Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Ascendas Hospitality Trust — Q4 FY2016/17 Earnings Presentation
32 slides from Singapore Exchange's earnings presentation, May 11, 2017
Slide 1: 4Q FY2016/17 Financial Results Presentation
4Q FY2016/17 Financial Results Presentation 11 May 2017 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 Fourth Quarter ended 31 March 2017 (“4Q 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 ris
Slide 3: Contents
Contents 1 Key Highlights 2 Financial Review 3 Portfolio Performance 4 Capital Management 5 Portfolio Valuation 6 Looking Ahead 3
Slide 4: Overview of Ascendas Hospitality Trust
Overview of Ascendas Hospitality Trust Beijing S$877 million • Novotel Beijing Sanyuan Market capitalisation • Ibis Beijing Sanyuan as at 31 March 2017 Tokyo • Hotel Sunroute Ariake and S$1,624 million Oakwood Apartments Ariake Tokyo Portfolio valuation as at 31 March 2017 Osaka • Hotel Sunroute Osa
Slide 5: Key Highlights
1 Key Highlights 5
Slide 6: 4Q FY2016/17 Financial Highlights
4Q FY2016/17 Financial Highlights 4Q FY2016/171 2016/171 Gross Revenue S$57.4m 7.5% y-o-y S$224.4m 4.3% y-o-y Net Property Income (“NPI”) S$25.8m 10.1% y-o-y S$99.2m 9.1% y-o-y Income available for distribution S$16.2m 4.9% y-o-y S$67.2m 5.5% y-o-y Adjusted Income available for S$15.4m 5.7% y-o-y S$
Slide 7: 4Q FY2016/17 Portfolio Highlights
4Q FY2016/17 Portfolio Highlights AOR1 ADR1 RevPAR1 3.9pp AUD 1.7% AUD 6.0% Australia 87.7% y-o-y y-o-y y-o-y 182 159 2.1pp RMB 2.5% RMB 0.7% China 76.1% y-o-y y-o-y y-o-y 388 296 Applies to Oakwood Apartments only JPY 2.4% Japan Decline in ADR 9,377 y-o-y Singapore Decline in rental income co
Slide 8: Distribution Details
Distribution Details Distribution for the period 1 October 2016 to 31 May 2017 March 2017: 3.01 Singapore cents per stapled S M T W T F S security 1 2 3 4 5 6 7 8 9 10 11 12 13 11 May 14 15 16 17 18 19 20 Notice of Books Closure Date 2017 21 22 23 24 25 26 27 28 29 30 31 17 May 2017, Ex-Distribution
Slide 9: Financial Review
2 Financial Review 9
Slide 10: Results Summary – 4Q FY2016/17
Results Summary – 4Q FY2016/17 4th Quarter S$’ million FY2016/17 FY2015/16 Change3 • Overall improvement in Gross portfolio performance 57.4 53.4 7.5% Revenue drive topline Net Property • Stronger JPY and AUD 25.8 23.4 10.1% Income against SGD lifted earnings in SGD NPI Margin (%) 44.9 43.9 1.0pp •
Slide 11: Results Summary – FY2016/17
Results Summary – FY2016/17 Full Year S$’ million FY2016/17 FY2015/16 Change3 Gross • Overall improvement in 224.4 215.1 4.3% underlying performance Revenue of the portfolio Net Property 99.2 90.9 9.1% • Results in SGD term Income augmented by stronger NPI Margin (%) JPY and AUD against SGD 44.2 42.
Slide 12: Distribution History
Distribution History Posted DPS y-o-y growth in 7 of the last 8 quarters DPS y-o-y 3.2% 8.7% 11.5% 4.0% 0.8% - 13.1% 5.4% growth 25.0 1.80 1.64 1.45 1.60 1.38 1.38 1.37 1.28 1.30 1.29 1.40 Distributable Income (S$ million) 20.0 1.20 DPS (Singapore cents) 18.5 1.00 15.0 16.2 15.5 15.5 15.4 14.6 14.5
Slide 13: Portfolio Performance
3 Portfolio Performance 13
Slide 14: Performance by Country
Performance by Country Overall portfolio performance improved in 4Q FY2016/17 and strengthening of AUD and JPY against SGD lifted earnings in SGD Gross Revenue Net Property Income 50.0 15.0 12.9% Affected by soft 10.5% 13.0 market condition 39.5 and variable rent 40.0 11.5 reversal 35.8 adjustment 1
Slide 15: 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 4Q FY15/16 Net Property Income 4Q FY16/17 Net Property Income Master Lease: Master Lease: 44% 43% Singapore Singapore 14% 19% 4Q FY15/16 4Q FY16/17 Net Property A
Slide 16: Another improved quarter from Australia portfolio
Another improved quarter from Australia portfolio 4th Quarter Improvement driven mainly by: AUD FY16/17 FY15/16 Change Pullman Sydney Hyde Park (strong public AOR 87.7% 83.8% 3.9pp demand) Novotel Sydney Central (new aircrew contract) ADR 182 179 1.7% Brisbane Hotel1 (strong conferencing bus
Slide 17: Positive quarter for China portfolio
Positive quarter for China portfolio 4th Quarter Hotels benefitted from favourable market condition RMB FY16/17 FY15/16 Change Ibis also saw strong take-ups from members of AOR 76.1% 74.0% 2.1pp China Lodging Group loyalty program RMB depreciated against SGD moderated earnings ADR 388 398 2.5%
Slide 18: Japan portfolio performance driven by Osaka hotel
Japan portfolio performance driven by Osaka hotel 4th Quarter Improved rental structure resulted in NPI increase JPY FY16/17 FY15/16 Change of 60.3% y-o-y (in JPY term) from Hotel Sunroute Osaka Namba RevPAR1 9,377 9,611 2.4% Oakwood Apartments Ariake Tokyo was affected by less events at nearby
Slide 19: Quality Portfolio
Quality Portfolio Comparing of A-HTRUST’s hotels performance against peers during the quarter Australia China 30.0 Outperform STR Comp Set1 Underperform STR Comp Set 20.0 y-oy RevPAR Growth (%) 16.0 11.8 12.4 11.1 9.8 10.0 6.6 5.7 4.9 4.3 4.0 3.6 2.9 0.6 0.0 (0.4) (0.5) (2.6) (7.4) (6.7) (10.0) Pull
Slide 20: Capital Management
cA tg —+.% Capital Management
Slide 21: Healthy Balance Sheet
Healthy Balance Sheet As at As at 31 March 2017 31 December 2016 Borrowings S$555.2m S$537.5m Total Assets S$1,725.9 S$1,613.9m A-HTRUST Gearing1 32.2% 33.3% - A-HREIT Gearing 25.6% 26.0% - A-HBT Gearing 35.7% 37.5% Weighted average interest rate 2.9% 3.0% Weighted average debt to maturity 2.8 years
Slide 22: Balanced Debt Profile
Balanced Debt Profile Debt Maturity Profile Debt Facilities 250 Weighted average debt to maturity Term loan facilities: as at 31 March 2017: 2.8 years 3 to 5-year term loan facilities 200 207 Revolving credit facility (“RCF”): 150 75 3-year S$30 million RCF S$ million S$1 billion Debt Issuance
Slide 23: Prudent Capital Management
Prudent Capital Management Debt Currency Profile Interest Rate Profile RMB 5.5% Floating 21.7% AUD JPY Total Debt as at 44.6% Total Debt as at 37.6% 31 Mar 2017: 31 Mar 2017: S$555.2m S$555.2m Fixed SGD 78.3% 12.3% 23
Slide 24: Portfolio Valuation
| \ = / Portfolio Valuation
Slide 25: Portfolio Valuation as at 31 March 2017
Portfolio Valuation as at 31 March 2017 Quality of portfolio drive valuation uplift Portfolio Valuation (S$m) Valuation by Country (Local Currency) 6.1% 1,623.6 640 603 S$98.9m 1,524.7 +6.5% 3.1% 39,375 40,600 1.3% 316 312 6.3% 538 572 31 Mar 2016 31 Mar 2017 Australia China Japan Singapore (AUD mil
Slide 26: Portfolio Valuation as at 31 March 2017
Portfolio Valuation as at 31 March 2017 AUSTRALIA1 AUD mn SGD mn5 42% Pullman Sydney Hyde Park 154.0 164.4 10% Novotel Sydney Central 154.5 164.9 10% Singapore Novotel Sydney Parramatta 49.0 52.3 3% 19% Courtyard by Marriott Sydney-North Ryde 48.0 51.2 3% Pullman and Mercure Melbourne Albert Park 13
Slide 27: Looking Ahead
6 Looking Ahead 27
Slide 28: Australia – General landscape healthy
Australia – General landscape healthy Inbound arrivals grew by 11% y-o-y in 2016, while domestic travel posted 4% y-o-y growth in overnight trips during the same period1. As the AUD remained relatively weak, it is expected to continue driving both international arrivals and domestic travelling i
Slide 29: China – Domestic travelling benefits sector
China – Domestic travelling benefits sector Domestic travelling in Beijing grew by 4.7% to 281 million in 20161. Growth in domestic travelling has supported the hospitality sector in Beijing, and will continue to be fundamental to the Beijing hotel market. Looking ahead, improved intercity tra
Slide 30: Japan – Outlook stable
Japan – Outlook stable Number of international arrivals to Japan grew by 21.8% y-o-y in 2016 and the growth trend continued in the first three months of 2017 with growth of 13.6% y-o-y1. Having welcomed a record number of foreign visitors into Japan in 2016, the growth trend is expected to conti
Slide 31: Singapore – Pressure from increase in room supply
Singapore – Pressure from increase in room supply A modest growth of between 0 to 2% is forecasted for the number of international arrivals into Singapore in 20171, and the year started well with a growth of 3.4% y-o-y in number of inbound for the first two months of 2017 to 2.8 million1. Howeve
Slide 32: Ascendas Hospitality Fund Management Pte. Ltd.
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 32
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