Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Hospitality Trust — Investor Presentation (February 2020)
37 slides from Frasers Property's investor presentation, February 2020
Slide 1: Frasers Hospitality Trust Investor Presentation
Frasers Hospitality Trust Investor Presentation February 2020
Slide 2: Important notice
Important notice Certain statements in this presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual res
Slide 3: Contents
Contents Overview of FHT Financial Review: 1Q FY2020 Strategy Market Outlook 3
Slide 4: Overview of FHT
Overview of FHT 4 InterContinental Singapore
Slide 5: Global Hotel and Serviced Residence Trust
Global Hotel and Serviced Residence Trust Stapled Group Comprises FH-REIT and FH-BT1 Hospitality and hospitality-related assets located globally, Investment Mandate excluding Thailand Sponsor and Strategic Partner Frasers Property – 25.2% TCC Group Investments – 37.0% For FH-REIT: Frasers Hosp
Slide 6: Independent Platform Providing Flexibility and Access
Independent Platform Providing Flexibility and Access Strong Developer-Sponsor in Frasers Property One of Singapore’s largest real estate groups with strong real estate capabilities and proven track record in REIT management. Independent Hospitality Trust Platform Best of both worlds – leverage
Slide 7: Resilient and Diversified Portfolio Across Geography
Resilient and Diversified Portfolio Across Geography Edinburgh ▪ Fraser Suites Edinburgh Glasgow Europe ▪ Fraser Suites Glasgow UK Germany London Kobe ▪ ibis Styles London Gloucester Road ▪ ANA Crowne Plaza Kobe ▪ Park International London Japan ▪ Fraser Place Canary Wharf ▪ Fraser Suites Queens Gat
Slide 8: Financial Review: 1Q FY2020
Financial Review: 1Q FY2020 Novotel Melbourne on Collins
Slide 9: Book Value of Portfolio as at Dec 2019
Book Value of Portfolio as at 31 Dec 2019 Book Value of Portfolio Germany Country 4% as at 31 Dec 2019 Malaysia 6% Australia AUD 722.0 m Japan 9% Australia Singapore SGD 837.2 m 31% Portfolio UK GBP 192.6 m UK Book Value Japan JPY 16,888.6 m 15% SGD 2.35 b Malaysia MYR 420.9 m Germany EUR 69.3 m Sin
Slide 10: Financial Review for 1Q FY2020
Financial Review for 1Q FY2020 SGD m 1Q FY2020 1Q FY2019 Variance Gross Revenue (GR) 42.4 40.6 4.3% Net Property Income (NPI) 33.2 31.1 6.8% Distribution Income (DI) 25.5 23.7 7.4% Distribution Per Stapled Security (DPS) 1.3301 cents 1.2542 cents 6.1% GR and NPI improved yoy (year-on-year) due to
Slide 11: Portfolio Contribution by Country for 1Q FY2020
Portfolio Contribution by Country for 1Q FY2020 Germany Germany 3% 4% Malaysia Malaysia Japan 5% 6% 13% Japan 14% Australia Australia GR 45% NPI 41% SGD 42.4 m SGD 33.2 m UK 15% UK 15% Singapore Singapore 19% 20% 11
Slide 12: Portfolio Highlights By Country for 1Q FY2020
Portfolio Highlights By Country for 1Q FY2020 Gross Operating Revenue (GOR) Gross Operating Profit (GOP) Country Local Currency Variance Local Currency Variance (m) (yoy) (m) (yoy) Australia 36.5 1.9% 17.7 5.4% Singapore 22.7 2.6% 9.1 2.0% UK 6.9 5.5% 3.7 7.3% Japan 1,675.8 3.3% 570.2 13.1% Malaysia
Slide 13: Australia Portfolio Performance
Australia Portfolio Performance AUD m 1Q FY2020 1Q FY2019 Variance GOR 36.5 35.9 1.9% GOP 17.7 16.8 5.4% • Novotel Melbourne on Collins (NMOC) • Novotel Sydney Darling Square (NSDS) • Sofitel Sydney Wentworth (SSW) • Fraser Suites Sydney (FSS) - Australia portfolio’s GOR and GOP increased 1.9% and 5
Slide 14: Singapore Portfolio Performance
Singapore Portfolio Performance SGD m 1Q FY2020 1Q FY2019 Variance GOR 22.7 22.1 2.6% GOP 9.1 8.9 2.0% • InterContinental Singapore (ICSG) • Fraser Suites Singapore (FSSG) - Singapore portfolio reported a 2.6% increase in GOR and a 2.0% increase in GOP yoy. - Portfolio RevPAR improved 6.9% yoy on th
Slide 15: UK Portfolio Performance
UK Portfolio Performance GBP m 1Q FY2020 1Q FY2019 Variance GOR 6.9 6.6 5.5% GOP 3.7 3.5 7.3% • ibis Styles London Gloucester Road (ISLG) • Park International London (PIL) • Fraser Place Canary Wharf (FPCW) • Fraser Suites Edinburgh (FSE) • Fraser Suites Glasgow (FSG) • Fraser Suites Queens Gate (FS
Slide 16: Japan Portfolio Performance
Japan Portfolio Performance JPY m 1Q FY2020 1Q FY2019 Variance GOR 1,675.8 1,732.4 3.3% GOP 570.2 504.3 13.1% • ANA Crowne Plaza Kobe (CPK) - CPK’s GOR declined 3.3% or JPY 56.6 m yoy due to lower room and F&B revenue. - Notwithstanding the lower GOR, its GOP increased 13.1% or JPY 65.9 m yoy. The h
Slide 17: Malaysia Portfolio Performance
Malaysia Portfolio Performance MYR m 1Q FY2020 1Q FY2019 Variance GOR 23.5 21.8 7.5% GOP 8.0 5.5 46.4% • The Westin Kuala Lumpur (TWKL) - TWKL continued to recover from a market-wide low base as GOR improved 7.5% yoy, driven mainly by higher room revenue. - With its continual efforts to increase ope
Slide 18: Strategy
Strategy ANA Crowne Plaza Kobe
Slide 19: Enhancing Stapled Securityholders' Returns
Enhancing Stapled Securityholders’ Returns Active Asset Management Capital Management • Target at increasing revenue • Manage forex volatility and cost efficiencies, and • Debt cost of funding reducing property related • Taxation expenses Acquisition Growth AEI Value Creation • In line with investme
Slide 20: Recent Asset Enhancement Initiative
Recent Asset Enhancement Initiative ibis Styles London Gloucester Road (ISLG) – formerly Best Western Cromwell London Conversion from Best Western (franchised) to ibis Styles (AccorHotels managed) since 1 Jan 2018. Renovation to reposition the hotel in line with the ibis Styles brand was complet
Slide 21: Other Potential Asset Enhancement Initiatives
Other Potential Asset Enhancement Initiatives ANA Crowne Plaza Kobe Park International London Novotel Melbourne on Collins ANA Crowne Plaza Kobe Park International London Novotel Melbourne on Collins 21
Slide 22: Defensive Acquisition of Novotel Melbourne on Collins
Defensive Acquisition of Novotel Melbourne on Collins Location 270 and 233-239 Collins Street, Melbourne, Victoria, Australia Tenure Freehold Gross Floor 20,860 sq m (224,535 sq ft) Area Description Located along the prime Collins Street, in the heart of Melbourne CBD Surrounded by Grade A
Slide 23: Yield-Accretive Acquisition of Maritim Hotel Dresden
Yield-Accretive Acquisition of Maritim Hotel Dresden Devrientstr. 10 and 12, Kleine Packhofstr. 17, Location 01067 Dresden Tenure Freehold Located in Dresden’s historical city centre; within the vicinity of various government and Description business offices and major tourist attractions Dir
Slide 24: Yield-Accretive Acquisition of Sofitel Sydney Wentworth
Yield-Accretive Acquisition of Sofitel Sydney Wentworth Location 61 – 101 Phillip Street, Sydney, Australia Grade Luxury Leasehold 75-year leasehold Tenure Gross Floor 33,589 sqm Area An iconic heritage 5-star hotel strategically located in Sydney’s core CBD and within a Description short
Slide 25: Disciplined Approach in Capital Management
Disciplined Approach in Capital Management As at 31 Dec 2019 Balance Sheet Hedging Investment Properties SGD 2,128.2 m JPY 73.3% Property, Plant and SGD 226.1 m Equipment GBP 52.4% Total Assets SGD 2,462.3 m AUD 28.9% Total Borrowings SGD 870.0 m EUR 27.8% Gearing 35.5% MYR 22.6% Net Asset Value per
Slide 26: Prudent Risk Management
Prudent Risk Management Debt Maturity Profile (excludes short-term loans) As at 31 Dec 2019 SGD m Weighted Average Debt 4.38 years 300.0 to Maturity 251.1 250.0 Unsecured Debt 96.3% 200.0 183.3 Effective Cost of Borrowing 2.4% 149.1 150.0 150.0 Borrowings on Fixed Rates 73.4% 100.0 100.0 Interest Co
Slide 27: Market Outlook
Market Outlook 27 The Westin Kuala Lumpur
Slide 28: Australia
Australia For the first 9 months of 2019, Tourism Australia reported a yoy increase of 2.5% in international arrivals to 6.8 million. While hotel visitor nights in Sydney and Melbourne have risen, the growth has been offset by new supply1. In Sydney, approximately 2,300 rooms will be built in
Slide 29: Singapore
Singapore For the period from Jan to Nov 2019, the Singapore Tourism Board reported a 2.9% yoy growth in international visitor arrivals to 17.4 million. The outlook for Singapore’s tourism sector continues to be positive as refreshed and new tourism offerings and the introduction of new flight s
Slide 30: UK
UK According to VisitBritain, the UK welcomed 29.2 million overseas visitors in the first 9 months of 2019, up 2.0% yoy. Business visits were 1.0% below levels seen in 2018 while holiday visits were up 3.0% yoy. Looking ahead, the weak macroeconomic outlook and Brexit uncertainty may continue to
Slide 31: Japan
Japan For the period from Jan to Nov 2019, Japan National Tourism Organization reported a 2.8% yoy increase in foreign visitors to 29.4 million. Moving forward, the Tokyo Olympics is expected to drive inbound visitors to reach the 2020 goal of 40.0 million1. Hotel supply, on the other hand, is
Slide 32: Malaysia
Malaysia For the first 9 months of 2019, Tourism Malaysia reported a yoy growth of 3.7% in tourist arrivals to 20.1 million, with Singapore, Indonesia and China being the biggest contributors of tourist arrivals to Malaysia. For 2019, Tourism Malaysia aims to achieve tourist arrivals of 28.1 milli
Slide 33: Germany
Germany For the period of Jan to Nov 2019, the Federal Statistical Office of Germany recorded a 3.7% yoy increase in the number of overnight stays by domestic and foreign visitors1. In Dresden, the total number of domestic and foreign visitors for the first 9 months of 2019 rose 1.2% yoy2. Dre
Slide 34: Experience matters.
Experience matters. 34
Slide 35: Hotel Properties Managed by Third-Party Operators
Hotel Properties Managed by Third-Party Operators Property Country Description Tenure Class Rooms Novotel Strategically located within Melbourne on Australia Melbourne’s core CBD area Freehold Upscale 380 Collins along Collins Street 4.5-star hotel located within Novotel Sydney Mid- Australia close
Slide 36: Hotel Properties Managed by Third-Party Operators and Frasers Hospitality
Hotel Properties Managed by Third-Party Operators and Frasers Hospitality Property Country Description Tenure Class Rooms Elegant hotel ideally located in Park International Mid- UK the heart of Kensington and 75 years1 171 London scale Chelsea ANA Crowne Unique panoramic view of Kobe Upper Japan Fr
Slide 37: Serviced Residences Managed by Frasers Hospitality
Serviced Residences Managed by Frasers Hospitality Property Country Description Tenure Class Rooms First luxury apartments in Fraser Suites Sydney designed by Upper Australia 75 years1 201 Sydney internationally renowned Upscale architects Luxurious serviced residences in Fraser Suites Upper Singapo
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