CDL Hospitality Trusts · SGX:J85

CDL Hospitality Trusts — Q3 2013 Earnings Presentation

58 slides from CDL Hospitality Trusts's earnings presentation, Oct 30, 2013

  1. Slide 1: Presentation of 3Q and YTD Sep 2013 Results

    Presentation of 3Q and YTD Sep 2013 Results 30 October 2013

  2. Slide 2: Disclaimer

    Disclaimer The value of Stapled Securities and the income derived from them may fall as well as rise. Stapled Securities are not obligations of, deposits in, or guaranteed by the H-REIT Manager or M&C Business Trust Management Limited, as trustee of CDL Hospitality Business Trust (the “HBT Trustee-M

  3. Slide 3: About CDL Hospitality Trusts

    About CDL Hospitality Trusts CDL Hospitality Trusts is a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”), a real estate investment trust, and CDL Hospitality Business Trust (“HBT”), a business trust. CDL Hospitality Trusts was listed on the Singapore Exchange Securit

  4. Slide 4: Table of Contents

    Table of Contents  Highlights 5  Performance of CDL Hospitality Trusts 10  Healthy Financial Position 18  Outlook 23  Management Strategy 31  Annexe 33  Background and Structure of CDL Hospitality Trusts 33  Information on CDL Hospitality Trusts Properties 43 4

  5. Slide 5: Highlights

    CDL HOSPITALITY TRUSTS Highlights

  6. Slide 6: Executive Summary: Financial Highlights (3Q 2013)

    Executive Summary 1 Financial Highlights (3Q 2013)  Gross revenue of S$35.9 million for 3Q 2013 compared to S$36.1 million for the same period last year, mainly due to:  Lower gross revenue from the Singapore Hotels  Mitigated by a S$1.9 million prorated minimum rent contribution (1) from the Ang

  7. Slide 7: Executive Summary: Financial Highlights (YTD Sep 2013)

    Executive Summary 2 Financial Highlights (YTD Sep 2013)  Gross revenue of S$109.4 million for YTD Sep 2013 compared to S$111.2 million for the same period last year, mainly due to lower gross revenue from the Singapore Hotels, offset by higher revenue from the Group's overseas properties  In YTD S

  8. Slide 8: Executive Summary: Hotel Performance

    Executive Summary 3 Hotel Performance  Singapore market:  CDLHT Singapore Hotels’ performance was affected by:  Increased competition due to additional new supply of hotel rooms in the market  Reduction in corporate travel budgets due to an uncertain global economy  Overall, occupancies remaine

  9. Slide 9: Executive Summary: Hotel Performance (con't)

    Executive Summary 4 Hotel Performance (con’t)  Maldives market:  Angsana Velavaru has performed well, registering a year-on-year (“y-o-y”) RevPAR growth of 13.9% for the quarter ended 30 September 2013 (1)  New Zealand market:  Defensive triple net lease structure with fixed rent which escalates

  10. Slide 10: Performance of CDL Hospitality Trusts

    Performance of CDL Hospitality Trusts 10

  11. Slide 11: Singapore Hotels Performance

    Singapore Hotels Performance Performance of Singapore Hotels  CDLHT Singapore Hotels’ performance in 3Q 2013 was affected by:  Increased competition due to additional new supply of hotel rooms in the market  Reduction in corporate travel budgets due to an uncertain global economy  Overall, occup

  12. Slide 12: Singapore Hotels Historical Performance Trend

    Singapore Hotels Historical Performance Trend CDLHT Singapore Hotels Quarterly Occupancy, ARR & RevPAR (1) (2) 5 Hotels 6 Hotels S$ 100% 255 247 245 250 232 236 224 228 90% 222 220 217 216 215 230 235 236 208 210 207 231 201 205 211 226 224 197 196 191 195 199 194 195 219 220 218 80% 188 207 211 204

  13. Slide 13: Overseas Hotels Performance

    Overseas Hotels Performance Performance of Australia Hotels  CDLHT Australia Hotels in Brisbane and Perth experienced weaker performance during the quarter due to the slowing Australian economy and the mining sector  Fixed rent contribution for 3Q 2013 was S$3.9 million, down from S$4.4 million in

  14. Slide 14: CDLHT Y-o-Y Performance: 3Q '12 Vs 3Q '13

    CDLHT Y-o-Y Performance: 3Q ’12 Vs 3Q ’13 Gross Revenue Income Available For Distribution Per Unit (1) S$ '000 -0.8% Singapore 40,000 cents 36,145 35,860 3.50 -3.0% 30,000 3.02 3.00 2.93 20,000 3Q '12 3Q '13 2.50 Net Property Income S$ '000 -1.7% 2.00 40,000 33,606 33,039 30,000 1.50 20,000 1.00 3Q

  15. Slide 15: CDLHT Y-o-Y Performance: YTD Sep '12 Vs YTD Sep '13

    CDLHT Y-o-Y Performance: YTD Sep ’12 Vs YTD Sep ’13 Gross Revenue Income Available For Distribution Per Unit (1) S$ '000 -1.7% Singapore 120,000 cents 111,200 109,358 10.00 -4.4% 100,000 9.35 8.94 9.00 80,000 YTD Sep '12 YTD Sep '13 Net Property Income 8.00 S$ '000 120,000 -2.7% 103,731 7.00 100,929

  16. Slide 16: Increase in CDLHT Total Property Value

    Increase in CDLHT Total Property Value Growth in Property Value S$ M 2,133.5M Key: 2,029.8M 2,044.9M Angsana Velavaru 89 2,000 163 163 1,787.1M 163 Studio M Hotel 1,628.8M 265 261 261 253 Australia Hotel Portfolio 1,481.2M 1,501.6M 88 88 128 90 1,500 40 99 55 68 68 Rendezvous Grand Hotel Auckland 93

  17. Slide 17: CDLHT Asset Portfolio

    CDLHT Asset Portfolio Breakdown of Portfolio Value by Geography and Property (1) Overseas Portfolio 20.5% Singapore Portfolio 79.5% Australia 12.2% Singapore 79.5% Novotel Brisbane 4.2% Orchard Hotel 21.4% Mercure & Ibis Brisbane 3.7% Grand Copthorne 16.4% Mercure Perth 2.6% Waterfront Hotel Ibis Pe

  18. Slide 18: Healthy Financial Position

    Healthy Financial Position 18

  19. Slide 19: Healthy Balance Sheet

    Healthy Balance Sheet  With healthy gearing and ample debt headroom, CDLHT will continue to focus on sourcing for acquisition opportunities Debt Value (1) Debt to Assets Ratio S$ M 676 700 615 600 29.7% 30% 28.1% 500 400 300 200 30 Jun '13 30 Sep '13 20% Total Assets S$ M 2,500 2,274 2,190 10% 2,00

  20. Slide 20: Debt Facility Details

    Debt Facility Details Unsecured Borrowings  Total of S$273.6 million MTN issued under the S$1 billion multi-currency MTN Medium Term Notes programme (“MTN”)  Tenure: 3-year and 5-year (fixed and floating rate notes)  S$200 million multi-currency committed RCF, of which S$60 million remains unutil

  21. Slide 21: Credit Metrics and Debt Profile

    Credit Metrics and Debt Profile (1) Credit Metrics Debt Currency Profile as at 30 Sep 2013 USD Fitch Issuer Default Rating BBB- 15% AUD 18% SGD Interest Coverage Ratio 8.7 x (2) 67% Interest Rate Profile as at 30 Sep 2013 Interest Rate Profile as at 30 Oct 2013 (3) Floating Fixed Floating Fixed 51%

  22. Slide 22: Debt Maturity Profile

    Debt Maturity Profile (1) Debt Maturity Profile as at 30 Sep 2013 Debt Maturity Profile as at 30 Oct 2013 (2) S$ million S$ million 300 300 250 250 214 200 200 161 120 100 84 100 84 70 0 0 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 (1) Based on exchange rates of A$1=S$1.1788 and US$1=S$1.

  23. Slide 23: Outlook

    CDL HOSPITALITY TRUSTS Outlook 23

  24. Slide 24: Continued Visitor Arrivals Growth (Singapore)

    Continued Visitor Arrivals Growth (Singapore)  Visitor arrivals grew 8.5% y-o-y for the first eight months of 2013  FY 2012 visitor arrivals registered 10.0% y-o-y growth to 14.5 million from 13.2 million in FY 2011 Monthly Visitor Arrivals Thousand 1,600 1,467 1,390 1,400 1,368 1,356 1,314 1,292

  25. Slide 25: Geographical Mix of Top Markets (Singapore)

    Geographical Mix of Top Markets (Singapore)  Indonesia, China and Malaysia make up the top three source markets Geographical Mix of Visitor Arrivals Top 10 Inbound Markets 1Q 2013 (1) Y-o-Y Change for 1Q 2013 (1) (2) Hong Kong 25.4% Indonesia 18% Australia 20.4% Others 25% China 19.5% Japan 13.3% I

  26. Slide 26: STB Forecasts Growth in Visitor Arrivals

    STB Forecasts Growth in Visitor Arrivals Historical and Forecasted Visitor Arrivals in Singapore Million 18.0 14.8 to  FY 2012 visitor arrivals 10-year CAGR = 6.7% 15.5 grew 10.0% y-o-y 15.0 14.5 13.2  STB’s estimate for 11.6 visitor arrivals in 2013 12.0 10.5 is between 14.8 million 10.3 10.1 9.8

  27. Slide 27: Singapore's Competitiveness and Vibrancy Supported by Infrastructure and Product Development

    Singapore’s Competitiveness and Vibrancy Supported by Infrastructure and Product Development Additional MICE One of Asia’s venue (to be largest visual arts completed in April institutions (to open 2014) in 2015) National Art Gallery T4 (to be completed in 2017) Revamping of T1 (to be completed in 20

  28. Slide 28: Championing Singapore as Asia's Top MICE Destination

    Championing Singapore as Asia’s Top MICE Destination Government Initiatives  STB’s Tourism 2015: Strengthening Singapore’s position as a leading Convention & Exhibition city in Asia  One third of S$905 million committed in 2012 for development of MICE sector over the next 5 years  STB aims to rai

  29. Slide 29: More Supply Expected in the Immediate Horizon

    More Supply (1) Expected in the Immediate Horizon  New room supply is expected to grow at a CAGR of 5.9% for the next 3 years  Operating environment expected to continue to be competitive with over 2,900 new rooms opening in 2014 Current and Expected Hotel Room Supply in Singapore No. of Hotel Roo

  30. Slide 30: Potential Supply of New Singapore Hotel Rooms Until 2015

    Potential Supply of New Singapore Hotel Rooms Until 2015 No. of Horwath Expected No. of Horwath Expected Name of Hotel Location Name of Hotel Location Rms Rating Opening Rms Rating Opening Amaris Middle Road Singapore 38 Economy City Centre Opened Holiday Inn Express (Havelock) 448 Mid Tier City Cen

  31. Slide 31: Management Strategy

    CDL HOSPITALITY TRUSTS Management Strategy 31

  32. Slide 32: Management Strategy

    Management Strategy Acquisition Growth Strategy Asset Management Strategy  Pursue yield accretive, quality assets with  Work closely with lessees to implement investment rigour and discipline active revenue and cost management  Tap on potential pipeline from M&C / CDL  Implement asset enhancemen

  33. Slide 33: Background and Structure of CDL Hospitality Trusts

    Background and Structure of CDL Hospitality Trusts 33

  34. Slide 34: Background on CDLHT

    Background on CDLHT Background Post IPO Performance  IPO on 19 July 2006 $3.00 Annoucement High (10 Jul ’07) Announcement of Announcement of Announcement of  Listed on SGX of Novotel Clarke Quay = S$2.66 Australia Hotels Acquisition Private Placement = S$1.89 Angsana Velavaru Acquisition = Mainboa

  35. Slide 35: CDLHT Structure

    CDLHT Structure Sponsor Investors ≈35.41% Holdings of Stapled Securities ≈64.59% as at 30 Sep 2013 as at 30 Sep 2013 H-REIT Distributions HBT Management services Management Stapling Deed services M&C REIT M&C Business Trust Management Limited H-REIT HBT(1) and acts on behalf Management Limited (H-RE

  36. Slide 36: Blue Chip Sponsor and Parentage

    Blue Chip Sponsor and Parentage Millennium & Copthorne Hotels plc City Developments Limited  One of the largest property developers in  Listed on the London Stock Exchange with Singapore with a market capitalisation of market capitalisation of ~ £1.9 billion (1) ~S$9.5 billion (1)  Debt to assets

  37. Slide 37: Summary of Leases and Lease Structures

    Summary of Leases and Lease Structures 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 a fixed rent floor of S$26.4 m  Term of 20 years from Listing with 20-year option Singapore IPO Orcha

  38. Slide 38: Summary of Leases and Lease Structures

    Summary of Leases and Lease Structures New Zealand Rendezvous Grand Hotel Auckland:  Base rent + Variable rent RGHA  Base rent escalates at 2.75% per annum High Degree of Stability  Term of 10 years from 7 September 2006 with 5 year option Australia Portfolio Novotel, Mercure & Ibis Brisbane, Mer

  39. Slide 39: Gross Revenue Breakdown: 3Q '12 Vs 3Q '13

    Gross Revenue Breakdown: 3Q ’12 Vs 3Q ’13 Gross Revenue of CDLHT Properties S$ M -0.8% 45.0 Key: Y-o-Y % Change Key: 40.0 S$36.1M Angsana Velavaru Angsana Velavaru N.A. S$35.9M Australia Total 35.0 1.9 Rendezvous Hotel Auckland Australia Portfolio - 10.8% 4.4 Orchard Hotel Shopping Arcade 3.9 Coptho

  40. Slide 40: Gross Revenue Breakdown: YTD Sep '12 Vs YTD Sep '13

    Gross Revenue Breakdown: YTD Sep ’12 Vs YTD Sep ’13 Gross Revenue of CDLHT Properties S$ M -1.7% 120.0 Key: Key: Y-o-Y % Change S$111.2M S$109.4M Angsana Velavaru Angsana Velavaru N.A. Australia Total 5.0 15.1 Rendezvous Hotel Auckland 100.0 Australia Portfolio - 3.6% 14.5 Orchard Hotel Shopping Arc

  41. Slide 41: CDLHT Asset Portfolio – Singapore

    CDLHT Asset Portfolio – Singapore Property Orchard Grand M Hotel Copthorne Novotel Studio M Orchard Hotel Singapore Hotel Copthorne King’s Hotel Singapore Hotel Shopping Portfolio Waterfront Hotel Clarke Quay Arcade Number of 656 574 413 310 403 360 N/A 2,716 Rooms Valuation at 31 S$454.0 M S$350.0

  42. Slide 42: CDLHT Asset Portfolio – Overseas

    CDLHT Asset Portfolio – Overseas Property Rendezvous Novotel Mercure Ibis Mercure Ibis Perth Australia Angsana Overseas Grand Hotel Brisbane Brisbane Brisbane Perth Portfolio Velavaru Portfolio Auckland Number of 452 296 194 218 239 192 1,139 113 1,704 Rooms NZ$88.0M A$72.0M A$62.0M A$44.0M A$28.0M

  43. Slide 43: Information on CDL Hospitality Trusts Properties

    Information on CDL Hospitality Trusts Properties 43

  44. Slide 44: Hotels in Strategic Locations

    Hotels in Strategic Locations Singapore Hotels New Zealand Hotel Orchard Hotel & Grand Copthorne Novotel Rendezvous Shopping Arcade Waterfront Hotel Singapore Clarke Quay Grand Hotel Auckland H H H H H SINGAPORE RIVER CENTRAL MARINA BAY BUSINESS SANDS H DISTRICT H BUSINESS & FINANCIAL CENTRE SITE Co

  45. Slide 45: Hotels in Strategic Locations

    Hotels in Strategic Locations Australia Hotels Mercure Ibis Novotel Mercure Brisbane Brisbane Brisbane Ibis Perth Perth Brisbane CBD Perth CBD H H H H H CBD AREA 45

  46. Slide 46: Resort in Premium Destination

    Resort in Premium Destination Main Island of Angsana Velavaru Malé Atoll 40 min seaplane flight R South Nilandhe Atoll 46

  47. Slide 47: Orchard Hotel, Singapore

    Orchard Hotel, Singapore Significant Highlights  656 rooms  Located on Orchard Road  Large pillar-less ballrooms & extensive conference facilities  Caters to both corporate and leisure segments Accolades  Wine & Dine Singapore’s Top Restaurants 2013 – Orchard Café & Noodles  Prestigious awards

  48. Slide 48: Grand Copthorne Waterfront, Singapore

    Grand Copthorne Waterfront, Singapore Significant Highlights  574 rooms  Located between CBD & Orchard Road, within close proximity to Robertson Quay, Boat Quay & Clarke Quay  One of the largest conference facilities in Singapore  Well positioned for the MICE market Accolades  Prestigious award

  49. Slide 49: M Hotel, Singapore

    M Hotel, Singapore Significant Highlights  413 rooms  Located in the heart of the financial district  Close to government offices, integrated resorts and Marina Bay  Strong following of business travellers Accolades  Wine & Dine Singapore’s Top Restaurants 2013 – Cafe 2000 & The Buffet  BCA Gr

  50. Slide 50: Copthorne King's Hotel, Singapore

    Copthorne King’s Hotel, Singapore Significant Highlights  Boutique-style business hotel with 310 rooms  Located within close proximity to CBD, convention / exhibition belt, Orchard Road, Robertson Quay, Boat Quay and Clarke Quay  Strong corporate segment focus and specialty events hotel host Acco

  51. Slide 51: Novotel Singapore Clarke Quay, Singapore

    Novotel Singapore Clarke Quay, Singapore Significant Highlights  Prime mid-scale hotel with 403 rooms  Leasehold  Located in immediate proximity to Clarke Quay, Robertson Quay and Boat Quay: Singapore’s premier entertainment hub  Room touch ups, upgrading of all bathrooms and renovation of Premi

  52. Slide 52: Studio M Hotel, Singapore

    Studio M Hotel, Singapore Significant Highlights  360-room hotel opened in March 2010  Stylish and contemporary design set to capture growing business and leisure segments  Vibrant lifestyle options near the Robertson Quay precinct and in proximity to CBD, tourist attractions, integrated resorts

  53. Slide 53: Orchard Hotel Shopping Arcade, Singapore

    Orchard Hotel Shopping Arcade, Singapore Net Lettable Area ~ 5,933 sq m JLL’s Valuation S$68.0M Valuation psm (psf) S$11,461 psm (S$1,065 psf) % of total valuation ~3.2% Leasehold Interest 75 years from Listing Date 53

  54. Slide 54: Rendezvous Grand Hotel Auckland, New Zealand

    Rendezvous Grand Hotel Auckland, New Zealand Significant Highlights  452 rooms – largest hotel in Auckland by rooms  Freehold  Located in the central business district and next to a major conference centre Accolades  EarthCheck Certified 2009 – 2013, Bronze  TripAdvisor Certificate of Excellenc

  55. Slide 55: Novotel, Mercure and Ibis Hotels, Brisbane

    Novotel, Mercure and Ibis Hotels, Brisbane Novotel Brisbane Significant Highlights Novotel Brisbane  4.5 star accommodation with 296 modern, well-appointed rooms and suites  Freehold  Located next to Central Station and the CBD, Queen Street Mall and the Riverside boardwalk  Comprehensive confer

  56. Slide 56: Mercure and Ibis Hotels, Perth

    Mercure and Ibis Hotels, Perth Mercure Perth Mercure Perth Significant Highlights Mercure Perth  4.0 star accommodation with 239 rooms and suites  Freehold  Offers six meeting rooms available for up to 350 delegates  Situated in Perth’s CBD and within walking distance Mercure Perth to the Swan R

  57. Slide 57: Angsana Velavaru, The Maldives

    Angsana Velavaru, The Maldives Significant Highlights  113-villa resort opened in 2006, initially with 79 beachfront villas, and 34 water villas were subsequently added in 2009  Exclusive cluster of standalone water villas positioned ~1km away from main island  Offers guests the opportunity to en

  58. Slide 58: Thank You

    CDL HOSPITALITY TRUSTS THANK YOU 58

CDL Hospitality Trusts — Q3 2013 Earnings Presentation on 6ix