Capitaland Ascott Trust · SGX:HMN
Capitaland Ascott Trust — FY2022 Earnings Presentation
45 slides from Capitaland Ascott Trust's earnings presentation, Jan 30, 2023
Slide 1: 2H / FY 2022 Financial Results
CapitaLand Ascott Trust 2H / FY 2022 Financial Results 30 January 2023
Slide 2: Important Notice
Important Notice This presentation may contain forward-looking statements. 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. Representative examples of these factor
Slide 3: Table of Content
Table of Content 01 05 Year in Review Portfolio Valuation 02 06 2H / FY 2022 Financial Capital & Risk Management Highlights 07 03 Looking Ahead Key Market Updates 08 04 Additional Information Portfolio Updates Citadines Citadines CentralCentral Shinjuku Shinjuku Tokyo Tokyo
Slide 4: Year in Review
Year in Review Ascott Orchard Singapore
Slide 5: Largest Lodging Trust in Asia Pacific
Largest Lodging Trust in Asia Pacific Constituent of FTSE EPRA Nareit Global Developed Index The United Kingdom S$8.0b 4 properties China 5 properties Total Assets South Korea Belgium >18,0001 The United States of America 2 properties 2 properties Units 11 properties1 Spain Japan 1 property 30 prope
Slide 6: FY 2022 Performance and Portfolio Highlights
FY 2022 Performance and Portfolio Highlights Building a stronger portfolio, delivering higher distributions Demonstrating Strong recovery from Covid-19 Active portfolio reconstitution financial strength and discipline Continued recovery in Augmenting the portfolio with Maintained BBB- (stable outloo
Slide 7: Commitment to Sustainability & Corporate Governance
Commitment to Sustainability & Corporate Governance Aligned with CapitaLand’s 2030 Sustainability Master Plan Accolades & Awards Global Sector Leader (Listed – Hotel) Ranked 1st Best Annual Report in 2021 and 2022 in 2021 and 2022 Best Investor Relations – Gold Best ESG Materiality Reporting Only ho
Slide 8: 2H / FY 2022 Financial Highlights
2H / FY 2022 Financial Highlights lyf one-north Singapore
Slide 9: Financial Highlights
Financial Highlights Distribution per Stapled Security (DPS) rose 47% y-o-y in 2H 2022, lifting full-year DPS to 5.67 cents 2H 2022 Revenue Gross Profit Total Distribution DPS Adjusted DPS1 69% 80% 54% 47% 99% y-o-y y-o-y y-o-y y-o-y y-o-y to S$353.8 mil to S$164.6 mil to S$113.2 mil to 3.33 cents t
Slide 10: 2H 2022 Gross Profit Rose 80% Y-o-Y
2H 2022 Gross Profit Rose 80% Y-o-Y Growth due to 81% y-o-y increase in portfolio RevPAU1, boosted by contributions from new properties 2H 2022 gross profit rose to 95% of 2H 2019 pro forma levels2 Portfolio RevPAU1 160 +78% • Revenue and gross profit rose 69% and 80% respectively in 2H 2022 due to
Slide 11: Resilience from Stable Income Sources
Resilience from Stable Income Sources Minimum rents and guaranteed income provide downside protection while variable components offer upside in a recovery Stable income sources1 contributed 52% of 2H 2022 gross profit (1H 2022: 68%) Master leases Longer-stay properties (rental housing and student ac
Slide 12: Distribution Details
Distribution Details Excluding one-off items, adjusted DPS1 for 2H 2022 was 99% higher y-o-y 2H 2022 FY 2022 Distribution per Distribution per Higher Total Distribution and DPS for 2H 2022 y-o-y Stapled Security Stapled Security • Total Distribution and DPS for 2H 2022 rose 54% and 47% y-o-y respect
Slide 13: 2H 2022 – Financial Performance by Contract Types
2H 2022 – Financial Performance by Contract Types Stronger performance across all contract types Revenue (S$‘mil) Gross Profit (S$‘mil) RevPAU1 (S$) 2H 2022 2H 2021 % Change 2H 2022 2H 2021 % Change 2H 2022 2H 2021 % Change Master Leases 47.2 44.8 5% 42.6 40.1 6% n.a. n.a. n.a. Management Contracts
Slide 14: FY 2022 – Financial Performance by Contract Types
FY 2022 – Financial Performance by Contract Types Broad-based improvement in performance across the portfolio Revenue (S$‘mil) Gross Profit (S$‘mil) RevPAU1 (S$) FY 2022 FY 2021 % Change FY 2022 FY 2021 % Change FY 2022 FY 2021 % Change Master Leases 96.4 98.4 -2% 86.9 88.3 -2% n.a. n.a. n.a. Manage
Slide 15: Diversified Portfolio with Mix of Stable and Growth Income Streams
Diversified Portfolio with Mix of Stable and Growth Income Streams Growth income contribution rose to 48% in 2H 2022 as recovery picked up across markets Contract types with a fixed/ minimum rent component Master leases 25.8% Management contracts of serviced residences and hotels Australia 3.0% Aust
Slide 16: Resilience from Stable Income, Capturing Post-Covid-19 Growth
Resilience from Stable Income, Capturing Post-Covid-19 Growth Proxy to recovery of hospitality sector while remaining resilient against downside risks Asia Pacific 59.6% Europe 18.8% Australia 12.7% Belgium 0.8% China 3.7% France 7.9% Indonesia 1.2% Germany 3.0% Japan 17.5% Total Assets Spain 0.7% M
Slide 17: Key Market Updates
Key Market Updates La Clef Louvre Paris
Slide 18: 8 Key Markets Performance
8 Key Markets Performance Revenue (LC ‘mil) Gross Profit (LC ‘mil) RevPAU (LC) 2H 2022 2H 2021 % Change 2H 2022 2H 2021 % Change 2H 2022 2H 2021 % Change Master Leases Australia AUD 5.6 2.2 155% 5.3 2.1 152% n.a. n.a. n.a. France EUR 10.0 8.6 16% 9.2 8.1 14% n.a. n.a. n.a. Japan JPY 1,041.2 1,028.6
Slide 19: Australia
Australia Strong performance driven by robust domestic demand, large-scale events provide further uplift 13% of total assets, 18% of 2H 2022 gross profit: 5 serviced residences (SRs) under master leases; 6 hotels and 3 SRs under management contracts Management Contracts – SRs & Hotels • Outlook for
Slide 20: China
China Outlook improves with easing of travel requirements, long stays provide resilience 4% of total assets, 2% of 2H 2022 gross profit: 5 SRs under management contracts • The Chinese government announced the lifting of all • Occupancy remained healthy at above 70% in requirements for domestic trave
Slide 21: France
France Strong underlying performance boosted rental income, outlook remains positive 8% of total assets, 8% of 2H 2022 gross profit: 16 SRs under master leases • 2H 2022 revenue and gross profit was 16% and • Citadines Les Halles Paris will undergo 14% higher y-o-y respectively mainly due to refurbi
Slide 22: Japan
Japan Strong recovery in 4Q 2022, with positive outlook following reopening to independent travellers 18% of total assets, 11% of 2H 2022 gross profit: 3 hotels and 1 student accommodation under master lease; 3 SRs, 2 hotels and 21 rental housing under management contracts Management Contracts Renta
Slide 23: Singapore
Singapore Strong performance across all properties, driven by international demand and citywide events 17% of total assets, 11% of 2H 2022 gross profit: 2 SRs and 1 hotel under management contracts; 1 SR under management contract with minimum guaranteed income (MCMGI); 1 SR under development Managem
Slide 24: United Kingdom
United Kingdom Recovery momentum remains strong, demand boosted by leisure travellers in the quarter 6% of total assets, 8% of 2H 2022 gross profit: 4 SRs under management contracts with minimum guaranteed income (MCMGI) • 2H 2022 revenue and gross profit rose by 100% • Outlook for 1Q 2023 reflects
Slide 25: United States
United States Hotels reflect sustained strong demand, with student accommodation contributing stable income 22% of total assets, 25% of 2H 2022 gross profit: 3 hotels and 7 student accommodation under management contracts; 1 student accommodation under development Management Contracts – Hotels Manag
Slide 26: Vietnam
Vietnam Steady recovery led to healthy year-end performance, outlook remains positive 3% of total assets, 5% of 2H 2022 gross profit: 5 SRs under management contracts • 2H 2022 revenue and gross profit was 55% and 54% • Hanoi properties saw a steady recovery in higher y-o-y respectively, mainly due
Slide 27: Portfolio Updates
Portfolio Updates Paloma Raleigh (formerly known as Latitude on Hillsborough)
Slide 28: CapitaLand Ascott Trust’s Positioning
CapitaLand Ascott Trust’s Positioning Committed to delivering sustainable returns to Stapled Securityholders Geographical Allocation Target Asset Allocation Predominantly in Asia Pacific Stable Income 25-30% in longer-stay Base from Global in accommodation Remainder in Europe/USA Longer-stay Presenc
Slide 29: Investment & Portfolio Reconstitution Strategy
Investment & Portfolio Reconstitution Strategy With its healthy financial position, CLAS has the flexibility to reconstitute and enhance its portfolio to drive sustainable returns Opportunistic Investing in Development divestments to quality hospitality projects unlock value and longer-stay and asse
Slide 30: Asset Enhancement Initiatives for FY 2023
Asset Enhancement Initiatives for FY 2023 Uplifting the value and profitability of CLAS’ properties Riverside Hotel Robertson Quay Artist’s impression of lobby Artist’s impression of lounge, The 1823 Reading Room To be rebranded as The Robertson House by The Crest Collection Renovation to commence i
Slide 31: Asset Enhancement Initiatives for FY 2023
Asset Enhancement Initiatives for FY 2023 Uplifting the value and profitability of CLAS’ properties Citadines Holborn-Covent Garden London Artist’s impression of guest room Artist’s impression of guest bathroom Renovation to commence in 2Q 2023, expected to complete in 1Q 2024 Refurbishment of guest
Slide 32: Asset Enhancement Initiatives for FY 2023
Asset Enhancement Initiatives for FY 2023 Uplifting the value and profitability of CLAS’ properties Citadines Les Halles Paris Artist’s impression of guest room Artist’s impression of guest room Renovation to commence in 2Q 2023, expected to complete in 1Q 2024 Refurbishment of guest rooms, lobby, b
Slide 33: Asset Enhancement Initiatives for FY 2023
Asset Enhancement Initiatives for FY 2023 Uplifting the value and profitability of CLAS’ properties Citadines Kurfürstendamm Berlin Artist’s impression of guest room Artist’s impression of lobby Renovation to commence in 2Q 2023, expected to complete in 4Q 2023 Refurbishment of guest rooms, public a
Slide 34: Rejuvenating the Portfolio with New Developments
Rejuvenating the Portfolio with New Developments New product offerings to cater to the new normal Redevelopment of Somerset Liang Court Singapore Development of student accommodation in South Carolina, USA Artist’s impression Site progress Site progress Site progress • 192-unit Somerset serviced res
Slide 35: Portfolio Valuation
Portfolio Valuation La Clef Louvre Paris
Slide 36: Portfolio Valuation
Portfolio Valuation Notwithstanding higher capitalisation and discount rates, CLAS recorded a gross fair value gain of c.S$200 mil1 due to stronger operating performance Value of Properties2 Net Book Value Country Currency as at 31 Dec 2022 as at 31 Dec 2022 Variance (%) (local currency) (local curr
Slide 37: Capital & Risk Management
Capital & Risk Management Somerset Millennium Makati
Slide 38: Capital Management
Capital Management Strong financial capacity and healthy liquidity position Strong capital Robust financing Fortifying liquidity management flexibility reserves S$1.151 38.0% c.S$1.43 bil NAV per Stapled Security Gearing Total available funds (c. S$1.8 bil debt Interest cover headroom2) 4.4X 3 = 52%
Slide 39: Capital Management
Capital Management Successfully refinanced c.S$740 mil of debt in 2022, of which c.S$420 mil was issued as sustainable financing Key Highlights 68% : 32% c.78% 4.0 years Bank loans : Medium Term Notes Total debt on fixed rates Weighted average debt to maturity • Partnered International Finance Corpo
Slide 40: Looking Ahead
Looking Ahead Ascott Jakarta
Slide 41: Managing Macroeconomic and Operational Challenges
Managing Macroeconomic and Operational Challenges Impact from headwinds cushioned by mitigation strategies • CLAS has built a strong • CLAS has a high proportion • CLAS has a geographically • Electricity costs have • CLAS’ predominantly long- stable income base and of debt effectively on fixed diver
Slide 42: Marrying Growth with Resilience
Marrying Growth with Resilience Proxy to recovery of hospitality sector, underpinned by stable income base and strong fundamentals Continued recovery expected for the sector • Despite macroeconomic and geopolitical challenges, UNWTO 1 expects 2022 2023 Forecast international arrivals to reach 80% to
Slide 43: Thank You
Thank You Citadines Connect Sydney Airport
Slide 44: Additional Information
Additional Information La Clef Tour Eiffel Paris
Slide 45: Acquisitions Entered Into in FY 2022
Acquisitions Entered Into in FY 2022 c.S$420 mil invested in 15 properties No. of Acquisition date / No. Property Lodging Type Location Purchase price EBITDA/NOI yield units target completion date 1 Eslead College Gate Kindaimae Student Accommodation Osaka, Japan 112 Mar 2022 2 Eslead Residence Bent
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