CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — Q1 2016 Earnings Presentation
64 slides from CDL Hospitality Trusts's earnings presentation, Apr 29, 2016
Slide 1: 1Q 2016 Results Presentation
1Q 2016 Results Presentation 29 April 2016
Slide 2: Disclaimer
Disclaimer The value of Stapled Securities and the income derived from them may fall as well as rise. Stapled Securities are not obligations of, deposits in, or guaranteed by the H-REIT Manager or M&C Business Trust Management Limited, as trustee-manager of CDL Hospitality Business Trust (the “HBT T
Slide 3: About CDL Hospitality Trusts
About CDL Hospitality Trusts CDL Hospitality Trusts (“CDLHT”) is one of Asia’s leading hospitality trusts with assets valued at S$2.5 billion. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (“H-REIT”), a real estate investment trust, and CDL Hospitality Business Tru
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 ARR refers to average room rate AUD refers to Australian dollar DPU refers to distribution per unit FY refers to financ
Slide 5: Table of Contents
Table of Contents Results Highlights 6 Portfolio Summary 8 Healthy Financial Position 11 Singapore Market 15 Maldives Market 23 Japan Market 26 United Kingdom Market 30 Australia and New Zealand Markets 33 Asset Enhancement Plans for FY 2016 37 Annexe 44 Background and Structur
Slide 6: Results Highlights
CDL HOSPITALITY TRUSTS Results Highlights
Slide 7: Results Highlights (1Q 2016)
Results Highlights (1Q 2016) Income available for distribution Net Property Income DPU (1) (after retention) S$33.7 million S$21.9 million 2.22 cents 2.3% yoy 8.5% yoy 9.0% yoy S$ million S$ million S$ cents 40.0 34.5 33.7 30.0 24.0 3.00 2.44 21.9 2.22 30.0 20.0 2.00 20.0 10.0 10.0 1.00 0.0 0.0 0.00
Slide 8: Portfolio Summary
CDL HOSPITALITY TRUSTS Portfolio Summary
Slide 9: NPI Performance by Country
NPI Performance by Country 1Q 2016 1Q 2015 Change YoY Change S$’000 S$’000 S$’000 Singapore 20,579 21,547 -968 -4.5% Australia 3,848 4,731 -883 -18.7% New Zealand 2,851 2,537 314 12.4% Maldives 3,662 4,058 -396 -9.8% Japan (1) (2) 1,466 1,624 -158 -9.7% United Kingdom (3) 1,304 - 1,304 N.M. Total 33
Slide 10: Portfolio Breakdown
Portfolio Breakdown Breakdown of Portfolio Valuation (1)(2) Australia 8.6% Singapore 70.5% Novotel Brisbane 2.8% Orchard Hotel 18.2% Mercure & Ibis Brisbane 2.6% Grand Copthorne 14.2% Mercure Perth 1.9% Waterfront Hotel Ibis Perth 1.3% Novotel Singapore Clarke 12.9% Quay Maldives 7.7% M Hotel 9.5% A
Slide 11: Healthy Financial Position
Healthy Financial Position 11
Slide 12: Healthy Balance Sheet
Healthy Balance Sheet With gearing of 36.7% and debt headroom of S$140 million (3), CDLHT will continue to source for suitable acquisition opportunities Key Financial Indicators As at 31 Mar 2016 As at 31 Dec 2015 Debt Value (1) S$921 million S$926 million Total Assets S$2,512 million S$2,547 mill
Slide 13: Debt Facility Details
Debt Facility Details Borrowings Multi-Currency MTN Programme S$1.0 billion MTN Issued: S$203.6 million (S$83.6 million 5-year float and S$120.0 million 5-year fixed) Unutilised: S$796.4 million 3-year to 3.25-year Committed Multi-Currency RCF S$250.0 million RCF Utilised: S$157.0 million Un
Slide 14: Debt Profile as at 31 Mar 2016
Debt Profile as at 31 Mar 2016 Debt Maturity Profile (1)(2) S$ million Weighted Average Debt to Maturity ~ 2.6 years Currency Amount Type Expiry 400 (a) SGD S$83.6M Floating MTN Aug 2016 350 323 (b) GBP S$125.8M Floating Bridge Loan Aug 2016 300 (c) SGD S$120.0M Fixed MTN Jun 2018 103 (d) 216 250 20
Slide 15: Singapore Market
CDL HOSPITALITY TRUSTS Singapore Market 15
Slide 16: CDLHT Singapore Properties Performance
CDLHT Singapore Properties Performance YoY CDLHT Singapore Hotels 1Q ’16 1Q ’15 Change Occupancy 83.9% 87.7% -3.8pp ARR S$191 S$197 -3.0% RevPAR S$161 S$173 -6.9% Trading environment was competitive as a result of new hotel supply and uncertain global economic growth The ongoing soft room refurb
Slide 17: Singapore Visitor Arrivals Up 12.3% for YTD Feb 2016
Singapore Visitor Arrivals Up 12.3% for YTD Feb 2016 For 2016, STB estimates visitor arrivals to show modest growth of up to 3% to 15.7 million (1) For YTD Feb 2016, visitor arrivals grew 12.3% yoy mainly due to growth in the top two source markets A S$700 million Tourism Development Fund was
Slide 18: Geographical Mix of Top Markets (Singapore)
Geographical Mix of Top Markets (Singapore) For YTD Feb 2016, visitor arrivals grew on the back of continued growth in Chinese arrivals (+33.6%) and early signs of recovery from Indonesian market (+10.7%) Overall, 9 out of the top 10 source markets recorded yoy growth Geographical Mix of Visitor
Slide 19: Singapore – A Leading MICE Destination
Singapore – A Leading MICE Destination Singapore has retained its spot as the top international meeting city for the eighth year running (1) It is growing its status as a leading MICE destination with prominent events being added to its calendar Its attractiveness is due to the country’s excel
Slide 20: World-Class Infrastructure and Attractions
World-Class Infrastructure and Attractions Changi Airport Terminal 4 and Project Jewel National Gallery Singapore Sports Hub Singapore Botanic Gardens - UNESCO World Heritage Site Redevelopment of six Sentosa precincts Makeover of Mandai Zoo Image Credits: Changi Airport Group, W-Architects, Nationa
Slide 21: Singapore Hotel Room Supply
Singapore Hotel Room Supply According to STB, an estimated 3,736 rooms were added in 2015, representing a 6.5% increase over 2014 Operating environment expected to be competitive with 3,930 (1) rooms opening in 2016 New room supply is expected to grow at a CAGR of 3.8% between 2015 and 2018 Cu
Slide 22: Potential Supply of New Singapore Hotel Rooms Until 2018
Potential Supply of New Singapore Hotel Rooms Until 2018 No. of Horwath Expected No. of Horwath Expected Name of Hotel Location Name of Hotel Location Rms Rating Opening Rms Rating Opening Oasia Downtown Hotel 314 Upscale/Luxury City Centre Opened Crowne Plaza Changi Airport 243 Mid-Tier Outside Cit
Slide 23: Maldives Market
CDL HOSPITALITY TRUSTS Maldives Market 23
Slide 24: CDLHT Maldives Resorts Performance
CDLHT Maldives Resorts Performance The Maldives Resorts recorded yoy RevPAR decline 28.7% in 1Q 2016. Trading environment was competitive due to aggressive price promotions by resorts to defend market share, driven mainly by: Continued strength of the USD against currencies of the major source m
Slide 25: Maldives Tourism Market Update
Maldives Tourism Market Update For YTD Mar 2016, visitor arrivals grew 4.3% Looking ahead, Maldives hospitality sector may continue to experience weakness in RevPAR performance due to: Relative strength of USD against currencies of major source markets, especially euro and rouble, which has th
Slide 26: Japan Market
CDL HOSPITALITY TRUSTS Japan Market 26
Slide 27: CDLHT Japan Hotels Performance
CDLHT Japan Hotels Performance The Japan Hotels registered a combined yoy RevPAR growth of 7.5% on the back of continued growth in visitor arrivals into the market During the quarter, occupancies of the hotels were affected due to the conversion of some of its room inventory to non-smoking rooms
Slide 28: Japan Tourism Market Update
Japan Tourism Market Update For YTD Mar 2016, visitor arrivals grew 39.3% yoy to 5.8 million Japan saw a record 2.0 million visitors in Mar 2016 – the highest for a single month With the upcoming Tokyo Olympics in 2020 and strong growth trajectory, Prime Minister Shinzo Abe has since doubled t
Slide 29: Geographical Mix of Top Markets (Japan)
Geographical Mix of Top Markets (Japan) Chinese has maintained its status as the top source market for Japan with a market share of 26% Growth momentum from Chinese market continues to be strong with visitor arrivals recording the largest increase of 59.4% for YTD Mar 2016 arrivals All top 10
Slide 30: United Kingdom Market
CDL HOSPITALITY TRUSTS United Kingdom Market 30
Slide 31: CDLHT UK Hotel Performance
CDLHT UK Hotel Performance Issac Newton Function Junior Suite Hilton Cambridge City Centre recorded a yoy RevPAR growth of 7.3% (1) in 1Q 2016 The growth was largely fuelled by an increase in business as a result of the refurbishment completed in Apr 2015 and the rebranding of the hotel to Hilto
Slide 32: UK Tourism Market Update
UK Tourism Market Update Continued Growth in Buoyant Outlook in Cambridge International Visitor Arrivals to UK Driven by Burgeoning Life Science Cluster Million 50.0 5-Year CAGR = 3.7% 40.0 35.8 32.7 34.4 29.8 30.8 31.1 30.0 20.0 10.0 0.0 2010 2011 2012 2013 2014 2015 Full Year Arrivals Artist’s Imp
Slide 33: Australia and New Zealand Markets
Australia and New Zealand Markets 33
Slide 34: CDLHT Australia Hotels Performance
CDLHT Australia Hotels Performance NPI (1) S$ million 6.0 -18.7% 5.0 4.7 1.1 3.8 4.0 0.4 3.0 2.0 3.7 3.5 1.0 0.0 1Q 2015 1Q 2016 Fixed rent for current period Variable rent attributable to previous full year Mercure Perth Restaurant - Post-refurbishment NPI for 1Q 2016 saw a decrease of 18.7% yoy
Slide 35: CDLHT New Zealand Hotel Performance
CDLHT New Zealand Hotel Performance Rendezvous Hotel Auckland recorded strong underlying performance as a result of the robust hospitality market Rent contribution was higher in 1Q 2016 mainly due to the S$0.5 million full year variable income that was recognised for the first time as a result o
Slide 36: Summary: 1Q 2016 vs. 1Q 2015
Summary: 1Q 2016 vs. 1Q 2015 Key Factors Affecting Net Property Income Renovation in Grand Copthorne Waterfront Hotel and M Hotel Weaker corporate group business Singapore Easter holiday in March 2016 affecting corporate business (Easter was in April in 2015) Australia Lower full year variab
Slide 37: Asset Enhancement Plans for FY 2016
Asset Enhancement Plans for FY 2016 37
Slide 38: Asset Enhancement Plans for FY 2016
Asset Enhancement Plans for FY 2016 Grand Copthorne Waterfront Hotel: In 2016, the hotel will complete an extensive renovation to refresh lobby, add meeting room capacity and augment Singapore its F&B offerings M Hotel: Its ongoing room refurbishment of standard and deluxe rooms to complete in 2
Slide 39: Asset Enhancement Plans for FY 2016
Asset Enhancement Plans for FY 2016 M Hotel After Ongoing room refurbishment to complete by 2016 Before 39
Slide 40: Asset Enhancement Plans for FY 2016
Asset Enhancement Plans for FY 2016 M Hotel Two suites were made available for booking since 1 Apr 2016 40
Slide 41: Asset Enhancement Plans for FY 2016
Asset Enhancement Plans for FY 2016 Grand Copthorne Waterfront Hotel Artist’s impression only, subject to change A full revamp of the lobby and reception areas Before 41
Slide 42: Asset Enhancement Plans for FY 2016
Asset Enhancement Plans for FY 2016 Grand Copthorne Waterfront Hotel Function Rooms - Artist’s impression only, subject to change Two new function rooms totalling ~330 sq m to be Before added 42
Slide 43: Asset Enhancement Plans for FY 2016
Asset Enhancement Plans for FY 2016 Grand Copthorne Waterfront Hotel All-Day Dining Outlet - Artist’s impression only, subject to change New F&B outlets Before 43
Slide 44: Background and Structure of CDL Hospitality Trusts
Background and Structure of CDL Hospitality Trusts 44
Slide 45: Background on CDLHT
Background on CDLHT Background Post IPO Performance Announcement IPO on 19 July 2006 of Novotel Singapore High (10 Jul ’07) Announcement of Announcement of Announcement of Announcement of $3.00 Clarke Quay Listed on SGX Acquisition = S$2.01 = S$2.66 Australia Hotels Acquisition Private Placement
Slide 46: CDLHT Structure
CDLHT Structure Sponsor Investors ≈36.40% Holdings of Stapled Securities ≈63.60% as at 31 Mar 2016 as at 31 Mar 2016 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 47: Blue Chip Sponsor and Parentage
Blue Chip Sponsor and Parentage Millennium & Copthorne Hotels plc City Developments Limited One of the largest property developers in Listed on the London Stock Exchange with Singapore with a market capitalisation of ~ S$8.2 market capitalisation of ~ £1.4 billion (1) billion (1) Debt to asset
Slide 48: Management Strategy
Management Strategy Acquisition Growth Strategy Asset Management Strategy Pursue yield accretive, quality assets with Work closely with master lessees and/or investment rigour and discipline hotel managers to implement active Tap on potential pipeline from M&C / CDL revenue and cost management
Slide 49: CDLHT Asset Portfolio – Singapore
CDLHT Asset Portfolio – Singapore Grand Novotel Copthorne Claymore Singapore Properties Orchard Hotel Copthorne M Hotel Singapore Studio M Hotel King’s Hotel Connect Portfolio Waterfront Hotel Clarke Quay Located on One of the largest Located in the Located within Orchard Road, Stylish and Re-positi
Slide 50: CDLHT Asset Portfolio – Overseas
CDLHT Asset Portfolio – Overseas Novotel Brisbane Mercure Brisbane Ibis Brisbane Mercure Perth Ibis Perth Properties Australia Portfolio (Australia) (Australia) (Australia) (Australia) (Australia) Comprehensive Situated in Perth’s CBD Well-situated in the heart of the government and Located steps aw
Slide 51: CDLHT Asset Portfolio – Overseas (con’t)
CDLHT Asset Portfolio – Overseas (con’t) Jumeirah Hotel MyStays Hotel MyStays Angsana Velavaru Properties Dhevanafushi Maldives Portfolio Asakusabashi Kamata Japan Portfolio (Maldives) (Maldives) (Japan) (Japan) Located in central Tokyo, with easy All-suite luxury resort, Located near Keikyu- Upmark
Slide 52: CDLHT Asset Portfolio – Overseas (con’t)
CDLHT Asset Portfolio – Overseas (con’t) Rendezvous Hotel Auckland Hilton Cambridge City Centre Properties CDLHT Portfolio (New Zealand) (United Kingdom) Overlooking the Auckland Central Business Newly refurbished upper upscale hotel and District, Rendezvous Hotel Auckland is New boasts a prime loca
Slide 53: 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 a fixed rent floor of S$26.4 m Term of 20 years from Listing (19 July 2006) with 20-year option Claymore Connect: H-REI
Slide 54: Summary of Leases
Summary of Leases Rendezvous Hotel Auckland: New Zealand Base rent + Variable rent RHA Base rent escalates at 2.75% per annum Term of 10 years from 7 September 2006 Novotel, Mercure & Ibis Brisbane, Mercure & Ibis Perth: Base rent + Variable rent Australia Portfolio Base rent: A$13.7 m per
Slide 55: Summary of Lease and Management Agreement
Summary of Lease and Management Agreement Angsana Velavaru: Rent: Hotel’s gross operating profit less lessee’s management fee, subject to minimum rent Minimum rent of US$6.0 million per year guaranteed by lessee / Banyan Tree Holdings Limited, subject to maximum rent Maldives reserve of US$6.0 m
Slide 56: Summary of Management Agreement
Summary of Management Agreement Hotel MyStays Asakusabashi and Hotel MyStays Kamata: HBT is the master lessee (“HBT Lessee”) for the hotels’ operations MyStays Hotel Management Co., Ltd. is the hotel manager of the hotels and is engaged by HBT Lessee Japan Portfolio Hotel management agreements
Slide 57: Summary of Management Agreement
Summary of Management Agreement Hilton Cambridge City Centre (previously known as Cambridge City Hotel): 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.) has been appointed
Slide 58: Location of CDL Hospitality Trusts Properties
Location of CDL Hospitality Trusts Properties 58
Slide 59: Hotels in Strategic Locations
Hotels in Strategic Locations Singapore Hotels New Zealand Hotel Orchard Hotel & Grand Copthorne Novotel Shopping Arcade Waterfront Hotel Singapore Rendezvous Clarke Quay Hotel Auckland H H H H H SINGAPORE RIVER CENTRAL MARINA BAY BUSINESS SANDS H DISTRICT H BUSINESS & FINANCIAL CENTRE SITE Copthorn
Slide 60: Hotels in Strategic Locations
Hotels in Strategic Locations Australia Hotels Mercure Ibis Novotel Mercure Brisbane Brisbane Brisbane Ibis Perth Perth Brisbane CBD Perth CBD H H H H H CBD AREA 60
Slide 61: Resorts in Premium Destination
Resorts in Premium Destination Angsana Velavaru Malé Atoll 40 min seaplane flight 55 min domestic flight + 15 min R speedboat Jumeirah Dhevanafushi ride South Nilandhe Atoll R Gan International Airport 61
Slide 62: Hotels in Japan’s Gateway City of Tokyo
Hotels in Japan’s Gateway City of Tokyo Japan Hotels Hotel MyStays Hotel MyStays Asakusabashi Kamata Asakusabashi Kamata H H 62
Slide 63: Hotel in Cambridge, United Kingdom
Hotel in Cambridge, United Kingdom United Kingdom Hotel Cambridge H Hilton Cambridge City Centre (previously known as Cambridge City Hotel) 63
Slide 64: Thank You
CDL HOSPITALITY TRUSTS THANK YOU 64
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