Slide 1: Q1 2020 Operational Update
Q1 2020 Operational Update 12 May 2020
Slide 2: Agenda
Agenda General Overview & Operations Review COVID-19 Impact - Singapore Operations - Hospitality Capital Management Strategic Investments
Slide 3: General Overview
General Overview
Slide 4: Overview – Q1 2020
Overview – Q1 2020 Operating Performance Affected by COVID-19 Global Pandemic • Business segments impacted to varying extents by containment measures to combat the outbreak: Lockdowns Travel restrictions Safe distancing measures Grand Millennium Beijing • Retail and hospitality sectors most im
Slide 5: Global Portfolio Overview
Global Portfolio Overview Recurring Income Assets comprise 64% of Global Portfolio Diversified portfolio provides ‘cushion’ from impact of macroeconomic challenges: Development assets: Lower transaction volumes mitigated by healthy pre-sales in 2018 and 2019, with profit contribution expected prog
Slide 6: Operational Performance Impact
COVID-19 IMPACT Operational Performance Impact Unprecedented Disruption Across All Business Segments PROPERTYDEVELOPMENT Lockdowns across several regions have affected sales and development works: Residential sales affected by showflat closures Construction works affected ASSET MANAGEMENT Retail
Slide 7: Property Development – Singapore
COVID-19 IMPACT Property Development – Singapore Residential Sales & Development Progress Impacted by Circuit Breaker Measures (7 Apr – 1 Jun) Singapore Closure of 6 sales galleries & construction works on development sites affected CDL Homes www.cdlhomes.com.sg • Stepped up digital marketing effort
Slide 8: Property Development – Overseas
COVID-19 IMPACT Property Development – Overseas Sales impacted by lockdowns & restrictions in multiple regions Showflat closures Construction works stalled or slowed from site closures Current Situation Nationwide travel restrictions Lockdown measures have eased China (23 Jan – 8 Apr) Nationwi
Slide 9: Asset Management
COVID-19 IMPACT Asset Management Tenants Impacted by Global Shutdown of Non-essential Businesses Widespread business closures in Singapore till 1 Jun 2020: Over $30MM rental relief & support Approx. 80% of retail tenants (of non-essential services) closed to tenants in Singapore & overseas Singapo
Slide 10: Hotel Operations
COVID-19 IMPACT Hotel Operations Overview of the Group’s Hotel Inventory (as at 31 March 2020) Around 30% of 152 Hotels Worldwide Closed Hotels Total Closed Hotel Count By region: ● New York 4 1 ● Rest of US 14 - ● London 8 4 ● Rest of Europe 22 17 The Biltmore Mayfair ● Middle East* 43 4 ● Singapor
Slide 11: Hotel Operations
COVID-19 IMPACT Hotel Operations Q1 2020 Performance Severely Impacted Global occupancy: 52.1% (▼ 17.9% yoy) Global RevPAR: $90.60 (▼ 27.0% yoy) Rest of Asia Global ARR: $173.90 (▼ 2.0% yoy) 1 hotel closed UK & Europe RevPAR $59.10 (▼ 45.2%) US Occupancy 41.2% (▼ 25.2%) 21 hotels closed 1 hote
Slide 12: Cost Management
COVID-19 IMPACT Cost Management Implementation of Business Optimisation and Cost Reduction Measures Mitigate revenue impact through cost management initiatives: Board Fees & Board of Directors: Voluntary 25% reduction of director’s fees Management Top management: 20% pay cuts Cost Senior perso
Slide 13: Community Initiatives
COVID-19 IMPACT Community Initiatives Supporting Vulnerable Individuals, Families and Communities Affected by COVID-19 Donated $488,000 to Support Vulnerable Individuals, Families & Migrant Workers $400,000 donation to The Invictus Fund Donation made by CDL, together with contributions from entire
Slide 14: Sustainability Performance Highlights
Sustainability Performance Highlights Achieved Over $28MM Energy Savings for 8 Commercial Properties (from 2012 – 2019) Integrated Publication of 13th dedicated 2019 Environmental Sustainability sustainability report Performance Highlights Report Highlights ESG performance outcomes against CDL’s
Slide 15: Capital Management
Capital Management
Slide 16: Capital Management
Capital Management Strong Balance Sheet & Liquidity Position Sufficient Financing Balanced Gearing Liquidity Flexibility Debt Profile % of Net Gearing Total Cash Interest Cover Ratio Fixed Rate Debt 62% $3.3B 6.2x 42% FY 2019: 61% FY 2019: $3.1B FY 2019: 14.0x FY 2019: 40% Net Gearing 1 Undrawn Aver
Slide 17: Capital Management
Capital Management Prudent Capital Management Balanced debt expiry profile Balanced debt currency mix – adopting a natural hedging strategy Average borrowing cost kept low Well-Spread Debt Maturity Profile Others (2.1%) 4,000 38% RMB (5.1%) 213 3,600 100 Bond Bank Loan JPY (5.2%) 518 521 3,200
Slide 18: Strategic Investments
Strategic Investments
Slide 19: Transformational China Platform Deal
Transformational China Platform Deal Acquisition of initial 51.01% stake in Sincere Property Group, an established China Real Estate Developer for RMB 4.39B ($0.88B) – Deal completion expected by Q2 2020 Renegotiated transaction includes a Call Option exercisable in 2022 for another 9.00% stake at
Slide 20: Strategic Increase in IREIT Global Stake
Strategic Increase in IREIT Global Stake Acquisition of Additional 8% Effective Stake in IREIT Global Units for $25.5MM Post-acquisition, CDL holds a 20.9% stake in IREIT Global’s units: Joint acquisition by CDL and Tikehau Capital* at a unit price of $0.49^ in April 2020 Collectively, CDL and T
Slide 21: Singapore Operations – Property Development
Singapore Operations Property Development
Slide 22: Singapore Property Market
Singapore Property Market Property Price Index – Residential (2014 – Q1 2020) All Residential 180 Price decrease (-1.0% QoQ) First quarterly decline after Q1 20: three consecutive quarterly increase 152.1 160 140 120 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 14 14 14
Slide 23: Singapore Property Market
Singapore Property Market • Private residential prices decreased by 1.0% in Q1 2020 as compared to Q4 2019 • Primary home sales remained healthy in Q1 2020 with a total of 2,149 units sold, marking a 12% decline against Q4 2019 Price Sales volume vs Price growth growth% 25,000 20.0% 17.6% 22,197 Pri
Slide 24: Singapore Property Development
Singapore Property Development Residential Units Sold by CDL Q1 2019 Q1 2020 Majority of units sold were mass & Q1 2020 185 185 units sold $516,293 mid-market projects 173 210,292 176,526 (▲7% ) yoy with sales value of $278.1 million $278,099 Lower sales value as: Q1 2020: Majority of units sold w
Slide 25: Singapore Property Development
Singapore Property Development Steady Sales for 2019 Launched Projects Sold 185 units with total sales value of $278MM in Q1 2020^ Continued steady sales for projects launched in 2019 Project Location Tenure Equity Total Units Achieved Stake Units Sold* Average Selling Price (ASP) Orchard Boulev
Slide 26: Singapore Property Development
Singapore Property Development Inventory of Launched Residential Projects – As of 31 Mar 2020 CDL’s Share of Total Unsold Project Equity Stake Total Units Units Sold Unsold Inventory Inventory Cuscaden Residences 25% 75 74 1 0.3 St. Regis Residences 33% 173 161 12 4.0 The Oceanfront @ Sentosa Cove 5
Slide 27: Diversified Residential Launch Pipeline
Diversified Residential Launch Pipeline Singapore Pipeline comprises Mass Market and Mid-Tier segments Launch Pipeline Irwell Bank Road >1,800 units* (Est 580 units) GLS site near upcoming Great World Upcoming Launches MRT station awarded in Penrose (Sims Drive)^ 2H 2020 Jan 2020 Irwell Bank Road TB
Slide 28: Singapore Operations – Asset Management
Singapore Operations Asset Management
Slide 29: Singapore Commercial Market
Singapore Commercial Market Property Price Index – Commercial (2014 – Q1 2020) 150 Q1 20: 132.6 Office Retail (-4.0% QoQ) 140 130 Q1 20: 110.5 120 (-3.1% QoQ) 110 100 90 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 1
Slide 30: Singapore Commercial Market
Singapore Commercial Market Property Rental Index – Commercial (2014 – Q1 2020) 250 Office Retail Q1 20: 168.7 200 (-0.8% QoQ) 150 Q1 20: 98.7 (-2.3% QoQ) 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18 18 1
Slide 31: Singapore Commercial Portfolio
Singapore Commercial Portfolio Strong Committed Occupancy and Positive Rental Reversion for Office & Retail Portfolio (As at 31 March 2020) (1) Office Retail 13 properties 9 properties 90.9% 94.4% Committed Occupancy Committed Occupancy 2.2MM sq ft 733,000 sq ft Net Lettable Area REPUBLIC PLAZA Net
Slide 32: Singapore Commercial Portfolio
Singapore Commercial Portfolio Trade Mix of Office & Retail Space by % of Total Gross Rental Income (As at 31 March 2020)* Office Retail Supermarkets Electrical, Electronics Sporting & Value Store, & Telecommunications, Banking, Insurance & Goods, 3.0% 6.2% 2.1% Technology & ICT, 16.6% Financial Ser
Slide 33: Hospitality
Hospitality
Slide 34: Hotel Operations Performance
Hotel Operations Performance Hotel Occupancy, Average Room Rate, and RevPAR by Region for CDL/M&C Hotels Room Occupancy Average Room Rate RevPAR Q1 Q1 Incr / Q1 Q1 Incr / Q1 Q1 Incr / 2020 2019 (Decr) 2020 2019 * (Decr) 2020 2019 * (Decr) % % % pts $ $ % $ $ % Singapore 54.5 85.6 (31.1) 190.3 170.0
Slide 35: CDL Hospitality Trusts
CDL Hospitality Trusts Trading Performance Q1 2020 Q1 2019 Change $MM $MM % Gross Revenue 33.0 46.3 (28.7) Net Property Income 19.6 33.8 (42.1) (NPI) Gross Revenue and NPI decreased mainly due to: Raffles Maldives Meradhoo • Global COVID-19 fears directly impacting travel demand as well as strict lo
Slide 36: CDL Hospitality Trusts
CDL Hospitality Trusts Trading Performance % Change Country Remarks in RevPAR Experienced 30% occupancy rate decline, despite accommodation demand Singapore (39.8) from foreign workers affected by border closures and returnees serving out Stay-Home Notices in hotels Decline in Angsana Velavaru RevPA
Slide 37: Disclaimer
Disclaimer: This document may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions
Slide 38: www.cdl.com.sg
Artist’s impression Amber Park, Singapore www.cdl.com.sg