CDL Hospitality Trusts · SGX:J85

CDL Hospitality Trusts — FY2020 Earnings Presentation

62 slides from CDL Hospitality Trusts's earnings presentation, Jan 29, 2021

  1. Slide 1: 2H / FY 2020 Results Presentation

    2H / FY 2020 Results Presentation 29 January 2021

  2. 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

  3. 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$2.9 billion as at 31 December 2020. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”), a real estate investment

  4. 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 ARR refers to average room r

  5. Slide 5: Table of Contents

    Table of Contents  Key Highlights 6  Operating Performance & Portfolio Summary 11  Healthy Financial Position 19  Singapore Market 24  Overseas Markets 30  Asset Enhancement Plans 37  Annexe 40 − Background and Structure of CDL Hospitality Trusts 40 − Location of CDL Hospitality Trusts Proper

  6. Slide 6: Key Highlights

    CDL HOSPITALITY TRUSTS Key Highlights

  7. Slide 7: Key Highlights of the Year

    Key Highlights of the Year  Conclusion of the three deals during the year strengthened CDLHT’s balance sheet with a net cash inflow of S$83.3 million Completed  Completed the divestment of Novotel Singapore Divestment of Clarke Quay (“NCQ”) on 15 July 2020 Novotel Singapore  Divested for S$375.9

  8. Slide 8: Results Highlights (2H 2020)

    Results Highlights (2H 2020) Total Distribution (After DPS (1) Net Property Income Retention of Working Capital) 46.2% YoY 28.7% YoY 29.2% YoY S$ million S$ million S$ cents 59.0 4.86 80.0 73.6 60.0 5.00 42.1 3.44 60.0 4.00 39.6 40.0 3.00 40.0 20.0 2.00 20.0 1.00 0.0 0.0 0.00 2H 2019 2H 2020 2H 2019

  9. Slide 9: Results Highlights (FY 2020)

    Results Highlights (FY 2020) Total Distribution (After DPS (1) Net Property Income Retention of Working Capital) 50.9% YoY 44.8% YoY 45.1% YoY S$ million S$ million S$ cents 141.2 120.0 109.4 9.02 150.0 10.00 120.0 90.0 8.00 90.0 69.3 60.4 4.95 60.0 6.00 60.0 4.00 30.0 30.0 2.00 0.0 0.0 0.00 FY 2019

  10. Slide 10: Details of Distribution

    Details of Distribution  Distribution for the period 1 Jul 2020 to 31 Dec 2020 (after retention and including capital distribution) is 3.44 Singapore cents per Stapled Security comprising:  1.19 Singapore cents of taxable income + 0.61 Singapore cents of tax exempt income + 1.64 Singapore cents of

  11. Slide 11: Operating Performance & Portfolio Summary

    Operating Performance & Portfolio Summary 11

  12. Slide 12: RevPAR by Geography (Local Currency)

    RevPAR by Geography (Local Currency) RevPAR (1) 2H 2020 2H 2019 YoY Change FY 2020 FY 2019 YoY Change 5 SG Hotels (2) (S$) 65 162 -59.7% 70 153 -54.4% 6 SG Hotels (3) (S$) 82 177 -53.5% 79 162 -51.4% New Zealand (NZ$) 164 173 -5.5% 144 179 -19.2% Japan (¥) 2,287 7,516 -69.6% 2,906 7,850 -63.0% Maldi

  13. Slide 13: Quarterly RevPAR by Geography (Local Currency)

    Quarterly RevPAR by Geography (Local Currency) Singapore (S$) (1) New Zealand (NZ$) 100 91 89 (2) 200 176 177 75 80 151 59 150 60 64 66 100 73 Remains contracted as a 40 Staycation demand driving managed isolation business 20 ADR up in 4Q 2020 50 from 2Q 2020 0 0 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2

  14. Slide 14: Quarterly RevPAR by Geography (Local Currency)

    Quarterly RevPAR by Geography (Local Currency) United Kingdom (£) Germany (€) 100 80 77 61 80 New lockdowns New lockdowns 60 54 imposed in 4Q 2020 imposed in 4Q 2020 60 40 40 30 25 20 9 10 20 - 0 0 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Italy (€) 80 68 New lockdowns imposed

  15. Slide 15: NPI Performance by Geography

    NPI Performance by Geography 2H 2020 2H 2019 Change YoY FY 2020 FY 2019 Change YoY S$ ’000 S$ ’000 S$ ’000 Change S$ ’000 S$ ’000 S$ ’000 Change Singapore (1) 22,280 47,936 (25,656) -53.5% 42,864 87,880 (45,016) -51.2% New Zealand 10,947 7,843 3,104 39.6% 16,507 16,320 187 1.1% Australia (2) 3,925 4

  16. Slide 16: Breakdown of NPI by Geography

    Breakdown of NPI by Geography Breakdown of Portfolio NPI by Geography for FY 2019 and FY 2020 (1) FY 2019 NPI – S$141.2 million FY 2020 NPI – S$69.3 million Other Asia Other Asia Europe Maldives: -0.9% Europe Maldives: -3.8% -3.2% Japan: 2.7% UK: 9.0% Japan: 0.5% 5.5% UK: -0.5% Germany: 3.9% (2) Ger

  17. Slide 17: Portfolio Valuation

    Portfolio Valuation 8.8% YoY Decline in Portfolio Valuation due to Divestments & Impact of Pandemic S$ M 3,000 2,847 2,743 2,783 CAGR = 8.1% (1) 225 2,597 213 230 2,469 2,438 2,500 2,355 197 443 2,239 270 248 375 451 258 421 2,030 2,045 179 133 111 2,000 328 343 335 327 450 363 1,787 355 350 395 263

  18. Slide 18: Geographically Diversified Portfolio

    Geographically Diversified Portfolio Breakdown of Portfolio Valuation as at 31 Dec 2020 Singapore 66.1% Oceania 10.1% Orchard Hotel 17.1% New Zealand – Grand 7.2% Other Asia Millennium Auckland Grand Copthorne Waterfront Hotel 13.6% Singapore Oceania Australia 2.9% W Hotel 12.1% Mercure Perth 1.8% M

  19. Slide 19: Healthy Financial Position

    Healthy Financial Position 19

  20. Slide 20: Healthy Financial Metrics

    Healthy Financial Metrics  Healthy balance sheet with gearing of 37.5% and comfortable debt headroom of S$689.0 million  Cash reserves of S$131.1 million and S$701.9 million (1) of credit facilities  Sound financial metrics allow CDLHT to weather impact of pandemic Key Financial Indicators As at

  21. Slide 21: Diversified Sources of Debt Funding

    Diversified Sources of Debt Funding Debt Facility Details as at 31 Dec 2020 Multi-currency MTN Programme / Issued / Utilised Unissued / Unutilised Tenure (years) Facilities Amount Amount S$1 billion MTN - - S$1.0B S$450 million RCF (Committed) S$148.1M 2 to 3 S$301.9M S$400 million Bridge Facility -

  22. Slide 22: Debt Maturity Profile as at 31 Dec 2020

    Debt Maturity Profile as at 31 Dec 2020  Successfully refinanced JPY6.4 billion (S$81.7 million) 5-year borrowings in Sep 2020  In 4Q 2020, ~S$82.6 million proceeds from the divestments were used to reduce the RCF  Further strengthens CDLHT’s balance sheet and enhances its financial flexibility 

  23. Slide 23: Debt Profile as at 31 Dec 2020

    Debt Profile as at 31 Dec 2020 Debt Currency Profile (1)(2)(3) Interest Rate Profile (1)(2) JPY Fixed Rate Floating Rate 7.9% Borrowings Borrowings USD 12.5% SGD 51.3% 48.7% SGD 35.9% USD 66.9% 33.1% GBP 44.1% 55.9% GBP JPY 100.0% 0.0% 21.4% EUR (4) 97.8% 2.2% Blended Total 66.0% 34.0% (4) EUR 22.4%

  24. Slide 24: Singapore Market

    CDL HOSPITALITY TR USTS Singapore Market 24

  25. Slide 25: International Arrivals Have Fallen Dramatically

    International Arrivals Have Fallen Dramatically  Visitor arrivals to Singapore fell 85.7% YoY to 2.7 million for 2020 (1)  Singapore has been actively stepping up its border reopening efforts with bilateral or unilateral travel arrangements Annual International Visitor Arrivals to Singapore (1) Mi

  26. Slide 26: CDLHT Singapore Properties Performance

    CDLHT Singapore Properties Performance 2H 2020 2H 2019 YoY Change FY 2020 FY 2019 YoY Change 5 SG Hotels (1) Occupancy (2) 89.6% 88.6% 1.0pp 79.6% 86.8% -7.2pp ARR (S$) 73 182 -60.1% 88 177 -50.3% RevPAR (S$) (2) 65 162 -59.7% 70 153 -54.4% 6 SG Hotels (5 SG Hotels + W Hotel) Occupancy (3) 86.1% 88.

  27. Slide 27: Plans to Support Singapore's Tourism Industry Recovery

    Plans to Support Singapore’s Tourism Industry Recovery  Travel arrangements in place for 11 countries currently Resuming  Bilateral (for essential & business purposes, e.g. China, Malaysia, International Indonesia, Japan, Brunei, Germany & South Korea) Travel  Unilateral (e.g. NZ, Australia, Taiw

  28. Slide 28: Limited Growth in Singapore Hotel Room Supply

    Limited Growth in Singapore Hotel Room Supply  An estimated 146 rooms opening this year, representing approximately 0.2% of existing room stock (1)  Supply growth going forward is benign at a low CAGR of 1.7% for the next 3 years Current and Expected Hotel Room Supply in Singapore (1) No. of Hotel

  29. Slide 29: Potential Supply of New Singapore Hotel Rooms Until 2024

    Potential Supply of New Singapore Hotel Rooms Until 2024 No. of Horwath Expected No. of Horwath Expected Name of Hotel Location Name of Hotel Location Rms Rating Opening Rms Rating Opening Upscale / Pan Pacific Orchard Hotel Upscale / The Clan 324 City Centre 2Q 2021 340 City Centre 2022 Luxury Rede

  30. Slide 30: Overseas Markets

    CDL HOSPITALITY TR USTS Overseas Markets 30

  31. Slide 31: CDLHT New Zealand Hotel Performance

    CDLHT New Zealand Hotel Performance New Zealand Hotel 2H 2020 2H 2019 YoY Change FY 2020 FY 2019 YoY Change RevPAR (NZ$) 164 173 -5.5% 144 179 -19.2% NPI (S$ ’000) 10,947 7,843 39.6% 16,507 16,320 1.1%  Grand Millennium Auckland was contracted as a managed isolation facility throughout 2H 2020  He

  32. Slide 32: CDLHT Australia Hotels Performance

    CDLHT Australia Hotels Performance Australia Hotels 2H 2020 2H 2019 YoY Change FY 2020 FY 2019 YoY Change NPI (S$ ’000) 3,925 4,515 -13.1% 8,358 9,139 -8.5%  Essentially fixed rent structure insulates CDLHT from the underlying trading conditions  Contribution for 2H 2020 lower due to the divestmen

  33. Slide 33: CDLHT Maldives Resorts Performance

    CDLHT Maldives Resorts Performance Maldives Resorts 2H 2020 2H 2019 YoY Change FY 2020 FY 2019 YoY Change RevPAR (US$) (1) 44 112 -60.7% 69 151 -54.1% NPI (S$ ’000) (1,258) (971) N.M (2,621) (1,312) N.M  Whilst arrivals decreased by 79.5% compared to 2H 2019, there has been gradual recovery with ar

  34. Slide 34: CDLHT Japan Hotels Performance

    CDLHT Japan Hotels Performance Japan Hotels 2H 2020 2H 2019 YoY Change FY 2020 FY 2019 YoY Change RevPAR (¥) 2,287 7,516 -69.6% 2,906 7,850 -63.0% NPI (S$ ’000) 67 1,776 -96.2% 381 3,792 -90.0%  Japan Hotels experienced an increase in business volumes in 4Q 2020 after Tokyo’s inclusion in the “Go T

  35. Slide 35: CDLHT UK Hotels Performance

    CDLHT UK Hotels Performance UK Hotels 2H 2020 2H 2019 YoY Change FY 2020 FY 2019 YoY Change RevPAR (£) 42 135 -68.8% 40 128 -68.5% NPI (S$ ’000) 520 6,718 -92.3% (312) 12,663 N.M  Resurgence of the pandemic resulted in a second nationwide lockdown from 5 Nov 2020  Hilton Cambridge City Centre rema

  36. Slide 36: CDLHT Germany and Italy Hotels Performance

    CDLHT Germany and Italy Hotels Performance Germany Hotel 2H 2020 2H 2019 YoY Change FY 2020 FY 2019 YoY Change RevPAR (€) 18 111 -84.1% 27 109 -75.5% NPI (S$ ’000) 1,507 4,440 -66.1% 2,676 9,862 -72.9% Italy Hotel 2H 2020 2H 2019 YoY Change FY 2020 FY 2019 YoY Change RevPAR (€) 13 157 -91.8% 23 158

  37. Slide 37: Asset Enhancement Plans

    CDL HOSPITALITY TR USTS Asset Enhancement Plans 37

  38. Slide 38: Asset Enhancement Plans – Raffles Maldives Meradhoo

    Asset Enhancement Plans – Raffles Maldives Meradhoo New 3-Bedroom Presidential Villa: Raffles Royal Residence  Increased villa count from 37 to 38  Raffles Royal Residence welcomed its first guests in Dec 2020 Raffles Royal Residence Private Beach, Raffles Royal Residence 38

  39. Slide 39: Asset Enhancement Plans – Raffles Maldives Meradhoo (Con't)

    Asset Enhancement Plans – Raffles Maldives Meradhoo (Con’t) New 3-Bedroom Presidential Villa: Raffles Royal Residence  40-metre pool and a private beach  Enhanced product offering positioned for an eventual recovery Bedroom, Raffles Royal Residence 40-metre private pool, Raffles Royal Residence 39

  40. Slide 40: Background and Structure of CDL Hospitality Trusts

    Background and Structure of CDL Hospitality Trusts 40

  41. Slide 41: Background on CDLHT

    Background on CDLHT Background Price Performance Announcement of  IPO on 19 July 2006 W Singapore - Sentosa Cove Acquisition and Announcement of Redevelopment of $2.00  Listed on SGX The Lowry Hotel Acquisition Novotel Singapore Clarke Quay COVID-19 Pandemic Mainboard $1.80  Sponsored by Announce

  42. Slide 42: CDLHT Structure

    CDLHT Structure Sponsor Investors ≈38.23% Holdings of Stapled Securities ≈61.77% as at 31 Dec 2020 as at 31 Dec 2020 H-REIT Distributions HBT Acts on behalf of DBS Trustee the holders of H- REIT Units Stapling Deed Management Management services M&C REIT M&C Business Trust Management Limited service

  43. Slide 43: Blue Chip Sponsor and Parentage

    Blue Chip Sponsor and Parentage Millennium & Copthorne Hotels Limited City Developments Limited  Internationally recognised hospitality and real estate group which owns as well as operates,  One of the largest property developers in manages or franchises a portfolio of over 130 Singapore with a ma

  44. Slide 44: Management Strategy

    Management Strategy Acquisition Growth Asset Management 1 Strategy 2 Strategy  Pursue quality assets with growth potential  Work closely with lessees and/or hotel managers to implement  Adopt a medium to long term active revenue and cost perspective to ride through market management cycles  Impl

  45. Slide 45: CDLHT Asset Portfolio – Singapore

    CDLHT Asset Portfolio – Singapore Grand Copthorne W Singapore – Claymore Singapore Properties Orchard Hotel Copthorne M Hotel Studio M Hotel King’s Hotel Sentosa Cove Connect Portfolio Waterfront Hotel Located on Luxury lifestyle One of the largest Located in the Located within Orchard Road, Stylish

  46. Slide 46: 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 New Zealand’s largest deluxe hotel Description walking distance to the Swan River, Mur

  47. Slide 47: 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 Located near Keik

  48. Slide 48: CDLHT Asset Portfolio – Overseas

    CDLHT Asset Portfolio – Overseas Hilton Cambridge The Lowry Pullman Hotel Hotel Cerretani United Kingdom Europe Properties City Centre Hotel Munich Firenze CDLHT Portfolio Portfolio Portfolio (United Kingdom) (United Kingdom) (Germany) (3) (Italy) (3) Iconic 5-star luxury Upper upscale hotel 4-star

  49. Slide 49: 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 July 2006) with 20-year option Claymore Co

  50. Slide 50: Summary of Leases

    Summary of Leases Grand Millennium Auckland: New Zealand  Rent: Net operating profit of the hotel with an annual base rent of NZ$6.0 million Grand Millennium  First 3-year term expired on 6 September 2019; lease provides for two 3-year renewal terms, subject to mutual agreement Auckland  Lease re

  51. Slide 51: Summary of Leases

    Summary of Leases Germany Pullman Hotel Munich: Pullman Hotel  Rent: Around 90% of the net operating profit of the hotel subject to an annual fixed rent of €3.6 million  Term of 20 years from 14 July 2017, expiring 13 July 2037 Munich Italy Hotel Cerretani Firenze - MGallery: Hotel Cerretani  Ren

  52. Slide 52: Summary of Management Agreements

    Summary of Management Agreements W Singapore - Sentosa Cove:  HBT’s subsidiary is the lessee for the hotel's operations Singapore  Operated by Luxury Hotels International of Hong Kong Limited, an indirect wholly-owned subsidiary of Marriott W Singapore - International, Inc.  Term of ~20.3 years f

  53. Slide 53: 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

  54. Slide 54: 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

  55. Slide 55: Location of CDL Hospitality Trusts Properties

    Location of CDL Hospitality Trusts Properties 55

  56. Slide 56: Hotels in Strategic Locations

    Hotels in Strategic Locations Singapore Hotels Orchard Hotel & Claymore Connect H Studio M Hotel Grand Copthorne Waterfront Hotel H H SINGAPORE H RIVER Copthorne CENTRAL MARINA BAY SANDS BUSINESS King’s Hotel DISTRICT H M Hotel SENTOSA H W Singapore - ISLAND Sentosa Cove 56

  57. Slide 57: Hotels in Strategic Locations

    Hotels in Strategic Locations New Zealand Hotel Australia Hotels Mercure Grand Millennium Ibis Perth Perth Auckland Perth CBD H H H CBD AREA AUCKLAND CITY CENTRE 57

  58. Slide 58: Hotels in Strategic Locations

    Hotels in Strategic Locations Japan Hotels Hotel MyStays Hotel MyStays Asakusabashi Kamata Asakusabashi Kamata H H 58

  59. Slide 59: Hotels in Strategic Locations

    Hotels in Strategic Locations United Kingdom Hotels Cambridge Manchester H Hilton Cambridge City Centre The Lowry Hotel 59

  60. Slide 60: Hotels in Strategic Locations

    Hotels in Strategic Locations Germany Hotel Italy Hotel Munich Florence H H Pullman Hotel Munich Hotel Cerretani Firenze - MGallery 60

  61. Slide 61: Resorts in Premium Destination

    Resorts in Premium Destination Angsana Velavaru Malé Atoll 40 min seaplane flight 55 min domestic flight + 15 min speedboat R ride Raffles Maldives Meradhoo South Nilandhe Atoll R Gan International Airport 61

  62. Slide 62: Thank You

    CDL HOSPITALITY TRUSTS THANK YOU 62

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