Ytl Hospitality Reit · MYX:YTLREIT
Ytl Hospitality Reit — Investor Presentation (February 2014)
42 slides from Ytl Hospitality Reit's investor presentation, February 2014
Slide 1: YTL Hospitality REIT – A leading Asia Pacific hospitality REIT
YTL Hospitality REIT – A leading Asia Pacific hospitality REIT Investor Presentation February 2014
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer, invitation, solicitation or advertisement with respect to the purchase or sale or subscription of any units or security of YTL Hospitality REIT and no part of it shall form the basis of, or be relied on i
Slide 3: 1. YTL Hospitality REIT overview
1. YTL Hospitality REIT overview
Slide 4: YTL Hospitality REIT overview
YTL Hospitality REIT overview A unique investment opportunity providing exposure to high quality Asia Pacific hospitality assets 9 luxury hotels, 3 upscale hotels and 1 serviced residence YTL Hospitality REIT overview No. of rooms / Market Asset value NPI breakdown(2) Countries units capitalisation(
Slide 5: A portfolio of upscale and luxury hotels and serviced residences
A portfolio of upscale and luxury hotels and serviced residences 3,706 rooms located across 3 countries Focused on city and destination hotels and resorts managed by best-in-class operators and affiliated with quality global brands Japan Asset breakdown by country(1) Hilton Niseko, Hokkaido Malays
Slide 6: Evolution of YTL Hospitality REIT
Evolution of YTL Hospitality REIT Pure-play hospitality REIT with a growing international portfolio An international hospitality REIT (No. of rooms / units) 3,706 2,690 621 561 At IPO Acquisition 1 Acquisition 2 Acquisition 3 / Current (16 Dec 2005) (May 2007) (Nov-Dec 2011) (Nov 2012) Repositioned
Slide 7: Information on the Manager
Information on the Manager Strong leadership and experienced management team Fee structure CEO CEO and Executive Director of the Manager since 10 March 2005 Base fee Tan Sri Dato’ Managing Director of YTL Corporation Berhad Group since 1988 (Dr) Francis Driving force behind YTL Corporation Ber
Slide 8: YTL Hospitality REIT’s strategy
YTL Hospitality REIT’s strategy Focus on acquisitions which have attractive valuations and are DPU yield accretive Take an active role in managing and enhancing properties through: (i) marketing, (ii) refurbishment, and (iii) asset enhancement Seek to differentiate our portfolio by targeting h
Slide 9: Distribution history
Distribution history Distribution per unit (RM sen) 7.64 7.38 6.49 6.49 3.62 3.79 3.20 3.20 3.90 1.98 4.01 3.29 3.29 3.59 1.92 (1) FY 2010 FY 2011 FY 2012 FY 2013 1H FY2014 Half-yearly Final Quarterly (1Q) Quarterly (2Q) YTL Hospitality REIT has started paying quarterly distributions commencing the
Slide 10: 2. Investment highlights
2. Investment highlights
Slide 11: Investment highlights
Investment highlights 1 A substantial portfolio of 13 hospitality properties in Malaysia, Australia and Japan 2 Hotels managed by best-in-class operators and affiliated with the strongest brands 3 Diversified portfolio offering stability and growth 4 Assets benefiting from favorable market dynamics
Slide 12: A substantial portfolio of hospitality properties in Malaysia, Australia and Japan
1 A substantial portfolio of 13 hospitality properties in Malaysia, Australia and Japan 3,706 rooms and units located across 3 countries YTL Hospitality REIT portfolio has an average yield of approximately 7% Portfolio overview (as at 31 December 2013) Appraised value(3) Gross property(4) (5) % of t
Slide 13: One of the largest REITs in Malaysia and the most geographically diversified
1 One of the largest REITs in Malaysia and the most geographically diversified YTL Hospitality REIT: first and only hospitality focused REIT and most geographically diversified REIT listed on Bursa Malaysia Malaysia REIT by asset size(1) (RM in millions) 5,231 4,816 4,136 3,081 2,774 1,546 1,464 1,2
Slide 14: Hotels managed by best-in-class operators and affiliated with the strongest brands
2 Hotels managed by best-in-class operators and affiliated with the strongest brands A strong and diversified portfolio of brands 13
Slide 15: JW Marriott Hotel, Kuala Lumpur
2 JW Marriott Hotel, Kuala Lumpur 2013 Travelers’ choice Top 25 hotels in Malaysia Trip Advisor 14
Slide 16: Pangkor Laut Resort
2 Pangkor Laut Resort Number One Best Overseas Spa Destination in the World Condé Nast Traveler UK, 2003 15
Slide 17: Diversified portfolio offering stability and growth
3 Diversified portfolio offering stability and growth Unique combination of i) steady cash flows from master leases and ii) variable income with meaningful upside potential from Australia hotel portfolio 1 2 Master lease Management contract YTL Hospitality REIT properties (ex. Australia hotel port
Slide 18: Proactive management to drive higher returns
3 Proactive management to drive higher returns Australian portfolio – asset enhancement opportunity Potential enhancements to the hotel: Utilisation of unused gross floor area to create additional conference room, ballroom and meeting room facilities Reconfiguration of existing restaurant, club
Slide 19: Assets benefiting from favorable market dynamics
4 Assets benefiting from favorable market dynamics Malaysia hotel sector(1) Australia hotel sector(1) 63.9% 63.9% 71.3% 71.4% 71.5% 71.5% 71.6% 71.7% 63.3% 63.7% 63.9% 69.3% 70.4% 62.4% 60.6% 59.3% 920 930 2,940 3,000 890 890 910 2,750 2,810 2,870 860 840 860 2,710 2,720 2,370 2010 2011 2012 2013 20
Slide 20: Committed and financially strong sponsor with other prime hospitality assets
5 Committed and financially strong sponsor with other prime hospitality assets A leading diversified group providing significant financial strength and long-term stability YTL Corporation Bhd YTL Hotels One of the largest companies listed on the Bursa Malaysia YTL Hotels is the hospitality arm o
Slide 21: 3. Proposed Placement
3. Proposed Placement
Slide 22: Transaction summary
Transaction summary On 11 February 2014, unitholders approved the following resolutions at the EGM. 1 Up to RM800 million Proposed Placement: (A) Up to RM310 million to YTL Corp (B) Remainder to other placees 2 Proposed increase in approved fund size from 1,324,388,889 units up to a maximum of 2,125
Slide 23: Proposed placement enhances YTL Hospitality REIT’s financial profile
Proposed placement enhances YTL Hospitality REIT’s financial profile Acquisition of the 3 Australian Marriott Hotels significantly increased the portfolio value(1) Reduction in leverage and increase in debt headroom (RM in millions) (RM in millions) Gearing 2,751 ratio(2): 52.9% 26.5% 1,535 1,582 79
Slide 24: 4. Marriott hotel portfolio acquisition
4. Mariott hotel portfolio acquisition
Slide 25: Acquisition of Australian Marriott hotels with 1,016 guest rooms
Acquisition of 3 Australian Marriott hotels with 1,016 guest rooms Hotels are strategically located in the prime CBDs of Australia’s key gateway cities of Sydney, Melbourne and Brisbane Hotels located in key gateway cities 1 Sydney Harbour Marriott 2 5-star AAA tourism 563 rooms Occupancy: 86.
Slide 26: Acquisition rationale
Acquisition rationale 1 Strategic addition of an Australian hotel portfolio to YTL Hospitality REIT’s portfolio 2 Improved asset and income diversification Two income streams – stable fixed lease rentals and variable revenue from hotels 3 under management contract 4 Exposure to the attractive and re
Slide 27: Sydney Harbour Marriott
Sydney Harbour Marriott One of Oceania’s best hotels Condé Nast Traveler, 2011 Overview Address 30 Pitt Street, Sydney, New South Wales Located on Pitt Street in the heart of the Sydney CBD and in close proximity to tourist attractions of Circular Quay, Description The Rocks and the Sydney Opera Hou
Slide 28: Brisbane Marriott
Brisbane Marriott Leader in Brisbane’s premium accommodation market Overview Address 515 Queen Street, Brisbane, Queensland Located on the northern end of the Brisbane CBD area, Description close to the Brisbane River and with a view of the Storey Bridge. 5-star AAA tourism rating Year open 1998 No.
Slide 29: Melbourne Marriott
Melbourne Marriott Well regarded five star hotel located at the “Paris-end” of Collins Street Overview Corner Exhibition and Lonsdale Street, Melbourne, Address Victoria Located in the eastern section of the Melbourne CBD on Description the corner of Exhibition and Lonsdale Streets. 5-star AAA touri
Slide 30: 5. Financials
5. Financials
Slide 31: Financial results
Financial results Income statement Fiscal year ended, 30 June 2011 2012 2013 YTD* 2Q 14 * (RM'000) Hotel revenue - - 179,192 160,521 86,350 Property revenue 30,148 80,860 112,829 56,738 28,328 Total revenue 30,148 80,860 292,021 217,259 114,678 (1) Property operating expenses (1,801) (5,329) (111,60
Slide 32: Financial results (cont’d)
Financial results (cont’d) Balance sheet Fiscal year ended, 30 June 2011 2012 2013 2Q 14* (RM'000) Assets Non-current assets Investment properties 494,700 1,598,525 1,548,539 1,543,117 Property, plant and equipment - - 1,263,617 1,231,236 Deferred tax assets - - 3,317 2,801 Current assets Inventorie
Slide 33: 6. Appendix
6. Appendix
Slide 34: JW Marriott Hotel Kuala Lumpur
JW Marriott Hotel Kuala Lumpur Overview Address 183, Jalan Bukit Bintang, 55100 Kuala Lumpur Description Centrally located in the heart of KL Year open 1997 Master lease expiry December 31, 2023 Master lease remaining(1) 10 years Annual lease (RM'000) 24,300 No. of rooms 561 Acquisition date Decembe
Slide 35: The Residences at The Ritz-Carlton, Kuala Lumpur
The Residences at The Ritz-Carlton, Kuala Lumpur Overview Lot 1308, Jalan Yap Tai Chi, Seksyen 67 Off Jalan Imbi, 55100 Kuala Address Lumpur A multiple "Five Star Diamond Award" winner. "Best Business Hotel in Description Malaysia" by Bloomberg Television and CNBC Asia Pacific Year open 2005 Master
Slide 36: The Ritz-Carlton, Kuala Lumpur
The Ritz-Carlton, Kuala Lumpur Overview Address 168, Jalan Imbi and Jalan Yap Tai Chi, 55100 Kuala Lumpur Description Centrally located in the heart of KL Year open 1997 Master lease expiry November 14, 2026 Master lease remaining(1) 13 years Annual lease (RM'000) 19,250 No. of rooms 251 Acquisition
Slide 37: Pangkor Laut Resort
Pangkor Laut Resort Overview Address Pangkor Laut, 32200 Lumut, Perak Darul Ridzuan Located on a privately owned island 1.6km off the west coast of Description Malaysia. "Number One in the World" in the Conde Nast Traveller UK's Top 100 List Year open 1994 Master lease expiry November 14, 2026 (1) M
Slide 38: Tanjong Jara Resort
Tanjong Jara Resort Overview Address Batu 8, Off Jalan Dungun, 23000 Dungun, Terengganu Located on the east coast of Malaysia. Award winning spa resort with an Description Aga Khan award for architecture Year open 1999 Master lease expiry November 14, 2026 Master lease remaining(1) 13 years Annual l
Slide 39: Cameron Highlands Resort
Cameron Highlands Resort Overview By the Golf Course, 39000 Tanah Rata, Cameron Highlands, Pahang Address Darul Makmur Colonial boutique resort. Voted as one of the world's top 5 Tea Plantation Description Hotels Year open 2006 Master lease expiry November 14, 2026 Master lease remaining(1) 13 years
Slide 40: Hilton Niseko
Hilton Niseko Overview Address Higashiyama-Onsen, Niseko-town, Abuta-gun, Hokkaido Located at the foot of the Niseko Annupuri mountain. Comes with natural Description hot springs Year open 1994 Master lease expiry December 21, 2026 Master lease remaining(1) 13 years Annual lease (RM'000) 15,540 No.
Slide 41: Vistana hotels
Vistana hotels Vistana Kuala Lumpur Vistana Penang Vistana Kuantan No.9, Jalan Lumut, off Jalan Ipoh, 50400 Kuala No. 213, Jalan Bukit Gambir, Bukit Jambul, 11950 Address Jalan Teluk Sisek, 25000 Kuantan, Pahang Lumpur Pulau Pinang Located within the hub of Kuala Lumpur close to Located in Penang, 1
Slide 42: Pintar Projek Sdn Bhd
PINTAR PROJEK SDN BHD 314009-W Manager of YTL Hospitality REIT 11th Floor Yeoh Tiong Lay Plaza 55 Jalan Bukit Bintang 55100 Kuala Lumpur Malaysia Tel: 603 2117 0088 603 2142 6633 Fax: 603 2141 2703 Email: ir@ytlhospitalityreit.com www.ytlhospitalityreit.com
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