Cdl Hospitality Trusts · SGX:J85

Cdl Hospitality Trusts — H1 2024 Earnings Presentation

65 slides from Cdl Hospitality Trusts's earnings presentation, Jul 30, 2024

  1. Slide 1: 1H 2024 Results Presentation

    1H 2024 Results Presentation 30 July 2024

  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$3.3 billion as at 30 June 2024. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”), a real estate investment trus

  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 ADR refers to average daily

  5. Slide 5: Table of Contents

    Table of Contents  Portfolio Performance & Summary 6  Healthy Financial Position 14  Key Markets Update 19  Other Highlights 32  Concluding Remarks 37  Annexe 39 − Background and Structure of CDL Hospitality Trusts 39 − Location of CDL Hospitality Trusts Properties 57 5

  6. Slide 6: Portfolio Performance & Summary

    Portfolio Performance & Summary 6

  7. Slide 7: Key Highlights

    Key Highlights 1H 2024 1H 2023 Better / (Worse) Net Property Income (S$ ’000) 66,533 62,854 5.9% Total Distribution 31.4 31.2 0.7% (after retention) (S$ ’m) Total distribution per Stapled Security 2.51 2.51 - (after retention) (cents)  Although the pent-up demand post-pandemic tapered off in most m

  8. Slide 8: Details of Distribution

    Details of Distribution  Distribution for the period 1 Jan 2024 to 30 Jun 2024 (after retention and including capital distribution) is 2.51 Singapore cents per Stapled Security comprising:  2.07 Singapore cents of taxable income + 0.44 Singapore cents of capital distribution (1) August 2024 Mon Tu

  9. Slide 9: YoY RevPAR by Geography (Local Currency)

    YoY RevPAR by Geography (Local Currency) Better / Better / RevPAR 2Q 2024 2Q 2023 1H 2024 1H 2023 (Worse) (Worse) Singapore (S$) 180 182 (0.9)% 193 179 7.7% New Zealand (NZ$) 109 113 (4.4)% 137 139 (1.2)% Australia (A$) 107 86 24.2% 118 104 13.9% Japan (¥) 10,806 9,036 19.6% 10,410 8,299 25.4% Maldi

  10. Slide 10: Quarterly RevPAR by Geography (Local Currency)

    Quarterly RevPAR by Geography (Local Currency) Singapore (S$) New Zealand (NZ$) Normalizing of post-pandemic pent Rooms refurbishment commenced mid-Apr up demand 300 250 238 250 200 207 197 205 180 195 160 150 200 166 176 182 150 150 180 174 164 109 143 162 155 100 128 100 113 50 50 1Q 2Q 3Q 4Q 1Q 2

  11. Slide 11: Quarterly RevPAR by Geography (Local Currency)

    Quarterly RevPAR by Geography (Local Currency) Maldives (US$) United Kingdom (£) (1) Stable against last year Supported by both leisure and corporate demand 600 200 517 500 152 155 463 141 400 314 150 132 300 254 106 140 269 136 130 200 257 100 104 222 181 104 100 92 69 0 50 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

  12. Slide 12: NPI Performance by Geography

    NPI Performance by Geography 2Q 2024 2Q 2023 Change Better / 1H 2024 1H 2023 Change Better / S$ ’000 S$ ’000 S$ ’000 (Worse) S$ ’000 S$ ’000 S$ ’000 (Worse) Singapore 19,251 19,129 122 0.6% 41,301 38,681 2,620 6.8% New Zealand 908 948 (40) (4.2)% 3,143 3,652 (509) (13.9)% Australia 959 370 589 159.2

  13. Slide 13: NPI Performance by Geography (Con't)

    NPI Performance by Geography (Con’t) Breakdown of Portfolio NPI by Country for 1H 2024 Singapore 62.1% Oceania 8.1% Europe 19.1% Other Asia 10.7% United Kingdom 9.3% Singapore Germany 6.0% (1) 62.1% Italy 3.9% (1) 1H 2024 NPI Other Asia 10.7% S$66.5 million Maldives 7.3% Europe 19.1% Japan 3.3% Ocea

  14. Slide 14: Healthy Financial Position

    Healthy Financial Position 14

  15. Slide 15: Healthy Financial Metrics

    Healthy Financial Metrics As at 30 June 2024 37.7% ~S$713.4M Gearing (1) Cash & Available Credit Facilities (3) (S$783M Debt Headroom to 50% Gearing) Sound Financial 4.2% Metrics and +/- 0.88 cents Impact to DPS for Every 1% Change in Weighted Average Cost of Debt Healthy Liquidity All-in Interest C

  16. Slide 16: Diversified Sources of Debt Funding

    Diversified Sources of Debt Funding Debt Facility Details as at 30 June 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$262.1M 3 S$237.9M (2) £60.2 million Term Facility

  17. Slide 17: Debt Maturity Profile as at 30 Jun 2024

    Debt Maturity Profile as at 30 Jun 2024  The EUR/USD Term loan (fixed via a cross currency swap) has already been re-financed in July 2024, and re-financing for the upcoming SGD Term Loan due in Aug 2024 is nearing completion  Actively engaging banks to refinance the remaining loans maturing in FY

  18. Slide 18: Debt Profile as at 30 Jun 2024

    Debt Profile as at 30 Jun 2024 Debt Currency Profile (1) Interest Rate Profile (1) Fixed Rate Floating Rate Borrowings Borrowings JPY 4.5% USD SGD 29.5% 70.5% 12.3% USD 59.7% 40.3% SGD 36.8% GBP 41.5% 58.5% EUR (2) 17.6% JPY 100.0% 0.0% EUR (2) 98.6% 1.4% Blended Total 52.0% 48.0% GBP 28.8% (1) Base

  19. Slide 19: Key Markets Update

    CDL HOSPITALITY TRUSTS Key Markets Update 19

  20. Slide 20: CDLHT Singapore Properties Performance

    CDLHT Singapore Properties Performance Singapore Hotels 1H 2024 1H 2023 Better / (Worse) Occupancy 78.4% 69.2% 9.2pp ADR (S$) 246 258 (4.9)% RevPAR (S$) 193 179 7.7% Singapore Portfolio 1H 2024 1H 2023 Better / (Worse) NPI (S$ ’000) 41,301 38,681 6.8%  1H 2024 RevPAR growth YoY: +7.7%, driven by in

  21. Slide 21: 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 16.4 16.5 15.6 15.1 15.2 14.5 13.6 15.0 13.2 11.6 9.3 10.0 8.2 6.3 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 Visito

  22. Slide 22: Geographical Mix of Top Markets (Singapore)

    Geographical Mix of Top Markets (Singapore) Top 10 Inbound Markets YTD Jun 2024 – 8.2 Million Visitor Arrivals  Recovery of inbound visitors from China, Singapore's largest source market of foreign visitors China pre-pandemic, is at 79.8% of YTD Jun 2019 arrivals Others 17.5% 25.3%  Mutual 30-day

  23. Slide 23: Singapore's Tourism Growth Drivers

    Singapore’s Tourism Growth Drivers  Terminal 2 (Expansion – Opened Nov 2023): Increased capacity by 5 million to 28 million passenger movements per year (T1 to T4 current capacity: 90 million) Changi Airport  Terminal 5 (New): Additional 50 million passengers per year, slated to be operational aro

  24. Slide 24: Growth in Singapore Hotel Room Supply

    Growth in Singapore Hotel Room Supply  An estimated 4.6% net supply was added to Singapore’s room inventory in the 12-month period from 1 Jul 2023 to 30 Jun 2024 which has increased competition in the hotel accommodation space  Estimated 496 rooms opening from Jul to Dec 2024, representing approxi

  25. Slide 25: 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 Grand Hyatt Singapore 292 Upscale/Luxury City Centre 3Q 2024 Grand Hyatt Singapore 407 Upscale/Luxury City Cent

  26. Slide 26: CDLHT New Zealand Hotel Performance

    CDLHT New Zealand Hotel Performance New Zealand Hotel 1H 2024 1H 2023 Better / (Worse) RevPAR (NZ$) 137 139 (1.2)% NPI (S$ ’000) 3,143 3,652 (13.9)%  RevPAR decreased marginally by 1.2% YoY in 1H 2024  1H 2024 NPI decreased by 13.9% or S$0.5 million YoY:  Increased operating expenses, particularl

  27. Slide 27: CDLHT Australia Hotels Performance

    CDLHT Australia Hotels Performance Australia Hotels 1H 2024 1H 2023 Better / (Worse) RevPAR (A$) 118 104 13.9% NPI (S$ ’000) 2,268 1,816 24.9%  RevPAR increased by 13.9% YoY on the back of robust occupancy growth from a strong event calendar  Room renovations have commenced at Ibis Perth from mid-

  28. Slide 28: CDLHT Japan Hotels Performance

    CDLHT Japan Hotels Performance Japan Hotels 1H 2024 1H 2023 Better / (Worse) RevPAR (¥) 10,410 8,299 25.4% NPI (S$ ’000) 2,222 1,790 24.1%  Japan continued to experience robust inbound demand. 17.7 million visitors were received in 1H 2024, up 65.9% YoY and up 6.9% against 2019 (1)  RevPAR increas

  29. Slide 29: CDLHT Maldives Resorts Performance

    CDLHT Maldives Resorts Performance Maldives Resorts 1H 2024 1H 2023 Better / (Worse) RevPAR (US$) 386 359 7.4% NPI (S$ ’000) 4,868 4,656 4.6% InOcean Villas, Angsana Velavaru  1H 2024 RevPAR increased by 7.4% YoY, on the back of a 9.2% growth in visitor arrivals (1)  1H 2024 NPI grew by 4.6% or S$

  30. Slide 30: CDLHT UK Hotels Performance

    CDLHT UK Hotels Performance UK Hotels 1H 2024 1H 2023 Better / (Worse) RevPAR (£) (1) 128 122 4.7% NPI (S$ ’000) 6,207 6,209 (0.0)%  Hilton Cambridge City Centre and The Lowry Hotel achieved a collective RevPAR growth of 4.7% YoY  NPI for the UK Hotels was flat YoY due to increased operating costs

  31. Slide 31: CDLHT Germany and Italy Hotels Performance

    CDLHT Germany and Italy Hotels Performance Germany Hotel 1H 2024 1H 2023 Better / (Worse) RevPAR (€) 94 86 9.0% NPI (S$ ’000) 3,959 3,581 10.6% Italy Hotel 1H 2024 1H 2023 Better / (Worse) RevPAR (€) 232 210 10.5% NPI (S$ ’000) 2,565 2,469 3.9%  Pullman Hotel Munich: RevPAR increased by 9.0% YoY in

  32. Slide 32: Other Highlights

    CDL HOSPITALITY TRUSTS Other Highlights 32

  33. Slide 33: The Castings – UK Residential Build-to-Rent

    The Castings – UK Residential Build-to-Rent The Castings: Update The Castings  Practical completion achieved on 4 Jun with first residents moving into the building on 16 Jul 2024  Leasing activity is healthy and the opening has coincided with the active leasing summer season  Total project cost (

  34. Slide 34: Asset Enhancement Plans – Ibis Perth

    Asset Enhancement Plans – Ibis Perth Rooms Refurbishment  Renovation of 192 rooms (May to Nov 24)  Renovation of public areas, restaurant and bar being planned to re-position the hotel Standard Queen Room (before) Standard Queen Room (mockup) 34

  35. Slide 35: Asset Enhancement Plans – Grand Millennium Auckland

    Asset Enhancement Plans – Grand Millennium Auckland Progressive Transformation in Phases  First phase of rooms renovation from Apr to Oct 2024  Ballroom renovation completed in Apr 2024  Public area works including meeting rooms to be carried out in the coming months Ballroom (before) Ballroom (a

  36. Slide 36: Commitment to ESG

    Commitment to ESG Green Initiatives Reporting M&C Hotels Task Force on Climate-Related Financial  All M&C Hotels BCA Green Mark certified Disclosures (TCFD):  Singapore Hotel Sustainability Award 2024: GCW, MHS and OHS  Adoption of TCFD Framework in climate risk  Awarded Global Sustainable Touri

  37. Slide 37: Concluding Remarks

    CDL HOSPITALITY TRUSTS Concluding Remarks 37

  38. Slide 38: Concluding Remarks

    Concluding Remarks  Further growth potential for Singapore visitor arrivals :  Arrivals are still behind 2019; 88.4% of pre-pandemic levels (1) Singapore Portfolio  Due to weak Chinese economy, Chinese arrivals recovery are still only at 79.8% of 2019 level (CDLHT’s core assets in 1H 2024 (1) ~66

  39. Slide 39: Background and Structure of CDL Hospitality Trusts

    Background and Structure of CDL Hospitality Trusts 39

  40. Slide 40: Background on CDLHT

    Background on CDLHT Background Price Performance  IPO on 19 Jul 2006  Listed on SGX $2.00 Announcement of Announcement of W Singapore - Sentosa COVID-19 Mainboard The Lowry Hotel Acquisition Cove Acquisition and Pandemic $1.80  Sponsored by Announcement of Cambridge City Millennium & $1.60 Hotel

  41. Slide 41: CDLHT Structure

    CDLHT Structure Sponsor Investors ≈28.29% Holdings of Stapled Securities ≈71.71% as at 30 Jun 2024 as at 30 Jun 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 Management Limited services H-REIT Rent HBT A

  42. Slide 42: 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

  43. Slide 43: 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

  44. Slide 44: 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

  45. Slide 45: 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

  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 Murray One of New Zealand’s largest deluxe Description walking distance to the Swan Ri

  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 access Located ne

  48. Slide 48: 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

  49. Slide 49: 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

  50. Slide 50: 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

  51. Slide 51: 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

  52. Slide 52: 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

  53. Slide 53: 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

  54. Slide 54: 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

  55. Slide 55: 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

  56. Slide 56: 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

  57. Slide 57: Location of CDL Hospitality Trusts Properties

    Location of CDL Hospitality Trusts Properties 57

  58. Slide 58: 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 Copthorne CENTRAL BUSINESS King’s Hotel DISTRICT H M Hotel SENTOSA ISLAND H W Singapore - Sentosa Cove 58

  59. Slide 59: 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 59

  60. Slide 60: Hotels in Strategic Locations

    Hotels in Strategic Locations Japan Hotels Hotel MyStays Hotel MyStays Asakusabashi Kamata Asakusabashi Kamata H H 60

  61. Slide 61: 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 61

  62. Slide 62: Hotels in Strategic Locations

    Hotels in Strategic Locations Germany Hotel Italy Hotel Munich Florence H H Pullman Hotel Munich Hotel Cerretani Firenze - MGallery 62

  63. Slide 63: 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. 63

  64. Slide 64: 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 64

  65. Slide 65: 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 65

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