Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Ascendas Hospitality Trust — Q3 FY2016/17 Earnings Presentation
28 slides from Singapore Exchange's earnings presentation, Jan 26, 2017
Slide 1: 3Q FY2016/17 Financial Results Presentation
3Q FY2016/17 Financial Results Presentation 26 January 2017 SYDNEY • MELBOURNE • BRISBANE • BEIJING • TOKYO • OSAKA• SINGAPORE 1
Slide 2: Disclaimer
Disclaimer This presentation shall be read in conjunction with A-HTRUST’s Unaudited Financial Results for the Third Quarter ended 31 December 2016 (“3Q FY2016/17”) a copy of which is available on www.sgx.com or www.a-htrust.com. This presentation may contain forward-looking statements that involve r
Slide 3: Contents
Contents 1 Key Highlights 2 Financial Review 3 Portfolio Performance 4 Capital Management 5 Looking Ahead 3
Slide 4: Overview of Ascendas Hospitality Trust
Overview of Ascendas Hospitality Trust Beijing S$792 million • Novotel Beijing Sanyuan Market capitalisation • Ibis Beijing Sanyuan as at 31 December 2016 Tokyo • Hotel Sunroute Ariake and S$1,525 million Oakwood Apartments Ariake Tokyo Portfolio valuation as at 31 March 2016 Osaka • Hotel Sunroute
Slide 5: Key Highlights
1 Key Highlights 5
Slide 6: 3Q FY2016/17 Financial Highlights
3Q FY2016/17 Financial Highlights 3Q FY2016/171 3Q YTD 2016/171 Gross Revenue S$59.2m 8.0% y-o-y S$167.1m 3.3% y-o-y Net Property Income (“NPI”) S$26.4m 12.9% y-o-y S$73.4m 8.8% y-o-y Income available for distribution S$19.5m 14.6% y-o-y S$51.0m 5.7% y-o-y Adjusted Income available for S$18.5m 14.0%
Slide 7: 3Q FY2016/17 Portfolio Highlights
3Q FY2016/17 Portfolio Highlights AOR1 ADR1 RevPAR1 2.2pp AUD 0.5% AUD 2.6% Australia 86.6% y-o-y y-o-y y-o-y 181 157 4.1pp RMB 2.2% RMB 2.7% China 86.1% y-o-y y-o-y y-o-y 402 346 Applies to Oakwood Apartments only JPY 3.2% Japan Decline in both occupancy and ADR 10,358 y-o-y Singapore Slight
Slide 8: Financial Review
2 Financial Review 8
Slide 9: Results Summary – 3Q FY2016/17
Results Summary – 3Q FY2016/17 3rd Quarter S$’ million FY2016/17 FY2015/16 Change3 Gross • Overall improvement in 59.2 54.8 8.0% Revenue portfolio performance Net Property • Stronger JPY and AUD 26.4 23.4 12.9% against SGD helped boost Income financials in SGD NPI Margin (%) 44.7 42.7 2.0pp Income a
Slide 10: Results Summary – 3Q YTD FY2016/17
Results Summary – 3Q YTD FY2016/17 3Q YTD S$’ million FY2016/17 FY2015/16 Change3 Gross • Overall underlying 167.1 161.8 3.3% Revenue performance of the portfolio improved Net Property 73.4 67.5 8.8% • Stronger JPY and AUD Income against SGD lifted NPI Margin (%) earnings in SGD 43.9 41.7 2.2pp Inco
Slide 11: Distributable Income and Distribution History
Distribution History Acquisition of Osaka Namba Divestment of Pullman & Equity Fund Raising Cairns International 20.0 1.80 1.64 1.45 1.60 1.38 1.38 18.5 1.28 1.30 1.29 1.40 Distributable Income (S$ million) 16.2 15.0 1.20 DPS (Singapore cents) 15.5 15.5 14.6 14.5 14.2 1.00 0.80 10.0 0.60 0.40 0.20 5
Slide 12: Portfolio Performance
3 Portfolio Performance 12
Slide 13: Performance by Country
Performance by Country Overall portfolio performance improved in 3Q FY2016/17, driven by overseas portfolios Gross Revenue Net Property Income 50.0 20.0 7.3% 42.0 39.1 9.7% 40.0 14.9 15.0 13.6 30.0 S$ million S$ million 10.0 20.0 35.5% 6.4 27.7% 4.7 5.2% 5.0 10.0 3.8% 8.7 11.4% 3.3 3.2 6.8 5.5 5.3 5
Slide 14: NPI Breakdown by Country and Contract Type
NPI Breakdown by Country and Contract Type Well diversified portfolio with good mix of master lease arrangements and management contracts 3Q FY15/16 Net Property Income 3Q FY16/17 Net Property Income Master Lease: Master Lease: 34% 36% Singapore Singapore 14% 12% 3Q FY15/16 3Q FY16/17 Japan Japan Ne
Slide 15: Strong overall performance from Australia portfolio
Strong overall performance from Australia portfolio 3rd Quarter Improvement driven mainly by: AUD FY16/17 FY15/16 Change Pullman Sydney Hyde Park (strong public AOR 86.6% 84.4% 2.2pp demand) Novotel Sydney Central (new aircrew contract) ADR 181 182 0.5% Melbourne Hotel1 (strong conferencing
Slide 16: China portfolio continue to improve
China portfolio continue to improve 3rd Quarter Ibis benefitted from leasing of F&B space and RMB FY16/17 FY15/16 Change loyalty program of China Lodging Group AOR 86.1% 82.0% 4.1pp Financials in SGD moderated by weakening RMB ADR 402 411 2.2% RevPAR 346 337 2.7% Net Property Income in RMB Net P
Slide 17: Osaka hotel drives Japan portfolio performance
Osaka hotel drives Japan portfolio performance 3rd Quarter Improved rental structure saw NPI contribution JPY FY16/17 FY15/16 Change from Hotel Sunroute Osaka Namba grow by 68.5% y-o-y (in JPY term) RevPAR1 10,358 10,687 3.2% Less events at nearby Tokyo Big Sight affected performance of Oakwood
Slide 18: Quality Portfolio: RevPAR Growth vs Peers
Quality Portfolio Majority of hotels outperform their peers during the quarter Australia China 30.0 Outperform STR Comp Set1 Underperform STR Comp Set 20.0 y-oy RevPAR Growth (%) 11.3 12.2 10.0 8.4 8.3 5.4 1.5 1.0 1.7 0.4 0.0 (2.0) (2.2) (1.9) (3.7) (5.4) (5.2) (6.4) (10.0) (9.4) (10.1) (20.0) Pullm
Slide 19: Capital Management
cA tg —+.% Capital Management
Slide 20: Healthy Balance Sheet
Healthy Balance Sheet Total assets of S$1,613.9 million as at 31 December 2016 As at As at 31 December 2016 30 September 2016 Borrowings S$537.5m S$538.6m Total Assets S$1,613.9m S$1,661.7m A-HTRUST Gearing1 33.3% 32.4% - A-HREIT Gearing 26.0% 25.8% - A-HBT Gearing 37.5% 36.3% Weighted average inter
Slide 21: Balanced Debt Profile
Balanced Debt Profile Debt Maturity Profile Debt Facilities 250 Weighted average debt to maturity Term loan facilities: as at 31 December 2016: 2.6 years 3 to 5-year term loan facilities 200 204 Revolving credit facility (“RCF”): 150 3-year S$20 million RCF 75 S$ million S$1 billion Debt Issua
Slide 22: Prudent Capital Management
Prudent Capital Management Debt Currency Profile Interest Rate Profile RMB 4.1% Floating AUD 34.2% JPY Total Debt as at 43.5% Total Debt as at 39.3% 31 Dec 2016: 31 Dec 2016: S$537.5m S$537.5m Fixed 65.8% SGD 13.0% Certain interest rate swaps (“IRS”) expired in 3QFY2016/17 Expect to enter into n
Slide 23: Looking Ahead
5 Looking Ahead 23
Slide 24: Australia – Inbound expected to grow
Australia – Inbound expected to grow International visitors to Australia grew 11% y-o-y for the 12-month period ended September 20161, and the growth trend is expected to continue in the near term as international flight routes to Australia grows2 In Sydney, the recently opened International Con
Slide 25: China – Supported by domestic travelling
China – Supported by domestic travelling While factors such as air quality in the city may continue to deter foreign arrivals into Beijing in the near term, the hospitality sector of the capital city will continue to be supported by domestic travelling As China continues to develop its transport
Slide 26: Japan – Outlook remains healthy
Japan – Outlook remains healthy Despite slower growth in international visitors in recent months in part due to strengthening of JPY, Japan welcomed almost 24 million international visitors in 2016, up by 21.8% compared to 20151 Looking forward, the hotel markets in Tokyo and Osaka are expected
Slide 27: Singapore – Headwinds to persist
Singapore – Headwinds to persist While inbound arrivals to Singapore has grown by 7.9% y-o-y for the period January to November 20161, the relatively large inventory of hotel rooms continued to weigh down performance of the Singapore hotel market Headwinds are likely to persist in the near term
Slide 28: Ascendas Hospitality Trust Management contact details
Ascendas Hospitality Fund Management Pte. Ltd. Ascendas Hospitality Trust Management Pte. Ltd. Managers of A-HTRUST 1 Fusionopolis Place #10-10 Galaxis Singapore 138522 Tel: +65 6774 1033 Email: info-aht@ascendas-singbridge.com www.a-htrust.com 28
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