CapitaLand Ascott Trust · SGX:HMN
CapitaLand Ascott Trust — Ascott Residence Trust — Investor Presentation (February 2018)
47 slides from CapitaLand Ascott Trust's investor presentation, Feb 9, 2018
Slide 1: Ascott Residence Trust
Ascott Residence Trust A Leading Global Serviced Residence REIT Presentation For PhillipCapital 1 9 February 2018 Presentation For PhillipCapital *9 February 2018*
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 ▪ Ascott REIT Value Creation ▪ Key Highlights For FY 2017 ▪ Portfolio Performance ▪ Conclusion ▪ Appendix 3 Presentation For PhillipCapital *9 February 2018*
Slide 4: Overview of Ascott REIT
Overview of Ascott REIT Citadines on Bourke Melbourne 4 Presentation For PhillipCapital *9 February 2018*
Slide 5: Ascott REIT – A Leading Global Serviced Residence REIT
Ascott REIT – A Leading Global Serviced Residence REIT Diversified And Defensive Portfolio Of Quality Assets Located In Major Gateway Cities S$2.6b S$5.2b 11,430 73 37 Market Capitalisation Total Assets Apartment Units Properties Cities in 14 Countries United Kingdom China 4 properties 7 properties
Slide 6: Most Geographically Diversified REIT and Largest Hospitality S-REIT
Ascott REIT Is The Most Geographically Diversified REIT And The Largest Hospitality S-REIT By Asset Size And Market Capitalisation1 7.0 Market Capitalisation - S$2.6 billion2 Total Assets - S$5.2 billion3 6.0 Geographical Reach - 14 countries 5.0 Total Assets (S$ billion) 4.0 Far East Frasers Ascott
Slide 7: What Are Serviced Residences?
What Are Serviced Residences? “Home away from home” ▪ Fully furnished apartments catered for both short and extended stays ▪ Kitchen facilities with separate living and dining area Ascott Orchard Singapore Somerset Grand Hanoi Citadines Toison d’Or Brussels 7 Presentation For PhillipCapital *9 Febru
Slide 8: What Are Serviced Residences? Hotels vs Serviced Residences
What Are Serviced Residences? Hotels Serviced Residences Lease ▪ Short-term Structure accommodation ▪ Variable lease terms & Terms ▪ Revenue from rooms and ▪ Revenue predominantly from Revenue other sources e.g. F&B, rooms ancillary, etc. ▪ Higher staff-to-room ratio ▪ Lower staff-to-room ratio Cost
Slide 9: Awards & Accolades
Awards & Accolades • The Asia Pacific Best of the Breeds REITs Awards 2017 – Best Hospitality REIT Platinum • Ranked 6 out of the 42 Trusts in the Singapore Governance and Transparency Index 2017 – REIT and Business Trust Category • 41 of our properties won World Travel AwardsTM 2017 – Leading Servi
Slide 10: Ascott REIT Value Creation
Ascott REIT Value Creation Citadines City Centre Frankfurt 10 Presentation For PhillipCapital *9 February 2018*
Slide 11: Ascott REIT's Value Creation
Ascott REIT’s Value Creation 11 Presentation For PhillipCapital *9 February 2018*
Slide 12: 1. Growth By Acquisition
1. Growth By Acquisition Ascott REIT’s Total Assets Has Increased Fivefold Since Its Listing In 2006 Total Assets (S$ billion) 5.5 1 4.7 4.8 4.1 3.6 3.0 3.0 2.8 1.7 1.7 1.7 1.1 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Note: 1. Including Citadines Biyun Shanghai and Citadines Gaoxi
Slide 13: Growth By Acquisition: Gross Profit and Distribution
Growth By Acquisition Robust Growth In Gross Profit And Delivered A Strong Total Shareholder Return Of 338%1 Since IPO Gross Profit (S$ million) 222.4 226.9 204.6 180.2 157.5 159.1 161.2 95.5 84.6 101.3 69.7 42.6 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unitholders’ Distribution (
Slide 14: Strong Acquisition Track Record Since Listing
1. Growth By Acquisition Ascott REIT’s Strong Acquisition Track Record Since Listing 2006 (S$217.5m) 2008 (S$56.7m) 2011 (S$58.9m) 2013 (S$287.4m) 2015 (S$519.0m) 2017 (S$648.3m) • Somerset Olympic • Citadines St Georges • 60% stake in Citadines • Somerset Heping • Citadines on Bourke • 93% stake in
Slide 15: Active Asset Management Through Capital Recycling
Active Asset Management Through Capital Recycling Properties With A Total Divestment Value Of S$1.3 billion Have Been Recycled And Re-deployed Into Higher Yielding Assets Since 2010 2010 (S$335.7m) The proceeds from 2014 (S$140.0m) 2015 (S$60.3m) Ascott REIT Divested • Ascott Beijing S$301.8m the 20
Slide 16: Active Asset Management: Asset Enhancement Initiatives
Active Asset Management Enhance Value And Drive Organic Growth Through Asset Enhancement Initiatives Somerset Ho Chi Minh City (Final Phase) – Renovation of 66 apartment units ADR uplift of ~23%1 Pre-refurbishment Post-refurbishment Somerset Millennium Makati – Renovation of lobby and 113 apartment
Slide 17: Citadines Mount Sophia Singapore Refurbishment
Active Asset Management Citadines Mount Sophia Singapore – Rejuvenated Lobby And Breakfast Lounge Lobby: Pre-refurbishment Breakfast Lounge: Pre-refurbishment Lobby: Post-refurbishment Breakfast Lounge: Post-refurbishment 17 Presentation For PhillipCapital *9 February 2018*
Slide 18: Healthy Balance Sheet And Credit Metrics
3. Capital and Risk Management Healthy Balance Sheet And Credit Metrics As at 31 December 2017 Gearing 36.2%1 Interest Cover 4.7X Effective Borrowing Rate 2.4% Total Debts on Fixed Rates 81%2 Weighted Avg Debt to Maturity (Years) 4.1 NAV/Unit S$1.25 Adjusted NAV/Unit (excluding the distributable S$1
Slide 19: Diversify funding sources and spread out debt maturity
Continues to diversify funding sources and spread out debt maturity over the long-term Well-spread Debt Maturity; ~13% Debt Maturing In 2018 Debt Maturity Profile By Debt Type As at 31 December 2017 As at 31 December 2017 S$’m 24% 25% 468 60% 484 200 13% 14% 15% 264 277 293 Total Debt S$1,958m 61 85
Slide 20: Foreign Currency Risk Management
Foreign Currency Risk Management Ascott REIT Adopts A Natural Hedging Strategy To The Extent Possible; ~48% Of The Total Assets Denominated In Foreign Currency Has Been Hedged Debt By Currency (%) Balance Sheet Hedging (%) As at 31 December 2017 As at 31 December 2017 EUR JPY 90 35% EUR 79 JPY USD 4
Slide 21: Foreign Currency Risk Management: Gross Profit Impact
3. Foreign Currency Risk Management Overall Exchange Rate Fluctuations Have Been Largely Mitigated With Impact To Gross Profit At -0.5% Gross Profit Exchange Rate Movement Currency FY 2017 (%) From 31 Dec 2016 to 31 Dec 2017 (%) EUR 23.1 1.3 JPY 14.1 2.1 USD 12.1 -2.8 VND 10.5 -3.2 GBP 9.7 -0.5 RMB
Slide 22: Key Highlights of FY 2017
Key Highlights of FY 2017 Ascott Orchard Singapore 22 Presentation For PhillipCapital *9 February 2018*
Slide 23: Key Highlights of FY 2017: Revenue and Distribution
Key Highlights of FY 2017 Revenue And Unitholders’ Distribution Grew 4% And 13% Y-o-Y Respectively Revenue Gross Profit Revenue Per Available Unit (S$m) (S$m) (S$) 4% 2% 3% Y-o-Y 222.4 Y-o-Y 226.9 Y-o-Y 144 475.6 496.3 140 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 Unitholders’ Distribution Dis
Slide 24: Key Highlights of FY 2017: Acquisitions
Key Highlights of FY 2017 Entrenching Our Presence In The Key Gateway Cities With 4 Quality Properties • Enhancing income stability with master lease arrangements Germany 1. Citadines City Centre Frankfurt – S$51.7m Citadines Michel Hamburg 2. Citadines Michel Hamburg – S$43.2m Singapore 3. Ascott O
Slide 25: Key Highlights of FY 2017: Portfolio Reconstitution
Key Highlights of FY 2017 Strategic Portfolio Reconstitution ▪ Divested a portfolio of 18 rental housing properties in Tokyo, Japan on 26 April 2017 • 16% above valuation • Net divestment gain of S$20.1m1 ▪ Divestment of 2 serviced residences in China, Asyl Court Nakano Zesty Akebonobashi Sakaue Tok
Slide 26: Key Highlights of FY 2017: Asset Enhancement Initiatives
Key Highlights of FY 2017 Strengthen Value And Quality Through Asset Enhancement Initiatives ▪ Completed the refurbishments at Somerset Millennium Makati, Somerset Ho Chi Minh City and Citadines Barbican London, leading to ADR uplift of: 14%Y-o-Y 23%Y-o-Y 10%Y-o-Y Somerset Millennium Somerset Ho Cit
Slide 27: Key Highlights of FY 2017: Capital Management
Key Highlights of FY 2017 Disciplined And Prudent Capital Management ▪ Successfully raised S$442.7m through a rights issue in April 2017 which was 1.8 times oversubscribed ▪ Gearing remained low at 36.2%1 as at 31 December 2017 ▪ Effective borrowing rate maintained at 2.4% per annum ▪ ~81% of total
Slide 28: Portfolio Performance
Portfolio Performance Ascott Guangzhou 28 Presentation For PhillipCapital *9 February 2018*
Slide 29: Stable Performance Driven by Balanced and Diversified Portfolio
Stable Performance Driven by A Balanced and Diversified Portfolio Breakdown Of Total Assets By Geography As At 31 December 2017 Asia Pacific 62.3% Europe 26.1% Singapore 17.9% France 9.8% China 15.0% UK 9.0% Japan 12.5% Germany 4.8% Ascott REIT’s Viet nam 5.6% Total Assets Spain 1.3% Aust ralia 5.3%
Slide 30: Balanced Portfolio Underpinned By Stable And Growth Income
Balanced Portfolio Underpinned By Stable And Growth Income Stable Income Growth Income Properties under Management Properties on Properties under Contracts with Management Master Lease Minimum Income Contracts Guarantee No fixed or Properties on Master Lessees guaranteed rental but management pay fi
Slide 31: 42% of Gross Profit Contributed by Stable Income
42% of Gross Profit in FY 2017 Contributed by Stable Income 35 Out Of 751 Properties Enjoy Income Visibility Derived From Master Leases And Minimum Guaranteed Income Contracts With Weighted Average Tenure Extended To ~6 Years Gross profit contribution by Properties under master leases and management
Slide 32: Master Leases (FY 2017 vs FY 2016)
Master Leases (FY 2017 vs FY 2016) La Clef Citadines Citadines Citadines Ascott Quest Sydney Louvre Paris Les Halles Paris Croisette Arnulfpark Raffles Place Olympic Park Cannes Munich Singapore Revenue And Gross Profit Grew 11% And 10% Respectively Due To Inorganic Growth Revenue (‘mil) Gross Profi
Slide 33: Minimum Guaranteed Income (FY 2017 vs FY 2016)
Management Contracts with Minimum Guaranteed Income (FY 2017 vs FY 2016) Citadines Toison Citadines Ramblas Citadines Trafalgar d’Or Brussels Barcelona Square London Revenue, Gross Profit And Revpau Grew 4% Y-o-Y Each Due To Turnaround Of Belgium Performance Revenue (‘mil) Gross Profit (‘mil) RevPAU
Slide 34: 58% of Gross Profit Contributed by Growth Income
58% of Gross Profit in FY 2017 Contributed by Growth Income 40 Out Of 751 Properties Enjoy Upside Growth Potential Derived From Management Contracts Gross profit contribution by Properties under management contracts contract type in FY 2017 58% Growth Income Japan, 12% Vietnam, 11% 29% FY 2017 Gross
Slide 35: Management Contracts (FY 2017 vs FY 2016)
Management Contracts (FY 2017 vs FY 2016) Revenue And Revpau Grew 3% And 2% Y-o-Y Respectively Revenue (‘mil) Gross Profit (‘mil) RevPAU FY FY % FY FY % FY FY % 2017 2016 Change 2017 2016 Change 2017 2016 Change Australia (AUD) 27.4 27.5 - 11.2 11.4 (2) 147 149 (1) China (RMB) 297.8 302.1 (1) 104.1
Slide 36: Continue To Focus On Extended Stay Segments
Continue To Focus On Extended Stay Segments Breakdown Of Apartment Rental Income By Length Of Stay FY 2017 15% Average length of stay was ~3 months1, which provides 5% income stability 9% 1 week or less 57% Less t han 1 mont h 1 t o 6 mont hs 14% 6 t o 12 mont hs More t han 12 mont hs Note: 1. Based
Slide 37: Ongoing Asset Enhancement Initiatives
Proactive Asset Management – Ongoing Asset Enhancement Initiatives1 Sheraton Tribeca New Description Phase I: Renovation of public areas York Hotel Phase II: Renovation of guestrooms and toilets The United States of America Period of renovation Target to complete in Mar 2018 Renovation of 183 apartm
Slide 38: Conclusion
Conclusion Ascott Makati 38 Presentation For PhillipCapital *9 February 2018*
Slide 39: Ascott REIT Investment Proposition
Ascott REIT Investment Proposition Largest hospitality REIT in Singapore - Total asset of S$5.2b1 1 - Market capitalisation of S$2.6b Well-balanced portfolio with 58%2 of gross profit 2 contributed by growth income and 42%2 by stable income Stable & resilient returns through a portfolio of quality &
Slide 40: Conclusion
Conclusion Focused and committed on delivering stable and resilient returns to Unitholders through the depository of diversified and quality assets, together with the extended-stay business model and its master leases and management contracts with minimum guaranteed income 1 Growth Through ▪ Remains
Slide 41: Appendix
Appendix Somerset Ho Chi Minh City 41 Presentation For PhillipCapital *9 February 2018*
Slide 42: Strong Sponsor – The Ascott Limited
Strong Sponsor – The Ascott Limited A Wholly-owned Subsidiary Of CapitaLand Limited One of the leading international serviced residence owner- operators with extensive presence >30 year track record, pioneered Pan-Asia’s first international-class serviced residence property in 1984 Sponsor – c.44% C
Slide 43: Ascott's Brands
Ascott’s Brands Citadines Saint-Germain-des-Prés Ascott Orchard Singapore Somerset Wusheng Wuhan, China Paris, France Ascott Citadines Somerset Exclusive city living homes Ideal home in the city with Stylish apartments offering with discreet services for flexible services for individuals the comfort
Slide 44: Ascott's Brands
Ascott’s Brands Artist’s impression Quest West Perth, Australia La Clef Tour Eiffel Paris, France lyf Funan, Singapore Quest The Crest Collection lyf Spacious serviced Luxurious city living with A new way of living and apartment style hotel discreet services for business collaborating as a rooms per
Slide 45: Overview of Ascott REIT: Trust Structure
Overview of Ascott REIT Trust Structure Unitholders Holding of Units Distributions Management Acts on behalf Services of Unitholders Manager Trustee Ascott Residence Trust DBS Trustee Limited Management Limited – for Unitholders Management Trustee’s Fees Fees Net Profit Dividends Ownership Ownership
Slide 46: Diversified Geographical Footprint Across 37 Cities in 14 Countries
Diversified Geographical Footprint Across 37 Cities in 14 Countries Japan China United Kingdom o Citadines Central Shinjuku Tokyo o Ascott Guangzhou Citadines Shinjuku Tokyo United States of America o Citadines Barbican London o Citadines Xinghai Suzhou o o Somerset Azabu East Tokyo o Citadines Holb
Slide 47: Thank You
Thank You 47 Presentation For PhillipCapital *9 February 2018*
Ascott Residence Trust — Investor Presentation (February 2018) on 6ix