Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Hospitality Trust — FY2021 Earnings Presentation
42 slides from Frasers Property's earnings presentation, Oct 29, 2021
Slide 1: Frasers Hospitality Trust Financial Results Presentation
Frasers Hospitality Trust Financial Results Presentation for second half and full year ended 30 September 2021 29 October 2021 InterContinental Singapore
Slide 2: Forward-looking statements disclaimer
Certain statements in this presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance
Slide 3: Frasers Hospitality Trust agenda
Frasers Hospitality Trust For the second half (2H FY2021) and full year (FY2021) ended 30 September 2021 ◆ Financial Review & Distribution ◆ Key Market Updates ◆ Portfolio Performance ◆ Portfolio Valuation ◆ Risk & Capital Management ◆ Market Outlook Fraser Suites Singapore 3
Slide 4: Financial Review & Distribution
Financial Review & Distribution Fraser Suites Queens Gate London
Slide 5: 2H FY2021 gross revenue improved 75.6% YoY
◆ In 2H FY2021, FHT’s GR improved 75.6% year-on-year (YoY) with gradual recovery from COVID-19 pandemic, while 2H FY2020 was at the peak of the pandemic. GR was lower in 2H FY2020 after rental adjustment1 and also due to lower revenue from Novotel Melbourne on Collins. ◆ FHT’s NPI had more than doub
Slide 6: FY2021 results summary
◆ As the impact of COVID-19 pandemic began in Feb 2020 and has not fully abated to date, the performance for FY2021 was affected for full 12 months (FY2020: 7 months). Improvement in 2H FY2021 performance helped mitigate the decline in GR and NPI. ◆ FY2021 DI was 29.7% lower YoY, as management fee e
Slide 7: Gross revenue and NPI by country
Germany Germany 4% 7% Malaysia Malaysia 7% 6% Japan Japan 8% 9% Australia GR 46% NPI Australia SGD 57.6 m 43% UK SGD 85.5 m UK 17% 13% Singapore Singapore 19% 21% 7
Slide 8: Distribution timetable
1 Apr 2021 to 30 Sep 2021 Distribution rate 0.8041 cents per stapled security Last day of trading on “cum” basis 5 Nov 2021 First day of trading on “ex” basis 8 Nov 2021 Record date 9 Nov 2021 Distribution payment date 29 Dec 2021 8
Slide 9: Key Market Updates
Key Market Updates Fraser Suites Edinburgh
Slide 10: International tourist arrivals and COVID-19 impact
% Change against 2019 international tourist arrivals 5% 2% International APAC Europe 2% Jan-20 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-21 Feb Mar Apr May Jun Jul-21 -3% -14% -58% -49% -61% -65% -69% -68% -76% -75% -65% -67% -84% -82% -84% -85% -88% -88% -87% -76% -77% -90% -77% -95% -79% -82
Slide 11: Vaccination rates and travel reopening
% of population fully vaccinated as at 30 Sep 2021 Singapore 76.8% • Singapore has launched Vaccinated Travel Lanes with several countries, including Germany and UK since 8 Sep 2021, after hitting its COVID-19 vaccination milestone • Sydney exited a 107-day lockdown on 11 Oct 2021. From 1 Nov 2021 o
Slide 12: Hospitality market performance by country FY2021
Hospitality market performance by country for FY2021 Heightened alert Lockdown period Singapore Market Performance Sydney Market (luxury & upscale) Performance Melbourne Market (upscale) Performance 160 100% 136 146 145 127 270 160 136 140 140 135 100% 140 118 122 123 120 122 90% 300 254 100% 131 13
Slide 13: Hospitality market performance: London, Kobe, Kuala Lumpur
Hospitality market performance by country for FY2021 Lockdown period / state of emergency / movement control orders Phased exit London Market Performance Kobe (upscale & upper mid) Kuala Lumpur (luxury and upper midscale) 14,000 Market Performance 100% Market Performance 160 139 100% 11,545 90% 500
Slide 14: Portfolio Performance
Portfolio Performance InterContinental Singapore
Slide 15: FHT portfolio performance by country FY2021
FHT’s portfolio performance by country for FY2021 Singapore Portfolio Performance Australia Portfolio Performance UK Portfolio Performance 67% 232 92% 91% 89% 92% 140 70% 250 209 217 213 209 100% 180 100% 112 111 206 199 203 154 151 105 108 115 90%160 138 138 90% 120 102 60% 73% 72% 73% 76% 81% 138
Slide 16: 2H FY2021 GOR and GOP by country
Gross Operating Revenue (GOR) Gross Operating Profit (GOP) Local Currency (m) YoY Change Local Currency (m) YoY Change Country 2H FY2021 2H FY2020 (%) 2H FY2021 2H FY2020 (%) Singapore 21.3 17.8 20.1 8.3 9.0 7.7 Australia 32.2 17.1 88.2 16.4 6.3 >100.0 UK 5.3 1.7 >100.01 2.0 (0.9) NM2 Japan 1,074.6
Slide 17: FY2021 GOR and GOP by country
Gross Operating Revenue (GOR) Gross Operating Profit (GOP) Local Currency (m) YoY Change Local Currency (m) YoY Change Country FY2021 FY2020 (%) FY2021 FY2020 (%) Singapore 42.5 54.5 22.1 15.5 21.9 29.4 Australia 59.2 77.8 23.9 30.1 32.0 6.2 UK 7.2 13.01 44.5 1.8 4.4 59.5 Japan 2,119.0 3,220.6 34.2
Slide 18: Singapore portfolio performance
InterContinental Singapore (ICSG) Fraser Suites Singapore (FSSG) > Singapore portfolio’s revenue per available room (RevPAR): 16.8% YoY higher in 2H FY2021. RevPAR for FY2020 had benefitted from ICSG’s deal to be a Stay-Home facility from Mar-Sep 2020. ICSG has re-secured the Stay-Home Notice bu
Slide 19: Australia portfolio performance
Novotel Melbourne on Collins (NMOC) Novotel Sydney Darling Square (NSDS) Sofitel Sydney Wentworth (SSW) Fraser Suites Sydney (FSS) > Australia portfolio’s RevPAR in 2H FY2021 was 90.5% higher YoY, driven by improving portfolio occupancy and average daily rate (ADR). The improvement was mainl
Slide 20: UK portfolio performance
ibis Styles London Gloucester Road (ISLG) Park International London (PIL) Fraser Place Canary Wharf (FPCW) Fraser Suites Edinburgh (FSE) Fraser Suites Glasgow (FSG) Fraser Suites Queens Gate (FSQG) > UK has lifted most of its COVID-19 pandemic restrictions from 19 Jul 2021. Despite the l
Slide 21: ANA Crowne Plaza Kobe performance
ANA Crowne Plaza Kobe (CPK) > CPK’s RevPAR: 41.1% YoY increase in 2H FY2021 as its performance in 2H FY2020 was impacted by low occupancies during the initial stage of the COVID-19 outbreak in 2020. Japan entered into a state of emergency three times within the first 9 months of 2021, with the lat
Slide 22: The Westin Kuala Lumpur performance
The Westin Kuala Lumpur (TWKL) > TWKL’s RevPAR for 2H FY2021 increased >100% YoY. This was due to a temporary suspension of its operations for close to 5 months in 2020. > TWKL resumed operations on 18 Dec 2020 and the temporary suspension had helped to conserve cashflow for the property. The hote
Slide 23: Maritim Hotel Dresden performance
Maritim Hotel Dresden (MHD) > In 2H FY2021, MHD’s performance showed signs of improvement YoY from Jul to Sep 2021. The adjoining International Congress Centre has re-opened and has been holding small-scale domestic events. However, the property’s performance has yet to recover with the absence of
Slide 24: Portfolio Valuation
Portfolio Valuation Fraser Suites Glasgow
Slide 25: Portfolio value as at 30 Sep 2021
Portfolio Value Country as at 30 Sep 2021 Germany 4% Singapore SGD 798.0m Malaysia Japan 5% 9% Australia AUD 737.5m Singapore 36% UK GBP 173.0m UK Portfolio value 14% SGD 2.25 b Japan JPY 16,200.0m Malaysia MYR 368.0m Australia Germany EUR 59.3m 32% Total SGD 2,248.4m 25
Slide 26: Valuation by country and cap rates
Valuation as at Valuation as at Variance Variance FY2021: FY2020: Country 30 Sep 2021 30 Sep 2020 in Local in SGD SGD 2.25b SGD 2.25b (SGD m) (SGD m) Currency Singapore 798.0 798.0 0.0% 0.0% Australia 723.8 709.9 1.9% 1.6% UK 316.5 306.3 3.3% -0.3% Japan 198.1 207.5 -4.5% 1.9% Malaysia 118.8 127.2 -
Slide 27: Risk & Capital Management
Risk & Capital Management ANA Crowne Plaza Kobe
Slide 28: Balance sheet, debt maturity and hedging
As at 30 Sep 2021 Debt maturity profile (excludes short-term loans) Investment properties SGD 2,024.8m SGD m 270.0 Property, plant and equipment SGD 226.7m 237.8 180.7 Total assets SGD 2,349.2m 148.7 100.0 Total borrowings SGD 988.5m Gearing1,2 42.2% 2022 2023 2024 2025 2026 Net asset value per stap
Slide 29: Market Outlook
Market Outlook The Westin Kuala Lumpur
Slide 30: Singapore market outlook
◆ International visitor arrivals: 153,060 (-94.3% YoY) in Jan-Aug 2021 ◆ In 2021, Singapore hotels’ occupancy rates have been supported by the business generated by the government’s Stay-Home facility business. Quarantine and staycation demand is expected to continue to support the industry in the s
Slide 31: Australia market outlook
◆ International tourist arrivals: 143,230 (-92.0% YoY) in Jan-Aug 2021 ◆ According to STR, Australia’s hotel industry reported 30.8% occupancy in Aug 2021, the lowest level since May 2020, given prolonged lockdowns in the country. In Oct 2021, Sydney and Melbourne emerged from months of COVID-19 loc
Slide 32: UK market outlook
◆ UK’s tourism agency, VisitEngland, has forecast inbound tourism spending in the UK in 2021 at GBP 6.2b, less than a quarter of the GBP 28.4b in 2019. ◆ Since hotels in UK were permitted to re-open in mid-May 2021 after more than 4 months of lockdown, the UK has been leading Europe in hotel perform
Slide 33: Japan market outlook
◆ International visitor arrivals: 173,292 (-95.6% YoY) in Jan-Aug 2021 ◆ Japan has announced re-opening of borders to fully vaccinated travellers, with quarantine period reduced to 10 days from 14, from 1 Oct 2021 onwards ◆ Given the lifting of the state of emergency at end-Sep 2021, the trading per
Slide 34: Malaysia market outlook
◆ Kuala Lumpur’s (KL) top-tier hotels’ performance was impacted by Malaysia’s nationwide total or partial lockdown from Feb 2021 onwards. Following an acceleration of its national vaccination rate, Malaysia has allowed interstate and international travel from 11 Oct 2021 onwards ◆ However, domestic
Slide 35: Germany market outlook
◆ Germany’s number of overnight stays by domestic and foreign visitors fell 15.0% YoY in Jan-Aug 2021. ◆ In Dresden, the total number of domestic and foreign visitors fell 64.5% YoY in Jan-Jun 2021. ◆ Since Jun 2021, Germany had already started admitting travellers who have taken European Medicines
Slide 36: FHT well-positioned to capture upside in recovery
Prospects for Sep-Dec 2021 remain mixed, according to For air travel, gradual recovery trends expected to UNWTO survey1 continue in 2022, albeit an uneven recovery2 > The largest share of experts in the survey expect > Pace of vaccine rollout and government policies will APAC’s tourism to return to
Slide 37: Experience matters.
Experience matters.
Slide 38: FHT portfolio of 15 properties
Edinburgh 9 15 ▪ Fraser Suites Edinburgh Glasgow Europe Cities Properties ▪ Fraser Suites Glasgow UK Germany London Kobe ▪ ibis Styles London Gloucester Road ▪ ANA Crowne Plaza Kobe SGD ▪ Park International London Japan 3,913 2.25b ▪ Fraser Place Canary Wharf ▪ Fraser Suites Queens Gate Dresden Asia
Slide 39: Property details: Australia, Singapore, UK
Valuation, Property Country Description Tenure Class Rooms 30 Sep 2021 Novotel Strategically located within AUD 231.0m Melbourne on Australia Melbourne’s core CBD area Freehold Upscale 380 (AUD0.6m/key) Collins along Collins Street 4.5-star hotel located within close Novotel Sydney 84 Mid- AUD109.0m
Slide 40: Property details: UK, Japan, Malaysia, Germany
Valuation, Property Country Description Tenure Class Rooms 30 Sep 2021 Elegant hotel ideally located in Park International GBP38.6m UK the heart of Kensington and 75 years1 Mid-scale 171 London (GBP0.2m/key) Chelsea ANA Crowne Unique panoramic view of Kobe Upper JPY16,200.0m Japan Freehold 593 Plaza
Slide 41: Property details: serviced residences
Valuation, Property Country Description Tenure Class Rooms 30 Sep 2021 First luxury apartments in Sydney Fraser Suites 75 Upper AUD127.5m Australia designed by internationally 201 Sydney years1 Upscale (AUD0.6m/key) renowned architects Luxurious serviced residences in Fraser Suites 75 Upper SGD292.0
Slide 42: Group sustainability framework and goals
◆ Our primary sustainability focus for FHT continues to be to ensure the safety and well-being of our employees, guests and stakeholders. For FHT to remain relevant in this disruptive landscape, we need to develop strategic responses to ESG (environment, social and governance) issues and implement s
Frasers Hospitality Trust — FY2021 Earnings Presentation on 6ix