Capitaland Ascott Trust · SGX:HMN
Capitaland Ascott Trust — Merger or Acquisition (October 2024)
27 slides from Capitaland Ascott Trust's merger presentation, Oct 29, 2024
Slide 1: Proposed Acquisition of lyf Funan Singapore
CapitaLand Ascott Trust Proposed Acquisition of lyf Funan Singapore 29 October 2024
Slide 2: Important Notice
Important Notice This presentation may contain forward-looking statements. 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 assumptions. Representative examples of these factor
Slide 3: Table of Content
Table of Content 01 Portfolio Overview & Strategy 02 The Proposed Acquisition 03 Rationale for and Benefits of the Proposed Acquisition 04 Conclusion Capitalised terms used herein, but not otherwise defined, shall have the meanings ascribed to them in the Circular dated 29 Oct 2024 and titled "The p
Slide 4: Portfolio Overview & Strategy
Portfolio Overview & Strategy
Slide 5: CapitaLand Ascott Trust's Positioning
CapitaLand Ascott Trust’s Positioning Predominantly anchored in Asia Pacific, marrying growth with stability Geographical Allocation Target Asset Allocation Predominantly in Asia Pacific Global in Longer-stay 25-30% in rental housing and Remainder in Europe/USA accommodation student accommodation pr
Slide 6: Proactive Investment & Portfolio Reconstitution
Proactive Investment & Portfolio Reconstitution Building a stronger portfolio, enhancing the quality and performance of CLAS’ properties Asset Divestment Investment Enhancement Investing in quality properties Asset enhancement to drive Divestments to unlock value at higher yields returns • Divesting
Slide 7: Over S$400 mil in Divestments Year-to-Date
Over S$400 mil in Divestments Year-to-Date Divesting at premium to book value, unlocking over S$50 mil in net gains Recently announced in Oct 2024 • Courtyard by Marriott • Hotel WBF Kitasemba Sydney-North Ryde East Citadines Somerset (CMSNR) Citadines Mount Sophia • Hotel WBF Kitasemba Karasuma-Goj
Slide 8: Investments Year-to-Date
Investments Year-to-Date Acquiring accretively in key cities with strong demand drivers Remaining 10% stake in Teriha Ocean Stage Standard at Columbia Fukuoka, Japan South Carolina, USA • CLAS’ development project, 678-bed • Completed turnkey acquisition of Standard at Columbia, was completed 258-un
Slide 9: Asset Enhancement & Development Initiatives
Asset Enhancement & Development Initiatives Uplifting the value and profitability of properties in prime locations of key gateway cities Development of Asset Enhancement Initiatives Somerset Liang Court Singapore • Total capital expenditure of c.S$250 mil for the 8 AEIs partially funded by master le
Slide 10: The Proposed Acquisition
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Slide 11: lyf Funan Singapore
lyf Funan Singapore Accretive acquisition in the heart of Singapore’s Civic District Location 67 Hill Street, Level 4 Funan, Singapore 179370 Lodging type Hotel Year built 2019 Upon completion of the Proposed Acquisition, the Master Master Lease in Lease will be entered into with lyf Funan Managemen
Slide 12: Method of Financing
Method of Financing Purchase consideration largely funded by divestment proceeds; aggregate leverage remains below 40% Total Acquisition Outlay (S$’ mil) Purchase consideration 146.41 Loan repayment 113.0 Professional and other fees and expenses (inclusive of debt financing-related • Purchase consid
Slide 13: Rationale for & Benefits of the Proposed Acquisition
Rationale for & Benefits of the Proposed Acquisition
Slide 14: Enhancing DPS through Portfolio Reconstitution
1 Enhancing DPS through Portfolio Reconstitution Divesting at exit yield of 3.2% and re-investing proceeds at EBITDA yield of 4.7% Distribution per Stapled Security (DPS) (Singapore cents) on a FY 2023 pro forma basis +1.5% 4.7%1 +1.5% DPS accretion EBITDA yield 6.57 6.67 on a FY 2023 pro forma basi
Slide 15: Increasing Exposure to a Key Gateway City with Favourable Demand-Supply Dynamics
2 Increasing Exposure to a Key Gateway City with Favourable Demand-Supply Dynamics Robust performance of Singapore’s hotel industry Singapore Market International RevPAR (S$) Visitor Arrivals (mil) • Market revenue per available room (RevPAR) of 250 230 25 Singapore hotels exceeded 2019 levels by 16
Slide 16: Increasing Exposure to a Key Gateway City: Demand Outpacing Supply
2 Increasing Exposure to a Key Gateway City with Favourable Demand-Supply Dynamics Growth in demand expected to outpace that of supply Singapore remains a global hub with inbound travel demand New room supply beyond 2024 is expected to be muted boosted by new attractions and infrastructure projects
Slide 17: Balancing contribution from Singapore and overseas markets
2 Increasing Exposure to a Key Gateway City with Favourable Demand-Supply Dynamics Balancing contribution from Singapore and overseas markets Proportion of CLAS’ Total Assets in Singapore (as at 30 Jun 2024) Singapore After the Proposed Acquisition, CLAS’ proportion of total assets 16% in Singapore
Slide 18: Prime Asset in an Attractive Location
3 Prime Asset in an Attractive Location Close to Singapore’s landmarks and attractions, and well-served by public transportation Singapore Management University Suntec City & Located in the heart of Singapore’s Civic District Convention Fort Canning Centre • lyf Funan Singapore is in proximity to an
Slide 19: Prime Asset in an Attractive Location: Integrated Development
3 Prime Asset in an Attractive Location Supported by amenities within the integrated development Part of Funan, an integrated development • lyf Funan Singapore sits within Funan, an integrated development which reopened in 2019 after a redevelopment • The experiential retail component offers lyf Fun
Slide 20: Flagship lyf Property…
4 Flagship lyf Property… Operating on a flex-hybrid hotel-in-residence model, the lyf brand captures the demand for experience-led social living Experience-led social living as seen in lyf (pronounced ‘life’), focuses on fostering a sense of community through shared, dynamic experiences. Stay-work-p
Slide 21: …With Ability to Capture Wide Range of Demand
4 …With Ability to Capture Wide Range of Demand With a hotel licence, the property caters to both short and long stays Flexibility to cater to short and extended stays Surpassing performance of sub-market • The property’s hotel licence allows it to cater to different guest profiles, • lyf Funan Sing
Slide 22: Conclusion
Ascott Trust
Slide 23: Key Takeaways
Key Takeaways Delivering growth and enhancing returns through portfolio reconstitution CLAS is poised for sustained growth Rationale for & Benefits of Proposed Acquisition CLAS remains optimistic on the demand for lodging Increasing exposure Enhancing DPS to a key gateway city Diversification and ba
Slide 24: Next Steps
Next Steps Stapled Securityholders’ approval is required for the Proposed Transactions Event Date Notice of Extraordinary General Meeting1 Tuesday, 29 Oct 2024 Last date and time of lodgment of proxy forms Saturday, 16 Nov 2024, 2.00 p.m. (Singapore time) Monday, 18 Nov 2024, 2.00 p.m (Singapore tim
Slide 25: For Stapled Securityholders' Approval
For Stapled Securityholders’ Approval Ordinary Resolution The Proposed Acquisition of 100.0% of the issued units in Victory SR Trust, which directly holds 100.0% of the interest in lyf Funan Singapore, and entry into the Master Lease, as an interested person transaction C a p i t a L a n d A s c o t
Slide 26: Advice of Independent Financial Adviser and Recommendation of Independent Directors
Advice of Independent Financial Adviser and Recommendation of Independent Directors Advice of the Independent Financial Adviser – PricewaterhouseCoopers Corporate Finance Pte. Ltd. • The Proposed Transactions are on normal commercial terms and are not prejudicial to the interests of CLAS and its min
Slide 27: Thank You
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