CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — Q3 2009 Earnings Presentation
49 slides from CDL Hospitality Trusts's earnings presentation, Oct 30, 2009
Slide 1: Presentation of 3Q 2009 Results
Presentation of 3Q 2009 Results 30 October 2009
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
Slide 3: Table Of Contents
Table Of Contents Highlights Performance Of CDL Hospitality Trusts Healthy Financial Position Outlook Update On Acquisition Strategy Annexe ♦ Background And Structure Of CDL Hospitality Trusts ♦ Information On CDL Hospitality Trusts Hotels 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary
Executive Summary 1 Recovery in demand gathered pace this quarter, resulting in an easing of 1 decline in 3Q 2009 performance compared to a year ago, notwithstanding the global recession which continues to impact travel : - Gross revenue of S$22.9 million, a 21.4% decrease yoy - Net property income
Slide 6: Executive Summary
Executive Summary 2 Strongest 2009 quarter performance in terms of occupancy & RevPAR 2 contributed by revival in business confidence - RevPAR reached S$154, 14.9% increase from 2Q 2009 - Average occupancy rate of 86.1% achieved, a 10.6 pp increase from 2Q 2009 - Visitor arrivals registered its firs
Slide 7: Executive Summary
Executive Summary 3 3 All Singapore Hotels (1) 3Q ’09 3Q ’08 Growth YTD Sep ’09 YTD Sep ’08 Growth Occupancy 86.1% 85.5% 0.6pp 78.8% 85.7% -6.9pp Average Daily Rate $179 $250 -28.4% $185 $251 -26.3% RevPAR $154 $214 -28.0% $146 $215 -32.1% Strong balance sheet and sound fundamentals 4 - One of the l
Slide 8: Performance Of CDL Hospitality Trusts
Performance Of CDL Hospitality Trusts 8
Slide 9: Encouraging Signs of Improving Demand
Encouraging Signs of Improving Demand 2009 YOY Change in Visitor Arrivals YOY Change in '000 YOY Change in % 70 7.1% 8% 50 53.2 4% 30 -0.7% 10 0% (10) Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 -4.5% -6.2 -4% (30) -6.1% (50) -8.8% -41.2 -8% -50.5 (70) -12.8% -72.6 (90) -12% -15.1
Slide 10: Year-On-Year Hotel Performance: 3Q '08 Vs 3Q '09
Year-On-Year Hotel Performance: 3Q ’08 Vs 3Q ’09 CDL-HT Singapore Hotels S$ ARR: 3Q '08 v 3Q '09 S$ RevPAR: 3Q '08 v 3Q '09 300 -28.4% $250 300 250 $179 200 150 250 -28.0% 100 $214 50 0 200 3Q '08 3Q '09 $154 150 Occ: 3Q '08 v 3Q '09 100% +0.6 pp or +0.7% 95% 100 90% 85.5% 86.1% 85% 80% 50 75% 70% 6
Slide 11: Gross Revenue, NPI & Income Available For Distribution Per Unit: 3Q '08 Vs 3Q '09
Gross Revenue, NPI & Income Available For Distribution Per Unit: 3Q’ 08 Vs 3Q’ 09 CDL-HT Hotels S$’000 Gross Revenue(1) Income Available for Distribution -21.4% 35,000 29,086 S$ cents Per Unit (2) 30,000 25,000 22,859 3.50 20,000 2.93 -23.9% 15,000 3.00 10,000 5,000 2.50 2.23 0 3Q '08 3Q '09 2.00 S$
Slide 12: Year-On-Year Hotel Performance: YTD Sep '08 Vs YTD Sep '09
Year-On-Year Hotel Performance: YTD Sep ’08 Vs YTD Sep ’09 CDL-HT Singapore Hotels ARR: YTD Sep '08 v YTD Sep '09 S$ -26.3% S$ RevPAR: YTD Sep '08 v YTD Sep '09 300 $251 250 300 $185 200 150 250 100 -32.1% 50 $215 0 200 YTD Sep '08 YTD Sep '09 $146 150 Occ: YTD Sep '08 v YTD Sep '09 100% 100 95% -6.
Slide 13: Gross Revenue, NPI & Income Available For Distribution Per Unit: YTD
Gross Revenue, NPI & Income Available For Distribution Per Unit: YTD Sep ’08 Vs YTD Sep ’09 CDL-HT Hotels S$’000 Gross Revenue(1) Income Available for Distribution 100,000 86,515 -24.2% S$ cents Per Unit (2) 80,000 65,609 10.00 60,000 8.82 -26.5% 9.00 40,000 8.00 20,000 7.00 6.48 0 YTD Sep '08 YTD S
Slide 14: Healthy Financial Position
Healthy Financial Position 14
Slide 15: Strong Balance Sheet
Strong Balance Sheet (1) S$ Debt Values (S$ M) 400 Debt / Assets Ratio 293 307 300 30% 200 25% 100 20.2% 19.3% 20% 0 As at 30 Jun '09 As at 30 Sep '09 15% S$ Total Assets (S$ M) 10% 1,521 1,521 1,500 5% 1,000 0% As at 30 Jun '09 As at 30 Sep '09 500 0 As at 30 Jun '09 As at 30 Sep '09 (1) Debt value
Slide 16: Debt Facility Details
Debt Facility Details Debt Terms Credit Metrics The outstanding bank borrowings Fitch Issuer Default Rating: as at 31 July was refinanced with a new 3-year S$350M bank facility BBB- from DBS Bank Limited Key terms: Debt to assets ratio: Tenure: 3 years from 30 April 2009 20.2% Intere
Slide 17: Outlook
CDL HOSPITALITY TRUSTS Outlook 17
Slide 18: Visitor Arrivals In Singapore
Visitor Arrivals In Singapore Visitor Arrivals in Singapore Current Thousands Asian Financial Crisis Sep 11 & SARs 36% Financial Crisis 12,000 11% 11% 11% 9% 7% 7% 3% 2% 1% 7% 5% -1% -2% -2% -13% -8% -19% 10,285 10,116 9,751 10,000 YTD Sep 8,943 8,329 8,000 7,691 7,522 7,567 7,613 7,137 7,292 7,198
Slide 19: Singapore – Overall Visitor Arrivals For YTD August 2009
Singapore – Overall Visitor Arrivals For YTD August 2009 Breakdown of Visitor Arrivals To Singapore Growth in Top 10 Visitor For Jan-Aug '09 Arrival Countries for Singapore Indonesia, (Jan-Aug '09 vs. Jan-Aug '08) 1,067,471 17% -8.2% Indonesia Others, 1,756,418 28% -22.1% PR China PR China, -4.1% Au
Slide 20: Passenger & Commercial Aircraft Movements at Changi Airport
Passenger & Commercial Aircraft Movements at Changi Airport Passenger Movements: 08 Vs 09 Commercial Aircraft Movements: 08 Vs 09 Commercial Aircraft Movements: 08 Vs 09 Millions Millions 4.0 22 8.0% 6.0% 3.9% 2.9% 4.2% 5.8% 1.0% 0.6% -0.2% 0.5% -2.7% -1.9% -4.4% -5.0% -1.3% -11.1% -11.1% 20 -13.0%
Slide 21: Signs of Improvement in Occupancy and RevPAR
Signs of Improvement in Occupancy and RevPAR Quarter-on-quarter Change in RevPAR and Occupancy RevPAR: 2008 to 3Q ‘09 Occupancy: 2008 to 3Q ‘09 $220 90.0% +10.6 pp or 208 +14.0% 86.1% $200 85.2% 85.0% +14.9% $180 +0.7 pp or -10.7% +0.9% 154 80.0% $160 150 75.5% $140 134 74.8% 75.0% $120 70.0% $100 $
Slide 22: Potential Supply Of Hotel Rooms Until 2012
Potential Supply Of Hotel Rooms Until 2012 Current and Expected Hotel Room Supply in Singapore No. of Hotel Rooms 50,000 2009 to 2012 CAGR = 6.8% 45,000 770 40,233 40,000 6,178 300 1,878 1,800 Resorts World at Sentosa 35,000 2,500 Marina Bay Sands 32,985 32,985 32,985 32,985 30,000 25,000 2009 2010
Slide 23: Demand Boost From Opening Of Resorts World At Sentosa
Demand Boost From Opening Of Resorts World At Sentosa Resorts World Soft-opening in early 2010 Unique combination of world-class theme park, gaming & convention facilities Anticipates 12 to 13 million visitors in 2010 (1) On-track to open in 2010 (RSW 21 Oct 2009 Press Release) Target famili
Slide 24: Demand Boost From Opening Of Marina Bay Sands
Demand Boost From Opening Of Marina Bay Sands Marina Bay Sands Early 2010 soft opening Artist Impression of Completed Project Large-scale casino resort with world-class convention facilities in the heart of the city Targeting business travellers & conference delegates Key Attractions: ♦ Extens
Slide 25: Singapore Ups the "Entertainment Quotient"
Singapore Ups the “Entertainment Quotient” Votes of confidence by private enterprises in Singapore’s tourism prospects Integrated Resorts F1 night race 2009 World-class gaming, entertainment Mushrooming of over 20 new attractions in F1 Rocks and conference facilities the last year, more to be introd
Slide 26: CDLHT Hotels Strategically Located Near New Demand Generators
CDLHT Hotels Strategically Located Near New Demand Generators Overview of new demand generators within the vicinity of CDLHT hotels 26
Slide 27: Other Growth Drivers Of Visitor Arrivals
Other Growth Drivers Of Visitor Arrivals Preferred MICE Destination Revitalization of Orchard Road Orchard Road – one of the world’s Asia’s Best City for MICE Events in premier shopping streets the CEI Asia 2009 Industry Awards The 2.2km Orchard Road will have > 40 World’s top international
Slide 28: Update On Acquisition Strategy
Update On Acquisition Strategy 28
Slide 29: Acquisition Opportunities From Multiple Sources
Acquisition Opportunities From Multiple Sources M&C Third Parties Owns / operates > 100 hotels globally Divestment of assets Right of First Refusal(1) to future sales of Singapore ♦ By hospitality service providers who are hotels owned by M&C or offers of Singapore hotels increasingly looking
Slide 30: CDL-HT Target Markets
CDL-HT Target Markets Specific Countries of Interest Singapore ▪ Australia ▪ China ▪ Hong Kong ▪ India ▪ Indonesia ▪ Japan ▪ Malaysia ▪ Maldives ▪ New Zealand ▪ Philippines ▪ Thailand ▪ Vietnam ▪ UAE ▪ Taiwan Jan - Sep 09 RevPAR Growth (1) Bangkok -33.5% Jakarta -2.2% Kuala Lumpur -12.0% Beijing -52
Slide 31: Background And Structure Of CDL Hospitality Trusts
Background And Structure Of CDL Hospitality Trusts 31
Slide 32: Background To CDL-HT
Background To CDL-HT Background Post IPO Performance • IPO on 19 July 2006 $3.00 Announcement of Equity Fund Raising High (10 Jul ’07) = S$2.66 Unit price increase = S$2.28 IPO to 29 Oct 09 = +88.0% • Listed on SGX Mainboard 2 Jan 09 to 29 Oct 09 = +113.7% $2.50 Announcement of Novotel Clarke Quay A
Slide 33: Blue Chip Sponsor And Parentage
Blue Chip Sponsor And Parentage Millennium & Copthorne Hotels plc City Developments Limited Listed on the London Stock Exchange with market One of the largest property developers in Singapore capitalization of ~ £1.0 billion (1) with a market capitalization of ~S$9.0 billion (1) Debt to assets ratio
Slide 34: CDL-HT Structure
CDL-HT Structure Sponsor Investors ≈39.393% Holdings of Stapled Securities ≈60.607% H-REIT Distributions HBT Management services Stapling Deed M&C REIT M&C Business Trust Management Limited H-REIT HBT(1) Management Limited (H-REIT Manager) (owns hotels) (HBT Trustee Manager) Lease of Hotels Manageme
Slide 35: Lease Structures
Lease Structures Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel: 20% of Hotel's revenue + 20% of Hotel’s gross operating profit subject to a Fixed Rent Favourable floor of $26.4 m Lease Structure in Base Term of 20 years from Listing with 20 year option Portfo
Slide 36: CDL-HT Asset Portfolio
CDL-HT Asset Portfolio Orchard Grand Copthorne M Hotel Copthorne Orchard Hotel Rendezvous Novotel Total Hotel Waterfront Hotel King’s Hotel Shopping Arcade Hotel Auckland Clarke Quay Number of 653 574 413 310 N/A 452 401 2,803 Rooms NZ$112.0M Valuation S$423.0M S$309.0M S$227.0M S$120.0M S$43.0M S$2
Slide 37: Breakdown Of Gross Revenue By Property Actual - 3Q '08 Vs 3Q '09
Breakdown Of Gross Revenue By Property Actual - 3Q ’08 Vs 3Q ’09 Gross Revenue from H-REIT Properties S$ M 35 -21.4% S$29.1M 30 Key: % Change from 3Q ’08 19% 5.5 25 S$22.9M -14.4% Novotel Clarke Quay 8% 2.3 4% 1.1 4.8 -2.1% 20 Rendezvous Hotel Auckland 9% 2.6 21% 2.2 Orchard Hotel Shopping Arcade -9
Slide 38: Breakdown Of Gross Revenue By Property Actual – YTD Sep '08 Vs YTD Sep '09
Breakdown Of Gross Revenue By Property Actual – YTD Sep ’08 Vs YTD Sep ’09 Gross Revenue from H-REIT Properties S$ M -24.2% 100 S$86.5M 19% % Change from YTD Sep ’08 80 16.4 8% S$65.6M Novotel Clarke Quay -16.1% 4% 7.2 21% 60 10% 3.2 Rendezvous Hotel Auckland -15.4% 13.7 8.3 9% 14% 6.1 Orchard Hotel
Slide 39: Change In CDL-HT Total Property Value
Change In CDL-HT Total Property Value Valuation of H-REIT Properties S$ M -9.1% +47.8% 1,800 1,628.8M Key: 1,481.2M 1,600 Novotel Clarke Quay +30.2% 16.9% 275 Rendezvous Hotel Auckland 1,400 Orchard Hotel . 18.0% 266 1,101.9M 7.8% 128 Grand Copthorne Waterfront Hotel 1,200 93 6.3% M Hotel 11.1% 123
Slide 40: Information On CDL Hospitality Trusts Hotels
Information On CDL Hospitality Trusts Hotels 40
Slide 41: Hotels In Strategic Locations
Hotels In Strategic Locations Singapore Hotels New Zealand Hotel Orchard Grand Copthorne M Hotel Novotel Hotel & Copthorne King’s Clarke Quay Rendezvous Shopping Waterfront Hotel Hotel Arcade Hotel Auckland ORCHARD ROAD SINGAPORE RIVER INTEGRATED RESORT SITE CENTRAL BUSINESS DISTRICT BUSINESS & FINA
Slide 42: Orchard Hotel, Singapore
Orchard Hotel, Singapore Significant Highlights 653 rooms Located in Orchard Road Large pillar-less ballrooms with extensive conference facilities Caters to both corporate and leisure segments Accolades Business Times-Citibank Gourmet Choice Awards 2009 – Hua Ting Restaurant Asia Tatler’
Slide 43: Grand Copthorne Waterfront, Singapore
Grand Copthorne Waterfront, Singapore Significant Highlights 574 rooms Located between CBD and Orchard Road Close to proposed BFC and IR One of the largest conference facilities in Singapore Well positioned for the MICE market Accolades 2009 Best Restaurant by Simply Dining, Phenomedia L
Slide 44: M Hotel, Singapore
M Hotel, Singapore Significant Highlights 413 rooms Located in the heart of the financial district Close to proposed BFC and IR Completed refurbishment in 2003 Strong following of business travellers Accolades Hospitality Asia Platinum Awards 2009 – 2011, Singapore Series HAPA Best Del
Slide 45: 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 and Orchard Road Completed refurbishment in 2004 Strong corporate segment focus and specialty events hotel host Accolades
Slide 46: Orchard Hotel Shopping Arcade, Singapore
Orchard Hotel Shopping Arcade, Singapore Net Lettable Area 4,889.5 sq m Knight Frank’s valuation S$43.0M Valuation psm (psf) S$8,794 psm (S$817 psf) % of total valuation ~2.9% Leasehold Interest 75 years from Listing Date 46
Slide 47: Rendezvous Hotel Auckland, New Zealand
Rendezvous 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 47
Slide 48: Novotel Clarke Quay, Singapore
Novotel Clarke Quay, Singapore Significant Highlights Prime superior hotel with 401 rooms Leasehold Located in immediate proximity to Clarke Quay, Robertson Quay and Boat Quay: Singapore’s premier entertainment hub Concluded a S$18.8 million comprehensive refurbishment program to guestrooms,
Slide 49: Thank You
Thank You CDL HOSPITALITY TRUSTS
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