Ytl Hospitality Reit · MYX:YTLREIT

Ytl Hospitality Reit — FY2020 Earnings Presentation

46 slides from Ytl Hospitality Reit's earnings presentation, Jul 30, 2020

  1. Slide 1: Fourth Quarter FY2020 Financial Results

    Fourth Quarter FY2020 Financial Results 30 July 2020

  2. Slide 2: Key Highlights – FY2020

    KEY HIGHLIGHTS – FY2020 • Income available for distribution of FINANCIAL RM61.1 million, -10.7% compared PORTFOLIO to 1H FY2020 HIGHLIGHTS • 2.8373 sen distribution per unit MANAGEMENT (“DPU”) declared for 2H FY2020 pursuant to new semi-annual income distribution policy • Properties in Malaysia and

  3. Slide 3: Financial performance 4Q & 2H FY2020

    1 Financial performance 4Q & 2H FY2020 Pangkor Laut Resort Perak Darul Ridzuan, Malaysia

  4. Slide 4: Financial Performance: 4Q FY2020

    FINANCIAL PERFORMANCE: 4Q FY2020 1 April - 30 June 4Q FY2020 4Q FY2019 Change Total Revenue 69.8 118.7 (41.2%) (1) - Hotel Revenue (Management Contracts) 27.3 78.0 (65.1%) (2) - Lease Rental (Master Leases) 42.5 40.6 + 4.7% Net Property Income (NPI) 44.3 60.3 (26.5%) (1) - Management Contracts 4.6 2

  5. Slide 5: Financial Performance: 2H FY2020

    FINANCIAL PERFORMANCE: 2H FY2020 1 January - 30 June 2H FY2020 2H FY2019 Change Total Revenue 174.6 244.6 (28.6%) (1) - Hotel Revenue (Management Contracts) 90.0 163.5 (45.0%) (2) - Lease Rental (Master Leases) 84.6 81.0 + 4.4% Net Property Income (NPI) 101.4 127.6 (20.5%) (1) - Management Contracts

  6. Slide 6: Statement of Financial Position

    STATEMENT OF FINANCIAL POSITION As at 30 June 2020 As at 30 June 2019 RM ('000) Change (Unaudited) (Audited) Investment properties 2,747,190 2,732,554 + 0.5% (1) Property, plant and equipment 1,750,176 1,946,226 (10.1%) Cash & cash equivalents 145,908 148,972 (2.1%) Other assets 50,262 37,025 + 35.8

  7. Slide 7: DPU Performance

    DPU PERFORMANCE Total DPU Quarterly Breakdown DPU (sen) 10 8.4613 7.9746 7.8938 8.0838 7.8683 7.8711 7.6359 7.3803 6.7115 4Q 6.4855 6.4855 2.0989 Total Distributions* FY2019 FY2020 2.8373 ^ 3Q Cumulative 134.2 114.4 5 1.9116 4Q 35.8 48.4 ^ 3Q 32.6 - 2Q 2Q 33.0 32.7 1.9387 1.9158 1Q 32.8 33.4 * In RM

  8. Slide 8: Revaluation Deficit of RM155 million During 4Q FY2020

    REVALUATION DEFICIT OF RM155 million DURING 4Q FY2020 RM (million) JAPANESE properties RM (million) - Hilton Niseko Village (RM18.2 mil) 559 - The Green Leaf Niseko Village + RM0.4 mil 541 AUSTRALIAN properties 1,845 - Sydney Harbour Marriott (RM109.6 mil) 1,693 - Brisbane Marriott (RM29.3 mil) - Me

  9. Slide 9: NPI for Australia in AUD and RM

    NPI FOR AUSTRALIA IN AUD AND RM NPI in RM impacted by the foreign exchange effects of the weaker AUD relative to RM AUD (million) RM (million) 54.2% 56.6% 20 80 10 40 0 0 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2015 FY2016 F

  10. Slide 10: NPI for Japan in JPY and RM

    NPI FOR JAPAN IN JPY AND RM NPI in RM impacted by the foreign exchange effects of the stronger JPY relative to RM JPY (million) RM (million) 2.9% 400 15 2.1% 10 200 5 0 0 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2015 FY2016 F

  11. Slide 11: Half Yearly Financial Performance

    HALF YEARLY FINANCIAL PERFORMANCE FY2019 FY2020 TOTALrevenue NETproperty income RM (million) RM (million) 300 300 28.6% 246.3 251.8 244.6 200 200 174.6 20.5% 133.8 127.6 125.6 101.4 100 100 0 0 1H 2H 1H 2H 11

  12. Slide 12: 2H FY2020 Financial Performance by Country

    2H FY2020 FINANCIAL PERFORMANCE BY COUNTRY 2H FY2019 2H FY2020 TOTALrevenue NETproperty income RM (million) RM (million) 200 200 45.0% 163.5 100 4.6% 90.0 100 4.7% 70.1 67.0 63.4 66.4 56.6% 52.0 3.5% 2.1% 22.6 14.0 14.5 12.2 12.5 0 0 Malaysia Australia Japan Malaysia Australia Japan 12

  13. Slide 13: Unit Price Performance

    UNIT PRICE PERFORMANCE YTL Hospitality REIT’s YTL Hospitality REIT’s Unit Price Movement & Relative Performance to FBMKLCI Unit Price Movement & Relative Performance to REIT Index (1 January 2012 to 30 June 2020) (1 October 2017 to 30 June 2020) RM % RM % 1.40 60 Unit Price Unit Price 1.40 30 (left

  14. Slide 14: Financial performance: FY2020

    Financial performance: FY2020 2 JW Marriott Kuala Lumpur, Malaysia

  15. Slide 15: Financial Performance: FY2020

    FINANCIAL PERFORMANCE: FY2020 1 July - 30 June FY2020 FY2019 Change Tota l R evenue 426.4 490.9 (13.1%) (1) - Hotel Revenue (Management Contracts) 257.6 331.5 (22.3%) (2) - Lease Rental (Master Leases) 168.9 159.4 + 5.9% Net Pr oper ty Income (NPI) 235.2 253.3 (7.1%) (1) - Management Contracts 78.3

  16. Slide 16: Yearly Financial Performance

    YEARLY FINANCIAL PERFORMANCE TOTALrevenue NETproperty income RM (million) RM (million) 600 13.1% 600 501.0 490.9 449.7 425.1 417.7 426.3 426.4 400 400 7.1% 292.0 248.8 253.3 235.2 202.9 201.5 198.9 209.6 200 200 157.0 109.8 80.9 87.1 75.5 30.1 28.3 0 0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY201

  17. Slide 17: Financial Performance by Country

    FINANCIAL PERFORMANCE BY COUNTRY FY2019 FY2020 TOTALrevenue NETproperty income RM (million) RM (million) 400 400 22.3% 331.5 257.6 200 4.5% 200 4.5% 134.2 140.2 25.7% 127.1 132.9 105.3 78.3 13.6% 15.4% 25.2 28.7 20.8 24.1 0 0 Malaysia Australia Japan Malaysia Australia Japan 17

  18. Slide 18: Capital management

    3 Capital management Tanjong Jara Resort, Terengganu, Malaysia

  19. Slide 19: Debt Maturity Profile

    DEBT^ MATURITY PROFILE Borrowings in AUD * Borrowings in RM Borrowings in JPY # RM (million) 1200 385 800 350 400 752 * 265 * # 215 75 0 - - FY2021 FY2022 FY2023 FY2024 FY2025 Notes: ^ Excluding the effects of capitalised transaction costs. * RM equivalent based on the exchange rate of A$1.00: RM2.9

  20. Slide 20: Debt Profile as at 30 June 2020

    DEBT^ PROFILE AS AT 30 JUNE 2020 CURRENCY INTEREST RATE α β 30 June 2020 31 March 2020 Change Borrowings^ (RM'000) 2,041,351 1,941,499 + 5.1% Total Asset Value (RM'000) 4,693,536 4,663,575 + 0.6% Gearing (%) 43.5% 41.6% + 1.9 pp Average Interest Rates (%) * - Borrowings in Ringgit Malaysia 4.7% 4.9%

  21. Slide 21: Debt Headroom of ~RM603 million for Acquisitions

    DEBT HEADROOM OF ~RM603 million FOR ACQUISITIONS RM (million) 6,000 5,297 603 4,000 2,644 Gearing limit = 603 4,694 2,000 50%* 2,041 Gearing = 43.5% (As at 30 June 2020) - Notes: Total Borrowings^ Total Assets ^ Excluding the effects of capitalised transaction costs. * Leverage limit reduced to 50%

  22. Slide 22: Asset management

    4 Asset management Cameron Highlands Resort, Malaysia

  23. Slide 23: Luxury Hotels & Serviced Residences in 3 Countries

    LUXURY HOTELS & SERVICED RESIDENCES IN 3 COUNTRIES Malaysia (Northern) ASSET breakdown(by Country)(1)  AC Hotel Penang Bukit Jambul Japan  Pangkor Laut Resort  Hilton Niseko Village  Cameron Highlands Resort  The Green Leaf Niseko Village Malaysia (Eastern)  Tanjong Jara Resort  AC Hotel Kuan

  24. Slide 24: Portfolio Valuation

    PORTFOLIO VALUATION No. of Year Purchase Price Annual Lease Rental (1 ) Valuation (million) Changes since Property Rooms Acquired (million) (RM million) FY2019 FY2020 (2 ) acquisition Malaysia RM RM RM (3) JW Marriott Hotel Kuala Lumpur 578 2005 331.0 29.70 519.0 523.0 +58.0% The Ritz-Carlton, Kuala

  25. Slide 25: Portfolio Occupancy

    PORTFOLIO OCCUPANCY FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Malaysia Under Master Leases Japan Under Master Leases Australia 83.1% (1) 84.2% 84.4% 86.4% 86.9% 87.8% 84.9% 73.1%(2) Notes: (1) For 1 July 2012 to 30 June 2013 which includes certain pre-acquisition period as the properti

  26. Slide 26: Master Leases Expiry Profile

    MASTER LEASES EXPIRY PROFILE NETproperty income NETproperty income (% of total *) Master leases (% of total *) 50 43 40 30 20 17 14 10 9 7 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2049 Note: * For 4Q FY2020. 26

  27. Slide 27: Australia Annual Hotel Performance (1 of 2)

    AUSTRALIA ANNUAL HOTEL PERFORMANCE (1 OF 2) REVENUE per available room AUD (RevPAR) 300 234 22.2% 230 213 219 219 218 200 179 100 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 27

  28. Slide 28: Australia Annual Hotel Performance (2 of 2)

    AUSTRALIA ANNUAL HOTEL PERFORMANCE (2 OF 2) Average occupancy Average daily rate (ADR) % AUD 100 86.4 86.9 87.8 11.8pp 9.7% 84.2 84.4 84.9 300 266 271 73.1 253 259 253 251 245 200 50 100 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 28

  29. Slide 29: Appendices

    5 Appendices Hilton Niseko Village Hokkaido, Japan

  30. Slide 30: JW Marriott Hotel Kuala Lumpur

    JW MARRIOTT HOTEL KUALA LUMPUR No. 183, Jalan Bukit Bintang, 55100 Kuala Address Lumpur A 5-star hotel with 578 rooms located on part of an 8-level podium block and entire 24- level tower block of Starhill Gallery together Description with car park bays located partially at basement 1 and 4 and the

  31. Slide 31: The Majestic Hotel Kuala Lumpur

    THE MAJESTIC HOTEL KUALA LUMPUR No. 5, Jalan Sultan Hishamuddin, 50000 Kuala Address Lumpur A 5-star hotel comprising Majestic Wing (original historic hotel building) with 47 luxurious suites, Tower Wing with 253 guestrooms and suites, Majestic Ballroom with seating capacity of 1,200 for banquet or

  32. Slide 32: The Ritz-Carlton, Kuala Lumpur – Suite Wing

    THE RITZ-CARLTON, KUALA LUMPUR – SUITE WING Address No. 168, Jalan Imbi, 55100 Kuala Lumpur Parcel 1: 60 units of hotel suites, 4 levels of commercial podium, 1 level of facilities deck and 2 levels of basement car park Description Parcel 2: 50 units of hotel suites, 4 units of penthouses and 1 leve

  33. Slide 33: The Ritz-Carlton, Kuala Lumpur – Hotel Wing

    THE RITZ-CARLTON, KUALA LUMPUR – HOTEL WING Address No. 168, Jalan Imbi, 55100 Kuala Lumpur 22-storey 5-star hotel building comprising Description 251 rooms with 4-storey basement car park Tenure Freehold Master lease expiry 14 November 2026 Master lease remaining (1) 6 years Annual rental (2) RM21.

  34. Slide 34: AC Hotel Kuala Lumpur Titiwangsa

    AC HOTEL KUALA LUMPUR TITIWANGSA No. 9, Jalan Lumut, Off Jalan Ipoh, 50400 Address Kuala Lumpur 17-storey hotel building with 364 rooms and Description 2-storey basement car park Tenure Freehold Master lease expiry 14 November 2026 Master lease remaining (1) 6 years Annual rental (2) RM8.61 million

  35. Slide 35: AC Hotel Penang Bukit Jambul

    AC HOTEL PENANG BUKIT JAMBUL No. 213, Jalan Bukit Gambier, Bukit Jambul, Address 11950 Pulau Pinang 17-storey Hotel Wing with 238 hotel rooms Description and 26-storey Suite Wing with 189 hotel suites with an annexed 3-storey podium 99-year leasehold expiring on 27 October Tenure 2094 Master lease e

  36. Slide 36: AC Hotel Kuantan City Centre

    AC HOTEL KUANTAN CITY CENTRE Address Jalan Teluk Sisek, 25000 Kuantan, Pahang Description 8-storey hotel building with 215 rooms Tenure 99-year leasehold expiring on 11 July 2092 Master lease expiry 14 November 2026 Master lease remaining (1) 6 years Annual rental (2) RM6.30 million No. of rooms 215

  37. Slide 37: Pangkor Laut Resort

    PANGKOR LAUT RESORT Pangkor Laut Island, 32200 Lumut, Perak Address Darul Ridzuan 36 units of Garden Villas, 52 units of Hill Description Villas, 8 units of Beach Villas and 1 unit of Pavarotti Suite 99-year registered lease expiring on 21 May Tenure 2095 Master lease expiry 14 November 2026 Master

  38. Slide 38: Tanjong Jara Resort

    TANJONG JARA RESORT Batu 8, Off Jalan Dungun, 23000 Dungun, Address Terengganu Darul Iman Description Small luxury boutique resort with 100 rooms 60-year leasehold expiring on 4 December Tenure 2067 Master lease expiry 14 November 2026 Master lease remaining (1) 6 years Annual rental (2) RM7.35 mill

  39. Slide 39: Cameron Highlands Resort

    CAMERON HIGHLANDS RESORT By the Golf Course, 39000 Tanah Rata, Address Cameron Highlands, Pahang Darul Makmur 3-storey luxury resort with a 2-storey spa Description village block with 56 rooms and suites and a single storey building 99-year leasehold expiring on 9 December Tenure 2108 Master lease e

  40. Slide 40: Hilton Niseko Village

    HILTON NISEKO VILLAGE Address Aza-Soga, Niseko-cho, Abuta-gun, Hokkaido 16-storey hotel building with 1-storey of Description basement comprising 506 rooms Tenure Freehold Master lease expiry 21 December 2026 Master lease remaining (1) 6 years Annual rental (2) RM16.32 million No. of rooms 506 Acqui

  41. Slide 41: The Green Leaf Niseko Village

    THE GREEN LEAF NISEKO VILLAGE Aza-Higashiyama, Niseko-cho, Abuta-gun, Address Hokkaido 5-storey hotel building with 1-storey of Description basement comprising 200 rooms Tenure Freehold Master lease expiry 25 September 2048 Master lease remaining (1) 28 years Annual rental (2,4) JPY315 million (RM12

  42. Slide 42: Sydney Harbour Marriott

    SYDNEY HARBOUR MARRIOTT Address 30 Pitt Street, Sydney, New South Wales 33-storey hotel building with central atrium Description comprising 595 rooms including 3 levels of basement with car parking bays Tenure Freehold No. of rooms 595 Acquisition date 29 November 2012 Valuation (1, 2) AUD445 millio

  43. Slide 43: Brisbane Marriott

    BRISBANE MARRIOTT Address 515 Queen Street, Brisbane, Queensland 28-storey hotel building comprising 267 Description rooms with 3 levels of basement with car parking bays Tenure Freehold No. of rooms 267 Acquisition date 29 November 2012 Valuation (1, 2) AUD80 million (RM235.64 million) Notes: 1. As

  44. Slide 44: Melbourne Marriott

    MELBOURNE MARRIOTT Corner Exhibition and Lonsdale Streets, Address Melbourne, Victoria 16-storey hotel building comprising 186 Description rooms with 5 split levels of car park Tenure Freehold No. of rooms 186 Acquisition date 29 November 2012 Valuation (1, 2) AUD72 million (RM212.08 million) Notes:

  45. Slide 45: Disclaimer

    DISCLAIMER This presentation shall be read in conjunction with YTL Hospitality REIT’s interim financial report for the quarter ended 30 June 2020, a copy of which is available on www.bursamalaysia.com and www.ytlhospitalityreit.com. This presentation is for information purposes only and does not con

  46. Slide 46: Pintar Projek Sdn Bhd

    PINTAR PROJEK SDN BHD 199401028328 (314009-W) Manager of YTL Hospitality REIT 33rd Floor Menara YTL 205 Jalan Bukit Bintang 55100 Kuala Lumpur Malaysia Tel: 603 2038 0888 Fax: 603 2038 0388 Email: ir@ytlhospitalityreit.com www.ytlhospitalityreit.com

YTL Hospitality REIT — FY2020 Earnings Presentation on 6ix