Capitaland Ascott Trust · SGX:HMN
Capitaland Ascott Trust — Ascott Residence Trust — Q4 2015 Earnings Presentation
47 slides from Capitaland Ascott Trust's earnings presentation, Jan 26, 2016
Slide 1: Ascott Residence Trust 4Q 2015 Financial Results
Ascott Residence Trust A Leading Global Serviced Residence REIT 4Q 2015 Financial Results 1 26 January 2016
Slide 2: Important Notice
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 Ascott Residence Trust Management Limited, the Manager of Ascott REIT (the “Manager”)
Slide 3: Content
Content Overview of Ascott REIT Year in Review Financial Highlights Portfolio Performance Capital and Risk Management Portfolio Information Outlook and Prospects Distribution Details Appendix 3
Slide 4: Overview of Ascott REIT
Overview of Ascott REIT A Leading Global Serviced Residence REIT S$1.7b1 S$4.7b2 11,298 89 38 Market Capitalisation Total Assets Apartment Units Properties Cities in 14 Countries United Kingdom 4 Properties Belgium 2 Properties Germany The United States of America 3 Properties China France 10 Proper
Slide 5: Year in Review
Year in Review Ascott Raffles Place Singapore 5
Slide 6: Year in Review
Year in Review Revenue, gross profit for FY 2015 surged 18% and 14% YoY respectively — Revenue and gross profit increased 18% and 14% YoY respectively mainly due to additional contribution from properties acquired in 20141 and 20152. RevPAU for FY 2015 increased 4% YoY. — DPU for FY 2015 decreased 3
Slide 7: Year in Review: First US acquisition, Times Square
Year in Review Ascott Reit makes first foray into the US with the acquisition of a prime extended- stay property in Times Square of New York for US$163.5m (S$220.7m) Acquisition of Element New York Times Square West — In FY 2015, Ascott Reit charted new territory across the Atlantic, making its maid
Slide 8: Year in Review: Asset enhancement initiatives
Year in Review Completed asset enhancement initiatives (AEI) in FY 2015 uplifted ADR by 27-35% — AEI at Somerset Grand Central Dalian, Somerset Ho Chi Minh City, Somerset Xu Hui Shanghai and Somerset Olympic Tower Property Tianjin have uplifted ADR of renovated apartment units by 27-35%. — Remaining
Slide 9: Year in Review: Funding and divestments
Year in Review Diversified funding sources by tapping debt capital market in FY 2015 — Successful issuance of S$250m fixed rate perpetual securities at 4.68% p.a. — Successful issuance of 7-year JPY7.3b fixed rate notes at 1.17% p.a. and 7-year S$200m fixed rate notes at 4.21% p.a. which was swapped
Slide 10: Financial Highlights
Financial Highlights Ascott Raffles Place Singapore 10 Ascott Limited Presentation July 2013
Slide 11: Financial Highlights for 4Q 2015
Financial Highlights for 4Q 2015 4Q 2015 vs 4Q 2014 Financial Performance Revenue (S$m) Gross Profit (S$m) 119.2 95.0 ↑24% 56.8 ↑26% 45.7 4Q 2014 4Q 2015 4Q 2014 4Q 2015 Revenue Per Available Unit (S$) Unitholders’ Distribution (S$m) 124 145 33.1 1 32.1 ↑17% ↓3% 4Q 2014 4Q 2015 4Q 2014 4Q 2015 Distr
Slide 12: Financial Highlights for FY 2015
Financial Highlights for FY 2015 FY 2015 vs FY 2014 Financial Performance Revenue (S$m) Gross Profit (S$m) 421.1 357.2 180.2 204.6 ↑18% ↑14% FY 2014 FY 2015 FY 2014 FY 2015 Revenue Per Available Unit (S$) Unitholders’ Distribution (S$m) 1 128 133 125.6 123.3 ↑4% ↓2% FY 2014 FY 2015 FY 2014 FY 2015 D
Slide 13: Portfolio Value Up by 15%
Portfolio Value Up by 15%1 Higher valuation from properties in Japan, France and United Kingdom — Portfolio valuation as at 31 December 2015 of S$4,373.9m — Portfolio value increased mainly due to properties acquired in 2H 2015 as well as higher valuation of properties in Japan, France and United Ki
Slide 14: Portfolio Performance
Portfolio Performance Citadines Suites Louvre Paris 14
Slide 15: Portfolio Highlights
Portfolio Highlights Revenue and Gross Profit (by category) Revenue Gross Profit FY 2015 FY 2015 16% 30% Group Group Revenue 18% Gross Profit S$421.1m 54% S$204.6m 66% 16% 46% Stable Income Master Leases Management Contracts with Minimum Guaranteed Income Management Contracts 15
Slide 16: Income Stability
Income Stability 46% of the Group’s gross profit for FY 2015 is contributed by master leases and management contracts with minimum guaranteed income United Kingdom 4 Properties2 Germany 3 Properties1 16 Cities Belgium in 8 countries 2 Properties2 France 32 Properties 17 Properties1 Spain Japan 1 Pro
Slide 17: Geographical Diversification
Geographical Diversification Key Markets1 contributed 84.4% of the Group’s Gross Profit in FY 2015 Breakdown of Total Assets by Geography As at 31 December 2015 Key Markets 87.7% China 17.0% Rest of the World 12.3% Japan 15.9% Philippines 3.6% Singapore 13.3% Indonesia 2.6% Ascott REIT’s U.K. 12.4%
Slide 18: China
China Somerset Citadines Citadines Somerset Ascott Somerset Olympic Citadines Citadines Somerset Xu Grand Central Zhuankou Gaoxin Xi’an Heping Guangzhou Tower Property Xinghai Biyun Hui Shanghai Dalian Wuhan Shenyang Tianjin Suzhou Shanghai 3% -5% 24% 2% Key Market Performance Highlights RMB 90.0 50
Slide 19: Japan
Japan Somerset Citadines Citadines Citadines Central 29 rental housing Azabu East Shinjuku Karasuma-Gojo Shinjuku Tokyo properties Tokyo Tokyo Kyoto in Japan JPY 12% 8% 8% Key Market Performance Highlights 1600.0 14000 12,881 Revenue and gross profit increased mainly 1400.0 1,352.8 11,887 due to c
Slide 20: Singapore
Singapore Somerset Liang Citadines Mount Ascott Court Property Sophia Property Raffles Place Singapore Singapore Singapore -11% -20% -8% 3% Key Market Performance Highlights SGD 10.0 250 8.9 Revenue, gross profit and RevPAU 9.0 219 decreased mainly due to weaker demand 7.9 202 from project groups.
Slide 21: United Kingdom
United Kingdom Citadines Citadines Holborn- Citadines Citadines South Barbican Covent Garden Trafalgar Square Kensington London London London London -1% -6% -2% Key Market Performance Highlights GBP 8.0 140 7.1 Gross profit decreased mainly due to higher 7.0 121 119 7.0 provision of incentive fee.
Slide 22: France
France Citadines Citadines Citadines Citadines Citadines Citadines Suites Louvre Les Halles Croisette Place d’Italie Tour Eiffel Austerlitz Paris Paris Cannes Paris Paris Paris -3% Key Market Performance Highlights EUR 7.0 Revenue decreased due to lower recovery 5.8 of costs from lessees. Gross pr
Slide 23: Vietnam
Vietnam Somerset Somerset Somerset Somerset West Somerset Ho Chancellor Court Grand Hanoi Hoa Binh Hanoi Lake Hanoi Chi Minh City Ho Chi Minh City VND 6% 20% 8% Key Market Performance Highlights 180.0 1800 163.8 1,594 Revenue increased mainly due to higher 154.9 1600 demand for the refurbished apa
Slide 24: Australia
Australia Citadines on Citadines Quest Sydney Quest Quest Mascot Bourke Melbourne St Georges Olympic Park Campbelltown Terrace Perth >100% -1% Key Market Performance Highlights AUD >100% 10.0 180 8.9 Revenue and gross profit increased mainly 158 156 9.0 160 160 due to contribution from the propert
Slide 25: The United States of America
The United States of America Element New York Times Square West Key Market Performance Highlights USD 12.0 300 278 Ascott REIT made its first foray into the 10.6 United States of America with the 10.0 250 acquisition of the 411-unit Element New York Times Square West on 19 August 2015. 8.0 200 6.0
Slide 26: Capital and Risk Management
Capital and Risk Management Ascott Raffles Place Singapore 26
Slide 27: Healthy Balance Sheet and Credit Metrics
Healthy Balance Sheet and Credit Metrics Key Financial Indicators As at As at 31 December 2015 30 September 2015 Gearing 39.3% 40.0% Interest Cover 4.1X 4.1X Effective Borrowing Rate 2.8% 2.8% Total Debts on Fixed Rates 79% 76% Weighted Avg Debt to Maturity (Years) 4.6 4.2 NAV/Unit S$1.411 S$1.38 As
Slide 28: Capital and Risk Management: Debt Profile
Capital and Risk Management Debt Profile as at 31 December 2015 Debt Maturity Profile By Debt Type S$’m Weighted Average Debt 400 to Maturity: 4.6 Years 18% 350 330.9 16% 16% 300 14% 288.3 280.7 35% 258.7 12% 250 10% 224.3 200.0 Total Debt S$1,828.0m 200 183.9 65% 7% 7% 150 133.5 121.3 57.6 100 119.
Slide 29: Foreign Currency Risk Management
Capital and Risk Management Foreign Currency Risk Management Total Assets by Geography (%) Balance Sheet Hedging (%) As at 31 December 2015 As at 31 December 2015 China 17.0 EUR 91.6 Japan 15.9 Singapore 13.3 JPY 84.9 U.K. 12.4 USD 41.3 France 10.8 Vietnam 6.6 GBP 28.7 Australia 6.1 RMB 24.1 U.S. 5.
Slide 30: Foreign Currency Risk Management
Capital and Risk Management Foreign Currency Risk Management Gross Profit Exchange Rate Movement Currency YTD Dec 2015 (%) From 31 Dec 2014 to 31 Dec 2015 (%) EUR 22.9 -1.2 JPY 16.7 3.0 GBP 13.0 1.4 VND 10.5 3.3 SGD 8.9 - RMB 9.1 3.5 PHP 4.6 4.2 AUD 6.4 -4.1 USD 7.1 5.5 MYR 0.8 -5.2 Total 100.0 1.4
Slide 31: Portfolio Information
Portfolio Information Somerset Liang Court Singapore 31
Slide 32: Income Stability: Focus on Long Stay Segments
Income Stability Focus on Long Stay Segments Breakdown of Apartment Rental Income1 by Length of Stay FY 2015 23% 43% 5% 16% 13% 1 week or less Less than 1 month 1 to 6 months 6 to 12 months More than 12 months Average length of stay is about 4 months Note: 1. Excluding properties on master leases 32
Slide 33: Outlook and Prospects
Outlook and Prospects Ascott Raffles Place Singapore 33 Ascott Limited Presentation July 2013
Slide 34: Outlook and Prospects
Outlook and Prospects 2015 was a year of tremendous growth and expansion for Ascott Reit, having completed acquisition of assets worth S$609.1 million to reach total assets of S$4.7 billion as at 31 December 2015. The acquisitions included six properties across Australia, Japan and the United States
Slide 35: Distribution Details
Distribution Details Citadines Suites Louvre Paris 35
Slide 36: Distribution Details
Distribution Details Distribution Period 1 July 2015 to 31 December 2015 Distribution Rate 4.138 cents per Unit Last Day of Trading on “cum” Basis 29 January 2016, 5pm Ex-Date 1 February 2016, 9am Books Closure Date 3 February 2016 Distribution Payment Date 29 February 2016 36
Slide 37: Thank You
Thank You 37
Slide 38: Appendix
Appendix Citadines Mount Sophia 38 CapitaLand Presentation May 2013
Slide 39: Ongoing Asset Enhancement Initiatives
Ongoing Asset Enhancement Initiatives Properties Costs Time Period 1 Somerset Xu Hui Shanghai (Phase 2D) RMB20.1m 4Q 2015 to 2Q 2016 - Phased renovation of remaining 42 units of 1BR, 2BR and 3BRs (S$4.4m) 2 Ascott Makati US$26.1m Phase 1: - Phased renovation of selected apartment units, café, busine
Slide 40: Master Leases (4Q 2015 vs 4Q 2014)
Master Leases (4Q 2015 vs 4Q 2014) Citadines Citadines Citadines Citadines Ascott Quest Sydney Suites Louvre Les Halles Paris Croisette Arnulfpark Raffles Place Olympic Park Paris Cannes Munich Singapore Revenue (‘mil) Gross Profit (‘mil) 4Q 2015 4Q 2014 4Q 2015 4Q 2014 Australia (AUD) 1.7 0.4 - 1.6
Slide 41: Management Contracts with Minimum Guaranteed Income
Management Contracts with Minimum Guaranteed Income (4Q 2015 vs 4Q 2014) Revenue (‘mil) Gross Profit (‘mil) RevPAU 4Q 2015 4Q 2014 4Q 2015 4Q 2014 4Q 2015 4Q 2014 Belgium (EUR) 2.1 2.0 - 0.6 0.7 64 62 2 Properties Spain (EUR) 1.1 1.1 - 0.5 0.4 83 79 1 Property United Kingdom (GBP) 4 Properties 7.0 7
Slide 42: Management Contracts (4Q 2015 vs 4Q 2014)
Management Contracts (4Q 2015 vs 4Q 2014) Revenue (‘mil) Gross Profit (‘mil) RevPAU 4Q 2015 4Q 2014 4Q 2015 4Q 2014 4Q 2015 4Q 2014 Australia (AUD) 7.2 1.3 3.3 0.6 156 158 China (RMB) 81.8 79.6 22.4 18.0 432 423 Indonesia (USD) 3.3 2.9 1.2 0.6 86 73 Japan (JPY)1 1,220.0 1,018.2 674.2 567.5 12,881 11
Slide 43: Belgium
Belgium Citadines Citadines Sainte-Catherine Toison d’Or Brussels Brussels 20% 5% 3% EUR -14% 2.3 2.2 2.0 2.1 62 64 70 2.1 2.0 1.9 60 1.8 1.7 1.6 50 1.5 1.4 1.3 1.2 40 1.1 1.0 0.9 0.8 0.7 0.6 30 0.7 0.6 20 0.5 0.4 0.3 10 0.2 0.1 0.0 0 Revenue ('mil) Gross Profit ('mil) RevPAU 4Q 2014 4Q 2015 Gross p
Slide 44: Spain
Spain Citadines Ramblas Barcelona 5% 2.0EUR 79 83 90 80 70 1.1 1.1 25% 60 50 1.0 1.0 40 0.4 0.5 30 20 0.3 10 0.0 0 Revenue ('mil) Gross Profit ('mil) RevPAU 4Q 2014 4Q 2015 Exclude top up1 Excluding the top-up by the property manager in 4Q 2014, revenue for 4Q 2015 increased by EUR 0.1m. Gross profi
Slide 45: Malaysia
Malaysia Somerset Ampang Kuala Lumpur 6% 9% MYR 6.0 5.1 270 300 4.8 247 5.0 -27% 250 4.0 200 3.0 150 2.0 1.5 1.1 100 1.0 50 0.0 0 Revenue ('mil) Gross Profit ('mil) RevPAU 4Q 2014 4Q 2015 Gross profit decreased due to higher marketing expense. 45
Slide 46: Indonesia
Indonesia Ascott Jakarta Somerset Grand Citra Jakarta 14% 18% USD 3.5 3.3 100 2.9 86 90 3.0 73 2.5 100% 80 70 2.0 60 50 1.5 1.2 40 1.0 0.6 30 20 0.5 10 0.0 0 Revenue ('mil) Gross Profit ('mil) RevPAU 4Q 2014 4Q 2015 Revenue and RevPAU increased mainly due to stronger demand from corporate accounts.
Slide 47: The Philippines
The Philippines Ascott Makati Somerset Millennium Makati -15% -23% PHP 300.0 262.4 5000 4,356 4500 250.0 202.1 -19% 3,685 4000 200.0 3500 3000 150.0 2500 100.0 85.6 69.6 2000 1500 50.0 1000 500 0.0 0 Revenue ('mil) Gross Profit ('mil) RevPAU 4Q 2014 4Q 2015 Revenue and RevPAU decreased mainly due to
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