CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — Q3 2020 Earnings Presentation
51 slides from CDL Hospitality Trusts's earnings presentation, Oct 30, 2020
Slide 1: 3Q 2020 Operational Update Presentation
3Q 2020 Operational Update Presentation 30 October 2020
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
Slide 3: About CDL Hospitality Trusts
About CDL Hospitality Trusts CDL Hospitality Trusts (“CDLHT”) is one of Asia’s leading hospitality trusts with assets under management of about S$3.1 billion as at 30 September 2020. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”), a real estate investment
Slide 4: References Used in this Presentation
References Used in this Presentation 1Q, 2Q, 3Q, 4Q refers to the period 1 January to 31 March, 1 April to 30 June, 1 July to 30 September and 1 October to 31 December respectively 1H and 2H refers to the period 1 January to 30 June and 1 July to 31 December respectively ARR refers to average room r
Slide 5: Table of Contents
Table of Contents Key Highlights 6 Healthy Financial Position 13 Singapore Market 17 Overseas Markets 20 Asset Enhancement Plans 27 Annexe 29 − Background and Structure of CDL Hospitality Trusts 29 − Location of CDL Hospitality Trusts Properties 44 5
Slide 6: Key Highlights
CDL HOSPITALITY TRUSTS Key Highlights
Slide 7: Results Highlights
Results Highlights Net Property Income (YoY) Performance Adversely Affected from Onset of COVID-19 Pandemic S$ million S$ million 40.0 35.7 120.0 103.2 -57.4% 100.0 -56.5% 30.0 80.0 20.0 15.2 60.0 44.9 40.0 10.0 20.0 - - 3Q 2019 3Q 2020 YTD Sep 2019 YTD Sep 2020 Unprecedented downturn in global to
Slide 8: Results Highlights (Con't)
Results Highlights (Con’t) Net Property Income (QoQ) Reopening of Closed Hotels and Gradual Easing of Travel Restrictions in 3Q 2020 S$ million 25.0 19.6 20.0 -48.0% 49.4% 15.2 15.0 10.2 10.0 5.0 - 1Q 2020 2Q 2020 3Q 2020 UK and Italy hotels reopened during 3Q 2020 Continued demand for isolation
Slide 9: YoY RevPAR by Geography (Local Currency)
YoY RevPAR by Geography (Local Currency) RevPAR (1) 3Q’20 3Q’19 YoY Change YTD Sep’20 YTD Sep’19 YoY Change Singapore (S$) 5 SG Hotels (2) 64 165 -60.9% 71 152 -53.0% 6 SG Hotels (including 75 180 -58.2% 75 158 -52.4% W Hotel) (3) New Zealand (NZ$) 151 150 0.4% 133 172 -22.7% Japan (¥) 1,806 7,143 -
Slide 10: QoQ RevPAR by Geography (Local Currency)
QoQ RevPAR by Geography (Local Currency) Singapore (S$) (1) New Zealand (NZ$) 100 Alternative sources of 91 200 176 business for 5 SG Hotels 90 151 and addition of W Hotel 150 80 75 (2) 100 73 70 Selected for government’s 59 60 50 managed isolation business 64 towards end of 2Q 2020 50 0 1Q 2020 2Q
Slide 11: QoQ RevPAR by Geography (Local Currency)
QoQ RevPAR by Geography (Local Currency) United Kingdom (£) Germany (€) 100 UK Hotels reopened 80 77 61 Ease of travel in Jul and Aug 2020 80 restrictions in EU 60 54 from Jun 2020 60 40 25 40 20 20 9 - 0 0 1Q 2020 2Q 2020 3Q 2020 1Q 2020 2Q 2020 3Q 2020 Italy (€) 80 68 60 Italy Hotel reopened 40 in
Slide 12: NPI Performance by Geography
NPI Performance by Geography 3Q’20 3Q’19 Change YoY YTD Sep’20 YTD Sep’19 Change YoY S$ ’000 S$ ’000 S$ ’000 Change S$ ’000 S$ ’000 S$ ’000 Change Singapore 9,468 23,371 -13,903 -59.5% 30,052 63,314 -33,262 -52.5% New Zealand 5,359 3,144 2,215 70.5% 10,919 11,621 -702 -6.0% Australia 2,346 2,266 80
Slide 13: Healthy Financial Position
Healthy Financial Position 13
Slide 14: Healthy Financial Metrics
Healthy Financial Metrics Healthy balance sheet with low gearing of 36.7% and ample debt headroom Strong liquidity position through proactive management of cash reserves and credit facilities Sound financial metrics allow CDLHT to weather impact of pandemic Key Financial Indicators As at 30 Se
Slide 15: Debt Profile
Debt Profile Successfully refinanced JPY6.4B (S$83.0M) 5-year borrowings in Sep 2020 Net cash inflow of S$61.4M from divestment of Novotel Brisbane, expected to complete on 30 Oct 2020 Further strengthens CDLHT’s balance sheet and enhance its financial flexibility No material concerns over a
Slide 16: Debt Profile as at 30 Sep 2020
Debt Profile as at 30 Sep 2020 Debt Currency Profile (1)(2) Interest Rate Profile (1)(2) JPY Fixed Rate Floating Rate 7.4% Borrowings Borrowings USD 12.0% SGD 42.0% 58.0% USD 66.9% 33.1% SGD 40.5% GBP 44.6% 55.4% GBP 19.1% JPY 100.0% - EUR (3) 98.0% 2.0% Blended Total 61.5% 38.5% EUR (3) 21.0% (1) B
Slide 17: Singapore Market
CDL HOSPITALITY TRUSTS Singapore Market 17
Slide 18: CDLHT Singapore Properties Performance
CDLHT Singapore Properties Performance QoQ YoY YTD YTD YoY 3Q’20 2Q’20 3Q’19 Change Change Sep’20 Sep’19 Change 5 SG Hotels (Excludes W Hotel and NCQ) Occupancy (1)(2) 92.4% 84.6% 7.8pp 90.8% 1.6pp 77.2% 86.9% -9.7pp ARR (S$) (2) 70 70 0% 181 -61.5% 92 175 -47.1% RevPAR (S$) (1)(2) 64 59 9.3% 165 -6
Slide 19: Plans to Support Singapore's Tourism Industry
Plans to Support Singapore’s Tourism Industry Recovery Bilateral (for essential & business purposes, e.g. China, Malaysia, Indonesia Resuming & Japan) and unilateral (e.g. NZ and Australia) travel arrangements in place International for 10 countries currently (Germany to be added soon) Travel Tr
Slide 20: Overseas Markets
CDL HOSPITALITY TRUSTS Overseas Markets 20
Slide 21: CDLHT New Zealand Hotel Performance
CDLHT New Zealand Hotel Performance New Zealand QoQ YoY YTD YTD YoY 3Q’20 2Q’20 3Q’19 Hotel Change Change Sep’20 Sep’19 Change RevPAR (NZ$) 151 73 107.3% 150 0.4% 133 172 -22.7% NPI (S$ ’000) 5,359 4,242 26.3% 3,144 70.5% 10,919 11,621 -6.0% Grand Millennium Auckland selected for government’s mana
Slide 22: CDLHT Australia Hotels Performance
CDLHT Australia Hotels Performance Australia 3Q’20 3Q’19 YoY Change YTD Sep’20 YTD Sep’19 YoY Change Hotels NPI (S$ ’000) 2,346 2,266 3.5% 6,779 6,890 -1.6% Essentially fixed rent structure insulates CDLHT from the adverse trading conditions Contribution for 3Q 2020 higher due to a stronger AUD
Slide 23: CDLHT Maldives Resorts Performance
CDLHT Maldives Resorts Performance Maldives Resorts 3Q’20 3Q’19 YoY Change YTD Sep’20 YTD Sep’19 YoY Change RevPAR (US$) (1) 4 80 -95.0% 64 153 -58.1% NPI (S$ ’000) -1,789 -694 N.M -3,152 -1,035 N.M Borders reopened in mid-Jul with some international airlines resuming operations Tourism arrivals
Slide 24: CDLHT Japan Hotels Performance
CDLHT Japan Hotels Performance QoQ YoY YTD YTD YoY Japan Hotels 3Q’20 2Q’20 3Q’19 Change Change Sep’20 Sep’19 Change RevPAR (¥) 1,806 1,798 0.4% 7,143 -74.7% 2,952 7,837 -62.3% NPI (S$ ’000) -63 -144 N.M 707 N.M 251 2,723 -90.8% Performance in 3Q 2020 affected as: Limited international visitor a
Slide 25: CDLHT UK Hotels Performance
CDLHT UK Hotels Performance QoQ YoY YTD YTD YoY UK Hotels 3Q’20 2Q’20 3Q’19 Change Change Sep’20 Sep’19 Change RevPAR (£) 54 - N.M 139 -61.0% 44 127 -65.5% NPI (S$ ’000) 105 -1,173 N.M 3,408 -96.9% -727 9,353 N.M Hilton Cambridge City Centre reopened on 1 Jul Occupancy ramped up quickly due to d
Slide 26: CDLHT Germany and Italy Hotels Performance
CDLHT Germany and Italy Hotels Performance QoQ YoY YTD YTD YoY Germany Hotel 3Q’20 2Q’20 3Q’19 Change Change Sep’20 Sep’19 Change RevPAR (€) 25 9 173.3% 117 -78.5% 32 110 -70.8% NPI (S$ ’000) -186 -634 N.M 2,579 N.M 983 8,001 -87.7% QoQ YoY YTD YTD YoY Italy Hotel 3Q’20 2Q’20 3Q’19 Change Change Sep
Slide 27: Asset Enhancement Plans
CDL HOSPITALITY TRUSTS Asset Enhancement Plans 27
Slide 28: Asset Enhancement Plans – Raffles Maldives Meradhoo
Asset Enhancement Plans – Raffles Maldives Meradhoo Construction of new Presidential Villa expected to complete by end-Nov 2020 New Presidential Villa (concept drawings – may be subject to changes) Enhance product offering in positioning for an eventual recovery 28
Slide 29: Background and Structure of CDL Hospitality Trusts
Background and Structure of CDL Hospitality Trusts 29
Slide 30: Background on CDLHT
Background on CDLHT Background Price Performance Announcement of W Singapore - Sentosa IPO on 19 July 2006 $2.00 Announcement of Cove Acquisition and Redevelopment of The Lowry Hotel Novotel Singapore Clarke Quay COVID-19 Listed on SGX Acquisition Pandemic Mainboard $1.80 Announcement of Spons
Slide 31: CDLHT Structure
CDLHT Structure Sponsor Investors ≈38.15% Holdings of Stapled Securities ≈61.85% as at 30 Sep 2020 as at 30 Sep 2020 H-REIT Distributions HBT Acts on behalf of DBS Trustee the holders of H- REIT Units Stapling Deed Management Management services M&C REIT services M&C Business Trust Management Limite
Slide 32: Blue Chip Sponsor and Parentage
Blue Chip Sponsor and Parentage Millennium & Copthorne Hotels Limited City Developments Limited Internationally recognised hospitality and real estate group which owns as well as operates, One of the largest property developers in manages or franchises a portfolio of over 130 Singapore with a ma
Slide 33: Management Strategy
Management Strategy Acquisition Growth Asset Management 1 Strategy 2 Strategy Pursue quality assets with growth potential Work closely with lessees and/or hotel managers to implement Adopt a medium to long term active revenue and cost perspective to ride through market management cycles Impl
Slide 34: CDLHT Asset Portfolio – Singapore
CDLHT Asset Portfolio – Singapore Grand Copthorne W Singapore – Claymore Singapore Properties Orchard Hotel Copthorne M Hotel Studio M Hotel King’s Hotel Sentosa Cove Connect Portfolio Waterfront Hotel Located on One of the largest Located in the Located within Luxury lifestyle Orchard Road, Stylish
Slide 35: CDLHT Asset Portfolio – Overseas
CDLHT Asset Portfolio – Overseas Mercure Perth Ibis Perth Grand Millennium Auckland Properties Oceania Portfolio (Australia) (Australia) (New Zealand) Situated in Perth’s CBD and within Located steps away from the New Zealand’s largest deluxe hotel Description walking distance to the Swan River, Mur
Slide 36: CDLHT Asset Portfolio – Overseas
CDLHT Asset Portfolio – Overseas Raffles Maldives Hotel MyStays Hotel MyStays Angsana Velavaru Properties Meradhoo Maldives Portfolio Asakusabashi Kamata Japan Portfolio (Maldives) (Maldives) (Tokyo, Japan) (Tokyo, Japan) Located in central Tokyo, Located near Keikyu- Upmarket resort All-suite luxur
Slide 37: CDLHT Asset Portfolio – Overseas
CDLHT Asset Portfolio – Overseas Hilton Cambridge The Lowry Pullman Hotel Hotel Cerretani United Kingdom Europe Properties City Centre Hotel Munich Firenze CDLHT Portfolio Portfolio Portfolio (United Kingdom) (United Kingdom) (Germany) (3) (Italy) (3) Iconic 5-star luxury Upper upscale hotel 4-star
Slide 38: Summary of Leases
Summary of Leases Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel: Rent: 20% of Hotel's revenue + 20% of Hotel’s gross operating profit, with an annual fixed rent floor of S$26.4 million Term of 20 years from Listing (19 July 2006) with 20-year option Claymore Co
Slide 39: Summary of Leases
Summary of Leases Grand Millennium Auckland: New Zealand Rent: Net operating profit of the hotel with an annual base rent of NZ$6.0 million Grand Millennium First 3-year term expired on 6 September 2019; lease provides for two 3-year renewal terms, subject to mutual agreement Auckland Lease re
Slide 40: Summary of Leases
Summary of Leases Angsana Velavaru: Maldives Rent: Hotel’s gross operating profit less lessee’s management fee Angsana Velavaru Tiered lessee’s management fee incentivises lessee to drive growth in gross operating profit Term of 10 years from 1 February 2013, expiring 31 January 2023 Germany P
Slide 41: Summary of Management Agreements
Summary of Management Agreements W Singapore - Sentosa Cove: HBT’s subsidiary is the lessee for the hotel's operations Singapore Operated by Luxury Hotels International of Hong Kong Limited, an indirect wholly-owned subsidiary of Marriott W Singapore - International, Inc. Term of ~20.3 years f
Slide 42: Summary of Management Agreement
Summary of Management Agreement Hotel MyStays Asakusabashi and Hotel MyStays Kamata: HBT’s subsidiary is the lessee for the hotels’ operations Japan Portfolio MyStays Hotel Management Co., Ltd. is the hotel manager, appointed by HBT The hotel management agreements renew on a 3-year auto-renewa
Slide 43: Summary of Management Agreement
Summary of Management Agreement Hilton Cambridge City Centre: United Kingdom HBT is the asset owner and currently responsible for the hotel’s operations Hilton Cambridge Hilton UK Manage Limited (an affiliate of Hilton Worldwide Inc.) is the hotel manager, appointed by HBT Term of 12.25 years
Slide 44: Location of CDL Hospitality Trusts Properties
Location of CDL Hospitality Trusts Properties 44
Slide 45: Hotels in Strategic Locations
Hotels in Strategic Locations Singapore Hotels New Zealand Hotel Orchard Hotel & H Claymore Connect Grand Millennium Auckland Grand Studio M Hotel Copthorne Waterfront Hotel H H SINGAPORE RIVER Copthorne H King’s Hotel MARINA BAY SANDS CENTRAL H BUSINESS M Hotel DISTRICT H SENTOSA ISLAND H W Singapo
Slide 46: Hotels in Strategic Locations
Hotels in Strategic Locations Australia Hotels Mercure Ibis Perth Perth Perth CBD H H CBD AREA 46
Slide 47: Hotels in Strategic Locations
Hotels in Strategic Locations Japan Hotels Hotel MyStays Hotel MyStays Asakusabashi Kamata Asakusabashi Kamata H H 47
Slide 48: Hotels in Strategic Locations
Hotels in Strategic Locations United Kingdom Hotels Cambridge Manchester H Hilton Cambridge City Centre The Lowry Hotel 48
Slide 49: Hotels in Strategic Locations
Hotels in Strategic Locations Germany Hotel Italy Hotel Munich Florence H H Pullman Hotel Munich Hotel Cerretani Firenze - MGallery 49
Slide 50: Resorts in Premium Destination
Resorts in Premium Destination Angsana Velavaru Malé Atoll 40 min seaplane flight 55 min domestic flight + 15 min R speedboat ride Raffles Maldives Meradhoo South Nilandhe Atoll R Gan International Airport 50
Slide 51: Thank You
CDL HOSPITALITY TRUSTS THANK YOU 51
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