Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Ascott Residence Trust — FY2009 Earnings Presentation
34 slides from Singapore Exchange's earnings presentation, Jan 21, 2010
Slide 1: Ascott Residence Trust FY 2009 Financial Results
Ascott Residence Trust FY 2009 Financial Results 21 January 2010
Slide 2: Agenda
Agenda • Results Highlights • FY 2009 Portfolio Performance • Asset Enhancement Initiatives • Portfolio Information • Capital and Risk Management • Prospects 2
Slide 3: Disclaimer
Disclaimer 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 the Manager of Ascott Reit (the “Manager”) or any of its affiliates. An in
Slide 4: Results Highlights
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Slide 5: 4Q 2009 vs 4Q 2008 Performance
4Q 2009 vs 4Q 2008 Performance 4Q 2009 4Q 2008 Change Revenue (S$m) 46.1 47.2 -2% Gross Profit (S$m) 21.9 20.4 +7% Unitholders’ Distribution (S$m) 11.5 10.3 +12% Distribution Per Unit (S cents) 1.87 1.69 +11% Revenue Per Available Unit 124 133 -7% (S$/day) – serviced residences • Lower revenue mainl
Slide 6: FY 2009 vs FY 2008 Performance
FY 2009 vs FY 2008 Performance FY 2009 FY 2008 Change Revenue (S$m) 175.5 192.4 -9% Gross Profit (S$m) 84.6 95.5 -11% Unitholders’ Distribution (S$m) 45.2 53.7 -16% Distribution Per Unit (S cents) 7.32 8.78 -17% Revenue Per Available Unit 122 145 -16% (S$/day) – serviced residences • Lower revenue a
Slide 7: Distribution Details
Distribution Details Distribution Period 1 January to 30 June 2009 1 July to 31 December 2009 3.55 cents 3.77 cents Distribution Rate per unit per unit Books Closure Date 31 July 2009 29 January 2010 Distribution Payment Date PA I D 28 August 2009 26 February 2010 FY 2009 DPU of 7.32 cents represent
Slide 8: Attractive Trading Yield
Attractive Trading Yield % 6 5.5% 5 4 3 2.50% 2.69% 2 1.32% 1 0.53% 0 Ascott Reit Bank 12-month 5-Year Singapore CPF Ordinary 10-Year FY2009 Yield1 Fixed Deposit Government Account4 Singapore Rate 2 Bond 3 Bond3 1. Based on Ascott Reit’s closing price of S$1.33 per unit as at 20 January 2010 and FY
Slide 9: Property Valuations
Property Valuations • Property value higher by S$10.51 million following latest revaluation by HVS International Pte Ltd compared to June 2009 valuation - Mainly from the higher valuation of serviced residences in Philippines and Japan • NAV per unit as at 31 December 2009 is S$1.34 1. Net of tax an
Slide 10: FY 2009 Portfolio Performance
FY 2009 Portfolio Performance 10
Slide 11: Australia
Australia -11% Somerset Somerset St George’s Gordon 153 Terrace, Perth Heights, 136 S$m Melbourne 10 +14% 7.4 6.5 -5% 5 1.9 1.8 0 Revenue Gross Profit FY 2008 FY 2009 RevPAU S$ Increase in revenue due to the acquisition of Somerset St George’s Terrace, Perth1 Lower RevPAU and Gross Profit due to wea
Slide 12: China
China -26% Ascott Beijing Somerset Somerset Somerset Grand Fortune Xu Hui, Olympic Tower 161 Garden Shanghai Property, S$m -26% Property, Tianjin 60 Beijing 119 47.4 34.9 -40% 40 21.9 20 13.2 0 Revenue Gross Profit RevPAU S$ FY 2008 FY 2009 Lower performance due to higher rates achieved in 2008 for
Slide 13: Indonesia
Indonesia Ascott Jakarta Somerset Country Grand Citra, Woods, Jakarta S$m Jakarta 30 +4% -7% 20.1 21.0 20 +13% 74 69 10 7.1 8.0 0 Revenue Gross Profit RevPAU FY 2008 FY 2009 S$ Increase in revenue and gross profit due to business interruption insurance compensation. Lower RevPAU due to apartment uni
Slide 14: Japan
Japan Somerset Azabu Somerset 18 rental housing -1% East, Tokyo Roppongi, properties in S$m +5% 150 149 Tokyo Tokyo 20 17.1 18.0 +7% 10.3 11.0 10 8.5 8.4 3.5 3.5 0 Revenue* Gross Profit* RevPAU# FY 2008 FY 2009 Serviced residence contribution S$ Improved performance due to appreciation of JPY agains
Slide 15: Philippines
Philippines Ascott Makati Somerset Somerset Millennium, Salcedo +2% +2% Makati Property, S$m Makati 134 137 30 28.3 28.9 20 +4% 11.8 12.3 10 0 Revenue Gross Profit RevPAU S$ FY 2008 FY 2009 Revenue and RevPAU increased as a result of the successful launch of Ascott Makati’s refurbished apartment uni
Slide 16: Singapore
Singapore -33% 249 Somerset Somerset Liang Grand Court Property, Cairnhill, Singapore S$m -27% Singapore 167 40 36.7 30 26.9 -28% 19.7 20 14.1 10 0 Revenue Gross Profit RevPAU FY 2008 FY 2009 S$ Lower performance due to weaker demand and closure of apartment units for refurbishment in 4Q2009. FY2008
Slide 17: Vietnam
Vietnam Somerset Somerset West Somerset Somerset Ho Grand Hanoi Lake, Hanoi Chancellor Chi Minh City -13% Court, Ho Chi S$m +6% Minh City 144 40 36.3 38.4 126 130 35.4 +6% 30 22.8 24.2 20 22.4 10 0 Revenue Gross Profit RevPAU FY 2008 FY 2009 Same Store S$ Better performance mainly due to contributio
Slide 18: Asset Enhancement Initiatives
Asset Enhancement Initiatives 18
Slide 19: Asset Enhancements For Better Yield: Somerset Liang Court
Asset Enhancements For Better Yield Somerset Liang Court, Singapore Refurbishment of the apartment units to be implemented in phases Units To Be Renovated 185 Age of Property 26 years Last Refurbishment 1999 (Year) Renovation Cost S$10.9 million Payback Period 4 to 5 years Capital Value of Asset Enh
Slide 20: Asset Enhancements For Better Yield: Somerset Grand Cairnhill
Asset Enhancements For Better Yield Somerset Grand Cairnhill, Singapore Refurbishment of the apartment units and breakfast area to be implemented in phases Units To Be Renovated 144 Age of Property 20 years Last Refurbishment 1999 (Year) Renovation Cost S$5.5 million Payback Period 4 to 5 years Capi
Slide 21: Asset Enhancements For Better Yield: Somerset Grand Hanoi
Asset Enhancements For Better Yield Somerset Grand Hanoi, Vietnam Refurbishment of the apartment units to be implemented in phases Units To Be Renovated 185 Age of Property 12 years Last Refurbishment 1997 (Year) Renovation Cost US$5.8 million Payback Period 5 years Capital Value of Asset Enhancemen
Slide 22: Portfolio Information
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Slide 23: Length of Stay and Market Segment
Length of Stay and Market Segment Apartment Rental Income Apartment Rental Income By Length of Stay1 By Market Segment1 Family/ Leisure 6% < 1 month 30% > 12 months 38% Relocation Business Trip 36% 47% 1 to 6 months 6 to 12 months Project 19% 13% 11% Average length of stay is 7 months2 1 For the 12
Slide 24: Diverse Tenant Mix
Diverse Tenant Mix Apartment Rental Income By Industry1 Others Healthcare Real estate/ 15% 3% Lodging Industrial 4% 17% Media & Telecomms 5% Financial Institutions 10% Manufacturing 7% IT 8% Govt & NGOs 11% Energy & Consumers Utilities 9% 11% Earnings diversified by industry 1 Apartment rental incom
Slide 25: Geographical Diversification
Geographical Diversification Ascott Reit’s Share of Asset Values As at 31 December 2009 China Singapore 24% 27% Stable Emerging Indonesia Economies Markets 5% 50% 50% Philippines 9% Japan 20% Australia Vietnam 3% 12% Total = S$1.56 billion Note: Emerging markets include China, Indonesia, the Philipp
Slide 26: Capital & Risk Management
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Slide 27: Healthy Balance Sheet
Healthy Balance Sheet • Gearing of 41.2%, well within the 60% gearing limit allowable under MAS property fund guidelines Ascott Ascott Reit Reit Gearing Gearing Profile Profile As As at at 31 31 December December 2009 2009 Debt S$640.8m (41.2%) Ascott Reit’s proportionate share of asset values Equit
Slide 28: Debt Profile
Debt Profile Maturity Profile Currency Profile As at 31 December 2009 As at 31 December 2009 2010* 2012 Singapore Dollar S$95.4 m (15%) Japanese Yen S$167.2 m (26%) S$202.3 m (31%) S$281.6 m (44%) Australian Dollar S$4.2 m (1%) US Dollar 2011 S$152.7 m (24%) S$378.2m (59%) Ascott Reit’s Share of Ban
Slide 29: Interest Rate and Currency Profile
Interest Rate and Currency Profile Interest Rate Profile As at 31 December 2009 Fixed Floating S$475.7 m (74%) S$165.1m (26%) Effective Borrowing Rate of 3.3% Interest Cover Ratio of 3.5x 29
Slide 30: Foreign Exchange Profile
Foreign Exchange Profile Ascott Reit’s Share of Gross Profit Foreign Exchange Movements YTD 31 December 2009 Singapore, China, Percentage of Foreign exchange S$14.1m S$13.2m Ascott Reit’s rate movements Currency Share of Gross from Profit Dec’08 to Dec’09 YTD 31 Dec 2009 Indonesia, S$6.6m SGD 19 - J
Slide 31: Prospects
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Slide 32: Prospects
Prospects We have seen a continued stability in hospitality demand extending from 3Q 2009 into 4Q 2009. We expect improvement in hospitality demand in 2010 in line with the more positive economic sentiments. The extent of the economic recovery is uncertain. The Group remains confident of the longer
Slide 33: World's First and Only Pan-Asian Serviced Residence REIT
World’s First and Only Pan-Asian Serviced Residence REIT Australia S$1.56 billion portfolio value 2 properties with 127 units in Melbourne and Perth 3,644 apartment units in 38 properties China 11 Pan-Asian cities in 7 countries 4 properties with 743 units in Beijing, Shanghai and Tianjin Beijing In
Slide 34: Thank You
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Ascott Residence Trust — FY2009 Earnings Presentation on 6ix