Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Ascendas Hospitality Trust — Q1 FY2016/17 Earnings Presentation
28 slides from Singapore Exchange's earnings presentation, Aug 4, 2016
Slide 1: 1Q FY2016/17 Financial Results Presentation
1Q FY2016/17 Financial Results Presentation 4 August 2016 SYDNEY • MELBOURNE • BRISBANE • BEIJING • TOKYO • OSAKA• SINGAPORE 1
Slide 2: Disclaimer
Disclaimer This presentation shall be read in conjunction with A-HTRUST’s Unaudited Financial Results for the First Quarter ended 30 June 2016 (“1Q FY2016/17”) a copy of which is available on www.sgx.com or www.a-htrust.com. This presentation may contain forward-looking statements that involve risks
Slide 3: Contents
Contents 1 Key Highlights 2 Financial Review 3 Portfolio Performance 4 Capital Management 5 Looking Ahead 3
Slide 4: Overview of Ascendas Hospitality Trust
Overview of Ascendas Hospitality Trust A hospitality trust with a focus on pan-Asian region Beijing S$756 million • Novotel Beijing Sanyuan Market capitalisation as at 30 June 2016 • Ibis Beijing Sanyuan Tokyo S$1,525 million • Hotel Sunroute Ariake and Portfolio valuation as at 31 March 2016 Oakwoo
Slide 5: Key Highlights
1 Key Highlights 5
Slide 6: 1Q FY2016/17 Financial Highlights
1Q FY2016/17 Financial Highlights 1Q FY2016/17 Gross Revenue S$52.4m 0.8% y-o-y Net Property Income S$22.6m 5.5% y-o-y Distributable Income S$15.2m 1.3% y-o-y Adjusted Distributable S$14.5m 1.6% y-o-y Income1 Distribution per Stapled Security 1.291 cents 0.8% y-o-y (“DPS”) Note: 1. After retaining d
Slide 7: 1Q FY2016/17 Portfolio Highlights
1Q FY2016/17 Portfolio Highlights AOR1 ADR1 RevPAR1 0.5pp AUD 2.4% AUD 1.7% Australia2 81.3% y-o-y y-o-y y-o-y 168 137 3.6pp RMB 1.7% RMB 2.9% China 86.5% y-o-y y-o-y y-o-y 412 357 Applies to Oakwood Apartments only JPY 7.2% Japan Improvement in both occupancy and ADR 10,004 y-o-y Singapore De
Slide 8: Financial Review
2 Financial Review 8
Slide 9: Results Summary – 1Q FY2016/17
Results Summary – 1Q FY2016/17 1st Quarter S$’ million FY2015/16 FY2016/17 Change • Mainly due to weaker Gross AUD and RMB against 52.8 52.4 (0.8)% Revenue SGD • Partially offset by Net Property 21.4 22.6 5.5% appreciation of JPY Income against SGD NPI Margin 40.6 43.2 2.6pp • Higher contribution fr
Slide 10: Distributable Income and Distribution History
Distribution History Acquisition of Osaka Namba Divestment of Pullman & Equity Fund Raising Cairns International 20.0 1.80 1.45 1.60 1.38 1.27 1.30 1.28 1.30 1.29 1.40 Distributable Income (S$ million) 1.24 1.25 16.2 15.0 1.20 DPS (Singapore cents) 15.5 14.5 14.6 14.5 14.1 14.0 14.2 1.00 13.7 0.80 1
Slide 11: Portfolio Performance
3 Portfolio Performance 11
Slide 12: Japan portfolio drive NPI
Japan portfolio drive NPI Improved rent structure leads to higher contribution from Hotel Sunroute Osaka Namba, which in turn resulted in higher NPI for 1QFY2016/17 Gross Revenue Net Property Income 65.0 30.0 y-o-y: y-o-y: -S$0.4m +S$1.2m -0.8% +5.5% 60.0 25.0 22.6 55.0 21.4 S$ million S$ million 52
Slide 13: Performance by Country
Performance by Country Financials in SGD affected by foreign exchange while Japan portfolio showed strong growth, driven by Hotel Sunroute Osaka Namba Gross Revenue Net Property Income 15.0 40.0 5.3% 37.3 35.4 2.8% 11.7 11.4 30.0 10.0 S$ million S$ million 38.2% 20.0 5.9 5.0 4.2 2.6% 28.3% 3.4 3.3 1
Slide 14: NPI Breakdown by Country and Contract Type
NPI Breakdown by Country and Contract Type Well diversified portfolio with good mix of master lease arrangements and management contracts 1Q FY15/16 Net Property Income 1Q FY16/17 Net Property Income Master Lease: Master Lease: 36% 41% Singapore Singapore 16% 15% 1Q FY15/16 1Q FY16/17 Japan Net Prop
Slide 15: Stable performance from Australia portfolio
Stable performance from Australia portfolio 1st Quarter Hotels in Sydney and Melbourne (except for AUD FY15/16 FY16/17 Change CMNR1) recorded better performance due to higher demand for rooms and more conferencing and AOR 81.8% 81.3% 0.5pp event business ADR 164 168 2.4% On same store basis, NPI
Slide 16: Improvement from China Portfolio
Improvement from China Portfolio 1st Quarter Volume strategy worked out for Novotel Beijing RMB FY15/16 FY16/17 Change Sanyuan AOR 82.9% 86.5% 3.6pp Leasing of spaces in Ibis Beijing Sanyuan for stable income boost NPI ADR 419 412 1.7% Depreciation of RMB against SGD moderated financials in SG
Slide 17: Performance of Japan Portfolio Soar
Performance of Japan Portfolio Soar 1st Quarter Hotel Sunroute Osaka Namba contributed higher JPY FY15/16 FY16/17 Change NPI this quarter (up 66.9% y-o-y in JPY terms ) due to improved rent structure under new master lease RevPAR1 9,328 10,004 7.2% Oakwood Apartments Ariake Tokyo continue to imp
Slide 18: Quality Portfolio: RevPAR Growth by Hotel
Quality Portfolio Majority of hotels recorded RevPAR growth, underpinned by the quality of the assets Australia China 30.0 Outperform STR Comp Set1 Underperform STR Comp Set 21.4 20.0 12.2 10.2 y-oy RevPAR Growth (%) 9.9 10.0 7.4 7.5 6.8 4.3 3.1 3.8 3.5 0.6 0.0 (1.1) (1.5) (2.4) (4.4) (10.0) (10.6)
Slide 19: Capital Management
cA tg —+.% Capital Management
Slide 20: Healthy Balance Sheet
Healthy Balance Sheet Total assets of S$1,609.4 million as at 30 June 2016 As at As at 31 March 2016 30 June 2016 Borrowings S$533.3m S$535.1m Total Assets S$1,631.9m S$1,609.4m A-HTRUST Gearing1 32.7% 33.2% - A-HREIT Gearing 25.8% 26.0% - A-HBT Gearing 36.5% 37.5% Weighted average interest rate 3.4
Slide 21: Balanced Debt Profile
Balanced Debt Profile Debt Maturity Profile Debt Facilities 250 Weighted average debt to maturity Term loan facilities: as at 30 June 2016: 2.3 years 3 to 5-year term loan facilities 200 198 Revolving credit facility (“RCF”): 166 3-year S$60 million RCF 150 S$ million 75 S$1 billion Debt Issua
Slide 22: Prudent Capital Management
Prudent Capital Management Debt Currency Profile Interest Rate Profile RMB Floating 8.4% 9.5% JPY AUD 26.8% Total Debt as at 41.9% Total Debt as at 30 Jun 2016: 30 Jun 2016: S$535.1m S$535.1m SGD Fixed 22.9% 90.5% 22
Slide 23: Looking Ahead
5 Looking Ahead 23
Slide 24: Australia – Outlook for Sydney and Melbourne Healthy
Australia – Outlook for Sydney and Melbourne Healthy Weak AUD is expected to drive both international arrivals and domestic travelling in Australia, which will benefit the Australia hotel market in general Sydney and Melbourne in particular are expected to remain attractive in the near term give
Slide 25: China – Competitive Environment to Persist
China – Competitive Environment to Persist While the increased competition in the Beijing hotel market is expected to moderate its performance in the near term, the market will continue to be supported by domestic travel The Beijing railway network will be expanded over the next five years which
Slide 26: Japan – Near Term Outlook Remains Positive
Japan – Near Term Outlook Remains Positive Inbound visitors to Japan continue to remain strong, improving by 29.1% y-o-y for the period YTD May 20161 In Osaka, the recent opening of the new “Flying Dinosaur” attraction, a popular roller coaster ride, in Universal Studio Japan is expected to attr
Slide 27: Singapore – Market Remains Challenging
Singapore – Market Remains Challenging Despite the encouraging growth in inbound visitors to Singapore for the period YTD May 2016 of 13.3% y-o-y1, the hotel market in general will be challenging in the short term The hotel market performance is expected to be affected by weakness in corporate d
Slide 28: Ascendas Hospitality Fund Management Pte. Ltd. contact details
Ascendas Hospitality Fund Management Pte. Ltd. Ascendas Hospitality Trust Management Pte. Ltd. Managers of A-HTRUST 1 Fusionopolis Place #10-10 Galaxis Singapore 138522 Tel: +65 6774 1033 Email: info-aht@ascendas-singbridge.com www.a-htrust.com 28
Ascendas Hospitality Trust — Q1 FY2016/17 Earnings Presentation on 6ix