Capitaland Ascott Trust · SGX:HMN
Capitaland Ascott Trust — H1 2023 Earnings Presentation
37 slides from Capitaland Ascott Trust's earnings presentation, Jul 27, 2023
Slide 1: 1H 2023 Financial Results
CapitaLand Ascott Trust 1H 2023 Financial Results 27 July 2023
Slide 2: Important Notice
Important Notice This presentation may contain forward-looking statements. 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 assumptions. Representative examples of these factor
Slide 3: Table of Content
Table of Content 01 04 Overview of CLAS Portfolio Updates 02 05 1H 2023 Financial Highlights Capital & Risk Management 03 06 Key Market Updates Looking Ahead Citadines Citadines CentralCentral Shinjuku Shinjuku Tokyo Tokyo
Slide 4: Overview of CapitaLand Ascott Trust
Overview of CapitaLand Ascott Trust Ascott Orchard Singapore
Slide 5: Largest Lodging Trust in Asia Pacific
Largest Lodging Trust in Asia Pacific Constituent of FTSE EPRA Nareit Global Developed Index China The United Kingdom S$8.1b 4 properties 5 properties Total Assets South Korea as at 30 Jun 2023 Belgium 2 properties The United States of America 2 properties 11 properties1 Spain Japan >19,000 1 1 prop
Slide 6: Diversified Portfolio With Balanced Mix of Income Streams
Diversified Portfolio With Balanced Mix of Income Streams Proxy to recovery of hospitality sector while remaining resilient against downside risks Global presence across 15 countries, Diversified lodging asset classes anchored in Asia Pacific 20% 57 18 23 9 Serviced Hotels/ Rental Student Europe Res
Slide 7: Commitment to Sustainability & Corporate Governance
Commitment to Sustainability & Corporate Governance Aligned with CapitaLand Investment’s 2030 Sustainability Master Plan (SMP) Accolades & Awards Constituent of Global Sector Leader Best Investor Relations (Listed – Hotel) Ranked 1st – Gold Best Annual Report • iEdge-UOB APAC Yield Focus Only hospit
Slide 8: 1H 2023 Financial Highlights
1H 2023 Financial Highlights lyf one-north Singapore
Slide 9: Sustained Distribution Growth on Robust Lodging Demand
Sustained Distribution Growth on Robust Lodging Demand Adjusted Distribution per Stapled Security (DPS)1 rose 37% y-o-y in 1H 2023 1H 2023 Revenue Gross Profit Total Distribution DPS Adjusted DPS1 30% 31% 26% 19% 37% y-o-y y-o-y y-o-y y-o-y y-o-y to S$346.9 mil to S$154.4 mil to S$96.3 mil to 2.78 c
Slide 10: 1H 2023 Portfolio RevPAU Rose 44% Y-o-Y
1H 2023 Portfolio RevPAU Rose 44% Y-o-Y Higher growth income contribution as improving flight frequencies drove recovery Growth Income: Contributed 42% of 1H 2023 gross profit (1H 2022: 32%) • In 2Q 2023, portfolio RevPAU grew 20% y-o-y to 98% of Portfolio RevPAU pre-Covid 2Q 2019 pro forma RevPAU1
Slide 11: Resilience from Stable Income Sources
Resilience from Stable Income Sources Minimum rents and guaranteed income provide downside protection while variable components offer upside in a recovery Stable Income1: Contributed 58% of 1H 2023 gross profit (1H 2022: 68%) Master leases Longer-stay properties (rental housing and student accommoda
Slide 12: 1H 2023 – Financial Performance by Contract Types
1H 2023 – Financial Performance by Contract Types Stronger performance across all contract types Revenue (S$‘mil) Gross Profit (GP) (S$‘mil) RevPAU1 (S$) 1H 2023 1H 2022 % Change 1H 2023 1H 2022 % Change 1H 2023 1H 2022 % Change Master Leases 43.6 39.9 9% 39.5 36.1 9% n.a. n.a. n.a. Management Contr
Slide 13: Diversified Portfolio with Mix of Growth and Stable Income Streams
Diversified Portfolio with Mix of Growth and Stable Income Streams Growth income sources contributed 42% of CLAS’ gross profit in 1H 2023 Contract types with a fixed / minimum rent component Management contracts of serviced Master leases 25.5% residences and hotels Australia 3.2% Australia 11.7% Fra
Slide 14: Key Market Updates
Key Market Updates La Clef Louvre Paris
Slide 15: 1H 2023 Performance of CLAS' Key Markets
1H 2023 Performance of CLAS’ Key Markets Revenue (LC ‘mil) Gross Profit (LC ‘mil) RevPAU (LC) 1H 2023 1H 2022 % Change 1H 2023 1H 2022 % Change 1H 2023 1H 2022 % Change Master Leases Australia AUD 5.9 5.4 9% 5.5 5.1 8% n.a. n.a. n.a. France EUR 11.6 8.7 33% 10.6 8.0 33% n.a. n.a. n.a. Japan JPY 1,01
Slide 16: 2Q 2023 RevPAU Performance of CLAS' Key Markets
2Q 2023 RevPAU Performance of CLAS’ Key Markets Majority of key markets performing at same-store pro forma 2Q 2019 RevPAU levels or above % of 2Q 2019 same- 2Q 2023 2Q 2022 % Change store pro forma RevPAU1 Management Contracts with Minimum Guaranteed Income (MCMGI) Singapore2 S$ 370 - n.m. n.m. Unit
Slide 17: Australia
Australia Robust performance driven by demand from all segments; events facilitate a further boost 12% of total assets, 15% of 1H 2023 gross profit: 5 serviced residences (SRs) under master leases; 7 hotels and 2 SRs under management contracts Management Contracts – SRs & Hotels • Outlook for 3Q 202
Slide 18: China
China Performance anchored by long stays; outlook expected to improve as flight frequencies increase 4% of total assets, 2% of 1H 2023 gross profit: 5 SRs under management contracts • 1H 2023 revenue and gross profit increased 25% • Forward bookings for 3Q 2023 reflect increased and 139% y-o-y respe
Slide 19: France
France Rental income boosted by strong underlying performance and contribution from La Clef Tour Eiffel Paris; outlook remains positive 8% of total assets, 10% of 1H 2023 gross profit: 16 SRs under master leases • 1H 2023 revenue increased 33% y-o-y mainly due to • Outlook for 3Q 2023 remains positi
Slide 20: Japan
Japan Strong international demand continues to drive recovery; spring season provides additional uplift 18% of total assets, 16% of 1H 2023 gross profit: 3 hotels and 1 student accommodation under master lease; 3 SRs, 2 hotels and 23 rental housing under management contracts Management Contracts – S
Slide 21: Singapore
Singapore Sustained strong performance underpinned by demand across all segments 18% of total assets, 10% of 1H 2023 gross profit: 2 SRs and 1 hotel under management contracts; 1 SR under management contract with minimum guaranteed income (MCMGI); 1 SR under development Management Contracts – SRs &
Slide 22: United Kingdom
United Kingdom Recovery momentum remains strong; outlook continues to be positive on strong international demand during the summer season 7% of total assets, 8% of 1H 2023 gross profit: 4 SRs under management contracts with minimum guaranteed income (MCMGI) RevPAU (GBP) • 1H 2023 revenue and gross p
Slide 23: United States
United States Hotels reflect sustained strong performance, with student accommodation contributing stable income 21% of total assets, 20% of 1H 2023 gross profit: 3 hotels and 8 student accommodation under management contracts Management Contracts – Hotels Management Contracts – Student Accommodatio
Slide 24: Vietnam
Vietnam Steady recovery as demand progressively returns 3% of total assets, 6% of 1H 2023 gross profit: 5 SRs under management contracts • 1H 2023 revenue and gross profit increased 54% • Demand for short stays from international and 47% y-o-y respectively, mainly due to the corporate and leisure tr
Slide 25: Portfolio Updates
Portfolio Updates Paloma Raleigh (formerly known as Latitude on Hillsborough)
Slide 26: CapitaLand Ascott Trust's Positioning
CapitaLand Ascott Trust’s Positioning Committed to delivering sustainable returns to Stapled Securityholders Geographical Allocation Target Asset Allocation Predominantly in Asia Pacific Stable Income 25-30% in longer-stay Base from Global in accommodation Remainder in Europe/USA Longer-stay Presenc
Slide 27: Investment & Portfolio Reconstitution Strategy
Investment & Portfolio Reconstitution Strategy With its healthy financial position, CLAS has the flexibility to reconstitute and enhance its portfolio to drive sustainable returns Opportunistic Investing in Development divestments to quality hospitality projects unlock value and longer-stay and asse
Slide 28: Divesting Mature Properties in France
Divesting 4 Mature Properties in France In line with ongoing portfolio reconstitution efforts; potential to recycle proceeds into higher-yielding investments • Entered into conditional sale and purchase agreements to divest 4 properties in regional France for EUR 44.4 mil (S$63.4 mil1) to an unrelat
Slide 29: Asset Enhancement Initiatives for FY 2023
Asset Enhancement Initiatives for FY 2023 Uplifting the value and profitability of CLAS’ properties Riverside Hotel Citadines Holborn-Covent Citadines Citadines Les Halles Paris La Clef Tour Eiffel Paris Robertson Quay Garden London Kurfürstendamm Berlin • Mar 2023 to 1Q 2024 • 3Q 2023 to 1Q 2024 •
Slide 30: Rejuvenating the Portfolio with New Developments
Rejuvenating the Portfolio with New Developments New product offerings to cater to the new normal Student accommodation development in Redevelopment of Somerset Liang Court Singapore South Carolina, USA – Standard at Columbia Artist’s impression Site progress • 678-bed freehold student accommodation
Slide 31: Capital & Risk Management
Capital & Risk Management Somerset Millennium Makati
Slide 32: Capital Management
Capital Management Strong financial capacity and healthy liquidity position Strong capital Robust financing Fortifying liquidity management flexibility reserves S$1.151 38.6% c.S$1.11 bil NAV per Stapled Security Gearing Total available funds (c. S$1.8 bil debt Interest cover headroom2) 4.3X 3 = 53%
Slide 33: Capital Management
Capital Management Well-staggered debt maturity profile and diversified funding sources Key Highlights 69% : 31% c.80% 3.6 years Bank loans : Medium Term Notes Total debt on fixed rates Weighted average debt to maturity • Effective borrowing cost stable quarter-on-quarter; increase in revenue was mo
Slide 34: Managing Macroeconomic and Operational Challenges
Managing Macroeconomic and Operational Challenges Impact from headwinds cushioned by mitigation strategies • CLAS has built a strong • CLAS has a high proportion • CLAS has a geographically • Electricity costs have • CLAS’ predominantly long- stable income base and of debt effectively on fixed diver
Slide 35: Looking Ahead
Looking Ahead La Clef Tour Eiffel Paris
Slide 36: Poised for Continued Growth
Poised for Continued Growth Notwithstanding macroeconomic uncertainties, the demand for accommodation remains robust Increase in flight capacities to Exercising prudence, Outlook positive in CLAS’ markets provide tailwind for further growth delivering sustainable returns • International flight capac
Slide 37: Thank You
Thank You Citadines Connect Sydney Airport
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