Capitaland Ascott Trust · SGX:HMN
Capitaland Ascott Trust — Ascott Residence Trust — Non-Deal Roadshow (December 2010)
66 slides from Capitaland Ascott Trust's roadshow presentation, December 2010
Slide 1: Ascott Residence Trust Non-deal Roadshow US
Ascott Residence Trust Presentation for Non-deal Roadshow to be held in the US 8 to 14 December 2010
Slide 2: Agenda
Agenda • Introduction • Completed acquisition of 28 Asia and Europe properties and divestment of Ascott Beijing and Country Woods – Portfolio Information – Financial Highlights • Summary & Conclusion • Appendices 2
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 the Manager of Ascott Reit (the “Manager”) or any of its affiliates. An in
Slide 4: Ascott Reit – Balanced and Diversified Portfolio
Ascott Reit – Balanced and Diversified Portfolio United Kingdom (4) Belgium (2) France (17) Germany (2) Spain (1) Japan (20) China (3) Vietnam (5) Philippines (3) Singapore (3) Indonesia (2) Australia (2) S$2.83 billion1 portfolio value 6,432 apartment units in 64 properties 23 cities in 12 countrie
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 seasonal
Slide 6: Completed acquisition of 28 Asia and Europe properties and divestment
Completed acquisition of 28 Asia and Europe properties and divestment of Ascott Beijing and Country Woods 6
Slide 7: Asia Acquisitions and Divestments
Asia Acquisitions and Divestments Acquisition of 2 Asia Properties SINGAPORE Asia Acquisitions Citadines Mount Sophia Singapore n Citadines Mount Sophia Singapore Japan n Somerset Hoa Binh Hanoi 20 properties China Vietnam 3 properties(1) 4 + 1 properties Philippines Divestments VIETNAM 3 properties
Slide 8: Europe Acquisitions
Europe Acquisitions Acquisition of 26 properties in Europe Europe Acquisitions UNITED KINGDOM BELGIUM n 4 London properties Citadines Citadines Prestige Citadines Citadines Prestige Citadines Citadines Barbican South Kensington Trafalgar Square Holborn-Covent Sainte-Catherine Toison d’Or n 10 Paris
Slide 9: Singapore Acquisition
Singapore Acquisition Citadines Mount Sophia Singapore is part of Wilkie Edge, an integrated lifestyle development. It is near Orchard Road and in the heart of Singapore’s arts, culture, learning and entertainment hub ü Singapore serviced residences enjoying healthy occupancies with rental rates tre
Slide 10: UK Acquisitions
UK Acquisitions The UK properties are all located close to London’s business district or popular tourist districts such as Mid- town, Trafalgar Square and South Kensington SR Management Agreements with minimum net operating profit guarantee per annum and remaining terms of 5 to 10 years Citadines So
Slide 11: France Acquisitions
France Acquisitions Of the 17 France properties, 10 are in Paris and the remaining 7 are in some of France’s largest cities such as Marseille and Lyon. The Paris properties are all located in prime areas of the city near famous landmarks such as the Louvre, Eiffel Tower, Notre Dame and the Seine Riv
Slide 12: Acquisition Properties: Valuation per Apartment Unit
Acquisition Properties: Valuation per Apartment Unit Valuation per Apartment Unit(1) Average Appraised Locations Value per Apartment Unit London £326,000 Paris €238,000 Outside Paris €82,000 Germany, €129,000 Belgium & Spain Singapore S$695,000 Vietnam US$193,000 Source: Savills UK and HVS (Appendix
Slide 13: Unlocking Value in Ascott Beijing
Unlocking Value in Ascott Beijing Key Benefits of Divestment Comparison of EBITDA yields(1) Divestment at FY2009 EBITDA yield of 5.7% 1 1.6% for Ascott Beijing, compared to FY2010 annualised EBITDA yield of 5.7% for the 28 acquired properties(1) 2 Gain of ~S$106.2 million and net proceeds of S$168.7
Slide 14: Unlocking Value in Ascott Beijing (cont’d)
Unlocking Value in Ascott Beijing (cont’d) n The Manager had previously engaged a real estate agent to manage a tender bid process. - Several offers were received from unrelated third parties. n The Manager considered the terms and conditions proposed by the various third-party bidders but negotiati
Slide 15: Unlocking Value in Country Woods
Unlocking Value in Country Woods n Divestment of Country Woods Jakarta is in line with Ascott Reit’s strategy to unlock the underlying value of a property that has reached a stage that offers limited growth and re-deploy proceeds to maximise the yield of the portfolio. n Country Woods would require
Slide 16: Portfolio Information
Portfolio Information* *The information contained in this section does not take into account the impact of the divestment of Country Woods Jakarta as it is not significant 16
Slide 17: Balanced and Diversified Portfolio
Balanced and Diversified Portfolio Geographical division of Ascott REIT’s share of asset values as at 31 December 2009 Pre-Acquisition Portfolio Pro Forma Enlarged Portfolio Germany Spain Australia 3% 2% Indonesia 3% Belgium Singapore 5% 2% 19% Philippines Singapore 9% UK 27% 16% Pan Asia 55% Pan As
Slide 18: Balanced and Diversified Portfolio (cont’d)
Balanced and Diversified Portfolio (cont’d) Geographical division of Ascott REIT’s share of Gross Profit as at 31 December 2009 Pre-Acquisition Portfolio Pro Forma Enlarged Portfolio Australia Germany 1% Spain Indonesia 2% 2% Singapore Singapore Belgium 11% 9% 2% 18% China UK 15% 6% Philippines 16%
Slide 19: Apartment Rental Income by Length of Stay
Apartment Rental Income by Length of Stay Apartment Rental Income by length of stay for pre-acquisition and pro forma enlarged Ascott Reit for the year ended 31 December 2009 Pre-Acquisition Portfolio Pro Forma Enlarged Portfolio 12% 30% 25% 38% 19% 13% 19% 13% 8% 23% Apartment Rental Income by leng
Slide 20: Financial Highlights
Financial Highlights* *The information contained in this section does not take into account the impact of the divestment of Country Woods Jakarta as it is not significant 20
Slide 21: Financial Highlights – Enlarged Portfolio
Financial Highlights – Enlarged Portfolio Forecast Projection Period 20101 Year 20111 (1 Oct 2010 to (1 Jan 2011 to 31 Dec 2010) 31 Dec 2011) Revenue (S$m) 68.8 289.1 Gross Profit (S$m) 36.3 153.0 Unitholders’ Distribution (S$m) 20.6 87.5 Distribution Per Unit2 (S cents) 1.84 7.74 Notes: (1) As disc
Slide 22: REVPAU Forecast and Projection
REVPAU Forecast and Projection S$ 250 +9.9% +9.4% 210 +3.8% 200 191 -2.6% 174 166 160 159 +19.0% 156 157 152 148 150 +19.2% 118 121 119 109 111 100 100 93 78 71 73 50 0 Singapore Singapore Australia Australia China China Indonesia Indonesia2 Japan Japan3 Philippines Vietnam Philippines 4 Vietnam Uni
Slide 23: Master Lease and Guaranteed Income
Master Lease and Guaranteed Income Proportion of EBITDA from master leases and guaranteed income SR Management Agreements increases from 3.9% to 47.2%(1) 19 of the 28 acquired properties are subject to Pro Forma Enlarged Master Lease Pre-Acquisition Portfolio arrangements Portfolio(2) n Fixed rental
Slide 24: Foreign Exchange Management
Foreign Exchange Management • Cashflows – Manage volatility of foreign currency cash flow from overseas assets • Revenue and operating expenses are mainly in respective local currency • Vietnam – Majority of revenue* and operating expenses are in local currency • Indonesia - Majority of revenue in U
Slide 25: Gross Profit by Currency of Enlarged Portfolio
Gross Profit by Currency of Enlarged Portfolio Annualised Gross Profit based on the Forecast Period 2010 Total SGD equivalent: S$145.1 million Gross Profit Share of Gross Currency (S$ m) Profit Euro 43.4 29.9% USD 31.4 21.7% SGD 21.3 14.6% GBP 16.9 11.7% PHP 12.5 8.6% JPY 10.8 7.4% RMB 7.0 4.9% AUD
Slide 26: Conclusion
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Slide 27: Transformation of Ascott Reit
Transformation of Ascott Reit Ascott REIT - more than tripling of asset size since listing (S$ million) þ Yield accretive acquisitions almost doubles asset size, increases market capitalisation and free float þ Divestments 2,830.0 unlock value of assets at an optimal stage, releasing capital for rei
Slide 28: Summary
Summary Exposure to n Demand for serviced residences underpinned by FDI inflows and GDP growth Serviced Residence asset n Operated under established international brands: Ascott, Citadines and class Somerset Balanced n Significant presence in the Pan Asia region (55%) and added diversification to ex
Slide 29: Appendices
Appendices Ø 3Q 2010 Results Highlights Ø Ascott Reit Portfolio Ø Brand Introduction 29
Slide 30: Appendix: 3Q 2010 Results Highlights
Appendix: 3Q 2010 Results Highlights 30
Slide 31: 3Q 2010 Performance
3Q 2010 Performance 3Q 2010 3Q 2009 Change Notes Revenue (S$m) 46.5 44.4 +5% 1 Gross Profit (S$m) 21.1 22.0 - 4% 2 Revenue Per Available Unit 130 122 +7% - (S$/day) – serviced residences Notes: 1. Revenue for 3Q 2009 included S$0.4 million of business interruption (“BI”) claim for the loss of revenu
Slide 32: 3Q 2010 Performance
3Q 2010 Performance 3Q 2010 3Q 2009 Change Notes Unitholders’ Distribution (S$m) 12.0 11.8 +1% - Distribution Per Unit (S cents) 1.85 1.92 -4% - Distribution Per Unit (S cents) (Excluding private placement units 1.93 1.92 +1% 1 issued on 22 September 2010) Notes: 1. On 22 September 2010, 419,660,000
Slide 33: Advanced Distribution Details
Advanced Distribution Details Advanced Distribution 1 July 2010 to 21 September 2010 Period Advanced 1.74 cents Distribution Rate per unit Book Closure Date 21 September 2010 Advanced Distribution 19 November 2010 Payment Date 33
Slide 34: Portfolio Performance
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Slide 35: Australia
Australia +15% Somerset Somerset St George’s Gordon Heights 153 Terrace Perth Melbourne 133 S$m 3 +11% 1.8 2.0 2 +25% 1 0.5 0.4 0 Revenue Gross Profit RevPAU1 3Q 2009 3Q 2010 S$ Improved performance mainly due to higher demand for serviced residences from the mining industry 1 RevPAU for 3Q 2009 has
Slide 36: China
China Ascott Somerset Somerset Somerset Revenue in 3Q 2010 Beijing Xu Hui Grand Olympic included reversal of Shanghai Fortune Tower prior years’ accrued Garden Property revenue Reversal of over Property Tianjin +2% provision of Beijing S$m -1% centralised costs in 3Q 2009 122 125 10 9.0 8.9 9.1 -28%
Slide 37: Indonesia
Indonesia Ascott Somerset Country Jakarta Grand Citra Woods S$m Revenue for 3Q 2009 includes BI claim Jakarta Jakarta 10.0 One-time charge for prior years’ property +9% tax was recognised in 3Q 2010 5.2 5.2 70 76 5.0 4.8 -26% 1.9 1.4 1.5 1.7 0.0 Revenue Gross Profit RevPAU1 3Q 2009 3Q 2010 Excluding
Slide 38: Japan
Japan -10% Somerset Azabu Somerset 18 rental housing 165 -7% East Tokyo Roppongi properties in 148 S$m Tokyo Tokyo 5 4.6 4.3 -18% 4 3 2.8 2.3 2.3 2.1 2 1 1.0 0.8 0 Revenue1 Gross Profit 1 RevPAU2 3Q 2009 3Q 2010 Serviced residence contribution S$ Lower performance for both the serviced residences an
Slide 39: Philippines
Philippines Ascott Makati Somerset Somerset +4% Millennium Salcedo S$m +4% Makati Property 132 137 10 Makati 7.0 7.3 +3% 5 2.9 3.0 0 Revenue Gross Profit RevPAU1 3Q 2009 3Q 2010 S$ Improved performance due to increased business from oil and telecommunication industries 1 RevPAU for 3Q 2009 has been
Slide 40: Singapore
Singapore +37% 243 Somerset Somerset Liang Grand Cairnhill Court Property +31% Singapore Singapore 177 S$m 10 9.3 7.1 +35% 5.0 5 3.7 0 Revenue Gross Profit RevPAU1 3Q 2009 3Q 2010 S$ Better performance due to the successful launch of Somerset Grand Cairnhill’s and Somerset Liang Court’s refurbished
Slide 41: Vietnam
Vietnam Somerset Somerset West Somerset Somerset Ho Grand Hanoi Lake Hanoi Chancellor Chi Minh -9% S$m Court Ho City Chi Minh 124 15 -2% City 113 9.7 9.5 10 -3% 6.0 5.8 5 0 Revenue Gross Profit RevPAU1 3Q 2009 3Q 2010 S$ Lower performance due to weaker USD and lower renewal rates contracted in 2009
Slide 42: Portfolio Information
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Slide 43: Length of Stay and Market Segment
Length of Stay and Market Segment Apartment Rental Income Apartment Rental Income By Length of Stay1 By Market Segment Family/ Leisure 6% < 1 month > 12 months 32% 34% Relocation 32% Business Trip 52% 6 to 12 months Project 1 to 6 months 15% 19% 10% Average length of stay is 6.5 months2 1 For YTD 30
Slide 44: Diverse Tenant Mix
Diverse Tenant Mix Apartment Rental Income Top 10 Corporate Clients by By Industry1 Apartment Rental Income for FY2009 % of Total Others Corporate Client Industry Apartment Healthcare 10% 3% Industrial Rental Income 19% Real estate/ Lodging 1 Embassy of an OECD country Govt and NGOs 4.6% 3% Financia
Slide 45: Geographical Diversification
Geographical Diversification Ascott Reit’s Share of Asset Values Ascott Reit’s Share of Gross Profit As at 30 September 2010 YTD 30 September 2010 China Singapore China S$9.5m S$12.5m Singapore 23% 17% 22% 28% Indonesia S$3.8m 7% Indonesia Japan 5% S$7.2m Philippines 13% Philippines 9% S$9.3m Austra
Slide 46: Capital & Risk Management
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Slide 47: Healthy Balance Sheet
Healthy Balance Sheet • Gearing of 32.2%1, well within the 60% gearing limit allowable under MAS property fund guidelines Ascott Reit Gearing Profile As at 30 September 2010 Debt S$652.0m (32.2%) Ascott Reit’s proportionate share of asset value Equity S$1,370.3m (67.8%) S$2,022.3m 1 Excluding the pr
Slide 48: Debt Profile
Debt Profile Maturity Profile Currency Profile As at 30 September 2010 As at 30 September 2010 2013 Japanese Yen S$158.4 m (24%) 20101 S$286.6m (44%) S$19.3m (3%) Singapore Dollar S$219.7 m (33%) RMB3 S$69.7m (11%) 2012 S$166.1m (26%) 20112 Australian Dollar S$308.2m (47%) S$4.2 m (1%) US Dollar S$7
Slide 49: Interest Rate Profile
Interest Rate Profile Interest Rate Profile As at 30 September 2010 Fixed *S$417.1m (64%) Floating S$234.9m (36%) Effective Borrowing Rate of 3.2% Interest Cover Ratio of 3.6x * S$233.9m is due for refinancing in 2011, in line with the maturity dates of the underlying loans 49
Slide 50: Foreign Exchange Profile
Foreign Exchange Profile Ascott Reit’s Share of Gross Profit Foreign Exchange Movements YTD 30 September 2010 China, Percentage of Foreign exchange Singapore, S$9.5m Ascott Reit’s rate movements S$12.5m Currency Share of Gross from Profit Dec’09 to Sep’10 Indonesia, YTD 30 Sep 2010 S$3.8m SGD 22 - U
Slide 51: Developments Subsequent to 3Q 2010
Developments Subsequent to 3Q 2010 51
Slide 52: Developments subsequent to 3Q 2010
Developments subsequent to 3Q 2010 On 1 October 2010, Ascott Reit completed the acquisition of 28 properties in Singapore, Vietnam and Europe from The Ascott Limited (Ascott) and the divestment of Ascott Beijing to Ascott. These transactions were first announced on 20 August 2010 together with a pro
Slide 53: Prospects
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Slide 54: Prospects
Prospects The two refurbished Singapore properties and the newly acquired Citadines Mount Sophia will benefit from the robust demand amidst the strong and growing Singapore economy and a vibrant hospitality market boosted by the opening of the two integrated resorts. With the addition of the Europe
Slide 55: Appendix: Ascott Reit Portfolio
Appendix: Ascott Reit Portfolio 55
Slide 56: 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
Slide 57: Ascott Reit Asia Portfolio
Ascott Reit Asia Portfolio 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 District Centr
Slide 58: Ascott Reit Asia Portfolio
Ascott Reit Asia Portfolio 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 Singapore’s main
Slide 59: 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
Slide 60: 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 •
Slide 61: 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
Slide 62: Appendix: Brand Introduction
Appendix: Brand Introduction 62
Slide 63: 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 63
Slide 64: 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
Slide 65: 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
Slide 66: Thank You
Thank You 66
Ascott Residence Trust — Non-Deal Roadshow (December 2010) on 6ix