that could affect the medium-term economic
outlook.
Firstly, global economic growth over the next few years
will depend on how long inflation persists, and how
well central banks are able to strike a balance between
controlling inflation and supporting growth. Raising
interest rates too much or too quickly risks causing an
economic slowdown. Should this occur in Singapore’s
major export markets, Singapore may be negatively
impacted.
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Singapore Full-Year Real GDP Growth
2012 – 2030
2012 - 2021 Average Growth: 3.2% p.a.
7.6%
2022 - 2030 Average Growth: 2.6% p.a.
Forecast ▸
4.4%
4.8%
3.9%
3.0%
4.7%
3.6%
3.7%
3.6%
2.4% 2.5% 2.6% 2.6% 2.5% 2.4% 2.3% 2.2%
1.1%
-4.1%
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Source: Focus Economics, Cistri
The second key variable in the medium-term outlook
is the pace with which the Chinese economy reopens
and recovers. Market commentators have expressed
concern about the health of the Chinese economy in
light of a sharp slowdown in GDP growth in Q2 2022
(0.4% year-on-year and -2.6% quarter-on-quarter) and
the delayed release of China’s Q3 economic data. The
sooner China is able to transition towards a more open
domestic economy and open borders, the sooner
Singapore stands to benefit from resumption of trade
and tourism activities with China.
Third, as a small open economy, international and
domestic political tensions affecting Singapore’s trade
partners could also impact Singapore’s medium-term
outlook. Trade and political tensions between the US
and China – both of which are Singapore’s major trade
partners – continue to play out through the imposition
of trade restrictions and sanctions on political
personnel. Singapore will need to manage its relations
with these two powerhouses well to maintain good
trading ties with both countries and their allies.
Finally, the medium-term outlook could be affected by
the emergence of new COVID-19 variants should they
be more severe than past variants and necessitate the
reimposition of Safe Management Measures such as
mask-wearing.
Long-Term Outlook
Even with the aforementioned developments, Singapore
has continued to demonstrate a sound and prudent
approach to governance that places it in good stead
to navigate economic uncertainties. In the longer term,
we remain optimistic about Singapore’s position as the
preferred hub for business, investment and trade in the
growth region of ASEAN. Singapore’s political stability
and its decisive, business-friendly policies have proven
to be its key factors of success, putting the city-state
ahead of other Asian business hubs on the road to
post-pandemic recovery.
Going forward, full-year GDP growth is forecast to
average around 2.6% p.a. between 2022 and 2030.
ANNUAL REPORT 2022 44
FRASERS CENTREPOINT TRUST
R E TA I L P RO P E RT Y M A R K E T OV E RV I E W
Consumer Price Inflation
2012 – 2030
2012 - 2021 Average Growth: 1.0% p.a.
4.6%
2.4%
1.0%
0.6%
0.4% 0.6%
-0.5% -0.5%
-0.2%
2022 - 2030 Average Growth: 2.2% p.a.
Forecast ▸
5.5%
3.3%
2.3%
2.5%
1.9%
1.4% 1.4% 1.4% 1.4% 1.4%
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Source: Focus Economics, Cistri
3. INFLATION
Like many other economies, Singapore experienced
heightened inflation in 2022 due to the supply chain
shocks caused by the Russia-Ukraine War and other
global disruptions. In September 2022, Singapore saw
year-on-year inflation of around 7.5% – the highest
since 2008. Amongst product and service categories,
transport registered the highest inflation rate of around
19% year-on-year due to higher prices for fuel and cars.
Strong inflation rates were also observed in the food
category (6.9%) and clothing and footwear category
(6.0%).
As long as geopolitical tensions in Europe and supply
chain issues remain unresolved, energy and commodity
prices are expected to remain elevated. Domestically,
Singapore may also face some additional short-term
price pressures due to the upcoming increase in Goods
and Services Tax (“GST“). The government will raise
GST from 7% to 9% in two stages; first to 8% on
1 January 2023, and then to 9% on 1 January 2024.
To mitigate the impacts of inflation, the Monetary
Authority of Singapore has made multiple adjustments
to its monetary policy stance throughout 2022 to
strengthen the Singapore Dollar and moderate imported
inflation. At the same time, the Singapore government
rolled out two fiscal support packages worth a total of
S$3 billion to help Singaporean households cope with
rising prices. These support packages are in addition to
the S$6 billion Assurance Package that was introduced
in Budget 2020 and topped up in Budget 2022 to help
cushion the impact of the GST increase on consumers.
These policies should help to protect consumers’
spending power from inflationary effects to some
degree.
Assuming the Russia-Ukraine War ends by 2023,
inflation is forecast to moderate over time and average
around 2.2% p.a. between 2022 and 2030.
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Population Growth
2012 – 2030
2012 - 2021 Average Growth: 0.8% p.a.
2.5%
1.6%
1.3% 1.2% 1.3%
1.2%
0.5%
0.1%
-0.3%
2022 - 2030 Average Growth: 0.9% p.a.
Forecast ▸
3.4%
1.4%
1.1% 0.9% 0.9% 0.8% 0.8% 0.8% 0.8%
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
-4.1%
Source: SingStat, Cistri
4. POPULATION GROWTH
Following a decline in population in the prior year,
Singapore’s population rebounded by 3.4% from 2021
to 2022 to reach 5.63 million. Residents (Singapore
Citizens and Permanent Residents) accounted for
around 47% of the population growth from 2021 to 2022
while foreigners accounted for the remaining 53%.
Nevertheless, due to the large decline in expatriate
population in 2021, the foreigner population was
still around 7% below pre-pandemic levels by 2022.
In contrast, the resident population in 2022 was 1%
above pre-pandemic levels. Overall, Singapore’s total
population by 2022 was still around 1% below that
in 2019.
We expect population levels to return to pre-pandemic
levels within the next year as inbound migration
continues to recover, supported by the pent-up demand
for labour. The Singapore government recognises the
importance of keeping Singapore open to global talent
to sustain economic growth and has made the following
manpower policy changes to ease the foreign talent
crunch:
▶ The minimum duration for firms to advertise jobs to
locals before hiring foreigners has been reverted to
two weeks after being temporarily extended to four
weeks during the pandemic.
▶ Employment Pass holders (i.e. white-collar foreign
workers) working in tech occupations with a
shortage of workers are now allowed to stay in
Singapore for up to five years, up from two or
three years.
▶ The government is also introducing a new work pass
– the Overseas Network and Expertise (“One”) Pass
– to attract top foreign talent with valuable networks
and deep skills from across all industries. However,
we do not expect many workers to be admitted
under this pass as it is highly selective and requires
applicants to earn a fixed monthly salary of at least
S$30,000.
In the long term, given the low birth rate and ageing
population in Singapore, we expect some degree of
inward migration to remain a key policy tool to support
population and economic growth in Singapore.
Overall, we forecast population growth to average
around 0.9% p.a. in 2023 – 2030 to reach around
6.1 million by 2030.
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5. TOURISM GROWTH
While Singapore’s tourism sector has yet to fully bounce
back from the pandemic, it has made steady progress
towards recovery. Monthly inbound visitor arrivals have
climbed month-on-month to reach around 778,000
by September 2022, which is around half the number
of arrivals achieved in September 2019. The steady
recovery has been facilitated by the decisive steps that
Singapore took this year to revive its tourism sector:
Ultimately, the main factor that will influence the
recovery of Singapore’s tourism sector will be the
reopening of its biggest single tourist source market
– China. Tourist inflows are unlikely to return to pre-
pandemic levels until outbound travel restrictions from
China are lifted. Nevertheless, the ongoing promotional
initiatives by Singapore’s tourism and economic
agencies remain important to keep Singapore front-of-
mind among prospective global visitors until they can
travel freely.
▶ Relaxation of border restrictions: All fully
6. RETAIL SALES
vaccinated adult visitors and children regardless
of vaccination status can now enter Singapore
without pre-departure testing or quarantine. Short-
term visitors who are not fully vaccinated can also
enter Singapore without quarantine subject to pre-
departure testing. These simplified border measures
help to entice tourists to return to the city-state.
Current Situation
Following a steep decline in 2020, retail sales began
to recover in 2021 and have been continuing to
grow through 2022. Growth has been facilitated by
consumers seeking to fulfil pent-up demand for
shopping from the last two years.
▶ Reopening of Changi Airport: In response to
rising travel demand, Changi Airport has resumed
operations at Terminal 4 and Terminal 2. This
restores the passenger handling capacity at Changi
Airport to around 70 million passengers a year, the
same as pre-pandemic levels.
▶ Business and leisure events: With the removal of
VDS, various business and leisure events have been
able to resume normally in 2022. This year saw the
return of the Formula 1 Singapore Grand Prix, which
attracted a record high of 302,000 attendees, around
half of whom were from abroad. On the business
front, Singapore has hosted high-profile MICE events
such as the Milken Institute Asia Summit, Forbes
Global CEO Conference, the Bloomberg New
Economy Forum amongst other events that help to
reinforce Singapore’s status as a regional and global
business hub.
Besides these measures, the Singapore Tourism Board
(“STB“) has rolled out multiple initiatives to raise
Singapore’s profile as a global tourist destination.
This year, as part of its SingapoReimagine campaign,
STB partnered international artistes Charlie Puth and
Billie Eilish as well as Korean drama production house
Studio Dragon to feature Singapore in various forms
of entertainment media. In addition, STB signed a
partnership agreement with Warner Bros Discovery to
collaborate on producing entertainment, lifestyle and
marketing content to spotlight Singapore as a travel
destination. Other partners that STB is working with
to promote travel to Singapore include travel booking
platform Klook and Malaysia Airlines.
Different product categories have seen sales rebound
to differing extents. Some categories have seen sales
return to or even exceed pre-pandemic levels, while
others have yet to fully recover. Comparing total sales
in the first eight months of the year, supermarket and
hypermarket sales in 2022 were around 25% higher
than pre-pandemic levels. For the same period, sales
in non-food discretionary categories such as jewellery,
apparel, IT and household goods have also exceeded
pre-pandemic levels.
In contrast, F&B sales at restaurants for the year up to
August were still below pre-pandemic levels. However,
F&B sales could improve in the coming months with the
recent lifting of VDS at dining establishments.
Based on SingStat’s data up to August 2022, Cistri
forecasts full-year retail sales (excluding petrol and
motor vehicles but including F&B) to grow by around
9.9% in 2022 and reach close to 2019 levels by end
2022.
Medium-Term and Long-Term Outlook
A sustained recovery in retail sales in the next few years
will require a stable economic environment where the
impacts of high inflation and interest rates are carefully
managed. Otherwise, there is a risk that high inflation
and/or interest rates will dampen consumers’ spending.
In addition, inbound tourism from major source markets
will need to fully recover.
Assuming these conditions for recovery are achieved,
total retail sales in Singapore could exceed pre-
pandemic levels in 2023. As pent-up demand tapers off
in 2023, sales growth is forecast to moderate to 4.5% in
2023 before picking up again in 2024 with anticipated
recovery in tourism inflows. Overall, between 2022 and
2030, total nominal retail sales growth is forecast to
average around 4.3% p.a..
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Retail Sales Growth by Category
First Eight Months of 2019 vs. First Eight Months of 2022
Petrol Service Stations
Supermarkets & Hypermarkets
Watches & Jewellery
Recreational Goods
Fast Food Outlets
Wearing Apparel & Footwear
Computer & Telecommunications Equipment
Furniture & Household Equipment
Total (Excl. Motor Vehicles, incl. F&B & Petrol)
Optical Goods & Books
Mini-marts & Convenience Stores
Restaurants
Medical Goods & Toiletries
Food Retailers
Department Stores
Food Caterers
-46.2%
Source: SingStat, Cistri
53.9%
25.4%
24.0%
2022 Above 2019 Levels
2022 Below 2019 Levels
14.1%
11.1%
7.1%
7.0%
6.5%
5.3%
-5.4%
-6.4%
-10.3%
-16.7%
-20.0%
-20.6%
It should be noted that not all of this growth will accrue
to bricks-and-mortar retail stores as the penetration
of online retail has also been increasing. Before
the pandemic, SingStat’s data suggests that around
6% of total retail sales (excluding F&B) in Singapore
were transacted online. By 2022, this share had more
than doubled to around 13%, and it is expected to
remain around this level in the next couple of years as
consumers remain accustomed to the convenience of
online shopping.
Notwithstanding, this still leaves 87% of sales being
purely transacted in physical stores, even before
including online sales that are fulfilled in-store. Our
view is that physical stores will continue to play a
critical role in facilitating most retail transactions over
the next decade, particularly via omnichannel means.
Furthermore, there will be variations in the pace of
bricks-and-mortar sales recovery across different types
of retail centres. High-quality, well-managed and well-
located retail centres are likely to experience a faster
uptick in sales.
Nominal Retail Sales Growth
2012 – 2030
2012 - 2021 Average Growth: -0.8% p.a.
3.0%
1.0%
0.8%
0.8%
-0.5% -0.7%
-1.9%
-0.03%
2022 - 2030 Average Growth: 4.3% p.a.
Forecast ▸
9.9%
8.4%
7.0%
4.5%
3.5% 3.9%
2.6% 2.6% 2.6% 2.6%
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
-16.6%
Source: SingStat, Cistri
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7. RETAIL SUPPLY
Cistri’s estimate of future retail floorspace includes
announced retail projects, longer-term allowances for
unannounced future projects, as well as an allowance
for obsolescence. Supply forecasts for announced
projects are based on the URA’s commercial projects
pipelines and developers’ intentions.
Total retail net lettable area (“NLA“) supply in Singapore
reached 66.5 million sq ft by end 2021, approximately
400,000 sq ft higher than in 2020. Some of the decline
in floorspace supply in 2020 was reversed with the
opening of Northshore Plaza I (62,200 sq ft) and the
addition of non-mall retail spaces. By end 2022, total
retail NLA is expected to increase further to around 66.9
million sq ft due to a combination of new mall openings
(e.g. Northshore Plaza II, Hougang Rivercourt), centre
re-openings post-renovation (e.g. i12 Katong), and the
re-opening of retail outlets that were closed due to the
pandemic.
By 2026, total retail floorspace is forecast to increase to
around 68.5 million sq ft, which translates to an average
growth rate of approximately 400,000 sq ft p.a. or 0.6%
p.a. from 2021. Of this, the share of shopping centre
floorspace outside the Central Area is expected to
remain stable at around 20% from 2021 to 2026.
Retail Floorspace Supply
Singapore, 2011 – 2026 (Million Sq ft)
63.7
64.3
65.1
65.4
65.5
66.7
66.1
66.5
66.9
67.4
67.9
68.2
68.5
Forecast ▸
30.9
31.5
31.2
30.9
30.5
30.4
30.4
30.7
30.8
30.9
31.0
31.1
31.2
58.9
60.2
30.6
30.9
61.8
31.1
9.1
10.4
11.0
11.0
11.8
12.4
12.8
13.4
13.0
13.1
13.2
13.3
13.6
13.7
13.8
19.6
20.2
20.3
21.7
21.8
22.1
22.1
22.2
22.9
22.7
22.7
22.9
23.2
23.3
23.4
23.5
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Central Area Shopping Centres | Shopping Centres Outside Central Area | Other Retail Formats | Total
Note: Central Area includes Central Core and central fringe areas
Source: URA, Developers' Announcements, Cistri; as of September 2022
Notable upcoming retail centre projects include a mixture of projects in the central fringe and suburban east and
northeast Singapore. These are listed in the table below.
Upcoming Enclosed Retail Centre Projects (>60,000 sq ft NLA)
2023 – 2027
Name
Opening
Year
NLA
(sq ft)
Closest
MRT/LRT
Centre Type
Woodleigh Mall
Grantral Mall @ Macpherson
Punggol Digital District
Sengkang Grand Mall
One Holland Village
Changi Airport Terminal 2 Expansion
Caninghill Square (Former Liang Court)
Lentor Modern
Pasir Ris Mall
Source: URA, developers, Cistri
2023
2023
2024
2024
2024
2024
2025
2026
2024
206,000
63,000
173,000
112,000
62,000
60,000
90,000
60,000
269,000
Woodleigh
Tai Seng
Punggol Coast (U/C)
Sengkang
Holland Village
Changi Airport
Fort Canning
Lentor
Pasir Ris
Sub-Regional
Neighbourhood
Neighbourhood
Neighbourhood
Neighbourhood
Neighbourhood
Neighbourhood
Neighbourhood
Sub-Regional
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Besides the above, several other locations provide the
potential for new retail floorspace:
▶ Areas identified for development under URA’s 2019
Master Plan, including: Woodlands Regional Centre,
Changi Gateway, the Greater Southern Waterfront,
Tengah and Bidadari, as well as tourist destinations
like Sentosa-Brani, Jurong Lake District and Mandai
Eco-Tourism Hub.
▶ Government Land Sales (“GLS“) that provide
opportunities for mixed-use developments with
retail components. Currently, there is only one
GLS site that could potentially accommodate retail
development and this site is still in the Reserve
List. The Kampong Bugis white site was removed
from the tender list March 2022 due to delays in the
completion of soil remediation works, but we expect
this site to be re-included eventually. Development
on such sites is likely to still be a few years away as
it will first require the submission of a satisfactory
bid to trigger a land tender process.
Upcoming Government Land Sale Sites (Mixed Use/White Sites)
October 2022
Site
Site Area
(ha)
Proposed Gross
Plot Ratio
Maximum GFA
(sq ft)
Capped Retail GFA
(sq ft)
Status
Woodlands Avenue 2
2.8
4.2
1,240,000
360,000
Reserve List
Source: URA
8. SHOPPING CENTRE FLOORSPACE PER
CAPITA
By end 2022, Singapore’s shopping centre floorspace
per capita provision is anticipated to reach around
6.4 sq ft NLA. This is slightly lower than the provision in
2021 primarily due to a rebound in the population level
in 2022, but the change is minor. By 2026, we expect
floorspace per capita to moderate further to around 6.3
sq ft as the population continues to grow faster than
supply.
Compared to other countries, Singapore has a lower
provision of floorspace per capita compared to other
larger countries like the US, Australia, and other major
cities in the region. This is primarily because Singapore
has fewer large shopping centres.
However, the quantum of floorspace per capita
does not reflect the quality of the retail offering.
Singapore generally has good quality shopping malls,
a comprehensive retail hierarchy, and low levels of
vacancy. This means that shoppers are generally well-
served notwithstanding the lower per capita provision
of floorspace.
Shopping Centre Floorspace Per Capita (sq ft NLA)
Singapore vs. Various Countries & Cities
US (2022)
Canada (2021)
Australia (2021)
Kuala Lumpur (2022)
Hong Kong (2020)
Singapore (2022)
Singapore (2026)
Japan (2021)
France (2021)
12.7
10.7
10.2
6.4
6.3
4.4
4.4
Global benchmarks updated based on latest data availability.
Source: Cistri
16.5
24.1
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Amongst the various regions of Singapore, the highest
concentration of shopping centre floorspace is within
the central areas, particularly around Orchard Road.
The suburban areas have materially lower provisions,
ranging from around 2.3 Sq ft per capita in the Outer
North to around 4.4 Sq ft per capita in the Outer East
in 2021.
Cistri expects the Outer Northeast region to be the only
region to experience growth in per capita floorspace
provision between 2021 and 2026. Contributing to
this are two Housing Development Board (“HDB“)
neighbourhood centres that newly opened in 2022 –
Hougang Rivercourt and Northshore Plaza II – as well as
other planned openings after 2022 such as Sengkang
Grand Mall and the retail components of Punggol Digital
District. In all other regions, floorspace per capita is
expected to decline from 2021 as the 2021 provisions
were elevated by a low population base.
Shopping Centre Floorspace Per Capita by Region
2021 vs. 2026
Source: SingStat, Cistri
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9. MARKET SHARE OF SHOPPING CENTRE NLA BY OWNER
FCT remains the second-largest owner of total shopping centre floorspace in Singapore with a market share of
around 5.7% as at October 2022. This share has not changed since the end of 2021.
Share of Island-wide Shopping Centre Floorspace by Owner
By NLA
12.1%
5.7%
5.2%
4.4%
4.2%
4.0%
3.2%
2.8%
2.7%
2.5%
CapitaLand
Integrated
Commercial
Trust
Frasers
Centrepoint
Trust
Source: Cistri
Note: As at October 2022
NTUC
Enterprise
HDB
Far East
Organisation
Lendlease
Mapletree
Pan Asia
Commercial
Trust
United
Industrial
Corporation
Limited
Changi Airport
Group
CapitaLand
FCT’s share of suburban shopping centre floorspace as at October 2022 is estimated to be around 9.6%. This is
slightly lower than its 2021 share of around 9.7% but not significantly different. The slight drop is caused by an
increase in the total suburban floorspace stock due to additions by other retail property players outside the top 10
players.
Share of Suburban Shopping Centre Floorspace by Owner
By NLA
9.6%
9.6%
8.7%
7.2%
6.8%
5.5%
4.6%
3.3%
2.8%
2.4%
CapitaLand
Integrated
Commercial
Trust
Frasers
Centrepoint
Trust
NTUC
Enterprise
HDB
Lendlease
Mapletree
Pan Asia
Commercial
Trust
Changi Airport
Group
Far East
Organisation
CapitaLand
UOL Group
Limited
Source: Cistri
Note: As at October 2022
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Key changes to the top 10 shopping centre owners in
2022 include the following:
▶ CapitaLand Integrated Commercial Trust’s
floorspace share has declined due to its divestment
of JCube to its sponsor CapitaLand. Consequently,
CapitaLand’s floorspace share has increased and it
is now among the top 10 owners.
▶ HDB’s floorspace share has increased due to the
opening of Hougang Rivercourt and Northshore
Plaza II.
▶ Changi Airport Group’s floorspace share has risen
due to the reopening of terminals at Changi Airport
and the retail stores therein.
10. RETAIL RENTS & OCCUPANCY
We have observed some tenant turnover across
several malls this year due to retailers facing increasing
operating costs while demand remains below pre-
pandemic levels, particularly in areas reliant on tourists
and office workers. However, landlords have been
proactive in replacing tenants, and this has supported
retail occupancies. Suburban occupancies have
remained stable between Q1 2022 and Q3 2022,
while occupancies in Orchard Road and Rest of City
Area have improved over the same period.
The Suburban submarket has continued to outperform
other parts of Singapore, achieving an average
occupancy rate of around 94% as at Q3 2022 compared
to around 89% in the central submarkets. This reflects
the important role of suburban shopping centres in the
retail hierarchy as they provide day-to-day and non-
discretionary services that benefit from more resilient
demand. In contrast, occupancies in the central areas
have remained lower than pre-pandemic levels as
tourist traffic has yet to fully recover, and office worker
footfall remains below pre-pandemic levels.
Looking ahead to 2023, further recovery is expected
in the central submarkets as sales captured from
tourists pick up, underpinning more confidence in this
submarket. Suburban occupancies, which are already
outperforming those in central areas, are expected to
remain stable at an average of around 94% through
to 2023.
Retail Occupancy Rate
Singapore, 2016 – 2023
100%
98%
96%
94%
92%
90%
88%
86%
84%
82%
80%
2016
2017
2018
2019
2020
2021
2022
2023
Orchard Road | Rest of City Area | Suburban
Source: URA, Cistri
Retail rent data from the URA suggests that retail
landlords are prioritising maintaining occupancies over
increasing rents, especially in the central areas. In the
central areas, rents have continued to decline through
the first three quarters of 2022. In Q3 2022, the median
retail rent in the Orchard Road submarket was around
4% lower than that in Q3 2021. In the Rest of City Area
submarket, the Q3 2022 median rent was around 5%
lower than that in Q3 2021. Meanwhile, suburban rents
have been more stable. In Q3 2022, median rent in the
Suburban submarket was only around 0.4% below that
in Q3 2021.
Since the beginning of the COVID-19 pandemic, retail
rents (as measured by the URA) have fallen further than
sales, suggesting that rental affordability for tenants has
improved. Given the current rebound in retail sales,
we expect the current trend of rental decline to bottom
out by the end of 2022 before beginning to rebound
in 2023.
A stronger recovery is anticipated for the central
submarkets as tourism traffic picks up. In the medium
to long-term, as retail sales continue to recover,
we anticipate both rents and occupancies to
further improve.
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Median Retail Rental (Based on Contract Date) Year-on-Year Growth
Singapore, 2016 – 2023
3%
1%
0.3%
-2%
-2%
-0.1%
-3%
-6%
-7%
-7%
-7%
Forecast
4%
3% 3%
-1%
-3%
-4%
-6% -6%
-6%
-5%
-6%
-8%
-9%
2016
2017
2018
2019
2020
2021
2022
2023
Orchard Road | Rest of City Area | Suburban
Note: Based on rents for full year up to Q4 in each year
Source: URA, Cistri
11. RETAIL TRENDS IN THE POST-
COVID-19 WORLD
In many ways, the retail market has returned to the
pre-pandemic normal since pandemic-related
movement restrictions were loosened. Nevertheless,
the pandemic has not left the retail sector completely
unchanged. Rather, the pandemic has accelerated
several trends that were already starting to impact
retailers before 2020 and are now here to stay in the
post-COVID-19 world.
Localisation of Retail Towards Suburban Areas
The pandemic has increased the adoption of work-
from-home practices and led to more consumers
spending more time in the suburban areas where they
live. A study conducted by the Institute of Policy Studies
from July 2021 to April 2022 found that 40% to 50% of
employees in Singapore have indicated a preference
for retaining flexible work arrangements that combine
working from home and in the office.
International and local retail brands in Singapore
have responded to this trend by expanding their store
networks into suburban neighbourhoods. For instance,
all three of Daiso’s new store openings in 2022 are
located in suburban areas – Jurong Point, NEX and
Ang Mo Kio Central. Another example is Uniqlo, which
opened new outlets in Clementi and Ang Mo Kio this
year and has another two outlets in the pipeline for
Bishan and Sengkang.
Amongst local brands, café chain Huggs Coffee is
an example of a retailer that has pivoted from being
located downtown to penetrating the heartlands.
Currently, around half of Huggs’ 21 outlets are in
suburban areas. Another example is department store
chain OG, which has shut its Orchard Road outlet and
planning to open new outlets closer to suburban areas
in the long term.
E-Commerce Adoption to Remain Elevated
The pandemic has accelerated the take-up of online
shopping and we expect online retail sales to continue
to grow from current levels. As discussed in the ‘Retail
Sales’ section, the share of retail sales transacted online
in Singapore in 2022 to date is more than twice the
share seen before the pandemic.
E-commerce platforms have raised consumers’
expectations for the convenience and flexibility of
shopping. In response, retailers are continuing to
expand their click-and-collect infrastructure to provide
shoppers a smoother omnichannel retail experience.
As an example, Decathlon is planning to operate most
of its upcoming stores as click-and-collect outlets. Even
Singapore’s largest e-commerce platforms – Lazada and
Shopee – recognise the importance of an omnichannel
presence and have launched pop-up physical stores
where customers can pick up online orders or view
products in-store before ordering them online for home
delivery.
The stickiness of online shopping has also prompted
physical retailers to enhance their experiential retail
offer to draw consumers out of their homes and into
physical stores. Sephora is one retailer that has taken
this concept on board with its “Store of the Future”
at Raffles City, which combines beauty retail with
experiences such as skincare lounge and a beauty
school. Another example is Adidas’ new Singapore
Brand Centre on Orchard Road, which offers a
unique shopping environment in a store decorated
with artworks by local designers, as well as product
customisation services at its in-house MakerLab. Also
along Orchard Road, Uniqlo’s global flagship outlet at
Orchard Central hosts free workshops and launched
a “Custom Corner” that offers embroidery, repair, and
custom printing services.
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Interest in Health & Well-being-Related Categories
Consumers continue to show heightened interest
in goods and services that support their well-being,
whether in terms of physical health or better work-life
balance for improved mental health. Athleisure retail
has benefited from this trend. Athleisure brands that
have recently expanded in Singapore’s prime retail
districts include Puma, which took over Forever 21’s
multi-storey space along Orchard Road, and Lululemon
with its new store in Raffles City.
While the existing local market fundamentals appear
solid, the prospects of continued market recovery will
be contingent on several external factors. First, the
resolution of geopolitical tensions in Europe will be key
to relieving inflationary pressures and the need for rapid
interest rate rises, both of which dampen consumer
spending power. Second, the pace of China’s reopening
and economic recovery will also impact Singapore’s
economic health in general and its tourism sector, both
of which influence retail demand.
In line with a growing emphasis on healthy living, fresh
food is another category that is receiving growing
consumer interest. Reflecting this emerging interest, the
OG department store at Orchard Point will be making
way for a new retail concept specialising in fresh food
and groceries.
Notwithstanding the short- to medium-term headwinds,
we are still optimistic about the long-term future of the
Singapore retail real estate market given Singapore’s
sound economic fundamentals supporting demand,
and a well-governed planning regime that supports
sustainable retail development and space absorption.
12. CONCLUSION
DISCLAIMER
Singapore’s retail market has enjoyed a strong recovery
so far as shoppers have embraced the economic
reopening and returned to enjoying out-of-home
shopping and dining experiences. The government’s
decisive approach to economic reopening and a
successful vaccination drive has enabled a smooth
transition to endemic COVID-19 that has benefited the
retail market. This is reflected in SingStat’s retail sales
data up to August 2022, which suggests that total retail
sales could be on track to recover to pre-pandemic
levels by 2023.
Of course, the impact of this recovery will not be
uniform across market players. Higher-quality, better-
managed centres located near densely populated areas
would be better placed to benefit from the recovery.
Centre quality and management are particularly
important in the post-pandemic period where
e-commerce has remained sticky and shoppers need
more compelling retail offers to draw them out of their
homes and into physical retail destinations. Amongst
geographical submarkets, the suburban retail submarket
has proven to be particularly resilient both in terms
of occupancy and rental growth, outperforming the
nationwide market on both fronts as shown in the 'Retail
Rents & Occupancy' section of this report.
This report is dated 7 November 2022 and incorporates
information and events up to that date only and
excludes any information arising, or event occurring,
after that date which may affect the validity of Cistri
Pte Ltd (“Cistri“) opinion in this report. Cistri prepared
this report on the instructions, and for the benefit only,
of Frasers Centrepoint Trust (“Instructing Party“) for
the purpose of Independent Retail Market Overview
(“Purpose“) and not for any other purpose or use. To
the extent permitted by applicable law, Cistri expressly
disclaims all liability, whether direct or indirect, to the
Instructing Party which relies or purports to rely on this
report for any purpose other than the Purpose, and to
any other person which relies or purports to rely on
this report for any purpose whatsoever (including the
Purpose).
In preparing this report, Cistri was required to make
judgements which may be affected by unforeseen
future events, the likelihood and effects of which are not
capable of precise assessment.
All surveys, forecasts, projections and
recommendations contained in or associated with
this report are made in good faith and on the basis
of information supplied to Cistri at the date of this
report, and upon which Cistri relied. Achievement of
the projections and budgets set out in this report will
depend, among other things, on the actions of others
over which Cistri has no control.
Contents
Overview
Business
Review
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Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
55
COVID-19 and the potential impact on data and
information
▶ The data and information that informs and
supports our opinions, estimates, surveys,
forecasts, projections, conclusion, judgments,
assumptions and recommendations contained in
this report (“Report Content”) are predominantly
generated over long periods, and is reflective of
the circumstances applying in the past. Significant
economic, health and other local and world events
can, however, take a period of time for the market
to absorb and to be reflected in such data and
information. In many instances a change in market
thinking and actual market conditions as at the date
of this report may not be reflected in the data and
information used to support the Report Content.
▶ The recent international outbreak of the Novel
Coronavirus (“COVID-19“), which the World Health
Organisation declared a global health emergency
in January 2020 and pandemic on 11 March 2020,
is causing a material impact on world economies
and increased uncertainty in both local and global
market conditions.
▶ The effects (both directly and indirectly) of the
COVID-19 Outbreak on the global real estate market
and business operations is currently unknown and
it is difficult to predict the quantum of the impact
it will have more broadly on the global economy
and how long that impact will last. As at June 2020,
the COVID-19 Outbreak is materially impacting
global travel, trade and near-term economic growth
expectations. Some business sectors, such as
the retail, hotel and tourism sectors, are already
reporting material impacts on trading performance
now and potentially into the future.
▶ The data and information that informs and supports
the Report Content is current as at the date of this
report and (unless otherwise specifically stated in
the Report) does not necessarily reflect the impact
of the COVID-19 Outbreak on the global economy,
the asset(s) and business operations to which
the report relates. It is not possible to ascertain
with certainty at this time how the market and the
global economy more broadly will respond to
this unprecedented event. Nevertheless, we have
sought to address the impact of the COVID-19
Outbreak in the Report, and in doing so we have
had to make estimates, assumptions, conclusions
and judgements in the Report Content that are not
directly supported by available and reliable data and
information. It is possible that the market conditions
applying to the asset(s) and any associated business
operations to which the report relates and the
business sector to which they belong have been
more significantly impacted by the COVID-19
Outbreak within a short space of time and that it will
have a longer lasting impact than we have assumed.
Clearly, the COVID-19 Outbreak is an important risk
factor you must carefully consider when relying on
the report and the Report Content.
▶ Any Report Content addressing the impact of
the COVID-19 Outbreak on the asset(s) and any
associated business operations to which the report
relates or the global economy more broadly is
(unless otherwise specifically stated in the Report)
unsupported by specific and reliable data and
information and must not be relied on.
▶ To the maximum extent permitted by law, Cistri (its
officers, employees and agents) expressly disclaim
all liability and responsibility, whether direct or
indirect, to any person (including the Instructing
Party) in respect of any loss suffered or incurred
as a result of the COVID-19 Outbreak materially
impacting the Report Content, but only to the extent
that such impact is not reflected in the data and
information used to support the Report Content.
In preparing this report, Cistri may rely on or refer to
documents in a language other than English, which
Cistri may arrange to be translated. Cistri is not
responsible for the accuracy or completeness of such
translations and disclaims any liability for any statement
or opinion made in this report being inaccurate or
incomplete arising from such translations.
Whilst Cistri has made all reasonable inquiries it
believes necessary in preparing this report, it is not
responsible for determining the completeness or
accuracy of information provided to it. Cistri (including
its officers and personnel) is not liable for any errors
or omissions, including in information provided by the
Instructing Party or another person or upon which Cistri
relies, provided that such errors or omissions are not
made by Cistri recklessly or in bad faith.
This report has been prepared with due care and
diligence by Cistri and the statements and opinions
given by Cistri in this report are given in good faith and
in the reasonable belief that they are correct and not
misleading, subject to the limitations above.
ANNUAL REPORT 2022
56
FRASERS CENTREPOINT TRUST
FCT P O RT FO L I O OV E RV I E W
As at 30 September 2022
Causeway Point
Waterway Point1
Tampines 1
Northpoint City
North Wing
Yishun 10
Retail Podium
Tiong Bahru Plaza
Century Square
Changi City Point
Hougang Mall
White Sands
Central Plaza
(Office property)
Gross floor area
("GFA")
Net lettable area
("NLA")
Number of leases
Number of tenants
Title
Year purchased
629,160 sq ft
58,451 sq m
419,698 sq ft
38,991 sq m
226
216
99-year leasehold
commencing
30 October 1995
2006
Purchased price
S$606.2 million
Valuation as at 30
September 2022
S$1,323.0 million
21.9%
542,493 sq ft
50,399 sq m
389,444 sq ft3
36,181 sq m
218
209
99-year leasehold
commencing
18 May 2011
40.00%-interest
purchased in 2019
S$530.2 million for
40.00% interest
S$1,312.5 million10
(100.00% interest)
S$525.0 million
(40.00% interest)
8.7%
380,898 sq ft
35,387 sq m
268,514 sq ft
24,946 sq m
174
170
99-year leasehold
commencing
1 April 1990
2020
S$762.0 million
S$764.0 million
376,578 sq ft
34,985 sq m
229,870 sq ft4
21,356 sq m
10,398 sq ft
966 sq m
10,344 sq ft
961 sq m
179
174
99-year leasehold
commencing 1 April 1990
Northpoint 1: 2006
Northpoint 2: 2010
Northpoint 1:
S$249.3 million
Northpoint 2:
S$164.6 million
S$778.0 million
2016
S$37.8 million
S$34.0 million
S$655.0 million
S$216.0 million
S$559.0 million
S$325.0 million
S$433.0 million
S$429.0 million
519,197 sq ft2
48,235 sq m2
214,769 sq ft
19,953 sq m
172,121 sq ft5
15,991 sq m
150
143
27
27
327,226 sq ft
30,400 sq m
211,282 sq ft6
19,629 sq m
138
135
commencing
commencing
commencing
1 September 1991
1 September 1991
1 September 1992
2020
2020
2020
306,378 sq ft
28,463 sq m
208,453 sq ft7
19,366 sq m
139
128
commencing
30 April 2009
2014
232,662 sq ft
21,615 sq m
165,680 sq ft8
15,392 sq m
128
123
commencing
1 May 1994
2020
227,244 sq ft
21,112 sq m
150,374 sq ft9
13,970 sq m
134
126
commencing
1 May 1993
2020
99-year leasehold
99-year leasehold
99-year leasehold
60-year leasehold
99-year leasehold
99-year leasehold
S$654.0 million
S$215.0 million
S$574.0 million
S$305.0 million
S$432.0 million
S$428.0 million
12.6%
13.4%
10.8%
3.6%
9.3%
5.4%
7.2%
7.1%
As % of total
portfolio appraised
value11
FY2022 Gross
revenue
FY2022 NPI
Committed
occupancy
Key tenants
Annual shopper
traffic in FY2022
Connection to
public transport
S$89.01 million
S$77.77 million12
S$47.62 million
S$54.85 million
S$41.36 million
S$9.41 million
S$31.46 million
S$23.94 million
S$30.51 million
S$28.77 million
S$68.45 million
100.0%
S$59.94 million12
99.0%
S$34.42 million
99.1%
S$40.89 million
100.0%
S$31.01 million
S$5.82 million
S$21.85 million
S$14.57 million
S$21.14 million
S$20.25 million
99.0%
88.9%
86.8%
93.7%
98.4%
96.4%
Metro, Courts, Food
Republic, FairPrice
Finest, Cathay
Cineplexes, Uniqlo
and Cantine by
Kopitiam
FairPrice Finest,
Cookhouse by
Koufu, Shaw
Theatres, Best
Denki, Uniqlo, Don
Don Donki and
Toys“R”Us
Cold Storage, Don
Don Donki, Muji,
Food Tempo and
Gain City
Kopitiam, OCBC Bank, United Overseas
Bank, Maybank, Guardian, McDonald’s,
Popular Bookstore, Sri Murugan
Supermarket, Arnold’s Fried Chicken and
Komala’s @ Yishun 10
21.4 million
19.3 million
15.9 million
47.6 million13
13.4 million
10.2 million
7.5 million
9.4 million
8.4 million
Woodlands MRT
Station (North South
Line and Thomson-
East Coast Line)
and Woodlands Bus
Interchange
Punggol MRT
Station (North-East
Line and the future
Cross Island Line)
and LRT station and
Punggol Temporary
Bus Interchange
Tampines MRT
Station (East-West
Line and Downtown
Line) and Tampines
Bus Interchange
Yishun MRT Station (North-South Line)
and Yishun Bus Interchange
Tiong Bahru MRT
Tiong Bahru MRT
Tampines MRT
Expo MRT Station
Hougang MRT
Pasir Ris MRT
Station (East-West
Station (East-West
Station (East-West
(East-West Line and
Station (North-
Station (East-West
Line)
Line)
Line and Downtown
Downtown Line)
East Line and the
Line and the future
Line) and Tampines
Bus Interchange
future Cross Island
Cross Island Line)
Line) and Hougang
and Pasir Ris Bus
Central Bus
Interchange
Interchange
FairPrice Finest,
National Council
The Food Market,
Challenger, Uniqlo,
FairPrice, Harvey
FairPrice,
Kopitiam, Golden
of Social Service,
PRIME Food &
Nike Unite, FairPrice
Norman and
Cookhouse by
Village and Uniqlo
Nippon Steel
Grocer, Haidilao
Finest and Daiso
Popular Bookstore
Koufu, McDonald’s,
Engineering,
Hotpot, Gymmboxx
Kyocera Asia
and Kiddy Palace
Popular Bookstore
and OCBC Bank
Pacific and
Interplex Precision
Technology
Not applicable
1 Frasers Centrepoint Trust owns 40.00% interest in Sapphire Star Trust (“SST”), a private trust that owns the interest in Waterway Point.
2 GFA includes area of both Tiong Bahru Plaza and Central Plaza.
3 The NLA includes the area of approximately 17,954 sq ft (1,668 sq m) currently used as Community/ Sports Facilities Scheme (“CSFS”) space.
4 The NLA includes the area of approximately 31,753 sq ft (2,950 sq m) currently used as CSFS space.
5 The NLA includes the area of approximately 28,355 sq ft (2,634 sq m) currently used as CSFS space.
6 The NLA includes the area of approximately 8,547 sq ft (794 sq m) currently used as CSFS space.
7 The NLA includes the area of approximately 3,391 sq ft (315 sq m) currently used as CSFS space.
8 The NLA includes the area of approximately 15,767 sq ft (1,465 sq m) currently used as CSFS space.
9 The NLA includes the area of approximately 21,744 sq ft (2,020 sq m) currently used as CSFS space.
10 Valuation is based on the agreed property value in the proposed acquisition of an additional 10.00% interest in Waterway Point as announced
on 12 September 2022.
11 Based on FCT's 40.00% share in SST.
12 Based on SST's 100% gross revenue and NPI for FY2022.
13 Combined shopper traffic for Northpoint City North Wing and South Wing.
Contents
Overview
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Portfolio
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Management
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Other Information
57
Causeway Point
Waterway Point1
Tampines 1
Northpoint City
North Wing
Yishun 10
Retail Podium
Tiong Bahru Plaza
Central Plaza
(Office property)
Century Square
Changi City Point
Hougang Mall
White Sands
40.00%-interest
purchased in 2019
40.00% interest
(100.00% interest)
S$525.0 million
(40.00% interest)
Northpoint 1: 2006
Northpoint 2: 2010
Northpoint 1:
S$249.3 million
Northpoint 2:
S$164.6 million
S$778.0 million
Gross floor area
Net lettable area
("GFA")
("NLA")
Number of leases
Number of tenants
629,160 sq ft
58,451 sq m
419,698 sq ft
38,991 sq m
226
216
542,493 sq ft
50,399 sq m
389,444 sq ft3
36,181 sq m
218
209
commencing
30 October 1995
commencing
18 May 2011
Year purchased
2006
380,898 sq ft
35,387 sq m
268,514 sq ft
24,946 sq m
174
170
commencing
1 April 1990
2020
376,578 sq ft
34,985 sq m
229,870 sq ft4
21,356 sq m
10,398 sq ft
966 sq m
10,344 sq ft
961 sq m
179
174
commencing 1 April 1990
2016
Title
99-year leasehold
99-year leasehold
99-year leasehold
99-year leasehold
519,197 sq ft2
48,235 sq m2
214,769 sq ft
19,953 sq m
150
143
99-year leasehold
commencing
1 September 1991
2020
172,121 sq ft5
15,991 sq m
27
27
99-year leasehold
commencing
1 September 1991
2020
327,226 sq ft
30,400 sq m
211,282 sq ft6
19,629 sq m
138
135
99-year leasehold
commencing
1 September 1992
2020
306,378 sq ft
28,463 sq m
208,453 sq ft7
19,366 sq m
139
128
60-year leasehold
commencing
30 April 2009
2014
232,662 sq ft
21,615 sq m
165,680 sq ft8
15,392 sq m
128
123
99-year leasehold
commencing
1 May 1994
2020
227,244 sq ft
21,112 sq m
150,374 sq ft9
13,970 sq m
134
126
99-year leasehold
commencing
1 May 1993
2020
Purchased price
S$606.2 million
S$530.2 million for
S$762.0 million
S$37.8 million
S$654.0 million
S$215.0 million
S$574.0 million
S$305.0 million
S$432.0 million
S$428.0 million
Valuation as at 30
S$1,323.0 million
S$1,312.5 million10
S$764.0 million
S$34.0 million
S$655.0 million
S$216.0 million
S$559.0 million
S$325.0 million
S$433.0 million
S$429.0 million
September 2022
As % of total
portfolio appraised
value11
revenue
FY2022 NPI
Committed
occupancy
Key tenants
Annual shopper
traffic in FY2022
Connection to
21.9%
8.7%
12.6%
13.4%
10.8%
3.6%
9.3%
5.4%
7.2%
7.1%
FY2022 Gross
S$89.01 million
S$77.77 million12
S$47.62 million
S$54.85 million
S$41.36 million
S$9.41 million
S$31.46 million
S$23.94 million
S$30.51 million
S$28.77 million
S$68.45 million
S$59.94 million12
S$34.42 million
100.0%
99.0%
99.1%
S$40.89 million
100.0%
S$31.01 million
99.0%
S$5.82 million
88.9%
S$21.85 million
86.8%
S$14.57 million
93.7%
S$21.14 million
98.4%
S$20.25 million
96.4%
Metro, Courts, Food
FairPrice Finest,
Cold Storage, Don
Kopitiam, OCBC Bank, United Overseas
Republic, FairPrice
Cookhouse by
Don Donki, Muji,
Bank, Maybank, Guardian, McDonald’s,
Finest, Cathay
Koufu, Shaw
Food Tempo and
Popular Bookstore, Sri Murugan
Cineplexes, Uniqlo
Theatres, Best
Gain City
Supermarket, Arnold’s Fried Chicken and
Komala’s @ Yishun 10
and Cantine by
Denki, Uniqlo, Don
Kopitiam
Don Donki and
Toys“R”Us
FairPrice Finest,
Kopitiam, Golden
Village and Uniqlo
21.4 million
19.3 million
15.9 million
47.6 million13
13.4 million
National Council
of Social Service,
Nippon Steel
Engineering,
Kyocera Asia
Pacific and
Interplex Precision
Technology
Not applicable
The Food Market,
PRIME Food &
Grocer, Haidilao
Hotpot, Gymmboxx
and Kiddy Palace
Challenger, Uniqlo,
Nike Unite, FairPrice
Finest and Daiso
FairPrice, Harvey
Norman and
Popular Bookstore
FairPrice,
Cookhouse by
Koufu, McDonald’s,
Popular Bookstore
and OCBC Bank
10.2 million
7.5 million
9.4 million
8.4 million
public transport
Station (North South
Station (North-East
Station (East-West
and Yishun Bus Interchange
Woodlands MRT
Punggol MRT
Tampines MRT
Yishun MRT Station (North-South Line)
Line and Thomson-
Line and the future
Line and Downtown
East Coast Line)
Cross Island Line)
Line) and Tampines
and Woodlands Bus
and LRT station and
Bus Interchange
Interchange
Punggol Temporary
Bus Interchange
Tiong Bahru MRT
Station (East-West
Line)
Tiong Bahru MRT
Station (East-West
Line)
Tampines MRT
Station (East-West
Line and Downtown
Line) and Tampines
Bus Interchange
Expo MRT Station
(East-West Line and
Downtown Line)
Hougang MRT
Station (North-
East Line and the
future Cross Island
Line) and Hougang
Central Bus
Interchange
Pasir Ris MRT
Station (East-West
Line and the future
Cross Island Line)
and Pasir Ris Bus
Interchange
1 Frasers Centrepoint Trust owns 40.00% interest in Sapphire Star Trust (“SST”), a private trust that owns the interest in Waterway Point.
2 GFA includes area of both Tiong Bahru Plaza and Central Plaza.
3 The NLA includes the area of approximately 17,954 sq ft (1,668 sq m) currently used as Community/ Sports Facilities Scheme (“CSFS”) space.
8 The NLA includes the area of approximately 15,767 sq ft (1,465 sq m) currently used as CSFS space.
9 The NLA includes the area of approximately 21,744 sq ft (2,020 sq m) currently used as CSFS space.
10 Valuation is based on the agreed property value in the proposed acquisition of an additional 10.00% interest in Waterway Point as announced
4 The NLA includes the area of approximately 31,753 sq ft (2,950 sq m) currently used as CSFS space.
5 The NLA includes the area of approximately 28,355 sq ft (2,634 sq m) currently used as CSFS space.
6 The NLA includes the area of approximately 8,547 sq ft (794 sq m) currently used as CSFS space.
7 The NLA includes the area of approximately 3,391 sq ft (315 sq m) currently used as CSFS space.
on 12 September 2022.
11 Based on FCT's 40.00% share in SST.
12 Based on SST's 100% gross revenue and NPI for FY2022.
13 Combined shopper traffic for Northpoint City North Wing and South Wing.
ANNUAL REPORT 2022 58
FRASERS CENTREPOINT TRUST
P RO P E RT Y P RO F I L ES
Description:
Shopping mall comprising 7
storeys and 1 basement level
Gross Floor Area:
58,451 square metres
(629,160 square feet)
Address:
1 Woodlands Square,
Causeway Point,
Singapore 738099
Net Lettable Area:
38,991 square metres
(419,698 square feet)
Car Park Lots:
735
Title:
99-year leasehold
commencing
30 October 1995
Year Acquired by FCT:
2006
Valuation1:
S$1,323.0 million
as at 30 September 2022
Annual Shopper Traffic:
21.4 million
(October 2021 – September
2022)
Key Tenants:
Metro, Courts, Food Republic,
FairPrice Finest, Cathay
Cineplexes, Uniqlo and
Cantine by Kopitiam
Causeway Point is the largest mall in Woodlands, one
of Singapore’s most populous residential estates. It is
located next to Woodlands regional bus interchange
and Woodlands MRT station, which serves as an
interchange station for the existing North-South line
and the new Thomson-East Coast line.
The mall has more than 200 stores and food outlets
spread over seven retail levels (including basement
level) and offers shoppers a one-stop shopping and
dining experience.
Causeway Point is an award-winning mall for its user-
friendliness, connectivity and safety aspects in its
design and features. The mall is also awarded the
Platinum Award in the BCA’s Green Mark certification
scheme for its environmentally friendly features.
CAUSEWAY POINT Contents
Overview
Business
Review
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Portfolio
Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
59
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September (S$’million)
FY2022
FY2021
Increase/ (Decrease)
Gross Revenue
Property Expenses
Net Property Income
Committed Occupancy
Shopper Traffic (million)
89.01
20.56
68.45
100.0%
21.4
82.58
21.67
60.91
98.6%
18.8
7.8%
(5.2%)
12.4%
1.4%-points
13.8%
TOP 10 TENANTS
TRADE CATEGORY ANALYSIS
As at 30 September 2022, Causeway Point has a total
of 226 (FY2021: 219) leases, excluding vacancy. The
total number of tenants as at 30 September 2022 is 216
(FY2021: 202) and the key tenants include Metro, Courts,
Food Republic, FairPrice Finest, Cathay Cineplexes,
Uniqlo and Cantine by Kopitiam, among others. The
top 10 tenants contributed collectively, 35.7% (FY2021:
37.2%) of the mall’s total GRI.
Food & Beverage contributed 31.9% (FY2021: 32.4%)
of the mall’s GRI, followed by Beauty & Healthcare at
12.0% (FY2021: 11.9%) and Fashion & Accessories at
11.7% (FY2021: 12.0%). These three trades accounted
for 55.6% of the mall’s GRI. The breakdown of the trade
category by NLA and GRI is presented below.
Top 10 Tenants
as at 30 September 2022
% of Mall’s GRI
Trade Category
(in descending order of GRI)
Metro (Private) Limited2
Courts (Singapore) Pte Ltd
BreadTalk Group3
NTUC FairPrice4
Cathay Cineplexes Pte Ltd
Uniqlo (Singapore) Pte Ltd
Soo Kee Group5
Hanbaobao Pte Ltd6
Dairy Farm Group7
Kopitiam8
Total
8.0%
6.6%
4.7%
4.0%
3.0%
2.2%
2.0%
1.8%
1.8%
1.6%
35.7%
Food & Beverage
Beauty & Healthcare
Fashion & Accessories
Department Store
Electrical & Electronics
Information & Technology
Sundry & Services
Leisure & Entertainment
Supermarket & Grocers
1
2
3
4
5
6
7
8
9
10 Jewellery & Watches
11 Homeware & Furnishing
12 Sports Apparel & Equipment
13 Books, Music, Arts & Craft, Hobbies
14 Education
15 Vacant
Total
By NLA
By GRI9
25.2% 31.9%
8.3% 12.0%
11.2% 11.7%
7.8%
14.3%
7.2%
8.9%
5.6%
4.1%
5.5%
3.6%
4.1%
9.4%
3.7%
5.8%
3.3%
1.1%
2.7%
2.2%
1.9%
1.8%
1.8%
3.0%
0.8%
1.1%
0.0%
0.0%
100.0% 100.0%
LEASE EXPIRY PROFILE10
As at 30 September 2022
FY2023
FY2024
FY2025
FY2026
FY2027 and
beyond
Total
Number of expiring leases
NLA of expiring leases (square feet)
Expiries as % of mall’s total leased area
Expiries as % of mall’s total GRI
76
106,945
25.5%
30.0%
72
149,553
35.6%
32.2%
68
88,443
21.1%
24.4%
8
37,782
9.0%
6.2%
2
36,975
226
419,698
8.8% 100.0%
7.2% 100.0%
Includes leases of Metro Department Store and Clinique Service Centre.
Includes Food Republic, BreadTalk and Toast Box.
Includes FairPrice Finest and Unity Pharmacy.
Includes Love Luxury by MoneyMax, SK Gold and SK Jewellery.
1 Valuation done by Savills Valuation And Professional Services (S) Pte Ltd as at 30 September 2022.
2
3
4
5
6 Operator of McDonald’s.
7
8 Operator of Cantine by Kopitiam.
9 Excludes gross turnover rent.
10 Based on committed leases as at 30 September 2022; vacant floor area is excluded.
Includes Guardian Pharmacy and 7-Eleven.
ANNUAL REPORT 2022 60
FRASERS CENTREPOINT TRUST
Description:
Shopping mall comprising 4
storeys and 2 basement levels
Net Lettable Area1:
36,181 square metres
(389,444 square feet)
Car Park Lots:
622
Year Acquired by FCT:
FCT owns 40.00% stake in
Sapphire Star Trust (“SST”)
that owns Waterway Point, the
dates of acquisition are as
follow:
• 331/3% acquired on
Title:
99-year leasehold
commencing 18 May 2011
11 July 2019
• 62/3% acquired on
18 September 2019
Address:
83 Punggol Central,
Waterway Point,
Singapore 828761
Gross Floor Area:
50,399 square metres
(542,493 square feet)
Valuation2:
S$1,312.5 million
Annual Shopper Traffic:
19.3 million
(October 2021 – September
2022)
Key Tenants:
FairPrice Finest, Cookhouse
by Koufu, Shaw Theatres, Best
Denki, Uniqlo, Don Don Donki
and Toys“R”Us
Waterway Point is a 4-storey suburban family
and lifestyle shopping mall located at 83 Punggol
Central, Singapore 828761, the heart of Singapore’s
first waterfront eco-town, Punggol. The mall enjoys
direct connectivity to public transportation system
including the Punggol MRT and LRT stations and a bus
interchange. It is also served by major expressways
including Tampines Expressway (TPE) and Seletar
Expressway (SLE) which provide vehicular accessibility
to other parts of Singapore.
The mall offers a diverse range of shopping, dining and
entertainment experiences, catering to their necessity
and convenience shopping as well as their leisure
needs. Notable retailers and restaurants at the mall
include Uniqlo, Daiso Japan, Din Tai Fung, Best Denki
and a 24-hour NTUC FairPrice Finest supermarket. The
mall also has a cineplex operated by Shaw Theatres
that features 11 screens, including an IMAX theatre.
Waterway Point is awarded the BCA Universal Design
(UD) GoldPlus and the BCA Green Mark GoldPlus
certifications.
WATERWAY POINTPROPERTY PROFILES Contents
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MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September (S$’million)
FY2022
FY2021
Increase/ (Decrease)
Gross Revenue3
Property Expenses3
Net Property Income3
Committed Occupancy
Shopper Traffic (million)
77.77
17.83
59.94
99.0%
19.3
70.65
16.74
53.91
98.4%
15.2
10.1%
6.5%
11.2%
0.6%-points
27.0%
TOP 10 TENANTS
TRADE CATEGORY ANALYSIS
As at 30 September 2022, Waterway Point has a total
of 218 (FY2021: 213) leases, excluding vacancy. The
total number of tenants as at 30 September 2022 is 209
(FY2021: 192) and the key tenants include FairPrice
Finest, Cookhouse by Koufu, Shaw Theatres, Best
Denki, Uniqlo, Don Don Donki and Toys“R”Us, among
others. The top 10 tenants contributed collectively,
25.4% (FY2021: 26.7%) of the mall’s total GRI.
Food & Beverage contributed 38.9% (FY2021: 38.6%)
of the mall’s GRI, followed by Beauty & Healthcare at
12.1% (FY2021: 11.6%). These two trades accounted
for 51.0% of the mall’s GRI. The breakdown of the trade
category by NLA and GRI is presented below.
Top 10 Tenants
as at 30 September 2022
% of
Mall’s GRI
Trade Category
(in descending order of GRI)
NTUC FairPrice4
Koufu Group5
Shaw Theatres Pte Ltd
BreadTalk Group6
Best Denki (Singapore) Pte Ltd
Uniqlo (Singapore) Pte Ltd
United Overseas Bank Limited
R E & S Enterprises Pte Ltd7
Maybank
Pan Pacific Retail Management (Singapore) Pte Ltd8
Total
6.8%
4.3%
3.3%
1.9%
1.8%
1.6%
1.6%
1.4%
1.4%
1.3%
25.4%
Food & Beverage
Beauty & Healthcare
Sundry & Services
Fashion & Accessories
Supermarket & Grocers
Leisure & Entertainment
Books, Music, Arts & Craft, Hobbies
Education
Information & Technology
1
2
3
4
5
6
7
8
9
10 Homeware & Furnishing
11 Electrical & Electronics
12 Jewellery & Watches
13 Sports Apparel & Equipment
14 Vacant
Total
By NLA
By GRI9
30.4% 38.9%
7.6% 12.1%
7.5% 10.7%
9.2%
9.9%
8.7%
12.7%
3.8%
9.6%
3.3%
6.0%
2.8%
3.4%
2.6%
1.9%
2.5%
3.9%
2.3%
3.7%
1.6%
0.8%
1.5%
1.6%
0.0%
1.0%
100.0% 100.0%
LEASE EXPIRY PROFILE10
As at 30 September 2022
FY2023
FY2024
FY2025
FY2026
FY2027 and
beyond
Total
Number of expiring leases
NLA of expiring leases (square feet)
Expiries as % of mall’s total leased area
Expiries as % of mall’s total GRI
51
58,356
15.9%
19.8%
65
105,471
28.7%
31.4%
84
83,353
22.7%
28.5%
15
71,746
19.5%
14.8%
218
3
48,918
367,844
13.2% 100.0%
5.5% 100.0%
1 The NLA includes the area of approximately 17,954 square feet (1,668 square metres) currently used as CSFS space.
2 Valuation is based on the agreed property value in the proposed acquisition of an additional 10.0% interest in Waterway Point as announced on
12 September 2022.
Includes FairPrice Finest and Unity Pharmacy.
3 SST’s gross revenue and NPI for FY2022 on 100% basis.
4
5 Operator of Cookhouse by Koufu.
6
Includes BreadTalk, Toast Box and Din Tai Fung.
7 Operator of Ichiban Boshi & Kuriya Japanese Market.
8 Operator of Don Don Donki.
9 Excludes gross turnover rent.
10 Based on committed leases as at 30 September 2022; vacant floor area and CSFS leases are excluded.
ANNUAL REPORT 2022 62
FRASERS CENTREPOINT TRUST
Description:
Shopping mall comprising 5
storeys and 2 basement levels
Gross Floor Area:
35,387 square metres
(380,898 square feet)
Title:
99-year leasehold
commencing 1 April 1990
Address:
10 Tampines Central 1,
Tampines 1,
Singapore 529536
Net Lettable Area:
24,946 square metres
(268,514 square feet)
Car Park Lots:
203
Year Acquired by FCT:
2020
Valuation1:
S$764.0 million
Annual Shopper Traffic:
15.9 million
(October 2021 – September
2022)
Key Tenants:
Cold Storage, Don Don Donki,
Muji, Food Tempo and Gain
City
Tampines 1 is a 5-storey retail mall with 2 basement
levels located next to the Tampines MRT interchange
and the Tampines Bus Interchange at the heart of
Tampines, one of the most populous residential estates
and the Eastern regional centre of Singapore. Tampines
1 offers shoppers and diners wide selections of F&B,
lifestyle, beauty and fashion brands including household
names such as Cold Storage and Daiso. Tampines 1
draws its shoppers and diners from the populous
residential catchment, commuter traffic and working
population in the Tampines, Simei, Bedok and Pasir Ris
regions.
Tampines 1 is awarded the BCA Green Mark GoldPlus
certification.
TAMPINES 1PROPERTY PROFILES Contents
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MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September (S$’million)
FY2022
FY2021
Increase/ (Decrease)
Gross Revenue
Property Expenses
Net Property Income
Committed Occupancy
Shopper Traffic (million)
47.62
13.20
34.42
99.1%
15.9
41.46
11.66
29.80
97.1%
14.4
14.9%
13.2%
15.5%
2.0%-points
10.4%
TOP 10 TENANTS
TRADE CATEGORY ANALYSIS
As at 30 September 2022, Tampines 1 has a total of
174 (FY2021: 169) leases, excluding vacancy. The
total number of tenants as at 30 September 2022 is
170 (FY2021: 158) and the key tenants include Cold
Storage, Don Don Donki, Muji, Food Tempo and Gain
City, among others. The top 10 tenants contributed
collectively 21.7% (FY2021: 21.2%) of the mall’s total
GRI.
Top 10 Tenants
as at 30 September 2022
Dairy Farm Group2
Pan Pacific Retail Management (Singapore) Pte Ltd3
Beauty One International4
Eadeco (Singapore) Pte Ltd5
Muji (Singapore) Pte Ltd
Kopitiam
RMG Group6
Bank of China Limited
Gain City
United Overseas Bank Limited
Total
% of
Mall’s GRI
3.7%
2.6%
2.1%
2.0%
2.0%
1.9%
1.9%
1.9%
1.8%
1.8%
21.7%
Food & Beverage contributed 33.7% of the mall’s GRI
(FY2021: 33.4%), followed by Beauty & Healthcare at
21.5% (FY2021: 22.7%). These two trades accounted
for 55.2% of the mall’s GRI. The breakdown of the trade
category by NLA and GRI is presented below.
Trade Category
(in descending order of GRI)
Food & Beverage
1
Beauty & Healthcare
2
Fashion & Accessories
3
Sundry & Services
4
Supermarket & Grocers
5
Homeware & Furnishing
6
Books, Music, Arts & Craft, Hobbies
7
Information & Technology
8
Electrical & Electronics
9
10 Sports Apparel & Equipment
11 Jewellery & Watches
12 Leisure & Entertainment
13 Vacant
Total
By NLA
By GRI7
26.5% 33.7%
18.3% 21.5%
14.9% 12.6%
8.5%
7.5%
6.4%
2.9%
1.8%
1.8%
1.8%
1.0%
0.5%
0.0%
100.0% 100.0%
6.9%
11.2%
8.9%
2.3%
2.5%
2.6%
1.6%
0.4%
3.0%
0.9%
LEASE EXPIRY PROFILE8
As at 30 September 2022
FY2023
FY2024
FY2025
FY2026
FY2027 and
beyond
Total
Number of expiring leases
NLA of expiring leases (square feet)
Expiries as % of mall’s total leased area
Expiries as % of mall’s total GRI
76
93,054
35.0%
32.7%
60
82,332
30.9%
37.3%
32
61,573
23.1%
22.7%
5
16,450
6.2%
4.6%
1
12,810
174
266,219
4.8% 100.0%
2.7% 100.0%
1 Valuation done by Jones Lang LaSalle Property Consultants Pte Ltd as at 30 September 2022.
2 Operator of Cold Storage supermarket.
3 Operator of Don Don Donki.
4
5
6 Operator of Raffles Medical Clinic and Raffles Dental/ Women’s & Children’s Centre.
7 Excludes gross turnover rent.
8 Based on committed leases as at 30 September 2022; vacant floor area is excluded.
Includes Shakura Pigmentation Beauty, London Weight Management and New York Skin Solutions.
Includes Hooga and AKEMIUCHI.
ANNUAL REPORT 2022 64
FRASERS CENTREPOINT TRUST
NORTHPOINT CITY NORTH WING
YISHUN 10 RETAIL PODIUM
Description:
Shopping mall
comprising 6 storeys
and 2 basement levels
Address:
930 Yishun Avenue 2,
Northpoint City,
Singapore 769098
Gross Floor Area:
34,985 square metres
(376,578 square feet)
Net Lettable Area1:
21,356 square metres
(229,870 square feet)
Valuation2:
S$778.0 million
Car Park Lots:
256
Title:
99-year leasehold
commencing 1 April
1990
Year Acquired
by FCT:
2006 (Northpoint 1),
2010 (Northpoint 2)
Annual Shopper
Traffic:
47.6 million3
(October 2021 –
September 2022)
Key Tenants:
Kopitiam, OCBC
Bank, United
Overseas Bank,
Maybank, Guardian,
McDonald’s and
Popular Bookstore
Description:
10 retail units on
the first storey in a
cinema complex with
basement carpark
Address:
51 Yishun Central 1,
Yishun 10,
Singapore 768794
Gross Floor Area:
966 square metres
(10,398 square feet)
Net Lettable Area1:
961 square metres
(10,344 square feet)
Title:
99-year leasehold
commencing 1 April
1990
Year Acquired
by FCT:
2016
Valuation2:
S$34.0 million
Key Tenants:
Sri Murugan
Supermarket, Arnold’s
Fried Chicken and
Komala’s @ Yishun 10
Northpoint City North Wing is seamlessly integrated
with the Northpoint City South Wing (owned by FCT’s
sponsor, Frasers Property Limited and TCC Prosperity
Limited) to form Northpoint City, with over 400 F&B and
retailers spread over more than 500,000 square feet of
space.
Guardian, McDonald’s and Popular Bookstore. The mall
enjoys high shopper traffic flow from the surrounding
residential estate, schools and the commuters from
Yishun bus interchange which is connected to the mall.
Northpoint City North Wing has also been awarded the
BCA Green Mark Gold certification.
Northpoint City North Wing offers six retail levels of
retail and services (including two basement levels).
Key tenants at Northpoint City North Wing include
Kopitiam, OCBC Bank, United Overseas Bank, Maybank,
FCT owns the ground floor retail of Yishun 10, a strata-
titled retail development located next to Northpoint City
North Wing.
NORTHPOINT CITYNORTH WING ANDYISHUN 10 RETAIL PODIUMPROPERTY PROFILES Contents
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65
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September (S$’million)
FY2022
FY2021
Increase/ (Decrease)
Gross Revenue
Property Expenses
Net Property Income
Committed Occupancy
Shopper Traffic (million)
TOP 10 TENANTS (NORTHPOINT CITY
NORTH WING AND YISHUN 10 RETAIL
PODIUM)
As at 30 September 2022, Northpoint City North
Wing and Yishun 10 Retail Podium have a total of 179
(FY2021: 180) leases. The total number of tenants as
at 30 September 2022 is 174 (FY2021: 178) and the
key tenants include Kopitiam, OCBC Bank, United
Overseas Bank, MayBank, Guardian, McDonald’s and
Popular Bookstore, among others. The top 10 tenants
contributed collectively 26.4% (FY2021: 28.9%) of the
total GRI.
Top 10 Tenants
as at 30 September 2022
Kopitiam4
Oversea-Chinese Banking Corporation Limited
United Overseas Bank Limited
Minor Group5
Maybank
Dairy Farm Group6
Soo Kee Group7
Cotton On Singapore Pte Ltd8
Hanbaobao Pte Ltd9
Popular Book Company (Pte.) Limited
Total
LEASE EXPIRY PROFILE11
% of
Mall’s GRI
6.6%
3.2%
2.7%
2.4%
2.2%
2.1%
1.9%
1.9%
1.8%
1.6%
26.4%
54.85
13.96
40.89
100.0%
47.6
50.84
13.10
37.74
100.0%
43.0
7.9%
6.6%
8.3%
0.0%-point
10.7%
TRADE CATEGORY ANALYSIS
Food & Beverage contributed 41.7% (FY2021: 41.4%)
of the mall’s GRI, followed by Beauty & Healthcare at
13.0% (FY2021: 12.7%) and Sundry & Services at 13.0%
(FY2021: 13.1%). These three trades accounted for
67.7% of the mall’s GRI. The breakdown of the trade
category by NLA and GRI is presented below.
Trade Category
(in descending order of GRI)
Food & Beverage
Beauty & Healthcare
Sundry & Services
Fashion & Accessories
Supermarket & Grocers
Jewellery & Watches
Books, Music, Arts & Craft, Hobbies
Homeware & Furnishing
Sports Apparel & Equipment
1
2
3
4
5
6
7
8
9
10 Information & Technology
11 Education
12 Leisure & Entertainment
13 Vacant
Total
By NLA
By GRI10
39.9% 41.7%
11.1% 13.0%
8.5% 13.0%
9.1% 11.0%
6.4%
3.4%
3.0%
2.2%
1.9%
1.9%
1.5%
1.0%
0.0%
100.0% 100.0%
11.6%
1.6%
6.2%
2.7%
2.4%
2.5%
2.1%
2.3%
0.0%
As at 30 September 2022
FY2023
FY2024
FY2025
FY2026
FY2027 and
beyond
Total
Number of expiring leases
NLA of expiring leases (square feet)
Expiries as % of mall’s total leased area
Expiries as % of mall’s total GRI
57
50,453
24.2%
30.3%
68
76,891
36.9%
36.0%
44
44,330
21.3%
25.1%
5
15,247
7.3%
2.9%
179
5
21,540
208,461
10.3% 100.0%
5.7% 100.0%
1 The NLA includes the area of approximately 31,753 square feet (2,950 square metres) currently used as CSFS space.
2 Valuation done by Savills Valuation and Professional Services (S) Pte Ltd as at 30 September 2022.
3 Refers to the total shopper traffic for both Northpoint City North Wing (owned by FCT) and South Wing (partly owned by Frasers Property Limited).
4 Operator of Kopitiam food court.
5
6
7
8
9 Operator of McDonald’s.
10 Excludes gross turnover rent.
11 Based on committed leases as at 30 September 2022; vacant floor area and CSFS leases are excluded, for both Northpoint City North Wing and
Includes Sanook Kitchen and Xin Wang HK Café.
Includes Guardian Pharmacy and 7-Eleven.
Includes SK Gold and Moneymax.
Includes Cotton On and Rubi Shoes.
Yishun 10 Retail Podium.
ANNUAL REPORT 2022 66
FRASERS CENTREPOINT TRUST
Description:
Shopping mall comprising 4
storeys and 3 basement levels
Net Lettable Area:
19,953 square metres
(214,769 square feet)
Title:
99-year leasehold
commencing 1 September
1991
Annual Shopper Traffic:
13.4 million
(October 2021 – September
2022)
Address:
302 Tiong Bahru Road,
Tiong Bahru Plaza,
Singapore 168732
Gross Floor Area1:
48,235 square metres
(519,197 square feet)
Car Park Lots:
338 carpark lots are shared
between Tiong Bahru Plaza
and Central Plaza
Year Acquired by FCT:
2020
Valuation2:
S$655.0 million
Key Tenants:
FairPrice Finest, Kopitiam,
Golden Village and Uniqlo
Tiong Bahru Plaza is located in the charming Tiong
Bahru estate with rich local heritage. The mall is near
the city area and is easily accessible through public
transport as it is directly connected to the Tiong Bahru
MRT station on the East-West line and a public bus
station which is served by many public bus routes.
The mall offers a wide variety of retail, grocery,
entertainment and F&B options for shoppers and
diners. It draws its shoppers from the immediate
residential catchment residing in the Tiong Bahru and
Bukit Merah estates, as well as the working and student
population in the vicinity and the adjacent office,
Central Plaza. Key retailers and F&B establishments
include FairPrice Finest, Kopitiam, Golden Village and
Uniqlo.
Tiong Bahru Plaza has undergone several asset
enhancement and refurbishment works and the last
major refurbishment was completed in December 2016.
The mall is also awarded the BCA Green Mark Platinum
certification for its environmentally friendly features.
TIONG BAHRU PLAZAPROPERTY PROFILES Contents
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67
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September (S$’million)
FY2022
FY2021
Increase/ (Decrease)
Gross Revenue
Property Expenses
Net Property Income
Committed Occupancy
Shopper Traffic (million)
41.36
10.35
31.01
99.0%
13.4
36.27
9.19
27.08
98.3%
11.6
14.0%
12.6%
14.5%
0.7%-points
15.5%
TOP 10 TENANTS
TRADE CATEGORY ANALYSIS
As at 30 September 2022, Tiong Bahru Plaza has a total
of 150 (FY2021: 150) leases, excluding vacancy. The
total number of tenants as at 30 September 2022 is 143
(FY2021: 136) and the key tenants include FairPrice
Finest, Kopitiam, Golden Village and Uniqlo, among
others. The top 10 tenants contributed collectively
29.0% (FY2021: 28.8%) of the total GRI.
Food & Beverage contributed 38.8% (FY2021: 39.0%)
of the mall’s GRI, followed by Beauty & Healthcare at
20.7% (FY2021: 20.6%) and Sundry & Services at 12.3%
(FY2021: 10.8%). These three trades accounted for
71.8% of the mall’s GRI. The breakdown of the trade
category by NLA and GRI is presented below.
Top 10 Tenants
as at 30 September 2022
NTUC FairPrice
Kopitiam3
Beauty One International4
Golden Village Multiplex Pte Ltd
United Overseas Bank Limited
Hanbaobao Pte Ltd5
DBS Bank Ltd
Jean Yip Salon Pte Ltd6
Oversea-Chinese Banking Corporation Limited
Watson’s Personal Care Stores Pte Ltd
Total
% of
Mall’s GRI
5.0%
4.8%
3.5%
3.1%
2.4%
2.3%
2.1%
2.0%
2.0%
1.8%
29.0%
Trade Category
(in descending order of GRI)
Food & Beverage
Beauty & Healthcare
Sundry & Services
Fashion & Accessories
Supermarket & Grocers
Leisure & Entertainment
Information & Technology
Jewellery & Watches
Education
1
2
3
4
5
6
7
8
9
10 Homeware & Furnishing
11 Books, Music, Arts & Craft, Hobbies
12 Sports Apparel & Equipment
13 Vacant
Total
By NLA
By GRI7
29.6% 38.8%
16.9% 20.7%
9.9% 12.3%
8.5%
4.9%
4.2%
2.9%
2.2%
2.2%
1.5%
1.4%
0.4%
0.0%
100.0% 100.0%
10.3%
7.4%
10.8%
3.6%
1.0%
3.6%
3.3%
2.3%
0.3%
1.0%
LEASE EXPIRY PROFILE8
As at 30 September 2022
FY2023
FY2024
FY2025
FY2026
FY2027 and
beyond
Total
Number of expiring leases
NLA of expiring leases (square feet)
Expiries as % of mall’s total leased area
Expiries as % of mall’s total GRI
37
74,557
35.1%
28.9%
45
71,861
33.8%
29.5%
56
44,868
21.1%
31.8%
9
15,106
7.1%
6.9%
150
3
212,561
6,169
2.9% 100.0%
2.9% 100.0%
Includes Yun Nam Hair Care, Victoria Facelift, New York Skin Solutions, London Weight Management and Dorra Slimming.
1 Gross Floor Area (GFA) includes area of both Tiong Bahru Plaza and Central Plaza.
2 Valuation done by Jones Lang LaSalle Property Consultants Pte Ltd as at 30 September 2022.
3 Operator of Kopitiam food court.
4
5 Operator of McDonald’s.
6
7 Excludes gross turnover rent.
8 Based on committed leases as at 30 September 2022; vacant floor area is excluded.
Includes Jean Yip salon and Cheryl W Wellness & Weight Management.
ANNUAL REPORT 2022 68
FRASERS CENTREPOINT TRUST
Description:
20-storey office building
Address:
298 Tiong Bahru Road,
Central Plaza,
Singapore 168730
Gross Floor Area1:
48,235 square metres
(519,197 square feet)
Net Lettable Area2:
15,991 square metres
(172,121 square feet)
Car Park Lots:
338 carpark lots are shared
between Tiong Bahru Plaza
and Central Plaza
Title:
99-year leasehold
commencing 1 September
1991
Year Acquired by FCT:
2020
Valuation3:
S$216.0 million
Annual Shopper Traffic:
Not applicable
Key Tenants:
National Council of Social
Service, Nippon Steel
Engineering, Kyocera
Asia Pacific and Interplex
Precision Technology
Central Plaza is a 20-storey office building with a total
net lettable space of approximately 172,000 square
feet. Central Plaza is the office component of the
mixed development comprising the shopping mall
Tiong Bahru Plaza and Central Plaza. Central Plaza
is directly connected to Tiong Bahru Plaza and both
share a common car park with 338 parking lots. It offers
excellent location advantage with close proximity to
the Central Business District that is complemented
with connection to public transport system and the
amenities of an adjacent shopping mall.
Central Plaza is awarded the BCA Green Mark Platinum
certification for its environmentally friendly features.
CENTRAL PLAZAPROPERTY PROFILES Contents
Overview
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Review
Asset
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69
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September (S$’million)
FY2022
FY2021
Increase/ (Decrease)
Gross Revenue
Property Expenses
Net Property Income
Committed Occupancy
TOP 10 TENANTS
9.41
3.59
5.82
88.9%
10.90
3.35
7.55
91.8%
(13.6%)
7.3%
(22.9%)
(2.9%-points)
As at 30 September 2022, Central Plaza has a total of 27 (FY2021: 21) leases, excluding vacancy. The total number
of office tenants as at 30 September 2022 is 27 (FY2021: 21) and the key tenants include National Council of Social
Service, Nippon Steel Engineering, Kyocera Asia Pacific and Interplex Precision Technology, among others. The top
10 tenants contributed collectively 71.0% (FY2021: 83.2%) of the total GRI.
Top 10 Tenants
as at 30 September 2022
National Council of Social Service
Nippon Steel Engineering Co., Ltd.
Kyocera Asia Pacific Pte. Ltd.
Interplex Precision Technology (Singapore) Pte. Ltd.
Molnlycke Health Care Asia-Pacific Pte Ltd
BGC Group Pte. Ltd.
Prive Jewel Pte. Ltd.
MC Academy @ Central Plaza Pte. Ltd.
Agency For Integrated Care Pte. Ltd.
Blujay Solutions Pte. Ltd.
Total
LEASE EXPIRY PROFILE4
% of
Mall’s GRI
14.8%
10.1%
9.3%
8.5%
6.4%
6.1%
4.6%
4.3%
3.5%
3.4%
71.0%
As at 30 September 2022
FY2023
FY2024
FY2025
FY2026
FY2027 and
beyond
Total
Number of expiring leases
NLA of expiring leases (square feet)
Expiries as % of mall’s total leased area
Expiries as % of mall’s total GRI
7
29,319
22.9%
27.8%
10
36,698
28.7%
33.5%
6
32,454
25.4%
31.1%
2
6,275
4.9%
5.8%
27
2
23,100
127,846
18.1% 100.0%
1.8% 100.0%
1 Gross Floor Area (GFA) includes area of both Tiong Bahru Plaza and Central Plaza.
2 The NLA includes the area of approximately 28,355 square feet (2,634 square metres) currently used as Community/ Sports Facilities Scheme
(CSFS) space.
3 Valuation done by Jones Lang LaSalle Property Consultants Pte Ltd as at 30 September 2022.
4 Based on committed leases as at 30 September 2022; vacant floor area and CSFS leases are excluded.
ANNUAL REPORT 2022 70
FRASERS CENTREPOINT TRUST
Description:
Shopping mall comprising 5
storeys and 3 basement levels
Gross Floor Area:
30,400 square metres
(327,226 square feet)
Title:
99-year leasehold
commencing 1 September
1992
Annual Shopper Traffic:
10.2 million
(October 2021 – September
2022)
Address:
2 Tampines Central 5,
Century Square,
Singapore 529509
Net Lettable Area1:
19,629 square metres
(211,282 square feet)
Year Acquired by FCT:
2020
Car Park Lots:
298
Valuation2:
S$559.0 million
Key Tenants:
The Food Market, PRIME
Food & Grocer, Haidilao
Hotpot, Gymmboxx and Kiddy
Palace
Century Square is a 5-storey retail mall with 3 basement
levels located in the heart of Tampines Central and is
in close proximity to the Tampines MRT interchange
and the Tampines Bus Interchange. The mall draws
its shopper traffic from the populous residential
catchment, commuter traffic and working population in
the Tampines, Simei, Bedok and Pasir Ris regions.
The mall completed an extensive asset enhancement
and refurbishment works in May 2018. Shoppers can
enjoy a wide array of family-friendly services and activity
spaces such as larger nursing rooms, family car park
lots, roof deck with communal spaces, 24-hour gym and
National Library Board’s first-of-its-kind virtual library in
a mall at Level 4. The key tenants at the mall include The
Food Market, PRIME Food & Grocer, Haidilao Hotpot,
Gymmboxx and Kiddy Palace.
Century Square is awarded the BCA Green Mark
Platinum certification for its environmentally friendly
features.
CENTURY SQUAREPROPERTY PROFILES Contents
Overview
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Review
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71
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September (S$’million)
FY2022
FY2021
Increase/ (Decrease)
Gross Revenue
Property Expenses
Net Property Income
Committed Occupancy
Shopper Traffic (million)
31.46
9.61
21.85
86.8%
10.2
30.95
6.59
24.36
91.8%
10.2
1.6%
45.8%
(10.3%)
(5.0%-points)
0.0%
TOP 10 TENANTS
TRADE CATEGORY ANALYSIS
As at 30 September 2022, Century Square has a total
of 138 (FY2021: 136) leases, excluding vacancy. The
total number of tenants as at 30 September 2022 is
135 (FY2021: 124) and the key tenants include The
Food Market, PRIME Food & Grocer, Haidilao Hotpot,
Gymmboxx and Kiddy Palace, among others. The top 10
tenants contributed collectively 27.6% (FY2021: 32.2%)
of the mall’s total GRI.
Top 10 Tenants
as at 30 September 2022
BreadTalk Group3
Mahota Group4
Singapore Hai Di Lao Dining Pte. Ltd.
Foot Locker Singapore Pte. Ltd.
Gymmboxx Pte. Ltd.
Jean Yip Group5
Kiddy Palace Pte Ltd
Lao Huo Tang Group
The Learninglab Education Centre Pte Ltd
Bata Shoe (Singapore) Private Limited
Total
% of
Mall’s GRI
6.8%
4.4%
3.1%
2.6%
2.3%
1.8%
1.7%
1.7%
1.6%
1.6%
27.6%
Food & Beverage contributed 41.1% (FY2021: 36.6%)
of the mall's GRI, followed by Beauty & Healthcare at
21.6% (FY2021: 16.7%). These two trades accounted
for 62.7% of the mall’s GRI. The breakdown of the trade
category by NLA and GRI is presented below.
Trade Category
(in descending order of GRI)
Food & Beverage
Beauty & Healthcare
Fashion & Accessories
Supermarket & Grocers
Sports Apparel & Equipment
Homeware & Furnishing
Education
Leisure & Entertainment
Books, Music, Arts & Craft, Hobbies
1
2
3
4
5
6
7
8
9
10 Sundry & Services
11 Jewellery & Watches
12 Information & Technology
13 Electrical & Electronics
14 Vacant
Total
By NLA
By GRI6
30.0% 41.1%
17.4% 21.6%
9.9% 13.0%
7.0%
4.0%
3.2%
3.1%
1.5%
1.4%
1.3%
1.2%
1.2%
0.4%
0.0%
100.0% 100.0%
10.5%
4.2%
2.4%
4.7%
3.4%
2.0%
1.0%
0.5%
0.5%
0.3%
13.2%
LEASE EXPIRY PROFILE7
As at 30 September 2022
FY2023
FY2024
FY2025
FY2026
FY2027 and
beyond
Total
Number of expiring leases
NLA of expiring leases (square feet)
Expiries as % of mall’s total leased area
Expiries as % of mall’s total GRI
39
57,037
32.4%
26.3%
63
75,220
42.8%
49.0%
31
31,222
17.7%
20.3%
5
12,490
7.1%
4.4%
0
0
138
175,969
0.0% 100.0%
0.0% 100.0%
1 The NLA includes the area of approximately 8,547 square feet (794 square metres) currently used as CSFS space.
2 Valuation done by Jones Lang LaSalle Property Consultants Pte Ltd as at 30 September 2022.
3 Operator of The Food Market.
4 Operator of PRIME Food & Grocer and Shi Tang by Mahota Kitchen.
5 Operator of 6 Elements Hair Spa and Cheryl W Wellness & Weight Management.
6 Excludes gross turnover rent.
7 Based on committed leases as at 30 September 2022; vacant floor area and CSFS leases are excluded.
ANNUAL REPORT 2022 72
FRASERS CENTREPOINT TRUST
Description:
Shopping mall comprising 3
storeys and 1 basement level
Gross Floor Area:
28,463 square metres
(306,378 square feet)
Title:
60-year leasehold
commencing 30 April 2009
Address:
5 Changi Business Park
Central 1, Changi City Point,
Singapore 486038
Net Lettable Area1:
19,366 square metres
(208,453 square feet)
Car Park Lots2:
627
Year Acquired by FCT:
2014
Valuation3:
S$325.0 million
Annual Shopper Traffic:
7.5 million
(October 2021 – September
2022)
Key Tenants:
Challenger, Uniqlo, Nike Unite,
FairPrice Finest and Daiso
Changi City Point is located in Changi Business Park,
directly connected to the Singapore Expo MRT station
and near one of Singapore’s largest convention and
exhibition venues, Singapore Expo. The mall offers a
diverse shopping and dining experience especially
for the working population in Changi Business Park,
residents in nearby precincts such as Tampines, Bedok
and Simei and the visitors to Singapore Expo. Changi
City Point features fashion and sports retailers including
Uniqlo, Cotton On, Nike Unite, Timberland, Adidas
Outlet, ASICS Factory Outlet, New Balance, PUMA
Outlet, Liv Activ and many other outlets stores.
Shoppers can do their grocery shopping at the
FairPrice Finest supermarket. Restaurants at the mall
include McDonald’s, Jollibee, Ichiban Sushi and Han’s.
Families can also enjoy the landscaped rooftop garden
that features a wet and dry children’s playground.
Changi City Point is awarded the BCA Green Mark
GoldPlus certification.
CHANGI CITY POINTPROPERTY PROFILES Contents
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73
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September (S$’million)
FY2022
FY2021
Increase/ (Decrease)
Gross Revenue
Property Expenses
Net Property Income
Committed Occupancy
Shopper Traffic (million)
23.94
9.37
14.57
93.7%
7.5
22.39
8.96
13.43
94.7%
6.4
6.9%
4.5%
8.4%
(1.0%-points)
17.2%
TOP 10 TENANTS
TRADE CATEGORY ANALYSIS
As at 30 September 2022, Changi City Point has a
total of 139 (FY2021: 134) leases, excluding vacancy.
The total number of tenants as at 30 September 2022
was 128 (FY2021: 123) and the key tenants include
Challenger, Uniqlo, FairPrice Finest and Daiso, among
others. The top 10 tenants contributed collectively
22.6% (FY2021: 28.3%) of the mall's total GRI.
Top 10 Tenants
as at 30 September 2022
Manna Pot Catering4
Cotton On Singapore Pte. Ltd.
Japan Foods Holding5
Challenger Technologies Limited
RE & S Group6
Daiso7
Wing Tai Group8
Golden Beeworks Pte Ltd9
Uniqlo (Singapore) Pte Ltd
EN Group10
Total
LEASE EXPIRY PROFILE12
% of
Mall’s GRI
3.1%
2.4%
2.4%
2.3%
2.2%
2.2%
2.1%
2.1%
2.0%
1.8%
22.6%
Food & Beverage contributed 50.3% (FY2021: 54.1%)
of the mall’s GRI, followed by Fashion & Accessories at
22.4% (FY2021: 20.5%). These two trades accounted
for 72.7% of the mall’s GRI. The breakdown of the trade
category by NLA and GRI is presented below.
Trade Category
(in descending order of GRI)
Food & Beverage
Fashion & Accessories
Sports Apparel & Equipment
Beauty & Healthcare
Information & Technology
Supermarket & Grocers
Sundry & Services
Homeware & Furnishing
Leisure & Entertainment
1
2
3
4
5
6
7
8
9
10 Jewellery & Watches
11 Vacant
Total
By NLA
By GRI11
35.6% 50.3%
20.2% 22.4%
14.6% 11.7%
5.0%
3.3%
2.6%
2.2%
2.0%
0.3%
0.2%
0.0%
100.0% 100.0%
5.3%
3.3%
6.9%
2.0%
5.0%
0.7%
0.1%
6.3%
As at 30 September 2022
FY2023
FY2024
FY2025
FY2026
FY2027 and
beyond
Total
Number of expiring leases
NLA of expiring leases (square feet)
Expiries as % of mall’s total leased area
Expiries as % of mall’s total GRI
53
65,160
33.9%
32.8%
42
48,203
25.1%
28.4%
35
56,913
29.6%
28.6%
8
15,188
7.9%
7.0%
139
1
6,728
192,192
3.5% 100.0%
3.2% 100.0%
1 The NLA includes the area of approximately 3,391 square feet (315 square metres) currently used as Community/ Sports Facilities Scheme
(CSFS) space.
2 The car park lots are shared between Changi City Point, Capri by Fraser and ONE@Changi City.
3 Valuation done by Savills Valuation and Professional Services (S) Pte Ltd as at 30 September 2022.
4 Operator of The White Tiffin and Manna Bistro & Grill.
5 Operator of Menzo Butao and Yakiniku Shokudo.
6 Operator of Ichiban Sushi.
7
8
9 Operator of Jollibee.
10 Operator of Aburi-EN and Tamago-EN.
11 Excludes gross turnover rent.
12 Based on committed leases as at 30 September 2022; vacant floor area and CSFS leases are excluded.
Includes Daiso and Threeppy.
Includes Adidas, Cath Kidston and G2000 outlets.
ANNUAL REPORT 2022 74
FRASERS CENTREPOINT TRUST
Description:
Shopping mall comprising 5
storeys and 2 basement levels
Gross Floor Area:
21,615 square metres
(232,662 square feet)
Title:
99-year leasehold
commencing 1 May 1994
Address:
90 Hougang Avenue 10,
Hougang Mall,
Singapore 538766
Net Lettable Area1:
15,392 square metres
(165,680 square feet)
Car Park Lots:
152
Year Acquired by FCT:
2020
Valuation2:
S$433.0 million
Annual Shopper Traffic:
9.4 million
(October 2021 – September
2022)
Key Tenants:
FairPrice, Harvey Norman and
Popular Bookstore
Hougang Mall is a 5-storey retail mall with 2 basement
levels located near Hougang MRT station and Hougang
Central Bus Interchange. The mall is popular with the
residents and the communities of Hougang, Kovan and
even Sengkang and Buangkok which are residential
estates further afield.
The mall offers a wide selection of daily necessities
and essential services such as supermarket, food court,
home furnishing retailers and clinics. Notable brands
and services in the mall include FairPrice, Harvey
Norman and Popular Bookstore.
HOUGANG MALLPROPERTY PROFILES Contents
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75
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September (S$’million)
FY2022
FY2021
Increase/ (Decrease)
Gross Revenue
Property Expenses
Net Property Income
Committed Occupancy
Shopper Traffic (million)
30.51
9.37
21.14
98.4%
9.4
26.64
8.38
18.26
97.8%
8.9
14.5%
11.7%
15.8%
0.6%-points
5.6%
TOP 10 TENANTS
TRADE CATEGORY ANALYSIS
As at 30 September 2022, Hougang Mall has a total of
128 (FY2021: 126) leases, excluding vacancy. The total
number of tenants as at 30 September 2022 is 123
(FY2021: 118) and the key tenants include FairPrice,
Harvey Norman and Popular Bookstore, among others.
The top 10 tenants contributed collectively 32.6%
(FY2021: 35.0%) of the mall's total GRI.
Top 10 Tenants
as at 30 September 2022
NTUC FairPrice3
Yum!4
Pertama Merchandising Pte Ltd5
Hanbaobao Pte Ltd6
Oversea-Chinese Banking Corporation Ltd
Soo Kee Group7
United Overseas Bank Limited
Popular Group
Hockhua8
Minoshe Group9
Total
% of
Mall’s GRI
10.2%
4.1%
3.5%
3.3%
2.6%
2.1%
2.0%
1.9%
1.5%
1.4%
32.6%
Food & Beverage contributed 37.7% of the mall’s GRI
(FY2021: 36.4%), followed by Beauty and Healthcare at
13.7% (FY2021: 13.6%). These two trades accounted
for 51.4% of the mall’s GRI. The breakdown of the trade
category by NLA and GRI is presented below.
Trade Category
(in descending order of GRI)
Food & Beverage
Beauty & Healthcare
Fashion & Accessories
Sundry & Services
Supermarket & Grocers
Education
Jewellery & Watches
Electrical & Electronics
Books, Music, Arts & Craft, Hobbies
1
2
3
4
5
6
7
8
9
10 Homeware & Furnishing
11 Information & Technology
12 Leisure & Entertainment
13 Vacant
Total
By NLA
By GRI10
28.9% 37.7%
11.4% 13.7%
9.0% 11.6%
9.6%
8.4%
8.7%
14.1%
3.5%
6.8%
3.3%
1.3%
3.2%
5.5%
3.2%
4.9%
2.9%
3.4%
1.8%
2.7%
0.8%
2.0%
0.0%
1.6%
100.0% 100.0%
LEASE EXPIRY PROFILE11
As at 30 September 2022
FY2023
FY2024
FY2025
FY2026
FY2027 and
beyond
Total
Number of expiring leases
NLA of expiring leases (square feet)
Expiries as % of mall’s total leased area
Expiries as % of mall’s total GRI
35
33,214
22.5%
21.8%
51
77,297
52.4%
50.8%
32
17,375
11.8%
16.5%
9
8,088
5.5%
5.3%
1
11,517
128
147,491
7.8% 100.0%
5.6% 100.0%
1 The NLA includes the area of approximately 15,767 square feet (1,465 square metres) currently used as CSFS space.
2 Valuation done by Jones Lang LaSalle Property Consultants Pte Ltd as at 30 September 2022.
3
Includes FairPrice and Unity Pharmacy.
Includes KFC and Pizza Hut.
4
5 Operator of Harvey Norman.
6 Operator of Mcdonald’s.
7
8
9
10 Excludes gross turnover rent.
11 Based on committed leases as at 30 September 2022; vacant floor area and CSFS leases are excluded.
Includes SK Jewellery and Money Max.
Includes Hockhua Herbal Tea and Hockhua Tonic.
Includes Sorella and Young Hearts.
ANNUAL REPORT 2022 76
FRASERS CENTREPOINT TRUST
Description:
Shopping mall comprising 5
storeys and 3 basement levels
Gross Floor Area:
21,112 square metres
(227,244 square feet)
Title:
99-year leasehold
commencing 1 May 1993
Address:
1 Pasir Ris Central Street 3,
White Sands,
Singapore 518457
Net Lettable Area1:
13,970 square metres
(150,374 square feet)
Car Park Lots:
187
Year Acquired by FCT:
2020
Valuation2:
S$429.0 million
Annual Shopper Traffic:
8.4 million
(October 2021 – September
2022)
Key Tenants:
FairPrice, Cookhouse by
Koufu, McDonald’s, Popular
Bookstore and OCBC Bank
White Sands is located in Pasir Ris, a residential estate
in the Eastern region of Singapore. Located within a
growing residential catchment and next to Pasir Ris
MRT Station and Pasir Ris Bus Interchange, White Sands
fulfills the daily needs of its catchment residents. It is
a convenient destination for their necessity shopping,
essential services, lifestyle and entertainment needs.
The mall is also a favourite stopover for National
Servicemen en route their journey to and from the
Pulau Tekong military training camp. The key tenants
at the mall include FairPrice, Cookhouse by Koufu,
McDonald’s, Popular Bookstore and OCBC Bank.
White Sands underwent a major asset enhancement
and refurbishment works which was completed in the
first quarter of 2016. The mall is also awarded the BCA
Green Mark Platinum certification.
WHITE SANDSPROPERTY PROFILES Contents
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Financial &
Other Information
77
MALL PERFORMANCE HIGHLIGHTS
Financial Year ended 30 September (S$’million)
FY2022
FY2021
Increase/ (Decrease)
Gross Revenue
Property Expenses
Net Property Income
Committed Occupancy
Shopper Traffic (million)
28.77
8.52
20.25
96.4%
8.4
25.45
7.57
17.88
95.4%
7.5
13.1%
12.6%
13.3%
1.0%-points
12.0%
TOP 10 TENANTS
TRADE CATEGORY ANALYSIS
As at 30 September 2022, White Sands has a total of
134 (FY2021: 132) leases, excluding vacancy. The total
number of tenants as at 30 September 2022 is 126
(FY2021: 118) and the key tenants include FairPrice,
Cookhouse by Koufu, McDonald’s, Popular Bookstore
and OCBC Bank, among others. The top 10 tenants
contributed collectively 32.7% (FY2021: 32.5%) of the
mall’s total GRI.
Food & Beverage contributed 40.5% (FY2021: 38.7%)
of the mall’s GRI, followed by Beauty & Healthcare at
19.0% (FY2021: 20.7%). These two trades accounted
for 59.5% of the mall’s GRI. The breakdown of the trade
category by NLA and GRI is presented below.
Trade Category
(in descending order of GRI)
Top 10 Tenants
as at 30 September 2022
NTUC FairPrice3
Koufu Group4
Beauty One International5
Hanbaobao Pte Ltd6
Minor Group7
Oversea-Chinese Banking Corporation Ltd
Watson’s Personal Care Stores Pte Ltd
DBS Bank Ltd
Yum!8
Dairy Farm Group9
Total
LEASE EXPIRY PROFILE11
% of
Mall’s GRI
8.9%
4.0%
4.0%
3.2%
2.8%
2.4%
2.1%
2.0%
1.8%
1.5%
32.7%
Food & Beverage
Beauty & Healthcare
Sundry & Services
Fashion & Accessories
Supermarket & Grocers
Education
Homeware & Furnishing
Books, Music, Arts & Craft, Hobbies
Leisure & Entertainment
1
2
3
4
5
6
7
8
9
10 Information & Technology
11 Sports Apparel & Equipment
12 Jewellery & Watches
13 Vacant
Total
By NLA
By GRI10
32.5% 40.5%
15.5% 19.0%
9.4% 10.9%
9.4% 10.4%
7.9%
3.6%
2.4%
1.7%
1.2%
1.1%
0.9%
0.4%
0.0%
100.0% 100.0%
13.5%
5.3%
2.7%
3.0%
2.7%
1.3%
0.9%
0.2%
3.6%
As at 30 September 2022
FY2023
FY2024
FY2025
FY2026
FY2027 and
beyond
Total
Number of expiring leases
NLA of expiring leases (square feet)
Expiries as % of mall’s total leased area
Expiries as % of mall’s total GRI
39
43,096
34.8%
29.1%
35
31,049
25.0%
29.9%
39
27,659
22.3%
24.0%
18
11,336
9.1%
10.9%
3
10,852
134
123,992
8.8% 100.0%
6.1% 100.0%
1 The NLA includes the area of approximately 21,744 square feet (2,020 square metres) currently used as Community/ Sports Facilities Scheme
(CSFS) space.
Includes FairPrice and Unity Pharmacy.
Includes New York Skin Solutions, Dorra Slimming and Victoria Facelift.
2 Valuation done by Jones Lang LaSalle Property Consultants Pte Ltd as at 30 September 2022.
3
4 Operator of Cookhouse by Koufu.
5
6 Operator of McDonald’s.
7
8 Operator of KFC outlet.
9 Operator of Guardian Pharmacy.
10 Excludes gross turnover rent.
11 Based on committed leases as at 30 September 2022; vacant floor area and CSFS leases are excluded.
Includes Xin Wang Hong Kong Cafe and Poulet.
ANNUAL REPORT 2022 78
FRASERS CENTREPOINT TRUST
P RO P E RT Y D I R E CTO RY
CAUSEWAY POINT
Address:
1 Woodlands Square,
Singapore 738099
Telephone:
(65) 6894 2237
HOUGANG MALL
Address:
90 Hougang Avenue 10,
Singapore 538766
Telephone:
(65) 6488 9617
TIONG BAHRU PLAZA
Address:
302 Tiong Bahru Road,
Singapore 168732
Telephone:
(65) 6276 4686
Mall website:
https://www.causewaypoint.com.sg
Mall website:
https://www.hougangmall.com.sg
Mall website:
https://www.tiongbahruplaza.com.sg
CENTURY SQUARE
Address:
2 Tampines Central 5,
Singapore 529509
Telephone:
(65) 6789 6261
Mall website:
https://www.centurysquare.com.sg
CHANGI CITY POINT
Address:
5 Changi Business Park Central 1,
Singapore 486038
Telephone:
(65) 6511 1088
Mall website:
https://www.changicitypoint.com.sg
NORTHPOINT CITY
NORTH WING
Address:
930 Yishun Avenue 2,
Singapore 769098
YISHUN 10
RETAIL PODIUM
Address:
51 Yishun Central 1,
Singapore 768794
Telephone:
(65) 6754 2300
Mall website:
https://www.northpointcity.com.sg
TAMPINES 1
Address:
10 Tampines Central 1,
Singapore 529536
Telephone:
(65) 6572 5522
Mall website:
https://www.tampines1.com.sg
CENTRAL PLAZA
Address:
298 Tiong Bahru Road,
Singapore 168730
WATERWAY POINT
Address:
83 Punggol Central,
Singapore 828761
Telephone:
(65) 6812 7300
Mall website:
https://www.waterwaypoint.com.sg
WHITE SANDS
Address:
1 Pasir Ris Central Street 3,
Singapore 518457
Telephone:
(65) 6585 0606
Mall website:
https://www.whitesands.com.sg
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I N V ES T M E N T I N H E KTA R R E I T
As at 30 September 2022, FCT holds 30.53% 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.
H-REIT’s property portfolio consists of six shopping centres in the Northern, Central and Southern Regions of
Peninsular Malaysia. These six shopping centres are Subang Parade (Selangor), Mahkota Parade (Melaka), Wetex
Parade (Johor), Central Square (Kedah), Kulim Central (Kedah) and Segamat Central (Johor).
The properties in H-REIT portfolio have a total NLA of approximately 2.0 million square feet and a combined
value of approximately RM1,164.5 million (or approximately S$361 million assuming a currency exchange rate of
approximately S$1:MYR 3.229 as at 30 September 2022).
HEKTAR PROPERTY PROFILE1
State
Title
NLA (Retail), square feet
as at 31 Dec 2021
Tenancies as at 31 Dec 2021
(NLA lots only)
Occupancy as at 31 Dec 2021
Visitor traffic FY2021 (million)
Acquisition price
(RM million)
Valuation (RM million)
as at 31 Dec 2021
Gross revenue (RM million)
Net property income
(RM million)
Subang Parade Mahkota Parade
Wetex Parade
Central Square
Kulim Central
Segamat Central
Selangor
Freehold
523,487
Melaka
Leasehold
(expires 2101)
521,142
Johor
Freehold
Kedah
Freehold
Kedah
Freehold
175,014
310,564
299,781
Johor
Leasehold
(expires 2116)
211,910
89
90
60
45
67
33
82.5%
4.0
280.0
87.1%
2.8
232.0
89.9%
1.9
117.5
423.0
323.5
142.0
30.4
17.2
28.1
11.4
12.7
6.7
85.9%
1.9
83.0
90.0
8.5
3.7
94.0%
1.9
98.0
129.0
13.3
8.4
67.3%
0.7
104.0
57.0
3.5
(0.5)
HEKTAR REIT’S TOP 10 TENANTS#
The top ten tenants in the portfolio contributed approximately 37.7% of total monthly rental income, providing a
diversified revenue base. Aside from the top tenant, Parkson, which contributed approximately 11.7% of monthly
rental income, no other tenant contributed more than 10%.
Tenant
Trade Category
NLA (sq ft)
% of total NLA
% of monthly
rental income*
Parkson
The Store
GSC
Mr D.I.Y
Seleria Food Court
Watson’s
Guardian
Giant Superstore
MM Cineplexes
KFC
Top 10 Tenants (by monthly rental income)
Other Tenants
Total
Department Store/Supermarket
Department Store/Supermarket
Leisure & Entertainment/Sports & Fitness
Houseware & Furnishing
Food & Beverage/Food Court
Health & Beauty
Health & Beauty
Department Store/Supermarket
Leisure & Entertainment/Sports & Fitness
Food & Beverage/Food Court
252,515
273,198
88,670
74,301
42,105
11,965
12,164
72,140
75,928
15,792
918,778
1,123,120
2,041,898
12.4%
13.4%
4.3%
3.6%
2.1%
0.6%
0.6%
3.5%
3.7%
0.8%
45.0%
55.0%
100.0%
11.7%
8.8%
2.5%
2.4%
2.4%
2.3%
2.1%
2.0%
1.8%
1.7%
37.7%
62.3%
100.0%
1 Source: H-REIT Annual Report 2021 and its website at http://www.hektarreit.com/
ANNUAL REPORT 2022 80
FRASERS CENTREPOINT TRUST
I N V ES T M E N T I N H E KTA R R E I T
PORTFOLIO TENANCY MIX1
As at 31 December 2021
The largest rental contributors to the portfolio are tenants from the Department Store/Supermarket and the Food &
Beverage/Food Court segments. Both segments contributed 45% of the portfolio’s total rental income. In terms of
NLA occupancy, Department Store/Supermarket tenants continue to dominate the portfolio by taking up 40% of all
available NLA.
Segment
As % of overall portfolio NLA
As % of portfolio rental income
(based on monthly rental income in December 2021)
Department Store/Supermarket
Food & Beverage/Food Court
Fashion & Footwear
Health & Beauty
Leisure & Entertainment/Sports & Fitness
Electronics & IT
Homewares & Furnishing
Gifts/Books/Toys/Specialty
Education/Services
Note: Numbers may not add up to 100% due to rounding
PORTFOLIO LEASE EXPIRY PROFILE1
As at 31 December 2021
40%
12%
11%
4%
18%
4%
8%
2%
1%
24%
21%
20%
12%
8%
7%
4%
3%
1%
A total of 291 tenancies will expire in 2022 representing approximately 34.2% of NLA and 55.1% of monthly rental
income as at 31 December 2021.
For year ending 31 December
FY2022
FY2023
FY2024
* Based on monthly rental income for December 2021.
No. of
tenancies
expiring
NLA of
tenancies
expiring
(sq ft)
NLA of
tenancies
expiring as
% of total
NLA
291
50
43
698,353
596,002
440,421
34.2%
29.2%
21.6%
As % of
monthly
rental
income*
55.1%
25.5%
19.4%
1 Source: H-REIT Annual Report 2021 and its website at http://www.hektarreit.com/
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R I S K M A N AG E M E N T
Effective risk management is
a fundamental part of Frasers
Centrepoint Trust and its
subsidiaries’ (“FCT Group”)
business strategy. Key risks, control
measures and management
actions are continually being
identified, reviewed and monitored
by management of the Manager
(“Management”) as part of the
Manager’s enterprise-wide risk
management (“ERM”) framework.
Recognising and managing risks
are central to the business and for
protecting Unitholders’ interests.
GOVERNANCE AND
OVERSIGHT
The Board of Directors of the
Manager (“Board”) is responsible
for the governance of risks and
ensuring that the Manager maintains
a sound system of 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
Group’s assets as well as FCT’s and
its Unitholders’ interests. The Audit,
Risk and Compliance Committee
(“ARCC”) 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.
RISK MANAGEMENT
FRAMEWORK
ERM reporting is facilitated through
a Corporate Risk Scorecard system
which enables the reporting of risks
and risk status using a common
platform in a consistent and
cohesive manner.
The Manager seeks to benchmark
its ERM framework against industry
best practices and standards. In
assessing areas for improvement
and how the ERM processes and
practices can be strengthened,
reference has been made to the
best practices in risk management
including those set out in the Code
of Corporate Governance 2018 and
the Risk Governance Guidance
for Listed Boards issued by the
Corporate Governance Council in
May 2012.
Risks are reported at the
operational level using a Risk
Scorecard which captures risks,
risk ratings, mitigating measures
and timeline for action items. Where
applicable, Key Risk Indicators
(“KRIs”) are established to monitor
risks. For risks that are material, the
mitigating measures and KRIs are
reported in the Key Risk Dashboard
for review by the ARCC on a regular
basis.
Risk tolerance statements, which
set out the nature and extent of
significant risks which the Manager
is willing to take in achieving its
strategic objectives, are reviewed
annually. The tolerance limits are
monitored and reported to the
ARCC on a half yearly basis.
Formal risk reviews take place
quarterly and the Risk Scorecard is
updated regularly. On a yearly basis,
ERM validation is held with the
Management. Key risks have been
identified and the corresponding
mitigating measures taken are
adequate. FCT Group’s validated
risks are presented to the ARCC
to provide assurance that the risk
management system in place was
adequate and effective to address
risks which the Manager considers
relevant and material to FCT
Group’s operations.
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.
FCT Group’s ERM framework
promotes a risk management
culture. The Manager works closely
with Frasers Property Limited’s
(“FPL”) Risk Management Team
to conduct workshops where
necessary to reinforce and enhance
risk management knowledge and
management principles.
KEY RISKS
The Manager identifies key risks,
assesses their likelihood and
materiality to FCT Group’s business
and documents corresponding
mitigating controls in a risk register.
The risk register is reviewed and
updated regularly.
OPERATIONAL RISK
The Manager 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. Business
Continuity Plans are regularly
tested for their effectiveness. The
Manager proactively monitors
developments relating to the
impact of the ongoing COVID-19
pandemic, responds through
established crisis management
and business continuity plans and
complies with disease prevention
and containment regulations to help
minimise business disruptions and
ensure the safety of our employees,
tenants and customers.
ANNUAL REPORT 2022
82
FRASERS CENTREPOINT TRUST
R I S K M A N AG E M E N T
HUMAN CAPITAL RISK
The Manager has in place a career
planning and development system
for its staff and implemented
effective reward schemes to attract
and retain appropriate talent for
the business. Regular training
and development opportunities
are also provided to upgrade the
skills and knowledge of the staff.
An organisational culture survey
was also deployed to measure
employee engagement and
sentiments with our aim to shape a
more positive, purpose-led culture
aligned with our business strategy.
LIQUIDITY RISK
In ensuring a prudent financial
structure for FCT Group, the
Manager adheres closely to the
covenants in the loan agreements
and Appendix 6 (Investment:
Property Funds) of the Code on
Collective Investment Schemes
(“CIS”) issued by the Monetary
Authority of Singapore (“MAS”). In
addition, the Manager proactively
manages FCT Group’s cashflow
position and liquidity requirements.
In view of the challenges posed
by the COVID-19 pandemic and
global inflationary pressures, the
Management regularly conducted
stress testing to assess and
track the possible impact of the
macroeconomic environment
on the FCT Group’s liquidity and
cashflow. Capital and liquidity
management remain priorities for
FCT Group.
The Manager actively monitors its
debt maturity profile and operating
cashflows. FCT Group has undrawn
revolving credit facilities totaling
S$616.9 million as of 30 September
2022 to ensure adequacy of liquidity
reserves to finance FCT Group’s
operations, capital expenditures,
asset enhancement initiatives
(“AEIs”) and any other unforeseen
short-term obligations. FCT Group’s
liquidity is supported by its long-
term banking relationships and track
record of strong access to the debt
capital market.
Please refer to page 40 under
Capital Resources section on the
various sources of funds availability
and their utilisation. The Manager
continues to comply with its policy
of spreading out the debts maturing
in a single year.
INVESTMENT RISK
As FCT Group 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, asset sustainability
attributes, environmental impact
metrics, and future growth potential,
having due regard to market
conditions and outlook.
CREDIT RISK
The Manager monitors the
debt levels on an ongoing basis
and remains vigilant in its debt
collection procedures. Credit
evaluations are performed before
lease agreements are entered into
with tenants or before lease terms
with existing tenants are extended.
Credit risk is also mitigated by
collecting rental deposits via cash
or banker’s guarantee from the
tenants.
COMPLIANCE RISK
FCT is subject to relevant laws and
regulations including the Listing
Manual of the Singapore Exchange
Securities Trading Limited, CIS and
the tax rulings issued by the Inland
Revenue Authority of Singapore.
Any changes to these regulations
may affect FCT Group’s operations
and results. The Manager 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,
attending talks and briefings.
INTEREST RATE RISK
TECHNOLOGY RISK
Interest rate risk is proactively
managed by the Manager with
the primary objective of limiting
the extent to which net interest
expense could be affected by
adverse movements in interest
rates. The Manager closely monitors
the interest rate environment with
support from FPL Group Treasury
to mitigate the difficulties in raising
debt at reasonable cost in view of
the ongoing interest rate hike. In
accordance with the Manager’s
hedging policy, at least 50% of FCT
Group’s outstanding borrowings
are at fixed interest rates. As at 30
September 2022, 70.5% of the total
borrowings are on fixed interest
rates.
Digital disruption and the future
of work that are enabled by
digital technology offer new
opportunities and challenges.
The FPL Group, of which the
Manager is part of, continues to
build digital capabilities and invest
in new technologies to ensure
that the FCT Group’s business is
future-ready including embracing
of cloud technology in order to
provide a higher level of business
agility, scalability, as well as cost
competitiveness. Group-wide
policies, standards and procedures
and security technology solutions
have been put in place to ensure
the confidentiality, availability, and
integrity of Information Technology
(“IT”) systems, as well as to
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ensure that cybersecurity threats
are managed. Disaster recovery
plans and incident management
procedures have been developed
and are tested regularly. Measures
and considerations have also
been taken to enable effective
privileged access monitoring, patch
management, data security, data
protection and safeguard against
prolonged service unavailability of
critical IT systems.
Periodic IT security trainings are
conducted for new and existing
employees to raise IT security
awareness on the evolving threats
landscape. External professional
service providers are engaged to
conduct independent vulnerability
assessment and penetration tests to
further strengthen the IT systems.
For this financial year, the Manager
engaged external experts to
assist FCT in addressing recent
changes to the Technology Risk
Management regulations issued by
the MAS. The approach outlines
the boundary of regulations for the
Manager and defines the roles and
responsibilities for the Board and
ARCC. At the management level, a
Chief Information Officer and Chief
Information Security Officer were
appointed to manage technology
risks of FCT and takes all decisions
in accordance with the risk-appetite
approved by the Board. The
Manager monitors the compliance
to various technology regulations on
an ongoing basis, using the toolkits
and quarterly compliance checklists
created for periodic reporting.
EXTERNAL RISK
FCT is exposed to a challenging
business climate and rapidly
changing retail market trends,
including global inflationary
pressures, manpower shortage
faced by tenants, limited pool of
prospective tenants, e-commerce
consumer shopping behaviour and
the leasing principles set out in
the “Code of Conduct for Leasing
of Retail Premises in Singapore”.
The Manager actively monitors
the macroeconomic trends,
policies, regulatory changes and
retail market trends, as well as
continuously seeks to strengthen
FCT’s competitiveness through
active lease management and asset
enhancement works.
FRAUD AND CORRUPTION
RISK
The Manager does not condone
any acts of fraud, corruption or
bribery by employees in the course
of our business activities. The
Manager adheres to the various
policies and guidelines established
by the Group, including a Code of
Business Conduct and an Anti-
Bribery Policy, to guide employees
on business practices, standards
and conduct expected during their
employment.
The Manager has put in place a
Whistle-Blowing Policy (“Whistle-
Blowing Policy”). The Whistle-
Blowing Policy provides an
independent feedback channel
through which matters of concern
about possible improprieties in
matters of financial reporting,
suspected fraud and corruption
or other matters may be raised
by employees and any other
persons in confidence and in good
faith, without fear of reprisal. The
ARCC reviews and ensures that
independent investigations and
appropriate follow-up actions are
carried out. More details can be
found in the Corporate Governance
section of this Annual Report on
pages 125 to 160.
ENVIRONMENT AND
CLIMATE CHANGE RISK
Climate change and potentially
catastrophic weather events
exposes FCT Group to
environmental and sustainability
risks. The growing emphasis
of government regulations on
sustainability, environmental laws
and green finance laws creates
a challenge to meet regulatory
requirements amidst rising cost
from capital expenditure.
In order to meet the stringent
green building and green loans
requirements for sustainability
financing, the Manager constantly
monitors green finance trends
and compliance requirements
of green building. Training and
workplace bulletins are in place to
update employees’ sustainability
knowledge and align operational
objectives to the strategic direction
of the FCT Group. Please refer
to pages 84 to 124 under the
Sustainability Report section on
the FCT Group’s effort to comply
with the Environmental Risk
Management Guidelines.
ANNUAL REPORT 2022 84
FRASERS CENTREPOINT TRUST
S U S TA I N A B I L I T Y R E P O RT
CONTENTS
GLOSSARY
85 Board Statement
86
87 Harnessing Collective Action to support the
The Year at a Glance
Singapore Green Plan 2030
Embedding Sustainability within our Core
89
90 Managing Sustainability
94 Acting Progressively
104 Consuming Responsibly
109 Focusing on People
114 About This Report
115
118 GRI Content Index
Independent Assurance Statement
For ease of reading, this glossary provides definitions of
abbreviations that are frequently used throughout this report.
ACES
AEI
ARCC
ARF
BCA
CCTV
DDC
ERM
ESG
F&B
FCT
FPR
FRx
GBP
GFA
GLP
GHG
GRESB
GRI
IA
ICMA
IoT
ISAE 3000
: Asia Corporate Excellence & Sustainability
Awards
: Asset Enhancement Initiative
: Audit, Risk and Compliance Committee
: AsiaRetail Fund Limited
: Building and Construction Authority,
Singapore
: Closed-Circuit Television
: Distributed District Cooling
: Enterprise Risk Management
: Environmental, Social and Governance
: Food and Beverage
: Frasers Centrepoint Trust
: Frasers Property Retail
: Frasers Experience
: Green Bond Principles
: Gross Floor Area
: Green Loan Principles
: Greenhouse Gas
: Global Real Estate Sustainability
Benchmark
: Global Reporting Initiative
: Internal Audit
: International Capital Market Association
: Internet of Things
: International Standard on Assurance
Engagements 3000
ISO 14001
: International Organisation for
Standardisation (Environmental
Management Systems)
ISO 45001
: International Organisation for
ISO 50001
Standardisation (Occupational Health and
Safety Management Systems)
: International Organisation for
Standardisation (Energy Management
Systems)
KPI
L&D
MAS
NGOs
OH&S
ORBA
PV
PUB
REIT
REITAS
SBTi
SBG
SDG
SIAS
SRA
SSC
SSWG
SWC
TAFEP
TCFD
UN
UNGC
UNWEP
UV
WEB
: Key Performance Indicator
: Learning and Development
: Monetary Authority of Singapore
: Non-Governmental Organisations
: Occupational Health and Safety
: Orchard Road Business Association
: Photo-Voltaic
: Public Utilities Board, Singapore
: Real Estate Investment Trust
: REIT Association of Singapore
: Science Based Targets initiative
: Sustainability Bond Guidelines
: Sustainable Development Goal
: Securities Investors Association
(Singapore)
: Singapore Retailers Association
: Sustainability Steering Committee
: National Safety and Security Watch Group
: Sustainability Working Committee
: Tripartite Alliance for Fair and Progressive
Employment Practices
: Task Force on Climate-related Financial
Disclosures
: United Nations
: United Nations Global Compact
: United Nations Women Empowerment
Principles
: Ultraviolet
: Water Efficient Building
BOARD STATEMENT
Year 2022 has been a year of global volatilities due to a
rise in interest and energy costs, geopolitical tensions
that affected international supply chains and increased
frequency of extreme weather conditions, among other
factors. These factors add headwinds to our journey
towards net-zero carbon and underscore the need to
hasten our sustainability efforts. While the COVID-19
pandemic has significantly impacted our stakeholders’
businesses and interests, it also created opportunities
for us to adopt new business processes and pivot
to digitalisation which improved business efficiency
and efficacy. We anticipate that going forward, the
deepening impacts of the climate crisis and rising
cost of living will profoundly impact consumers and
businesses alike.
FCT has established the necessary environmental,
social and governance framework to address these
challenges. Together with our Sponsor Frasers Property
Limited, we are committed to delivering on our shared
Purpose of “Inspiring experiences, creating places for
good.” through deep integration within our business
with the three pillars of the Frasers Property Group’s
Sustainability Framework – Acting Progressively,
Consuming Responsibly and Focusing on People.
In FY2022, we introduced Technology Risk Management
and Environmental Risk Management within our
governance framework to align to the regulatory
requirement by the Monetary Authority of Singapore. We
have also aligned this year’s sustainability disclosures
with the TCFD recommendations and expanded the
scope of sustainability-related information provided
within this report. For the second consecutive year,
we achieved a 5-Star rating in the 2022 GRESB Real
Estate Assessment. We believe this is a meaningful
benchmark that enables our stakeholders to compare
FCT’s performance with its global real estate peers in
same sector. FCT has also received an “A” rating from
the MSCI ESG Ratings in May 2022, up from its previous
“BBB” rating, for improvement in its management of
financially relevant ESG risks and opportunities.
We have made tangible progress towards our Group’s
strategic sustainability goals to be net-zero carbon by
2050. Our property portfolio is presently 93% Green
Mark-certified by gross floor area (“GFA“). This will
contribute towards the Group’s goal of green-certifying
80% of owned and asset-managed properties by 2024.
We have been leveraging on green financing to drive
responsible investment, with the proportion of green
loans in our total loans now at 32%, an increase from
18% a year ago. We will continue to work towards our
goal of financing the majority of our new assets with
green and sustainable financing by 2024. Together with
two other business entities within the Frasers Property
Group, FCT signed the commitment letter to be part of
the Science Based Targets initiative (“SBTi“) in March
this year, joining global efforts to set emission reduction
targets in line with climate science and contributing to
the Paris Agreement goals of limiting global warming
to below 2°C above pre-industrial levels and pursuing
efforts to limit temperature increase to 1.5°C.
Beyond furthering our climate ambitions, we constantly
strive to contribute to our national sustainability agenda.
FCT has taken the Green Nation pledge, which commits
to supporting the Singapore Green Plan 2030. This
includes contributing to the Energy Reset pillar of the
national movement by installing a network of electric
vehicle charging points across our malls. We have
also signed a landmark supply agreement for Century
Square and Tampines 1 to serve as key injection nodes
as part of Singapore’s first brownfield DDC network in
Tampines. This year, FCT participated for the first time
in Singapore’s Climate Action Week, raising awareness
on climate change through a new sustainability corner
and educational webinars. Enabling sustainable lifestyle
choices – such as by providing avenues to recycle
e-waste and donate excess food in our malls – remains
an ongoing priority.
As we advance on our sustainability journey, we
continue to keep our team at the heart of all we do. We
uphold stringent workplace health and safety standards
across our business, including having all properties
certified with ISO 45001 occupational health and safety
management systems. Recognising that the COVID-19
pandemic has affected mental well-being, we held our
first Mental Wellness campaign in FY2022 to promote
healthier habits and lifestyles among our employees.
We will continue finding ways to promote holistic well-
being among our team and the communities that
we serve.
With the support of the FCT management team and
our Sponsor, the Board continues to carry out its
responsibilities in the assessment of material ESG risks
and opportunities and to provide the strategic direction
and oversight to achieve our sustainability goals.
We invite you to read more about our sustainability
journey in this eighth Sustainability Report, which
conforms to the GRI Universal Standards 2021 and
the Environmental Risk Management Guidelines
published by the Monetary Authority of Singapore.
We have voluntarily sought external assurance for the
sustainability-related disclosures within the report for
greater transparency. We look forward to working with
you to achieve a more inclusive and resilient future for
our stakeholders.
Board of Directors
Frasers Centrepoint Asset Management Ltd.
as Manager of Frasers Centrepoint Trust
86
FRASERS CENTREPOINT TRUST
THE YEAR AT A GLANCE
ACTING
PROGRESSIVELY
Introduced Technology
Risk Management
and Environmental
Risk Management
within our governance
framework to align to the
regulatory requirement by
the Monetary Authority of
Singapore
Achieved 5-Star rating
for second consecutive
year at the GRESB Real
Estate Assessment 2022
Raised the proportion of
green loans to 32%
as at 30 September
2022 from 18% as at
30 September 2021
Attained “A” rating in
ESG rating by MSCI ESG
Ratings
93% of portfolio by
gross floor area certified
BCA Green Mark Gold or
higher, including 48%
certified Green Mark
Platinum
Developed roadmap
to achieve net-zero
carbon emissions
by 2050; and preparing
to submit targets to the
Science Based Targets
initiative for validation
in FY2023
CONSUMING
RESPONSIBLY
Signed supply agreement
to affirm commitment
to Singapore’s first
brownfield Distributed
District Cooling
network
Reduced Scope 2 energy
and greenhouse gas
emissions intensities
by 15.3% and 15.6%
respectively from FY2019
baseline
Supported Climate
Action Week 2022
and made our Green
Nation pledge
Reduced water intensity
by 22.3%, compared to
FY2019 baseline
Collected 1,978 tonnes
of waste for recycling
Women made up 33%
and 40% of the Board
of Directors and senior
management, respectively
All Board members and
senior leaders trained on
assessing and managing
climate risks and
opportunities
Each employee
completed 37 learning
hours on the average
All employees trained
on sustainability via an
e-learning module
FOCUSING
ON PEOPLE
Safety-first approach with
all properties certified
with ISO 45001
occupational health
and safety management
systems and 7 retail
properties with BizSafe
STAR
Collected 7.8 tonnes of
food for donation to Food
Bank Singapore
SUSTAINABILITY REPORT H A R N E S S I N G CO L L E CT I V E
ACT I O N TO S U P P O RT T H E
S I N GA P O R E G R E E N P LA N 2030
Tampines 1,
Singapore
88
FRASERS CENTREPOINT TRUST
FCT is committed to supporting the Singapore Green Plan 2030, a
whole-of-nation movement to advance Singapore's national agenda on
sustainable development. The Green Plan is a key component of the
Forward Singapore Steward Pillar, which focuses on environmental and
fiscal sustainability and partnerships for a green, liveable and climate-
resilient Singapore.
Here’s how we contribute to the five Green Plan pillars:
SUSTAINABLE LIVING
To make reducing carbon emissions,
keeping the environment clean, and saving
resources and energy a way of life in
Singapore
FCT participated in Climate Action Week
2022:
• Century Square building facade lighting
up in green to raise awareness
• Sustainability corner at Northpoint City
• Webinars with stakeholders to discuss
climate change challenges
• E-waste collection, recycling bins,
electricity and water efficiency features
installed across properties to encourage
sustainable lifestyle
ENERGY RESET
Cleaner energy and green buildings to
lower the nation’s carbon footprint
ALL
FCT malls to have electric vehicle charging
stations by end 2022
ISO 14001
Environmental Management Systems across
all properties
93%
of FCT’s property portfolio is Green Mark-
certified by GFA, supporting the Singapore
Green Building Masterplan's goal of greening
80% of buildings by GFA by 2030.
RESILIENT FUTURE
Building up national resilience,
including mitigating the Urban Heat Island effect
Century Square and Tampines 1 are designated injection
nodes of chilled water to Tampines Central District
Distributed Cooling, Singapore’s first brownfield district
cooling solution.
Expected Results1
17%
combined energy
consumption
reduction
18%
carbon
emissions
decrease
S$4.3 million
annualised
monetary benefits
CITY IN NATURE
Creating a green and liveable
home for Singaporeans by
restoring nature into the
urban environment.
Rooftop gardens and green
features to connect shoppers
and tenants to nature.
GREEN ECONOMY
Transforming
industries to encourage
decarbonisation and
harnessing sustainability
as a competitive
advantage
Group goal of financing
majority of new
assets with green and
sustainable financing by
2024.
32%
proportion of green loans
FCT ’ S G R E E N N AT I O N P L E D G E
We signed up as Champion in the Green Nation Pledge, an initiative supported by the Ministry of
Sustainability and the Environment. FCT commits to tracking our carbon footprint, setting a net-zero
target year, publishing a sustainability report and kickstarting initiatives that help other organisations
progress in their sustainability journeys.
#ForwardSG #SGGreenPlan #GreenNationPledgeSG
1 Taking The Heat Off Cooling: A Greener Way to Cool (SP Group and Temasek, 19 August 2021).
SUSTAINABILITY REPORT Contents
Overview
Business
Review
Asset
Portfolio
Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
89
EMBEDDING SUSTAINABILITY WITHIN OUR CORE
As one of the largest suburban retail mall owners in Singapore, we recognise our responsibility to be good stewards
of the environment and of the communities that we serve. Our sustainability approach is guided by the three pillars
of our Sponsor’s Sustainability Framework - Acting Progressively, Consuming Responsibly and Focusing on People.
The focus areas under these pillars span a diverse range of environmental, social and governance topics, which
FCT has adapted to suit our business and operations.
PILLARS
ACTING
PROGRESSIVELY
CONSUMING
RESPONSIBLY
FOCUSING
ON PEOPLE
FOCUS AREAS
Innovation
Fostering an innovation culture
that creates value and strengthens
our competitive edge
Materials & Supply Chain
Achieving the sustainable
management and efficient use of
materials along the supply chain
Community Connectedness
Considering social value principles
for communities
Resilient Properties
Strengthening the resilience and
climate adaptive capacity
Risk-based Management
Comprehensive assessment to
address environmental, health and
safety risks
Responsible Investment
Incorporating social, environment
and governance criteria in the
evaluation process
Biodiversity
Enhancing the environment
and ecosystem through our
developments
Energy & Carbon
Increasing substantially energy
efficiency and renewable energy
used
Waste
Reducing substantially waste
generation through prevention,
reduction, recycling and reuse
Water
Increasing substantially water
efficiency and the recycling and
safe reuse of water discharged
Health & Well-being
Ensuring healthy and balanced
work and community
environments
Diversity, Equity & Inclusion
Empowering and promoting
the social inclusion of all,
irrespective of age, sex, disability,
race, ethnicity, origin, religion or
economic or other status
Skills & Leadership
Developing skills and leadership
programmes that support
productive activities, creativity and
innovation to deliver high-value
products and services
From the framework, FCT has in turn identified and concentrated our resources on focus areas where we can make
the most positive impact.
We have also developed roadmaps with tangible action plans aligning to our Sponsor’s long-term goals:
▶ To be net-zero carbon corporation by 2050
▶ To be climate resilient and establish adaptation and mitigation plans by 2024
▶ To green-certify 80% of its owned and asset-managed properties by 2024
▶ To finance a majority of its new sustainable asset portfolios with green/sustainable financing by 2024
ANNUAL REPORT 2022 90
FRASERS CENTREPOINT TRUST
ENGAGING STAKEHOLDERS
TO JOIN OUR SUSTAINABILITY
JOURNEY
We continuously strive to deliver long-
term outcomes for our diverse group of
stakeholders. This involves establishing various
channels to seek, evaluate and respond to
their feedback in order to enhance the quality
of the experiences we create for them, and
to build the trust necessary to living out our
sustainability objectives. We believe that
collective effort is the key to achieve them.
MANAGING SUSTAINABILITY
We are committed to embedding sustainability within
our business by establishing robust governance
structures and prioritising sustainability within strategic
planning at Board and management levels.
SUSTAINABILITY GOVERNANCE
To ensure we are delivering on our sustainability
ambitions, we closely align with our Sponsor on a
unified governance approach across the Frasers
Property Group. Our sustainability agenda is driven by
the Group Sustainability Steering Committee (“SSC”),
comprising senior management personnel who meet
six times a year to drive the sustainability strategy,
review sustainability performance against key material
metrics and approve action plans and policies to
integrate sustainability practices within the Group.
A dedicated Carbon and Climate Advisory Group was
also established to drive progress towards the Group’s
goal of achieving net-zero carbon emissions by 2050.
The SSC is supported by the Frasers Property Group
Sustainability Team and Project Management Office,
whom we collaborate with to develop sustainability
action plans and to track progress.
The management team of FCT also works closely
with the Sustainability Steering Committee of Frasers
Property Retail (“FPR SSC”), our property manager,
to make key decisions relating to the sustainability
framework and goals of FCT's portfolio. The FPR SSC
comprises key management personnel including
Mr Richard Ng, the CEO of FCT’s Manager and Mr Low
Chee Wah, the CEO of FPR. The FPR SSC provides
stewardship and direction for the Sustainability Working
Committee (“SWC”), which comprises management and
executive personnel that implement the action plans
and monitor performance against key performance
indicators for retail malls under FCT. Our Board of
Directors provides the strategic direction and oversees
the identification, monitoring and the management of
environmental, social and governance material factors
required for achieving FCT’s sustainability objectives.
SUSTAINABILITY REPORT Contents
Overview
Business
Review
Asset
Portfolio
Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
91
Key
Stakeholders
Tenants
Shoppers
Employees
Property
Manager
Investors
and FCT’s
Unitholders
Local
Community
Regulators
and Industry
Associations
Key Topics of Concern
Mode and Frequency of Engagement
• Maintaining high shopper traffic
• Competitive rental rates
• Collaboration in marketing and
promotional events
• Green leases
• Environmental awareness
Throughout the year:
• Face to face dialogue
• Partnership in promotional events
• Regular tenant feedback meetings
Once every three years:
• Tenant satisfaction survey
• Meeting our shoppers’ needs
• Quality of services and facilities
• Providing comfortable shopping
environment and family-friendly
amenities
• Considerations for safety,
accessibility and easy navigation
within the mall
• Good connectivity to public transport
• Shopper surveys (No fixed period)
• Focus group study (No fixed period)
• Ongoing feedback via online and various social media such
as Facebook, Instagram and LinkedIn and FCT/Frasers
Property Group websites
• Regular events to engage shoppers and their families
• Ongoing Frasers Rewards shopper loyalty programme
• Feedback forms made available throughout the year on
our website or via customer service staff, customer service
counters and concierge counters
• Compensation and benefits
• Career progression
• Continuous education and skills
upgrading
• Employee well-being
• Annual performance appraisals
• Communal sports and activities throughout the year
• Orientation and training programmes upon joining
• Regular department meetings
• Family Day Events (suspended during COVID-19)
• Annual employee satisfaction survey and organisation
culture survey
Key Performance Indicators (“KPIs“) for
the property manager
• Monthly meetings and ad-hoc meetings as required
• Regular exchanges on internal communication channels
• Business and operations
performance
• Business strategy and outlook
• Sustainability concerns
Throughout the year:
• Investor meetings, quarterly post-results luncheons and non-
deal roadshows, mall tours and Annual General Meetings
• Website, annual reports, SGXNet announcements,
presentation slides, quarterly financial results briefings and
conference calls
• Helping the groups in need in the
• Ad-hoc engagement with agencies such as National Council
community
• Foster strong community ties and
promote family values
• Compliance with relevant rules and
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
of Social Service, Care Corner Singapore and Health
Promotion Board on community activities/events to be held
at the malls
• Ongoing provision of venue space where relevant, to support
community and charitable events that promote community
bonding and well-being
• Regular participation in events organised by industry
associations including REIT Association of Singapore
(“REITAS“), Orchard Road Business Association (“ORBA“),
Securities Investors Association (Singapore) (“SIAS“) and
Singapore Retailers Association (“SRA“) throughout the year
• Regular participation in briefings and consultation with
regulators such as the SGX and MAS throughout the year
ANNUAL REPORT 2022 92
FRASERS CENTREPOINT TRUST
INDUSTRY ALIGNMENT
FCT recognises that collective action is crucial
to accelerating progress towards our long-term
sustainability goals. We collaborate with our
stakeholders to promote awareness and share our
experience on sustainability matters. We actively
participate in the following industry bodies and
professional associations:
▶ Securities Investors Association (Singapore) (“SIAS“)
▶ REIT Association of Singapore (“REITAS“)
▶ Orchard Road Business Association (“ORBA“)
▶ Singapore Retailers Association (“SRA“)
We also endorse and support local and international
movements to advance shared outcomes. As part of
Frasers Property Group, we participate in the following
sustainability initiatives:
▶ United Nations Global Compact (“UNGC”) Principles
▶ United Nations Sustainable Development Goals
(“SDGs”)
▶ GRESB Real Estate Assessment
▶ United Nations Women Empowerment Principles
(“UNWEP”)
▶ The Singapore Green Plan 2030, through the Green
Nation Pledge
Sustainability
Pillars
Focus Areas
What it Means to FCT
Material Topics & GRI Indicators
Boundaries
Relevant UN SDGs
Risk-based
Management
Ensuring our business continuously assesses the environment, health and safety and
social risks to ensure we are in compliance with relevant laws and regulations.
Compliance with laws and
FCT, Suppliers/Contractors and
regulations (GRI 2)
Shoppers/Tenants
Adopting a zero-tolerance approach towards corruption and fraud and maintaining high
standards of integrity, accountability, and corporate governance.
Anti-corruption (GRI 205)
FCT, Suppliers/Contractors and
Shoppers/Tenants
ACTING
PROGRESSIVELY
Ensuring compliance with the Code of Advertising Practice and applicable guidelines
and principles for responsible communications and marketing.
Responsible
Investment
Resilient
Properties
Innovation
Achieving sustainable improvement in economic performance through investing with
long-term views and financial and sustainability considerations to deliver regular and
stable distributions to our Unitholders, and to achieve growth in FCT’s net asset value
per Unit.
Understanding and responding to climate-related risks and opportunities to enhance
the resilience of our properties and future-proof our business.
Being an agile and adaptable business that will allow us to remain relevant and
competitive in the retail industry and lead to a viable business in the long-term.
Marketing and Labelling (GRI 417)
FCT
Economic Performance (GRI 201)
FCT
Economic Performance (GRI 201)
FCT, Shoppers/Tenants
Economic Performance (GRI 201)
FCT, Shoppers/Tenants
Energy &
Carbon
Proactively reducing energy consumption of our properties and contributing towards
achieving carbon neutrality.
Energy (GRI 302)
Emissions (GRI 305)
FCT, Suppliers/Contractors and
Shoppers/Tenants
Water
Conserving water whenever possible to reduce unnecessary usage and wastage.
Water (GRI 303)
FCT, Shoppers/Tenants
CONSUMING
RESPONSIBLY
FOCUSING
ON PEOPLE
Diversity,
Equity &
Inclusion
Skills &
Leadership
Creating a diverse and inclusive environment where employees can be their best selves.
Employment (GRI 401)
FCT
Investing in employee learning and helping them to develop their career with us.
Continuously seeking to attract and retain our human capital and talents as we continue to grow
in our business. Maintaining open-door communication with our employees to foster trust and
confidence in our communications.
Health &
Well-being
Creating an environment within our properties where our stakeholders, including
shoppers, contractors and tenants, feel safe and comfortable to carry out their intended
activities.
Community
Connectedness
Fostering healthy interactions with local communities to build strong sense of belonging
and connections, and contributing back to the community by helping the less fortunate.
Training and Education (GRI 404)
Labour/Management Relations
FCT
(GRI 402)
(GRI 403)
Occupational Health and Safety
FCT, Suppliers/Contractors,
Shoppers/Tenants and NGOs/
Local Communities
Local Communities (GRI 413)
FCT, NGOs/Local Communities
SUSTAINABILITY REPORT
Contents
Overview
Business
Review
Asset
Portfolio
Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
93
MATERIALITY ASSESSMENT
Our material topics are regularly reviewed to ensure alignment to our business, global trends and stakeholder
concerns. This year, our Sponsor conducted a global market review of sustainability trends and a survey with
internal and external stakeholders to understand views on material ESG topics. The findings affirmed that FCT’s
material topics remain relevant and aligned to stakeholder expectations and the United Nations Sustainable
Development Goals. The table below expands on the significance of each material topic to our business and where
we have caused or contributed to impacts through our business activities.
Sustainability
Pillars
Focus Areas
What it Means to FCT
Material Topics & GRI Indicators
Boundaries
Relevant UN SDGs
Risk-based
Ensuring our business continuously assesses the environment, health and safety and
Management
social risks to ensure we are in compliance with relevant laws and regulations.
Compliance with laws and
regulations (GRI 2)
FCT, Suppliers/Contractors and
Shoppers/Tenants
Adopting a zero-tolerance approach towards corruption and fraud and maintaining high
Anti-corruption (GRI 205)
standards of integrity, accountability, and corporate governance.
FCT, Suppliers/Contractors and
Shoppers/Tenants
ACTING
PROGRESSIVELY
Ensuring compliance with the Code of Advertising Practice and applicable guidelines
Marketing and Labelling (GRI 417)
FCT
and principles for responsible communications and marketing.
Responsible
Achieving sustainable improvement in economic performance through investing with
Economic Performance (GRI 201)
FCT
Investment
long-term views and financial and sustainability considerations to deliver regular and
stable distributions to our Unitholders, and to achieve growth in FCT’s net asset value
per Unit.
Understanding and responding to climate-related risks and opportunities to enhance
Economic Performance (GRI 201)
FCT, Shoppers/Tenants
the resilience of our properties and future-proof our business.
Innovation
Being an agile and adaptable business that will allow us to remain relevant and
Economic Performance (GRI 201)
FCT, Shoppers/Tenants
competitive in the retail industry and lead to a viable business in the long-term.
Proactively reducing energy consumption of our properties and contributing towards
achieving carbon neutrality.
Energy (GRI 302)
Emissions (GRI 305)
FCT, Suppliers/Contractors and
Shoppers/Tenants
Water
Conserving water whenever possible to reduce unnecessary usage and wastage.
Water (GRI 303)
FCT, Shoppers/Tenants
Creating a diverse and inclusive environment where employees can be their best selves.
Employment (GRI 401)
FCT
Investing in employee learning and helping them to develop their career with us.
Continuously seeking to attract and retain our human capital and talents as we continue to grow
in our business. Maintaining open-door communication with our employees to foster trust and
confidence in our communications.
Training and Education (GRI 404)
Labour/Management Relations
(GRI 402)
FCT
Health &
Well-being
Creating an environment within our properties where our stakeholders, including
shoppers, contractors and tenants, feel safe and comfortable to carry out their intended
activities.
Occupational Health and Safety
(GRI 403)
FCT, Suppliers/Contractors,
Shoppers/Tenants and NGOs/
Local Communities
Community
Fostering healthy interactions with local communities to build strong sense of belonging
Local Communities (GRI 413)
FCT, NGOs/Local Communities
Connectedness
and connections, and contributing back to the community by helping the less fortunate.
Resilient
Properties
Energy &
Carbon
Diversity,
Equity &
Inclusion
Skills &
Leadership
CONSUMING
RESPONSIBLY
FOCUSING
ON PEOPLE
ANNUAL REPORT 2022
94
FRASERS CENTREPOINT TRUST
ACT I N G P RO G R ES S I V E LY
OUR PRIORITIES
OUR APPROACH
FCT strives to uphold the highest standards of integrity
and accountability to our stakeholders, through
establishing a strong framework of policies and
procedures. Environmental, social and governance
considerations are embedded into the way we carry
out our business, allowing us to anticipate risks and
opportunities that lie ahead and become a more
resilient organisation. We invest in innovation and
digitalisation to drive greater efficiencies and agility in
the face of a fast-changing environment.
OUR PROGRESS
▶ To establish policies and processes that strengthen
resilience
▶ To practise responsible investment by incorporating
ESG risks and opportunities into investment
decisions and pursuing green building certifications
▶ To encourage a culture of innovation and
digitalisation
Focus Area
Our Goals
Our Progress in FY2022
Status1
Risk-Based
Management
To establish holistic
overarching internal policies
to govern and guide
management of the focus
areas
• All our properties are third-party audited with ISO 14001,
On track
ISO 45001 and ISO 50001 certifications.
• 96% of suppliers and vendors have acknowledged our
Responsible Sourcing Policy
• Introduced Technology Risk Management and
Environmental Risk Management in our governance
framework, aligning to the regulatory requirements by the
Monetary Authority of Singapore
Responsible
Investment
To certify 80% of owned and
asset-managed properties
with third-party and relevant
green building schemes
by 2024
• 93% of portfolio by gross floor area certified BCA Green
Mark Gold or higher, including 48% certified Green Mark
Platinum
• Achieved 5-Star rating for second consecutive year at
GRESB Real Estate Assessment 2022
• Attained “A” rating in ESG rating by MSCI ESG Ratings
Achieved
To finance majority of our
new sustainable asset
portfolios with green and
sustainable financing by
2024
To carry out climate risk
assessments and implement
asset-level adaptation and
mitigation plans aligned
to the Task Force on
Climate-Related Financial
Disclosures framework by
2024
To cultivate a customer-
centric and collaborative
mindset
Resilient
Properties
Innovation
• Raised the proportion of green loans to 32% as at 30
September 2022 from 18% as at 30 September 2021
On track
• All Board members and senior leaders trained on
On track
assessing and managing climate risks and opportunities
• Increased the Board’s oversight over the FCT sustainability
strategy by expanding the remit of the Audit, Risk and
Compliance Committee (“ARCC”)
• Signed commitment letter to be part of the Science Based
Targets initiative (“SBTi”)
• Frasers eStore recognised as the Best Loyalty Programme –
Lifestyle (Silver) and Best COVID-19 Response in a Loyalty
Campaign (Bronze) at Marketing Interactive Magazine’s
regional Loyalty & Engagement Awards 2022
• More than 8,000 product listings on Frasers eStore platform
On track
1 On track: Target is either achieved or is on track to be achieved on time.
In progress: Target is delayed but progress is still being made and could still be achievable on time.
Not on track: Target is delayed to the point that it is unlikely that it will be achieved on time.
SUSTAINABILITY REPORT
Contents
Overview
Business
Review
Asset
Portfolio
Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
95
RISK-BASED MANAGEMENT
How we create value and our progress in FY2022
What this means to us
To deliver sustainable outcomes for our stakeholders,
we have established robust policies and processes to
help us to anticipate and mitigate environmental, social
and governance-related risks that may impact our
business. We are committed to operating at the highest
level of integrity and transparency across our portfolio
and strive to uphold fair and ethical business conduct
with zero tolerance for corruption and fraud.
How we manage Risk-Based Management
The Board, through the Audit, Risk and Compliance
Committee (ARCC), reviews the adequacy and
effectiveness of the Manager’s risk management
framework to ensure that robust risk management
and mitigating controls are in place. The Manager
has adopted an enterprise 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. The matters discussed by the Board
and Board Committees include business, financial
performance and strategy related matters; Sustainability,
Environmental, Social & Governance; and Technology
Risk Management. FPL’s internal audit department (“FPL
Group IA”) supports the internal audit function of the
Manager, and is responsible for conducting objective
and independent assessments on the adequacy and
effectiveness of the Manager’s system of internal
controls, risk management and governance practices.
Please refer to our Corporate Governance Report on
page 125 of the Annual Report for more details.
The Manager works closely with the Sponsor’s Group
Risk and Group Sustainability teams on risk and ESG-
related matters in its risk management process and
business operations. This year, we have also introduced
Technology Risk Management and Environmental Risk
Management in our governance framework, which is
a regulatory requirement by the Monetary Authority
of Singapore. FCT is also a signatory to the annual
Corporate Governance Statement of Support initiated
by SIAS.
To ensure the reliability of our data disclosure and
processes in the publication of this year’s sustainability
report, we have sought independent external assurance
of the report. Our assurance is carried out by Ere-S Pte
Ltd with the engagement conducted under a limited
level of assurance according to the International
Standard on Assurance Engagements 3000 ("ISAE
3000") guidelines. Please refer to pages 115 to 117 for
assurance findings and observations. All our properties
also undergo third-party audits in order to be certified
under the ISO 14001, ISO 45001 and ISO 50001
standards.
Maintaining a robust set of policies to strengthen
resilience
We continue to ensure effective governance and risk-
based management by implementing policies that drive
sustainable outcomes. The following key policies are
periodically reviewed and updated to ensure relevancy
to our business:
▶ Anti-Bribery Policy
▶ Board Diversity Policy
▶ Code of Business Conduct
▶ Competition Act Compliance Manual
▶ Complaints/Feedback Handling Policy
▶ Corporate Social Responsibility Policy
▶ Diversity and Inclusion Policy
▶ Documents Management and Retention Policy
▶ Investment Manual and Guidelines – Acquisitions
and Disposals
▶ Investor Relations Policy
▶ Personal Data Breach Incident Management Policy
▶ Personal Data Protection Policy
▶ Policy for Continuing Education of Capital Markets
Services Representatives
▶ Policy on Dealings in Units of Frasers Centrepoint
Trust and Reporting Procedure
▶ Policy on Outsourcing
▶ Policy for Prevention of Money Laundering and
Countering the Financing of Terrorism
▶ Procurement Policy
▶ Responsible Sourcing Policy
▶ Whistle-Blowing Policy
▶ Workplace Health and Safety Policy
Upholding strict compliance practices
FCT has a zero-tolerance approach to bribery and
corruption, and we remain committed to ensuring
appropriate measures are in place to prevent non-
compliance incidents and breaches. Our Sponsor’s
Code of Business Conduct sets out our stance on
ethics and compliance to ESG aspects, covering
key aspects such as avoiding conflicts of interest,
interactions with external stakeholders, protecting
company’s assets, anti-sexual harassment, equal
employment opportunities, data privacy and upholding
laws in countries where we operate. The Code of
Business Conduct is made available where applicable
to other stakeholders.
We also have independent feedback channels in place
to enable employees or third parties to report any
possible improprieties, misconduct or wrongdoing
relating to FCT and its staff, in matters of financial
reporting, suspected fraud and corruption or any
other matters. Matters of concern can be reported
by mail, electronic mail or by calling a hotline, details
of which are provided in the Whistle-Blowing Policy
made available on the Sponsor’s website. Any report
submitted through these channels would be received
ANNUAL REPORT 2022 96
FRASERS CENTREPOINT TRUST
by the Sponsor’s Head of Group Internal Audit, which
has been designated as an independent function to
investigate all whistle-blowing reports. All reports made
in good faith will be treated fairly, confidentially and
protected from reprisal.
▶ Environmental management;
▶ Human rights and labour management;
▶ Health, safety and well-being; and
▶ Business ethics and integrity.
During the year, we did not record any significant
breaches of laws and regulations in relation to the
environment, bribery and corruption, or industry
codes around marketing communications. Further,
all our employees have attended training sessions
on anti-corruption. We will continue to work closely
with stakeholders to pre-empt and mitigate any risks
throughout our value chain.
Engaging with our suppliers
We engage our supply chain as part of our sustainability
journey. We share with them our sustainability goals and
ambitions as well as best practices to be sustainable.
Our Responsible Sourcing Policy sets out our
expectations of contractors and suppliers in four key
sustainable procurement areas:
We carried out a mapping exercise to identify suppliers
with highest spend and environmental or social risks,
and have achieved 96% acknowledgement by suppliers
on our Responsible Sourcing Policy as at 30 September
2022. We look forward to deepening our engagement
with suppliers across each of the four sustainable
procurement areas.
Aligning with the Monetary Authority of Singapore
(“MAS“) Guidelines on Environmental Risk
Management for Asset Managers
Pursuant to MAS guidelines aimed at enhancing the
resilience of funds, asset managers have been tasked
to implement the guidelines across six key areas of
environmental risk management. We have aligned our
processes and practices to meet the requirements and
will continue to strive for further alignment.
Key Areas of MAS Guidelines on Environmental Risk
Management
Status
Governance and strategy
The Board and senior management to oversee
integration of environmental risk considerations into
asset managers’ strategies, business plans and product
offerings.
Research and portfolio construction
Asset managers should evaluate the potential impact
of environmental risk on the return potential of our
investments.
Portfolio risk management
Asset managers should put in place appropriate
processes and systems to systematically assess,
manage and monitor the impact of any risk.
Scenario analysis
Asset managers should develop capabilities to assess
the environmental risk impact on their portfolios and
their alignment with climate goals set under a range of
scenario pathways.
Stewardship
Asset managers should engage investee companies
to improve risk profile and support their efforts to
transition towards more sustainable policies and
practices.
Disclosures
Clear and meaningful disclosures referencing well-
regarded international reporting frameworks.
We have enhanced the Board’s oversight over the FCT
sustainability strategy by expanding the remit of the ARCC.
Furthermore, FCAM's CEO serves on the Sustainability Steering
Committee of our property manager, Frasers Property Retail. The
committee makes key decisions in relation to our sustainability
framework and goals.
We consider operational indicators (such as greenhouse gas
emissions, energy, waste and water) and sustainability benchmarks
that may affect tenant demand as well as operational efficiencies
and costs. Please refer to the Energy and Carbon section on page
105 of this Report for further details.
We have put in place processes to manage environmental risk.
Please refer to the How we manage Risk-Based Management
section on page 95 of this Report for further details.
We have completed climate risk assessments, including scenario
analysis from temperature rises (below 2°C scenario: RCP 2.6
and below 4°C scenario: RCP 8.5) and established a roadmap for
achieving net-zero carbon by 2050.
We have implemented asset enhancement initiatives with measures
to improve energy and water efficiency and waste management.
This Report discloses our approach to environmental risk
management and the potential impacts from environmental risk.
We strive to enhance disclosures to further align to the TCFD
recommendations.
SUSTAINABILITY REPORT Contents
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97
RESPONSIBLE INVESTMENT
How we create value and our progress in FY2022
What this means to us
Responsible investment involves integrating
sustainability considerations into how we invest and
enhance our portfolio. We invest resources in greening
our portfolio, and adopt green and sustainable financing
as part of our responsible investment drive. We also
ensure we benchmark with recognisible international
standards such as the GRESB Real Estate assessment.
How we manage Responsible Investment
Greening our portfolio
To improve the ESG performance of our portfolio,
we strive to certify our assets with recognised green
building standards in Singapore, such as the Building
and Construction Authority’s (“BCA”) Green Mark
and the Singapore Environment Council’s Eco Office
Certification.
Adopting green and sustainable financing
Our green and sustainable financing approach is
guided by FCT’s Sustainable Finance Framework,
which is designed to provide an overarching criteria
and guidelines for the REIT. The Sustainable Finance
Framework is publicly accessible on FCT’s website
and has been externally assured to be in accordance
with the relevant international principles and guidelines
listed below:
▶ Green Bond Principles (“GBP”) 2021 and
Sustainability Bond Guidelines (“SBG”) 2021 by the
International Capital Market Association (“ICMA”);
and
▶ Green Loan Principles (“GLP”) 2021 by the Loan
Market Association, Asia Pacific Loan Market
Association and Loan Syndications and Trading
Association.
Benchmarking performance with the GRESB Real
Estate Assessment
The GRESB Real Estate Assessment benchmarks
real estate funds and companies worldwide based
on information relating to their ESG performance and
sustainability best practices, based on consistent
methodology across geography, investment vehicles
and property types and is aligned with international
reporting frameworks. FCT has been a participant of the
annual GRESB Real Estate Assessment since 2019.
Greening our portfolio
With a goal to green-certify 80% of owned and asset-
managed properties by 2024, FCT’s property portfolio
is presently 93% Green Mark-certified by gross floor
area (“GFA“). Causeway Point, Tiong Bahru Plaza,
Central Plaza, Century Square and White Sands are
certified to Green Mark Platinum standards. Tampines
1, Changi City Point and Waterway Point have been
certified to Green Mark GoldPlus standards, while
Northpoint City North Wing has been certified Green
Mark Gold. All our Centre Management Offices also
took part in the Singapore Environment Council’s Eco
Office Certification. Five centres attained the highest
Elite ranking and three attained Champion ranking.
We also continuously identify opportunities for
improvement of efficiencies across all our properties.
These include asset enhancement initiatives (“AEI”) to
upgrade properties for optimum performance including
the installation of environmentally efficient infrastructure
and facilities.
Adopting green and sustainable financing
FCT has steadily grown its proportion of green loans
from 18% in FY2021 to 32% in FY2022 through
refinancing of maturing loans with green loans,
including the 40% proportionate share of loan of our
joint venture Sapphire Star Trust, which holds Waterway
Point. We will continue to work towards our goal of
financing the majority of new assets with green and
sustainable financing by 2024.
Benchmarking
performance with the
GRESB Real Estate
Assessment
We achieved a 5-Star
rating in the 2022 GRESB
Real Estate Assessment for
the second consecutive
year – which represents
the highest rating and
top quintile of all entities
assessed by GRESB.
FCT’s score of 92 ranked
second within the Retail/
Asia category and is above
the global average of 74. We believe the Assessment is
a meaningful benchmark that enables our stakeholders
to regularly measure our performance with other global
real estate peers in same sector and will continue
to strive to maintain our strong performance while
advancing on our sustainability agenda.
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RESILIENT PROPERTIES
What this means to us
We recognise that climate-related risks would translate
as a financial risk to our assets and operations. We are
focusing on enhancing the resilience of our properties
to withstand these widespread changes. In anticipation
of the impact from climate change, we will focus on
enhancing the resilience of our properties and embed
climate-related consideration in our financial risk
management processes to help us better measure and
manage climate risks and opportunities.
How we manage Resilient Properties
We aligned our sustainability goals with Frasers
Property Group's goals, which include attaining net-
zero carbon status by 2050, to be climate-resilient and
establishing adaptation and mitigation plans by 2024,
and to finance the majority of our new sustainable asset
portfolios with green and sustainable financing by 2024.
We are aligning our disclosures more closely with
the TCFD recommendations this year to promote
more informed long-term investment, credit and
insurance underwriting decisions and meet growing
investor demand. Through Frasers Property Group,
collectively we have declared our support for the TCFD
recommendations.
How we create value and our progress in FY2022
The table below outlines our approach and progress
towards managing climate-related risks and
opportunities.
TCFD core element
Our approach
Our progress in FY2022
Governance
Describe the
organisation’s
governance around
climate-related risks
and opportunities.
The Board of Directors of FCAM (the “Board”)
provides oversight on broader sustainability
trends, risks and opportunities to connect
sustainability with corporate purpose and
strategy.
The Board is supported by the Sponsor’s
Sustainability Steering Committee and
Sustainability Project Management Office.
Describe
management’s role
in assessing and
managing climate-
related risks and
opportunities.
Senior management manages climate risk,
identifies potential opportunities through
accountability linked to remuneration and
provides quarterly updates to the Board
on climate-related risk to support decision
making.
Strategy
Describe the climate-
related risks and
opportunities the
organisation has
identified over the
short, medium, and
long term.
We carry out climate risk assessments that
involve identifying potential risks to our assets
and estimating financial impacts to the business
using scenario analysis.
We have expanded the Board’s oversight over
the FCT sustainability strategy by redefining
the remit of the Audit, Risk and Compliance
Committee.
We established sustainability metrics,
including climate-related objectives, within
‘Key Responsibility Areas’ and linked them
to executive remuneration via the balanced-
scorecard methodology.
All Board members and senior leaders
underwent training on assessing and managing
climate risks and opportunities, which included
a deep dive into TCFD recommendations and
steps to be taken to better align with them and
incorporate robust risk management processes
into our strategy.
As part of our climate risk assessments, we have
prioritised key physical and transitional climate-
related risks to FCT, and their financial impact
to our business. We have also identified several
climate-related opportunities we can leverage
on. For further details on our assessed material
risks and opportunities, please refer to Table A
on page 101.
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TCFD core element
Our approach
Our progress in FY2022
Describe the impact
of climate-related risks
and opportunities
on the organisation’s
businesses, strategy,
and financial planning.
Our climate risk assessments include an
analysis of both the financial impacts to our
major operating revenue and costs items in
the absence of any mitigation actions and the
potential value of damages to our assets in the
face of extreme weather events.
Our Sponsor has initiated a group-wide
readiness assessment of our practices as they
relate to managing climate-related risk.
Describe the
resilience of the
organisation’s
strategy, taking into
consideration different
climate-related
scenarios, including a
2°C or lower scenario.
Risk Management
Describe the
organisation’s
processes for
identifying and
assessing climate-
related risks.
Our Sponsor has started a global process
of identifying climate-related risks and
opportunities for our businesses at the asset
level, including identifying climate ‘value-at-risk’
for our activities and their locations.
FCT developed an action plan to address and
mitigate key physical and transition risks and
prioritised strategies to achieve net-zero carbon
by 2050. Our action plan includes (but is not
limited to):
• Phasing down refrigerants with high Global
Warming Potential
• Partnering low carbon vendors and service
providers to increase procurement of low
carbon products and services
• Enhancing waste management and increasing
waste diversion
• Reducing downstream emissions from leased
assets
The readiness assessment done on FCT
informed a roadmap to align more closely with
TCFD recommendations. Examples of actions
within the roadmap include:
• Better integrating climate change risks and
opportunities into strategic decision making
• Providing annual training for business leaders
• Undertaking climate risk assessments on an
asset level, including an assessment against
different and longer-term time horizons, both
low-emissions and high-emissions scenarios,
and an assessment of financial impacts
and materiality of climate-related risks and
opportunities
• Strengthening processes to identify, assess,
and manage climate-related risks and
improving the quality of climate-related
financial disclosures
This roadmap, which was approved by the
Board, enables us to address and mitigate
physical and transition risks that are key to our
business.
FCT completed a climate risk and climate
‘value-at-risk’ portfolio-level assessment of our
portfolio properties in Singapore. This provided
us with a deep understanding of the carbon
emissions from our own operations as well as
from our broader value chain – in particular, our
tenants’ and suppliers’ energy use. As part of
this work, we created an action plan to address
and mitigate key physical and transition risks and
prioritised asset-specific strategies to achieve
net-zero carbon by 2050.
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TCFD core element
Our approach
Our progress in FY2022
Describe the
organisation’s
processes for
managing climate-
related risks.
We identify key risks, assesses their likelihood
and materiality to our business and document
corresponding mitigating controls in a risk
register. The risk register is reviewed and
updated regularly.
Cognisant of the serious impact that climate-
related risks have on our properties and
operations, environmental and climate change
risks have been included in the FCT Risk
Register for monitoring.
We have implemented an Environmental, Health
& Safety Policy and an Environmental, Health &
Safety Management System aligned to the ISO
14001 and ISO 45001 standards.
We are on track towards integrating our climate
related risk identification activities within our
Enterprise Risk Management processes and
associated risk register practices.
Describe how
processes for
identifying, assessing,
and managing climate-
related risks are
integrated into the
organisation’s overall
risk management.
Metrics and Targets
Disclose the
metrics used by the
organisation to assess
climate-related risks
and opportunities in
line with its strategy
and risk management
process.
Disclose Scope
1, Scope 2 and, if
appropriate, Scope 3
greenhouse gas (GHG)
emissions and the
related risks.
To ensure that we are on track to meet our
target of net-zero carbon emissions by 2050, we
measure and report our energy consumption
and greenhouse gas emissions across Scopes 1,
2 and 3. Please refer to the Energy and Carbon
section on page 105 of this Report for detailed
information on our metrics and targets.
Across asset classes and regions, we certify
our properties using third-party green building
standards, and we continue to take steps to
meeting our goal of achieving green certification
for 80% of our asset portfolio by FY2024.
Please refer to the Energy and Carbon section
for further information on metrics related to
greenhouse gas emissions.
Describe the
targets used by
the organisation to
manage climate-
related risks and
opportunities and
performance against
targets.
We introduced goals to encourage impactful
climate action, such as attaining net-zero
carbon across our business and value chain by
2030, being climate-resilient and establishing
adaptation and mitigation plans by 2024, and
financing the majority of our new sustainable
asset portfolios with green and sustainable
financing by 2024.
We measure and disclose our performance
using metrics including:
• Absolute Scope 2 and 3 energy consumption
(GWh)
• Scope 2 energy intensity (kWh/m²)
• Absolute Scope 2 and 3 greenhouse gas
emissions (‘000 tonnes of CO₂e)
• Scope 2 greenhouse gas intensity (kgCO₂e/
m²)
We have also restructured this Sustainability
Report to better align with recommended TCFD
disclosures.
Our property portfolio is presently 93% Green
Mark-certified by gross floor area (“GFA”). We will
continue to work towards improving this metric.
We are continuously increasing our carbon and
climate-related data coverage under Scopes 1, 2,
and 3. Examples of new data disclosed in this
Sustainability Report include:
• Absolute Scope 3 energy consumption
(GWh) based on electricity consumed by
tenants
• Absolute Scope 3 greenhouse gas emissions
(‘000 tonnes of CO₂e) based on electricity
consumed by tenants
Our properties saw an improvement in energy
performance in FY2022 against an FY2019
baseline. For further details on energy efficiency
measures implemented in FY2022, please refer
to the Energy and Carbon section.
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Table A: FCT’s climate risks and opportunities
Risks
Physical (acute events)
• Floods (flash floods and
general/river floods)
• Rising mean temperatures
(Heatwaves)
Physical (chronic events)
• Rising sea levels
• Water scarcity (Drought)
Transitional
• Carbon pricing
• Increased demand for cooling
The financial impact of climate-
related risks to our business
include:
• Costs of higher cooling
spending due to higher cooling
demand
• Waste-related carbon costs
• Construction materials-related
carbon costs
• Scopes 1 and 2 carbon costs
Opportunities
• Partnering with leading electricity retailers and
renewable energy solution providers to increase
renewable energy procurement
• Providing training and engagement programmes
to centre managers and tenants to facilitate
energy and water efficiency, responsible
procurement, etc
• Partnering with our tenants to develop green
leases with an additional focus on energy
efficient and smart equipment, which help
reduce tenants’ power consumption and provide
greater visibility of energy use during the lease
term
Our key next steps
We strive to improve the quality of our climate-related
financial disclosures each year, as we continue
to deepen our understanding on how climate
change would affect our people and business. As
short-term priorities, we will focus on implementing
recommendations from our Sponsor's group-wide
readiness assessment of our management of climate-
related risk. These include developing metrics to
track performance against climate-related risks and
opportunities, and considering climate related risks and
opportunities in investment decisions.
INNOVATION
What this means to us
When the COVID-19 pandemic significantly impacted
the retail landscape, we responded in an agile manner
by adopting new business processes and pivot to
digitalisation, which has improved business efficiency
and efficacy. We continue to foster a strong culture of
innovation and align to Frasers Property's Purpose of
“Inspiring experiences, creating places for good.” and
to distinguish ourselves as an employer of choice.
Makan Master is an online food delivery, takeaway and dine-in service available in the FRx app
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How we manage Innovation
As part of Frasers Property Group, we are aligned
with the Sponsor’s digital vision and strategy. We
work closely with our Sponsor’s dedicated strategic
innovation specialists tasked with driving a design
thinking mindset within the organisation and equipping
employees with the appropriate tools and experience to
enable customer-centric innovation.
Together with Frasers Property Retail, FCT engages
retailers, customers and food and beverage (“F&B“)
operators through our dedicated omnichannel retail
platforms Frasers eStore and Makan Master as part of a
dedicated Frasers Experience ecosystem for shoppers
and merchants. Dedicated teams from Platform
Growth and Operations, Digital Products, and Platform
Marketing monitor the implementation and growth
of the platforms to ensure relevance to evolving
stakeholder needs.
How we create value and our progress in FY2022
Adapting to consumer’s evolving needs through
Omnichannel Retail
We continue to invest and enhance in Frasers digital
retail platform Frasers eStore and the F&B platform
Makan Master on Frasers Experience (“FRx”), Fraser’s
shoppers’ loyalty programme. The Frasers eStore and
Makan Master complement our network of physical
retail properties to provide a strong omnichannel retail
proposition for our shoppers and retailers.
Omnichannel retail adapts to shoppers’ evolving
shopping needs and preferences. It provides shoppers
with enhanced convenience and accessibility and more
order fulfilment choices. For retailers and F&B operators
at our malls, omnichannel retailing help them to expand
customer outreach and grow their sales productivity
of their physical retail space; add click-and-collect
and delivery of goods as options to order fulfilment to
enhance convenience to their customer; and provide
them with data and analytics to make better business
decisions such as product mix and locations for future
expansion. The combination of these benefits helps
the retailers and F&B operators to drive higher sales,
business efficiency, brand loyalty and overall shopper
satisfaction.
Since the launch of Frasers eStore in 2021 and Makan
Master in 2019, sales on both platforms have seen
multifold growth. The Frasers eStore has helped
tenants to double their annual sales and saw a three
times increase in customer spending year on year. It
currently features over 8,000 product listings, and was
recognised at Marketing Interactive Magazine’s regional
Loyalty & Engagement Awards 2022 as the Best Loyalty
Programme – Lifestyle (Silver) and Best COVID-19
Response in a Loyalty Campaign (Bronze).
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Harnessing technology for operational efficiency
As our business and operations face headwinds from
rising cost and manpower shortage going forward,
harnessing technology to improve operational
efficiency, and reduce reliance on manpower will
strengthen our resilience. In this regard, we work with
our partners to explore innovative ways in harnessing
technology to achieve these objectives.
manpower deployment efficiency and effectiveness.
Another aspect is the deployment of smart closed-
circuit television (“CCTV”) to reduce reliance on
manpower as we scale our operations to enhance or
increase security coverage. We are also working with
our security service vendor on consolidating command
centres at our malls to improve efficiency and reduce
manpower reliance.
In April 2020, Frasers Property Retail was the first mall
operator in Singapore to roll out UV-disinfecting mobile
robots in our malls, as part of the measures to fight the
COVID-19 pandemic and to keep our stakeholders safe.
Since then, we continued to work on several ongoing
initiatives such as deployment of Internet-of-Things
(“IoT”)-enabled sensors to provide real-time updates
of state of cleanliness and amenities in the restrooms
of our malls. This allows intervention on a need-to
basis in place of time-based cleaning which improves
This year, we launched a new Property Management
Reporting system, and migrated the manual preparation
of property management reports to a digital platform to
reduce time taken and improve analysis quality. We also
completed the integration process of our acquired ARF
portfolio of shopping malls onto a unified platform for
financial data management and reporting.
Each UV Bot is equipped with a camera, built-in sensors, software and an ultraviolet-C light module that emits
powerful UV-C rays to eradicate viruses
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CO N S U M I N G R ES P O N S I B LY
OUR PRIORITIES
OUR APPROACH
▶ Establish policies, targets and commitments that
drive positive outcomes for the environment
▶ Adopt practices that help our employees and
customers to manage and use resources efficiently
▶ Drive action through partnerships with our
stakeholders
As a leading developer-sponsored retail real estate
investment trust (“REIT”) and one of the largest
suburban retail mall owners in Singapore, we have
a big part to play in mitigating the impact of our
operations on the environment. We strive to streamline
our resource consumption by reducing waste
generation, conserving energy and water, enhancing
energy efficiencies and using renewable energy
wherever possible. We strive to nurture partnerships
for collective action with our tenants, employees and
stakeholders to ensure we meet our sustainability
goals, which include achieving net-zero carbon
emissions by 2050.
OUR PROGRESS
Focus Areas
Our Goals
Our Progress in FY2022
Status2
Energy &
Carbon
• To achieve net-zero
• Supported Climate Action Week 2022 and made Green
On track
carbon emissions by 2050
Nation pledge
• To develop a net-zero
carbon roadmap and
establish progressive
carbon targets
• To monitor and reduce
our energy usage intensity
progressively by 2035
• To reduce our Scope 1,
2 and 3 greenhouse gas
emissions progressively
by 2035, aligned to
Science Based Targets
To reduce water usage
intensity by 20% from 2015
by 2030 and establish
interim targets by FY2021
• Developed roadmap to achieve net-zero carbon emissions
by 2050; and preparing to validate carbon emissions
targets with the Science Based Targets initiative
• Signed supply agreement for Tampines 1 and Century
Square to form two of the three key injection nodes in
Singapore's first brownfield Distributed District Cooling
network
• Reduced Scope 2 energy and GHG emissions intensities
by 15.3% and 15.6% respectively, compared to FY2019
baseline
• Reduced water intensity by 22.3% compared to FY2019
On track
baseline
• To implement food waste
recycling in all FCT's retail
malls by 2024
• Recycled 1,978 tonnes of general waste
• Rate of recycling increased to 12.0% in FY2022
• Collected 9.7 tonnes of electronic waste for recycling
In progress
Water
Waste
• To partner tenants and
develop a general waste
and recycling programme
under the green lease
initiative
2 On track: Target is either achieved or is on track to be achieved on time.
In progress: Target is delayed but progress is still being made and could still be achievable on time.
Not on track: Target is delayed to the point that it is unlikely that it will be achieved on time.
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ENERGY AND CARBON
What this means to us
We have a big part to play in mitigating the impact of
our operations on the environment. Eventually, climate
change and environmental impacts would also affect
our operations. We work with our Sponsor to take
active steps towards decarbonising our business and
achieving net-zero carbon emissions by 2050. We have
also taken tangible steps to support the Singapore
Green Plan and contribute towards achieving the
nation’s sustainability targets by 2030.
How we manage Energy and Carbon
Our roadmap towards achieving net-zero carbon
emissions by 2050 details the carbon reduction
strategies we aim to implement in our properties to
reduce Scope 1, 2 and 3 greenhouse gas (“GHG”)
emissions, coupled with specific targets and interim
timelines. These include improving energy efficiencies,
increasing renewable energy mix, addressing tenant
energy consumption, and practising sustainable
procurement as well as waste and water management.
How we create value and our progress in FY2022
In FY2022, initiatives to make FCT’s portfolio more
energy efficient included deploying EV charging
stations across our properties and advancing our
commitment to participate in Singapore’s first
brownfield district cooling system at Tampines. In April
2022, a supply agreement was signed, designating
two of our retail malls, Century Square and Tampines 1,
as injection nodes of chilled water to the network.
The network is expected to achieve a combined 17%
reduction in energy consumption, an 18% decrease
in carbon emissions and S$4.3 million in annualised
monetary benefits from energy savings, maintenance
costs and potential earnings for the buildings3. These
initiatives have enabled us to make progress towards
our net-zero carbon goal. As at 30 September 2022,
we have reduced the energy intensity and GHG
emissions intensity of our portfolio by 15.3% and 15.6%
respectively, against FY2019 baseline.
Our performance
Scope 24
Scope 2 Energy consumption (GWh)
and intensity (kWh/m2)
Scope 2 GHG emissions ('000 tonnes)
and intensity (kgCO2e/m2)
70
60
50
40
30
20
10
0
225.4
62.3
60.5
184.4
184.7
38.6
250
200
150
100
50
0
30
25
20
15
10
5
0
92.1
15.8
25.4
75.1
24.6
75.2
100
90
80
70
60
50
40
30
20
10
0
FY2020
FY2021
FY2022
FY2020
FY2021
FY2022
In FY2022, our total Scope 2 energy consumption was
60.5 GWh, a decrease of 2.9% from FY2021 due to more
conscious use of electricity by our building operations
and the exclusion of two properties (Anchorpoint
Shopping Centre and YewTee Point) divested within
FY2021. Accordingly, our greenhouse gas (“GHG”)
emissions decreased by 2.9% to 24,622 tCO₂e, factoring
in the use of renewable energy over the past year.
Our building energy and GHG emissions intensities
remained relatively unchanged at 184.7 kWh/m2 and
75.2 kgCO₂e/m² respectively.
To reduce our reliance on fossil-fuel based energy,
we have been generating renewable energy on-site
via solar panels installed in Tiong Bahru Plaza and
Changi City Point, with the aim of expanding our
renewable energy capacity over time. In total, we
generated 133,346 kWh of renewable energy from these
two properties, equivalent to 54.4 tCO₂e of avoided
emissions during the year.
3 Taking The Heat Off Cooling: A Greener Way to Cool (SP Group and Temasek, August 2021).
4 Energy consumption and GHG emissions are based on purchased electricity consumed at common areas. GHG emissions are calculated using
the location-based method. Energy data for the reported periods are restated to factor in historical electricity consumption from the acquired
ARF portfolio in FY2021. Scope 2 GHG data for the reported periods are restated to factor in historical emissions from the acquired ARF
portfolio, avoided emissions from use of renewable energy, and updates in historical emissions factors. Energy and GHG emissions intensities
exclude properties divested at any point during the reporting period.
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Scope 35
Scope 3 Energy consumption (GWh)
Scope 3 GHG emissions ('000 tonnes)
97.7
99.1
120
100
80
60
40
20
0
54.0
45
40
35
30
25
20
15
10
5
0
22.1
39.9
40.4
FY2020
FY2021
FY2022
FY2020
FY2021
FY2022
We worked closely with our tenants to raise awareness
in making our malls more energy efficient. In FY2022,
our tenant electricity consumption remained stable at
99.1 GWh with a slight increase of 1.4% from FY2021.
As a result, our Scope 3 GHG emissions from tenant
electricity consumption increased to 40,420 tCO₂e.
WATER
What this means to us
The world’s demand for water is growing, underscoring
the need for more prudent water management
practices. According to World Resources Institute’s
research published in 2013, Singapore is identified as
a country under extremely high water stress. Cognisant
that water is a key resource in many aspects of our
operations – from cleaning our spaces to providing
cooling and sanitation to our tenants and customers,
we strive to carefully manage and reduce our water use.
How we manage water
To improve water management, we have implemented
initiatives such as using recycled water for non-potable
purposes and investing in water saving fittings as part of
our commitment to enhance water resilience.
How we create value and our progress in FY2022
We target to reduce water use intensity by 20% from
2015 to 2030. All our properties are awarded PUB’s
Water Efficient Building (“WEB”) Certification, a
testament of our efforts towards water conservation.
Our performance
During the year, the total water consumed across our
properties was 833.7 megaliters, with water intensity of
2.5 m3/m2, a decrease of 3.2% from last year. Our water
intensity saw a slight decrease of 0.7% in FY2022.
In order to reduce portable water consumption, our
buildings have procured NEWater – reclaimed water
treated for safe consumption through advanced
membrane technology. In FY2022, we consumed a total
of 322,605 m3 of NEWater.
Water consumption (megaliters)
and intensity (m3/m2)6
1,000
900
800
700
600
500
400
300
200
100
0
3.1
522.9
861.6
833.7
2.6
2.5
FY2020
FY2021
FY2022
4
3
2
1
0
5 Scope 3 Energy consumption and GHG emissions disclosed are based on electricity consumption by tenants at downstream leased areas.
GHG emissions for electricity consumption are calculated using the location-based method.
6 Water consumed from PUB, municipal water supply. Water consumption at landlord areas is computed. Water data for the reported periods
are restated to factor in historical consumption from the acquired ARF portfolio and replacement of previous estimates with actual data.
Water intensity excludes properties divested at any point during the reporting period.
SUSTAINABILITY REPORT Contents
Overview
Business
Review
Asset
Portfolio
Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
107
WASTE
What this means to us
The retail industry produces substantial amounts of
waste and plays a critical role in advancing the circular
economy. FCT is committed to reducing waste and
increasing our recycling rates. We engage tenants and
shoppers to encourage active waste management
across our properties.
How we manage waste
We have prioritised the key areas where we can make
the most impact. These include building on our waste
and recycling programme in partnership with our
tenants under the green lease initiative. We also aim
to introduce food waste recycling in all of FCT's retail
malls by 2024.
How we create value and our progress in FY2022
To improve recycling and waste management
processes in our malls, we ensure that our shoppers
have access to various recycling avenues. This year, we
continued to partner ALBA E-waste Smart Recycling
to encourage our shoppers and tenants to recycle
electronic waste (“e-waste”). We collected 9.7 tonnes
of e-waste in our malls which will be processed under
a national regulated e-waste management system.
We also strive to raise awareness among our shoppers
and tenants on eco-friendly lifestyle options. This
year, as part of Lunar New Year festivities, our property
manager Frasers Property Retail designed and
distributed red packets made from waste sugarcane
pulp as a less resource-intensive alternative to
traditional paper. The material has the ability to
compost in a span of 30 to 90 days without generating
any toxic matter.
Causeway Point also served as the venue sponsor for
a recycling challenge, organised by the North West
Community Development Council and Ngee Ann
Polytechnic’s School of Film & Media Studies, aimed
at promote recycling and green living habits among
residents near the mall.
Exploring design possibilities with red packets made from bagasse
ANNUAL REPORT 2022
108
FRASERS CENTREPOINT TRUST
Our performance
Waste generated ('000 tonnes)
and intensity (kg/m2)7
Waste sent for recycling ('000 tonnes)
and recycling rate (%)
18
16
14
12
10
8
6
4
2
0
16.4
47.8
16.5
50.5
57.3
9.8
60
55
50
45
40
35
30
25
20
15
10
2.5
2.0
1.5
1.0
0.5
0.0
5.8%
0.6
12.0%
2.0
10.8%
1.8
14%
12%
10%
8%
6%
4%
2%
0%
FY2020
FY2021
FY2022
FY2020
FY2021
FY2022
We track waste generated and waste sent for recycling across our properties. In FY2022, the total waste generated
from our properties was 16,545 tonnes, an increase of 1.1% from FY2021. Our waste intensity increased by 5.7%
to 50.5 kg/m2, which reflects the increase in activity in our properties. We sent a total of 1,978 tonnes, or 12.0%, of
our waste for recycling while the remaining was diverted to Singapore’s waste-to-energy plants. We have observed
a 10.9% increase in recycling rate attributable to our efforts in engaging tenants and shoppers to participate more
actively in the recycling process.
7 Waste generated is based on total building area. Waste intensity excludes properties divested at any point during the reporting period.
SUSTAINABILITY REPORT Contents
Overview
Business
Review
Asset
Portfolio
Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
109
FO C U S I N G O N P E O P L E
Our people are at the heart of our shared Group
Purpose of “Inspiring experiences, creating places
for good.", and we continue to invest in their safety
and holistic well-being. We strive to create a diverse
and inclusive environment where employees and
communities can thrive. We also empower our
staff with continuous learning and development
opportunities for their growth.
OUR APPROACH
▶ To develop policies that drive human capital
development and positive impacts in communities
▶ To adopt fair employment practices and invest in
equipping employees with relevant skills
▶ To invest in activities and programmes to support
community development
OUR PROGRESS
Focus Area
Our Goals
Our Progress in FY2022
Status8
Diversity,
Equity &
Inclusion
• To embed diversity, equity and inclusion in our
culture through employee engagement
• To provide training and education that raises
• Women made up 33% and 40% of
the Board of Directors and senior
management respectively
In progress
employee awareness of diversity and inclusion
and associated benefits
• To enhance processes and policies to
encourage greater flexibility and diversity
• To achieve 30 average training hours per
• 37 average training hours per
Achieved
employee each year
employee
• To train all employees on sustainability and
• All employees trained in
extend such training to the supply chain and
other stakeholders
sustainability via an e-learning
module
Skills &
Leadership
Health &
Well-being
• To ensure continuous learning to build a
resilient organisation
• To transform our workplace by building a
wellness culture that positively engages
employees
• To create awareness of health management,
support mental wellness and foster a
connected workforce
• To create a safe working environment and
achieve zero injuries
On track
On track
• All properties have implemented
ISO 45001 occupational health
and safety (“OH&S”) management
system
• Seven malls certified BizSAFE
STAR by the Workplace Safety and
Health Council
• Northpoint City awarded the
biennial National Safety and
Security Watch Group (“SSWG”)
Award
• Collected 7.8 tonnes of foodstuff
from members of the public for
donation to Food Bank Singapore
• Developed a tenant engagement
plan to be implemented at FCT’s
properties
Community
Connectedness
• To seek meaningful long-term relationships
that respect local cultures and create lasting
benefits
• To identify measurements to quantify positive
contributions
• To conduct tenant engagement programmes
at least once a year for each property by
FY2021
8 On track: Target is either achieved or is on track to be achieved on time.
In progress: Target is delayed but progress is still being made and could still be achievable on time.
Not on track: Target is delayed to the point that it is unlikely that it will be achieved on time.
ANNUAL REPORT 2022
110
FRASERS CENTREPOINT TRUST
DIVERSITY, EQUITY AND INCLUSION
What this means to us
FCT believes in the value of a diverse and inclusive
culture that taps on the unique experiences and
perspectives of the individuals in our workforce. This
diversity brings us closer to the communities that we
serve, and the resulting wealth of knowledge, skills
and experience helps us create value by improving
our employees’ well-being and productivity and
encouraging talent retention.
How we manage Diversity, Equity and Inclusion
We are aligned with our Sponsor’s Diversity and
Inclusion Policy as well as its Group Diversity, Equity
and Inclusion Framework which lays a foundation
for us to support a diverse and inclusive workforce.
Together with our Sponsor, we are a signatory to the
Tripartite Alliance for Fair & Progressive Employer
Practices (“TAFEP”) in Singapore and are committed
towards adopting fair and progressive HR practices. In
addition, as a member of Singapore National Employer
Federation, we are kept informed of the latest statutory
guidelines to ensure we are aligned with national
practices. We continue to practice an open appraisal
system for all employees of the REIT Manager and
reward based on merit.
How we create value and our progress in FY2022
We foster diversity and inclusion in our culture through
regular employee engagement. Our employees
participate in a biennial Culture Survey led by our
Sponsor to understand the business’s cultural traits
and lay a foundation for transforming it in a positive
and impactful way. In FY2022, 65% of our employees
participated in an interim Pulse survey to track progress
from actions arising from the survey insights. Senior
and middle management representatives of the REIT
Manager and our property manager, Frasers Property
Retail, also participated in a two-day Leader Conference
to align on focus areas and priorities and discuss
strategies to augment the effectiveness of our business
and cultivate a more resilient and purpose-driven
culture at FCT.
Our Employee Profile
We believe that a diverse team with wide range
of skillsets and experiences brings to the table
creative and innovative insights as well as improving
productivity. As at 30 September 2022, the REIT
Manager has one contract and 26 permanent
employees, all of whom are based in Singapore. 88%
of our permanent employees are aged between 30
and 50, while 8% are below 30 and 4% are above 50
years old. Women make up 69% of our permanent
staff headcount, and they represent 33% and 40%
respectively of our Board of Directors and senior
management roles. During the year, we hired five new
employees, representing a hiring rate9 of 19%, and
had two voluntary employee turnovers, making up a
turnover rate10 of 8%.
Employee Breakdown by Gender and Age Group
By Gender
By Age Group
Female
Male
FY2021 FY2022
59%
41%
69%
31%
< 30 Years Old
30 - 50 Years Old
> 50 Years Old
FY2021 FY2022
4%
89%
7%
8%
88%
4%
9 The hiring rate refers to the number of new hires in the financial year divided by the total number of permanent employees as at
30 September 2022.
10 The turnover rate refers to the number of employees who voluntarily left the company during the financial year divided by the total number of
permanent employees as at 30 September 2022.
SUSTAINABILITY REPORT Contents
Overview
Business
Review
Asset
Portfolio
Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
111
Hiring and Turnover by Gender and Age Group
By Gender
Hiring and turnover rates
By Age Group
Number of new hires
and turnovers
Hiring and turnover rates
100%
100%
Number of new hires
and turnovers
100%
80%
60%
40%
20%
0%
25%
22%
13%
2
1
4
0
0%
5
19%
2
8%
10
5
0
80%
60%
40%
20%
0%
50%
2
1
3
1
0
13%
4%
0%
0
0%0
10
5
0
Male
Female
Total
< 30 Years Old
30-50 Years Old
> 50 Years Old
Hiring rate | Turnover rate | Number of new hires | Number of turnovers
SKILLS AND LEADERSHIP
What this means to us
Cognisant that an empowered workforce is core to
the business and helps us attract and retain top talent,
we put learning and development at the centre of our
human capital and talent management strategy. This will
enable us to forge a resilient corporate culture, build
organisational agility, stay competitive and hone leaders
with growth and change-ready mindsets.
How we manage skills and leadership
FCT’s Learning and Development (“L&D”) initiatives are
driven by our Sponsor’s Learning Academy. Through
a learning and development strategy known as our
Learning Plan, the Learning Academy team identifies
and curates comprehensive training programmes
to meet the needs of diverse employees within the
organisation. The Learning Plan is refreshed annually
to better align with external trends and our business
strategy. The Plan comprises seven learning
themes: People & Culture, Sustainability, Innovation,
Technology & Digitalisation, Customer-centricity,
Functional Excellence and Mandatory & Compliance.
How we create value and our progress in FY2022
We work in tandem with our Sponsor’s Learning
Academy during a learning needs dialogue session
to discuss our employee requirements and craft
solutions that meet our business learning priorities and
outcomes. In alignment with our Sponsor’s Learning
Plan, our employees completed a total of 878 hours
of learning in FY2022, with each employee receiving
an average of 37 hours of learning (Male: 32; Female:
39) during the year. This was in line with our Sponsor’s
target for each employee to receive an average of 30
hours of learning. Further, all our employees have been
trained on sustainability via an e-learning module as at
30 September 2022.
This year, 15 employees also participated in our
Sponsor’s third Learning Festival which was held
across two weeks with the theme “Gain, Grow, Build”.
Employees had access to 21 virtual and in-person
sessions presented across three tracks – Gain Insights,
Grow Resilience and Build Community – involving 50
internal and external experts. The Festival featured
a mix of in-person and virtual learning sessions, as
well as elements of gamification to encourage greater
engagement and participation.
Learning Hours by Employment Type
Learning Hours by Gender
Hours
1,000
979
750
Hours/
Employee
997
878
878
80
500
39
37
38
37
250
0
17
17
0
40
0
Hours
1,000
750
500
250
0
425
39
32
259
571
38
619
39
Hours/
Employee
80
40
0
FY2021 FY2022 FY2021 FY2022 FY2021 FY2022
FY2021
FY2022
FY2021
FY2022
Executive
Non-Executive
Total
Male
Female
ANNUAL REPORT 2022 112
FRASERS CENTREPOINT TRUST
HEALTH AND WELL-BEING
What this means to us
Nurturing the holistic health and wellness of
stakeholders is a priority for us, and FCT is committed
to creating a safe environment for our employees,
tenants, customers and other stakeholders. We are
taking steps to enhance the physical, mental and
environmental well-being of the communities that we
interact with, through upholding stringent workplace
safety practices and by creating spaces that promote
well-being.
How we manage health and well-being
Workplace Health and Safety
We continue to adopt and implement the Group’s
Workplace Health and Safety Policy. We are also
cognisant of the Code of Practice on Chief Executives‘
and Board of Directors‘ WSH Duties launched in
September 2022 by the Singapore Tripartite Alliance
for Workplace Safety and Health, and are taking steps
to seek further alignment with the Code in line with our
commitment to keeping safety as a priority.
Frasers Property Retail‘s Sustainability & Safety Working
Committee comprising representatives from FCT, retail
management and commercial portfolios, support the
implementation of environmental health and safety
management systems, policies and monitoring and
tracking of occupational health and safety performance.
The Working Committee meets monthly to discuss
safety-related issues and progress. Frasers Property
Retail’s Sustainability Steering Committee oversees
the Working Committee and is responsible for key
decisions to drive sustainability goals.
Hazard identification, risk assessment and incident
investigation
Quarterly site safety walks were planned to facilitate
better engagement for our senior leaders and our
staff members on site. Our retail and commercial
properties also undergo an annual audit on ISO 45001
occupational health and safety management system
where hazard and identification of risk assessments are
examined on audit sites.
Well-being
In addition to the wellness activities organised by
Frasers Property Retail’s Sustainability & Safety
Working Committee, FCT also supports the initiatives
spearheaded by our Sponsor’s Corporate Wellness
team. Our approach is guided by the Group’s Corporate
Wellness Framework founded on four pillars:
▶ Physical: Helping employees reach ideal physical
health and fitness
▶ Mental: Reducing relevant stressors in an
employee’s life
▶ Financial: Providing financial insight and knowledge
to employees
▶ Environmental: Reducing direct external stressors
within the workplace
How we create value and our progress in FY2022
Implementing robust Occupational Health and Safety
management systems
All our malls have implemented ISO 45001 occupational
health and safety management systems. Seven of our
malls are also certified BizSAFE STAR by the Workplace
Safety and Health Council. We also ensure contractors
working at our properties are certified BizSAFE Level 3,
which is a prequalification requirement for contractors
working on contract above certain value.
During the year, we recorded no work-related fatalities
for our staff and contractors. However, we recorded two
lost-time injuries with a lost-time injury rate of 1.2 and
severity rate of 30.2. We have taken appropriate follow-
up action after the incidents to remediate and prevent
further occurrence and will continue to strengthen our
safety protocols.
Nurturing the holistic well-being of our staff
The impacts of COVID-19 pandemic underscored
the importance of mental health and well-being. We
look to support our team by supporting them with
the resources they need to become their best selves.
The REIT Manager’s employees have access to the
employer assistance programme launched by our
Sponsor, which provides confidential professional
counselling services for any challenges they are facing.
This programme was extended to immediate family
members in August 2022, to better support our staff. As
part of the Frasers Property Group, all our full-time and
contract employees have access to a comprehensive
welfare and benefits scheme that covers insurance
coverage, medical and dental benefits, family care leave
and parental leave. We make monthly contributions to
our employees’ Central Provident Fund accounts in
compliance with legislated social security policies.
Our property manager Frasers Property Retail
kickstarted its first campaign dedicated to mental
wellness in December 2021 to promote healthier
habits and lifestyles among employees. Activities
include webinars to raise awareness on mental health
and a fitness challenge to encourage employees
to get active and spend time outdoors to recharge.
SUSTAINABILITY REPORT Contents
Overview
Business
Review
Asset
Portfolio
Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
113
Over six weeks, participants clocked 14,617 km and
the campaign raised S$20,553, which went towards
supporting Care Corner Singapore’s Mental Wellness
& Counselling Services. We actively encourage staff
to prioritise mental well-being by participating in the
Group Corporate Wellness programmes organised
throughout the year, and collaborated with Healthway
Medical Group to organise a webinar for employees on
World Mental Health Day in October 2021 to understand
common mental health issues relating to depression
and anxiety.
Every August, we participate in our Sponsor’s annual
Health & Safety Month. On FCT and our property
manager Frasers Property Retail’s end, we organised
supporting activities such as webinars on workplace
safety and ergonomics, art-jamming wellness sessions
and a team bonding bowling session. We also joined
initiatives organised across the Group such as a
jog-walk nature hunt and a virtual gameshow to raise
awareness on health and safety.
Our property manager Frasers Property Retail has
initiated a policy for all its staff to end their workday
early every last Friday of the month to spend more time
with their family and to prioritise their mental well-being.
We also support the nation’s ‘Eat With Your Family Day’
initiative launched by the Centre for Fathering, where
employees can leave work early every last Friday of
the school semester to spend quality time with their
families over a meal.
Fostering a healthy environment for our shoppers
and tenants
We aim to provide a safe and comfortable environment
for our shoppers and tenants who spend a
considerable amount of time in our spaces. Regular
indoor environment quality tests are conducted across
our properties to monitor comfort levels, aligned to the
BCA Green Mark criteria.
At Changi City Point, we hold weekly workout classes
for shoppers to promote physical well-being, including
line-dancing, Zumba, kickboxing and yoga classes. A
workout marathon was also organised in March 2022,
attracting around 480 participants across 18 sessions.
In recognition of efforts in enhancing the safety and
security of its premises, Northpoint City received the
biennial SSWG Individual Award from the Singapore
Police Force and the Singapore Civil Defence Force.
COMMUNITY CONNECTEDNESS
What this means to us
In line with our Sponsor’s Purpose of “Inspiring
experiences, creating places for good.", FCT is
committed to harnessing the resources that we have
in order to create vibrant spaces and foster deeper
connections between stakeholders to ensure that they
thrive alongside our business.
How we manage community connectedness
We are guided by our Sponsor’s Community Investment
Framework, which articulates three areas where we can
channel our resources to make the greatest positive
impact - health, education, and the environment. This
is reinforced with activities that are tailored to local
communities to meet their specific needs.
How we create value and our progress in FY2022
Health
Together with Frasers Property Retail, we had our
fourth run of partnership with Food Bank Singapore to
distribute food bundles to alleviate food insecurity for
communities in need. In FY2022, our shoppers, staff
and tenants donated 7.8 tonnes of non-perishable
food items at dedicated donation boxes located across
our malls. Employees also spent a day packing food
bundles of essential items for 1,000 needy families
in Singapore. We also organised an Angbao of Love
campaign during Chinese New Year, where shoppers at
Causeway Point, Tiong Bahru Plaza and Northpoint City
could make red packet contributions at donation boxes
located within our malls, in support of local charity
Care Corner Singapore, which cares for communities
in need.
Participating in a jog-walk nature hunt as part of Frasers Property’s
Health & Safety Month
Distributing food bundles to communities
in need
ANNUAL REPORT 2022 114
FRASERS CENTREPOINT TRUST
ABOUT THIS REPORT
This is FCT’s eighth Sustainability Report and
this report discloses FCT’s Environmental, Social
and Governance (“ESG”) performance for all FCT
properties during the period from 1 October 2021
to 30 September 2022 (“FY2022”).
This report has been prepared in accordance with
the sustainability reporting requirements of:
▶ the Global Reporting Initiative (“GRI”) Universal
Standards 2021; and
▶ the SGX-ST Listing Manual (Rules 711A and
711B) and the SGX Core ESG Metrics.
REPORT SCOPE
Data disclosed in this Sustainability Report covers
all properties in Singapore owned by FCT during the
year under review, unless stated otherwise. These
properties are Causeway Point, Waterway Point (of
which FCT holds a 40.00% interest), Tampines 1,
Northpoint City North Wing (inclusive of the Yishun
10 Retail Podium), Tiong Bahru Plaza, Century Square,
Changi City Point, Hougang Mall and White Sands.
The employee related information disclosed refers to
the activities and performance of Frasers Centrepoint
Asset Management (the “Manager” or “FCAM”). As the
Manager of FCT, FCAM strives to support sustainability
efforts by encouraging good sustainability practices
at our properties. We have also included health &
safety data of our contractor’s employees working
at our properties, where applicable. The contents
within this report have been disclosed in good faith
and to the best of our knowledge. Together with the
other information set out in our Annual Report, this
Sustainability Report provides a comprehensive and
transparent reporting to our stakeholders.
To verify the reliability of the data and management
approach disclosed in this Report, we sought an
independent limited assurance by Ere-S Pte Ltd, an
independent third-party assurance provider. Details
of the assurance scope and findings can be found
in the Independent Assurance Statement on pages
115 to 117.
FEEDBACK
We are always looking to improve our sustainability
efforts and we welcome your feedback.
Please contact:
Mr Chen Fung Leng
Vice President, Investor Relations
Frasers Centrepoint Trust
Email: fungleng.chen@frasersproperty.com
Striving for a cleaner environment during a beach-up
event with Plastic-Lite
In early 2022, our malls also partnered Temasek
Foundation to distribute Air+ surgical masks to families
in need. A space was also provided at Causeway Point,
Century Square and Hougang Mall from November to
December 2021 for Singapore households to collect
the complimentary Povidone-iodine mouth gargle.
Environment
During Frasers Property Environment Month in April,
our property manager Frasers Property Retail held a
beach clean-up event together with Plastic-Lite. In total,
we collected 16 kg of trash off our shores. Century
Square, Tampines 1 and White Sands employees
also participated in various sustainability upcycling
workshops. In partnership with Soles4Souls, Changi City
Point gathered gently worn sports or covered shoes
from shoppers through a donation drive. The shoes
are repurposed to give them longer life spans, while
also helping people in developing countries launch and
sustain their small businesses.
Progress in FY2022
As a testament to uplifting local communities, our
property manager Frasers Property Retail was one
of the four recipients out of 400 entries to achieve
the Community Initiative Award – Sustainability at the
Asia Corporate Excellence & Sustainability Awards
(“ACES”) in November 2021. The accolade is conferred
upon organisations that lead initiatives that contribute
significantly to the development of the communities
while ensuring they are aligned with core business
activities, backed with strong engagement at the
Board or senior leadership level. At the same time,
organisations that demonstrate a culture of care
and greater societal and environmental awareness,
especially amidst these challenging times, are deeply
regarded and favourably scored in this year’s Awards.
Our property manager Frasers Property Retail was
also recognised by Singapore’s national community
response movement as one of the 21 strong community
partners who contributed significantly towards the
SGSecure Responders’ Network and Community First
Responder Initiatives, through successful awareness-
raising collaborations with Northpoint City and
Causeway Point.
Contents
Overview
Business
Review
Asset
Portfolio
Risk
Management
Sustainability
Corporate
Governance
Financial &
Other Information
115
INDEPENDENT ASSURANCE STATEMENT
To the management of Frasers Centrepoint Trust
Ere-S Pte Ltd (“Ere-S”) has undertaken an independent
limited assurance on the content of Frasers Centrepoint
Trust‘s (“FCT”) Sustainability Report 2022 (“the Report”).
The engagement, which took place between September
and November 2022, formed part of a wider assurance
of Frasers Property Limited’s Sustainability Report.
Scope
The assurance encompassed the entire Report and
focused on all figures, statements and claims related to
sustainability during the reporting period October 2021
to September 2022. This included the environmental
and social management approach and performance
related to the company’s corporate office and portfolio
of owned and managed properties (10 in total), covering
the following topics as stated in the GRI Content Index
of the Report:
▶ Energy, Water and effluents, Emissions, Employment,
Occupational health and safety.
Ere-S did not verify that all elements required by the
GRI Standards (what to report) on each disclosure
listed in the Report’s GRI Content Index had been fully
reported, or whether FCT’s material issues, approaches
and outcomes presented in the Report were specifically
aligned with any other frameworks mentioned in the
Report, such as the Task Force on Climate-Related
Financial Disclosures (“TCFD”) framework and the
Sustainable Development Goals (“SDGs”).
Where applicable, FY2021 performance figures
presented in charts and tables of the Report were
cross-checked by Ere-S against the disclosures
verified during last year’s assurance carried out by
our Team on FCT’s Sustainability Report 2021. Other
historical performance data prior to FY2022 and figures
or statements unrelated to sustainability were not
covered in the assurance. These included organisation
profile and corporate structure, corporate financial
and economic performance, and, where applicable,
technical descriptions and figures of construction,
machineries, technologies, plants and production
processes.
Reporting criteria
The information was verified against the principles of
Accuracy, Verifiability, Clarity, Completeness, Balance,
Comparability, Sustainability Context and Timeliness
as defined under the Global Reporting Initiative (“GRI”)
Standards.
Type of assurance
This assurance engagement was carried out to a limited
level of assurance in accordance with the International
Standard on Assurance Engagements 3000 (“ISAE
3000”), Assurance Engagements Other than Audits or
Reviews of Historical Financial Information. A limited
level assurance relies on desktop-based assessment
and basic sampling that is sufficient to support the
plausibility of the information.
Assurance methodology
The assurance procedures and principles applied in
this engagement are compliant with ISAE 3000 and
are drawn from a methodology developed by Ere-S
comprising the following steps:
1. Identifying and classifying data sets according to the
relevant topics and the types of evidence required
for the verification process.
2. Carrying out virtual interviews and remote desktop-
based data verification with the key data owners
located at FCT’s corporate office in Singapore.
Specifically:
▶ Enquiring about the quantitative and qualitative
aspects of the performance disclosures, related
statements and the underlying measurement
systems, data collection and quality control
mechanisms.
▶ Requesting evidence of data sources from the
data owner or key functional manager, as well as
explanations of data collection and calculation
methods (including conversion factors,
estimates, key assumptions and apportionment
methodologies) to substantiate the figures and
claims.
▶ Taking a broad sampling of quantitative data to
validate data sets and corresponding sources,
as well as other supporting information.
▶ Challenging the claims made in the Report and
comparing the presented evidence (including
calculation methods, criteria and assumptions)
with data from other properties covered in
the wider assurance engagement and, where
applicable, with external sources.
3. Assessing the collected data against the reporting
criteria and providing recommendations for
correction of the Report’s content or for future
improvement of the data collection and reporting
procedures.
4. Validating the performance disclosures submitted in
the final version of the Report and, where applicable,
verifying that Ere-S recommendations have been
applied.
ANNUAL REPORT 2022 116
FRASERS CENTREPOINT TRUST
Social performance figures, such as those relating to
workforce profile, health and safety, training and survey
results, as well as the compilation of environmental
figures and some of the group-level initiatives disclosed
in the Report, were verified in separate interviews as
part of Frasers Property Limited.
Ere-S assessment of statements concerning the
number (or absence) of complaints, incidents, and
cases of non-compliance to policies and regulations
related to environmental and social issues, was founded
on confirmation by key data owners and, where
available, internal documents presented during the
interviews.
FCT's stakeholder groups or their representatives were
not interviewed during the assurance to assess the
results of the engagement initiatives and the impact of
the actions taken by the organisation.
Limitations
A limited assurance provides a relatively lower level
of confidence in an organisation’s disclosures than
a reasonable level of assurance (as used in financial
auditing) would provide. The restricted extent,
timeline and precision of audit procedures in a limited
assurance can leave small misstatements undetected.
In addition, sustainability-related evidence being more
persuasive rather than conclusive, the assurance
findings are more constrained to the judgement of the
assurance practitioner.
To mitigate the associated risk of material misstatement
in the information being assessed during this
engagement and to provide greater confidence in
the accuracy of the information, Ere-S sought further
confirmation of the presented evidence, including
application of the management approach, data
collection methods, criteria and assumptions, with
multiple data owners and other documentation from
internal and external sources.
Responsibility and independence
This statement represents the independent opinion
of Ere-S, whose responsibility was to provide the
assurance, to express conclusions according to the
agreed scope, and to prepare the assurance report and
this assurance statement for the management of FCT
alone and for no other purpose. The management of
FCT was responsible for the preparation of the Report,
including all statements and figures contained within
it, and for the selection and application of the methods
to collect and compile the performance data of its
operations and properties. Ere-S was not involved in
the development of the Report or any other aspects
or projects related to the sustainability framework of
FCT. The activities of Ere-S are independent of FCT
and Frasers Property Limited and contain no financial
interest in their business operations.
FINDINGS AND OBSERVATIONS
During the assurance, we found evidence showing an
overall strengthening of FCT’s sustainability framework
and processes in line with stronger guidelines and the
policies of Frasers Property Limited. This includes the
continuous integration of the Group’s net-zero carbon
objectives, a commitment to set FCT's own science
based GHG reduction targets, and further consolidation
of the Company’s environmental risk management
framework in accordance with the Monetary Authority
of Singapore guidelines.
Regular stakeholder engagement could also be
observed through diverse channels and platforms,
with stronger evidence demonstrated for employees,
customers, investors and government bodies.
Engagement with other stakeholder groups appeared to
be still limited, although some progress could also be
observed in the exchanges with suppliers regarding the
implementation of the Responsible Sourcing Policy.
In Ere-S opinion, the content of the Report is adequately
comprehensive and clear, and presents accurate
information, including performance figures, that could
be evaluated and traced back to the source data sets,
calculation methods and supporting evidence. Based
on our assessment, the social performance data and,
particularly, the properties’ environmental performance
data and collection processes presented an overall
high level of accuracy and verifiability. No significant
gaps or inconsistencies were found, and Ere-S
recommendations for minor corrections were promptly
applied by the reporting team.
Although the content of the Report has been enhanced
by an alignment with the guidelines of the Task Force
on Climate-Related Financial Disclosures (“TCFD”),
there is still room for improvement in the performance
disclosures within the value chain. For example,
completeness of the disclosures on GHG emissions
within the company’s operations could be achieved
with the inclusion of Scope 1 emissions generated from
the consumption of refrigerant gases and stationery
diesel by the cooling systems and backup power
generators of the properties. However, based on the
available (but not verified) data points, these Scope
1 emissions represent less than 1% of the portfolio’s
Scope 2 emissions (from electricity consumption).
More visible improvement in the Report completeness
can be accomplished by providing more detailed
and expanded coverage of the indirect social and
environmental impact in the rest of the value chain,
particularly concerning Scope 3 emissions. Ere-S
commends the continuous efforts, partially described
above, made by FCT and the Group in that direction.
SUSTAINABILITY REPORT
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Conclusion
On the basis of a limited assurance engagement
consistent with the above-listed criteria, nothing has
come to Ere-S attention that causes us not to believe
that, in all material respects, FCT Sustainability Report
2022 provides a credible and fair representation of
the organisation’s sustainability profile and includes
statements and figures that achieve an adequate level
of reliability and accuracy.
A detailed assurance report containing the above
findings and additional recommendations for
improvement has been presented to the management
of FCT.
Reg no. 201003736W
www.ere-s.com
Singapore, 24 November 2022
Jean-Pierre Dalla Palma
Director and Lead Certified Sustainability Assurance
Practitioner
Ere-S Pte Ltd is a consulting company specialising in
business sustainability and provides services in the
domains of sustainability reporting, sustainability report
assurance, stakeholder engagement and training. Our
assurance team is composed of assurance practitioners
with expertise in corporate sustainability and each
member is required to follow Ere-S’ assurance code
of conduct, which can be found at www.ere s.com/
assurance - code-of-conduct. Ere-S is not responsible
for any actions taken by other parties as a result of the
findings presented in this assurance statement.
ANNUAL REPORT 2022 118
FRASERS CENTREPOINT TRUST
G R I CO N T E N T I N D E X
Frasers Centrepoint Trust has reported in accordance with the GRI Standards for the period 1 October 2021 to 30
September 2022 (“FY2022”). We adopt GRI 1: Foundation 2021 within our Sustainability Report. The applicable GRI
Sector Standards are the GRI G4 Construction and Real Estate Sector Disclosures.
GRI
STANDARD/
OTHER
SOURCE
DISCLOSURE
SECTION AND PAGE
REFERENCE/NOTES
REQUIREMENT(S)
OMITTED
REASON AND
EXPLANATION
OMISSION
General disclosures
GRI 2:
General
Disclosures
2021
The organization and its reporting practices
2-1 Organizational details
2-2 Entities included in the
organization’s sustainability
reporting
2-3 Reporting period, frequency
and contact point
Corporate information, inside
back cover of Annual Report
2022.
About this Report, page 114.
About this Report, page 114.
2-4 Restatements of information Energy & Carbon, page 105.
2-5 External assurance
Activities and workers
Water, page 106.
Independent Assurance
Statement, page 115.
2-6 Activities, value chain and
other business relationships
About Frasers Centrepoint Trust,
page 2.
2-7 Employees
2-8 Workers who are not
employees
Governance
2-9 Governance structure and
composition
Diversity, Equity and Inclusion –
Our Employee Profile, page 110.
Corporate and Organisation
Structure, page 3.
Board of Directors, pages 16
to 19.
Management Team, pages 20
to 21.
Corporate Governance, pages
125 to 160.
Managing Sustainability –
Sustainability Governance,
page 90.
2-10 Nomination and selection
of the highest governance body
Corporate Governance,
pages 125 to 160.
2-11 Chair of the highest
governance body
Board of Directors, pages 16
to 19.
2-12 Role of the highest
governance body in overseeing
the management of impacts
Board of Directors, pages 16
to 19.
Board Statement, page 85.
Managing Sustainability –
Sustainability Governance,
page 90.
a,b,c
Not applicable due
to the nature of our
business.
SUSTAINABILITY REPORT Contents
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119
GRI
STANDARD/
OTHER
SOURCE
GRI 2:
General
Disclosures
2021
DISCLOSURE
2-13 Delegation of responsibility
for managing impacts
2-14 Role of the highest
governance body in
sustainability reporting
2-15 Conflicts of interest
SECTION AND PAGE
REFERENCE/NOTES
REQUIREMENT(S)
OMITTED
REASON AND
EXPLANATION
OMISSION
Corporate Governance,
pages 125 to 160.
Management Team, pages 20
to 21.
Managing Sustainability –
Sustainability Governance,
page 90.
Board Statement, page 85.
Sustainability Governance,
page 90.
Corporate Governance Report –
Conflicts of Interest, pages 140
to 141.
Additional Information –
Interested Person Transactions,
pages 237 to 238.
2-16 Communication of critical
concerns
Corporate Governance Report,
pages 125 to 160.
2-17 Collective knowledge of the
highest governance body
Board Statement, page 85.
Corporate Governance Report
– Training and Development of
Directors, pages 133 to 134.
2-18 Evaluation of the
performance of the highest
governance body
Corporate Governance Report –
Board Performance Evaluation,
page 141.
2-19 Remuneration policies
2-20 Process to determine
remuneration
2-21 Annual total compensation
ratio
Corporate Governance Report
– Remuneration Matters, pages
142 to 148.
Corporate Governance Report
– Remuneration Matters, pages
142 to 148.
a, b, c
Strategy, policies and practices
2-22 Statement on sustainable
development strategy
2-23 Policy commitments
2-24 Embedding policy
commitments
Board Statement, page 85.
Risk-based Management –
Maintaining a strong system of
policies to strengthen resilience,
page 95.
Risk-based Management –
Upholding strict compliance
practices, page 95.
Risk-based Management –
How we manage Risk-Based
Management, page 95.
Confidentiality
constraints.
We are unable to
disclose the ratio
due to our highly
competitive labour
market.
ANNUAL REPORT 2022 120
FRASERS CENTREPOINT TRUST
GRI
STANDARD/
OTHER
SOURCE
GRI 2:
General
Disclosures
2021
DISCLOSURE
2-25 Processes to remediate
negative impacts
2-26 Mechanisms for seeking
advice and raising concerns
2-27 Compliance with laws and
regulations
2-28 Membership associations
2-29 Approach to stakeholder
engagement
SECTION AND PAGE
REFERENCE/NOTES
REQUIREMENT(S)
OMITTED
REASON AND
EXPLANATION
OMISSION
Managing Sustainability –
Stakeholder Engagement,
page 91.
Community Connectedness –
How we create value and our
progress in FY2022, page 113.
Risk-based Management –
Upholding strict compliance
practices, page 95.
Risk-based Management –
Upholding strict compliance
practices, page 95.
Managing Sustainability –
Industry Alignment, page 92.
Managing Sustainability –
Stakeholder Engagement,
page 91.
2-30 Collective bargaining
agreements
There are no collective
bargaining agreements in place.
Material topics
GRI 3:
Material
Topics 2021
3-1 Process to determine
material topics
Managing Sustainability -
Materiality Assessment, page 93.
3-2 List of material topics
Managing Sustainability -
Materiality Assessment, page 93.
Economic performance
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
201-1 Direct economic value
generated and distributed
GRI 201:
Economic
Performance
2016
201-2 Financial implications and
other risks and opportunities
due to climate change
Operations Review, pages 26
to 33.
Financial Review, pages 34 to 39
Letter to Unitholders, pages 12
to 14.
Financial Review,
pages 34 to 39.
Financial Statements, pages 161
to 233.
Risk management framework,
pages 81 to 83.
Risk-based Management
- Aligning with Monetary
Authority of Singapore (MAS)
Guidelines on Environmental
Risk Management for Asset
Managers, page 96.
201-3 Defined benefit plan
obligations and other retirement
plans
Health and Well-being –
Nurturing the holistic well-being
of our staff page 112.
201-4 Financial assistance
received from government
Notes to the Financial
Statements – Government
Grants, page 212.
SUSTAINABILITY REPORT Contents
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GRI
STANDARD/
OTHER
SOURCE
DISCLOSURE
SECTION AND PAGE
REFERENCE/NOTES
REQUIREMENT(S)
OMITTED
REASON AND
EXPLANATION
OMISSION
Anti-corruption
GRI 3:
Material
Topics 2021
GRI 205:
Anti-
corruption
2016
Energy
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
Risk-based Management,
page 95.
205-1 Operations assessed for
risks related to corruption
205-2 Communication and
training about anti-corruption
policies and procedures
205-3 Confirmed incidents of
corruption and actions taken
Enterprise-wide Risk
Management, page 150 and
pages 81 to 83.
Risk-based Management –
How we manage Risk-based
Management, page 95.
Corporate Governance Report
– Code of Business Conduct,
pages 154 to 155.
Risk-based Management –
How we create value and our
progress in FY2022, page 95.
Risk-based Management –
How we create value and our
progress in FY2022, page 95.
3-3 Management of material
topics
Energy and Carbon, page 105.
GRI 302:
Energy 2016
302-1 Energy consumption
within the organization
302-2 Energy consumption
outside of the organization
302-3 Energy intensity
302-4 Reduction of energy
consumption
Energy and Carbon – How we
create value and our progress in
FY2022, page 105.
Energy and Carbon – How we
create value and our progress in
FY2022, page 105.
Energy and Carbon – How we
create value and our progress in
FY2022, page 105.
Energy and Carbon – How we
create value and our progress in
FY2022, page 105.
302-5 Reductions in energy
requirements of products and
services
Resilient Properties – How we
create value and our progress in
FY2022, page 98.
Water and effluents
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
Water, page 106.
ANNUAL REPORT 2022
122
FRASERS CENTREPOINT TRUST
GRI
STANDARD/
OTHER
SOURCE
GRI 303:
Water and
Effluents
2018
Emissions
GRI 3:
Material
Topics 2021
GRI 305:
Emissions
2016
DISCLOSURE
SECTION AND PAGE
REFERENCE/NOTES
REQUIREMENT(S)
OMITTED
REASON AND
EXPLANATION
OMISSION
303-1 Interactions with water as
a shared resource
Water - How we manage water,
page 106.
303-2 Management of water
discharge-related impacts
Water discharge is generally
managed by municipalities.
303-3 Water withdrawal
303-4 Water discharge
303-5 Water consumption
Water – How we create value and
our progress in FY2022, page 106.
Water discharge is generally
managed by municipalities.
Water – How we create value and
our progress in FY2022, page 106.
3-3 Management of material
topics
Energy and Carbon, page 105.
Energy and Carbon – How we
create value and our progress in
FY2022, page 105.
Energy and Carbon – How we
create value and our progress in
FY2022, page 105.
Energy and Carbon – How we
create value and our progress in
FY2022, page 105.
Energy and Carbon – How we
create value and our progress in
FY2022, page 105.
Energy and Carbon – How we
create value and our progress in
FY2022, page 105.
305-1 Direct (Scope 1) GHG
emissions
305-2 Energy indirect (Scope 2)
GHG emissions
305-3 Other indirect (Scope 3)
GHG emissions
305-4 GHG emissions intensity
305-5 Reduction of GHG
emissions
305-6 Emissions of ozone-
depleting substances (ODS)
305-7 Nitrogen oxides (NOx),
sulfur oxides (SOx), and other
significant air emissions
a, b, c, d
a, b, c
Not applicable due
to the nature of our
business.
Not applicable due
to the nature of our
business.
Employment
GRI 3:
Material
Topics 2021
GRI 401:
Employment
2016
3-3 Management of material
topics
Diversity, Equity and Inclusion,
page 110.
401-1 New employee hires and
employee turnover
401-2 Benefits provided to full-
time employees that are not
provided to temporary or part-
time employees
401-3 Parental leave
Diversity, Equity and Inclusion
– How we create value and our
progress in FY2022, page 110.
Diversity, Equity and Inclusion
– How we create value and our
progress in FY2022, page 110.
Health and Well-being –
How we create value and our
progress in FY2022, page 112.
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123
GRI
STANDARD/
OTHER
SOURCE
DISCLOSURE
SECTION AND PAGE
REFERENCE/NOTES
REQUIREMENT(S)
OMITTED
REASON AND
EXPLANATION
OMISSION
Labor/management relations
3-3 Management of material
topics
Diversity, Equity and Inclusion,
page 110.
402-1 Minimum notice periods
regarding operational changes
a, b
GRI 3:
Material
Topics 2021
GRI 402:
Labor/
Management
Relations
2016
Occupational health and safety
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
403-1 Occupational health and
safety management system
Health and Well-being, page 112.
Health and Well-being
- Implementing robust
Occupational Health and Safety
Management Systems, page 112.
Not applicable. The
notice period varies
on a situational
basis.
403-2 Hazard identification,
risk assessment, and incident
investigation
Health and Well-being – How we
manage Health and Well-being,
page 112.
403-3 Occupational health
services
403-4 Worker participation,
consultation, and
communication on occupational
health and safety
403-5 Worker training on
occupational health and safety
403-6 Promotion of worker
health
403-7 Prevention and mitigation
of occupational health and
safety impacts directly linked
by business relationships
Health and Well-being -
How we create value and our
progress in FY2022, page 112.
Health and Well-being -
How we create value and our
progress in FY2022, page 112.
Health and Well-being -
How we create value and our
progress in FY2022, page 112.
Health and Well-being -
How we create value and our
progress in FY2022, page 112.
Health and Well-being -
How we create value and our
progress in FY2022, page 112.
403-8 Workers covered by an
occupational health and safety
management system
Health and Well-being -
How we create value and our
progress in FY2022, page 112.
403-9 Work-related injuries
403-10 Work-related ill health
Health and Well-being -
How we create value and our
progress in FY2022, page 112.
Health and Well-being -
How we create value and our
progress in FY2022, page 112.
ANNUAL REPORT 2022 124
FRASERS CENTREPOINT TRUST
GRI
STANDARD/
OTHER
SOURCE
DISCLOSURE
SECTION AND PAGE
REFERENCE/NOTES
REQUIREMENT(S)
OMITTED
REASON AND
EXPLANATION
OMISSION
Training and education
GRI 3:
Material
Topics 2021
GRI 404:
Training and
Education
2016
3-3 Management of material
topics
Skills and Leadership, page 111.
404-1 Average hours of training
per year per employee
Skills and Leadership – How we
create value and our progress in
FY2022, page 111.
404-2 Programs for upgrading
employee skills and transition
assistance programs
Diversity, Equity and Inclusion
– How we create value and our
progress in FY2022, page 110.
404-3 Percentage of employees
receiving regular performance
and career development reviews
Diversity, Equity and Inclusion
– How we create value and our
progress in FY2022, page 110.
Local communities
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
Community Connectedness,
page 113.
GRI 413:
Local
Communities
2016
413-1 Operations with local
community engagement, impact
assessments, and development
programs
Community Connectedness –
How we create value and our
progress in FY2022, page 113.
413-2 Operations with
significant actual and potential
negative impacts on local
communities
Community Connectedness –
How we create value and our
progress in FY2022, page 113.
Marketing and labelling
GRI 3:
Material
Topics 2021
GRI 417:
Marketing
and Labelling
2016
3-3 Management of material
topics
Risk-Based Management,
page 95.
417-1 Requirements for product
and service information and
labeling
417-2 Incidents of non-
compliance concerning product
and service information and
labeling
417-3 Incidents of non-
compliance concerning
marketing communications
Risk-Based Management –
Upholding strict compliance
practices, page 95.
a, b
a, b
Not applicable due
to the nature of our
business.
Not applicable due
to the nature of our
business.
Notes
Energy, GHG emissions and Water Reporting Scope
• Energy, GHG and water intensities exclude both newly completed properties in FY2022 and properties divested at any point during the reporting
period.
• The GHG emission factors are from Energy Market Authority – Singapore Energy Statistics 2020.
Monetary Disclosure
All monetary related disclosures within the report are in Singapore Dollars (S$) unless stated otherwise.
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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.
(the “Manager”), a wholly-owned subsidiary of Frasers Property Limited (“FPL” or the “Sponsor” and together with
its subsidiaries, “FPL Group”).
In line with the listing manual of the SGX-ST (the “SGX-ST Listing Manual”) and its obligations under the Guidelines
to All Holders of a Capital Markets Services Licence for Real Estate Investment Trust Management (Guideline No:
SFA04–G07) issued by the Monetary Authority of Singapore (“MAS”), the Manager complies with the principles of the
Code of Corporate Governance 2018 (the “CG Code”).
The practices and activities of the board of directors of the Manager (the “Board”) and the management of the
Manager (the “Management”) adhere closely to the provisions under the CG Code.
To the extent the practices may vary from any provision of the CG Code, the Manager will state explicitly the provision
from which it has varied, explain the reason for the variation and explain how the practices nevertheless are consistent
with the intent of the relevant principle of the CG Code. The Manager is also guided by the Practice Guidance
which accompanies the CG Code and which sets out best practices for listed issuers; as this will build investor and
stakeholder confidence in FCT and the Manager. A summary of compliance with the express disclosure requirements
under the provisions of the CG Code is set out on pages 158 to 160 of this Annual Report.
The Manager
The Manager has general powers of management over the assets of FCT. As a manager of a REIT, the Manager holds
a Capital Markets Services Licence issued by the MAS to carry out REIT management activities.
The Manager’s main responsibility is to manage FCT’s assets and liabilities for the benefit of unitholders of FCT (the
“Unitholders”). To this end, the Manager is able to set the strategic direction of FCT and make recommendations to
HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of FCT (the “Trustee”), on acquisitions,
divestments and enhancement of the assets of FCT. It also supervises the property manager, Frasers Property Retail
Management Pte. Ltd. in its day-to-day management of the properties within FCT’s portfolio, namely, Causeway Point,
Northpoint City North Wing and Yishun 10 Retail Podium, Changi City Point, Waterway Point (40.00% interest), Tiong Bahru
Plaza, White Sands, Hougang Mall, Century Square, Tampines 1 and Central Plaza pursuant to property management
agreements entered into for each property. The role of the Manager includes the pursuit of a business model that
sustains the growth and enhances the value of FCT and is focused on delivering regular and stable distributions to
Unitholders. Other functions and responsibilities of the Manager include preparing annual asset plans and undertaking
regular individual asset performance analysis and market research analysis and managing finance functions relating to
FCT (which includes financial and tax reporting, capital management, treasury and preparation of consolidated budgets).
The Values of the Manager
1.
2.
3.
The Manager is committed to upholding and maintaining high standards of corporate governance, corporate
transparency and sustainability, and instituting sound corporate practices and controls to facilitate the
Manager’s role in safeguarding and enhancing FCT’s asset value so as to maximise returns from investments,
and ultimately the total return to Unitholders. The Manager believes that a robust and sound governance
framework is an essential foundation on which to build, evolve and innovate a business which is sustainable over
the long-term and one which is resilient in the face of the demands of a dynamic, fast-changing environment.
The Manager adheres to corporate policies, business practices and systems of risk management and internal
controls, which are designed to ensure that it maintains consistently high standards of integrity, accountability
and governance in FCT and its own daily operations.
The Manager ensures that the business and practices of FCT are carried out in a manner that complies with
applicable laws, rules and regulations, including the Securities and Futures Act 2001 of Singapore (“SFA”), the
SGX-ST Listing Manual, the CG Code, the Code on Collective Investment Schemes (the “CIS Code”) issued by
the MAS (including Appendix 6 of the CIS Code, the “Property Funds Appendix”), the trust deed constituting
FCT between the Manager and the Trustee dated 5 June 2006 (as amended, restated and supplemented)
(“Trust Deed”), as well as the written directions, notices, codes and other guidelines that the MAS and other
regulators may issue from time to time.
ANNUAL REPORT 2022CORPORATE GOVERNANCE REPORT 126
The Board works with Management to ensure that these values underpin its leadership of the Manager.
The Manager is staffed by an experienced and well-qualified team who manage the operational matters of FCT. The
Manager is a wholly-owned subsidiary of FPL, a multi-national developer-owner-operator of real estate products and
services across five asset classes, namely, residential, retail, commercial & business parks, industrial & logistics as well
as hospitality. The FPL Group has businesses in Southeast Asia, Australia, Europe and China, and its well-established
hospitality business owns and/or operates serviced apartments and hotels in over 70 cities and 20 countries across
Asia, Australia, Europe, the Middle East and Africa.
As the Sponsor holds a substantial ownership stake of approximately 41.16%1 in FCT, there is an alignment of
interests between the Sponsor, the Manager and the Unitholders. The Manager is able to benefit from and leverage
on its association with the Sponsor in the management of FCT in various ways, including tapping on the Sponsor’s
extensive experience in development and management of real estate assets, sourcing for talent and experienced
personnel within the Sponsor pool of employees, including those who may be considered for appointment to the
Board, access to the FPL Group’s network of lenders for debt financing, and negotiating for favourable terms with
external suppliers and vendors on a group basis.
The Manager is appointed in accordance with the terms of the Trust Deed. The Manager can be removed by notice in
writing given by the Trustee in favour of a corporation appointed by the Trustee under certain circumstances outlined
in the Trust Deed, including where Unitholders, by a resolution duly passed by a simple majority of Unitholders
present and voting (with no Unitholder being disenfranchised) at a Unitholders’ meeting, decide that the Manager is
to be removed.
BOARD MATTERS
The Board
The Board is responsible for the overall leadership and oversight of both FCT’s and the Manager’s business, financial,
investment and material operational affairs and performance objectives, and its long-term success. The Board sets
the strategic direction of FCT and the Manager, which includes appropriate focus on value creation, innovation
and sustainability. The Board also determines the Manager’s approach to corporate governance, including setting
appropriate tone-from-the-top and the desired organisational culture, values and ethical standards of conduct, and
works with Management on its implementation across all levels of the organisation’s values, standards, policies
and practices. The Board, supported by Management, ensures necessary resources are in place for FCT and the
Manager to meet its strategic objectives. Through the enterprise-wide risk management framework of FCT and its
subsidiaries (the “Group”), the Board establishes and maintains a sound risk management framework to effectively
monitor and manage risks and to achieve an appropriate balance between risks and the Group’s performance. The
Board also puts in place policies, structures and mechanisms to ensure compliance with legislative and regulatory
requirements. The Board, which comprises directors who, as fiduciaries, are expected to act objectively in the
best interests of the Manager and the Group, constructively challenges Management and reviews its performance,
and holds Management accountable for performance. It also oversees Management to ensure transparency and
accountability to key stakeholder groups.
During the financial year ended 30 September 2022 (“FY22”), notwithstanding the progressive relaxation of the
safe management measures throughout the course of FY22, the Board has continued to monitor the status of the
COVID-19 pandemic and reviewed its impact on FCT’s business and operations, with updates from Management.
1 As at 30 September 2022.
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The Chairman
The chairman of the Board (the “Chairman”) leads the Board. The Chairman provides leadership and direction in the
review of the Manager’s corporate strategy and objectives, sets the right ethical and behavioural tone and ensures the
Board’s effectiveness by, among other things, promoting and maintaining high standards of corporate governance
and transparency, encouraging active and effective engagement, participation by all directors of the Manager (the
“Directors”) and facilitating constructive and appropriate relations among and between them and Management. The
Chairman sets the agenda for each Board meeting to take full account of the issues and concerns of the Directors
and the Management team, promotes a culture of openness and debate at Board meetings and encourages Directors
to engage in productive and thorough discussions and constructive debate on strategic, business and other key
issues pertinent to the business and operations of the Group and the Manager, leading to better decision-making
and enhanced business performance. The Chairman, supported by Management, ensures effective communication
with Unitholders, financial analysts and the media on critical issues that could significantly affect the reputation and
standing of the Manager and FCT.
The Chairman also presides over the Annual General Meeting each year and any other general meetings of the
Unitholders. The Chairman addresses, and/or requests the Chief Executive Officer (the “CEO”) of the Manager to
address the Unitholders’ queries and ensures that there is clear and open dialogue between all stakeholders.
Role of the CEO and Management
The Management is led by the CEO. The CEO is responsible for the execution of the strategies and policies as approved
by the Board, and leading, promoting and conducting the affairs of FCT and the Manager with the highest standards
of integrity, corporate governance and transparency. The CEO is responsible and is accountable to the Board for
the conduct and performance of Management. The CEO and Management team of the Manager are responsible for
executing the Manager’s strategies and policies as approved by the Board and are responsible for the planning, direction,
control, conduct and performance of the business operations of the Manager. With the support of the Management,
the CEO seeks business opportunities, drives new initiatives and is responsible for the operational performance of
the Group and building and maintaining strong relationships with stakeholders of the Group.
Division of Responsibilities between the Chairman and CEO
The Chairman and the CEO are separate persons and the division of responsibilities between the Chairman and the CEO
is clearly demarcated. This avoids concentration of power and ensures a degree of checks and balances, an increased
accountability, and greater capacity of the Board for independent decision-making. Such separation of roles between
the Chairman and CEO promotes robust deliberations by the Board and Management on the business activities of FCT.
Relationships between the CEO and Board
None of the members of the Board and the CEO are related to one another, and none of them has any business
relationships among them.
Board Committees
The Board has formed committees of the Board (the “Board Committees”) to oversee specific areas, for greater efficiency
and has delegated authority and duties to such Board Committees based on written and clearly defined terms of reference.
The terms of reference of the Board Committees set out their compositions, authorities and duties, including reporting
back to the Board. There are two Board Committees, namely, the Audit, Risk and Compliance Committee (“ARCC”), and
the Nominating and Remuneration Committee (“NRC”).
Minutes of all Board Committee meetings are circulated to the Board so that Directors are aware of and kept updated
as to the proceedings, matters discussed and decisions made during such meetings, and to enable the Directors to
weigh in on any key points under consideration.
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Membership
Key Objectives
Audit, Risk and Compliance Committee
Ms Koh Choon Fah, Chairman
Dr Cheong Choong Kong, Member
Mr Ho Chai Seng, Member
Mr Ho Chee Hwee Simon, Member
•
Assist the Board in fulfilling responsibility for overseeing
the quality and integrity of the accounting, auditing and
financial practices, internal controls, risk management
and sustainability practices of the Manager
As at 30 September 2022, the ARCC comprises non-executive Directors, the majority of whom, including the chairman of
the ARCC, are independent Directors. All members of the ARCC, including the chairman of the ARCC, are appropriately
qualified and have recent and/or relevant accounting and related financial management expertise or experience. Their
collective wealth of experience and expertise enables them to discharge their responsibilities competently.
Under the Terms of Reference of the ARCC, a former partner or director of FCT’s existing auditing firm or auditing
corporation shall not act as a member of the ARCC: (a) within a period of two years commencing on the date of his
ceasing to be a partner of the auditing firm or a director of the auditing corporation; and in any case, (b) for so long
as he has any financial interest in the auditing firm or auditing corporation. None of the members of the ARCC is a
former partner of FCT’s external auditors, KPMG LLP and none of the members of the ARCC has any financial interest
in FCT’s external auditors, KPMG LLP.
AUDIT FUNCTIONS
The Terms of Reference of the ARCC provide that some of the key responsibilities of the ARCC include:
•
•
•
•
•
External Audit Process: reviewing and reporting to the Board the scope, quality, results and performance of the
external audit(s), its cost effectiveness and the independence and objectivity of the external auditors. It shall
also review the nature and extent of non-audit services performed by external auditors;
Internal Audit: establishing an effective internal audit function which shall be adequately qualified to perform
an effective role, adequately resourced, independent of the activities which it audits and able to discharge its
duties objectively, and to approve the hiring, removal, evaluation and compensation of the head of the internal
audit function, or the accounting/auditing firm or corporation to which the internal audit function is outsourced2.
Financial Reporting: reviewing and reporting to the Board, the significant financial reporting issues and judgements
so as to ensure the integrity of the financial statements of FCT and the Manager and any announcements
relating to FCT’s and the Manager’s financial performance, and to review the assurance provided by the CEO
and the Chief Financial Officer (“CFO”) of the Manager (the “Key Management Personnel”) that the financial
records have been properly maintained and the financial statements give a true and fair view of FCT’s and/or
the Manager’s operations and finances;
Internal Controls and Risk Management: reviewing and reporting to the Board at least annually, its assessment of
the adequacy and effectiveness of the Manager’s internal controls for FCT and the Manager, including financial,
operational, compliance and information technology controls (including those relating to compliance with
existing legislation and regulations), and risk management policies and systems established by Management;
Interested Person Transactions: reviewing interested person transactions (as defined in the SGX-ST Listing
Manual) and interested party transactions (as defined in the Property Funds Appendix) (both such types of
transactions constituting “Related/Interested Person Transactions”) entered into from time to time and the
internal audit reports to ensure compliance with applicable legislation, the SGX-ST Listing Manual and the
Property Funds Appendix;
2 For FY22, the internal audit function is outsourced to the FPL Group.
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•
•
•
Conflicts of Interests: deliberating on resolutions relating to conflicts of interest situations involving FCT;
Whistle-Blowing: reviewing the policy and arrangements by which staff of the Manager, FCT and any other
persons may, in confidence, safely raise concerns about possible improprieties in matters of financial reporting
or other matters and ensure that arrangements are in place for such concerns to be raised and independently
investigated and for appropriate follow-up action to be taken; and
Investigations: reviewing the findings of internal investigations into any suspected fraud or irregularity, or
suspected infringement of any Singapore laws or regulations or rules of the SGX-ST or any other regulatory
authority in Singapore, which the ARCC becomes aware of, and which has or is likely to have a material impact
on FCT’s operating results or financial position.
Where the external auditors, in their review or audit of FCT’s and the Manager’s year-end financial statements, raise
any significant issues which have a material impact on the interim financial statements or business updates previously
announced by FCT or the Manager, the ARCC will bring this to the Board’s attention immediately so that the Board can
consider whether an immediate announcement is required under the SGX-ST Listing Manual. In such a situation, the
ARCC will also advise the Board if changes are needed to improve the quality of future interim financial statements
or business updates – such changes (if any) will be disclosed in FCT’s annual report.
In carrying out its role, the ARCC is empowered to investigate any matter within its Terms of Reference, with full access to,
and cooperation by, Management, to seek information it may require from any Director and/or employee of the Manager.
The ARCC also has full discretion to invite any Director or executive officer to attend its meetings, and reasonable
resources to enable it to discharge its functions properly. The Chairman, non-executive Directors, the CEO, the CFO, the
head of the internal audit function, representatives of the external auditor(s), or other person with relevant experience and
expertise may attend the meetings of the ARCC at the invitation of the ARCC. The meetings serve as a forum to review
and discuss material risks and exposures of the Manager’s businesses and strategies to mitigate risks. The ARCC meets
with internal auditors and external auditors without the presence of Management at least once a year to review various
audit matters and the assistance given by Management to the internal and external auditors. In carrying out its function,
the ARCC may also obtain independent or external legal or other professional advice or appoint external consultants
as it considers necessary at the Manager’s cost.
Regular updates on changes in accounting standards and treatment are prepared by external auditors and circulated
to members of the ARCC so that they are kept abreast of such changes and its corresponding impact on the financial
statements, if any.
Risk Management
The ARCC shall review the framework and processes established by Management to achieve compliance with
applicable laws, regulations, standards, best practice guidelines and the Manager’s policies and procedures. The
ARCC shall assist the Board in ensuring that Management maintains a sound system of risk management and internal
controls to safeguard the interests of the Manager or the interests of Unitholders (as the case may be) and the assets
of the Manager and the assets of FCT. The ARCC also assists the Board in its determination of the nature and extent of
significant risks which the Board is willing to take in achieving the Manager’s strategic objectives and the overall levels
of risk tolerance and risk policies, including reviewing technology risks faced by the Manager. Further information on
the key activities conducted by the ARCC can be found in the sections titled “Financial Performance, Reporting and
Audit” on pages 148 to 149 and “Governance of Risk and Internal Controls” on pages 149 to 152.
Sustainability
The ARCC also assists the Board in carrying out its responsibility in determining environmental, social and governance
(“ESG”) factors identified as material to the business, monitoring and managing ESG factors and overseeing standards,
management processes and strategies to achieve sustainability practices. The ARCC has oversight of sustainability
practices, and assists the Board in ensuring that Management establishes and maintains a sound system of sustainability
governance and an appropriate sustainability reporting framework which links sustainability risks and opportunities
with strategy, other organisational risks and goals and which also enhances operational responses to sustainability
risks and opportunities.
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Membership
Key Objectives
Nominating and Remuneration Committee
Mr Ho Chai Seng, Chairman
Dr Cheong Choong Kong, Member
Mr Ho Chee Hwee Simon, Member
Ms Koh Choon Fah, Member
Mr Christopher Tang Kok Kai, Member(1)
•
•
•
•
•
Establish a formal and transparent process for
appointment and reappointment of Directors
Develop a process for evaluation of the performance
and annual assessment of the effectiveness of the
Board as a whole and each of its board committees,
and individual directors
Review succession plans
Assist the Board in establishing a formal and
transparent process for developing policies on
Director and executive remuneration, and for fixing
the remuneration packages of individual Directors
and Key Management Personnel
Review and recommend to the Board a general
framework of remuneration for the Board and Key
Management Personnel and specific remuneration
packages for each Director and Key Management
Personnel
Notes:
(1) Mr Christopher Tang Kok Kai retired as a Director and a member of the NRC on 1 January 2022.
As at 30 September 2022, all the members of the NRC are non-executive and the majority of whom, including the
chairman of the NRC, are independent.
The NRC is guided by written Terms of Reference approved by the Board which set out the duties and responsibilities
of the NRC. The NRC’s responsibilities, in relation to its functions as a nominating committee, include reviewing the
structure, size and composition and independence of the Board and its Board Committees, reviewing and making
recommendations to the Board on the succession plans for Directors, the Chairman and Key Management Personnel,
making recommendations to the Board on all appointments and re-appointments of Directors (including alternate
Directors, if any), and determining the independence of Directors. The NRC also proposes for the Board’s approval, the
objective performance criteria and process for the evaluation of the effectiveness of the Board, the Board Committees
and each Director, and ensures that proper disclosures of such process are made. The NRC is also responsible for
reviewing and making recommendations to the Board on training and professional development programmes for the
Board and the Directors.
Further information on the main activities of the NRC, in relation to its functions as a nominating committee, are
outlined in the following sections:
•
•
•
•
“Training and development of Directors” on page 133 to 134
“Board Composition” on pages 134 to 135
“Directors’ Independence” on pages 137 to 140
“Board Performance Evaluation” on page 141
The NRC’s responsibilities, in reviewing remuneration matters, include: (i) reviewing and recommending to the Board,
a framework of remuneration for the Board and Key Management Personnel, and (ii) ensuring that the remuneration
of executive Directors shall not be linked in any way to FCT’s gross revenue.
On an annual basis, the NRC also reviews and recommends, for the Board’s approval, the Manager’s remuneration and
benefits policies and practices (including long-term incentive schemes), and the performance and specific remuneration
packages for each Director and Key Management Personnel, in accordance with the approved remuneration policies
and processes.
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The NRC also proposes, for the Board’s approval, criteria to assist in the evaluation of the performance of Key Management
Personnel, and (where applicable) reviews the obligations of the Manager arising in the event of the termination of the
service agreements of Key Management Personnel to ensure that such contracts of service contain fair and reasonable
termination clauses. The NRC also administers and approves awards under the Restricted Unit Plan (“RUP”) and/or other
long-term incentive schemes to senior executives of the Manager.
In carrying out its review on remuneration matters, the Terms of Reference of the NRC provide that the NRC shall consider
all aspects of remuneration, including Directors’ fees, special remuneration to Directors who render special or extra
services to the Manager, salaries, allowances, bonuses, options, Unit-based incentives and awards, benefits-in-kind and
termination payments, and shall aim to be fair and to avoid rewarding poor performance.
If necessary, the NRC can seek expert advice on remuneration within the Manager’s Human Resource Department or
from external sources. Where such advice is obtained from external sources, the NRC ensures that existing relationships,
if any, between the Manager and the appointed remuneration consultants will not affect the independence and
objectivity of the remuneration consultants.
Delegation of authority framework
As part of the Manager’s internal controls, the Board has adopted a framework of delegated authorisations in its
Manual of Authorities (the “MOA”). The MOA, which is approved by the Board, sets out the levels of authorisation
required for particular types of transactions to be carried out, and specifies whether Board approval needs to be
sought. It also sets out approval limits for operating and capital expenditure as well as investments, divestments and
asset enhancement initiatives.
While day-to-day operations of the business are delegated to Management, in order to facilitate the Board’s exercise
of its leadership and oversight of FCT, the MOA sets out certain matters specifically reserved for approval by the
Board and these are clearly communicated to Management in writing. These include approval of annual budgets,
financial plans, material transactions, namely, major acquisitions and divestments, funding and investment proposals
and asset enhancement initiatives.
Meetings of the Board and Board Committees
The Board meets regularly, at least once every quarter, and also as required by business needs or if their members
deem it necessary or appropriate to do so.
The following table summarises the number of meetings of the Board and Board Committees and general meetings
held and attended by the Directors in FY22:
Board
Meetings
Audit, Risk and
Compliance
Committee
Meetings
Nominating
and
Remuneration
Committee
Meetings
Annual
General
Meeting
10(C)(1)
10
10
10
10
2
7
4
4
4
4(C)(1)
N.A.
N.A.
N.A.
3
3(C)(1)
3
3
N.A.
2
N.A.
1(C)(1)
1
1
1
1
N.A.
N.A.
Meetings held for FY22
Dr Cheong Choong Kong
Mr Ho Chai Seng
Mr Ho Chee Hwee Simon
Ms Koh Choon Fah
Mr Low Chee Wah
Mr Christopher Tang Kok Kai(2)
Ms Soon Su Lin(3)
Notes:
(1) (C) refers to Chairman.
(2) Mr Christopher Tang Kok Kai retired as a Director and a member of the NRC on 1 January 2022.
(3) Ms Soon Su Lin was appointed as a non-executive and non-independent Director on 1 March 2022.
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A calendar of activities is scheduled for the Board a year in advance.
The Manager’s Constitution provides for Board members who are unable to attend physical meetings to participate
through telephone conference, video conference or similar communications equipment.
Management provides the Directors with Board papers setting out complete, adequate and relevant information
on the agenda items to be discussed at Board and Board Committee meetings around a week in advance of the
meeting (save in cases of urgency). This is to give Directors sufficient time to prepare for the meeting and review and
consider the matters being tabled so that discussions can be more meaningful and productive and Directors have
the necessary information to make sound and informed decisions.
Senior members of the Management attend Board meetings, and where necessary, Board Committee meetings, to
brief and make presentations to the Directors, provide input and insight into matters being discussed, and respond
to queries and take any follow-up instructions from the Directors. If required, time is set aside after scheduled Board
meetings for discussions amongst the Board without the presence of Management.
Where required by the Directors, external advisers may also be present or available whether at Board and Board
Committee meetings or otherwise, and (if necessary), at the Manager’s expense where applicable, to brief the Directors
and provide their advice.
Matters discussed by Board and Board Committees in FY22
BOARD
Strategy
•
• Business and Operations Update
Sustainability, Environmental,
•
Social & Governance
Financial Performance
•
• Governance
Feedback from Board Committees
•
• Acquisitions and Divestments
Proposals
Technology Risk Management
•
Audit, Risk and Compliance Committee
Nominating and Remuneration Committee
External and Internal Audit
•
Financial Reporting
•
Treasury, Debt and Capital Management
•
•
Internal Controls and Risk Management
• Related/Interested Person Transactions
• Conflicts of Interests
•
•
• Compliance with Legislation and Regulations
Technology Risk Management
Sustainability, Environmental, Social & Governance
Board Oversight
• Board Composition and Renewal
• Board, Board Committees and Director Evaluations
•
• Remuneration Policies and Framework
•
Training and Development
Succession Planning
Outside of Board and Board Committee meetings, Management provides Directors with complete and adequate
reports on major operational matters, business development activities, financial performance, potential investment
opportunities and budgets periodically, as well as such other relevant information on an ongoing and timely basis
to enable them to discharge their duties and responsibilities properly. In respect of budgets, any material variance
between the projections and actual results will be disclosed and explained in the relevant periodic report.
Directors have separate and independent access to Management, and are entitled to request for such additional
information as needed to make informed decisions and to fulfil their duties and responsibilities properly, which
additional information will then be provided by Management in a timely manner. Where required or requested by
Directors, site visits are also arranged for Directors to have an intimate understanding of the key business operations
of each division and to promote active engagement with Management.
Directors are provided with complete, adequate and timely information to enable them to ensure that they prepare
adequately for Board and Board Committee meetings and make informed decisions, and Directors (including those
who hold multiple board representations and other principal commitments) devote sufficient time and attention to the
affairs of FCT and the Manager. At Board and Board Committee meetings, the Directors attend and actively participate,
discuss, deliberate and appraise matters requiring their attention and decision. Where necessary for the proper
discharge of their duties, the Directors may seek and obtain independent professional advice at the Manager’s expense.
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The Manager continued to monitor the developments on the COVID-19 situation closely until the Singapore government’s
announcement of the step down of the “Disease Outbreak Response System Condition” (“DORSCON”) status from
‘Orange’ to ‘Yellow’ on 22 April 2022.
In addition to the scheduled Board meetings, Management also provides regular updates on the financial performance,
investment and asset management and investor relations matters of FCT to the Chairman and ARCC Chairman during
monthly meetings.
The Company Secretary
The Board is supported by the Company Secretary of the Manager (“Company Secretary”), who is legally trained
and familiar with company secretarial practices, and responsible for administering and executing Board and Board
Committee procedures in compliance with the Companies Act 1967 of Singapore, the Manager’s Constitution, the Trust
Deed and applicable law. The Company Secretary also provides advice and guidance on relevant guidelines, notices,
rules and regulations, including disclosure requirements under the SFA, applicable MAS guidelines and notices, the
CIS Code and the SGX-ST Listing Manual, as well as corporate governance practices and processes.
The Company Secretary attends all Board and Board Committee meetings and drafts and reviews the minutes of
proceedings thereof, and facilitates and acts as a channel of communication for the smooth flow of information to and
within the Board and its various Board Committees, as well as between and with senior Management. The Directors
have separate and independent access to the Company Secretary, whose responsibilities include supporting and
advising the Board on corporate and administrative matters.
The Company Secretary solicits and consolidates Directors’ feedback and evaluation, facilitates induction and orientation
programmes for new Directors, and assists with Directors’ professional development matters. The Company Secretary
also acts as the Manager’s primary channel of communication with the SGX-ST.
The appointment and removal of the Company Secretary is subject to the approval of the Board.
Training and development of Directors
The NRC is tasked with identifying and developing training programmes for the Board and Board Committees for the
Board’s approval and ensuring that Directors have the opportunity to develop their skills and knowledge.
Upon appointment, each new Director is issued a formal letter of appointment setting out his or her roles, duties,
responsibilities and obligations, including his or her responsibilities as fiduciaries and on the policies relating to
conflicts of interest, as well as the expectations of the Manager. An induction and orientation programme is also
conducted to provide new appointees with information on the business activities, strategic direction, policies and
corporate governance practices of the Manager, as well as their statutory and other duties and responsibilities as
Directors. A new Director who has no prior experience as a director of an issuer listed on the SGX-ST must also
undergo mandatory training in his or her roles and responsibilities as prescribed by the SGX-ST, unless the NRC is
of the view that training is not required because he or she has other relevant experience, in which case the basis of
its assessment will be disclosed.
The Directors are kept continually and regularly updated on FCT’s business and the regulatory and industry specific
environments in which the entities of the Group operate. 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 and such updates may be in writing, by way of briefings held
by the Manager’s lawyers and external auditors or disseminated by way of presentations and/or handouts. During
FY22, the Directors attended briefings and training programmes on, among others, (i) updates to the SGX-ST Listing
Manual and Code of Corporate Governance; (ii) SGX and MAS regulatory updates; (iii) updates on MAS Guidelines on
Environmental Risk Management and Technology Risk Management Compliance; (iv) sustainability and ESG matters;
(v) risk trends, role of board, trends in directors & officers liability and risk mitigation; and (vi) Task Force on Climate-
Related Financial Disclosures.
To ensure the Directors have the opportunities to develop their skills and knowledge and to continually improve
the performance of the Board, all Directors are encouraged to undergo continual professional development during
the term of their appointment, and provided with opportunities to develop and maintain their skills and knowledge
at the Manager’s expense. The Manager maintains a training record to track Directors’ attendance at training and
professional development courses.
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Directors are encouraged to be members of the Singapore Institute of Directors (“SID”) and for them to receive
updates and training from SID to stay abreast of relevant developments in financial, legal and regulatory requirements,
and relevant business trends.
BOARD COMPOSITION
The following table shows the composition of the Board and the various Board Committees(1):
Audit, Risk and
Compliance
Committee
Nominating and
Remuneration
Committee
Dr Cheong Choong Kong
Mr Ho Chai Seng
Chairman, Non-Executive
(Independent) Director
Non-Executive
(Independent) Director
Mr Ho Chee Hwee Simon
Non-Executive
(Non-Independent) Director
●
●
●
Ms Koh Choon Fah
Mr Low Chee Wah
Ms Soon Su Lin(2)
Notes:
Non-Executive
(Independent) Director
●
(Chairman)
Non-Executive
(Non-Independent) Director
Non-Executive
(Non-Independent) Director
(1) Unless otherwise stated, the information provided herein is as of 30 September 2022.
(2) Ms Soon Su Lin was appointed as a non-executive and non-independent Director on 1 March 2022.
Profiles of each of the Directors can be found on pages 16 to 19.
●
●
(Chairman)
●
●
As can be seen from the table above, as at 30 September 2022, all of the Directors are non-executive and at least half
of the Board comprises independent Directors.
No alternate directors have been appointed on the Board for FY22. Alternate directors will only be appointed in
exceptional circumstances. As the Chairman, Dr Cheong Choong Kong, is a non-executive independent Director, no
lead independent director has been appointed.
The NRC reviews, on an annual basis, the structure, size and composition of the Board and Board Committees, taking
into account the CG Code and the Securities and Futures (Licensing and Conduct of Business) Regulations (“SFLCB
Regulations”). The NRC has assessed that the current structure, size and composition of the Board and Board Committees
are appropriate for the scope and nature of FCT’s and the Manager’s operations. No individual or group dominates
the Board’s decision-making process or has unfettered powers of decision-making. The NRC is of the opinion that the
Directors with their diverse backgrounds and experience (including banking, finance, accounting and other relevant
industry knowledge, entrepreneurial and management experience, and familiarity with regulatory requirements and risk
management) provide the appropriate balance and mix of skills, knowledge, experience and other aspects of diversity
such as gender and age that avoids groupthink and fosters constructive debate and ensures the effectiveness of the
Board and its Board Committees. The Board concurs with the views of the NRC.
Where Directors step down from the Board, cessation announcements providing detailed reason(s) for the cessation
are released on SGXNet in compliance with the requirements of the SGX-ST Listing Manual.
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Board Composition in terms of Age Group, Independence, Tenure and Gender
(as at 30 September 2022)
Age Group
Independence
Gender
51-65 years old
66-80 years old
83%
17%
Non-Executive and
Non-Independent Directors
Non-Executive and
Independent Directors
50%
50%
Male
Female
67%
33%
Tenure
average tenure: 3.93 years
Dr Cheong Choong Kong
Ho Chai Seng
Koh Choon Fah
Low Chee Wah
Simon Ho Chee Hwee
Soon Su Lin
Non-Executive and Independent Directora | Non-Executive and Non-Independent Directors
Selection, Appointment and Re-appointment of Directors
Under the NRC Terms of Reference, the NRC is tasked with making recommendations to the Board on all Board
appointments and re-appointments, taking into account, among other things, the scope and nature of the operations
of the Group, the requirements of the business, whether Directors who have multiple board representations are able
to carry out and have been carrying out their duties as Directors and whether the Directors have given sufficient time
and attention to the affairs of FCT and the Manager.
The process for the selection, appointment and re-appointment of Directors also takes into account the composition
and progressive renewal of the Board and Board Committees.
Additionally, as part of the NRC’s review of the composition, and performance evaluation, of the Board and Board
Committees (which are done at least annually), the NRC will consider the competencies, commitment, contribution and
performance (e.g. attendance, preparedness, participation and candour) of the Directors (including Directors who are
to be recommended for re-appointment). In the case of a potential new Director, the NRC will consider the candidate’s
experience, education, expertise, judgement, skillset, personal qualities and general and sector specific knowledge
in relation to the needs of the Board as well as whether the candidates will add diversity and technological expertise
to the Board and whether they are likely to have adequate time to discharge their duties, including attendance at all
Board meetings. The NRC will also take into consideration whether a candidate had previously served on the boards
of companies with adverse track records or a history of irregularities, and assess whether such past appointments
would affect his/her ability to act as a Director of the Manager.
ANNUAL REPORT 2022CORPORATE GOVERNANCE REPORT 136
The NRC considers a range of different channels to source and screen both internal and external candidates for Board
appointments, depending on the requirements, including tapping on existing networks and recommendations. External
consultants may be retained from time to time, where appropriate, to assist in sourcing, assessing and selecting a
broader range of potential internal and external candidates beyond the Board’s existing network of contacts. Suitable
candidates are carefully evaluated by the NRC so that recommendations made on proposed candidates are objective
and well supported.
On an annual basis, the NRC reviews (a) the directorships and principal commitments of each Director, and (b) a
framework for Board evaluation to be conducted by an external consultant on the effectiveness of the Board. Through
the aforementioned Board evaluation exercise, the Directors assess whether Board members effectively manage his
or her directorships and have the time and ability to contribute to the Board.
Instead of prescribing a maximum number of directorships and/or other principal commitments that each Director
may have, the NRC adopts a holistic assessment of each Director’s individual capacity and circumstances to carry
out his or her duties, taking into consideration not only the number of other board and other principal commitments
held by each Director, but also the nature and complexity of such commitments. The assessment also takes into
consideration Directors’ commitment, conduct and contributions (such as meaningful participation, candour and
rigorous decision making) at Board meetings, as well as whether the Director’s engagement with Management is
adequate and effective. In respect of FY22, the NRC is of the view that each Director, including Directors who hold
multiple board representations, has been able to effectively discharge his or her duties as a Director of the Manager.
Further details on the Board evaluation exercise are set out under the section “Board Performance Evaluation” on
page 141.
Directors are not subject to periodic retirement by rotation. Under its Terms of Reference, the NRC is tasked with
reviewing the succession plans for Directors, the Chairman and Key Management Personnel.
Board Diversity Policy
The Board has adopted, with the recommendation of the NRC, a board diversity policy, and has charged the NRC with
the task of setting qualitative and measurable quantitative objectives (where appropriate) for achieving board diversity,
and reviewing the Manager’s progress towards achieving the objectives under the policy. The NRC will monitor and
implement this policy, and will take the principles of the policy into consideration when determining the optimal
composition of the Board, the appointment and re-appointment of Directors and when recommending any proposed
changes to the Board. On the recommendation of the NRC, the Board may set certain measurable objectives and
specific diversity targets, with a view to achieving an optimal Board composition, and these objectives and specific
diversity targets may be reviewed by the NRC from time to time to ensure their appropriateness. In line with the
implementation of the board diversity policy, there has been an increase in the number of female directors on the
Board in FY22 as compared to the financial year ended 30 September 2021 and the Manager remains committed to
continually implement the board diversity policy and any further progress made towards the implementation of such
policy will be disclosed in future Corporate Governance Reports, as appropriate.
The Board views diversity at the Board level as an essential element for driving value in decision-making and proactively
seeks, as part of its board diversity policy, to maintain an appropriate balance of expertise, skills and attributes
among the Directors. This is reflected in the diversity of the composition of the Board, in terms of age, gender, and
the backgrounds and competencies of the Directors, whose experience range from banking, finance and accounting,
and include relevant industry knowledge, entrepreneurial and management experience, and familiarity with regulatory
requirements and risk management. This is beneficial to FCT, the Manager and Management as decisions by, and
discussions with, the Board would be enriched by the broad range of views and perspectives and the breadth of
experience of the Directors.
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Directors’ Independence
The Directors exercise their judgement independently and objectively in the interests of FCT and the Manager. The NRC
determines annually, and as and when circumstances require, if a Director is independent based on the rules, guidelines
and/or circumstances on director independence as set out in Rule 210(5)(d) of the SGX-ST Listing Manual, Provision
2.1 of the CG Code and the accompanying Practice Guidance, the MAS Guidelines No. SFA04-G07 “Guidelines to all
Holders of a Capital Markets Services Licence for Real Estate Investment Trust Management” dated 1 January 2016
and Regulations 13D to 13H of the SFLCB Regulations (collectively, the “Relevant Regulations”). The NRC provides
its views to the Board for the Board’s consideration. Directors are expected to disclose any relationships with the
Manager, its related corporations, its substantial shareholders, its officers or the substantial Unitholders of FCT, if any,
which may affect their independence, as and when they arise, to the Board.
Each of the Independent Directors complete a declaration of independence annually which is then reviewed by the
NRC. Based on the declarations of independence of these Directors, and having regard to the rules, guidelines and
circumstances set forth in the Relevant Regulations, the NRC and the Board have determined that for FY22, there are
three independent Directors on the Board, namely Dr Cheong Choong Kong, Mr Ho Chai Seng and Ms Koh Choon Fah.
Dr Cheong Choong Kong
As at 30 September 2022, Dr Cheong Choong Kong does not hold other directorships. He has confirmed, inter alia,
that he:
(a)
(b)
(c)
is not connected1 to any substantial shareholder2 of the Manager or substantial Unitholder2 of FCT and does
not have any relationship with the Manager, its related corporations, its substantial shareholders, its officers
or the substantial Unitholders of FCT which could interfere with the exercise of his independent judgement
as a Director;
(i) is not employed by the Manager, any of its related corporations or the Trustee for FY22 or any of the past
three financial years, and (ii) does not have any immediate family member3 who has been employed by the
Manager or any of its related corporations, FCT or any of its related corporations or the Trustee, as an executive
officer in any of the past three financial years; and
in FY22 or the immediate past financial year, (i) has not, and does not have any immediate family member who,
received significant payments4 or material services from the Manager or any of its subsidiaries, FCT or any of
its subsidiaries and/or the Trustee and (ii) was not, and does not have any immediate family member who was
(A) a substantial shareholder or substantial Unitholder of, or (B) a partner in (with 5% or more stake), or (C)
an executive officer of, or (D) a director of, any organisation to which the Manager or any of its subsidiaries,
FCT or any of its subsidiaries or the Trustee received significant payments5 or material services (other than
Directors’ fees).
Having considered the declaration of independence and the Relevant Regulations, the NRC has determined that,
Dr Cheong Choong Kong is an independent director as at 30 September 2022.
Mr Ho Chai Seng
As at 30 September 2022, Mr Ho Chai Seng does not hold other directorships. He has confirmed, inter alia, that he:
(a)
(b)
is not connected1 to any substantial shareholder2 of the Manager or substantial Unitholder2 of FCT and does
not have any relationship with the Manager, its related corporations, its substantial shareholders, its officers
or the substantial Unitholders of FCT which could interfere with the exercise of his independent judgement
as a Director;
(i) is not employed by the Manager, any of its related corporations or the Trustee for FY22 or any of the past
three financial years, and (ii) does not have any immediate family member3 who has been employed by the
Manager or any of its related corporations, FCT or any of its related corporations or the Trustee, as an executive
officer in any of the past three financial years; and
ANNUAL REPORT 2022CORPORATE GOVERNANCE REPORT 138
(c)
in FY22 or the immediate past financial year, (i) has not, and does not have any immediate family member who,
received significant payments4 or material services from the Manager or any of its subsidiaries, FCT or any of its
subsidiaries and/or the Trustee and (ii) was not, and does not have any immediate family member who was (A) a
substantial shareholder or substantial Unitholder of, or (B) a partner in (with 5% or more stake), or (C) an executive
officer of, or (D) a director of, any organisation to which the Manager or any of its subsidiaries, FCT or any of its
subsidiaries or the Trustee received significant payments5 or material services (other than Directors’ fees).
Having considered the declaration of independence and the Relevant Regulations, the NRC has determined that
Mr Ho Chai Seng is an independent director as at 30 September 2022.
Ms Koh Choon Fah
As at 30 September 2022, Ms Koh Choon Fah is a director of the following companies:
•
•
•
•
Edmund Tie Holdings Pte. Ltd.;
New Horizon Holdings Pte. Ltd.;
CPG Corporation Pte Ltd; and
GLP REIT Management Pte. Ltd.
She has confirmed, inter alia, that she:
(a)
(b)
(c)
is not connected1 to any substantial shareholder2 of the Manager or substantial Unitholder2 of FCT and, save
as set out in note (2) on page 140, does not have any relationship with the Manager, its related corporations,
its substantial shareholders, its officers or the substantial Unitholders of FCT which could interfere with the
exercise of her independent judgement as a Director;
(i) is not employed by the Manager, any of its related corporations or the Trustee for FY22 or any of the past
three financial years, and (ii) does not have any immediate family member3 who has been employed by the
Manager or any of its related corporations, FCT or any of its related corporations or the Trustee, as an executive
officer in any of the past three financial years; and
in FY22 or the immediate past financial year, (i) has not, and does not have any immediate family member who,
received significant payments4 or material services from the Manager or any of its subsidiaries, FCT or any
of its subsidiaries and/or the Trustee and (ii) was not, and does not have any immediate family member who
was a substantial shareholder or substantial Unitholder of, or (B) a partner in (with 5% or more stake), or (C) an
executive officer of, or (D) a director of, any entity to which the Manager or any of its subsidiaries, FCT or any of
its subsidiaries or the Trustee received significant payments5 or material services (other than Directors’ fees).
Having considered the declaration of independence and the Relevant Regulations, the NRC had determined that,
notwithstanding the circumstances set out in note (2) on page 140, Ms Koh Choon Fah is an independent director as
at 30 September 2022.
Notes:
(1) A Director is “connected” to a substantial shareholder of the Manager or substantial Unitholder if:
(a) in the case where the substantial shareholder or substantial Unitholder is an individual, he/she is:
(i) a member of the immediate family of the substantial shareholder or substantial Unitholder;
(ii) employed by the substantial shareholder or substantial Unitholder;
(iii) a partner of a firm or a limited liability partnership of which the substantial shareholder or substantial Unitholder is also a partner; or
(iv) accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the
substantial shareholder or substantial Unitholder; or
(b) in the case where the substantial shareholder or substantial Unitholder is a corporation, he/she is:
(i) employed by the substantial shareholder or substantial Unitholder;
(ii) employed by a related corporation or associated corporation of the substantial shareholder or substantial Unitholder;
(iii) a director of the substantial shareholder or substantial Unitholder;
(iv) a director of a related corporation or associated corporation of the substantial shareholder or substantial Unitholder;
(v) a partner of a firm or a limited liability partnership of which the substantial shareholder or substantial Unitholder is also a partner; or
(vi) accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the
substantial shareholder or substantial Unitholder.
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(2) “substantial shareholder” and “substantial Unitholder” refers to a shareholder or Unitholder holding not less than 5% of the total votes or units
attached to all voting shares or units in the Manager or FCT, respectively.
(3) “immediate family” in relation to an individual, means the individual’s spouse, son, adopted son, step-son, daughter, adopted daughter, step-daughter,
father, step-father, mother, step-mother, brother, step-brother, sister or step-sister.
(4) As a guide, payments aggregated over any financial year in excess of S$50,000 would generally be deemed as significant. The amount and nature
of the service, and whether it is provided on a one-off or recurring basis, are relevant in determining whether the service provided is material.
(5) As a guide, payments aggregated over any financial year in excess of S$200,000 would generally be deemed as significant irrespective of whether
they constitute a significant portion of the revenue of the organisation in question. The amount and nature of the service, and whether it is provided
on a one-off or recurring basis, are relevant in determining whether the service provided is material.
The Board has considered the relevant requirements under the SFLCB Regulations and its views in respect of the
independence of each Director for FY22 are as follows:
The Director:
Dr Cheong
Choong Kong
Mr Ho Chee
Hwee Simon(1)
Mr Ho
Chai Seng
Ms Koh
Choon Fah(2)
Mr Low
Chee Wah(3)
Ms Soon
Su Lin(4)
had been independent
from the management
of the Manager and FCT
during FY22
had been independent
from any business
relationship with the
Manager and FCT during
FY22
had been independent
from every substantial
shareholder of
the
Manager and every
substantial Unitholder
during FY22
had not been a
substantial shareholder
of the Manager or a
substantial Unitholder
during FY22
has not served as a
director of the Manager
for a continuous period
of 9 years or longer as
at the last day of FY22
(i)
(ii)
(iii)
(iv)
(v)
Notes:
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
(1) Mr Ho Chee Hwee Simon was appointed as (a) the vice-chairman of the board of Frasers Hospitality International Pte. Ltd., a subsidiary of FPL; and
(b) an advisor to FPL (collectively referred to as the “Prior Appointments”) on 16 July 2018, and receives director’s fees amounting to S$75,000
per year and advisor’s fees amounting to S$175,000 per year respectively. During FY22, Mr Ho Chee Hwee Simon received an additional payment
of S$100,000 in connection with his appointment as advisor to FPL.
Mr Ho Chee Hwee Simon was appointed as a director of Frasers Property (Singapore) Pte. Ltd. (“FPS”), a subsidiary of FPL, on 1 November 2019
(the “FPS Appointment”) and in conjunction with the FPS Appointment, Mr Ho Chee Hwee Simon was also appointed as the chairman of the
Retail Management Committee of FPL. In connection with the FPS Appointment, Mr Ho Chee Hwee Simon receives director’s fees of S$75,000
per year.
The total fees that Mr Ho Chee Hwee Simon will be receiving in connection with the Prior Appointments and the FPS Appointment for FY22
amounts to S$425,000.
FPL wholly-owns the Manager and is a substantial Unitholder. Pursuant to the SFLCB Regulations, during FY22, Mr Ho Chee Hwee Simon is
deemed to (i) have a business relationship with the Manager and FCT; and (ii) be connected to a substantial shareholder of the Manager and a
substantial Unitholder.
The Board of the Manager is satisfied that, as at 30 September 2022, Mr Ho Chee Hwee Simon was able to act in the best interests of all Unitholders
as a whole. As at 30 September 2022, Mr Ho Chee Hwee Simon was able to act in the best interests of all Unitholders as a whole.
ANNUAL REPORT 2022CORPORATE GOVERNANCE REPORT 140
(2) Ms Koh Choon Fah is a director and a shareholder of New Horizon Holdings Pte Ltd (“New Horizon”), holding a 20% shareholding interest in
New Horizon. New Horizon holds 28.68% of Edmund Tie Holdings Pte. Ltd., which in turn holds 100% of Edmund Tie & Company (SEA) Pte. Ltd.
(“ETCSEA”). Ms Koh thereby has an approximately 5.736% effective shareholding interest in ETCSEA. Ms Koh was the executive director and chief
executive officer of ETCSEA (the “ETCSEA Appointments”) until 31 March 2021 and 30 June 2021 respectively.
ETCSEA has been appointed by related corporations of the Manager, being other entities within the FPL group (“FPL Group”) in the current
and immediately preceding financial year, to provide services, including property valuation, property tax consultancy and marketing services
and received fees therefor (the “ETCSEA Fees”). These services fall within the categories of business relationships set out in Regulation 13G of
the SFLCB Regulations. Pursuant to the SFLCB Regulations, during FY22, Ms Koh Choon Fah is deemed to have a business relationship with the
Manager and FCT.
Nonetheless, taking into consideration that the fees paid previously to ETCSEA have been made on an arm’s length basis following assessment
and determination carried out independently by the management teams of the relevant FPL Group entities based on objective criteria, including
competence, service level and/or competitiveness of pricing and the declaration of independence by Ms Koh Choon Fah, the Board of the
Manager is satisfied that the appointment of ETCSEA by entities of the FPL Group and the payment of ETCSEA Fees in respect therefor do not
affect her continued ability to exercise strong objective judgement and be independent in conduct and character (in particular, in the expression
of her views and in her participation in the deliberations and decision-making of the Board and Board Committees of which she is a member),
acting in the best interests of all Unitholders as a whole.
As a measure by the Manager to mitigate potential conflicts of interest, FCT will not consider ETCSEA for the provision of valuation services for any
acquisition or disposal of retail assets by FCT or for any existing assets of FCT. For all other services, if ETCSEA is assessed and determined to be
the most suitable based on objective criteria, including competence, service level and/or competitiveness of pricing, and FCT is considering to
engage ETCSEA, Ms Koh Choon Fah will abstain from voting on any proposal for such engagement. Further, following the cessation of the ETCSEA
Appointments, even though Ms Koh continues to have an approximately 5.736% effective shareholding interest in ETCSEA, she is no longer
involved in the running of the business of, or the provision of services by, ETCSEA.
The Board of the Manager is satisfied that, as at 30 September 2022, Ms Koh Choon Fah was able to act in the best interests of all Unitholders as
a whole. As at 30 September 2022, Ms Koh Choon Fah was able to act in the best interests of all Unitholders as a whole.
(3) Mr Low Chee Wah is currently employed by a related corporation of the Manager and is a director of various subsidiaries/associated companies
of FPL, which wholly owns the Manager and is a substantial Unitholder. As such, during FY22, he is deemed (i) to have a management relationship
with the Manager and FCT; and (ii) connected to a substantial shareholder of the Manager and substantial Unitholder. The Board of the Manager is
satisfied that, as at 30 September 2022, Mr Low Chee Wah was able to act in the best interests of all Unitholders as a whole. As at 30 September
2022, Mr Low Chee Wah was able to act in the best interests of all Unitholders as a whole.
(4) Ms Soon Su Lin is currently employed by a related corporation of the Manager and is a director of various subsidiaries/associated companies of
FPL, which wholly owns the Manager and is a substantial Unitholder. As such, during FY22, she is deemed (i) to have a management relationship
with the Manager and FCT; and (ii) connected to a substantial shareholder of the Manager and substantial Unitholder. The Board of the Manager
is satisfied that, as at 30 September 2022, Ms Soon Su Lin was able to act in the best interests of all Unitholders as a whole. As at 30 September
2022, Ms Soon Su Lin was able to act in the best interests of all Unitholders as a whole.
The independent Directors lead the way in upholding good corporate governance at the Board level and their presence
facilitates the exercise of objective independent judgement on corporate affairs. Their participation and input also
ensure that key issues and strategies are critically reviewed, constructively challenged, fully discussed and thoroughly
examined, taking into account the long-term interests of FCT and its Unitholders. As of 30 September 2022, none of
the independent Directors have served on the Board for a continuous period of nine years or longer. Board renewal
is a continuing process where the appropriate composition of the Board is continually under review. In this regard,
the tenure of each independent Director is monitored so that the process for board renewal is commenced ahead of
any independent Director reaching the nine-year mark to facilitate a smooth transition and to ensure that the Board
continues to have an appropriate balance of independence. To this end, the NRC is tasked with undertaking the process
of reviewing, considering and recommending any changes to the composition of the Board, where appropriate, taking
into account the requirements to be met by independent Directors including the SFLCB Regulations.
As at least half of the Board comprises independent Directors, the Manager will not be subjecting any appointment or
re-appointment of Directors to voting by Unitholders under Regulation 13D of the SFLCB Regulations. The Chairman
is presently an independent Director.
Conflict of Interest
The Board has in place clear procedures for dealing with conflicts of interest. To address and manage possible
conflicts of interest (including in relation to Directors, officers and employees) that may arise in managing FCT, the
Manager has put in place procedures which, among other things, specify that: (a) the Manager shall be dedicated to
the management of FCT and will not directly or indirectly manage other REITs; (b) all executive officers of the Manager
will be employed by the Manager; (c) 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; (d) at least one-third
of the Board shall comprise independent Directors; (e) on matters where FPL and/or its subsidiaries have an interest
(directly or indirectly), Directors nominated by FPL and/or its subsidiaries shall abstain from voting. On such matters,
the quorum must comprise a majority of independent Directors and must exclude nominee Directors of FPL and/
or its subsidiaries; and (f) an interested Director is required to disclose his interest in any proposed transaction with
FCT, to recuse himself or herself from meetings and/or discussions (or relevant segments thereof), and is required to
abstain from voting on resolutions approving the transaction.
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The Manager does not have a practice of extending loans to Directors, and as at 30 September 2022, there were no
loans granted by the Manager to Directors. If there are such loans, the Manager will comply with its obligations under
the Companies Act 1967 of Singapore in relation to loans, quasi-loans, credit transactions and related arrangements
to Directors.
Board Performance Evaluation
The NRC is tasked with making recommendations to the Board on the process and objective performance criteria for
evaluation of the performance of the Board as a whole, the Board Committees and the individual Directors.
The Board, with the recommendation of the NRC, has approved the objective performance criteria and implemented
a formal process for assessing the effectiveness of the Board as a whole and its Board Committees separately, and
the contribution by the Chairman and each individual Director to the effectiveness of the Board, on an annual basis.
The objective performance criteria are not typically changed from year to year.
In relation to FY21, the outcome of the evaluation was generally affirmative across the evaluation categories. Based on
the NRC’s review, the Board and the various Board Committees operate effectively and each Director is contributing
to the overall effectiveness of the Board.
For FY22, an independent external consultant, Aon Solutions Singapore Pte. Ltd. (“Aon”), has been appointed to
facilitate the process of conducting a Board evaluation survey. The external consultant has no connection with the
Manager or FCT or any of the Directors.
Each Director is required to complete a Board evaluation questionnaire, a Board Committee evaluation questionnaire
and an individual Director self-evaluation questionnaire (the “Questionnaires”). The Questionnaires have been
designed to provide an evaluation of the current effectiveness of the Board and to support the Chairman and the Board
in proactively considering what can enhance the readiness of the Board to address emerging strategic priorities for
FCT as a whole. The external consultant will facilitate the sending of questionnaires to all Directors, and one-to-one
interviews are conducted selectively on a rotational basis, to obtain Directors’ feedback.
The objective performance criteria covered in the Board evaluation exercise relate to the following key segments:
(1) Board composition (balance of skills, experience, independence, knowledge of the company, and diversity);
(2) management of information flow; (3) Board processes (including Board practices and conduct); (4) Board’s
consideration of ESG aspects; (5) Board strategy and priorities; (6) Board’s value-add to, and management of the
performance of the Manager and FCT; (7) development and succession planning of executives; (8) development and
training of Directors; (9) oversight of risk management and internal controls; and (10) the effectiveness of the Board
Committees. The individual Director self-evaluation questionnaire aims to assess whether each Director is willing and
able to constructively challenge and contribute effectively to the Board, and demonstrate commitment to his or her
roles on the Board and Board Committees (if any).
The responses to the Questionnaires and interview(s), if any for that particular financial year, are summarised by the
external consultant and its report submitted to the NRC. To provide a greater level of objectivity in the evaluation
process, the report also includes peer comparisons and third-party benchmarking of the results to the evaluation.
Findings and recommendations of the external consultant which include feedback from Directors would be taken
into consideration and any necessary follow-up actions would be undertaken with a view to improving the overall
effectiveness of the Board in fulfilling its role and meeting its responsibilities to Unitholders. The Chairman will, where
necessary, provide feedback to the Directors with a view to improving Board performance and, where appropriate,
propose changes to the composition of the Board.
ANNUAL REPORT 2022CORPORATE GOVERNANCE REPORT 142
REMUNERATION MATTERS
The remuneration of the staff of the Manager and Directors’ fees are paid by the Manager from the management fees
it receives from FCT, and not by FCT. With the recommendations of the NRC, the Board has put in place a formal and
transparent process for developing policies on remuneration of Directors and Key Management Personnel and for
fixing the remuneration packages of individual Directors and Key Management Personnel.
Compensation Philosophy
The Manager seeks to incentivise and reward consistent and sustained performance through market competitive,
internally equitable and performance-orientated compensation programmes which are aligned with Unitholders’ interests.
This compensation philosophy serves as the foundation for the Manager’s remuneration framework, and guides the
Manager’s remuneration framework and strategies. In addition, the Manager’s compensation philosophy seeks to align
the aspirations and interests of its employees with the interests of FCT and its Unitholders, resulting in the sharing of
rewards for both employees and Unitholders on a sustained basis. The Manager’s compensation philosophy serves
to attract, retain and motivate employees. The Manager aims to connect employees’ desire to develop and fulfil their
aspirations with the growth opportunities afforded by the Manager’s strategic vision and corporate initiatives.
Compensation Principles
All compensation programme design, determination and administration are guided by the following principles:
(a)
Pay-for-Performance
The Manager’s Pay-for-Performance principle encourages excellence, in a manner consistent with the Manager’s
core values. The Manager takes a total compensation approach, which recognises the value and responsibility
of each role, and differentiates and rewards performance through its incentive plans.
(b)
Unitholder Returns
Performance measures for incentives are established to drive initiatives and activities that are aligned with
both short-term value creation and long-term Unitholder wealth creation, thus ensuring a focus on delivering
Unitholder returns.
(c)
Sustainable Performance
The Manager believes sustained success depends on the balanced pursuit and consistent achievement of
short-term and long-term goals. Hence, variable incentives incorporate a significant pay-at-risk element to
align employees with sustainable performance for the Manager.
(d) Market Competitiveness
The Manager aims to be market competitive by benchmarking its compensation levels with relevant comparators
accordingly. However, the Manager embraces a holistic view of employee engagement that extends beyond
monetary rewards. Recognising each individual as unique, the Manager seeks to motivate and develop employees
through all the levers available to the Manager through its comprehensive human capital platform.
Engagement of External Consultants
The NRC may from time to time, and where necessary or required, engage external consultants in framing the
remuneration policy and determining the level and mix of remuneration for Directors and Management. Among other
things, this helps the Manager to stay competitive in its remuneration packages. During FY22, Aon was appointed
as the Manager’s remuneration consultant. The remuneration consultant does not have any relationship with FCT,
the Manager, its controlling shareholders, its related entities and/or its Directors which would affect its independence
and objectivity.
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Governance
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Other Information
143
Remuneration Framework
The NRC reviews and makes recommendations to the Board on the remuneration framework for the independent
Directors and other non-executive Directors and the Key Management Personnel. The remuneration framework is
endorsed by the Board.
The remuneration framework covers all aspects of remuneration including salaries, allowances, performance bonuses,
benefits-in-kind, termination terms and payments, grant of awards of units of FCT (“Units”) and incentives for the
Key Management Personnel and fees for the independent Directors and other non-executive Directors, and the NRC
considers all such aspects of remuneration to ensure they are fair and avoids rewarding poor performance.
The remuneration framework is tailored to the specific role and circumstances of each Director and Key Management
Personnel, to ensure an appropriate remuneration level and mix that recognises the performance, potential and
responsibilities of these individuals, as applicable.
Remuneration Policy in respect of Management and other employees
The NRC reviews the level, structure and mix of remuneration and benefits policies and practices (where appropriate)
of the Manager, to ensure that they are appropriate and proportionate to the sustained performance and value creation
of FCT and the Manager, taking into account the strategic objectives of FCT and the Manager, and designed to attract,
retain and motivate the Key Management Personnel to successfully manage FCT and the Manager for the long term.
The NRC takes into account all aspects of remuneration, including termination terms, to ensure that they are fair.
The remuneration framework comprises fixed and variable components, which include short-term and long-term
incentives. When conducting its review of the remuneration, the NRC takes into account the performance of FCT and
individual performance. The performance of FCT is measured based on pre-set financial and non-financial indicators.
Individual performance is measured via the employee’s annual appraisal based on indicators such as core values,
competencies and key performance indicators.
Fixed Component
The fixed component in the Manager’s remuneration framework is structured to remunerate employees for the roles
they perform, and is benchmarked against relevant industry market data. It comprises base salary, fixed allowances
and any statutory contribution. The base salary and fixed allowances for Key Management Personnel are reviewed
annually by the NRC and approved by the Board.
Variable Component
A significant and appropriate proportion of the remuneration of key executives of the Manager comprises a variable
component which is structured so as to link rewards to corporate and individual performance and incentivise sustained
performance in both the short and long term. The variable incentives are measured based on quantitative and qualitative
targets, and overall performance will be determined at the end of the year and approved by the NRC. The performance
targets are measurable, appropriate and meaningful so that they incentivise the right behaviour in a manner consistent
with the Group’s core values. For individuals in control functions, performance targets are principally based on the
achievement of the objectives of their functions.
1.
Short-Term Incentive Plans
The short-term incentive plans (“STI Plans”) aim to incentivise excellence in performance in the short term.
All Key Management Personnel’s performance are assessed through either a balanced scorecard or annual
performance review with pre-agreed financial and non-financial key performance indicators (“KPIs”). The financial
KPIs are based on the performance of FCT. Non-financial KPIs may include measures on Culture & People,
Business Growth, Digitalisation, Data & Innovation and Sustainability or specified projects. The sustainability
performance indicator includes areas such as asset and entity level ESG benchmarking, green finance and
skills and leadership. These targets are established at the beginning of each financial year. At the end of the
financial year, the achievements are measured against the pre-agreed targets and the short-term incentives of
each Key Management Personnel are determined.
The NRC recommends the final short-term incentives that are awarded to Key Management Personnel for
the Board’s approval, taking into consideration any other relevant circumstances.
ANNUAL REPORT 2022CORPORATE GOVERNANCE REPORT 144
2.
Long-Term Incentive Plans
The NRC administers the Manager’s long-term incentive plan, namely, the RUP. The RUP was approved by the
Board and subsequently adopted by Unitholders on 8 December 2017. Through the RUP, the Manager seeks to
foster a greater ownership culture within the Manager by aligning more directly the interests of senior executives
(including the CEO) with the interests of Unitholders and other stakeholders, and for such employees to
participate and share in FCT’s growth and success, thereby ensuring alignment with sustainable value creation
for Unitholders over the long term.
The RUP is available to selected senior executives of the Manager. Its objectives are to increase the Manager’s
flexibility and effectiveness in its continuing efforts to attract, retain and motivate talented senior executives
and to reward these executives for the future performance of FCT and the Manager.
Under the RUP, the Manager grants Unit-based awards (“Initial Awards”) with pre-determined performance targets
being set at the beginning of the performance period. The NRC recommends the Initial Awards granted to Key
Management Personnel to the Board for approval, taking into consideration the Key Management Personnel’s
individual performance. The performance period for the RUP is one year. The pre-set targets are net property
income and distribution per Unit. Such performance conditions are generally performance indicators that are
key drivers of business performance, Unitholder value creation and aligned to FCT’s business objectives.
The RUP awards represent the right to receive fully paid Units, their equivalent cash value or a combination
thereof, free of charge, provided certain prescribed performance conditions are met. The final number of Units
to be released (“Final Awards”) will depend on the achievement of the pre-determined targets at the end of
the performance period. If such targets are exceeded, more Units than the Initial Awards may be delivered,
subject to a maximum multiplier of the Initial Awards. The Final Awards will vest to the participants in three
tranches over two years after a one-year performance period. The obligation to deliver the Units is expected
to be satisfied out of the Units held by the Manager.
The NRC has absolute discretion to decide on the Final Awards, taking into consideration any other relevant
circumstances.
Approach to Remuneration of Key Management Personnel
The Manager advocates a performance-based remuneration system that is highly flexible and responsive to the market,
and that is structured so as to link a significant and appropriate proportion of remuneration to FCT’s performance and
that of the individual.
In designing the compensation structure, the NRC seeks to ensure that the level and mix of remuneration is competitive,
relevant and appropriate in finding a balance between current versus long-term compensation and between cash
versus equity incentive compensation.
Executives who have a greater ability to influence outcomes within the Manager have a greater proportion of overall
reward at risk. The NRC exercises broad discretion and independent judgement in ensuring that the amount and
mix of compensation are aligned with interests of Unitholders and other stakeholders and promote the long-term
success of FCT, and appropriate to attract, retain and motivate Key Management Personnel to successfully manage
FCT for the long term.
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Performance Indicators for Key Management Personnel
As set out above, the Manager’s variable remuneration comprises short-term and long-term incentives, taking into
account both FCT’s and individual performance. This is to ensure employee remuneration is linked to performance.
In determining the short-term incentives, both FCT’s financial and non-financial performance as per the balanced
scorecard are taken into consideration. The performance targets align the interests of the Key Management Personnel
with the long-term growth and performance of FCT and the Manager. The financial performance indicators on which
the Key Management Personnel are evaluated comprise (a) FCT’s net property income, (b) distribution per Unit, (c)
FCT’s price-to-book value (against a peer group), (d) Manager’s profit before interest and tax, and (e) divestment of
non-core assets. These performance indicators are quantitative and are objective measures of FCT’s performance.
The non-financial performance indicators on which the Key Management Personnel are evaluated include (i) Culture &
People, (ii) Business Growth, (iii) Digitalisation, Data & Innovation and (iv) Sustainability. The sustainability performance
indicator includes areas such as asset and entity level ESG benchmarking, green finance and skills and leadership.
These qualitative performance indicators will align the Key Management Personnel’s performance with FCT’s strategic
objectives.
In relation to long-term incentives, the Manager has implemented the RUP with effect from the financial year ended
30 September 2018 as set out above. The release of long-term incentive awards to Key Management Personnel are
conditional upon the performance targets being met. The performance targets of the KPIs align the interests of the
Key Management Personnel with the long-term growth and performance of FCT. In FY22, the pre-determined target
performance levels for the RUP grant were met.
Currently, the Manager does not have claw-back provisions which allow it to reclaim incentive components of
remuneration from its Key Management Personnel in exceptional circumstances of misstatement of financial results
or misconduct resulting in financial loss.
Remuneration Packages of Key Management Personnel
The NRC reviews and makes recommendations on the specific remuneration packages and service terms for the
Key Management Personnel for endorsement by the Board, which is ultimately accountable for all remuneration
decisions relating to the Key Management Personnel. 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.
No Director or Key Management Personnel is involved in deciding his or her remuneration.
The NRC aligns the CEO’s leadership, through appropriate remuneration and benefit policies, with FCT’s and
the Manager’s strategic objectives and key challenges. Performance targets are also set for the CEO and his performance
is evaluated yearly.
Remuneration Policy in respect of Non-Executive Directors
The remuneration of non-executive Directors has been designed to be appropriate to the level of contribution, taking
into account factors such as effort, time spent, and responsibilities, on the Board and Board Committees, and to attract,
retain and motivate the Directors to provide good stewardship of FCT to successfully manage FCT for the long term.
Non-executive Directors do not receive bonuses, options or Unit-based incentives and awards. Directors’ fees are
paid in cash and not in the form of Units.
The Manager engages consultants to review Directors’ fees by benchmarking such fees against the amounts paid
by listed industry peers. Each non-executive Director’s remuneration comprises a basic fee and attendance fees for
attending Board and Board Committee meetings. In addition, non-executive Directors who perform additional services
in Board Committees are paid an additional fee for such services. The chairman of each Board Committee is also paid
a higher fee compared with the members of the respective Board Committees in view of the greater responsibility
carried by that office.
ANNUAL REPORT 2022CORPORATE GOVERNANCE REPORT 146
The Manager’s Board fee structure during FY22 is set out below.
Basic Fee
per annum
(S$)
90,000
45,000
40,000
20,000
12,000
6,000
Board
– Chairman
– Member
Audit, Risk and
Compliance Committee
– Chairman
– Member
Nominating and
Remuneration Committee
– Chairman
– Member
Notes:
Attendance Fee
per meeting(1)
(for physical
attendance in
Singapore)
(S$)
Attendance Fee
(for physical
attendance outside
Singapore (excluding
home country
Attendance Fee
per meeting
(for attendance
via tele/video
of Director))
(S$)
conference)
(S$)
3,000
1,500
3,000
1,500
3,000
1,500
4,500
4,500
4,500
4,500
4,500
4,500
1,000
1,000
1,000
1,000
1,000
1,000
(1) The attendance fee applies for attendance in person in Singapore.
Disclosure of Remuneration of Directors and Key Executives of the Manager
Information on the remuneration of Directors and key executives of the Manager for FY22 is set out below.
Directors of the Manager
Dr Cheong Choong Kong
Mr Ho Chai Seng
Mr Ho Chee Hwee Simon
Ms Koh Choon Fah
Mr Low Chee Wah(2)
Ms Soon Su Lin(3)
Mr Christopher Tang Kok Kai(4)
Notes:
Remuneration
S$(*)
138,500.00
98,000.00
90,500.00(1)
113,500.00
56,000.00
34,250.00
16,750.00
(1) Excludes S$75,000 and S$175,000 being payment of director’s fees and advisor’s fees respectively for the Prior Appointments, the additional
payment of S$100,000 in FY22 in connection with his appointment as advisor to FPL and S$75,000 being payment of director’s fees for the FPS
Appointment, from FPL Group (excluding the Manager).
(2) Director’s fees for Mr Low Chee Wah are paid to Frasers Property Corporate Services Pte. Ltd.
(3) Director’s fees for Ms Soon Su Lin are paid to Frasers Property Corporate Services Pte. Ltd.
(4) Excludes S$54,000 being payment of advisor’s fees for the period from 1 October 2021 to 31 December 2021 in relation to his appointment as
advisor to FPL with effect from 1 January 2020. The advisor’s fees are pro-rated based on an annual amount of S$216,000, and paid by FPL Group
(excluding the Manager). Mr Christopher Tang Kok Kai retired as a Director and a member of the NRC on 1 January 2022.
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Remuneration of CEO for FY22
Between S$750,001 to S$1,000,000
Mr Richard Ng
Remuneration of key
executives of the Manager(1)
(excluding CEO) for FY22
Ms Tan Loo Ming Audrey
Ms Pauline Lim
Mr Chen Fung Leng
Aggregate Total Remuneration
(excluding CEO)
Notes:
Salary
%
Bonus
%
Allowances
and
Benefits
%
Long-Term
Incentives
%
Total
%
46
26
4
24
100
Salary
%
Bonus
%
Allowances
and
Benefits
%
Long-Term
Incentives
%
Total
%
50(2)
17(2)
5(2)
28(2)
100
S$1,443,556
(1) At present, the Manager has three key executives (excluding the CEO). They are the CFO and the division heads of the Manager and they are listed
in this table.
(2) Derived based on the aggregation of the respective remuneration components of each of the key executives of the Manager (excluding the CEO)
and represented as percentages against the total remuneration for these key executives.
There are no existing or proposed service agreements entered into or to be entered into by the Manager or any of its
subsidiaries with Directors or Key Management Personnel which provide for compensation in the form of stock options,
or pension, retirement or other similar benefits, or other benefits, upon termination of employment.
Pursuant to the MAS Notice to All Holders of a Capital Markets Services Licence for Real Estate Investment Trust
Management (Notice No: SFA4-N14), REIT managers are required to disclose the remuneration of the CEO and each
individual Director on a named basis, and 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 REIT
manager may provide an explanation if it does not wish to or is unable to comply with such requirement. The Manager
has decided (a) to disclose the CEO’s remuneration in bands of S$250,000 (instead of on a quantum basis), (b) not to
disclose the remuneration of the other key executives of the Manager in bands of S$250,000 and (c) to disclose the
aggregate remuneration of all key executives of the Manager (excluding the CEO), for the following reasons:
(i)
(ii)
(iii)
(iv)
(v)
given the competitive business environment which FCT operates in, the Manager faces significant competition
for talent in the REIT management sector and the Manager has not disclosed the exact remuneration of the
key executives (including the CEO) so as to minimise potential staff movement and undue disruption to its
management team which would be prejudicial to the interests of Unitholders;
the composition of the current management team has been 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;
it is important for the Manager to ensure stability and continuity of their business by retaining a competent and
experienced management team and being able to attract talented staff and disclosure of the remuneration of the
CEO and the other key executives could make it difficult to retain and attract talented staff on a long-term basis;
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
the remuneration of the CEO and the other key executives of the Manager are paid by the Manager and there
is full disclosure of the total amount of fees paid to the Manager set out at pages 169, 213 and 234 to 235 of
this Annual Report.
ANNUAL REPORT 2022CORPORATE GOVERNANCE REPORT 148
While the disclosure of the exact quantum of the remuneration of the CEO and the requisite remuneration band for
each of the other key executives (who are not also Directors or the CEO) would be in full compliance with Provision
8.1 of the CG Code, taking into account the reasons why such disclosure would be prejudicial to the interests of
Unitholders and that the Manager has disclosed the remuneration policies, composition of remuneration, appraisal
process and performance metrics which go towards determination of the performance bonus of the CEO and other
key executives, the Board has determined that despite the partial deviation from Provision 8.1 of the CG Code, there
is sufficient transparency on the Manager’s remuneration policies, level and mix of remuneration, the procedure
for setting remuneration and the relationships between remuneration, performance and value creation which are
consistent with the intent of Principle 8 of the CG Code.
As at 30 September 2022, there are no employees within the Manager who is a substantial Unitholder or who is an
immediate family member of a Director, the CEO or a substantial Unitholder.
FINANCIAL PERFORMANCE, REPORTING AND AUDIT
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 are made available to the Directors on request.
The Manager prepares the financial statements of FCT in accordance with the recommendations of the Statement of
Recommended Accounting Practice 7 “Reporting Framework for Investment Funds” issued by the Institute of Singapore
Chartered Accountants, the applicable requirements of the CIS Code issued by the MAS, SGX-ST Listing Manual, Singapore
Financial Reporting Standards (International), and the provisions of the Trust Deed.
The Board releases FCT’s half-yearly and full year financial results. The Manager also provides business updates to
Unitholders for the first and third quarter performance of FCT. The Board also provides Unitholders with relevant business
updates, other price or trade sensitive information and material corporate developments through announcements
to the SGX-ST and FCT’s website.
External Audit
The ARCC conducts an assessment of the external auditors, and recommends its appointment, re-appointment or
removal to the Board. The assessment is based on factors such as the performance and quality of its audit, the cost
effectiveness and the independence and objectivity of the external auditors. The ARCC also makes recommendations
to the Board on the remuneration and terms of engagement of the external auditors.
At the annual general meeting (“AGM”) held on 18 January 2022, KPMG LLP was re-appointed by Unitholders as the
external auditors of FCT until the conclusion of the next AGM. Pursuant to the requirements of the SGX-ST, an audit
partner may only be in charge of a maximum of five consecutive annual audits and may then return after two years.
The KPMG LLP audit partner in charge of the annual audit for the Group for FY22 is in charge of the annual audit for
the second time.
During FY22, the ARCC conducted a review of the scope, quality, results and performance of audit by the external
auditors and its cost effectiveness, as well as the independence and objectivity of the external auditors. It also
reviewed all non-audit services provided by the external auditors during the financial period, and the aggregate
amount of fees paid to them for such services. Details of fees paid or payable to the external auditors in respect of
audit and non-audit services for FY22 are set out in the table below:
Fees relating to external auditors for FY22
For audit and audit-related services
For non-audit services
Total
S$’000
334.9
223.3
558.2
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The ARCC has conducted a review of all non-audit services provided by KPMG LLP during the financial period. The
ARCC 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 LLP is put at risk. KPMG LLP attended the ARCC meetings
held every quarter for FY22, and where appropriate, has met with the ARCC without the presence of Management to
discuss their findings, if any.
The Manager, on behalf of FCT, confirms that FCT has complied with Rule 712 of the SGX-ST Listing Manual which
requires, amongst others, that a suitable auditing firm should be appointed by FCT having regard to certain factors.
FCT has also complied with Rule 715 of the SGX-ST Listing Manual which requires that the same auditing firm of FCT
based in Singapore audits its Singapore-incorporated subsidiaries and significant associated companies, and that
a suitable auditing firm be engaged for its significant foreign-incorporated subsidiaries and associated companies.
In the review of the financial statements for FY22, the ARCC discussed the following key audit matters identified by
the external auditors with Management:
Key Audit Matters
How this issue was addressed by the ARCC
Valuation of investment properties
The ARCC considered the methodologies and key assumptions applied by
the valuers in arriving at the valuation of the properties.
The ARCC reviewed the outputs from the financial year-end valuation
process of the Group’s investment properties and discussed the details of
the valuation with Management, focusing on significant changes in fair value
measurements and key drivers of the changes.
The ARCC was satisfied with the valuation process, the methodologies used
and the valuation for investment properties as adopted as at 30 September
2022.
GOVERNANCE OF RISK AND INTERNAL CONTROLS
The Board is responsible for the governance of risk and ensures that Management maintains a sound system of risk
management and internal controls.
Enterprise Risk Management and Risk Tolerance
The Manager has established a sound system of risk management and internal controls comprising procedures and
processes to safeguard FCT’s assets and the interests of FCT and its Unitholders. The ARCC reviews and reports to the
Board on the adequacy and effectiveness of such controls, including financial, operational, compliance and information
technology controls, and risk management procedures and systems, taking into consideration the recommendations
of both internal and external auditors.
Internal Controls
The ARCC, 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, operational, compliance and information
technology controls. In assessing the effectiveness of internal controls, the ARCC ensures primarily that key objectives
are met, material assets are properly safeguarded, fraud or errors (if any) 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.
The ARCC and the Board have been monitoring the rising interest rates, cost inflation pressures and global geopolitical
tensions, as well as the development of the new strain of the COVID-19 (XBB sub-variant) in Singapore which have an
impact on FCT’s financials and are working closely with Management on an ongoing basis. The ARCC and the Board
are updated by Management regularly on the results of various scenario planning and stress testing to assess and track
the possible impact on FCT’s financials. Capital and liquidity management remain priorities for the Manager and FCT.
ANNUAL REPORT 2022CORPORATE GOVERNANCE REPORT 150
Risk Management
The Board, through the ARCC, reviews the adequacy and effectiveness of the Manager’s risk management framework
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 pages 81 to 83.
Periodic updates are provided to the ARCC on FCT’s and the Manager’s risk profiles. These updates would involve an
assessment of FCT’s and the Manager’s key risks by risk categories, current status, the effectiveness of any 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 ARCC. Risk tolerance statements setting out the nature and
extent of significant risks which the Manager is willing to take in achieving its strategic objectives and value creation
have been formalised and adopted.
The Board has received assurance from the CEO and the CFO that as at 30 September 2022:
(a)
(b)
the financial records of FCT have been properly maintained and the financial statements for FY22 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 to address financial, operational,
compliance and information technology risks which the Manager considers relevant and material to FCT’s
operations; and
(c)
the risk management system in place for FCT is adequate and effective to address risks which the Manager
considers relevant and material to FCT’s operations.
Board’s Comment 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 ARCC and assurance from the CEO and the CFO, the Board
is of the view that the internal controls in place for FCT were adequate and effective as at 30 September 2022 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 adopted by the Manager, review performed by Management
and assurance from the CEO and the CFO, the Board is of the view that the risk management system in place for
FCT was adequate and effective as at 30 September 2022 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 FCT will not be adversely affected by any event that could be reasonably foreseen as the Manager
works to achieve its business objectives for FCT.
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 judgement in decision-making, human error, losses, fraud
or other irregularities.
The ARCC concurs with the Board’s view that as at 30 September 2022, the internal controls of FCT (including financial,
operational, compliance and information technology controls) and risk management systems in place for FCT were
adequate and effective to address risks which the Manager considers relevant and material to FCT’s operations.
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Internal Audit
The internal audit function of the Manager is performed by FPL Group’s internal audit department (“FPL Group IA”). FPL
Group IA is responsible for conducting objective and independent assessments on the adequacy and effectiveness
of the Manager’s system of internal controls, risk management and governance practices. The Head of FPL Group IA
reports directly to the ARCC and administratively, to FPL’s Group Chief Corporate Officer. The appointment and removal
of FPL Group IA as the service provider of the Manager’s internal audit function requires the approval of the ARCC.
The ARCC ensures that FPL Group IA complies with the standards set by nationally or internationally recognised
professional bodies. In this regard, in performing internal audit services, FPL Group IA has adopted and complies with
the Standards for the Professional Practice of Internal Auditing set by The Institute of Internal Auditors, Inc.
The ARCC is also responsible for ensuring that the internal audit function is adequately resourced and staffed with persons
with the relevant qualifications and experience. As at 30 September 2022, FPL Group IA comprised 24 professional staff.
The Head of FPL Group IA and the Singapore-based FPL Group IA staff are members of The Institute of Internal Auditors,
Singapore. To ensure that the internal audit activities are effectively performed, FPL Group IA recruits suitably qualified
audit professionals with the requisite skills and experience. FPL Group IA staff are given relevant training and development
opportunities to update their technical knowledge and auditing skills. This includes attending relevant technical workshops
and seminars organised by The Institute of Internal Auditors, Singapore and other professional bodies.
FPL Group IA operates within the framework of a set of terms of reference as contained in the Internal Audit Charter
approved by the ARCC. It adopts a risk-based audit methodology to develop its audit plan, and its activities are aligned
with the key strategies of FCT. Risk assessments are carried out on all key business processes, the results of which are
used to determine the extent and the frequencies of the reviews to be performed. Higher risk areas are subject to more
extensive and frequent reviews. FPL Group IA conducts its reviews based on the internal audit plan approved by the
ARCC. FPL Group IA has unfettered access to FCT’s and the Manager’s documents, records, properties and personnel,
including the ARCC members, and has appropriate standing with FCT and the Manager. All audit reports detailing audit
findings and recommendations are provided to Management, who would respond with the actions to be taken.
Each quarter, FPL Group IA submits reports to the ARCC on the status of completion of the audit plan, audit findings noted
from reviews performed, and status of Management’s action plans to address such findings, including implementation
of the audit recommendations. The ARCC is satisfied that FPL Group IA is independent, effective, adequately resourced,
and has appropriate standing within FCT and the Manager to perform its functions effectively. Quality assurance
reviews on FPL Group’s internal audit function are periodically carried out by qualified professionals from an external
organisation. The last review was performed in FY22. Where required, the ARCC will make recommendations to the
Board to ensure that FPL Group IA remains an adequate, effective and independent internal audit function.
Related/Interested Person Transactions
The Manager has established internal processes such that the Board, with the assistance of the ARCC, is required
to be satisfied that all Related/Interested Person Transactions are undertaken on normal commercial terms, and are
not 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). Directors who are interested in any proposed Related/Interested
Person Transaction to be entered into by FCT are required to abstain from any deliberations or decisions in relation
to that Related/Interested Person Transaction.
All Related/Interested Person Transactions are entered in a register maintained by the Manager. The Manager incorporates
into its internal audit plan a review of the Related/Interested Person Transactions recorded in the register to ascertain
that internal procedures and requirements of the SGX-ST Listing Manual and Property Funds Appendix have been
complied with. The ARCC reviews the internal audit reports at least twice a year to ascertain that the guidelines and
procedures established to monitor Related/Interested Person Transactions have been complied with. The review
includes the examination of the nature of the Related/Interested Person Transactions and its supporting documents
or such other data deemed necessary by the ARCC. In addition, the Trustee also has the right to review any such
relevant internal audit reports to ascertain that the Property Funds Appendix has been complied with.
Any Related/Interested Person Transaction proposed to be entered into between FCT and an interested person,
would require the Trustee to satisfy itself that such Related/Interested Person Transaction is conducted on normal
commercial terms, is not prejudicial to the interests of FCT and its Unitholders, and is in accordance with all applicable
requirements of the CIS Code and the SGX-ST Listing Manual.
ANNUAL REPORT 2022CORPORATE GOVERNANCE REPORT 152
Whistle-Blowing Policy
The Manager has put in place a whistle-blowing policy (the “Whistle-Blowing Policy”). The Whistle-Blowing Policy
provides an independent feedback channel through which matters of concern about possible improprieties, misconduct
or wrongdoing relating to FCT, the Manager and its officers in matters of financial reporting, suspected fraud and
corruption or other matters may be raised by employees and any other persons in confidence and in good faith, without
fear of reprisal. Whistle-Blowers may report any matters of concern by mail, email or calling a hotline, details of which
are provided in the Whistle-Blowing Policy, which is available on FCT’s website. Any report submitted through this
channel would be received by the Head of the internal audit function and the Manager has designated FPL Group IA,
an independent function, to investigate all whistle-blowing reports made in good faith. FPL is committed to ensuring
that whistle-blowers will be treated fairly, and protected from reprisals, victimisation or any otherwise detrimental or
unfair treatment for whistle-blowing in good faith. The Manager will treat all information received confidentially and
protect the identity of all whistle-blowers.
The improprieties, misconduct or wrongdoing that are reportable under the Whistle-Blowing Policy include: (a) financial
or professional misconduct; (b) improper conduct, dishonest, fraudulent or unethical behaviour; (c) any irregularity or
non-compliance with laws/regulations or the Manager’s policies and procedures, and/or internal controls; (d) violence
at the workplace, or any conduct that may threaten health and safety; (e) corruption or bribery; (f) conflicts of interest;
and (g) any other improprieties or matters that may adversely affect Unitholders’/shareholders’ interests in, and assets
of, FCT/the Manager as well as FCT’s/the Manager’s reputation. The Whistle-Blowing Policy is covered and explained
in detail during staff training, including the procedures for raising concerns. All whistle-blowing complaints raised
are independently investigated and if appropriate, an investigation committee will be constituted. The outcome of
each investigation and any action taken is reported to the ARCC. The ARCC, which is responsible for oversight and
monitoring of whistle-blowing, reviews and ensures that independent investigations and any appropriate follow-up
actions are carried out.
UNITHOLDER MATTERS
The Manager treats all Unitholders fairly and equitably in order to enable them to exercise their Unitholders’ rights
and have the opportunity to communicate their views on matters affecting FCT. Unitholders are also given accurate,
objective and timely and assessment of FCT’s performance, financial position and prospects. The Manager provides
regular updates via SGXNET announcements and on its websites and via participation in outreach retail investors
events hosted by the Securities Investors Association (Singapore), securities brokers or the SGX-ST. Unitholders and
investors can also contact the investor relations contact person at FCT to provide their feedback or submit enquiries.
The AGMs provide a platform for Unitholders to communicate their views to FCT Board and Management on various
matters affecting FCT.
Investor Relations
The Manager prides itself on its high standards of disclosure and corporate transparency. The Manager aims to provide
accurate, objective and timely information regarding FCT’s performance and progress and matters concerning FCT
and its business which are likely to materially affect the price or value of the Units or are likely to influence persons
who commonly invest in securities in deciding whether or not to subscribe for, or buy or sell the Units, to Unitholders
and the investment community, to enable them to make informed investment decisions.
The Manager’s dedicated Investor Relations (“IR”) manager is tasked with, and focuses on, facilitating communications
between FCT and its Unitholders, as well as with the investment community, analysts and media. Contact details of the
IR manager (“IR Contact”) are available on FCT’s website at https://www.frasersproperty.com/reits/fct for Unitholders,
investors and other stakeholders to channel their comments and queries. The IR policy also sets out the mechanism
through which Unitholders may contact the Manager with questions and through which the Manager may respond
to such questions.
Continuous and informed dialogue between the Manager and Unitholders is a central tenet of good corporate
governance. Regular engagement between these parties will promote greater transparency. Material and other pertinent
information such as press releases and presentation slides are released to the SGX-ST via SGXNET and FCT’s website.
Announcements through SGXNET and FCT’s website are the principal media of communication with Unitholders. In
the interim business updates for the first and third quarters of each financial year, the Manager provides, inter alia, a
discussion of the significant factors that affected FCT’s interim performance as well as relevant market trends, including
the risks and opportunities that may have a material impact on FCT’s prospects. Such information provides Unitholders
a better understanding of FCT’s performance in the context of the current business environment.
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The Management (including the IR manager), participates in investor conferences, roadshows, and one-on-one meetings
(including virtual meetings) to keep the investment community informed of FCT’s corporate developments, financial and
operational performance and strategies and in order to solicit and understand the views of Unitholders and investors.
Analysts’ briefings, conference calls and/or investors’ post-results calls were conducted after the announcements
of FY22 financial results/business updates for each quarter. Audio casts of the Manager’s presentations of FCT’s half
year and full year results are available on FCT’s website on the day of release of the respective results.
Details of the IR activities during the year can be found in the Investor Relations section of this Annual Report on
pages 22 to 24.
An electronic copy of this Annual Report is available on FCT’s website at https://fct.frasersproperty.com/publications.html.
Unitholders can also request for printed copies of this Annual Report via IR Contact.
The Trust Deed is also available for inspection upon request at the Manager’s office4.
Conduct of general meetings
In view of the COVID-19 pandemic, the 13th Annual General Meeting (“AGM 2022”) was convened and held by way
of electronic means on 18 January 2022, pursuant to the COVID-19 (Temporary Measures) (Alternative Arrangements
for Meetings for Companies, Variable Capital Companies, Business Trusts, Unit Trusts and Debenture Holders) Order
2020 (“COVID-19 Temporary Measures Order”). While Unitholders were not able to attend AGM 2022 physically and
participate in-person, they were able to submit questions to the Chairman of the Meeting “live” at AGM 2022 through
the electronic platform for AGM 2022 and have their questions addressed at AGM 2022 itself. All the Directors attended
AGM 2022 either in-person or via electronic means.
In view of the progressive easing of the COVID-19 community safe management measures in Singapore, the
forthcoming 14th Annual General Meeting (“AGM 2023”) will be held in a wholly physical format on 17 January 2023
pursuant to the COVID-19 Temporary Measures Order and Unitholders (themselves or through duly appointed
proxies) will be able to vote and ask questions in person at AGM 2023. The format of AGM 2023 may be subject to
further changes as may be necessitated due to the COVID-19 situation in Singapore.
The Board supports and encourages active Unitholder participation at AGMs as it believes that general meetings
serve as an opportune forum for Unitholders to meet the Board and senior Management, and to interact with them.
As and when an extraordinary general meeting is convened, a circular is sent to Unitholders, containing details of the
matters proposed for Unitholders’ consideration and approval. To encourage participation, FCT’s general meetings
are held at convenient locations. Unitholders are given the opportunity to participate effectively and vote at FCT’s
general meetings, where relevant rules and procedures governing such meetings (for instance, how to vote) are clearly
communicated prior to the start of the meeting. Unitholders such as nominee companies which provide custodial
services for securities are not constrained by the two proxy limitation, and are able to appoint more than two proxies
to attend, speak and vote at general meetings of FCT.
The Manager generally provides Unitholders with longer than the minimum notice period required for general meetings.
The Manager tries its best not to schedule AGMs during peak periods when these might coincide with the AGMs of
other listed companies. The Manager gives our Unitholders the necessary information on each resolution so as to
enable them to exercise their votes on an informed basis.
At general meetings, the Manager sets out separate resolutions on each substantially separate issue unless the issues
are interdependent and linked so as to form one significant proposal. In the event where resolutions are bundled, the
Manager will explain the reasons and material implications in the relevant notice of meeting. Unitholders are given the
opportunity to raise questions and clarify any issues that they may have relating to the resolutions sought to be passed.
For greater transparency, the Manager has implemented electronic poll voting at general meetings. This entails
Unitholders being invited to vote on each of the resolutions by poll, using an electronic voting system (instead of
voting by hands), thereby allowing all Unitholders present or represented at the meeting to vote on a one Unit, one
vote basis. The voting results of all votes cast for, against, or abstaining from each resolution is then screened at the
meeting and announced via SGXNET after the meeting. An independent external party is appointed as scrutineer for
the electronic voting process to count and validate the votes at general meetings. As the authentication of Unitholder
identity and other related security and integrity issues remain a concern, for FY22, the REIT Manager did not implement
absentia voting methods such as voting via mail, email or fax.
4 Prior appointment with the Manager is appreciated.
ANNUAL REPORT 2022CORPORATE GOVERNANCE REPORT 154
At the AGM, the Manager will make a presentation to update Unitholders on FCT’s financial and operational performance
for the financial year. The presentation materials are made available on SGXNET and FCT’s website before the
commencement of the AGM for the benefit of Unitholders.
Board members and senior Management are present at, and for the entire duration of, each Unitholders’ meeting
to respond to any questions from Unitholders, unless they are unable to attend due to exigencies. Certain external
consultants including FCT’s external auditors are also present to address queries about the conduct of audit and the
preparation and content of the auditors’ report.
The Chairman of the meeting is tasked with facilitating constructive dialogue between the Unitholders and the Board,
Management and the external auditors. Where appropriate, the Chairman allows specific Directors, such as the
respective Board Committee chairpersons, to answer queries on matters related to their roles. Unitholders are also
given an opportunity to interact with the Directors before and/or after general meetings.
The minutes of Unitholders’ meetings which include the attendance of Board members at the meetings, matters
approved by Unitholders, voting results and substantial and relevant comments or queries from Unitholders relating
to the agenda of the general meeting together with responses from the Board and Management, are prepared by the
Manager. The minutes will be available on FCT’s website after the Board’s approval and within one month from the
date of the meeting.
Distributions
FCT’s distribution policy is to distribute at least 90.0% of its taxable income, comprising substantially its income from
the letting of its properties and related property maintenance services income after deduction of allowable expenses
and such distributions are typically paid on a half-yearly basis. For FY22, the distribution for the first half-year (for the
period from 1 October 2021 to 31 March 2022) was made on 30 May 2022. The distribution for the second half-year
(for the period from 1 April 2022 to 30 September 2022) was made on 29 November 2022.
STAKEHOLDER ENGAGEMENT
The Board adopts an inclusive approach by considering and balancing the needs and interests of material stakeholders,
as part of its overall responsibility to ensure that the best interests of FCT are served. Stakeholders are parties who
may be affected by FCT’s or the Manager’s activities or whose actions can affect the ability of FCT or the Manager to
conduct its activities.
Sustainability
In order to review and assess the material factors relevant to FCT’s business activities, the Manager from time to time
proactively engages with various stakeholders, including employees, vendors and tenants, and the investment community,
to gather feedback on the sustainability matters which have significant impact to the business and operations of FCT
and its stakeholders. Please refer to the Sustainability Report on pages 84 to 124 of this Annual Report, which sets out
information on the Manager’s arrangements to identify and engage with its material stakeholder groups and to manage
its relationships with such groups, and the Manager’s strategy and key areas of focus in relation to the management
of stakeholder relationships during FY22.
Code of Business Conduct
The conduct of employees of the Manager is governed by the FPL Code of Business Conduct. The FPL Group’s
business practices are governed by integrity, honesty, fair dealing and compliance with applicable laws. To guide FPL
Group’s employees across its multi-national network to uphold these values, FPL has established the FPL Code of
Business Conduct to provide clear guidelines on ethics and relationships to safeguard the interests and reputation of
the FPL Group, including the Manager, as well as its stakeholders.
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The Code of Business Conduct covers key aspects such as avoiding conflicts of interest, working with external
stakeholders (including customers, suppliers, business partners, governments and regulatory officials), protecting
company’s assets, social media engagement, data privacy and upholding laws in countries where the FPL Group has
geographical presence in. The Code of Business Conduct also emphasises the importance of upholding FPL’s core
values to build a respectful culture. Employees are encouraged to be respectful to the elements that make people
similar or different from one another, including background, views, experiences, capabilities, values, beliefs, physical
differences, ethnicity and culture, gender, age, thinking styles, preferences and behaviours.
The Code of Business Conduct sets out the policies and procedures dealing with various issues such as conflicts
of interests, the maintenance of records and reports, equal employment opportunities and sexual harassment. It
includes requirements relating to the keeping of accurate and sufficiently detailed accounting records for financial
transactions, internal financial reporting and financial reporting to stakeholders, sets out the standards to which
employees must adhere in their business relationships with third parties and personal business undertakings and
their obligations to the FPL Group, and provides for the need to obtain approval in certain situations where a conflict
of interest may arise. It also covers an employee’s obligations in protecting the FPL Group’s confidential information
and intellectual property and reiterates the FPL Group’s zero tolerance approach to bribery and corruption.
Where applicable/appropriate, the Code of Business Conduct is also made available to other stakeholders such as
the Manager’s agents, suppliers, business associates and customers.
Anti-Money Laundering and Countering the Financing of Terrorism Measures
The Manager has a policy and procedures in place to comply with applicable anti-money laundering, counter-terrorism
financing laws and regulations, including the notice and guidelines issued by the MAS to capital intermediaries on
the prevention of money laundering and countering the financing of terrorism. The Manager’s policy and procedures
include, but are not limited to, risk assessment and mitigation, customer due diligence, reporting of suspicious
transactions, and record keeping. Training on anti-money laundering, counter-terrorism financing laws and regulations
are also conducted for employees, officers and representatives periodically and as and when needed.
Business Continuity Management
FCT has in place a Group Business Continuity Management (“BCM”) Policy which references the requirements of
ISO 22301 management system. The policy sets the directives and guides the Manager in implementing and
maintaining a BCM management programme to protect against, reduce the likelihood of the occurrence of, prepare
for, respond to and recover from disruptions when they arise.
The Manager has in FY21, enhanced its BCM programme which has boosted its resilience and capability in responding,
managing, and recovering from adverse business disruptions and unforeseen catastrophic events. Management has
strengthened its Crisis Management Plan, Business Continuity Plans and Emergency Response Plans to prepare itself
in case of disruptions that may negatively impact on the business of FCT. Under the programme, critical business
functions, key processes, resource requirements and business recovery strategies are identified. Annual tests, exercises
(tabletop or simulated) and drills, simulating different scenarios, will be carried out to assess the effectiveness of the
abovementioned plans. The Manager’s Crisis Management Team and staff are trained periodically, and the plans under
the BCM are updated regularly. The BCM programme ensures FCT stays resilient in the face of a crisis. It is a holistic
approach to minimise adverse business impact and to safeguard FCT’s reputation and business operations.
The Code of Business Conduct, the BCM Policy and the other policies mentioned above, are accessible to all employees
on the FPL Group intranet.
ANNUAL REPORT 2022CORPORATE GOVERNANCE REPORT 156
POLICY ON DEALINGS IN SECURITIES
The Manager has established a dealing policy on securities trading (“Dealing Policy”) setting out the procedure for
dealings in FCT’s securities by its Directors, officers and employees. In compliance with Rule 1207(19) of the SGX-
ST Listing Manual on best practices on dealing in securities, the Group issues reminders to its Directors, officers
and employees on the restrictions in dealings in listed securities of the Group during the period commencing (a)
two weeks prior to the announcement of the interim business updates of the first and third quarters of the financial
year, and (b) one month before the announcement of the half-year and full year results, and ending on the date of
such announcements (the “Prohibition Period”). Directors, officers and employees are also reminded not to trade
in listed securities of FCT at any time while in possession of unpublished price sensitive information and to refrain
from dealing in FCT’s securities on short-term considerations. Pursuant to the SFA, Directors and the CEO are also
required to report their dealings in FCT’s securities within two business days.
Every quarter, each Director, officer and employee is required to complete and submit a declaration form to the
designated compliance officer to report any trades he/she made in Units in the previous quarter and confirm that no
trades were made during the Prohibition Period. A quarterly report will be provided to the ARCC. Any non-compliance
with the Dealing Policy will be reported to the ARCC 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 Units. The Manager has undertaken that it will not deal in Units:
(i)
during the Prohibition Period; or
(ii)
whenever it is in possession of unpublished price sensitive information/material in relation to those securities.
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
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.
Performance Fee
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 of FCT (calculated before
accounting for the Performance Fee in that
financial year) 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.
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.
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Type of Fee
Computation and Form of Payment
Rationale and Purpose
Acquisition Fee
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 as practicable
after completion of the acquisition in the form
of cash and/or Units as the Manager may elect.
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.
Divestment Fee
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.
Note:
Capitalised terms used in this section shall have the same meanings ascribed to them in the Trust Deed.
ANNUAL REPORT 2022CORPORATE GOVERNANCE REPORT 158
SUMMARY OF COMPLIANCE WITH EXPRESS DISCLOSURE REQUIREMENTS IN PRINCIPLES
AND PROVISIONS OF CG CODE
PRINCIPLES AND PROVISIONS OF THE 2018 CODE OF CORPORATE GOVERNANCE
BOARD’S CONDUCT OF AFFAIRS
Provision 1.2
Induction, training and development provided to new and existing Directors
Provision 1.3
Matters requiring Board approval
Provision 1.4
Names of Board Committee members, terms of reference of Board
Committees, any delegation of Board’s authority to make decisions and
a summary of each Board Committee’s activities
Provision 1.5
Number of Board and Board Committee meetings and each individual
Directors’ attendances at such meeting
BOARD COMPOSITION AND GUIDANCE
Provision 2.2
The Board diversity policy and progress made towards implementation
of the policy, including objectives
BOARD MEMBERSHIP
Provision 4.3
Provision 4.4
Provision 4.5
Process for the selection, appointment and re-appointment of Directors
to the Board, including the criteria used to identify and evaluate potential
new Directors and channels used in searching for appropriate candidates
Relationships that independent Directors have with FCT, its related
corporations, its substantial Unitholders or its officers, if any, which may
affect their independence, and the reasons why the Board, having taken
into account the views of the NRC, has determined that such Directors
are still independent
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133 to 134
131 to 133
127 to 133
131
136
130 and
134 to 136
137 to 140
Listed company directorships and principal commitments of each Director,
and where a Director holds a significant number of such directorships
and commitments, the NRC’s and Board’s reasoned assessment of the
ability of the Director to diligently discharge his or her duties
16 to 19 and
137 to 140
BOARD PERFORMANCE
Provision 5.2
How the assessments of the Board, its Board Committees and each Director
have been conducted, including the identity of any external facilitator and
its connection, if any, with the Manager or any of its Directors
141
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PRINCIPLES AND PROVISIONS OF THE 2018 CODE OF CORPORATE GOVERNANCE
PROCEDURES FOR DEVELOPING REMUNERATION POLICIES
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Provision 6.4
Engagement of any remuneration consultants and their independence
142 and 145
DISCLOSURE ON REMUNERATION
Provision 8.1
Policy and criteria for setting remuneration, as well as names, amounts
and breakdown of remuneration of:
141 to 148
Provision 8.2
(a)
each individual Director and the CEO; and
(b)
at least the top five key management personnel (who are not
Directors or the CEO) in bands no wider than S$250,000 and in
aggregate the total remuneration paid to these key management
personnel
Names and remuneration of employees who are substantial shareholders of
the Manager or substantial Unitholders, or are immediate family members
of a Director, the CEO or such a substantial shareholder or substantial
Unitholder, and whose remuneration exceeds S$100,000 during the year,
in bands no wider than S$100,000. The employee’s relationship with the
relevant Director or the CEO or substantial shareholder or substantial
Unitholder should also be stated.
148
Provision 8.3
All forms of remuneration and other payments and benefits, paid by the
Manager and its subsidiaries to Directors and Key Management Personnel
142 to 148
RISK MANAGEMENT AND INTERNAL CONTROLS
Provision 9.2
Board’s assurance from:
150
(a)
(b)
the CEO and the CFO that the financial records have been properly
maintained and the financial statements give a true and fair view
of the REIT’s operations and finances; and
the CEO and other key management personnel who are responsible,
regarding the adequacy and effectiveness of the REIT’s risk
management and internal control systems.
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PRINCIPLES AND PROVISIONS OF THE 2018 CODE OF CORPORATE GOVERNANCE
UNITHOLDER RIGHTS AND ENGAGEMENT
UNITHOLDER RIGHTS AND CONDUCT OF GENERAL MEETINGS
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Provision 11.3
Directors’ attendance at general meetings of Unitholders held during the
financial year
131 and
153 to 154
ENGAGEMENT WITH UNITHOLDERS
Provision 12.1
Steps taken by the Manager to solicit and understand the views of
Unitholders
152 to 154
ENGAGEMENT WITH STAKEHOLDERS
Provision 13.2
The Manager’s strategy and key areas of focus in relation to the management
of stakeholder relationships during the reporting period
152 to 155
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161
Contents
Contents
Overview
Overview
Business
Business
Review
Review
Asset
Asset
Portfolio
Portfolio
Risk
Risk
Management
Management
Sustainability
Sustainability
Corporate
Corporate
Governance
Governance
Financial &
Financial &
Other Information
Other Information
CO N T E N TS
FINANCIAL STATEMENTS
Statement by the Manager
Independent Auditors’ Report
Statements of Financial Position
Statement of Total Return
162 Report of the Trustee
163
164
168
169
170 Distribution Statement
171
Statements of Movements in
Unitholders’ Funds
Portfolio Statement
172
174
Statement of Cash Flows
176 Notes to the Financial Statements
ANNUAL REPORT 2022 162
R E P O RT O F T H E T RU S T E E
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 subsidiaries (collectively, the “Group”) in trust for the holders
(“Unitholders”) of units in the Trust (the “Units”). In accordance with the Securities and Futures Act 2001 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, a third supplemental deed dated 17 December 2015, a fourth supplemental deed dated
19 January 2017 and a fifth supplemental deed dated 24 January 2018) (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 168 to 233, 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
Authorised Signatory
Singapore
15 November 2022
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163
S TAT E M E N T BY T H E M A N AG E R
In the opinion of the directors of Frasers Centrepoint Asset Management Ltd., the accompanying financial statements
set out on pages 168 to 233, comprising the consolidated statement of financial position and consolidated portfolio
statement of the Group and the statement of financial position of the Trust as at 30 September 2022, and the
consolidated statement of total return, consolidated distribution statement, consolidated statement of movements
in unitholders’ funds and consolidated statement of cash flows of the Group and the 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 are drawn up so as to present fairly, in all material respects, the consolidated
financial position and the consolidated portfolio holdings of the Group and the financial position of the Trust as at
30 September 2022, the consolidated total return, consolidated distributable income, consolidated movements in
unitholders’ funds and consolidated cash flows of the Group and the movements in unitholders’ funds of the Trust for
the year then ended, in accordance with the recommendations of Statement of Recommended Accounting Practice
7 Reporting Framework for Investment Funds 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.
Dr Cheong Choong Kong
Director
Singapore
15 November 2022
Low Chee Wah
Director
ANNUAL REPORT 2022
164
I N D E P E N D E N T AU D I TO RS ’ R E P O RT
To the Unitholders
Frasers Centrepoint Trust
(Constituted under a Trust Deed (as amended, restated and supplemented) 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 subsidiaries (the “Group”),
which comprise the consolidated statement of financial position and consolidated portfolio statement of the Group
and the statement of financial position of the Trust as at 30 September 2022, the consolidated statement of total return,
consolidated distribution statement, consolidated statement of movements in unitholders’ funds and consolidated
statement of cash flows of the Group and the 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 168 to 233.
In our opinion, the accompanying consolidated financial statements of the Group and the statement of financial
position and statement of movements in unitholders’ funds of the Trust present fairly, in all material respects, the
consolidated financial position and the consolidated portfolio holdings of the Group and the financial position of the
Trust as at 30 September 2022 and the consolidated total return, consolidated distributable income, consolidated
movements in unitholders’ funds and consolidated cash flows of the Group and the movements in unitholders’ funds
of the Trust for the year ended on that date in accordance with the recommendations of Statement of Recommended
Accounting Practice 7 (“RAP 7”) Reporting Framework for Investment Funds issued by the Institute of Singapore
Chartered Accountants (the “ISCA”).
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.
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I N D E P E N D E N T AU D I TO RS ’ R E P O RT
To the Unitholders
Frasers Centrepoint Trust
(Constituted under a Trust Deed (as amended, restated and supplemented) in the Republic of Singapore)
Valuation of investment properties
(Refer to Portfolio Statement and Note 4 to the financial statements)
Risk
The Group owns retail malls and an office building located all around Singapore that are leased to third parties under
operating leases. As at 30 September 2022, the investment properties, with carrying amount of $5.52 billion, represent
the single largest asset category on the consolidated statement of financial position of the Group.
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. The valuations are
sensitive to key assumptions applied and a change in the assumptions may have a significant impact on the valuations.
Our response
We evaluated the qualifications and competence of the external valuers. We considered the valuation methodologies
used against those applied by other valuers for similar property types. We evaluated the appropriateness of the key
assumptions used in the valuations by comparing them against available industry data, taking into consideration
comparability and market factors. Where the assumptions were outside the expected range, we undertook further
procedures to understand the effect of additional factors taken into account in the valuations.
Our findings
The external valuers are members of generally-recognised professional bodies for valuers and have considered
their own independence in carrying out their work. The valuation methodologies used were in line with generally
accepted market practices and the key assumptions used were generally comparable to available market data. Where
the assumptions were outside the expected range, the additional factors considered by the external valuers were
consistent with other corroborative evidence.
Other information
Frasers Centrepoint Asset Management Ltd., the Manager of the Trust (the “Manager”), is responsible for the other
information contained in the annual report. Other information is defined as all information in the annual report other
than the financial statements and our auditors’ report thereon.
We have obtained all other information prior to the date of this auditors’ report except for the Sustainability Report
and the Statistics of Unitholdings 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.
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 Sustainability Report and the Statistics of Unitholdings, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the Manager and take appropriate actions in
accordance with SSAs.
ANNUAL REPORT 2022 166
I N D E P E N D E N T AU D I TO RS ’ R E P O RT
To the Unitholders
Frasers Centrepoint Trust
(Constituted under a Trust Deed (as amended, restated and supplemented) in the Republic of Singapore)
Responsibilities of the Manager for the financial statements
The Manager is responsible for the preparation and fair presentation of these financial statements in accordance
with the recommendations of RAP 7 issued by the ISCA, and for such internal control as 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 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 Manager either intends to terminate the Group or to cease operations of the Group, or has no
realistic alternative but to do so.
The Manager’s responsibilities 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 controls.
Obtain an understanding of internal controls 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 controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Manager.
Conclude on the appropriateness of the Manager’s use of the going concern basis of accounting 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.
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.
FRASERS CENTREPOINT TRUST 167
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I N D E P E N D E N T AU D I TO RS ’ R E P O RT
To the Unitholders
Frasers Centrepoint Trust
(Constituted under a Trust Deed (as amended, restated and supplemented) in the Republic of Singapore)
We communicate with the Manager regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.
We also provide 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 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 matters. 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 Sarina Lee.
KPMG LLP
Public Accountants and
Chartered Accountants
Singapore
15 November 2022
ANNUAL REPORT 2022 168
S TAT E M E N TS O F F I N A N CI A L P O S I T I O N
As at 30 September 2022
Non-current assets
Investment properties
Fixed assets
Investment in subsidiaries
Investment in associate
Investment in joint ventures
Financial derivatives
Current assets
Financial derivatives
Trade and other receivables
Cash and cash equivalents
Total assets
Current liabilities
Trade and other payables
Financial derivatives
Current portion of security deposits
Interest-bearing borrowings
Provision for taxation
Non-current liabilities
Financial derivatives
Interest-bearing borrowings
Non-current portion of security deposits
Deferred tax liability
Total liabilities
Net assets
Represented by:
Unitholders’ funds
Units in issue (’000)
Note
Group
2022
$’000
2021
$’000
Trust
2022
$’000
2021
$’000
4
5
6
7
9
13
13
10
11
12
13
14
13
14
15
5,516,000
126
–
40,808
312,341
21,740
5,891,015
5,506,500
175
–
46,494
294,399
–
5,847,568
2,460,000
126
1,447,600
44,565
287,366
21,740
4,261,397
2,441,500
175
1,447,600
46,494
287,436
–
4,223,205
3,331
8,857
38,165
50,353
–
8,995
42,234
51,229
3,331
358,944
16,613
378,888
–
463,205
14,661
477,866
5,941,368
5,898,797
4,640,285
4,701,071
70,583
–
45,647
390,668
463
507,361
71,664
1,281
43,160
204,827
1,266
322,198
–
1,419,458
50,472
–
1,469,930
1,855
1,604,089
45,207
6,640
1,657,791
114,204
2,897
19,228
199,951
–
336,280
11,189
457,677
20,165
–
489,031
115,973
1,281
15,155
204,827
–
337,236
1,855
547,731
19,995
–
569,581
1,977,291
1,979,989
825,311
906,817
3,964,077
3,918,808
3,814,974
3,794,254
3,964,077
3,918,808
3,814,974
3,794,254
16
1,702,057
1,699,268
1,702,057
1,699,268
Net asset value / Net tangible
asset per Unit ($)
17
2.33
2.30
2.24
2.23
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
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S TAT E M E N T O F TOTA L R E T U R N
For the financial year ended 30 September 2022
Gross revenue
Property expenses
Net property income
Finance income
Other income
Interest income from joint venture
Finance costs
Asset management fees
Valuation fees
Trustee’s fees
Audit fees
Professional fees
Other charges
Net income
Share of results of associates
Share of results of joint ventures
Impairment loss on investment in associate
Loss from the dilution of interest in associate
Net change in fair value of investment properties
Gain from fair valuation of derivatives
Net gain on step acquisition
Expenses in relation to acquisitions of subsidiaries and associate
Net foreign exchange loss
Gain on disposal of investment properties
Total return before tax
Taxation
Total return for the year
Earnings per Unit (cents)
Basic
Diluted
Note
Group
2022
$’000
2021
$’000
18
19
20
21
22
7
9
7
7
4
8
8
23
24
356,931
(98,334)
258,597
43
–
–
(46,832)
(32,608)
(164)
(953)
(246)
(1,531)
(743)
175,563
(1,096)
24,599
–
(1,143)
2,744
528
–
–
(8)
–
201,187
6,092
207,279
341,149
(94,582)
246,567
119
341
801
(45,938)
(32,389)
(109)
(1,023)
(240)
(1,684)
(664)
165,781
(1,386)
16,886
(11,976)
–
(3,298)
2,948
11,470
(25,318)
(21)
17,156
172,242
(3,609)
168,633
12.18
12.17
10.10
10.08
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
ANNUAL REPORT 2022 170
D I S T R I B U T I O N S TAT E M E N T
For the financial year ended 30 September 2022
Income available for distribution to Unitholders at beginning of year
Net income
Net tax and other adjustments (Note A)
Distributions from associates
Distributions from joint ventures
Distributable income for the year
Income available for distribution to Unitholders
Distributions to Unitholders:
Distribution of 4.372 cents per Unit for period
from 1/4/2020 to 30/9/2020
Distribution of 0.132 cents per Unit for period
from 1/10/2020 to 6/10/2020
Distribution of 5.864 cents per Unit for period
from 7/10/2020 to 31/3/2021
Distribution of 6.089 cents per Unit for period
from 1/4/2021 to 30/9/2021
Distribution of 6.136 cents per Unit for period
from 1/10/2021 to 31/3/2022
Income available for distribution to Unitholders at end of year
Distributions to Unitholders (1), (2)
Distribution per unit for the year (cents) (1), (2)
Note A – Net tax and other adjustments relate to the following items:
– Asset management fees paid/payable in Units
– Amortisation of transaction costs
– Amortisation of lease incentives
– Other items
Net tax and other adjustments
2022
$’000
103,573
175,563
12,234
2,130
19,957
209,884
313,457
–
–
–
103,565
104,414
207,979
105,478
208,190
12.227
6,522
2,439
(1,906)
5,179
12,234
Group
2021
$’000
48,942
165,781
15,784
7,017
16,092
204,674
253,616
48,942
1,478
99,623
–
–
150,043
103,573
204,674
12.085
6,478
3,217
1,582
4,507
15,784
(1) In financial year ended 30 September 2022, FCT had retained $1.7 million of its tax-exempt income available for distribution to Unitholders.
(2) The distribution relating to period from 1 April 2022 to 30 September 2022 will be paid on 29 November 2022.
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
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STATEMENTS OF M OVEMENTS IN UNIT HOL D ERS’ FUN DS
For the financial year ended 30 September 2022
171
Group
Trust
2022
$’000
2021
$’000
2022
$’000
2021
$’000
Net assets at beginning of year
3,918,808
2,538,276
3,794,254
2,462,726
Operations
Total return for the year
Unitholders’ transactions
Creation of Units
– proceeds from equity fund raising
– issued/issuable as satisfaction of asset
management fees
– issued as satisfaction of acquisition and
divestment fees
Issue expenses
Distributions to Unitholders
Net (decrease)/increase in net assets resulting from
207,279
168,633
209,084
121,903
–
1,334,657
–
1,334,657
6,522
6,478
6,522
6,478
–
–
(207,979)
19,884
(3,885)
(150,043)
–
–
(207,979)
19,884
(3,885)
(150,043)
Unitholders’ transactions
(201,457)
1,207,091
(201,457)
1,207,091
Hedging reserve
Net change in the fair value of hedging instruments
used in cash flow hedges pending subsequent
recognition in statement of total return
Related tax
Share of movements in hedging reserve of associate
and joint venture
Net increase in net assets resulting from hedging
reserve
Translation reserve
Net effect of exchange loss arising from
translation of financial statement of associate
Realisation of translation reserve arising from the
dilution of interest in associate
Net effect of exchange loss arising from
translation of financial statements of subsidiaries
Net decrease in net assets resulting from translation
reserve
27,679
–
13,099
40,778
3,017
(295)
3,164
5,886
13,093
–
–
2,534
–
–
13,093
2,534
(1,716)
(1,062)
399
(14)
–
(16)
(1,331)
(1,078)
–
–
–
–
–
–
–
–
Net assets at end of year
3,964,077
3,918,808
3,814,974
3,794,254
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
ANNUAL REPORT 2022 172
P O RT FO L I O S TAT E M E N T
As at 30 September 2022
GROUP
Description
of Property
Term of
Lease
Location
Existing Use
Carrying Value
Percentage of
Net Assets
2022
$’000
2021
$’000
2022
%
2021
%
Investment properties in Singapore
Causeway Point
Northpoint City
North Wing
Changi City Point
Yishun 10 Retail
Podium
Tampines 1
Tiong Bahru Plaza
Century Square
Hougang Mall
White Sands
Central Plaza
99-year
leasehold from
30 October
1995
99-year
leasehold from
1 April 1990
1 Woodlands
Square
930 Yishun
Avenue 2
60-year
leasehold from
30 April 2009
5 Changi
Business Park
Central 1
99-year
leasehold from
1 April 1990
99-year
leasehold from
1 April 1990
99-year
leasehold from
1 September
1991
99-year
leasehold from
1 September
1992
99-year
leasehold from
1 May 1994
99-year
leasehold from
1 May 1993
99-year
leasehold from
1 September
1991
51 Yishun
Central 1
10 Tampines
Central 1
302 Tiong Bahru
Road
2 Tampines
Central 5
90 Hougang
Avenue 10
1 Pasir Ris
Central Street 3
298 Tiong Bahru
Road
Investment properties, at valuation
Investment in associate (Note 7)
Investment in joint ventures (Note 9)
Other assets and liabilities (net)
Net assets attributable to Unitholders
Commercial
1,323,000
1,312,000
33.4
33.5
Commercial
778,000
771,500
19.6
19.7
Commercial
325,000
325,000
8.2
8.3
Commercial
34,000
33,000
0.9
0.9
Commercial
764,000
762,000
19.3
19.4
Commercial
655,000
654,000
16.5
16.7
Commercial
559,000
574,000
14.1
14.6
Commercial
433,000
432,000
10.9
11.0
Commercial
429,000
428,000
10.8
10.9
Commercial
216,000
215,000
5.5
5.5
5,516,000
5,506,500
139.2
140.5
46,494
40,808
294,399
312,341
5,869,149
5,847,393
(1,905,072) (1,928,585)
3,918,808
3,964,077
1.0
7.9
148.1
(48.1)
100.0
1.2
7.5
149.2
(49.2)
100.0
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
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P O RT FO L I O S TAT E M E N T
As at 30 September 2022
Independent valuations of the investment properties were undertaken by Jones Lang LaSalle Property Consultants
Pte Ltd (“JLL”) and Savills Valuation and Professional Services (S) Pte Ltd (“Savills”) (2021: JLL and Savills). The Manager
believes that these independent valuers possess appropriate professional qualifications and relevant experience in
the location and category of the investment properties being valued. The valuations were performed based on the
following methods:
Description of
Property
Investment properties
Valuer Valuation Method
Valuation
2022
$’000
2021
$’000
Causeway Point
Savills
(2021: JLL)
Capitalisation approach and discounted cash flow analysis (a)
(2021: Capitalisation approach and discounted cash flow
analysis (a))
1,323,000
1,312,000
Northpoint City
North Wing
Savills
(2021: JLL)
Capitalisation approach and discounted cash flow analysis (a)
(2021: Capitalisation approach and discounted cash flow
analysis (a))
778,000
771,500
Changi City Point
Savills
(2021: JLL)
Capitalisation approach and discounted cash flow analysis (a)
(2021: Capitalisation approach and discounted cash flow
analysis (a))
325,000
325,000
Yishun 10 Retail
Podium
Savills
(2021: JLL)
Capitalisation approach, discounted cash flow analysis and
direct comparison method
(2021: Capitalisation approach and discounted cash flow
analysis (a))
34,000
33,000
Tampines 1
JLL
(2021: Savills)
Capitalisation approach and discounted cash flow analysis (a)
(2021: Capitalisation approach and discounted cash flow
analysis (a))
764,000
762,000
Tiong Bahru Plaza
JLL
(2021: Savills)
Capitalisation approach and discounted cash flow analysis (a)
(2021: Capitalisation approach and discounted cash flow
analysis (a))
655,000
654,000
Century Square
JLL
(2021: Savills)
Capitalisation approach and discounted cash flow analysis (a)
(2021: Capitalisation approach and discounted cash flow
analysis (a))
559,000
574,000
Hougang Mall
White Sands
Central Plaza
JLL
(2021: Savills)
Capitalisation approach and discounted cash flow analysis (a)
(2021: Capitalisation approach and discounted cash flow
analysis (a))
433,000
432,000
JLL
(2021: Savills)
Capitalisation approach and discounted cash flow analysis (a)
(2021: Capitalisation approach and discounted cash flow
analysis (a))
429,000
428,000
JLL
(2021: Savills)
Capitalisation approach and discounted cash flow analysis (a)
(2021: Capitalisation approach and discounted cash flow
analysis (a))
216,000
215,000
(a) Direct comparison method was used as a cross-check.
The net changes in fair values of these investment properties have been recognised in the Statement 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 rental income, recognised in the Statement of Total Return of the Group for the financial year ended
30 September 2022 amounted to $17,560,000 (2021: $15,218,000) (Note 18).
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
ANNUAL REPORT 2022 174
S TAT E M E N T O F CA S H F LO W S
For the financial year ended 30 September 2022
Operating activities
Total return before tax
Adjustments for:
Net (written back)/allowance for doubtful receivables
Finance costs
Asset management, divestment and acquisition fees paid/payable in Units
Finance income
Depreciation of fixed assets
Share of results of associates
Share of results of joint ventures
Impairment loss on investment in associate
Loss from the dilution of interest in associate
Net change in fair value of investment properties
Gain on disposal of investment properties
Net gain on step acquisition
Gain from fair valuation of derivatives
Amortisation of lease incentives
Fixed assets written off
Operating income before working capital changes
Changes in working capital:
Trade and other receivables
Trade and other payables
Security deposits
Cash flows generated from operating activities
Income tax paid
Net cash flows generated from operating activities
Investing activities
Gross proceeds from disposal of investment properties
Distributions received from associates
Distributions received from joint ventures
Adjustment of consideration paid for investment in joint venture
Finance income received
Capital expenditure on investment properties
Acquisition of fixed assets
Acquisition of subsidiaries, net of cash
Cash flows generated from/(used in) investing activities
Note
19
21
5
7
9
7
4
8
4
7
9
9
5
8
Group
2022
$’000
2021
$’000
201,187
172,242
(656)
46,832
6,522
(43)
49
1,096
(24,599)
–
1,143
(2,744)
–
–
(528)
(1,906)
–
226,353
794
36
7,752
234,935
(1,351)
233,584
–
2,130
19,686
70
43
(5,901)
–
–
16,028
601
45,938
26,362
(119)
58
1,386
(16,886)
11,976
–
3,298
(17,156)
(11,470)
(2,948)
1,582
37
214,901
8,729
(6,820)
(7,350)
209,460
(11,015)
198,445
438,000
7,017
16,092
–
119
(5,785)
(41)
(925,950)
(470,548)
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
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S TAT E M E N T O F CA S H F LO W S
For the financial year ended 30 September 2022
Financing activities
Proceeds from issue of new units
Payment of issue expenses
Proceeds from borrowings
Repayment of borrowings
Interest expense paid
Distributions to Unitholders
Payment of transaction costs
Cash flows (used in)/generated from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Significant Non-Cash Transactions
Note
Group
2022
$’000
2021
$’000
–
–
387,000
(387,000)
(43,712)
(207,979)
(1,990)
(253,681)
(4,069)
42,234
38,165
1,334,657
(3,885)
636,620
(1,487,240)
(41,960)
(150,043)
(2,395)
285,754
13,651
28,583
42,234
14
14
14
14
11
During the financial year, 2,906,185 (2021: 2,745,397) Units were issued and issuable in satisfaction of asset management
fees payable in Units, amounting to a value of $6,522,000 (2021: $6,478,000).
On 27 November 2020, 8,231,488 Units were issued in satisfaction of the acquisition fee of $19,344,000 in connection
with the acquisition of approximately 63.11% of the total issued share capital of AsiaRetail Fund Limited (“ARF”)
and 231,729 Units were issued in satisfaction of the divestment fee of $540,000 in connection with the disposal of
Bedok Point.
The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
ANNUAL REPORT 2022 176
The following notes form an integral part of the financial statements.
The financial statements were authorised for issue by the Manager and the Trustee on 15 November 2022.
1. GENERAL
Frasers Centrepoint Trust (the “Trust” or “FCT”) 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 subsidiaries (collectively, the “Group” and
individually as “Group entities”) and the Group’s interest in equity-accounted investees in trust for the holders
(“Unitholders”) of units in the Trust (the “Units”).
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 subsidiaries is set out in Note 6.
For financial reporting purposes, the Trust is regarded as a subsidiary of Frasers Property Limited, a
Singapore-domiciled company. The ultimate holding company is TCC Assets Limited, which is incorporated
in the British Virgin Islands.
The Group has entered into several service agreements in relation to management of the Group and its
property operations. The fee structures of these services are as follows:
1.1
Property management fees
Under the property management agreements, the fees charged for all properties within the portfolio, excluding
Central Plaza, are 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, otherwise payable to the Property Manager
and/or third party agents.
For Central Plaza, property management fees are charged based on 3.0% per annum of the net property
income of the property.
The property management fees are payable monthly in arrears.
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1. GENERAL (CONT’D)
1.2 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 any Special Purpose Vehicles of the Group; 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 of the Group (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.
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 2022, the Manager has opted to receive 20%
(2021: 20%) of the asset management fees in the form of Units with the balance in cash. The portion of the base
management fees is payable on a quarterly basis in arrears and the portion of the performance management
fees is payable on an annually 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 acquisitions or disposals of properties or investments.
1.3
Trustee’s fees
Pursuant to the Trust Deed, the Trustee’s fees payable by the Trust 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. The Trustee’s fees payable by the sub-trusts shall not exceed 0.0135% per annum of the
respective proportionate share of the value of Deposited Property, subject to a minimum of $6,000 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.
BASIS OF PREPARATION
2.1 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 Investment Funds 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 Financial Reporting Standards in Singapore (“FRSs”).
The financial statements have been prepared on the historical cost basis except as otherwise described in
the notes below.
These financial statements are presented in Singapore dollars, which is the Trust’s functional currency. All financial
information presented in Singapore dollars have been rounded to the nearest thousand, unless otherwise stated.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 178
2.
BASIS OF PREPARATION (CONT’D)
2.1 Basis of preparation (cont’d)
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. Actual results may differ from these estimates.
The estimates and associated assumptions are based on historical experience and relevant factors, including
expectation of further events that are believed to be reasonable under the circumstances and are reviewed on
an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are
revised and in any future periods affected.
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 notes:
(i)
Note 3.1(i) – Business combinations;
(ii)
Note 7 – Investment in associate; and
(iii) Note 9 – Investment in joint ventures.
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 Note 4 – Valuation of investment properties.
2.2 Changes in accounting policies
New and amended standards adopted by the Group
The Group adopted Amendments to FRS 116 COVID-19-Related Rent Concessions beyond 30 June 2021
which became effective in the current financial year.
The Group’s adoption of this amendment to FRS did not have a material effect on its financial statements.
3.
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied by the Group entities consistently to all the periods
presented in these financial statements, except as explained in Note 2.2, which addresses changes in accounting
policies arising from the adoption of new standards.
3.1 Basis of consolidation
(i)
Business combinations
The Group accounts for business combinations using the acquisition method when the acquired set of
activities and assets meets the definition of a business and control is transferred to the Group. In determining
whether a particular set of activities and assets is a business, the Group assesses whether the set of assets
and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set
has the ability to produce outputs.
The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an
acquired set of activities and assets is not a business. The optional concentration test is met if substantially all
of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar
identifiable assets.
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3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.1 Basis of consolidation (cont’d)
(i)
Business combinations (cont’d)
The Group measures goodwill at the date of acquisition as:
•
•
•
the fair value of the consideration transferred; plus
the recognised amount of any non-controlling interest (“NCI”) in the acquiree; plus
if the business combination is achieved in stages, the fair value of the pre-existing equity interest in
the acquiree,
over the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.
Any goodwill that arises is tested annually for impairment.
When the excess is negative, a bargain purchase gain is recognised immediately in the statement of total return.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships.
Such amounts are generally recognised in the statement of total return.
Any contingent consideration payable is recognised at fair value at the date of acquisition and included in the
consideration transferred. If the contingent consideration that meets the definition of a financial instrument is
classified as equity, it is not remeasured and settlement is accounted for within unitholders’ funds. Otherwise,
other contingent consideration is remeasured at fair value at each reporting date and subsequent changes to
the fair value of the contingent consideration are recognised in the statement of total return.
NCI (if any) that are present ownership interests and entitle their holders to a proportionate share of the
acquiree’s net assets in the event of liquidation are measured either at fair value or at the NCI’s proportionate
share of the recognised amounts of the acquiree’s identifiable net assets, at the date of acquisition. The
measurement basis taken is elected on a transaction-by-transaction basis. All other NCI are measured at
acquisition-date fair value, unless another measurement basis is required by FRSs.
Costs related to the acquisition, other than those associated with the issue of debt or equity investments, that
the Group incurs in connection with a business combination are expensed as incurred.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity
transactions.
(ii)
Subsidiaries
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.
The accounting policies of subsidiaries have been changed when necessary to align them with the policies
adopted by the Group. Losses applicable to the NCI in a subsidiary are allocated to the NCI even if doing so
causes the NCI to have a deficit balance.
In the Trust’s statement of financial position, investment in subsidiary is accounted for at cost less any
accumulated impairment losses.
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and
any related NCI and other components of equity. Any resulting gain or loss is recognised in the statement of
total return. Any interest retained in the former subsidiary is measured at fair value when control is lost.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 180
3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.1 Basis of consolidation (cont’d)
(iii)
Investments in associate and joint ventures (equity-accounted investees)
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.
Investments in associate and joint ventures are accounted for using the equity method. They are recognised
initially at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial
statements include the Group’s share of the profit or loss and other comprehensive income (“OCI”) of equity-
accounted investees, after adjustments to align the accounting policies with those of the Group, from the date that
significant influence or joint control commences until the date that significant influence or joint control ceases.
When the Group’s share of losses exceeds its investment in equity-accounted investee, the carrying amount
of the investment, together with any long-term interests that form part thereof, is reduced to zero, and the
recognition of further losses is discontinued except to the extent that the Group has an obligation to fund the
investee’s operations or has made payments on behalf of the investee.
The financial statements of the associate and joint ventures are prepared as the same reporting date as the
Trust. 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 associate are carried at cost less
accumulated impairment losses.
A list of the associate and joint ventures is shown in Notes 7 and 9, respectively.
(iv)
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from
transactions with equity-accounted investees are eliminated against the investment to the extent of the Group’s
interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the
extent that there is no evidence of impairment.
(v)
Property acquisitions and business combinations
Where property is acquired, via corporate acquisitions or otherwise, management considers the substance of
the assets and activities of the acquired entity in determining whether the acquisition represents the acquisition
of a business or the acquisition of an asset. The Group accounts for an acquisition as a business combination
where an integrated set of activities is acquired in addition to the property. More specifically, consideration
is made of the extent to which significant processes are acquired and, in particular, the extent of services
provided by the subsidiary.
When the acquisition does not represent a business, it is accounted for as an acquisition of a group of assets
and liabilities. The cost of the acquisition is allocated to the assets and liabilities acquired based upon their
relative fair values, and no goodwill or deferred tax is recognised.
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3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.2
Earnings per unit
The Group presents basic and diluted earnings per unit data for its units. Basic earnings per unit is calculated
by dividing the total return attributable to Unitholders of the Group by the weighted-average number of units
outstanding during the year. Diluted earnings per unit is determined by adjusting the total return attributable to
Unitholders and the weighted-average number of units outstanding, for the effects of all dilutive potential units.
3.3
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 1.1.
(ii)
Asset management fees
Asset management fees are recognised on an accrual basis based on the applicable formula stipulated in Note 1.2.
(iii)
Trustee’s fees
Trustee’s fees are recognised on an accrual basis based on the applicable formula stipulated in Note 1.3.
3.4
Financial instruments
(i)
Recognition and initial measurement
Non-derivative financial assets and financial liabilities
Trade receivables are initially recognised when they are originated. All other financial assets and financial
liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability
is initially measured at fair value plus, for an item not at fair value through profit or loss (“FVTPL”), transaction
costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing
component is initially measured at the transaction price.
(ii)
Classification and subsequent measurement
Non-derivative financial assets
On initial recognition, a financial asset is classified as measured at amortised cost.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business
model for managing financial assets, in which case all affected financial assets are reclassified on the first day
of the first reporting period following the change in the business model.
Financial assets at amortised cost
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated
as at FVTPL:
•
•
it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 182
3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.4
Financial instruments (cont’d)
(ii)
Classification and subsequent measurement (cont’d)
Financial assets: Business model assessment
The Group makes an assessment of the objective of the business model in which a financial asset is held at
a portfolio level because this best reflects the way the business is managed and information is provided to
management. The information considered includes:
•
•
•
•
the stated policies and objectives for the portfolio and the operation of those policies in practice. These
include whether management’s strategy focuses on earning contractual interest income, maintaining a
particular interest rate profile, matching the duration of the financial assets to the duration of any related
liabilities or expected cash outflows or realising cash flows through the sale of the assets;
how the performance of the portfolio is evaluated and reported to the Group’s management;
the risks that affect the performance of the business model (and the financial assets held within that
business model) and how those risks are managed; and
the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales
and expectations about future sales activity.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered
sales for this purpose, consistent with the Group’s continuing recognition of the assets.
Non-derivative financial assets: Assessment whether contractual cash flows are solely payments of
principal and interest
For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial
recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated
with the principal amount outstanding during a particular period of time and for other basic lending risks and
costs (e.g. liquidity risk and administrative costs), as well as a profit margin.
In assessing whether the contractual cash flows are solely payments of principal and interest, the Group
considers the contractual terms of the instrument. This includes assessing whether the financial asset contains
a contractual term that could change the timing or amount of contractual cash flows such that it would not
meet this condition. In making this assessment, the Group considers:
•
•
•
•
contingent events that would change the amount or timing of cash flows;
terms that may adjust the contractual coupon rate, including variable rate features;
prepayment and extension features; and
terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse features).
A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment
amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding,
which may include reasonable additional compensation for early termination of the contract. Additionally,
for a financial asset acquired at a significant discount or premium to its contractual par amount, a feature
that permits or requires prepayment at an amount that substantially represents the contractual par amount
plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation
for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is
insignificant at initial recognition.
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3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.4
Financial instruments (cont’d)
(ii)
Classification and subsequent measurement (cont’d)
Non-derivative financial assets: Subsequent measurement and gains and losses
Financial assets at amortised cost
These assets are subsequently measured at amortised cost using the effective interest method. The amortised
cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are
recognised in the statement of total return. Any gain or loss on derecognition is recognised in the statement
of total return.
Non-derivative financial liabilities: Classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortised cost. Directly attributable transaction costs are
recognised in the statement of total return as incurred.
Other financial liabilities are initially measured at fair value less directly attributable transaction costs. They are
subsequently measured at amortised cost using the effective interest method. Interest expense and foreign
exchange gains and losses are recognised in the statement of total return.
Interest rate benchmark reform
When the basis for determining the contractual cash flows of a financial asset or financial liability measured at
amortised cost changed as a result of interest rate benchmark reform, the Group updated the effective interest
rate of the financial asset or financial liability to reflect the change that is required by the reform. No immediate
gain or loss is recognised. A change in the basis for determining the contractual cash flows is required by
interest rate benchmark reform if the following conditions are met:
•
•
the change is necessary as a direct consequence of the reform; and
the new basis for determining the contractual cash flows is economically equivalent to the previous
basis – i.e. the basis immediately before the change.
When changes were made to a financial asset or financial liability in addition to changes to the basis for determining
the contractual cash flows required by interest rate benchmark reform, the Group first updated the effective interest
rate of the financial asset or financial liability to reflect the change that is required by interest rate benchmark
reform. After that, the Group applied the policies on accounting for modifications to the additional changes.
(iii) Derecognition
Financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially
all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither
transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the
financial asset.
The Group enters into transactions whereby it transfers assets recognised in its statements of financial position
but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the
transferred assets are not derecognised.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 184
3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.4
Financial instruments (cont’d)
(iii) Derecognition (cont’d)
Financial liabilities
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or
expire. The Group also derecognises a financial liability when its terms are modified and the cash flows of the
modified liability are substantially different, in which case a new financial liability based on the modified terms
is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the
consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in the statement
of total return.
(iv) Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statements of financial
position when, and only when, the Group currently has a legally enforceable right to set off the amounts and it
intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
(v)
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and short-term deposits with maturities of three months
or less from the date of acquisition that are subject to an insignificant risk of changes in their fair value, and are
used by the Group in the management of its short-term commitments.
(vi) Derivative financial instruments and hedge accounting
The Group holds derivative financial instruments to hedge its interest rate risk exposures. Embedded derivatives
are separated from the host contract and accounted for separately if the host contract is not a financial asset
and certain criteria are met.
Derivatives are initially measured at fair value and any directly attributable transaction costs are recognised
in the statement of total return as incurred. Subsequent to initial recognition, derivatives are measured at fair
value, and changes therein are generally recognised in the statement of total return.
The Group designates certain derivatives and non-derivative financial instruments as hedging instruments in
qualifying hedging relationships. At inception of designated hedging relationships, the Group documents the
risk management objective and strategy for undertaking the hedge. The Group also documents the economic
relationship between the hedged item and the hedging instrument, including whether the changes in cash flows
of the hedged item and hedging instrument are expected to offset each other.
Cash flow hedges
The Group designates certain derivatives as hedging instruments to hedge the variability in cash flows associated
with highly probable forecast transactions arising from changes in interest rates.
When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the
fair value of the derivative is recognised in unitholders’ funds and accumulated in the hedging reserve. The
effective portion of changes in the fair value of the derivative that is recognised in unitholders’ funds is limited
to the cumulative change in fair value of the hedged item, determined on a present value basis, from inception
of the hedge. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in
the statement of total return.
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3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.4
Financial instruments (cont’d)
(vi) Derivative financial instruments and hedge accounting (cont’d)
Cash flow hedges (cont’d)
If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is
terminated or is exercised, then hedge accounting is discontinued prospectively. When hedge accounting for
cash flow hedges is discontinued, the amount that has been accumulated in the hedging reserve and the cost
of hedging reserve remains in unitholders’ funds until it is reclassified to the statement of total return in the
same period or periods as the hedged expected future cash flows affect the statement of total return.
If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in
the hedging reserve and the cost of hedging reserve are immediately reclassified to the statement of total return.
Hedges directly affected by interest rate benchmark reform
Phase 1 amendments: Prior to interest rate benchmark reform – when there is uncertainty arising from interest
rate benchmark reform
For the purpose of evaluating whether there is an economic relationship between the hedged item(s) and the
hedging instrument(s), the Group assumes that the benchmark interest rate is not altered as a result of interest
rate benchmark reform.
For a cash flow hedge of a forecast transaction, the Group assumes that the benchmark interest rate will not
be altered as a result of interest rate benchmark reform for the purpose of assessing whether the forecast
transaction is highly probable and presents an exposure to variations in cash flows that could ultimately affect
profit or loss. In determining whether a previously designated forecast transaction in a discontinued cash flow
hedge is still expected to occur, the Group assumes that the interest rate benchmark cash flows designated as
a hedge will not be altered as a result of interest rate benchmark reform.
The Group will cease to apply the specific policy for assessing the economic relationship between the hedged
item and the hedging instrument (i) to a hedged item or hedging instrument when the uncertainty arising from
interest rate benchmark reform is no longer present with respect to the timing and the amount of the contractual
cash flows of the respective item or instrument or (ii) when the hedging relationship is discontinued. For its
highly probable assessment of the hedged item, the Group will no longer apply the specific policy when the
uncertainty arising from interest rate benchmark reform about the timing and the amount of the interest rate
benchmark-based future cash flows of the hedged item is no longer present, or when the hedging relationship
is discontinued.
Phase 2 amendments: Replacement of benchmark interest rates – when there is no longer uncertainty arising
from interest rate benchmark reform
When the basis for determining the contractual cash flows of the hedged item or hedging instrument changes
as a result of interest rate benchmark reform and therefore there is no longer uncertainty arising about the cash
flows of the hedged item or the hedging instrument, the Group amends the hedge documentation of that hedging
relationship to reflect the change(s) required by interest rate benchmark reform. A change in the basis for determining
the contractual cash flows is required by interest rate benchmark reform if the following conditions are met:
•
•
the change is necessary as a direct consequence of the reform; and
the new basis for determining the contractual cash flows is economically equivalent to the previous
basis – i.e. the basis immediately before the change.
For this purpose, the hedge designation is amended only to make one or more of the following changes:
•
•
•
designating an alternative benchmark rate as the hedged risk;
updating the description of the hedged item, including the description of the designated portion of the
cash flows or fair value being hedged; or
updating the description of the hedging instrument.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 186
3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.4
Financial instruments (cont’d)
(vi) Derivative financial instruments and hedge accounting (cont’d)
Cash flow hedges (cont’d)
The Group amends the description of the hedging instrument only if the following conditions are met:
•
it makes a change required by interest rate benchmark reform by changing the basis for determining the
contractual cash flows of the hedging instrument or using another approach that is economically equivalent
to changing the basis for determining the contractual cash flows of the original hedging instrument; and
•
the original hedging instrument is not derecognised.
The Group amends the formal hedge documentation by the end of the reporting period during which a change
required by interest rate benchmark reform is made to the hedged risk, hedged item or hedging instrument.
These amendments in the formal hedge documentation do not constitute the discontinuation of the hedging
relationship or the designation of a new hedging relationship.
If changes are made in addition to those changes required by interest rate benchmark reform described above,
then the Group first considers whether those additional changes result in the discontinuation of the hedge
accounting relationship. If the additional changes do not result in the discontinuation of the hedge accounting
relationship, then the Group amends the formal hedge documentation for changes required by interest rate
benchmark reform as mentioned above.
When the interest rate benchmark on which the hedged future cash flows had been based is changed as
required by interest rate benchmark reform, for the purpose of determining whether the hedged future cash
flows are expected to occur, the Group deems that the hedging reserve recognised in OCI for that hedging
relationship is based on the alternative benchmark rate on which the hedged future cash flows will be based.
3.5
Fixed assets
(i)
Recognition and measurement
Items of fixed assets are measured at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset.
If significant parts of an item of fixed asset have different useful lives, they are accounted for as separate items
(major components) of fixed asset.
The gain or loss on disposal of an item of fixed asset is recognised in the statement of total return.
(ii)
Subsequent costs
The cost of replacing a component of an item of fixed asset is recognised in the carrying amount of the item if
it is probable that the future economic benefits embodied within the component will flow to the Group, and its
cost can be measured reliably. The carrying amount of the replaced component is derecognised. The costs of
the day-to-day servicing of fixed asset are recognised in the statement of total return as incurred.
(iii) Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets
are assessed and if a component has a useful life that is different from the remainder of that asset, that component
is depreciated separately.
Depreciation is recognised as an expense in the statement of total return on a straight-line basis over the estimated
useful lives of each component of an item of fixed asset, unless it is included in the carrying amount of another asset.
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3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.5
Fixed assets (cont’d)
(iii) Depreciation (cont’d)
Depreciation is recognised from the date that the fixed assets are installed and are ready for use. The estimated
useful lives for the current and comparative years are 2 years to 10 years.
Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period and
adjusted if appropriate.
3.6
Foreign currency
(i)
Foreign currency transactions
Transactions in foreign currencies are measured and recorded on initial recognition in Singapore dollars, the
functional currency of the Trust and subsidiaries, at exchange rates at the dates of transaction. Monetary assets
and liabilities denominated in foreign currencies at the reporting date are translated at the exchange rate at
that date.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
translated to the functional currency at the exchange rate at the date that the fair value was determined. Non-
monetary items in a foreign currency that are measured in terms of historical cost are translated using the
exchange rate at the date of the transaction. Foreign currency differences arising on translation are generally
recognised in statement of total return. However, foreign currency differences arising from the translation of
the following items are recognised in unitholders’ fund:
•
•
•
an equity investment designated as at fair value through other comprehensive income (“FVOCI”);
a financial liability designated as a hedge of the net investment in a foreign operation to the extent that
the hedge is effective; and
qualifying cash flow hedges to the extent that the hedges are effective.
(ii)
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition,
are translated to Singapore dollars at exchange rates at the reporting date. The income and expenses of foreign
operations are translated to Singapore dollars at exchange rates at the dates of the transactions.
Foreign currency differences are recognised in OCI. However, if the foreign operation is a non wholly-owned
subsidiary, then the relevant proportionate share of the translation difference is allocated to the NCI. When a
foreign operation is disposed of such control, significant influence or joint control is lost, the cumulative amount
in the translation reserve related to that foreign operation is reclassified to statement of total return as part of
the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes
a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to
NCI. When the Group disposes of only part of its investment in an associate or joint venture that includes a
foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative
amount is reclassified to statement of total return.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned
nor likely to occur in the foreseeable future, foreign exchange gains and losses arising from such a monetary
item that are considered to form part of a net investment in a foreign operation are recognised in OCI, and are
presented in the translation reserve in unitholders’ fund.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 188
3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.7
Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration.
As a lessor
At inception or on modification of a contract that contains a lease component, the Group allocates the
consideration in the contract to each lease component on the basis of their relative stand-alone prices.
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an
operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all
of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is
a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain
indicators such as whether the lease is for the major part of the economic life of the asset.
If an arrangement contains lease and non-lease components, then the Group applies FRS 115 to allocate the
consideration in the contract.
The Group recognises lease payments received from investment property under operating leases as income
on a straight-line basis over the lease term as part of ‘revenue’.
3.8
Impairment
(i)
Non-derivative financial assets
The Group recognises loss allowances for expected credit losses (“ECLs”) on financial assets measured at
amortised cost and lease receivables.
Loss allowances of the Group are measured on either of the following bases:
•
•
12-month ECLs: these are ECLs that result from default events that are possible within the 12 months after
the reporting date (or for a shorter period if the expected life of the instrument is less than 12 months); or
Lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a
financial instrument.
Simplified approach
The Group applies the simplified approach to provide for ECLs for all trade receivables (including lease receivables).
The simplified approach requires the loss allowance to be measured at an amount equal to lifetime ECLs.
General approach
The Group applies the general approach to provide for ECLs on all other financial instruments. Under the
general approach, the loss allowance is measured at an amount equal to 12-month ECLs at initial recognition.
At each reporting date, the Group assesses whether the credit risk of a financial instrument has increased
significantly since initial recognition. When credit risk has increased significantly since initial recognition, loss
allowance is measured at an amount equal to lifetime ECLs.
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3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.8
Impairment (cont’d)
(i)
Non-derivative financial assets (cont’d)
When determining whether the credit risk of a financial asset has increased significantly since initial recognition
and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and
available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based
on the Group’s historical experience and informed credit assessment and includes forward-looking information.
If credit risk has not increased significantly since initial recognition or if the credit quality of the financial
instruments improves such that there is no longer a significant increase in credit risk since initial recognition,
loss allowance is measured at an amount equal to 12-month ECLs.
The Group considers a financial asset to be in default when the debtor is unlikely to pay its credit obligations
to the Group in full, without recourse by the Group to actions such as realising security (if any is held), or when
the financial asset is more than 90 days past due.
The maximum period considered when estimating ECLs is the maximum contractual period over which the
Group is exposed to credit risk.
Measurement of ECLs
ECLs are probability-weighted estimates of credit losses. Credit losses are measured at the present value of
all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract
and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the
financial asset.
Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit-impaired.
A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated
future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
•
•
•
•
•
significant financial difficulty of the debtor;
a breach of contract such as a default or being more than 90 days past due;
the restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise;
it is probable that the debtor will enter bankruptcy or other financial reorganisation; or
the disappearance of an active market for a security because of financial difficulties.
Presentation of allowance for ECLs in the statements of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount
of these assets.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is
no realistic prospect of recovery. This is generally the case when the Group determines that the debtor does
not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject
to the write-off. However, financial assets that are written off could still be subject to enforcement activities in
order to comply with the Group’s procedures for recovery of amounts due.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 190
3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.8
Impairment (cont’d)
(ii)
Non-financial assets
The carrying amounts of the Group’s non-financial assets, other than investment properties, are reviewed at
each reporting date to determine whether there is any indication of impairment. If any such indication exists,
then the assets’ recoverable amounts are estimated. An impairment loss is recognised if the carrying amount
of an asset or its cash-generating unit (“CGU”) exceeds its estimated recoverable amount. Impairment losses
are recognised in the statement of total return.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs of
disposal. 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 or CGU. For the purpose of impairment testing, assets that cannot be tested individually
are grouped together into the smallest group of assets that generates cash inflows from continuing use that
are largely independent of the cash inflows of other assets or CGU.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that
the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the
estimates used to determine the 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 or amortisation, if no impairment loss had been recognised.
An impairment loss in respect of an associate or joint venture is measured by comparing the recoverable amount
of the investment with its carrying amount in accordance with the requirements for non-financial assets. An
impairment loss is recognised in the statement of total return. An impairment loss is reversed if there has been
a favourable change in the estimates used to determine the recoverable amount and only to the extent that
the recoverable amount increases.
Goodwill that forms part of the carrying amount of an investment in an associate is not recognised separately,
and therefore is not tested for impairment separately. Instead, the entire amount of the investment in an
associate is tested for impairment as a single asset when there is objective evidence that the investment in an
associate may be impaired.
3.9
Finance income and finance costs
The Group’s finance income and finance costs include:
•
•
•
•
•
interest income;
interest expense;
the foreign currency gain or loss on financial assets and financial liabilities;
hedge ineffectiveness in statement of total return; and
amortisation of transaction costs.
Interest income or expense is recognised using the effective interest method.
The ‘effective interest rate’ is the rate that exactly discounts estimated future cash payments or receipts through
the expected life of the financial instrument to:
•
•
the gross carrying amount of the financial asset; or
the amortised cost of the financial liability.
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3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.9
Finance income and finance costs (cont’d)
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of
the asset (when the asset is not credit-impaired) or to the amortised cost of the liability. However, for financial
assets that have become credit-impaired subsequent to initial recognition, interest income is calculated by
applying the effective interest rate to the amortised cost of the financial asset. If the asset is no longer credit-
impaired, then the calculation of interest income reverts to the gross basis.
Finance costs that are not directly attributable to the acquisition, construction or production of a qualifying
asset are recognised in statement of total return using the effective interest method.
3.10
Investment properties
Investment properties are properties held either to earn rental income or for capital appreciation or for both,
but not for sale in the ordinary course of business, use in production or supply of goods or services or for
administrative purposes. Investment properties are measured at cost on initial recognition and subsequently at
fair value 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 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 statement of total return as a net change
in fair value of the investment properties.
Cost includes expenditure that is directly attributable to the acquisition of the investment property. Any gain
or loss on disposal of an investment property (calculated as the difference between the net proceeds from
disposal and the carrying amount of the item) is recognised in the statement of total return.
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 entities may claim capital
allowances on assets that qualify as plant and machinery under the Singapore Income Tax Act.
3.11 Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability. The
unwinding of the discount is recognised as finance costs.
3.12 Revenue recognition
Gross rental income
Gross rental income is recognised on a straight-line basis over the lease term commencing on the date from
which the lessee is entitled to exercise its right to use the leased asset.
Gross turnover rental income
Contingent rentals, which include gross turnover rental income, are recognised as income in the accounting
period in which it is earned and the amount can be reliably measured.
Car park income
Car park income consists of season and hourly parking income. Season parking income is recognised on a
straight-line basis over the non-cancellable lease term. Hourly parking income is recognised at a point of time
upon the utilisation of car parking facilities.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 192
3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.13 Security deposits and deferred income
Security deposits mainly comprise of rental deposits and utility deposits received from tenants at the Group’s
investment properties. The accounting policy for security deposits as financial liabilities is set out in Note 3.4.
Deferred income relates to the difference between consideration received for security deposits and its fair value
at initial recognition and is credited to the statement of total return as gross rental income on a straight-line
basis over individual lease term.
3.14 Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to transactions with any of the
Group’s other components. All operating segments’ operating results are reviewed regularly by the Board of
Directors of the Manager to make decisions about resources to be allocated to the segment and to assess its
performance, and for which discrete financial information is available.
Segment results that are reported to the Board of Directors of the Manager include items directly attributable
to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly
finance costs and asset management fees.
Segment capital expenditure is the total cost incurred to acquire investment properties and fixed assets.
3.15 Taxation
Tax expense comprises current and deferred tax. Current tax and deferred tax expense are recognised in the
statement of total return except to the extent that it relates to an item recognised directly in unitholders’ funds.
The Group has determined that interest and penalties related to income taxes, including uncertain tax treatments,
do not meet the definition of income taxes, and therefore accounted for them under FRS 37 Provisions, Contingent
Liabilities and Contingent Assets.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates
enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous
years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be
paid or received that reflects uncertainty related to income taxes, if any.
Current tax assets and liabilities are offset only if certain criteria are met.
Deferred tax is not recognised for temporary differences that:
•
•
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit or loss;
temporary differences related to investments in subsidiaries, associates and joint ventures to the extent
that the Group is able to control the timing of the reversal of the temporary difference and it is probable
that they will not reverse in the foreseeable future; and
•
taxable temporary differences arising on the initial recognition of goodwill.
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3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.15 Taxation (cont’d)
The measurement of deferred taxes reflects the tax consequences that would follow the manner in which the
Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. For
investment property that is measured at fair value, the carrying amount of the investment property is presumed
to be recovered through sale, and the Group has not rebutted this presumption. Deferred tax is measured at the
tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that
have been enacted or substantively enacted by the reporting date, and reflects uncertainty related to income
taxes, if any.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different
tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and
liabilities will be realised simultaneously.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences
to the extent that it is probable that future taxable profits will be available against which they can be used. Future
taxable profits are determined based on the reversal of relevant taxable temporary differences. If the amount of
taxable temporary differences is insufficient to recognise a deferred tax asset in full, then future taxable profits,
adjusted for reversals of existing temporary differences, are considered, based on the business plans for individual
subsidiaries in the Group. Deferred tax assets are reviewed at each reporting date and are reduced to the extent
that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the
probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it
has become probable that future taxable profits will be available against which they can be used.
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 and the units are not held through a partnership in Singapore
or Qualifying Unitholders, who are not acting in the capacity of a trustee, the Trustee and the Manager
will make the distributions to such Unitholders without deducting any income tax; and
where the beneficial owners are Qualifying Foreign Non-Individual Investors or Qualifying Non-Resident
Fund or where the Units are held by nominee Unitholders who can demonstrate that the Units are held for
beneficial owners who are Qualifying Foreign Non-Individual Investors or Qualifying Non-Resident Fund,
the Trustee and the Manager will deduct/withhold tax at a reduced rate of 10% from the distributions.
A Qualifying Foreign Non-Individual Investor refers to a non-resident non-individual Unitholder or foreign fund
who:
(i)
does not have any permanent establishment in Singapore (other than a fund manager in Singapore); or
(ii)
carries on any operation through a permanent establishment in Singapore (other than a fund manager in
Singapore), where the funds used by that person to acquire the units in the Trust are not obtained from
that operation.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 194
3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.15 Taxation (cont’d)
Tax transparency (cont’d)
A Qualifying Unitholder is a Unitholder who is:
(i)
an individual (including those who purchased units in the Trust through agent banks or Supplementary
Retirement Scheme (“SRS”) operators which act as a nominee under the CPF Investment Scheme or
the SRS respectively);
(ii)
a company incorporated and resident in Singapore;
(iii)
a Singapore branch of a foreign company;
(iv)
(v)
(vi)
a body of persons (excluding companies or partnerships) incorporated or registered in Singapore,
including charities registered under Charities Act 1994 or established by any written law, town councils,
statutory boards, co-operative societies registered under the Co-operatives Societies Act 1979 or trade
unions registered under the Trade Unions Act 1940;
an international organisation that is exempt from tax on such distributions by reason of an order made
under the International Organisations (Immunities and Privileges) Act 1948; or
real estate investment trust exchange-traded funds (“REIT ETFs”) which have been accorded the tax
transparency treatment.
A Qualifying Non-Resident Fund is a non-resident fund that qualifies for tax exemption under Section 13D, 13U
or 13V of the Income Tax Act 1947 and who:
(i)
does not have a permanent establishment in Singapore (other than a fund manager in Singapore); or
(ii)
carries on an operation through a permanent establishment in Singapore (other than a fund manager in
Singapore), where the funds used by that qualifying fund to acquire units of the Trust are not obtained
from that operation.
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.
3.16 Unitholders’ funds
Unitholders’ funds represent the Unitholders’ residual interest in the Group’s net assets upon termination and
are classified as equity. Incremental costs directly attributable to the issuance of Units are deducted against
unitholders’ funds.
3.17 Government grants
Government grants are recognised when there is reasonable assurance that the grant will be received and
the Group will comply with the conditions associated with the grant. Government grants related to income are
recognised in the statement of total return as ‘Other Income’ on a systematic basis over the periods in which
the entity recognises as expenses the related costs for which the grants are intended to compensate.
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SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.18 New standards and interpretations not adopted
A number of new standards, interpretations and amendments to standards are effective for annual periods
beginning after 1 October 2021 and earlier application is permitted; however, the Group has not early adopted
the new or amended standards and interpretations in preparing these financial statements.
The following new FRSs, interpretations and amendments to FRSs are not expected to have a significant
impact on the Group’s consolidated financial statements and the Trust’s statement of financial position.
•
•
•
•
•
•
•
•
FRS 117 Insurance Contracts and amendments to FRS 117 Insurance Contracts
Property, Plant and Equipment – Proceeds before Intended Use (Amendments to FRS 116)
Onerous Contracts – Costs of Fulfilling a Contract (Amendments to FRS 37)
Classification of Liabilities as Current or Non-current (Amendments to FRS 1)
Annual Improvements to FRSs 2018 – 2020
Disclosure of Accounting Policies (Amendments to FRS 1 and FRS Practice Statement 2)
Definition of Accounting Estimates (Amendments to FRS 8)
Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to FRS 12)
4.
INVESTMENT PROPERTIES
Group
2022
$’000
2021
$’000
Trust
2022
$’000
2021
$’000
At beginning
Acquisition of subsidiaries (Note 8)
Capital expenditure
Disposals
Amortisation of lease incentives
Net change in fair value of investment properties
At end
5,506,500
–
4,850
–
1,906
2,744
5,516,000
2,749,500
3,065,000
6,880
(310,000)
(1,582)
(3,298)
5,506,500
2,441,500
–
3,361
–
1,049
14,090
2,460,000
2,749,500
–
5,660
(310,000)
51
(3,711)
2,441,500
The investment properties owned by the Group are set out in the Portfolio Statement on pages 172 to 173.
On 23 December 2020, the Trust entered into a sale and purchase agreement with a third party for the disposal
of Anchorpoint. The disposal was completed for a consideration of $110 million on 22 March 2021.
On 31 January 2021, YewTee Point was valued at $200 million by Savills Valuation and Professional Services
(S) Pte Ltd and a revaluation surplus of $10 million was recognised. The valuation methods used to derive its
fair value include the Capitalisation Approach and Discounted Cash Flow Analysis, with the Direct Comparison
Method used as a cross-check. On 19 March 2021, the Trust entered into a sale and purchase agreement with
a third party for the disposal of YewTee Point. The disposal was completed for a consideration of $220 million
on 28 May 2021.
Certain investment properties of the Group with an aggregate carrying value of $1,752 million (2021: $2,743 million)
are pledged as securities to banks for banking facilities granted (Note 14).
Direct operating expenses (including repairs and maintenance) arising from rental generating properties are
disclosed on Note 19 to the financial statements.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 196
4.
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
category of the investment properties 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 2022.
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.
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
At 30 September 2022
Group
Non-financial assets
Investment properties
Trust
Non-financial assets
Investment properties
At 30 September 2021
Group
Non-financial assets
Investment properties
Trust
Non-financial assets
Investment properties
–
–
–
–
–
–
–
–
5,516,000
5,516,000
2,460,000
2,460,000
5,506,500
5,506,500
2,441,500
2,441,500
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4.
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):
Description
Group
Investment
properties
Fair value at
30 September
2022
$’000
Valuation
techniques
Key
unobservable
inputs
Range of
unobservable inputs
Relationship of
unobservable
inputs to fair value
5,516,000
(2021: 5,506,500)
Capitalisation
approach
Capitalisation
rate
3.75% – 5.00%
(2021: 3.75% – 5.00%)
Discounted
cash flow
analysis
Discount rate
6.75% – 7.50%
(2021: 6.25% – 7.50%)
Terminal yield
4.00% – 5.25%
(2021: 4.00% – 5.25%)
Direct
comparison
method
Transacted
prices
$2,329 – $4,362 psf (1)
(2021: NA)
The higher the
rates, the lower
the fair value.
The higher the
rates, the lower
the fair value.
The higher the
rates, the lower
the fair value.
The higher the
comparable
values, the higher
the fair value.
(1) The direct comparison method was used in the valuation of Yishun 10 Retail Podium.
The key unobservable inputs correspond to:
•
•
•
discount rate, based on the risk-free rate for 10-year bonds issued by the government of 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.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022
198
5.
FIXED ASSETS
Cost
At beginning
Additions
Disposals/write-offs
At end
Accumulated depreciation
At beginning
Charge for the year
Disposals/write-offs
At end
Carrying amount
At beginning
At end
6.
INVESTMENT IN SUBSIDIARIES
Equipment, furniture and
fittings, and others
Group and Trust
2022
$’000
2021
$’000
316
–
(4)
312
141
49
(4)
186
175
126
466
41
(191)
316
237
58
(154)
141
229
175
Trust
2022
$’000
2021
$’000
Unquoted equity investments, at cost
1,447,600
1,447,600
Details of the significant subsidiaries are as follows:
Name of subsidiary
Place of
incorporation/
business
FCT MTN Pte. Ltd. (1)
Singapore
Principal activity
Provision of treasury
services
FCT Holdings (Sigma) Pte. Ltd. (1)
Singapore
Investment holding
Tiong Bahru Plaza LLP (1), (2)
Singapore
Property investment
White Sands LLP (1), (2)
Singapore
Property investment
Hougang Mall LLP (1), (2)
Singapore
Property investment
Tampines 1 LLP (1), (2)
Singapore
Property investment
Central Plaza LLP (1), (2)
Singapore
Property investment
Century Square LLP (1), (2), (3)
Singapore
Property investment
Effective equity
interest held by
the Trust
2022
%
100
100
100
100
100
100
100
100
2021
%
100
100
100
100
100
100
100
100
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6.
INVESTMENT IN SUBSIDIARIES (CONT’D)
Details of the significant subsidiaries are as follows: (cont’d)
Name of subsidiary
Place of
incorporation/
business
Principal activity
Tiong Bahru Plaza Trust 1 (1)
Singapore
Investment holding
Tiong Bahru Plaza Trust 2 (1), (2)
Singapore
Investment holding
White Sands Trust 1 (1)
Singapore
Investment holding
White Sands Trust 2 (1), (2)
Singapore
Investment holding
Hougang Mall Trust 1 (1)
Singapore
Investment holding
Hougang Mall Trust 2 (1), (2)
Singapore
Investment holding
Tampines 1 Trust 1 (1)
Singapore
Investment holding
Tampines 1 Trust 2 (1), (2)
Singapore
Investment holding
Central Plaza Trust 1 (1)
Singapore
Investment holding
Central Plaza Trust 2 (1), (2)
Singapore
Investment holding
Century Square Trust 1 (1)
Singapore
Investment holding
Century Square Trust 2 (1)
Singapore
Investment holding
The Management Corporation
Strata Title Plan No. 2634 (2)
Singapore
Management and
maintenance of property
AsiaRetail Fund Limited (2), (4)
Bermuda
Investment holding
(1) Audited by KPMG LLP, Singapore.
(2) Indirectly held by FCT.
Effective equity
interest held by
the Trust
2022
%
2021
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
(3) Converted from Century Square Holding Pte Ltd to a limited liability partnership on 27 January 2022.
(4) Formerly known as “PGIM Real Estate AsiaRetail Fund Limited”. The entity is in the process of being liquidated by way of a member’s
voluntary liquidation and the liquidators were appointed on 17 January 2022.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 200
7.
INVESTMENT IN ASSOCIATE
Investment in associate
Allowance for impairment
Details of the associate are as follows:
Name of associate
Group
Trust
2022
$’000
59,543
(18,735)
40,808
2021
$’000
65,229
(18,735)
46,494
2022
$’000
74,584
(30,019)
44,565
2021
$’000
74,584
(28,090)
46,494
Place of
incorporation/
business
Effective equity
interest held by the
Group and Trust
2022
%
2021
%
Hektar Real Estate Investment Trust (1)
Malaysia
30.53
31.15
(1) Audited by BDO, Malaysia.
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.
On 24 December 2021 and 29 December 2021, H-REIT conducted a private placement exercise. Following the
private placement, the Group’s interest in H-REIT decreased from 31.15% to 30.53%. Arising from the dilution
of interest in H-REIT, the Group recognised a loss of $1.14 million, of which a loss of $0.4 million arose from
the realisation of translation reserve.
The Group assesses at each reporting date whether there is any objective evidence that its investment in H-REIT
is impaired. Where there is objective evidence of impairment, the recoverable amount is estimated based on
the higher of its value in use and its fair value less costs to sell. For the financial year ended 30 September
2022, the Group and the Trust provided for an impairment loss of $Nil (2021: $11,976,000) and $1,929,000
(2021: $16,291,000) respectively to write down the carrying amount of the investment in H-REIT to the estimated
recoverable amount.
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 2022, the Group has estimated the results of H-REIT for the quarter
ended 30 September 2022 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 results for H-REIT are equity accounted for at the Group level, net of 10% (2021: 10%) withholding tax
in Malaysia.
The fair value of H-REIT based on published price quotations was $23,620,000 (2021: $26,501,000).
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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 (2)
Non-current assets
Current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Results (3)
Revenue
Expenses
Net change in fair value of investment properties
Tax credit
Loss after taxation
2022
$’000
2021
$’000
367,073
13,017
380,090
21,679
183,102
204,781
394,548
15,617
410,165
24,589
196,401
220,990
2022
$’000
2021
$’000
33,193
(25,337)
(13,931)
956
(5,119)
35,536
(31,055)
(12,489)
81
(7,927)
(2) The “Assets and liabilities” is based on the latest available unaudited management accounts as at 30 June 2022 and 30 June 2021,
respectively.
(3) The “Results” is based on the latest available unaudited management accounts for the six months ended 30 June 2022 and 30 June 2021
respectively and six-month results from the audited financial statements for the years ended 31 December 2021 and 31 December 2020,
respectively.
As at 30 September 2022, the associate’s property portfolio comprises Subang Parade in Selangor, Mahkota
Parade in Melaka, Wetex Parade and Segamat Central in Johor, Central Square and Kulim Central in Kedah.
Group’s interest in associate at beginning of the year
46,494
696,406
2022
$’000
2021
$’000
Group’s share of:
– Loss after taxation
– Other comprehensive income
Total comprehensive income
Reclassification to investment in subsidiaries (Note 8)
Dividends received during the year
Loss from the dilution of interest in associate
Provision for impairment
Translation difference
Group’s interest in associate at end of the year
(1,096)
–
(1,096)
–
(2,130)
(744)
–
(1,716)
40,808
(1,386)
566
(820)
(629,037)
(7,017)
–
(11,976)
(1,062)
46,494
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 202
8.
ACQUISITION OF SUBSIDIARIES
On 27 October 2020, the Group acquired an additional 252,158 shares in the capital of ARF from Frasers Property
Investments (Bermuda) Limited, a related company of the Group for a total consideration of approximately
$1,060.3 million. As a result, the Group’s equity interest in ARF increased from 36.89% to 100%, making it a
wholly-owned subsidiary.
On the same date, ARMF (Mauritius) Limited, a wholly-owned subsidiary of ARF divested 100% of the total
issued share capital of Mallco Pte. Ltd. for a consideration of approximately $39.7 million to Frasers Property
Gold Pte. Ltd., a related company of the Group.
From the date ARF became a subsidiary, ARF contributed revenue of $171.8 million and total return for the period
(excluding net change in fair value of investment properties) of $65.7 million to the Group in the financial year
ended 30 September 2021. If the business combination had taken place at the beginning of the financial year
ended 30 September 2021, ARF’s contribution to the Group’s revenue and total return for the year (excluding
net change in fair value of investment properties) would have been $186.9 million and $69.8 million respectively.
Consideration transferred
The following table summarises the acquisition-date fair value of each major class of consideration transferred:
Cash
Total consideration transferred
Acquisition-related costs
2021
$’000
1,060,318
1,060,318
The Group incurred acquisition-related costs of $25,318,000 on acquisition fee, legal fees and due diligence
costs. These costs had been included in ‘Expenses in relation to acquisitions of subsidiaries and associate’.
Identifiable assets acquired and liabilities assumed
The following table summarises the recognised amounts of assets acquired, and liabilities assumed at the date
of acquisition.
Note
2021
$’000
Investment properties
Cash and cash equivalents
Trade and other receivables
Interest-bearing borrowings
Financial derivatives
Trade and other payables
Security deposits
Provision for taxation
Deferred tax liabilities
Total identifiable net assets
Less: Amounts previously accounted for as investment in associate
Net gain recognised on step acquisition
Consideration paid in cash
Proceeds from disposal of Mallco
Cash and cash equivalents of subsidiaries acquired
Distributions to former shareholders of ARF
Net cash outflow on acquisition of subsidiaries, net of cash and cash equivalents acquired
4
14
15
7
3,065,000
106,363
48,451
(1,406,470)
(1,732)
(42,921)
(52,935)
(10,344)
(4,587)
1,700,825
(629,037)
(11,470)
1,060,318
(39,749)
(106,363)
11,744
925,950
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8.
ACQUISITION OF SUBSIDIARIES (CONT’D)
Net gain recognised on step acquisition
Net gain arising from the acquisition was recognised as follows:
Total consideration transferred
Carrying amount of pre-existing interest in the acquiree
Fair value of identifiable net assets
Net gain recognised on step acquisition
9.
INVESTMENT IN JOINT VENTURES
2021
$’000
1,060,318
629,037
(1,700,825)
11,470
Investment in joint ventures
Allowance for impairment
Details of the joint ventures are as follows:
Name of joint ventures
Changi City Carpark Operations LLP
Sapphire Star Trust
FC Retail Trustee Pte. Ltd.
Group
2022
$’000
2021
$’000
Trust
2022
$’000
2021
$’000
313,473
(1,132)
312,341
295,531
(1,132)
294,399
288,498
(1,132)
287,366
288,568
(1,132)
287,436
Place of
incorporation/
business
Singapore
Singapore
Singapore
Effective equity
interest held by the
Group and Trust
2022
%
43.68
40.00
40.00
2021
%
43.68
40.00
40.00
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 has 40.00% interest in the ownership and voting rights in a joint venture, Sapphire Star Trust (“SST”),
a private trust that owns Waterway Point, a suburban shopping mall located in Punggol. The Group jointly
controls the venture with other partners under the contractual agreement and requires unanimous consent for
all major decisions over the relevant activities.
On 12 September 2022, the Trust entered into a conditional unit sale and purchase agreement with Sekisui
House, Ltd. (the “Vendor”) to acquire 10.00% of the total issued units of SST, comprising 500,001 ordinary
units and 56,904,785 redeemable preference units in SST from the Vendor; and a conditional share sale and
purchase agreement with the Vendor to acquire 10.00% of the issued share capital of FC Retail Trustee Pte.
Ltd., which is the trustee-manager of SST, from the Vendor.
The estimated net total acquisition outlay is approximately $75.0 million, and the transaction is expected to
complete after the date of the audited financial statements. Upon the completion of the transaction, the Group’s
interest in SST will increase from 40.00% to 50.00%.
No disclosure of fair value is made for the joint ventures as they are not quoted on any market.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 204
9.
INVESTMENT IN JOINT VENTURES (CONT’D)
The following summarised financial information relating to a material joint venture has not been adjusted for
the percentage of ownership interest held by the Group.
Assets and liabilities (1)
Non-current assets
Current assets (a)
Total assets
Current liabilities
Non-current liabilities (b)
Total liabilities
Results (2)
Revenue
Expenses (c)
Net change in fair value of investment properties
Tax expense
Profit after taxation
2022
$’000
2021
$’000
1,349,844
46,897
1,396,741
1,304,604
42,276
1,346,880
43,664
579,428
623,092
38,467
580,151
618,618
78,158
(28,231)
10,669
(4,363)
56,233
71,126
(31,125)
(1,127)
(3,237)
35,637
(1) The “Assets and liabilities” is based on the latest available unaudited management accounts as at 30 September 2022 and 30 September
2021, respectively.
(2) The “Results” is based on the latest available unaudited management accounts for the year ended 30 September 2022 and 30 September
2021, respectively.
(a) Includes cash and cash equivalents of $44,791,000 (2021: $39,712,000)
(b) Includes non-current bank borrowings of $571,961,000 (2021: $571,674,000)
(c) Includes:
– depreciation of $7,000 (2021: $9,000)
–
–
finance income $244,000 (2021: $26,000)
finance costs $10,571,000 (2021: $14,075,000)
2022
$’000
2021
$’000
Group’s interest in joint ventures at beginning of the year
294,399
291,007
Group’s share of:
– Profit after taxation
– Other comprehensive income
Total comprehensive income
Adjustment of consideration paid for investment in joint venture
Dividends received during the year
Group’s interest in joint ventures at end of the year
24,599
13,099
37,698
(70)
(19,686)
312,341
16,886
2,598
19,484
–
(16,092)
294,399
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10. TRADE AND OTHER RECEIVABLES
Trade receivables
Allowance for doubtful receivables
Net trade receivables
Deposits
Prepayments
Amounts due from subsidiaries (non-trade)
Amounts due from related parties (non-trade)
Other receivables
2022
$’000
6,232
(154)
6,078
695
175
–
35
1,874
8,857
Group
2021
$’000
7,789
(942)
6,847
724
184
–
20
1,220
8,995
Trust
2022
$’000
2021
$’000
3,215
(111)
3,104
33
14
354,155
33
1,605
358,944
3,800
(751)
3,049
45
16
459,962
–
133
463,205
Trade receivables are recognised at their original invoiced amounts which represent their fair values on initial
recognition.
Non-trade amounts due from subsidiaries and related parties are unsecured, interest-free and repayable on
demand, except for non-trade amounts due from subsidiaries of $Nil (2021: $55,000,000) which bore interest
at Nil% (2021: 1.196%) per annum.
11. CASH AND CASH EQUIVALENTS
Cash at bank and on hand
38,165
42,234
16,613
14,661
Group
2022
$’000
2021
$’000
Trust
2022
$’000
2021
$’000
12. TRADE AND OTHER PAYABLES
Trade payables and accrued operating expenses
Amounts due to related parties
Amounts due to subsidiaries (non-trade)
Interest payable
Other payables
GST payables
Advance rent received
2022
$’000
35,852
20,520
–
7,685
122
64,179
4,997
1,407
70,583
Group
Trust
2021
$’000
37,067
22,539
–
7,004
52
66,662
4,263
739
71,664
2022
$’000
20,212
18,169
72,100
1,098
27
111,606
2,271
327
114,204
2021
$’000
19,940
18,232
74,775
853
15
113,815
1,950
208
115,973
Included in trade payables and accrued operating expenses is an amount due to the Trustee of $240,000
(2021: $240,000).
Included in amounts due to related parties are amounts due to the Manager of $15,047,000 (2021: $14,568,000)
and the Property Manager of $5,266,000 (2021: $7,844,000) respectively. The amounts due to related parties are
unsecured, interest free and payable within the next 3 months.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 206
13. FINANCIAL DERIVATIVES
Derivative assets
Interest rate swaps used for hedging
– Current
– Non-current
Derivative liabilities
Interest rate swaps used for hedging
– Current
– Non-current
Group
Trust
2022
$’000
2021
$’000
2022
$’000
2021
$’000
3,331
21,740
25,071
–
–
–
–
–
–
1,281
1,855
3,136
3,331
21,740
25,071
2,897
11,189
14,086
–
–
–
1,281
1,855
3,136
Financial derivatives as a percentage of net assets
0.63%
0.08%
0.29%
0.08%
The Group has 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 30 September 2022, the total notional amount of the interest rate swaps entered by the Group is $720 million
(2021: $430 million). Under the contracts, the Group pays fixed interest rate in the range of 0.463% to 2.420%
(2021: 0.450% to 1.905%) per annum.
The fair value of the interest rate swaps is determined using the valuation technique as disclosed in Note 26(b).
As at 30 September 2022, where the interest rate swaps are designated as the hedging instruments in qualifying cash
flow hedges, the effective portion of the changes in fair value of the interest rate swaps amounting to $27,679,000
gain (2021: $2,722,000 gain) (net of tax) was recognised in the hedging reserve. There was no ineffectiveness
recognised from the hedge.
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14.
INTEREST-BEARING BORROWINGS
Current liabilities
Bank loan (secured)
Bank loan (unsecured)
Medium Term Notes (unsecured)
Loans from subsidiary (unsecured)
Short term loan (unsecured)
Less: Unamortised transaction costs
Non-current liabilities
Bank loans (secured)
Bank loans (unsecured)
Medium Term Notes (unsecured)
Loans from subsidiary (unsecured)
Less: Unamortised transaction costs
Group
2022
$’000
2021
$’000
Trust
2022
$’000
2021
$’000
–
191,000
200,000
–
–
(332)
390,668
120,000
–
30,000
–
55,000
(173)
204,827
794,000
560,000
70,000
–
(4,542)
1,419,458
834,000
506,000
270,000
–
(5,911)
1,604,089
–
–
–
200,000
–
(49)
199,951
–
389,000
–
70,000
(1,323)
457,677
120,000
–
–
30,000
55,000
(173)
204,827
40,000
239,000
–
270,000
(1,269)
547,731
As at 30 September 2022, secured bank loans and certain bank facilities are secured on the following:
•
•
•
•
a mortgage over Tampines 1 (“T1”), Century Square (“CS”) and White Sands (“WS”) (2021: Changi City Point
(“CCP”), Tiong Bahru Plaza (“TBP”), T1, CS and WS);
an assignment of the rights, benefits, title and interest of the respective entities in, under and arising out
of the insurances effected in respect of T1, CS and WS (2021: CCP, TBP, T1, CS and WS);
an assignment and charge of the rights, benefits, title and interest of the respective entities 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 T1,
CS and WS (2021: CCP, TBP, T1, CS and WS); and
a first fixed and floating charge over all present and future assets of the respective entities in connection
with T1, CS and WS (2021: CCP, TBP, T1, CS and WS).
Undrawn Revolving Credit Facilities as of 30 September 2022 amounted to $616.9 million (2021: $736.9 million).
Medium Term Notes (unsecured) Programme
On 7 May 2009, the Group through its subsidiary, FCT MTN Pte Ltd (“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 was 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.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 208
14.
INTEREST-BEARING BORROWINGS (CONT’D)
As at 30 September 2022, the aggregate balance of the Notes issued by the Group under the FCT MTN Programme
amounted to $70 million (2021: $100 million), consisting of:
(i)
(ii)
$Nil (2021: $30 million) Fixed Rate Notes which matured in June 2022 and bore a fixed interest rate of
2.645% per annum payable semi-annually in arrear; and
$70 million (2021: $70 million) Fixed Rate Notes which mature in November 2024 and bear a fixed interest
rate of 2.770% per annum payable semi-annually in arrears.
Multicurrency Debt (unsecured) Issuance Programme
On 8 February 2017, the Group established a $3 billion Multicurrency Debt Issuance Programme (“Debt Issuance
Programme”). Under the Debt Issuance Programme, the Issuers may, subject to compliance with all relevant laws,
regulations and directives from time to time, issue notes (the “Notes”) and perpetual securities (the “Perpetual
Securities”, and together with the Notes the “Securities”) in Singapore dollars or any other currency as may be
agreed between the relevant dealers of the Programme and the Issuers.
Each series or tranche of Notes may be issued in various amounts and tenors, and may bear interest at fixed,
floating, hybrid or variable rates as may be agreed between the relevant dealers of the Debt Issuance Programme
and the relevant Issuer or may not bear interest. The Notes and the coupons of all series shall constitute direct,
unconditional, unsubordinated and unsecured obligations of the relevant Issuer and shall at all times rank 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 the relevant Issuer.
As at 30 September 2022, $200 million (2021: $200 million) Fixed Rate Notes which mature in May 2023 and bear a
fixed interest rate of 3.200% per annum payable semi-annually in arrears has been issued under this programme.
Terms and debt repayment schedule
2022
Bank loans
Medium Term Notes
Loans from subsidiary
2021
Bank loans
Medium Term Notes
Loans from subsidiary
Short term loan
Year of
maturity
Group
Face
value
$’000
Carrying
value
$’000
Trust
Face
value
$’000
Carrying
value
$’000
2023 – 2027
2023 – 2024
2023 – 2024
1,545,000
270,000
–
1,815,000
1,540,222
269,904
–
1,810,126
2022 – 2026
2022 – 2024
2022 – 2024
2022
1,460,000
300,000
–
55,000
1,815,000
1,454,193
299,792
–
54,931
1,808,916
389,000
–
270,000
659,000
399,000
–
300,000
55,000
754,000
387,724
–
269,904
657,628
397,835
–
299,792
54,931
752,558
FRASERS CENTREPOINT TRUSTNOTES TO THE FINANCIAL STATEMENTS30 September 2022 Contents
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209
14.
INTEREST-BEARING BORROWINGS (CONT’D)
Reconciliation of movements of liabilities to cash flows arising from financing activities
Interest-
bearing
borrowings
$’000
Interest
payable
$’000
Liabilities
Derivative
liabilities/
(assets)
$’000
Accrued
transaction
costs
$’000
Group
Balance at 1 October 2020
Changes from financing cash flows
Proceeds from borrowings
Repayment of borrowings
Interest paid
Payment of transaction costs
Total changes from financing cash flows
1,252,308
5,582
7,367
636,620
(1,487,240)
–
(2,395)
(853,015)
–
–
(41,960)
–
(41,960)
–
–
–
–
–
Change in fair value
Other changes
Acquisition of subsidiaries (Note 8)
Interest expense (Note 21)
Amortisation of transaction costs
Total other changes
Balance at 30 September 2021
–
–
(5,963)
1,406,470
–
3,153
1,409,623
1,808,916
661
42,721
–
43,382
7,004
1,732
–
–
1,732
3,136
1,759
–
–
1,759
1,759
–
–
–
–
–
–
–
Total
$’000
1,265,257
636,620
(1,487,240)
(41,960)
(2,395)
(894,975)
(5,963)
1,410,622
42,721
3,153
1,456,496
1,820,815
Balance at 1 October 2021
Changes from financing cash flows
Proceeds from borrowings
Repayment of borrowings
Interest expense paid
Payment of transaction costs
Total changes from financing cash flows
Change in fair value
Other changes
Interest expense (Note 21)
Amortisation of transaction costs (Note 21)
Total other changes
Balance at 30 September 2022
1,808,916
7,004
3,136
1,759
1,820,815
387,000
(387,000)
–
(1,229)
(1,229)
–
–
(43,712)
–
(43,712)
–
–
–
–
–
–
–
–
(761)
(761)
387,000
(387,000)
(43,712)
(1,990)
(45,702)
–
–
(28,207)
–
(28,207)
–
2,439
2,439
1,810,126
44,393
–
44,393
7,685
–
–
–
(25,071)
–
–
–
998
44,393
2,439
46,832
1,793,738
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 210
15. DEFERRED TAX LIABILITY
At
1 October
2021
$’000
Acquisition
of
subsidiaries
(Note 8)
$’000
Recognised
in the
statement of
total return
(Note 23)
$’000
Recognised
in hedging
reserve
$’000
At
30 September
2022
$’000
Group
Investment properties
6,640
–
(6,640)
–
–
At
1 October
2020
$’000
Acquisition
of
subsidiaries
(Note 8)
$’000
Recognised
in the
statement of
total return
(Note 23)
$’000
Recognised
in hedging
reserve
$’000
At
30 September
2021
$’000
–
–
–
4,882
(295)
4,587
1,758
–
1,758
–
295
295
6,640
–
6,640
Group
Investment properties
Interest rate swaps
16. UNITS IN ISSUE
Units in issue
At beginning
Issue of Units
– private placement and preferential offering
– issued as satisfaction of asset management fees
– issued as satisfaction of acquisition and divestment fee
At end
Units to be issued
– asset management fees payable in Units
Total issued and issuable Units at end
Group and Trust
2022
No. of Units
’000
2021
No. of Units
’000
1,699,268
1,119,447
–
2,789
–
1,702,057
569,321
2,037
8,463
1,699,268
1,708
1,703,765
1,591
1,700,859
FRASERS CENTREPOINT TRUSTNOTES TO THE FINANCIAL STATEMENTS30 September 2022 Contents
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211
16. UNITS IN ISSUE (CONT’D)
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.
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.
17. NET ASSET VALUE / NET TANGIBLE ASSET PER UNIT
Group
Trust
2022
2021
2022
2021
Net asset value / Net tangible asset per Unit is
based on:
Net assets/Net tangible assets ($’000)
3,964,077
3,918,808
3,814,974
3,794,254
Total issued and issuable Units (‘000) (Note 16)
1,703,765
1,700,859
1,703,765
1,700,859
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 212
18. GROSS REVENUE
Gross rental income
Gross turnover rental income
Carpark income
Others
Gross rental income
2022
$’000
325,626
17,560
6,167
7,578
356,931
Group
2021
$’000
311,447
15,218
5,120
9,364
341,149
In financial year ended 30 September 2021, the Group had granted rental relief to a number of its tenants in
light of challenges arising from COVID-19. Each rental relief request had been reviewed and considered on a
case-by-case basis.
19. PROPERTY EXPENSES
Property tax
Maintenance and utilities
Property management fees
Net (written back)/allowance for doubtful receivables
Bad debts recovered
Depreciation of fixed assets
Fixed assets written off
Others (1)
2022
$’000
33,430
27,537
13,763
(656)
(3)
49
–
24,214
98,334
Group
2021
$’000
32,028
27,106
13,241
601
–
58
37
21,511
94,582
(1) Mainly relates to marketing expenses and reimbursement of staff costs paid/payable to the Property Manager.
20. OTHER INCOME
Other income of the Group include the following:
Government grant income
Government grant expense
Group
2021
$’000
4,819
(4,819)
2022
$’000
–
–
FRASERS CENTREPOINT TRUSTNOTES TO THE FINANCIAL STATEMENTS30 September 2022 Contents
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213
21. FINANCE COSTS
Interest expense
Amortisation of transaction costs
22. ASSET MANAGEMENT FEES
2022
$’000
44,393
2,439
46,832
Group
2021
$’000
42,721
3,217
45,938
Asset management fees comprise $18,479,000 (2021: $18,898,000) of base fee and $14,129,000
(2021: $13,491,000) of performance fee computed in accordance with the fee structure as disclosed in
Note 1.2 to the financial statements.
An aggregate of 2,906,185 (2021: 2,745,397) units were issued or are issuable to the Manager as satisfaction of
the asset management fees payable for the financial year ended 30 September 2022.
23. TAXATION
Current tax expense
Current year
(Over)/Under provision in prior years
Deferred tax expense
Origination and reversal of temporary differences
Over provision in prior years
Total taxation
Reconciliation of effective tax
Total return before tax
Income tax using Singapore tax rate of 17% (2021: 17%)
Effects of different tax rates in foreign jurisdictions
Expenses not deductible
Income not subject to tax
Reversal of temporary differences
Tax transparency
Over provision in prior years
2022
$’000
906
(358)
548
(6,640)
–
(6,640)
Group
2021
$’000
1,835
16
1,851
1,849
(91)
1,758
(6,092)
3,609
201,187
172,242
34,202
9
2,499
(4,879)
(6,640)
(30,925)
(358)
(6,092)
29,282
(193)
8,405
(2,950)
–
(30,860)
(75)
3,609
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 214
24. EARNINGS PER UNIT
(i)
Basic earnings per Unit
The calculation of basic earnings per Unit is based on the weighted average number of Units during the year
and total return for the year.
Total return for the year ($’000)
Group
2022
2021
207,279
168,633
Weighted average number of Units in issue (’000)
1,701,468
1,670,234
(ii)
Diluted earnings per Unit
In calculating diluted earnings per Unit, the total return for the year and weighted average number of Units
outstanding are adjusted for the effect of all dilutive potential units, as set out below:
Total return for the year ($’000)
Weighted average number of Units in issue in arriving at
basic earnings per Unit (‘000)
Effect of Units to be issued as payment of asset
management fees in Units (‘000)
Weighted average number of Units in issue (diluted) (’000)
Group
2022
2021
207,279
168,633
1,701,468
1,670,234
2,298
1,703,766
2,157
1,672,391
25. 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:
Related Corporations
Property management fees, project management fee, service fees and
reimbursement of expenses paid/payable to the Property Manager (1)
Acquisition fees paid in units to the Manager
Divestment fees paid to the Manager
Reimbursement of expenses paid/payable to the Manager
Adjustment of consideration paid for investment in joint venture from a related
company of the Manager
Reimbursement of expenses/capital expenditure paid/payable to related
companies of the Manager
Recovery of expenses paid on behalf of related companies of the Manager
Income from related companies of the Manager
Purchase of services from a related company of the Manager
Reimbursement of carpark income received on behalf of a related company of
the Manager
Net carpark expenses paid/payable to the Property Manager
(1) In accordance with service agreements in relation to management of the Trust and its property operations.
Group
2022
$’000
2021
$’000
36,041
–
–
122
(70)
210
(140)
(356)
418
1,830
–
35,485
19,344
2,190
22
–
1,058
(250)
(266)
201
1,714
2
FRASERS CENTREPOINT TRUSTNOTES TO THE FINANCIAL STATEMENTS30 September 2022 Contents
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25. SIGNIFICANT RELATED PARTY TRANSACTIONS (CONT’D)
Joint Ventures
Interest income received/receivable from a Joint Venture
Car park expenses paid/payable to a Joint Venture
26. FAIR VALUE OF ASSETS AND LIABILITIES
(a)
Assets and liabilities measured at fair value
Group
At 30 September 2022
Financial assets
Interest rate swaps
At 30 September 2021
Financial liabilities
Interest rate swaps
Trust
At 30 September 2022
Financial assets
Interest rate swaps
Financial liabilities
Interest rate swaps
At 30 September 2021
Financial liabilities
Interest rate swaps
Group
2021
$’000
(801)
35
2022
$’000
–
40
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
–
–
–
–
–
25,071
3,136
25,071
14,086
3,136
–
–
–
–
–
25,071
3,136
25,071
14,086
3,136
During the financial years ended 30 September 2022 and 30 September 2021, 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 reporting date into swap models. The models incorporate various inputs including the credit
quality of counterparties and interest rate curves.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 216
26. 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 reporting date:
Group
Financial liabilities
Interest-bearing borrowings (non-current)
Security deposits (non-current)
Trust
Financial liabilities
Interest-bearing borrowings (non-current)
Security deposits (non-current)
2022
2021
Carrying
amount
$’000
Fair value
$’000
Carrying
amount
$’000
Fair value
$’000
1,419,458
50,472
1,469,930
1,414,883
46,809
1,461,692
1,604,089
45,207
1,649,296
1,628,431
44,178
1,672,609
457,677
20,165
477,842
453,598
18,775
472,373
547,731
19,995
567,726
555,362
19,527
574,889
(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, trade and other payables, current portion of security deposits
and current portion of interest-bearing borrowings) 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 reporting date.
27. 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 50.0% of the fund’s deposited property before 1 January 2022 and on
or after 1 January 2022, should not exceed 45.0% of the fund’s deposited property. The aggregate leverage of
a property fund may exceed 45.0% of the fund’s deposited property (up to a maximum of 50.0%) only if the
property fund has a minimum adjusted interest coverage ratio of 2.5 times after taking into account the interest
payment obligations arising from the new borrowings.
As at 30 September 2022, the Group’s Aggregate Leverage stood at 33.0% (2021: 33.3%) of its deposited
property, which is within the limit set by the Property Fund Guidelines and externally imposed capital
requirements. The Trust has affirmed its corporate ratings of “BBB” from S&P Global Ratings and “Baa2” from
Moody’s Investors Service.
FRASERS CENTREPOINT TRUSTNOTES TO THE FINANCIAL STATEMENTS30 September 2022 Contents
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217
27. 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 security 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.
Trade receivables
The Manager has established an allowance account for doubtful receivables 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
statements of financial position. At the reporting date, approximately 26.2% (2021: 31.1%) of the Group’s
trade receivables were due from 5 tenants who are reputable companies located in Singapore.
The Group uses an allowance matrix to measure the ECLs of trade receivables from individual tenants,
which comprise a very large number of tenants.
Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing
through successive stages of delinquency to write-off based on actual credit loss experience over the
last three years.
Trade receivables that are past due but not impaired
The Group and the Trust have trade receivables amounting to $6,078,000 (2021: $6,847,000) and
$3,104,000 (2021: $3,049,000) respectively that are past due at the reporting date but not impaired. The
aging of receivables at the reporting date is as follows:
Trade receivables past due but
not impaired:
Less than 30 days
31 to 60 days
61 to 90 days
More than 90 days
Group
2022
$’000
2021
$’000
Trust
2022
$’000
2021
$’000
5,060
362
132
524
6,078
5,061
1,276
139
371
6,847
2,474
246
127
257
3,104
2,428
421
12
188
3,049
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 218
27. FINANCIAL RISK MANAGEMENT (CONT’D)
(b)
Financial risk management objectives and policies (cont’d)
(i)
Credit risk (cont’d)
Trade receivables (cont’d)
Trade receivables that are impaired
Trade receivables of the Group and the Trust that are impaired at the reporting date and the movements
of the allowance account used to record the impairment are as follows:
Trade receivables
Allowance for doubtful receivables
Movement in allowance account:
At beginning of the year
Acquisition of subsidiaries (Note 8)
Net (written back)/allowance for
doubtful receivables
Write-off of trade receivables
against provision
At end of the year
Group
Trust
2021
$’000
942
(942)
–
209
217
601
(85)
942
2022
$’000
111
(111)
–
751
–
(640)
–
111
2021
$’000
751
(751)
–
209
–
588
(46)
751
2022
$’000
154
(154)
–
942
–
(656)
(132)
154
Trade receivables that are individually determined to be impaired at the reporting date relate to debtors
that are in significant difficulties and have defaulted on payments. The allowance for doubtful receivables
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.
Deposits and other receivables
Impairment on these balances has been measured on the 12-month expected loss basis which reflects
the short maturity and low credit risks of the exposure. The amount of the allowance on these balances
is insignificant.
Amounts due from related parties and subsidiaries
Outstanding balances with related party are unsecured and repayable on demand. ECL is assessed
from estimated cash flows recoverable from the related parties and subsidiaries based on the review of
their financial strength as at the reporting date. There is no allowance for doubtful receivables arising
from these outstanding balances as the ECL is not material.
Cash and cash equivalents
Cash is placed with financial institutions which are regulated. The maximum exposure to credit risk is
represented by the carrying value on the statements of financial position. Impairment on cash and cash
equivalents has been measured on the 12-month expected loss basis and reflects the short maturities
of the exposure. The Group considers that its cash and cash equivalents have low credit risk based
on the external credit ratings of the counterparties. The amount of the allowance on cash and cash
equivalents was negligible.
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219
27. FINANCIAL RISK MANAGEMENT (CONT’D)
(b)
Financial risk management objectives and policies (cont’d)
(ii)
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Group’s financial instruments
will fluctuate because of changes in market interest rates. The Group’s exposure to interest rate risk is
in respect of debt obligations with financial institutions.
The Group manages its interest rate exposure by maintaining a mix of fixed and floating rate debts with
varying tenors. The Group actively reviews its debt portfolio, taking into account the investment holding
period and nature of its assets. To manage this mix in a cost-efficient manner, the Group uses hedging
instruments such as interest rate swaps to minimise its exposure to interest rate volatility.
The Group determines the existence of an economic relationship between the hedging instrument
and hedged item based on the reference interest rates, tenors, repricing dates and maturities and the
notional or par amounts.
The Group assesses whether the derivative designated in each hedge relationship is expected to be
effective in offsetting changes in cash flows of the hedged item using the critical terms method, dollar
offset method or regression method.
Hedge ineffectiveness may occur due to changes in the critical terms of either the interest rate swaps
or borrowings.
Managing interest rate benchmark reform and associated risks
A fundamental reform of major interest rate benchmarks is being undertaken globally, including the
replacement of some interbank offered rates (“IBORs”) with alternative nearly risk-free rates (referred
to as “interest rate benchmark reform”). As at 30 September 2022, the Group has exposures to SOR
on its financial instruments that will be replaced or reformed as part of these market-wide initiatives.
In Singapore, the Steering Committee for SOR and SIBOR transition to SORA (“SC-STS”) together with
the Association of Banks in Singapore (“ABS”) and Singapore Foreign Exchange Market Committee
(“SFEMC”), has identified the Singapore Overnight Rate Average (“SORA”) as the alternative interest rate
benchmark to replace SIBOR and SOR in Singapore. The timeline for SORA to replace SOR is by the
end of June 2023.
The Group monitors and manages the transition to alternative rates. The Group evaluates the extent to
which contracts reference SOR cash flows, whether such contracts will need to be amended as a result
of interest rate benchmark reform and how to manage communication about interest rate benchmark
reform with counterparties.
The Group monitors the progress of transition from SOR to SORA by reviewing the total amounts
of contracts that have yet to transition to SORA and the amounts of such contracts that include an
appropriate fallback clause. The Group considers that a contract is not yet transitioned to SORA when
interest under the contract is indexed to SOR, even if it includes a fallback clause that deals with the
cessation of the existing SOR (referred to as an “unreformed contract”).
Non-derivative financial liabilities
Historically, the Group’s IBOR exposures to non-derivative financial liabilities included secured and
unsecured bank loans indexed to SOR. The Group has modified certain non-derivative financial liabilities
indexed to SOR to reference SORA during the year ended 30 September 2022. In respect of its remaining
SOR exposures, the Group is still in the process of communication with the counterparties and specific
changes have yet to be agreed. The Group expects to complete the transition for all non-derivative
financial liabilities to SORA by June 2023.
The following table shows the total amounts of the unreformed non-derivative financial liabilities as at
30 September 2022 and 30 September 2021. The amounts shown in the table are the carrying amounts.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 220
27. FINANCIAL RISK MANAGEMENT (CONT’D)
(b)
Financial risk management objectives and policies (cont’d)
(ii)
Interest rate risk (cont’d)
Non-derivative financial liabilities (cont’d)
Group
30 September 2022
Interest-bearing borrowings
30 September 2021
Interest-bearing borrowings
Trust
30 September 2022
Interest-bearing borrowings
30 September 2021
Interest-bearing borrowings
Derivatives
SOR
Total amount
of unreformed
contracts
$’000
372,364
1,219,716
118,782
452,766
The Group holds interest rate swaps for risk management purposes which are designated in cash flow hedging
relationships. The interest rate swaps have floating legs that are indexed to SOR. The Group’s derivative
instruments are governed by contracts based on the International Swaps and Derivatives Association
(“ISDA”)’s master agreements. The Group continues to plan the transition with respective counterparties of the
contracts. The Group expects to complete the transition for all derivative instruments to SORA by June 2023.
The following table shows the amounts of unreformed derivative instruments and amounts that include
appropriate fallback language as at 30 September 2022 and 30 September 2021. For interest rate swaps,
the Group used the notional amount of the receive leg of the swap. The Group expects both legs of
interest rate swaps to be reformed simultaneously.
Group
30 September 2022
Interest rate swaps
30 September 2021
Interest rate swaps
Trust
30 September 2022
Interest rate swaps
30 September 2021
Interest rate swaps
SOR
Total amount
of unreformed
contracts
$’000
Amount with
appropriate
fallback clause
$’000
310,000
310,000
430,000
430,000
119,000
119,000
430,000
430,000
FRASERS CENTREPOINT TRUSTNOTES TO THE FINANCIAL STATEMENTS30 September 2022 Contents
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27. FINANCIAL RISK MANAGEMENT (CONT’D)
(b)
Financial risk management objectives and policies (cont’d)
(ii)
Interest rate risk (cont’d)
Hedge accounting
The Group’s hedged items and hedging instruments as at the reporting date are indexed to SORA
and SOR. These benchmark rates are quoted each day and the IBOR cash flows are exchanged with
counterparties as usual.
The Group continues to have other hedged items and hedging instruments used in cash flow hedging
relationships indexed to SOR. These SOR cash flows hedging relationships extend beyond the anticipated
cessation dates of SOR. The Group has evaluated the extent to which its hedging relationships are subject
to uncertainty driven by interest rate benchmark reform as at 30 September 2022. The Group continues
to apply the amendments to FRS 109 issued in December 2019 (Phase 1) to those hedging relationships
directly affected by interest rate benchmark reform.
Hedging relationships impacted by interest rate benchmark reform may experience ineffectiveness
attributable to market participants’ expectations of when the shift from the existing IBOR benchmark
rate to an alternative benchmark interest rate will occur for the relevant hedged items and hedging
instruments. This transition may occur at different times for the hedged item and hedging instrument,
which may lead to hedge ineffectiveness. The Group has measured its hedging instruments indexed
to SOR using available quoted market rates for SOR-based instruments of the same tenor and similar
maturity and has measured the cumulative change in the present value of hedged cash flows attributable
to changes in SOR on a similar basis.
Sensitivity analysis for interest rate risk
It is estimated that every 100 basis points increase in interest rate at the reporting date, with all other
variables held constant, would increase the Group’s total return for the year and Unitholders’ funds by
approximately $Nil (2021: $202,000) and $12,924,000 (2021: $4,294,000) respectively and every 100 basis
points decrease in interest rate, with all other variables held constant, would decrease the Group’s
total return for the year and Unitholders’ funds by approximately $Nil (2021: $203,000) and $13,341,000
(2021: $4,363,000) respectively, 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 reporting date, it is estimated that
every 100 basis points increase in interest rate, with all other variables held constant, would decrease
the Group’s total return for the year by approximately $5,300,000 (2021: $7,950,000) and every 100 basis
points decrease in interest rate, with all other variables held constant, would increase the Group’s total
return for the year by approximately $5,300,000 (2021: $7,950,000), 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.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 222
27. 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
reporting date based on contractual undiscounted payments.
Carrying
amount
$’000
Contractual
cash flows
$’000
Within
1 year
$’000
Cash flows
1 to 5
years
$’000
More than
5 years
$’000
64,179
96,119
1,810,126
1,970,424
64,179
96,119
1,977,774
2,138,072
64,179
45,647
461,060
570,886
–
49,335
1,516,714
1,566,049
–
1,137
–
1,137
14,086
14,900
7,573
7,327
111,606
39,393
657,628
808,627
111,606
39,393
725,751
876,750
111,606
19,228
223,155
353,989
–
19,632
502,596
522,228
–
–
533
–
533
3,136
3,545
3,170
375
–
66,662
88,367
1,808,916
1,963,945
66,662
88,367
1,912,512
2,067,541
66,662
43,160
239,285
349,107
–
44,859
1,589,678
1,634,537
–
348
83,549
83,897
3,136
3,545
3,170
375
113,815
35,150
752,558
901,523
113,815
35,150
789,665
938,630
113,815
15,155
217,843
346,813
–
19,995
571,822
591,817
–
–
–
–
–
As at 30 September 2022
Group
Non-derivative financial liabilities
Trade and other payables *
Security deposits
Interest-bearing borrowings
Trust
Derivative financial liabilities
Financial derivatives
Non-derivative financial liabilities
Trade and other payables *
Security deposits
Interest-bearing borrowings
As at 30 September 2021
Group
Derivative financial liabilities
Financial derivatives
Non-derivative financial liabilities
Trade and other payables *
Security deposits
Interest-bearing borrowings
Trust
Derivative financial liabilities
Financial derivatives
Non-derivative financial liabilities
Trade and other payables *
Security deposits
Interest-bearing borrowings
*
Excludes advance rent received and GST payables.
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28. SEGMENT REPORTING
Business segments
The Group is in the business of investing in retail malls and an office building, which are considered to be the
main business segments.
The Group’s portfolio as of 30 September 2022 comprises: -
1.
2.
3.
4.
5.
6.
7.
8.
9.
Causeway Point;
Northpoint City North Wing;
Yishun 10 Retail Podium;
Changi City Point;
Tampines 1;
Tiong Bahru Plaza;
Century Square;
Hougang Mall;
White Sands; and
10. Central Plaza.
The Manager 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.
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, H-REIT, for which operations are
in Malaysia.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 224
28. SEGMENT REPORTING (CONT’D)
Year ended 30 September 2022
Revenue and expenses
Gross rental income
Others
Gross revenue
Segment net property income
Finance income
Finance costs
Non-property expenses
Net income
Share of results of associate
Share of results of joint ventures
Loss from the dilution of interest in associate
Net change in fair value of investment properties
Gain from fair valuation of derivatives
Net foreign exchange loss
Total return before tax
Taxation
Unallocated taxation
Total return for the year
Northpoint
City North
Wing and
Yishun 10
Retail
Podium
$’000
50,075
4,772
54,847
40,891
Causeway
Point
$’000
80,252
8,755
89,007
68,447
Changi
City
Point
$’000
21,040
2,895
23,935
14,570
Tampines 1
$’000
Tiong
Bahru
Plaza
$’000
Century
Square
$’000
Hougang
Mall
$’000
White
Sands
$’000
Central
Plaza
$’000
Others *
1
Group
$’000
42,926
4,696
47,622
38,735
2,623
41,358
29,968
1,488
31,456
27,318
3,191
30,509
25,901
2,868
28,769
–
14
14
325,626
31,305
356,931
34,416
31,013
21,847
21,141
20,245
206
258,597
9,411
3
9,414
5,821
8,375
6,904
(1,189)
1,057
1,169
(15,423)
214
902
735
–
–
–
–
–
6,102
–
–
–
43
(46,832)
(36,245)
175,563
(1,096)
24,599
(1,143)
2,744
528
(8)
201,187
6,102
(10)
207,279
–
–
*
These net property income contribution arise mainly due to the adjustments made for the divested malls i.e. Bedok Point, Anchorpoint
and YewTee Point.
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28. SEGMENT REPORTING (CONT’D)
Year ended 30 September 2022
Revenue and expenses
Gross rental income
Others
Gross revenue
Segment net property income
Finance income
Finance costs
Non-property expenses
Net income
Share of results of associate
Share of results of joint ventures
Loss from the dilution of interest in associate
Gain from fair valuation of derivatives
Net foreign exchange loss
Total return before tax
Taxation
Unallocated taxation
Total return for the year
and YewTee Point.
Northpoint
City North
Wing and
Yishun 10
Retail
Podium
$’000
50,075
4,772
54,847
40,891
Causeway
Point
$’000
80,252
8,755
89,007
68,447
Changi
City
Point
$’000
21,040
2,895
23,935
14,570
Tampines 1
$’000
Tiong
Bahru
Plaza
$’000
Century
Square
$’000
Hougang
Mall
$’000
White
Sands
$’000
Central
Plaza
$’000
Others *
1
Group
$’000
42,926
4,696
47,622
38,735
2,623
41,358
29,968
1,488
31,456
27,318
3,191
30,509
25,901
2,868
28,769
34,416
31,013
21,847
21,141
20,245
9,411
3
9,414
5,821
–
14
14
325,626
31,305
356,931
206
258,597
Net change in fair value of investment properties
8,375
6,904
(1,189)
1,057
1,169
(15,423)
214
902
735
–
–
–
–
–
6,102
–
–
–
*
These net property income contribution arise mainly due to the adjustments made for the divested malls i.e. Bedok Point, Anchorpoint
43
(46,832)
(36,245)
175,563
(1,096)
24,599
(1,143)
2,744
528
(8)
201,187
6,102
(10)
207,279
–
–
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 226
28. SEGMENT REPORTING (CONT’D)
Year ended 30 September 2021
Revenue and expenses
Gross rental income
Others
Gross revenue
Segment net property income
Finance income
Other income
Interest income from joint venture
Finance costs
Non-property expenses
Net income
Share of results of associates
Share of results of joint ventures
Impairment loss on investment in associate
Net change in fair value of investment properties
Gain from fair valuation of derivatives
Net gain on step acquisition
Expenses in relation to acquisitions of
subsidiaries and associate
Net foreign exchange loss
Gain on disposal of investment properties
Total return before tax
Taxation
Unallocated taxation
Total return for the year
Northpoint
City North
Wing and
Yishun 10
Retail
Podium
$’000
46,707
4,130
50,837
37,743
Causeway
Point
$’000
75,180
7,403
82,583
60,905
Changi
City
Point
$’000
19,808
2,585
22,393
13,435
Tampines 1 **
$’000
Tiong
Bahru
Plaza **
$’000
Century
Square **
$’000
Hougang
Mall **
$’000
White
Sands **
$’000
Central
investment
Plaza **
properties *
$’000
$’000
Group
$’000
Other
37,649
3,815
41,464
34,412
1,856
36,268
27,246
3,705
30,951
24,130
2,509
26,639
23,225
2,223
25,448
10,836
62
10,898
12,254
1,414
13,668
311,447
29,702
341,149
29,796
27,081
24,360
18,255
17,876
7,550
9,566
246,567
1,700
(2,226)
(13,159)
(879)
(50)
1,666
(294)
68
(99)
9,975
–
–
–
(37)
(37)
(3,352)
(21)
(21)
(4)
–
119
341
801
(45,938)
(36,109)
165,781
(1,386)
16,886
(11,976)
(3,298)
2,948
11,470
(25,318)
(21)
17,156
172,242
(3,472)
(137)
168,633
* Other investment properties comprised Bedok Point (divested on 9 November 2020), Anchorpoint (divested on 22 March 2021), and
YewTee Point (divested on 28 May 2021).
** These properties were included in the Group’s portfolio following the acquisition of the balance 63.11% stake in ARF on 27 October 2020.
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Northpoint
City North
Wing and
Yishun 10
Retail
Podium
$’000
46,707
4,130
50,837
37,743
Causeway
Point
$’000
75,180
7,403
82,583
60,905
Changi
City
Point
$’000
19,808
2,585
22,393
13,435
Tampines 1 **
$’000
Tiong
Bahru
Plaza **
$’000
Century
Square **
$’000
Hougang
Mall **
$’000
White
Sands **
$’000
Central
Plaza **
$’000
Other
investment
properties *
$’000
Group
$’000
37,649
3,815
41,464
34,412
1,856
36,268
27,246
3,705
30,951
24,130
2,509
26,639
23,225
2,223
25,448
10,836
62
10,898
12,254
1,414
13,668
311,447
29,702
341,149
29,796
27,081
24,360
18,255
17,876
7,550
9,566
246,567
Net change in fair value of investment properties
1,700
(2,226)
(13,159)
(879)
(50)
1,666
(294)
68
(99)
9,975
–
–
–
(37)
(37)
(3,352)
(21)
(21)
(4)
–
* Other investment properties comprised Bedok Point (divested on 9 November 2020), Anchorpoint (divested on 22 March 2021), and
YewTee Point (divested on 28 May 2021).
** These properties were included in the Group’s portfolio following the acquisition of the balance 63.11% stake in ARF on 27 October 2020.
119
341
801
(45,938)
(36,109)
165,781
(1,386)
16,886
(11,976)
(3,298)
2,948
11,470
(25,318)
(21)
17,156
172,242
(3,472)
(137)
168,633
28. SEGMENT REPORTING (CONT’D)
Year ended 30 September 2021
Revenue and expenses
Gross rental income
Others
Gross revenue
Segment net property income
Finance income
Other income
Interest income from joint venture
Finance costs
Non-property expenses
Net income
Share of results of associates
Share of results of joint ventures
Impairment loss on investment in associate
Gain from fair valuation of derivatives
Net gain on step acquisition
Expenses in relation to acquisitions of
subsidiaries and associate
Net foreign exchange loss
Gain on disposal of investment properties
Total return before tax
Taxation
Unallocated taxation
Total return for the year
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 228
28. SEGMENT REPORTING (CONT’D)
As at 30 September 2022
Assets and liabilities
Segment assets
Investment in associate
Investment in joint ventures
Unallocated assets
– Financial derivatives
– Others
Total assets
Segment liabilities
Unallocated liabilities
– Interest-bearing borrowings
– Others
Total liabilities
Northpoint
City North
Wing and
Yishun 10
Retail
Podium
$’000
Causeway
Point
$’000
Changi
City
Point
$’000
Tampines 1
$’000
Tiong
Bahru
Plaza
$’000
Century
Square
$’000
Hougang
Mall
$’000
White
Sands
$’000
Central
Plaza
$’000
Group
$’000
1,328,583
813,922
327,723
771,053
661,875
561,142
435,643
432,058
217,655
29,923
20,133
11,771
24,153
14,582
15,325
12,032
11,705
3,694
143,318
5,549,654
40,808
312,341
25,071
13,494
5,941,368
1,810,126
23,847
1,977,291
Year ended 30 September 2022
Other segmental information
Net (written back)/allowance for doubtful receivables
Bad debts recovered
Amortisation of lease incentives
Depreciation of fixed assets
Capital expenditure
– Investment properties
(644)
(1)
(565)
22
–
–
(275)
8
2,060
320
5
–
(209)
19
981
(15)
(1)
(611)
–
331
–
(1)
310
–
141
9
–
–
(310)
(11)
(221)
–
–
–
–
–
29
–
–
–
(54)
(656)
(3)
(1,906)
49
113
565
127
212
4,850
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Northpoint
City North
Wing and
Yishun 10
Retail
Podium
$’000
Causeway
Point
$’000
Changi
City
Point
$’000
Tampines 1
$’000
Tiong
Bahru
Plaza
$’000
Century
Square
$’000
Hougang
Mall
$’000
White
Sands
$’000
Central
Plaza
$’000
Group
$’000
1,328,583
813,922
327,723
771,053
661,875
561,142
435,643
432,058
217,655
5,549,654
40,808
312,341
25,071
13,494
5,941,368
29,923
20,133
11,771
24,153
14,582
15,325
12,032
11,705
3,694
143,318
1,810,126
23,847
1,977,291
Net (written back)/allowance for doubtful receivables
(644)
(1)
(565)
22
–
–
8
(275)
2,060
320
5
–
(209)
19
981
(15)
(1)
(611)
–
331
–
(1)
310
–
141
9
–
(310)
–
(11)
–
(221)
–
–
–
29
–
–
–
(54)
–
(656)
(3)
(1,906)
49
113
565
127
212
4,850
28. SEGMENT REPORTING (CONT’D)
As at 30 September 2022
Assets and liabilities
Segment assets
Investment in associate
Investment in joint ventures
Unallocated assets
– Financial derivatives
– Others
Total assets
Segment liabilities
Unallocated liabilities
– Interest-bearing borrowings
– Others
Total liabilities
Year ended 30 September 2022
Other segmental information
Bad debts recovered
Amortisation of lease incentives
Depreciation of fixed assets
Capital expenditure
– Investment properties
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 230
28. SEGMENT REPORTING (CONT’D)
As at 30 September 2021
Assets and liabilities
Segment assets
Investment in associate
Investment in joint ventures
Unallocated assets
– Others
Total assets
Segment liabilities
Unallocated liabilities
– Financial derivatives
– Interest-bearing borrowings
– Others
Total liabilities
Northpoint
City North
Wing and
Yishun 10
Retail
Podium
$’000
Causeway
Point
$’000
Changi
City
Point
$’000
Tampines 1 **
$’000
Tiong
Bahru
Plaza **
$’000
Century
Square **
$’000
Hougang
Mall **
$’000
White
Sands **
$’000
Central
investment
Plaza **
properties *
$’000
$’000
Group
$’000
Other
1,316,081
807,852
328,383
767,702
659,198
579,642
436,383
431,340
219,191
1,430
5,547,202
28,011
17,794
9,429
23,256
14,298
22,589
11,253
11,325
4,120
427
142,502
Year ended 30 September 2021
Other segmental information
Net allowance/(written back) for doubtful receivables
Amortisation of lease incentives
Depreciation of fixed assets
Fixed assets written off
Capital expenditure
– Investment properties
– Fixed assets
707
51
26
–
5,351
7
(110)
(210)
9
–
17
–
(1)
108
18
–
266
30
* Other investment properties comprised Bedok Point (divested on 9 November 2020), Anchorpoint (divested on 22 March 2021), and
YewTee Point (divested on 28 May 2021).
** These properties were included in the Group’s portfolio following the acquisition of the balance 63.11% stake in ARF on 27 October 2020.
116
(195)
–
–
684
–
(18)
216
–
–
267
–
(96)
1,728
–
–
61
–
17
(118)
–
–
176
–
(6)
69
–
–
–
–
(67)
–
–
–
32
–
(8)
–
5
37
26
4
46,494
294,399
10,702
5,898,797
3,136
1,808,916
25,435
1,979,989
601
1,582
58
37
6,880
41
FRASERS CENTREPOINT TRUSTNOTES TO THE FINANCIAL STATEMENTS30 September 2022 Contents
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231
28. SEGMENT REPORTING (CONT’D)
As at 30 September 2021
Assets and liabilities
Segment assets
Investment in associate
Investment in joint ventures
Unallocated assets
– Others
Total assets
Segment liabilities
Unallocated liabilities
– Financial derivatives
– Interest-bearing borrowings
– Others
Total liabilities
Year ended 30 September 2021
Other segmental information
Amortisation of lease incentives
Depreciation of fixed assets
Fixed assets written off
Capital expenditure
– Investment properties
– Fixed assets
Northpoint
City North
Wing and
Yishun 10
Retail
Podium
$’000
Causeway
Point
$’000
Changi
City
Point
$’000
Tampines 1 **
$’000
Tiong
Bahru
Plaza **
$’000
Century
Square **
$’000
Hougang
Mall **
$’000
White
Sands **
$’000
Central
Plaza **
$’000
Other
investment
properties *
$’000
1,316,081
807,852
328,383
767,702
659,198
579,642
436,383
431,340
219,191
1,430
Group
$’000
5,547,202
46,494
294,399
10,702
5,898,797
28,011
17,794
9,429
23,256
14,298
22,589
11,253
11,325
4,120
427
142,502
Net allowance/(written back) for doubtful receivables
707
51
26
–
5,351
7
(110)
(210)
9
–
17
–
(1)
108
18
–
266
30
116
(195)
–
–
684
–
(18)
216
–
–
267
–
(96)
1,728
–
–
61
–
17
(118)
–
–
176
–
(6)
69
–
–
–
–
–
(67)
–
–
32
–
(8)
–
5
37
26
4
* Other investment properties comprised Bedok Point (divested on 9 November 2020), Anchorpoint (divested on 22 March 2021), and
YewTee Point (divested on 28 May 2021).
** These properties were included in the Group’s portfolio following the acquisition of the balance 63.11% stake in ARF on 27 October 2020.
3,136
1,808,916
25,435
1,979,989
601
1,582
58
37
6,880
41
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 232
29. COMMITMENTS
Capital expenditure contracted but not provided for
30. CONTINGENT LIABILITY
Group
Trust
2022
458
2021
1,383
2022
458
2021
931
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.
31. LEASES
Leases as lessor
The Group leases out its investment property consisting of its owned retail malls and an office building (Note 4).
All leases are classified as operating leases from a lessor perspective.
Operating lease
The Group leases out its investment properties. The Group has classified these leases as operating leases,
because they do not transfer substantially all of the risks and rewards incidental to the ownership of the assets.
Portfolio Statement set out information about the operating leases of investment property.
Gross rental income from investment properties recognised by the Group for the year ended 30 September
2022 was $325,626,000 (2021: $311,447,000) (Note 18).
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments
to be received after the reporting date.
Operating leases under FRS 116
Less than one year
One to two years
Two to three years
Three to four years
Four to five years
More than five years
Total
Group
2022
$’000
2021
$’000
283,173
182,730
78,382
24,197
8,832
1,717
579,031
274,730
170,520
79,191
10,438
3,833
2,033
540,745
FRASERS CENTREPOINT TRUSTNOTES TO THE FINANCIAL STATEMENTS30 September 2022 Contents
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233
32. 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
2022
%
0.93
0.57
2021
%
0.93
0.58
–
11.28
(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 Group, 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 weighted average net asset value.
33. SUBSEQUENT EVENTS
On 26 October 2022, the Manager has declared an aggregate distribution of $103,776,000 (or 6.091 cents per
unit) to Unitholders which includes a distribution which was earlier retained by the Manager for the period from
1 October 2021 to 31 March 2022 of $4,797,000 (or 0.282 cents per unit).
On 28 October 2022, the Trust has issued 1,708,096 new units issued at a price of $2.2022 per unit as payment
of the following: -
•
•
20% of the performance fee component of its management fee for the period from 1 October 2021 to
30 June 2022; and
20% of the base fee component and performance fee component of its management fee for the period
from 1 July 2022 to 30 September 2022.
ANNUAL REPORT 2022NOTES TO THE FINANCIAL STATEMENTS30 September 2022 234
S TAT I S T I CS O F U N I T H O L D I N G S
ISSUED AND FULLY PAID-UP UNITS
There were 1,703,765,660 Units (voting rights: one vote per Unit) outstanding as at 28 November 2022. There is only
one class of Units.
The market capitalisation was approximately S$3,459 million based on closing unit price of S$2.03 on 28 November
2022.
TOP TWENTY UNITHOLDERS
AS AT 28 NOVEMBER 2022
As shown in the Register of Unitholders
S/No Unitholders
FRASERS PROPERTY RETAIL TRUST HOLDINGS PTE LTD
CITIBANK NOMINEES SINGAPORE PTE LTD
HSBC (SINGAPORE) NOMINEES PTE LTD
DBS NOMINEES (PRIVATE) LIMITED
DBSN SERVICES PTE. LTD.
RAFFLES NOMINEES (PTE.) LIMITED
FRASERS CENTREPOINT ASSET MANAGEMENT LTD.
BPSS NOMINEES SINGAPORE (PTE.) LTD.
DB NOMINEES (SINGAPORE) PTE LTD
IFAST FINANCIAL PTE LTD
PHILLIP SECURITIES PTE LTD
UNITED OVERSEAS BANK NOMINEES (PRIVATE) LIMITED
CGS-CIMB SECURITIES (SINGAPORE) PTE. LTD.
OCBC NOMINEES SINGAPORE PRIVATE LIMITED
OCBC SECURITIES PRIVATE LIMITED
BNP PARIBAS NOMINEES SINGAPORE PTE LTD
ABN AMRO CLEARING BANK N.V.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18. MORGAN STANLEY ASIA (SINGAPORE) SECURITIES PTE LTD
UOB KAY HIAN PRIVATE LIMITED
19.
20. MAYBANK SECURITIES PTE. LTD.
Total
UNITHOLDINGS OF DIRECTORS OF THE MANAGER
AS AT 21 OCTOBER 2022
Name of Director
Dr Cheong Choong Kong
Mr Ho Chee Hwee Simon(1)
Note:
Number
of Units
% of Total
units in Issue
624,684,552
239,112,319
180,662,216
132,481,702
92,798,364
89,812,626
77,511,310
23,996,110
12,405,718
8,928,896
8,147,513
7,385,613
6,635,334
5,341,189
4,521,038
4,334,059
3,834,693
3,793,128
3,040,733
2,779,892
1,532,207,005
36.66
14.03
10.60
7.78
5.45
5.27
4.55
1.41
0.73
0.52
0.48
0.43
0.39
0.31
0.27
0.25
0.23
0.22
0.18
0.16
89.92
Number of FCT Units held
Direct Interest
Deemed Interest
186,597
–
–
200,000
(1) The section of FCT’s Annual Report 2021 relating to “Unitholdings of Directors of the Manager as at 21 October 2021” on page 224 should be
corrected to similarly show that Mr Ho Chee Hwee Simon had a deemed interest in 200,000 FCT Units, which was disclosed in the issuer’s SGX
announcement dated 29 October 2020 (Announcement Reference: SG201029OTHRVR9V).
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235
S TAT I S T I CS O F U N I T H O L D I N G S
SUBSTANTIAL UNITHOLDERS
AS AT 28 NOVEMBER 2022
Substantial Unitholders
Frasers Property Retail Trust
Holdings Pte. Ltd.
Frasers Property Limited(1)
Thai Beverage Public Company
Limited(2)
International Beverage Holdings
Limited(3)
InterBev Investment Limited(4)
Siriwana Company Limited(5)
Shiny Treasure Holdings Limited(6)
TCC Assets Limited(7)
Charoen Sirivadhanabhakdi(8)
Khunying Wanna Sirivadhanabhakdi(9)
Notes:
Direct Interest
Deemed Interest
Number of
Units
%
Number of
Units
Total Number
of Units Held
%
%
624,684,552
-
36.66
-
-
702,195,862
-
41.21
624,684,552
702,195,862
36.66
41.21
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
702,195,862
41.21
702,195,862
41.21
702,195,862
702,195,862
702,195,862
702,195,862
702,195,862
702,195,862
702,195,862
41.21
41.21
41.21
41.21
41.21
41.21
41.21
702,195,862
702,195,862
702,195,862
702,195,862
702,195,862
702,195,862
702,195,862
41.21
41.21
41.21
41.21
41.21
41.21
41.21
(1) Frasers Property Limited (“FPL”) holds a 100% direct interest in each of Frasers Centrepoint Asset Management Ltd. (“FCAM”) and Frasers Property
Retail Trust Holdings Pte. Ltd. (“FPRTH”); and each of FCAM and FPRTH directly holds units in FCT. FPL therefore has a deemed interest in the units
in FCT in which each of FCAM and FPRTH has an interest, by virtue of Section 4 of the Securities and Futures Act 2001 of Singapore (the “SFA”).
(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 FPL;
– FPL holds a 100% direct interest in each of FCAM and FPRTH; and
– Each of FCAM and FPRTH directly holds units in FCT.
ThaiBev therefore has a deemed interest in the units in FCT in which FPL has an interest, by virtue of the Section 4 of the SFA.
(3) IBHL holds a 100% direct interest in IBIL;
–
IBIL holds a greater than 20% interest in FPL;
– FPL holds a 100% direct interest in each of FCAM and FPRTH; and
– Each of FCAM and FPRTH directly holds units in FCT.
IBHL therefore has a deemed interest in the units in FCT in which FPL has an interest, by virtue of Section 4 of the SFA.
(4) IBIL holds a greater than 20% interest in FPL;
– FPL holds a 100% direct interest in each of FCAM and FPRTH; and
– Each of FCAM and FPRTH directly holds units in FCT.
IBIL therefore has a deemed interest in the units in FCT in which FPL has an interest, by virtue of Section 4 of the SFA.
(5) Siriwana Co., Ltd (“SCL”) holds, directly and indirectly, through its wholly-owned subsidiary, Siriwanan Co., Ltd, a majority interest in ThaiBev;
– ThaiBev holds a 100% direct interest in IBHL;
–
–
IBHL holds a 100% direct interest in IBIL;
IBIL holds a greater than 20% interest in FPL;
– FPL holds a 100% direct interest in each of FCAM and FPRTH; and
– Each of FCAM and FPRTH directly holds units in FCT.
SCL therefore has a deemed interest in the units in FCT in which FPL has an interest, by virtue of Section 4 of the SFA.
(6) Shiny Treasure Holdings Limited (“STHL”) holds a greater than 20% interest in SCL;
– SCL holds, directly and indirectly, a majority interest in ThaiBev;
– ThaiBev holds a 100% direct interest in IBHL;
–
–
IBHL holds a 100% direct interest in IBIL;
IBIL holds a greater than 20% interest in FPL;
– FPL holds a 100% direct interest in each of FCAM and FPRTH; and
– Each of FCAM and FPRTH directly holds units in FCT.
STHL therefore has a deemed interest in the units in FCT in which FPL has an interest, by virtue of Section 4 of the SFA.
ANNUAL REPORT 2022 236
S TAT I S T I CS O F U N I T H O L D I N G S
SUBSTANTIAL UNITHOLDERS (CONT’D)
AS AT 28 NOVEMBER 2022
(7) TCC Assets Limited (“TCCA”) holds a majority interest in FPL;
– FPL holds a 100% direct interest in each of FCAM and FPRTH; and
– Each of FCAM and FPRTH directly holds units in FCT.
TCCA therefore has a deemed interest in the units in FCT in which FPL has an interest, by virtue of Section 4 of the SFA.
(8) 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 FPL;
– FPL holds a 100% direct interest in each of FCAM and FPRTH; and
– Each of FCAM and FPRTH directly holds units in FCT.
Charoen Sirivadhanabhakdi therefore has a deemed interest in the units in FCT in which FPL has an interest, by virtue of Section 4 of the SFA.
(9) 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 FPL;
FPL holds a 100% direct interest in each of FCAM and FPRTH; and
Each of FCAM and FPRTH directly holds units in FCT.
Khunying Wanna Sirivadhanabhakdi therefore has a deemed interest in the units in FCT in which FPL has an interest, by virtue of Section 4 of the
SFA.
DISTRIBUTION OF HOLDINGS
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
LOCATION OF UNITHOLDERS
Country
Singapore
Malaysia
Others
Total
FREE FLOAT
Number of
Unitholders
Percentage of
Unitholders (%)
Number of Units
Percentage of
Units in Issue (%)
96
2,135
9,198
3,118
27
14,574
0.66
14.65
63.11
21.39
0.19
100.00
4,096
1,566,461
42,309,233
114,884,775
1,545,001,095
1,703,765,660
0.00
0.09
2.49
6.74
90.68
100.00
Number of
Unitholders
Percentage of
Unitholders (%)
Number of Units
Percentage of
Units in Issue (%)
14,088
353
133
14,574
96.67
2.42
0.91
100.00
1,697,144,197
4,998,974
1,622,489
1,703,765,660
99.61
0.29
0.10
100.00
Based on information made available to the Manager as at 28 November 2022, approximately 58.8% 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.
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237
A D D I T I O N A L I N FO R M AT I O N
INTERESTED PERSON TRANSACTIONS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2022
The transactions entered into with interested persons during the financial year under review, 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 S$100,000 each) are as follows:
Name of Interested Person
Nature of
relationship
Aggregate value
of all Interested
Person Transactions
during the financial
year under review
(excluding transactions
less than S$100,000
and transactions
conducted under
shareholders’ mandate
pursuant to Rule 920)
S$’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 S$100,000)
S$’000
Frasers Property Limited and its subsidiaries or
associate
– Asset management fees (1)
– Property management, project management and
service fees (1), (2), (3), (4), (5)
– Reimbursement of expenses and
capital expenditure (1), (2), (3), (4), (5)
– Recovery of expenses
– Purchase of services
Fraser & Neave Group and its
subsidiaries or associate
– Rental income and license fee from
lease of space
– Purchase of services (1)
Associates
of controlling
shareholder
of Manager
and
controlling
unitholder
of FCT
HSBC Institutional Trust Services (Singapore) Limited
– Trustee’s and Custodian’s fees
Trustee
(1) Includes FCT’s interest in a joint venture.
32,608
15,580
20,797
140
162
243
255
972
–
–
–
–
–
–
–
–
(2) During the financial year, the property management agreements (“PMA”) with Frasers Property Retail Management Pte. Ltd. (the “Property
Manager”) for Century Square, Tampines 1, White Sands, Tiong Bahru Plaza, Central Plaza and Hougang Mall have been entered for a tenure of five
years. The total fees payable and expenses reimbursable to the Property Manager pursuant to the PMA are estimated at S$108.1 million.
(3) During the financial year, the managing agent agreement with Frasers Property Retail Management Pte. Ltd. (the “Managing Agent”) for The
Management Corporation Strata Title Plan No. 4682 in respect of Waterway Point has been renewed for a tenure of three years. FCT’s share of the
managing agent fees payable and expenses reimbursable to the Managing Agent are estimated at S$0.3 million (40.00% interest).
(4) During the financial year, the managing agent agreement with the Managing Agent for The Management Corporation Strata Title Plan No. 2634 in
respect of Central Plaza and Tiong Bahru Plaza has been renewed for a tenure of three years. The managing agent fees payable and expenses
reimbursable to the Managing Agent are estimated at S$2.1 million.
(5) During the financial year, the managing agent agreement with the Managing Agent for The Management Corporation Strata Title Plan No. 2193
in respect of Century Square has been renewed for a tenure of one year. The managing agent fees payable and expenses reimbursable to the
Managing Agent are estimated at S$1.4 million.
ANNUAL REPORT 2022 238
A D D I T I O N A L I N FO R M AT I O N
INTERESTED PERSON TRANSACTIONS (CONT’D)
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2022
Saved as disclosed above, there were no additional interested person transactions (excluding transactions of less
than S$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 refer to Note 25 Significant Related Party Transactions to 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, restated and supplemented) 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.
Manager’s Asset Management Paid and Payable in Units
A summary of Units issued for payment of the Manager’s management fees in respect of the financial year are as follows:-
Manager’s Base Fee Component
1 October to 31 December 2021
1 January to 31 March 2022
1 April to 30 June 2022
1 July to 30 September 2022
Issue Date
Units Issued
Issue Price
28 January 2022
29 April 2022
29 July 2022
28 October 2022
410,202
379,811
408,075
424,948
$2.2692 (1)
$2.3935 (1)
$2.2550 (1)
$2.2022 (1)
Manager’s Performance Fee Component
1 October 2021 to 30 September 2022
28 October 2022
1,283,148
$2.2022 (2)
(1) Based on the volume weighted average traded price of a Unit in the ordinary course of trading on the SGX-ST for the last 10 business days of the
relevant period in which the management fees were accrued.
(2) Based on the volume weighted average traded price of a Unit in the ordinary course of trading on the SGX-ST for the last 10 business days
immediately preceding the end date of the financial year ended 30 September 2022.
SUBSCRIPTION OF FCT UNITS
For the financial year ended 30 September 2022, an aggregate of 2,788,981 Units were issued and as at 30 September
2022, 1,702,057,564 Units were in issue. On 28 October 2022, the Trust issued 1,708,096 new Units to the Manager
as the base fee component of the Manager’s management fees for the quarter ended 30 September 2022 and the
performance fee component of the Manager’s management fees for the financial year ended 30 September 2022.
NON-DEAL ROADSHOW EXPENSES
No non-deal roadshow expenses (2021: S$Nil) were incurred during the year ended 30 September 2022.
ADDITIONAL DISCLOSURE FOR OPERATING EXPENSES
The total operating expenses incurred by FCT Group and FCT’s proportionate share of the operating expenses
incurred by its joint ventures and associate amounted to S$148.4 million in FY2022, which was equivalent to 3.7% of
FCT Group’s net asset value as at 30 September 2022. The amount included all fees and charges paid to the Manager
and interested parties.
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CO R P O R AT E I N FO R M AT I O N
FRASERS CENTREPOINT TRUST
Trustee’s Registered Address
HSBC Institutional Trust Services (Singapore) Limited
10 Marina Boulevard
Marina Bay Financial Centre Tower 2 #48-01
Singapore 018983
Website and email address:
www.frasersproperty.com/reits/fct
ir@fraserscentrepointtrust.com
SGX Stock code: J69U
Bloomberg Stock code: FCT SP
TRUSTEE’S MAILING ADDRESS
HSBC Institutional Trust Services (Singapore) Limited
10 Marina Boulevard
Marina Bay Financial Centre Tower 2 #45-01
Singapore 018983
AUDITOR
KPMG LLP
12 Marina View, #15-01 Asia Square Tower 2
Singapore 018961
Partner-in-charge: Ms Sarina Lee
(With effect from financial year ended 30 September 2021)
Phone: (65) 6213 3388
Fax: (65) 6225 0984
Website address: www.kpmg.com.sg
BANKERS
BNP Paribas
Citibank, N.A.
Credit Industriel et Commercial
DBS Bank Ltd.
Oversea-Chinese Banking Corporation Limited
Standard Chartered Bank
UNIT REGISTRAR
Boardroom Corporate & Advisory Services Pte. Ltd.
1 Harbourfront Avenue
Keppel Bay Tower, #14-07
Singapore 098632
Phone: (65) 6536 5355
Fax: (65) 6536 1360
THE MANAGER
Registered Address
Frasers Centrepoint Asset Management Ltd.
438 Alexandra Road, #21-00 Alexandra Point
Singapore 119958
Phone: (65) 6276 4882
Fax: (65) 6272 8776
DIRECTORS OF THE MANAGER
Dr Cheong Choong Kong (Chairman)
Non-Executive and Independent Director
Mr Ho Chai Seng
Non-Executive and Independent Director
Mr Ho Chee Hwee Simon
Non-Executive and Non-Independent Director
Ms Koh Choon Fah
Non-Executive and Independent Director
Mr Low Chee Wah
Non-Executive and Non-Independent Director
Ms Soon Su Lin
Non-Executive and Non-Independent Director
AUDIT, RISK AND COMPLIANCE COMMITTEE
Ms Koh Choon Fah (Chairperson)
Dr Cheong Choong Kong
Mr Ho Chai Seng
Mr Ho Chee Hwee Simon
NOMINATING AND REMUNERATION COMMITTEE
Mr Ho Chai Seng (Chairperson)
Dr Cheong Choong Kong
Ms Koh Choon Fah
Mr Ho Chee Hwee Simon
COMPANY SECRETARY
Ms Catherine Yeo
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:
frasersproperty.com/reits/fct