Cdl Hospitality Trusts · SGX:J85
Cdl Hospitality Trusts — Q3 2024 Earnings Presentation
67 slides from Cdl Hospitality Trusts's earnings presentation, Oct 29, 2024
Slide 1: 3Q 2024 Operational Update Presentation
3Q 2024 Operational Update Presentation 29 October 2024
Slide 2: Important Notice
Important Notice 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 assump
Slide 3: About CDL Hospitality Trusts
About CDL Hospitality Trusts CDL Hospitality Trusts (“CDLHT”) is one of Asia’s leading hospitality trusts with assets under management of about S$3.3 billion as at 30 September 2024. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”), a real estate investment
Slide 4: References Used in this Presentation
References Used in this Presentation 1Q, 2Q, 3Q, 4Q refers to the period 1 January to 31 March, 1 April to 30 June, 1 July to 30 September and 1 October to 31 December respectively 1H and 2H refers to the period 1 January to 30 June and 1 July to 31 December respectively ADR refers to average daily
Slide 5: Table of Contents
Table of Contents ▪ Portfolio Performance & Summary 6 ▪ Healthy Financial Position 12 ▪ Key Markets Update 17 ▪ Other Key Highlights 31 ▪ Concluding Remarks 39 ▪ Annexe 41 − Background and Structure of CDL Hospitality Trusts 41 − Location of CDL Hospitality Trusts Properties 59 5
Slide 6: Portfolio Performance & Summary
Portfolio Performance & Summary 6
Slide 7: YoY RevPAR by Geography (Local Currency)
YoY RevPAR by Geography (Local Currency) Better / YTD Sep YTD Sep Better / RevPAR 3Q 2024 3Q 2023 (Worse) 2024 2023 (Worse) Singapore (S$) 214 238 (10.3)% 200 199 0.4% New Zealand (NZ$) 106 128 (17.2)% 127 135 (6.3)% Australia (A$) 119 101 17.6% 119 103 15.1% Japan (¥) 9,762 8,375 16.6% 10,193 8,325
Slide 8: Quarterly RevPAR by Geography (Local Currency)
Quarterly RevPAR by Geography (Local Currency) Singapore (S$) New Zealand (NZ$) 300 Normalizing of post-pandemic pent 250 Rooms refurbishment commenced mid-Apr up demand 238 250 200 207 197 205 180 214 195 160 200 166 150 176 182 150 164 150 180 174 109 143 162 155 128 100 113 100 106 50 50 1Q 2Q 3Q
Slide 9: Quarterly RevPAR by Geography (Local Currency)
Quarterly RevPAR by Geography (Local Currency) Maldives (US$) United Kingdom (£) (1) 600 Stable against last year 200 Supported by both leisure and corporate demand 517 500 463 152 155155 400 141 150 314 132 300 254 249 106 140 269 136 130 200 257 100 104 222 181 104 100 92 69 0 50 1Q 2Q 3Q 4Q 1Q 2Q
Slide 10: NPI Performance by Geography
NPI Performance by Geography YTD Sep YTD Sep 3Q 2024 3Q 2023 Change Better / Change Better / 2024 2023 S$ ’000 S$ ’000 S$ ’000 (Worse) S$ ’000 (Worse) S$ ’000 S$ ’000 Singapore 23,817 25,199 (1,382) (5.5)% 65,118 63,880 1,238 1.9% New Zealand 1,079 1,607 (528) (32.9)% 4,222 5,259 (1,037) (19.7)% Aus
Slide 11: NPI Performance by Geography (Con’t)
NPI Performance by Geography (Con’t) Breakdown of Portfolio NPI by Country for YTD Sep 2024 Singapore 63.3% Oceania 7.3% Europe 21.2% Other Asia 8.2% United Kingdom 10.1% Singapore Germany 7.1% (1) 63.3% Italy 3.9% (1) YTD Sep 2024 NPI Other Asia 8.2% S$102.9 million Europe Maldives 5.1% 21.2% Japan
Slide 12: Healthy Financial Position
Healthy Financial Position 12
Slide 13: Healthy Financial Metrics
Healthy Financial Metrics As at 30 September 2024 38.8% ~S$678.7M Gearing (1) Cash & Available Credit Facilities (3) (S$707M Debt Headroom to 50% Gearing) Sound Financial 4.4% Metrics and +/- 0.98 cents Impact to DPS for Every 1% Change in Weighted Average Cost of Debt Healthy Liquidity All-in Inter
Slide 14: Diversified Sources of Debt Funding
Diversified Sources of Debt Funding Debt Facility Details as at 30 September 2024 (1) Issued / Utilised Unissued / Unutilised Multi-currency MTN Programme / Facilities Tenure (years) Amount Amount S$1 billion MTN - - S$1.0B S$500 million RCF (Committed) S$289.6M 3 S$210.4M (2) £60.2 million Term Fac
Slide 15: Debt Maturity Profile as at Sep 2024
Debt Maturity Profile as at 30 Sep 2024 ▪ In 3Q 2024, we successfully re-financed S$121.2 million (€35.6 million & S$70.0 million) existing borrowings as sustainability-linked term loans for a tenor of 5 years, increasing the total sustainability-linked facilities to S$477.2 million ▪ Re-financing f
Slide 16: Debt Profile as at Sep 2024
Debt Profile as at 30 Sep 2024 Debt Currency Profile (1) Interest Rate Profile (1) Fixed Rate Floating Rate Borrowings Borrowings JPY 4.6% USD SGD 12.8% 87.2% 11.3% USD 59.7% 40.3% SGD 38.0% GBP 40.3% 59.7% EUR 16.9% (2) JPY 100.0% 0.0% EUR (2) 73.9% 26.1% Blended Total 40.5% 59.5% GBP 29.2% (1) Bas
Slide 17: Key Markets Update
CDL HOSPITALITY TRUSTS Key Markets Update 17
Slide 18: CDLHT Singapore Properties Performance
CDLHT Singapore Properties Performance Better / YTD Sep YTD Sep Better / Singapore Hotels 3Q 2024 3Q 2023 (Worse) 2024 2023 (Worse) Occupancy 84.9% 86.9% (2.0)pp 80.6% 75.2% 5.4pp ADR (S$) 252 274 (8.2)% 248 265 (6.3)% RevPAR (S$) 214 238 (10.3)% 200 199 0.4% Better / YTD Sep YTD Sep Better / Singap
Slide 19: Singapore’s Tourism Statistics
Singapore’s Tourism Statistics Annual International Visitor Arrivals to Singapore (1) Million 20.0 18.5 19.1 15.0 to 17.4 16.5 15.6 16.4 14.5 15.1 15.2 14.3 15.0 13.2 13.6 11.6 12.6 10.1 10.0 6.3 5.0 2.7 0.3 0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Full Year Vis
Slide 20: Geographical Mix of Top Markets (Singapore)
Geographical Mix of Top Markets (Singapore) Top 10 Inbound Markets YTD Sep 2024 – 12.6 Million Visitor Arrivals ▪ Recovery of inbound visitors from China, Singapore’s largest source market of foreign visitors China pre-pandemic, is at 87.1% of YTD Sep 2019 arrivals Others 19.7% 25.3% ▪ Mutual 30-day
Slide 21: Singapore’s Tourism Growth Drivers
Singapore’s Tourism Growth Drivers ▪ Terminal 5 (New): Construction to commence 1H 2025, increased connectivity to more than 200 cities, additional 50 million passengers per year (from 90 million currently) expected to be operational in the mid-2030s (1) ▪ Mandai Nature Precinct: Rejuvenation of Man
Slide 22: Growth in Singapore Hotel Room Supply
Growth in Singapore Hotel Room Supply ▪ An estimated 5.1% net supply was added to Singapore’s room inventory in the 15-month period from 1 Jul 2023 to 30 Sep 2024 which has increased competition in the hotel accommodation space ▪ 880 rooms have opened out of the 1,085 rooms estimated to open in 2024
Slide 23: Potential Supply of New Singapore Hotel Rooms Until 2026
Potential Supply of New Singapore Hotel Rooms Until 2026 No. of Horwath Expected No. of Horwath Expected Name of Hotel Location Name of Hotel Location Rms Rating Opening Rms Rating Opening Handwritten Collection Standard Singapore 143 Upscale/Luxury City Centre 4Q 2024 502 Mid-Tier City Centre 2025
Slide 24: CDLHT New Zealand Hotel Performance
CDLHT New Zealand Hotel Performance Better / YTD Sep YTD Sep Better / New Zealand Hotel 3Q 2024 3Q 2023 (Worse) 2024 2023 (Worse) RevPAR (NZ$) 106 128 (17.2)% 127 135 (6.3)% NPI (S$ ’000) 1,079 1,607 (32.9)% 4,222 5,259 (19.7)% ▪ 3Q 2024 RevPAR decreased YoY due to the absence of nine FIFA Women’s W
Slide 25: CDLHT Australia Hotels Performance
CDLHT Australia Hotels Performance Better / YTD Sep YTD Sep Better / Australia Hotels 3Q 2024 3Q 2023 (Worse) 2024 2023 (Worse) RevPAR (A$) 119 101 17.6% 119 103 15.1% NPI (S$ ’000) 1,050 663 58.4% 3,318 2,479 33.8% ▪ Supported by a healthier sporting and event calendar, 3Q 2024 RevPAR improved 17.6
Slide 26: CDLHT Japan Hotels Performance
CDLHT Japan Hotels Performance Better / YTD Sep YTD Sep Better / Japan Hotels 3Q 2024 3Q 2023 (Worse) 2024 2023 (Worse) RevPAR (¥) 9,762 8,375 16.6% 10,193 8,325 22.4% NPI (S$ ’000) 960 882 8.8% 3,182 2,672 19.1% ▪ 3Q 2024 had 9.1 million visitors, up 36.6% YoY and up 16.9% against 3Q 2019. 26.9 mil
Slide 27: CDLHT Maldives Resorts Performance
CDLHT Maldives Resorts Performance Better / YTD Sep YTD Sep Better / Maldives Resorts 3Q 2024 3Q 2023 (Worse) 2024 2023 (Worse) RevPAR (US$) 249 222 12.3% 340 313 8.6% NPI (S$ ’000) 389 1,056 (63.2)% 5,257 5,712 (8.0)% ▪ 3Q 2024 RevPAR improved 12.3% driven by better RevPAR performance for Angsana V
Slide 28: CDLHT UK Hotels Performance
CDLHT UK Hotels Performance Better / YTD Sep YTD Sep Better / UK Hotels 3Q 2024 3Q 2023 (Worse) 2024 2023 (Worse) RevPAR (£) (1) 155 155 (0.3)% 137 133 2.7% NPI (S$ ’000) 4,405 4,553 (3.3)% 10,612 10,762 (1.4)% ▪ Collective RevPAR was flat for 3Q 2024 YoY for Hilton Cambridge City Centre and The Low
Slide 29: CDLHT UK BTR Performance
CDLHT UK BTR Performance Better / YTD Sep YTD Sep Better / BTR 3Q 2024 3Q 2023 (Worse) 2024 2023 (Worse) NPI (S$ ’000) (217) - N.M. (217) - N.M. ▪ The Castings welcomed its first residents on 16 Jul and experienced strong leasing activity when bookings opened ▪ Physical occupancy of 46.3% was achiev
Slide 30: CDLHT Germany and Italy Hotels Performance
CDLHT Germany and Italy Hotels Performance Better / YTD Sep YTD Sep Better / Germany Hotel 3Q 2024 3Q 2023 (Worse) 2024 2023 (Worse) RevPAR (€) 137 122 12.4% 108 98 10.4% NPI (S$ ’000) 3,387 3,328 1.8% 7,346 6,909 6.3% Better / YTD Sep YTD Sep Better / Italy Hotel 3Q 2024 3Q 2023 (Worse) 2024 2023 (
Slide 31: Other Key Highlights
CDL HOSPITALITY TRUSTS Other Key Highlights 31
Slide 32: Acquisition of Hotel Indigo Exeter, UK
Acquisition of Hotel Indigo Exeter, UK Attractive Acquisition of an Upscale Lifestyle Hotel in Heart of Exeter City Centre with Brand New Interiors ▪ Expanded presence in the UK with the acquisition of a freehold property, consisting Hotel Indigo Exeter and two retail units, for £19.4 million (~S$33
Slide 33: Acquisition of Hotel Indigo Exeter, UK (Con’t)
Acquisition of Hotel Indigo Exeter, UK (Con’t) Acquisition of Hotel Indigo Exeter, UK Standard Double King Suite Suite Standard Bathroom King Suite 33
Slide 34: Acquisition of Hotel Indigo Exeter, UK (Con’t)
Acquisition of Hotel Indigo Exeter, UK (Con’t) Acquisition of Hotel Indigo Exeter, UK Spa Restaurant Lobby Rooftop Bar 34
Slide 35: Asset Enhancement Plans – Ibis Perth
Asset Enhancement Plans – Ibis Perth Rooms Refurbishment ▪ Renovation of 192 rooms ongoing (May 2024 to Feb 2025) and is presently at 48% completion ▪ Renovation of public areas, restaurant and bar will commence from late 2024 onwards Standard Queen Room (before) Standard Queen Room (mockup) 35
Slide 36: Asset Enhancement Plans – Grand Millennium Auckland
Asset Enhancement Plans – Grand Millennium Auckland Progressive Transformation in Phases ▪ First phase of rooms renovation ongoing (Apr to Nov 2024) ▪ Renovation of reception area and meeting rooms will be carried out in the coming months Club Room (before) Club Room (mockup) 36
Slide 37: Commitment to ESG
Commitment to ESG Name of Award Our Portfolio BCA Green Mark Award Platinum Green Initiatives • Copthorne King’s Hotel • Grand Copthorne Waterfront Hotel Gold Plus M&C Hotels • Orchard Hotel ▪ All M&C Hotels BCA Green Mark certified • M Hotel ▪ Singapore Hotel Sustainability Award 2024: GCW, MHS and
Slide 38: Commitment to ESG (Con’t)
Commitment to ESG (Con’t) Targets Reporting ▪ Net Zero Target: By 2050 Task Force on Climate-Related Financial Disclosures (TCFD): ▪ On track to achieve 5-7% reduction in energy by FY 2026: FY 2023 electricity intensity is 12.5% lower than FY 2019 ▪ Adoption of TCFD Framework in climate risk reporti
Slide 39: Concluding Remarks
CDL HOSPITALITY TRUSTS Concluding Remarks 39
Slide 40: Concluding Remarks
Concluding Remarks ▪ Further growth potential for Singapore visitor arrivals: Singapore portfolio ▪ YTD arrivals are still behind 2019; 87.8% of pre-pandemic levels (1) (CDLHT’s core assets ▪ Further recovery from key source markets such as China, Indonesia and India ~66% of portfolio valuation) ▪ D
Slide 41: Background and Structure of CDL Hospitality Trusts
Background and Structure of CDL Hospitality Trusts 41
Slide 42: Background on CDLHT
Background on CDLHT Background Price Performance ▪ IPO on 19 Jul 2006 ▪ Listed on SGX Mainboard ▪ Sponsored by Millennium & Copthorne Hotels Limited ▪ First Hotel REIT in Asia ex Japan ▪ Constituent of FTSE EPRA Nareit Global Index Market Capitalisation ▪ S$1.2 billion as of 25 Oct 2024 Source: Bloo
Slide 43: CDLHT Structure
CDLHT Structure Sponsor Investors ≈28.39% Holdings of Stapled Securities ≈71.61% as at 30 Sep 2024 as at 30 Sep 2024 H-REIT Distributions HBT Acts on behalf of DBS Trustee the holders of H- REIT Units Stapling Deed Management Management services M&C REIT services M&C Business Trust Management Limite
Slide 44: Blue Chip Sponsor and Parentage
Blue Chip Sponsor and Parentage Millennium & Copthorne Hotels Limited City Developments Limited ▪ Leading global real estate company with a network ▪ Internationally recognised hospitality and real estate spanning 163 locations in 29 countries and regions group which owns as well as operates and/or
Slide 45: Management Strategy
Management Strategy Acquisition Growth Asset Management 1 Strategy 2 Strategy ▪ Pursue quality assets with growth ▪ Work closely with master lessees, potential hotel/property managers and/or operators to implement active revenue ▪ Pursue asset class diversification and cost management within the lod
Slide 46: High Quality Portfolio with Assets Across the World
High Quality Portfolio with Assets Across the World MANCHESTER • 2 Hotels IPO Current • 1 Residential BTR 19 Jul 2006 CAMBRIDGE TOKYO • 1 Hotel • 2 Hotels MUNICH Operational 5 20 • 1 Hotel Properties FLORENCE • 1 Hotel SINGAPORE • 6 Hotels • 1 Retail Mall 4,820 hotel rooms 1,915 MALDIVES Keys hotel
Slide 47: CDLHT Asset Portfolio – Singapore
CDLHT Asset Portfolio – Singapore Grand Copthorne Copthorne W Singapore – Claymore Singapore Properties Orchard Hotel M Hotel Studio M Hotel Waterfront King’s Hotel Sentosa Cove Connect Portfolio Hotel Located on One of the Luxury lifestyle Orchard Road, Located in the Located within largest Stylish
Slide 48: CDLHT Asset Portfolio – Overseas
CDLHT Asset Portfolio – Overseas Mercure Perth Ibis Perth Grand Millennium Auckland Properties Oceania Portfolio (Australia) (Australia) (New Zealand) Situated in Perth’s CBD and within Located steps away from the Murray One of New Zealand’s largest deluxe Description walking distance to the Swan Ri
Slide 49: CDLHT Asset Portfolio – Overseas
CDLHT Asset Portfolio – Overseas Raffles Maldives Hotel MyStays Hotel MyStays Angsana Velavaru Properties Meradhoo Maldives Portfolio Asakusabashi Kamata Japan Portfolio (Maldives) (Maldives) (Tokyo, Japan) (Tokyo, Japan) Located in central All-suite luxury resort, Tokyo, with easy access Located ne
Slide 50: CDLHT Asset Portfolio – Overseas
CDLHT Asset Portfolio – Overseas Hilton Cambridge City voco Manchester – Hotel The Lowry Hotel Build-to-Rent The Castings United Kingdom Centre City Centre Properties (United Kingdom) (BTR) Property (United Kingdom) Portfolio (United Kingdom) (United Kingdom) 4-star upscale lifestyle Residential Bui
Slide 51: CDLHT Asset Portfolio – Overseas
CDLHT Asset Portfolio – Overseas Pullman Hotel Munich Hotel Cerretani Firenze EU Properties CDLHT Portfolio (Germany) (Italy) Portfolio 4-star hotel located in close proximity to 4-star hotel boasting an exceptional location Description - - major business districts in the heart of Florence’s histori
Slide 52: Summary of Leases
Summary of Leases Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel: ▪ Rent: 20% of Hotel's revenue + 20% of Hotel’s gross operating profit, with an annual fixed rent floor of S$26.4 million ▪ Term of 20 years from Listing (19 Jul 2006) with 20-year option Claymore Con
Slide 53: Summary of Leases
Summary of Leases Grand Millennium Auckland: New Zealand ▪ First 3-year term expired on 6 Sep 2019; lease provides for two 3-year renewal terms, subject to mutual agreement Grand Millennium ▪ Lease renewed for third 3-year term from 7 Sep 2022, expiring 6 Sep 2025, on the same terms, except annual b
Slide 54: Summary of Leases
Summary of Leases voco Manchester – City Centre: United Kingdom ▪ Full repairing and insuring occupational lease, subject to upward-only annual rent revision broadly based on inflation voco Manchester – ▪ Fixed rent of £2.54 million per annum for the period of 7 May 2023 to 6 May 2024 ▪ Fixed rent o
Slide 55: Summary of Temporary Arrangements
Summary of Temporary Arrangements Due to the COVID-19 pandemic, a temporary rent abatement agreement for Pullman Hotel Munich was signed in Apr 2021 (“Temporary Arrangement”). Pursuant to the Temporary Arrangement, (a) the lessor has released the lessee from its obligation to pay the base rent for t
Slide 56: Summary of Management Agreements
Summary of Management Agreements W Singapore – Sentosa Cove: Singapore ▪ HBT’s subsidiary is the lessee for the hotel's operations ▪ Operated by Starwood Asia Pacific Hotels & Resorts Pte Ltd, a wholly-owned subsidiary of Marriott International, Inc. W Singapore – ▪ Term of ~20.3 years from 16 Sep 2
Slide 57: Summary of Management Agreements
Summary of Management Agreements Hotel MyStays Asakusabashi and Hotel MyStays Kamata: ▪ HBT’s subsidiary is the lessee for the hotels’ operations Japan Portfolio ▪ MyStays Hotel Management Co., Ltd. is the hotel manager, appointed by HBT ▪ The hotel management agreements renew on a 3-year auto-renew
Slide 58: Summary of Management Agreements
Summary of Management Agreements Hilton Cambridge City Centre: United Kingdom ▪ HBT is the asset owner and currently responsible for the hotel’s operations Hilton Cambridge ▪ Hilton UK Manage Limited (an affiliate of Hilton Worldwide Inc.) is the hotel manager, appointed by HBT ▪ Term of 12.25 years
Slide 59: Location of CDL Hospitality Trusts Properties
Location of CDL Hospitality Trusts Properties 59
Slide 60: Hotels in Strategic Locations
Hotels in Strategic Locations Singapore Hotels Orchard Hotel & Claymore Connect H Studio M Hotel Grand Copthorne Waterfront Hotel H H H SINGAPORE RIVER MARINA BAY SANDS CENTRAL Copthorne BUSINESS King’s Hotel DISTRICT H M Hotel SENTOSA ISLAND H W Singapore - Sentosa Cove 60
Slide 61: Hotels in Strategic Locations
Hotels in Strategic Locations New Zealand Hotel Australia Hotels Auckland City Centre Mercure Grand Millennium Ibis Perth Perth Auckland Perth CBD H H H CBD AREA 61
Slide 62: Hotels in Strategic Locations
Hotels in Strategic Locations Japan Hotels Hotel MyStays Hotel MyStays Asakusabashi Kamata Asakusabashi Kamata H H 62
Slide 63: Hotels in Strategic Locations
Hotels in Strategic Locations United Kingdom Hotels Cambridge Manchester H Manchester Art Gallery H Media City UK Hilton Cambridge City Centre The Lowry Hotel voco Manchester – City Centre 63
Slide 64: Hotels in Strategic Locations
Hotels in Strategic Locations Germany Hotel Italy Hotel Munich Florence H H Pullman Hotel Munich Hotel Cerretani Firenze - MGallery 64
Slide 65: Resorts in Premium Destination
Resorts in Premium Destination Angsana Velavaru Malé Atoll 40-min seaplane flight 55-min domestic flight + 15-min R speedboat Raffles Maldives Meradhoo ride (1) South Nilandhe Atoll R Gan International Airport (1) Estimated duration based on non-stop flights from Velana International Airport. 65
Slide 66: Build-to-Rent Property in Up-and-Coming Neighbourhood
Build-to-Rent Property in Up-and-Coming Neighbourhood The Castings Manchester The Lowry Hotel The Castings B voco Manchester – City Centre Portugal Street East Strategic Regeneration Framework Manchester Piccadilly Station 66
Slide 67: THANK YOU
THANK YOU For investor relations matters, please contact: Tan Jo Lynn Investor Relations Telephone: (65) 6664 8890 Fax: (65) 6734 6785 Email: tanjolynn@cdlht.com 67
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