CapitaLand Ascott Trust · SGX:HMN
CapitaLand Ascott Trust — Ascott Residence Trust — Shareholder Meeting (September 2022)
28 slides from CapitaLand Ascott Trust's shareholder meeting presentation, Sep 9, 2022
Slide 1: Proposed acquisition of 9 properties in France, Japan, Vietnam, US and Australia
Ascott Residence Trust Extraordinary General Meeting: Proposed acquisition of 9 properties in France, Japan, Vietnam, US and Australia 9 September 2022 La Clef Tour Eiffel
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 Overview of the Transaction 02 Acquisition Portfolio 03 Rationale 04 Conclusion 05 Stapled Securityholders’ Approval Required La Clef Tour Eiffel La Clef Tour Eiffel
Slide 4: Overview of the Transaction
Overview of the Transaction Somerset Central TD Hai Phong City
Slide 5: Proposed Acquisition of S$318.3 mil in Assets to Strengthen ART's Presence in Key Markets
Proposed Acquisition of S$318.3 mil in Assets to Strengthen 1 ART’s Presence in Key Markets (the “Acquisitions”) Accretive acquisition of 9 properties in France, Japan, Vietnam, US and Australia from Sponsor, enhancing ART’s income resilience and consolidating its position as APAC’s largest hospital
Slide 6: Predominantly Stable Income Properties in Developed Markets
Predominantly Stable Income Properties in Developed Markets Master leases and longer-stay properties make up 92% of the portfolio’s income contribution % of No. of Lodging Contract Acquisition 7% Property Location units type type Portfolio Vietnam 8% Asset Value Australia Paris, Serviced La Clef Tou
Slide 7: Enhancing Yield and Returns
Enhancing Yield and Returns EBITDA yield of acquisition properties within the range of ART’s existing properties Estimated Property EBITDA yield1 Purchase consideration Appraised Value total capitalised costs2 €49.4 mil €104.3 mil €103.7 mil La Clef Tour Eiffel 3.7% (c.S$71.7 mil) (c.S$151.3 mil) (c
Slide 8: Method of Financing
Method of Financing Acquisitions to be funded by debt and/or proceeds from private placement (S$’mil) Proposed method of financing: Development costs Debt and/or proceeds from a private placement 2 and interest costs to 263.5 be incurred for the 263.5 Funding for France • c.54.0% of the total acquis
Slide 9: Acquisition Portfolio
Acquisition Portfolio La Clef Tour Eiffel
Slide 10: La Clef Tour Eiffel
La Clef Tour Eiffel Luxury serviced residence in the heart of Paris on a fixed-rent master lease Location Paris, France Facilities Restaurant, gym Lodging Type Serviced residence Contract Fixed rent master lease with lease Units 112 Type cap and annual indexation Located in the heart of Paris, one o
Slide 11: 5 Rental Housing Properties in Japan
5 Rental Housing Properties in Japan Expanding footprint in the resilient rental housing asset class for stable income Walking distance to Osaka, Nagoya, Hyogo, Kyoto prime office and retail belt, Kyoto Location – Japan Shijo Karasuma, and 1 property a 10-minute drive to House Saison Shijo-dori Lodg
Slide 12: Somerset Central TD Hai Phong City
Somerset Central TD Hai Phong City Serviced residence well-positioned to capture corporate and long-stay demand in the growth market of Hai Phong, Vietnam Location Hai Phong, Vietnam Restaurant, gym, resident's Facilities lounge, swimming pool Lodging Type Serviced residence Contract Management cont
Slide 13: Standard at Columbia
Standard at Columbia Acquiring an additional stake in the brand new, prime, pedestrian student accommodation development at an attractive price Location South Carolina, US Fitness centre, study lounges, a coffee bar, and jumbotron television Facilities on an elevated amenity deck with Student Lodgin
Slide 14: Quest Cannon Hill
Quest Cannon Hill Serviced residence on master lease, recovery supported by strong domestic demand Location Brisbane, Australia Meeting room, gymnasium, pool, and Facilities barbecue area Lodging Type Serviced residence Contract Master lease with rent increases and Units 100 Type rent reviews Situat
Slide 15: Rationale
Rationale Quest Cannon Hill
Slide 16: Rationale
Rationale 1 Enhance DPS to Stapled Securityholders 2 Consolidate ART’s position as the largest hospitality trust in Asia Pacific 3 Increase income resilience with higher proportion of stable income 4 Increase investment in the attractive longer-stay asset class 5 Well-located, quality serviced resid
Slide 17: Enhance DPS to Stapled Securityholders
1 Enhance DPS to Stapled Securityholders On a FY2021 pro forma basis, DPS accretion is expected to be 3.0% Distribution per Stapled Security (DPS) (Singapore cents) 4.45 • On a FY2021 pro forma basis, total distribution is expected to increase by S$9.2 mil following the Acquisitions Accretion: 3.0%
Slide 18: Consolidate ART's position as the largest hospitality trust in Asia Pacific
2 Consolidate ART’s position as the largest hospitality trust in Asia Pacific Growing AUM from S$7.7 bil as at 31 Dec 2021 to S$8.3 bil Total Assets (S$’bil) 8.3 • As at 31 December 2021, ART’s total assets was S$7.7 bil; +7.8% including the Acquisitions, ART’s total assets is expected to 8.1 increa
Slide 19: Increase income resilience with higher proportion of stable income
3 Increase income resilience with higher proportion of stable income Post-Acquisitions, the proportion of ART’s stable income will increase to 71%1 La Clef Tour Eiffel Increase in stable income2 contribution (gross profit) 1 Master leases • Fixed rent master lease with lease cap and annual indexatio
Slide 20: Increase investment in the attractive longer-stay asset class
4 Increase investment in the attractive longer-stay asset class Post-Acquisitions, longer-stay properties are expected to comprise 19% of ART’s portfolio value Increase in longer-stay asset allocation (portfolio value) ART targets 25% – 30% of its asset allocation in longer-stay properties Longer-st
Slide 21: Well-located, quality serviced residences positioned to benefit from travel recovery
5 Well-located, quality serviced residences positioned to benefit from the recovery in travel demand Quality properties located in key gateway cities and growth markets La Clef Tour Eiffel Quest Cannon Hill Somerset Central TD Hai Phong City • Occupancy of about 80.0% in July 2022, which • Occupancy
Slide 22: Opportunity to acquire green, sustainably managed properties
6 Opportunity to acquire green, sustainably managed properties Post-Acquisitions, ART’s proportion of green certified properties is expected to rise to 38% La Clef Tour Eiffel Somerset Central TD Hai Phong City Quest Cannon Hill • La Clef Tour Eiffel, Somerset Central TD Hai Phong and Quest Cannon H
Slide 23: Conclusion
Conclusion Somerset Central TD Hai Phong City
Slide 24: Key Takeaways
Key Takeaways Expanding presence in ART’s key markets, marrying stability and growth Growing total assets Pre-Acquisitions Post-Acquisitions 3.0% from S$7.7 bil as at 31 Dec 2021 to (as at 31 Mar 2022) DPS accretion based on placement price of S$1.12 S$8.3 bil 1 95 1071 properties properties Rationa
Slide 25: Stapled Securityholders' Approval Required
Stapled Securityholders’ Approval Required Standard at Columbia (Artist’s Impression)
Slide 26: Stapled Securityholders' Approval
Stapled Securityholders’ Approval Ordinary Resolution The Proposed Acquisition of Interests in Serviced Residence Properties in France, Vietnam and Australia, Rental Housing Properties in Japan and a Student Accommodation Property in South Carolina, US at an Aggregate Purchase Consideration of S$215
Slide 27: Opinion of Independent Financial Adviser and Independent Directors' Recommendations
Opinion of Independent Financial Adviser and Independent Directors’ Recommendations Opinion of the Independent Financial Adviser – Deloitte & Touche Corporate Finance Pte Ltd • The IPT Transactions are on normal commercial terms and are not prejudicial to the interests of ART and its minority Staple
Slide 28: Thank You
RESIDENCE TRUST La Clef Tour Eiffel
Ascott Residence Trust — Shareholder Meeting (September 2022) on 6ix