CDL Hospitality Trusts · SGX:J85

CDL Hospitality Trusts — Shareholder Meeting (June 2020)

46 slides from CDL Hospitality Trusts's shareholder meeting presentation, Jun 26, 2020

  1. Slide 1: Annual General Meetings FY 2019

    Annual General Meetings FY 2019 26 June 2020 SINGAPORE | BRISBANE | PERTH | AUCKLAND | MALDIVES | TOKYO | CAMBRIDGE | MANCHESTER | MUNICH | FLORENCE

  2. Slide 2: Important Notice

    Important Notice This document may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assump

  3. Slide 3: Agenda

    Agenda  Overview and Key Highlights of FY 2019 4  Management Strategy 12  Navigating COVID-19 Crisis 34  Conclusion 45 3

  4. Slide 4: Overview and Key Highlights of FY 2019

    Overview and Key Highlights of FY 2019

  5. Slide 5: Leading Hospitality Trusts with Strong Sponsor

    Leading Hospitality Trusts with Strong Sponsor City Developments Limited  Leading global real estate company with a network spanning 106 locations in 29 countries and regions  Proven track record of over 55 years  Portfolio consists of residences, offices, hotels, serviced apartments and shopping

  6. Slide 6: High Quality Portfolio with Assets Across the World

    High Quality Portfolio with Assets Across the World MANCHESTER IPO • 1 Hotel 31 Dec 2019 19 Jul 2006 CAMBRIDGE • 1 Hotel 5 19* Properties MUNICH TOKYO • 1 Hotel • 2 Hotels FLORENCE 1,915 5,089 Rooms • 1 Hotel SINGAPORE* • 6 Hotels • 1 Retail Mall Portfolio S$0.8B S$2.8B Valuation +236% MALDIVES • 2

  7. Slide 7: Key Highlights of FY 2019

    Key Highlights of FY 2019 Investing Close to S$800M in Two Singapore Hotels Two Significant Acquisitions  Forward purchase of new Moxy Hotel (1)  Acquisition of W Singapore – Sentosa Cove (2) + Unlock Value in NCQ Divestment  Sale price of S$375.9M  S$174.9M or 87.0% higher than purchase price T

  8. Slide 8: Consistent Growth in Portfolio Value

    Consistent Growth in Portfolio Value  Portfolio value increased S$64.0 million or 2.3% as at 31 Dec 2019 and grew at a CAGR of 9.4% (1) since IPO Portfolio Value S$ Million 2,847 2,783 2,743 CAGR of 9.4% (1) 2,469 2,438 2,355 2,239 2,045 2,030 1,787 1,629 1,481 1,502 1,102 846 2019 2018 2017 2016 2

  9. Slide 9: Geographically Diversified Portfolio

    Geographically Diversified Portfolio Breakdown of Portfolio Value as at 31 December 2019 (1) Singapore 64.5% Oceania 12.1% Orchard Hotel 16.4% New Zealand – Grand 7.0% Europe Millennium Auckland Grand Copthorne Waterfront Hotel 13.0% Australia 5.0% Oceania Novotel Singapore Clarke Quay 12.9% Novotel

  10. Slide 10: Geographically Diversified Portfolio (Con’t)

    Geographically Diversified Portfolio (Con’t) Breakdown of Net Property Income (“NPI”) for FY 2019 Singapore 62.3% Europe 18.0% Novotel Singapore Clarke Quay 15.1% United Kingdom 9.0% Oceania Orchard Hotel 12.9% Hilton Cambridge City Centre 5.4% Grand Copthorne Waterfront Hotel 12.0% The Lowry Hotel

  11. Slide 11: Financial Highlights (NPI and DPS)

    Financial Highlights (NPI and DPS)  Increase in NPI due to improved performance for Singapore (particularly in 2H 2019) and inorganic contribution from the Florence hotel (1), but offset by:  Major refurbishment projects, which resulted in downtime and disruption to NPI  Lower contribution and we

  12. Slide 12: Management Strategy

    Management Strategy

  13. Slide 13: Long Term Management Strategy to Enhance Unitholders’ Value

    Long Term Management Strategy to Enhance Unitholders’ Value Acquisition Growth Asset Management 1 Strategy 2 Strategy  Pursue quality assets with growth potential  Work closely with master lessees and/or hotel managers to  Adopt a medium to long term implement active revenue and cost perspective

  14. Slide 14: Acquisition Growth and Capital Recycling Strategies

    Management Strategy Acquisition Growth and Capital Recycling Strategies Redevelopment of NCQ and Acquisition of W Hotel

  15. Slide 15: Unlocking Value and Securing Future Growth

    Unlocking Value and Securing Future Growth Redevelopment of NCQ Acquisition of 1   Divestment of NCQ Forward purchase of new Moxy Hotel 2 W Hotel  Both transactions approved by unitholders in Jan 2020  Divestment of NCQ and acquisition of W Hotel expected to complete in Jul 2020 Long-term value

  16. Slide 16: Investing Close to S$800M in Two Singapore Hotels

    Investing Close to S$800M in Two Singapore Hotels  Net cash proceeds estimated to be about S$26M (1) after completion of divestment of NCQ and acquisition of W Hotel in Jul 2020  Payment for the new Moxy Hotel only due nearer to completion of acquisition around 2025 (2) Divestment and Acquisition

  17. Slide 17: Asset Management Strategy: Asset Enhancement Initiatives

    Management Strategy Asset Management Strategy Asset Enhancement Initiatives

  18. Slide 18: Significant Asset Enhancement Initiatives

    Significant Asset Enhancement Initiatives Singapore Maldives United Kingdom Orchard Hotel Raffles Maldives Meradhoo Copthorne King’s Hotel Studio M Hotel Angsana Velavaru The Lowry Hotel Position for Long Term Growth of Market  OHS: Most of extensive makeover project Improve Asset Competitiveness a

  19. Slide 19: Asset Enhancement Initiatives – Orchard Hotel

    Asset Enhancement Initiatives – Orchard Hotel  Embarked on a major facelift of all the meeting facilities and the Grand Ballroom  Completed in Mar 2019 Grand Ballroom (Before) Grand Ballroom (After) Strengthen hotel’s current position as 1 of only 4 hotels in Singapore with a ballroom that can acc

  20. Slide 20: Asset Enhancement Initiatives – Orchard Hotel (Con’t)

    Asset Enhancement Initiatives – Orchard Hotel (Con’t)  Orchard Wing completed a rejuvenation project  260 bedrooms in Orchard Wing fully upgraded in Jun 2019 Orchard Wing Deluxe Room (Before) Orchard Wing Grand Deluxe Room (After) Significant modernisation of room product to enhance guest experien

  21. Slide 21: Asset Enhancement Initiatives – Copthorne King’s Hotel

    Asset Enhancement Initiatives – Copthorne King’s Hotel  Makeover of 142 rooms in the Tower Wing  New rooms revamped with contemporary Chinese decor Superior Room (Before) Signature Studio (After) Strong improvement in hotel’s product offering 21

  22. Slide 22: Asset Enhancement Initiatives – Raffles Maldives Meradhoo

    Asset Enhancement Initiatives – Raffles Maldives Meradhoo Over-water Villas First flagship “Raffles Hotels & Resorts” in Maldives 22

  23. Slide 23: Asset Enhancement Initiatives – Raffles Maldives Meradhoo (Con’t)

    Asset Enhancement Initiatives – Raffles Maldives Meradhoo (Con’t) Yuzu (Restaurant) and Yapa Sunset Bar Over-water Villas Bedroom Gestation period of a few years expected before reaching a normalised occupancy level 23

  24. Slide 24: Asset Enhancement Initiatives – Raffles Maldives Meradhoo (Con’t)

    Asset Enhancement Initiatives – Raffles Maldives Meradhoo (Con’t) Yuzu (Restaurant) and Yapa Sunset Bar 24

  25. Slide 25: Asset Enhancement Initiatives – Raffles Maldives Meradhoo (Con’t)

    Asset Enhancement Initiatives – Raffles Maldives Meradhoo (Con’t) New Presidential Villa (concept drawings – may be subject to changes) 25

  26. Slide 26: Asset Enhancement Initiatives – Angsana Velavaru

    Asset Enhancement Initiatives – Angsana Velavaru Main Public Pool 26

  27. Slide 27: Asset Enhancement Initiatives – Angsana Velavaru (Con’t)

    Asset Enhancement Initiatives – Angsana Velavaru (Con’t) Land Villa with New Infinity Pool 27

  28. Slide 28: Asset Enhancement Initiatives – The Lowry Hotel

    Asset Enhancement Initiatives – The Lowry Hotel Before After Hotel Lobby 28

  29. Slide 29: Asset Enhancement Initiatives – The Lowry Hotel (Con’t)

    Asset Enhancement Initiatives – The Lowry Hotel (Con’t) Before After The Lowry Lounge and Bar 29

  30. Slide 30: Asset Enhancement Initiatives – The Lowry Hotel (Con’t)

    Asset Enhancement Initiatives – The Lowry Hotel (Con’t) Before After The Lowry Lounge and Bar 30

  31. Slide 31: Capital Management Strategy

    Management Strategy Capital Management Strategy

  32. Slide 32: Healthy Balance Sheet

    Healthy Balance Sheet As at 31 December 2019 35.4% S$526M Debt Headroom Low Gearing at 45% Gearing (1) Strong Financial 2.2% Metrics Through 4.7x Proactive Capital Interest Low Cost of Debt Management Coverage Ratio (2) Maintained 2.9 years ‘BBB-’ Weighted Average Debt to Maturity Fitch Issuer Defau

  33. Slide 33: Well-Balanced Debt Profile

    Well-Balanced Debt Profile  Three loans and one RCF successfully refinanced in FY 2019  7.4% of loans maturing in 2020  Prudent capital management with fixed rate borrowings constituting ~63% of total borrowings (1) Debt Maturity Profile as at 31 Dec 2019 (2) Weighted Average Debt to Maturity: ~2

  34. Slide 34: Navigating COVID-19 Crisis

    Navigating COVID-19 Crisis

  35. Slide 35: Unprecedented Global Health Pandemic

    Unprecedented Global Health Pandemic 9.5M cases and Country >484K deaths lockdowns and globally (1) travel curbs Far-reaching Devastation for impact on global tourism economies and hospitality industry Massive Potential vaccine governmental aid showing early and stimulus signs of success measures (1

  36. Slide 36: Impact on CDLHT and Tactical Measures

    Impact on CDLHT and Tactical Measures  Overseas properties either closed on a temporary basis or operating at low occupancies  RevPAR across CDLHT’s portfolio significantly affected Impact on CDLHT  Lack of visibility on recovery trajectory  Full extent of impact unable to be determined yet but

  37. Slide 37: Providing a Clean, Safe and Comfortable Experience for Guests

    Providing a Clean, Safe and Comfortable Experience for Guests Appropriate Screening Higher Safety Standards Measures for Food & Beverage  Temperature check on  Enhanced food safety arrival for all guests and protocols, deep cleaning and employees meals served individually  Collection of guest hea

  38. Slide 38: Portfolio Status as of Jun 2020

    Portfolio Status as of 24 Jun 2020 Country Assets Status Market Situation  Borders closed to short-term visitors since Mar  Visitor arrivals down 57.7% for YTD Apr 2020 (1) 6 hotels Singapore Open  Resumption of activity for F&B and retail businesses from 19 Jun 1 retail mall  Limited inbound tr

  39. Slide 39: Portfolio Status as of Jun 2020

    Portfolio Status as of 24 Jun 2020 Country Assets Status Market Situation  Entry ban on foreign travellers from most countries since Apr  Visitor arrivals down 64.1% for YTD Apr 2020 (1) Japan Tokyo: 2 hotels Open  Tokyo 2020 Olympics and Paralympics postponed to 2021  State of emergency lifted

  40. Slide 40: Singapore Market

    Singapore Market  Healthy 3.3% yoy growth in visitor arrivals for 2019 before start of pandemic (1)  Gradual reopening of borders for safe travel – green lane travel arrangements with six China provinces started on 8 Jun, discussions with more countries underway  Well positioned for recovery – su

  41. Slide 41: Singapore – Investment in Tourism

    Singapore – Investment in Tourism Infrastructure for Decades Ahead New Large-Scale Tourism Projects Being Planned Across The Entire Island Changi Airport (1) (2) Jurong Lake District (3)  Expansion plans which will  Set to be a new growth area eventually double current with a commercial hub and ca

  42. Slide 42: Singapore – Investment in Tourism

    Singapore – Investment in Tourism Infrastructure for Decades Ahead New Large-Scale Tourism Projects Being Planned Across The Entire Island Sentosa-Brani Masterplan (2) Greater Southern Waterfront (1)  Reshaping Sentosa and Pulau Brani into a premier leisure and  A new major gateway and tourism des

  43. Slide 43: Fixed Rent Profile of CDLHT Hotels

    Fixed Rent Profile of CDLHT Hotels Fixed Rent Profile (1)(2)  Portfolio fixed rent of ~$53.3M (excluding NCQ which will be divested by Jul 2020)  Partially mitigates performance downside from COVID-19 impact  More than 2/3 of fixed rent are from leases with entities of Sponsor Fixed Rent from Hot

  44. Slide 44: Maintain Healthy Financial Position

    Maintain Healthy Financial Position  Healthy balance sheet with low gearing and large debt headroom  Strong liquidity position through proactive management of cash reserves and credit facilities  Secured an additional S$100M committed multi-currency RCF in Jun 2020  Active discussion with banks

  45. Slide 45: Conclusion

    vay ee a1 I ta —

  46. Slide 46: Conclusion

    Conclusion  Financial performance for FY 2020 will be severely affected by unprecedented downturn in global tourism Outlook  Difficult to determine recovery trajectory but travel may slowly resume with borders being gradually reopened  High quality assets located in key gateway cities or premium

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