Cdl Hospitality Trusts · SGX:J85
Cdl Hospitality Trusts — FY2010 Earnings Presentation
54 slides from Cdl Hospitality Trusts's earnings presentation, Jan 26, 2011
Slide 1: Presentation of 4Q & FY 2010 Results
Presentation of 4Q & FY 2010 Results 26 January 2011
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 of CDL Hospitality Business Trust (the “HBT Trustee-M
Slide 3: Table Of Contents
Table Of Contents Highlights Performance of CDL Hospitality Trusts Healthy Financial Position Outlook Management Strategy Annexe ♦ Background and Structure of CDL Hospitality Trusts ♦ Information on CDL Hospitality Trusts Properties 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary 1
Executive Summary 1 1 FY2010 has been a fruitful year as our Unitholders enjoyed the benefits of: 9 a 33% growth in revenue (1) which was boosted by the strong performance of the Singapore Hotels as RevPAR rose 28.0% y-o-y 9 an additional boost of S$15.0 million in gross revenue from the acquisition
Slide 6: Executive Summary 2
Executive Summary 2 Sustained growth momentum in visitor arrivals to Singapore which saw 12 2 consecutive months of record-high visitor arrivals since December 2009 Structural boost in accommodation demand resulted in CDL-HT’s 3 Singapore hotels reporting 3 consecutive quarters of record-high occupa
Slide 7: Executive Summary 3
Executive Summary 3 4 Income available for distribution increased by 29.3% for 4Q 2010 and 32.7% for FY 2010 CDL-HT Financial Highlights (S$’000) 4Q ’10 4Q ’09 Growth FY 10 FY 09 Growth Gross Revenue (1) 33,330 26,148 27.5 % 122,282 91,757 33.3 % Net Property Income (1) 31,492 24,734 27.3 % 115,068
Slide 8: Details Of Distribution
Details Of Distribution Distribution for the period 1 Jul 2010 to 31 Dec 2010 (after deducting income retained for working capital) 5.31 ¢ per unit comprising: 4.71 ¢ of taxable income and 0.6 tax exempt income Closure of books: 5 pm on 7 February 2011 February 2011 Mon Tue Wed Thu Fri Sat Sun 1 2 3
Slide 9: Performance Of CDL Hospitality Trusts
Performance Of CDL Hospitality Trusts 9
Slide 10: Year-On-Year Hotel Performance: 4Q '09 Vs 4Q '10
Year-On-Year Hotel Performance: 4Q ’09 Vs 4Q ’10 CDL-HT Singapore Hotels S$ ARR: 4Q '09 v 4Q '10 S$ RevPAR: 4Q '09 v 4Q '10 250 +19.0% 215 181 250 200 150 +20.6% 100 194 200 50 161 0 4Q '09 4Q '10 150 Occ: 4Q '09 v 4Q '10 95% +1.1 pp or 100 +1.2% 90.0% 90% 88.9% 50 85% 80% 0 4Q '09 4Q '10 4Q '09 4Q
Slide 11: Gross Revenue, NPI and Income Available for Distribution Per Unit: 4Q '09 Vs 4Q '10
Gross Revenue, NPI and Income Available for Distribution Per Unit: 4Q ’09 Vs 4Q ’10 CDL-HT Gross Revenue (1) S$’000 Income Available For 40,000 +27.5% Distribution Per Unit (2) 33,330 S$ cents 30,000 26,148 3.50 +13.2% 20,000 10,000 3.00 2.92 0 4Q '09 4Q '10 2.58 (1) S$’000 Net Property Income 2.50
Slide 12: Year-On-Year Hotel Performance: FY 09 Vs FY 10
Year-On-Year Hotel Performance: FY 09 Vs FY 10 CDL-HT Singapore Hotels ARR: FY 09 v FY 10 S$ S$ RevPAR: FY 09 v FY 10 +17.5% 250 215 183 225 200 +28.0% 150 200 191 100 175 50 149 0 150 FY 09 FY 10 125 Occ: FY 09 v FY 10 100 95% +7.2 pp or +8.8% 88.6% 90% 75 85% 81.4% 50 80% 75% 25 70% 65% 0 FY 09 FY
Slide 13: Australia Hotels FY2010 Update
Australia Hotels FY2010 Update The Australia Hotels finished the year 1 strongly, with FY2010 performance broadly in line with expectations. CDL-HT’s Brisbane-based properties (1) 2 are not physically affected by the recent flood events in Jan 2011, and Novotel Brisbane hotel are still fully operati
Slide 14: Gross Revenue, NPI and Income Available for Distribution Per Unit: FY 09 Vs FY 10
Gross Revenue, NPI and Income Available for Distribution Per Unit: FY 09 Vs FY 10 CDL-HT Gross Revenue (1) S$’000 Income Available For +33.3% 122,282 Distribution Per Unit (2) S$ cents 120,000 91,757 14.00 +23.5% 80,000 12.00 11.18 40,000 10.00 9.05 0 FY 09 FY 10 8.00 S$’000 Net Property Income (1)
Slide 15: Healthy Financial Position
Healthy Financial Position 15
Slide 16: Healthy Balance Sheet With Ample Debt Headroom
Healthy Balance Sheet With Ample Debt Headroom (1) S$ Debt Value (S$ M) 600 Debt / Assets Ratio 500 379 383 400 25% 300 200 20% 100 0 15% 30 Sep '10 31 Dec '10 S$ 21.1% 2,500 Total Assets (S$ M) 10% 20.4% 2,000 1,800 1,870 5% 1,500 1,000 0% 500 30 Sep '10 31 Dec '10 0 30 Sep '10 31 Dec '10 (1) Debt
Slide 17: Debt Facility Details
Debt Facility Details Unsecured Debt Terms (1) Credit Metrics Revolving Credit Facility Fitch Issuer Default Rating: S$200M multi-currency committed revolving credit BBB- facility from 2 banks Tenure: 3-year term Interest Cover: Medium Term Notes 8.2 x (2) S$260M medium term notes issued u
Slide 18: Outlook
CDL HOSPITALITY TRUSTS Outlook 18
Slide 19: Sustained Momentum of Record-High Monthly Visitor Arrivals to Singapore
Sustained Momentum of Record-High Monthly Visitor Arrivals to Singapore for last 13 Months Monthly Visitor Arrivals ('000) Record #13 Record #8 1,200 1127 1095 Record #9 Record #11 Record #12 1,100 Record #1 Record #4 Record #5 Record #6 Record #7 Record #10 Record #2 997 1,000 971 979 964 954 971 9
Slide 20: Limited New Supply of Rooms in 2011
Limited New Supply of Rooms in 2011 Current and Expected Hotel Room Supply in Singapore No. of Hotel Rooms 55,000 2011 to 2013 CAGR = 4.7% 50,000 45,178 2,137 45,000 2,406 1,287 40,000 39,348 35,000 30,000 25,000 2010 2011 2012 2013 Total 2013 Source: Singapore Tourism Board, Horwath HTL (as at Jan
Slide 21: Potential Supply of Hotel Rooms Until 2013
Potential Supply of Hotel Rooms Until 2013 Expected Hotel Room Supply in Singapore Name of Hotel No. of Horwath Location Expected Name of Hotel No. of Horwath Location Expected Rms Rating Opening Rms Rating Opening Innotel 70 Mid-Tier City Centre 2011 W Hotel Sentosa Cove 240 Luxury / Upscale Sentos
Slide 22: STB Expects Strong Growth in Visitor Arrivals
STB Expects Strong Growth in Visitor Arrivals Actual & Forecast Visitor Arrivals in Singapore Thousands Expected 5-year 18,000 CAGR = 7.9% 17,000 16,000 Expected 5-year FY 2010 - 11.6 million 14,000 CAGR = 5.4% visitors to Singapore, a 11,639 20.2% increase from 12,000 2009 5-year CAGR = 3.1% 10,2
Slide 23: Surge in Arrivals from Neighbouring Countries
Surge in Arrivals from Neighbouring Countries Breakdown of Visitor Arrivals to Singapore Growth in Top 10 Visitor Arrival Countries for Singapore FY 2010 FY 2010 vs FY 2009 #1 Indonesia, 2,305,149 Others, 3,033,983 26% 20% 32.1% Indonesia 25.0% P R China #2 35.7% Malaysia P R China, 6.1% Australia 1
Slide 24: A Transformed Marina Bay – 24-Hour Entertainment Lifestyle Destination
A Transformed Marina Bay – 24-Hour Entertainment Lifestyle Destination Singapore Flyer Marina Bay Sands International Singapore River Cruise Terminal Rejuvenation Opened 2008, S$240m Opened 2010, over S$6b Opening 2011, S$240m On-going entertainment developments @ Clark Quay, Robertson Quay etc Mari
Slide 25: Growth Momentum Sustained by Phased Introduction of More Attractions
Growth Momentum Sustained by Phased Introduction of More Attractions… Marina Bay Sands Resorts World Sentosa Sentosa Island Proposed 30ha Imbiah Garden Link, 800m landscaped walkway at Palawan Beach & more new attractions add to its existing ~30 attractions Nightclubs Pangaea & Avalon / Lion King mu
Slide 26: Structural Boost in Demand for Accommodations
Structural Boost in Demand for Accommodations ● CDL-HT Singapore hotels achieved highest ever quarterly occupancies of between 89% - 92% from 2Q to 4Q 2010 (since IPO in 2006) ● Poised for opportunities to yield up in 2011 CDL-HT Singapore Hotels Quarterly Occupancy Comparison Occupancy Record #1 Re
Slide 27: Structural Boost to Continue in 2011
Structural Boost to Continue in 2011 QoQ ChangeQoQ of Occupancy Rate, Change of Occ, ARRARR & RevPAR & RevPAR for CDL-HT for CDL-HT Singapore Singapore Hotels Hotels Occ ARR RevPAR 300 100.0% 255 250 247 250 220 220 95.0% 216 222 207 217 215 ARR, RevPAR (S$) 197 196 208 214 201 200 179 191 178 176 1
Slide 28: Management Strategy
CDL HOSPITALITY T RUSTS Management Strategy 28
Slide 29: Management Strategy
Management Strategy Acquiring for Growth Nurturing for Growth Pursue yield accretive, quality assets with Capitalise on revenue management investment rigor and discipline opportunities to improve room yield Tap on potential pipeline from M&C / CDL Identify & implement asset enhancement Tap
Slide 30: Asset Enhancement Initiatives
Asset Enhancement Initiatives Grand Copthorne Waterfront Hotel Novotel Clarke Quay Orchard Hotel Completed soft refurbishment of 250 rooms in Upgrading of 401 guest rooms & Club Lounge in Upgrading of 331 guest rooms, Club Lounge & 2009 and 177 rooms in Dec 10 & Jan 11 2011 common area in 2011
Slide 31: CDL-HT Target Markets
CDL-HT Target Markets Specific Countries of Interest Singapore ▪ Australia ▪ China ▪ Hong Kong ▪ India ▪ Indonesia ▪ Japan ▪ Malaysia ▪ Maldives ▪ Philippines ▪ Thailand ▪ Vietnam ▪ UAE ▪ Taiwan Major cities across Asia continue to report positive RevPAR growth YTD Nov 2010 Japan Business and le
Slide 32: Background and Structure of CDL Hospitality Trusts
Background and Structure of CDL Hospitality Trusts 32
Slide 33: Background to CDL-HT
Background to CDL-HT Background Post IPO Performance • IPO on 19 July 2006 $3.00 High (10 Jul ’07) Unit price increase = S$2.66 31 Dec'07 IPO to 24 Jan 2011 = +153.0% • Listed on SGX Mainboard Announcement of Novotel Clarke = S$2.35 $2.50 Quay Acquisition Announcement of Private = S$2.01 Placement =
Slide 34: CDL-HT Structure
CDL-HT Structure Sponsor Investors ≈34.916% Holdings of Stapled Securities ≈65.084% as at 31 Dec 2010 as at 31 Dec 2010 H-REIT Distributions HBT Management services Management Stapling Deed services M&C REIT M&C Business Trust Management Limited H-REIT HBT(1) and acts on behalf Management Limited (H
Slide 35: Blue Chip Sponsor and Parentage
Blue Chip Sponsor and Parentage Millennium & Copthorne Hotels plc City Developments Limited Listed on the London Stock Exchange with market One of the largest property developers in Singapore capitalization of ~ £1.7 billion (1) with a market capitalization of ~S$10.7 billion (1) Debt to assets rati
Slide 36: Summary of Leases & Lease Structures
Summary of Leases & Lease Structures Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne Singapore Properties Singapore IPO King’s Hotel: Gross Rental Income Contribution Portfolio FY 2010 20% of Hotel's revenue + 20% of Hotel’s gross operating profit subject to a Fixed Rent floo
Slide 37: CDL-HT Asset Portfolio – Singapore
CDL-HT Asset Portfolio – Singapore Property Orchard Hotel Grand Copthorne M Hotel Copthorne Novotel Orchard Hotel Singapore Waterfront Hotel King’s Hotel Clarke Quay Shopping Arcade Portfolio Number of Rooms 653 574 413 310 401 N/A 2,351 Valuation at 31 S$429 M S$322 M S$229 M S$125 M S$276 M S$54.3
Slide 38: CDL-HT Asset Portfolio – Overseas
CDL-HT Asset Portfolio – Overseas Rendezvous Novotel Mercure Ibis Mercure Ibis Perth Australian Grand Total Property Hotel Auckland Brisbane Brisbane Brisbane Perth Portfolio Number of Rooms 452 296 194 218 239 192 1,139 1,591 Valuation at 31 NZ$100.4M A$ 68.8M A$ 57.7M A$ 41.4M A$24.2M A$ 192.1M (S
Slide 39: Breakdown of Gross Revenue by Property 4Q '10 Vs 4Q '09
Breakdown of Gross Revenue by Property 4Q ’10 Vs 4Q ’09 Gross Revenue from H-REIT Properties S$ M 40 + 27.5% % Change from 4Q ’09 S$33.3M Key: 35 Australia Mercure Hotels Perth N.M. 13% 4.4 30 S$26.1M Novotel Clarke Quay + 0.2% 17% 5.7 25 22% 5.7 Rendezvous Hotel Auckland - 2.8% 7% 2.2 20 4% 1.3 9%
Slide 40: Breakdown of Gross Revenue by Property FY 10 Vs FY 09
Breakdown of Gross Revenue by Property FY 10 Vs FY 09 Gross Revenue from H-REIT Properties S$ M 140 S$122.3M % Change from FY 09 + 33.3% Key: 120 11% 15.0 Australia N.M. Mercure Hotels Perth S$91.8M 17% 100 20.6 + 6.3% Novotel Clarke Quay 7% 80 21% 19.4 8.6 Rendezvous Hotel Auckland + 3.0% 4% 4.7 9%
Slide 41: Increase in CDL-HT Total Property Value
Increase in CDL-HT Total Property Value Valuation of H-REIT Properties S$ M Key: 2,000 -9.1% +19.0% Australia Hotel Portfolio +47.8% +1.4% 1,787.1M 1,800 1,628.8M Novotel Clarke Quay 1,501.6M 14.1% 253 1,600 1,481.2M Rendezvous Hotel Auckland 16.9% . 275 1,400 +30.2% 15.4% 276 18.0% 266 17.8% 267 Or
Slide 42: Information On CDL Hospitality Trusts Properties
Information On CDL Hospitality Trusts Properties 42
Slide 43: Hotels in Strategic Locations
Hotels in Strategic Locations Singapore Hotels New Zealand Hotel Orchard Hotel Grand Copthorne Novotel M Hotel Copthorne King’s Rendezvous & Shopping Clarke Quay Arcade Waterfront Hotel Hotel Hotel Auckland H ORCHARD ROAD H H H SINGAPORE RIVER H INTEGRATED RESORT SITE CENTRAL H BUSINESS DISTRICT BUS
Slide 44: 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 44
Slide 45: Orchard Hotel, Singapore
Orchard Hotel, Singapore Significant Highlights 653 rooms Located in Orchard Road Large pillar-less ballrooms with extensive conference facilities Caters to both corporate and leisure segments Accolades Hall of Fame Award by Singapore Tatler’s - Best Restaurant 2010 – Hua Ting Restaurant
Slide 46: Grand Copthorne Waterfront, Singapore
Grand Copthorne Waterfront, Singapore Significant Highlights 574 rooms Located between CBD and Orchard Road Close to CBD and IRs One of the largest conference facilities in Singapore Well positioned for the MICE market Accolades 2009 Hospitality Asia Platinum Awards by World Asia Publish
Slide 47: M Hotel, Singapore
M Hotel, Singapore Significant Highlights 413 rooms Located in the heart of the financial district Close to CBD and IRs Completed refurbishment in 2003 Strong following of business travellers Accolades ASEAN Green Hotel Award 2010 Hotel Security Award 2010 by Singapore Hotel Associatio
Slide 48: Copthorne King's Hotel, Singapore
Copthorne King’s Hotel, Singapore Significant Highlights Boutique-style business hotel with 310 rooms Located within close proximity to CBD, convention / exhibition belt and Orchard Road Completed refurbishment in 2004 Strong corporate segment focus and specialty events hotel host Accolades
Slide 49: Orchard Hotel Shopping Arcade, Singapore
Orchard Hotel Shopping Arcade, Singapore Net Lettable Area 5,984.4 sq m CBRE’s valuation S$54.3M Valuation psm (psf) S$9,074 psm (S$843 psf) % of total valuation ~3.6% Leasehold Interest 75 years from Listing Date 49
Slide 50: Rendezvous Hotel Auckland, New Zealand
Rendezvous Hotel Auckland, New Zealand Significant Highlights 452 rooms – largest hotel in Auckland by rooms Freehold Located in the central business district and next to a major conference centre Accolades Green Globe accreditation 2009 Restaurant award for Pacific Restaurant Category Win
Slide 51: Novotel Clarke Quay, Singapore
Novotel Clarke Quay, Singapore Significant Highlights Prime superior hotel with 401 rooms Leasehold Located in immediate proximity to Clarke Quay, Robertson Quay and Boat Quay: Singapore’s premier entertainment hub Concluded a S$18.8 million comprehensive refurbishment program to guestrooms,
Slide 52: Novotel, Mercure & Ibis Hotels, Brisbane
Novotel, Mercure & Ibis Hotels, Brisbane Novotel Hotel Novotel Hotel Significant Highlights Novotel Hotel Brisbane 4.5 star accommodation with 296 modern, well-appointed rooms and suites Freehold Located next to Central Station and the CBD, Queen Street Mall and the Riverside boardwalk Compr
Slide 53: Mercure & Ibis Hotels, Perth
Mercure & Ibis Hotels, Perth Mercure Hotel Mercure Hotel Significant Highlights Mercure Hotel Perth 4.0 star accommodation with 239 rooms and suites Freehold Offers six meeting rooms available for up to 350 delegates Situated in Perth’s CBD and within walking distance to the Swan River, shop
Slide 54: Thank You
CDL HOSPITALITY TRUSTS THANK YOU 54
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