CapitaLand Ascott Trust · SGX:HMN

CapitaLand Ascott Trust — Ascott Residence Trust — Investor Presentation (August 2011)

57 slides from CapitaLand Ascott Trust's investor presentation, August 2011

  1. Slide 1: Ascott Residence Trust Presentation to Investors

    Ascott Residence Trust Presentation to Investors August 2011

  2. Slide 2: Agenda

    Agenda • Introduction • Results Highlights • 2Q 2011 Portfolio Performance • Portfolio Information • Capital and Risk Management • Prospects • Summary • Appendices 2

  3. Slide 3: Disclaimer

    Disclaimer IMPORTANT NOTICE The value of units in Ascott Residence Trust (“Ascott Reit”) (the “Units”) and the income derived from them may fall as well as rise. The Units are not obligations of, deposits in, or guaranteed by Ascott Residence Trust Management Limited, the Manager of Ascott Reit (the

  4. Slide 4: Ascott Reit – Balanced and Diversified Portfolio

    Ascott Reit – Balanced and Diversified Portfolio United Kingdom Belgium 4 properties 2 properties France Germany 17 properties 2 properties Spain Japan 1 property 20 properties China 3 properties Philippines Vietnam 3 properties 5 properties Singapore 3 properties Indonesia 2 properties Australia S$

  5. Slide 5: Serviced Residences – An Attractive Asset Class

    Serviced Residences – An Attractive Asset Class Apartments for Serviced Residences Hotels Rent Long-term leases Hybrid between hotels and Short-term accommodation Lease Structure & apartments/condominiums Terms Variable lease terms from one week to one year or longer Dependent on Some seasonality of

  6. Slide 6: Results Highlights

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  7. Slide 7: 1H 2011 vs 1H 2010 Performance

    1H 2011 vs 1H 2010 Performance 1H 2011 1H 2010 Change Revenue (S$m) 140.4 87.9 +60% Gross Profit (S$m) 77.5 40.9 +89% Unitholders’ Distribution (S$m) 50.3 21.8 +130% Distribution Per Unit (S cents) 4.47 3.53 +27% Revenue Per Available Unit 140 124 +13% (S$/day) – serviced residences • Increase in re

  8. Slide 8: 2Q 2011 vs 2Q 2010 Performance

    2Q 2011 vs 2Q 2010 Performance 2Q 2011 2Q 2010 Change Revenue (S$m) 73.1 44.4 +65% Gross Profit (S$m) 41.2 20.8 +98% Revenue Per Available Unit 147 126 +17% (S$/day) – serviced residences • Increase in revenue and gross profit mainly due to the additional revenue of S$33.1 million and additional gro

  9. Slide 9: 2Q 2011 vs 2Q 2010 Performance

    2Q 2011 vs 2Q 2010 Performance 2Q 2011 2Q 2010 Change Unitholders’ Distribution (S$m) 26.3 11.6 +127 Distribution Per Unit (S cents) 2.33 1.87 +25% • Distribution per Unit was higher mainly due to the yield accretive acquisition of the 28 properties on 1 October 2010, and better performance from the

  10. Slide 10: 2Q 2011 vs Forecast Performance

    2Q 2011 vs Forecast Performance 2Q 2011 Forecast(1) Change Revenue (S$m) 73.1 73.4 - Gross Profit (S$m) 41.2 39.5 +4% Revenue Per Available Unit 147 138 +7% (S$/day) – serviced residences • Revenue was lower by S$0.3 million as compared to the forecast as the forecast included a S$1.1 million contri

  11. Slide 11: 2Q 2011 vs Forecast Performance

    2Q 2011 vs Forecast Performance 2Q 2011 Forecast(1) Change Unitholders’ Distribution (S$m) 26.3 22.7 +16% Distribution Per Unit (S cents) 2.33 2.01 +16% • Distribution per Unit was higher than the forecast due to higher gross profit mainly from Singapore properties and lower finance costs. Finance c

  12. Slide 12: Distribution Details

    Distribution Details To Be Paid Distribution Period 1 January to 30 June 2011 4.466 cents Distribution Rate per unit Last Day of Trading on 27 July 2011, 5:00pm “cum” Basis Ex-Date 28 July 2011, 9:00am Book Closure Date 1 August 2011 Distribution 26 August 2011 Payment Date 12

  13. Slide 13: Property Valuations

    Property Valuations • Property value higher by S$82.8 million following latest revaluations by HVS and Savills Advisory Services Limited – Mainly from the higher valuation of serviced residences in Singapore and France • NAV per unit as at 30 June 2011 was S$1.33, an increase of 4% from 31 December

  14. Slide 14: 2Q 2011 Portfolio Performance

    2Q 2011 Portfolio Performance 14

  15. Slide 15: Master Leases

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  16. Slide 16: Master Leases

    Master Leases Citadines Citadines Citadines Citadines Citadines Citadines Somerset Louvre Les Halles Place Croisette Arnulfpark Kurfursten- Salcedo Paris Paris d’Italie Cannes Munich damm Property Paris Berlin Makati Revenue Gross Profit 2Q 2011 2Q 2010 Forecast1 2Q 2011 2Q 2010 Forecast1 S$’M S$’M

  17. Slide 17: Management Contracts with Minimum Guaranteed Income

    Management Contracts with Minimum Guaranteed Income 17

  18. Slide 18: Overview of Management Contracts with Minimum Guaranteed Income

    Overview of Management Contracts with Minimum Guaranteed Income • 8 out of Ascott Reit’s 64 properties are on management contracts that provide minimum guaranteed income. • These properties contributed 22% of the Group’s gross profit for 2Q 2011. • These management contracts have an average weighted

  19. Slide 19: United Kingdom

    United Kingdom1 Citadines Citadines Citadines +15% Citadines Barbican Prestige Prestige Trafalgar 212 London Holborn- South Square Covent Kensington London 185 Garden London S$m +14% London 15 12.1 10.6 +5% 10 5.8 6.1 5 0 Revenue Gross Profit RevPAU S$ Forecast 2 2Q 2011 Continued market improvement

  20. Slide 20: Belgium

    Belgium1 Citadines Sainte- Citadines Toison Catherine Brussels d’Or Brussels S$m -3% +1% 4 3.4 3.3 101 102 3 +10% 2 1.0 1.1 1 0 RevPAU Revenue Gross Profit S$ Forecast 2 2Q 2011 Higher gross profit due to better cost management. 1 Belgium portfolio was acquired on 1 October 2010. Information for 2Q

  21. Slide 21: Spain

    Spain1 -1% Citadines Ramblas Barcelona 150 149 4 +5% 3 2.2 -8% 2.1 2 1.2 1.1 1 0 Revenue Gross Profit RevPAU S$ Forecast 2 2Q 2011 Revenue for 2Q 2011 included a top-up by the property manager of S$0.2 million for Citadines Ramblas Barcelona, as assumed in the forecast. 1 Spain portfolio was acquire

  22. Slide 22: Vietnam

    Vietnam Somerset West Lake Hanoi -26% S$m -18% -18% 1.5 -14% 102 1.1 91 1 0.9 0.9 75 0.6 0.7 0.6 0.5 0 Revenue Gross Profit RevPAU2 1 S$ 2Q 2010 Forecast 2Q 2011 As compared to the forecast, revenue and gross profit decreased due to weaker performance and a lower USD exchange rate than that assumed

  23. Slide 23: Management Contracts

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  24. Slide 24: Australia

    Australia +25% Somerset Somerset +20% 180 St Georges Gordon Heights Terrace Perth Melbourne 150 144 S$m +10% +22% 3 2.0 2.2 2 1.8 +100% +20% 1 0.5 0.3 0.6 0 Revenue Gross Profit RevPAU2 S$ 2Q 2010 Forecast1 2Q 2011 Revenue and RevPAU increased mainly due to the strengthening of AUD against SGD and h

  25. Slide 25: China

    China -8% Somerset Somerset Somerset Xu Hui Olympic Grand -16% Shanghai Tower Fortune -48% Property Garden S$m 128 Tianjin Property 122 117108 10 9.3 -4% Beijing -46% 5.0 4.8 +18% 5 5.1 3.7 2.1 1.7 2.0 0 Revenue Gross Profit RevPAU3 1 S$ 2Q 2010 Forecast 2Q 2011 Same store2 Lower performance in Shan

  26. Slide 26: Indonesia

    Indonesia Ascott Somerset -24% Jakarta Grand Citra +27% S$m -21% Jakarta 6.0 +29% 4.8 5.0 98 97 94 4.0 3.9 3.9 3.8 73 74 -7% 2.0 1.4 1.3 1.3 1.2 1.0 0.0 Revenue Gross Profit RevPAU3 S$ 2Q 2010 Forecast 1 2Q 2011 Same store2 On a same store basis, revenue decreased as compared to 2Q 2010 due to weake

  27. Slide 27: Japan

    Japan -38% -37% Somerset Azabu Somerset 18 rental housing -20% East Tokyo Roppongi properties in S$m -19% Tokyo Tokyo 150 151 4.3 4.4 -26% 4 3.5 -17% 94 2.4 2.7 2.1 2.1 2.0 2 1.3 0.8 0.8 0.3 0 Revenue 2 Gross Profit2 RevPAU3 S$ 2Q 2010 Forecast 1 2Q 2011 Serviced residence contribution Revenue and R

  28. Slide 28: Philippines

    Philippines -3% +3% -6% Ascott Makati Somerset 166 161 Millennium 156 S$m Makati 7.2 7.7 8 7.2 7.0 +11% 4 2.8 3.1 3.1 2.6 0 Revenue Gross Profit RevPAU2 S$ 1 2Q 2010 Forecast 2Q 2011 Exclude BI claim Excluding the BI claim, revenue and gross profit increased as compared to 2Q 2010. Revenue and RevPA

  29. Slide 29: Singapore

    Singapore +16% 269 240 250 Somerset Somerset Citadines Mount +36% 215 Grand Cairnhill Liang Court Sophia Property S$m Property 184 +13% 15 13.1 +77% 11.6 10 9.3 10.1 +25% 7.4 +92% 7.5 6.0 5 3.9 5.8 5.0 0 Revenue Gross Profit RevPAU3 1 Same store2 S$ 2Q 2010 Forecast 2Q 2011 On a same store basis, re

  30. Slide 30: Vietnam

    Vietnam -12% Somerset Somerset Somerset Somerset Ho -10% Grand Hanoi Hoa Binh Chancellor Chi Minh -19% S$m Hanoi Court Ho Chi City 12 +10% Minh City 118 108 10.1 114 95 8.3 9.1 -2% 101 +6% 8.1 7.3 5.7 6 5.3 5.6 4.7 4.7 0 Revenue Gross Profit RevPAU3 1 S$ 2Q 2010 Forecast 2Q 2011 Same store2 On a sam

  31. Slide 31: Portfolio Information

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  32. Slide 32: Geographical Diversification

    Geographical Diversification Ascott Reit’s Share of Asset Values As at 30 June 2011 Australia Belgium Spain 1.9% 1.7% 1.6% Germany Singapore 2.1% 23.1% Japan 10.0% France 38% 62% United 21.0% Kingdom 16.6% Indonesia 2.4% Vietnam Philippines 8.0% China 6.5% 5.1% Total Total = = S$2.73 S$2.73 billion

  33. Slide 33: Balance of Income Stability and Growth

    Balance of Income Stability and Growth YTD 30 June 2011 Gross Profit Master Leases 26% Management Contracts 56% Management Contracts with Minimum Guaranteed Income 18% Total Total = = S$77.5 S$77.5 million million Both Both master master leases leases and and serviced serviced residence residence ma

  34. Slide 34: Apartment Rental Income By Market Segment

    Apartment Rental Income By Market Segment Pan-Asian Portfolio Europe Portfolio YTD 30 June 2011 YTD 30 June 2011 Master Lease Leisure 1% Leisure* 10% 26% Master Leases 41% Corporate Travel 89% Corporate Travel* 33% * Rental income from Leisure and Corporate Travel segments in Europe relate to the Un

  35. Slide 35: Length of Stay

    Length of Stay Apartment Rental Income By Length of Stay1 YTD 30 June 2011 > 12 1 week or months less 23% 18% 6 to 12 months 10% < 1 month 27% 1 to 6 months 22% Average Average length length of of stay stay is is about about 5 months22 5 months 1 Information for properties on serviced residence mana

  36. Slide 36: Diverse Tenant Mix

    Diverse Tenant Mix Apartment Rental Income By Industry1 YTD 30 June 2011 Healthcare Others 2% 5% Industrial Real estate/ 16% Lodging 13% Financial Institutions 13% Media & Telecomms 3% IT Manufacturing 7% 6% Govt & NGOs Energy & 13% Consumers Utilities 13% 9% Earnings Earnings diversified, diversifi

  37. Slide 37: Capital & Risk Management

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  38. Slide 38: Healthy Balance Sheet

    Healthy Balance Sheet • Gearing of 40.1%, well within the 60% gearing limit allowable under MAS property fund guidelines Ascott Ascott Reit Reit Gearing Gearing Profile Profile As As at at 30 30 June June 2011 2011 2500 Debt S$1,095.9m (40.1%) 2000 Ascott Reit’s 1500 proportionate share of asset val

  39. Slide 39: Debt Profile

    Debt Profile Maturity Profile Currency Profile As at 30 June 2011 As at 30 June 2011 S$’m S$’m 500 600 S$541.7m 50% S$396.2m 36% 500 400 S$312.8m 28% 400 300 S$275.2m 300 25% 200 S$159.0m S$119.4m* 15% S$108.5m 200 11% S$118.5m 10% S$77.0m 11% S$79.4m 100 100 7% 7% S$9.4m S$4.1m <1% 0 0 Singapore EU

  40. Slide 40: Interest Rate Profile

    Interest Rate Profile Interest Rate Profile As at 30 June 2011 Floating S$212.8m (19%) Floating with interest rate caps, Fixed S$239.6m (22%) *S$643.5m (59%) Effective Effective Borrowing Borrowing Rate Rate of of 3.2% 3.2% Interest Interest Cover Cover Ratio Ratio of of 4.0x 4.0x * S$190.1m is due

  41. Slide 41: Foreign Exchange Profile

    Foreign Exchange Profile Ascott Reit’s Share of Gross Profit Foreign Exchange Movements YTD 30 June 2011 Japan Australia Percentage of Foreign exchange S$4.4m S$1.2m Ascott Reit’s rate movements Singapore China Currency Share of Gross from Dec ’10 S$14.2m Profit to Jun’ 11 S$3.2m YTD June 2011 Phili

  42. Slide 42: Prospects

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  43. Slide 43: Prospects

    Prospects The Group expects to continue to enjoy RevPAU growth led by Singapore and the United Kingdom (“UK”). We will also continue to enjoy income stability as a result of our geographical diversification across property and economic cycles and the stable base of income from master leases and serv

  44. Slide 44: Summary

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  45. Slide 45: Summary

    Summary Exposure to Demand for serviced residences underpinned by FDI inflows and GDP growth Serviced Residence asset Operated under established international brands: Ascott, Citadines and class Somerset Balanced Significant presence in the Pan Asia region (55%) and added diversification to exposure

  46. Slide 46: Thank You

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  47. Slide 47: Appendix: Ascott Reit Portfolio

    Appendix: Ascott Reit Portfolio 47

  48. Slide 48: Ascott Reit Asia Portfolio

    Ascott Reit Asia Portfolio Australia China Somerset Gordon Heights Somerset St Georges Somerset Grand Fortune Somerset Xu Hui Somerset Olympic Melbourne Terrace Perth Garden Property Beijing Shanghai Tower Property Tianjin • Located in Melbourne’s Central • Located in Perth’s Central • Located along

  49. Slide 49: Ascott Reit Asia Portfolio (cont'd)

    Ascott Reit Asia Portfolio (cont’d) Japan Somerset Azabu East Tokyo Somerset Roppongi Tokyo 18 rental housing properties in Tokyo • Located in Minato-Ku in Tokyo’s • Located in Minato-Ku in Tokyo’s • 509 rental housing units located in eight wards in Tokyo, namely Shinjuku-ku, Central Business Distr

  50. Slide 50: Ascott Reit Asia Portfolio (cont'd)

    Ascott Reit Asia Portfolio (cont’d) Singapore Somerset Liang Court Property Somerset Grand Cairnhill Citadines Mount Sophia Property Singapore Singapore Singapore • Located along River Valley Road • Located along Orchard Road, • Number of Apartment Units: 154 with easy access to the Central Singapor

  51. Slide 51: Ascott Reit Europe Portfolio

    Ascott Reit Europe Portfolio France (in Paris) Citadines Louvre Paris Citadines Trocadéro Paris Citadines Place d’Italie Paris Citadines Montmartre Paris • Number of Apartment Units: 51 • Number of Apartment Units: 97 • Number of Apartment Units: 169 • Number of Apartment Units: 111 • Net Floor Area

  52. Slide 52: Ascott Reit Europe Portfolio (cont'd)

    Ascott Reit Europe Portfolio (cont’d) France (in Paris) France (outside Paris) Citadines Porte de Versailles Citadines Prado Chanot Citadines Les Halles Paris Citadines Croisette Cannes Paris Marseille • Number of Apartment Units: 189 • Number of Apartment Units:80 • Number of Apartment Units: 58 •

  53. Slide 53: Ascott Reit Europe Portfolio (cont'd)

    Ascott Reit Europe Portfolio (cont’d) United Kingdom Citadines Prestige South Citadines Trafalgar Square Citadines Prestige Holborn- Citadines Barbican London Kensington London London Covent Garden London • Number of Apartment Units:129 • Number of Apartment Units: 92 • Number of Apartment Units: 18

  54. Slide 54: Appendix: Brand Introduction

    Appendix: Brand Introduction 54

  55. Slide 55: Ascott The Residence

    Ascott The Residence • Defining Exclusive Living – Luxurious, exclusive, discreet – Located in prime business districts of key cities – Provides efficient business support services, in an exclusive and luxurious environment 55

  56. Slide 56: Citadines Apart'hotel

    Citadines Apart’hotel • Defining Vibrant Living – Vibrancy of independent city living – Oasis of calm in key bustling cities – Personalised conveniences for savvy and vibrant individuals on the go – Range of services and amenities to complement different lifestyles – Modern comforts, business connec

  57. Slide 57: Somerset Serviced Residence

    Somerset Serviced Residence • Defining Balanced Living – A serviced residence for executives and their families looking for work life balance – A stylish home with recreational facilities, lifestyle activities and business support services – A place to make friends, share family experiences, get hel

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