Cdl Hospitality Trusts · SGX:J85

Cdl Hospitality Trusts — FY2012 Earnings Presentation

56 slides from Cdl Hospitality Trusts's earnings presentation, Jan 29, 2013

  1. Slide 1: Presentation of 4Q & FY 2012 Results

    Presentation of 4Q & FY 2012 Results 29 January 2013

  2. 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 HBT Trust

  3. Slide 3: Table of Contents

    Table of Contents  Highlights 4  Performance of CDL Hospitality Trusts 10  Healthy Financial Position 19  Outlook 23  Management Strategy 29  Annexe 33  Background and Structure of CDL Hospitality Trusts 33  Information on CDL Hospitality Trusts Properties 43 3

  4. Slide 4: Highlights

    CDL HOSPITALITY TRUSTS Highlights

  5. Slide 5: Executive Summary: Financial Highlights (4Q 2012)

    Executive Summary 1 Financial Highlights (4Q 2012)  Gross revenue for 4Q 2012 grew 1.4% year-on-year (“y-o-y”) to S$38.3 million, mainly due to:  A more challenging global economic environment where travellers remained cautious about travel expenditure  Fixed rent contribution from the Australia

  6. Slide 6: Executive Summary: Financial Highlights (FY 2012)

    Executive Summary 2 Financial Highlights (FY 2012)  Gross revenue recorded 6.0% increase y-o-y for FY 2012  FY 2012 income available for distribution per Stapled Security of 12.57 Singapore cents (1)  Up p 5.3% yy-o-yy (excluding ( g one-off p property p y tax refund of S$3.3 $ million received i

  7. Slide 7: Executive Summary: Singapore and Australia Portfolio

    Executive Summary 3 Singapore Portfolio  CDLHT Singapore Hotels (1) achieved:  Record high full year RevPAR of S$211 in FY 2012  Highest g 4Q RevPAR of S$205 in 4Q 2012 ((on p par with that of 4Q 2011)) CDLHT Singapore Hotels (1) 4Q ’12 4Q ’11 Change FY ’12 FY ’11 Change Occupancy 89.4% 88.6% +0.

  8. Slide 8: Executive Summary: Acquisition and Gearing

    Executive Summary 4 Acquisition  The proposed acquisition of Angsana Velavaru Maldives with a pro forma annualised net property income yield of 9.6% (1) (based on the nine months ended 30 September 2012), is expected to be completed around the end of January 2013  Post completion completion, the a

  9. Slide 9: Details Of Distribution

    Details Of Distribution  Distribution for the period 1 Jul 2012 to 31 Dec 2012 (after deducting income retained for working capital) it l)  5.62 S¢ per unit comprising: 5.23 S¢ of taxable income + 0.39 S¢ tax exempt income February 2013 Mon Tue Wed Thu Fri Sat Sun  Closure of books: 1 2 3 5 pm on

  10. Slide 10: Performance of CDL Hospitality Trusts

    Performance of CDL Hospitality Trusts 10

  11. Slide 11: Singapore Hotels Y-o-Y Performance: 4Q '11 Vs 4Q '12

    Singapore Hotels Y-o-Y Performance: 4Q ’11 Vs 4Q ’12 Average Room Rate (ARR) (1) Revenue Per Available Room (RevPAR) (1) S$ - 1.3% S$ 250 232 229 225 225 0.0% 200 175 205 205 150 200 4Q '11 4Q '12 Occupancy (1) + 0.8 pp 100% 175 88.6% 89.4% 90% 80% 70% 150 4Q '11 4Q '12 4Q '11 4Q '12 (1) Singapore H

  12. Slide 12: CDLHT Singapore Hotels Historical Performance

    CDLHT Singapore Hotels Historical Performance CDLHT Singapore Hotels Quarterly Occupancy, ARR & RevPAR (1) S$ 100% 300 255 247 245 236 232 241 242 236 90% 224 228 232 229 250 216 220 217 215 201 207 197 196 80% 179 222 178 176 181 200 208 210 211 205 213 217 209 205 205 191 195 199 194 195 188 70% 1

  13. Slide 13: Singapore Hotels Y-o-Y Performance: FY '11 Vs FY '12

    Singapore Hotels Y-o-Y Performance: FY ’11 Vs FY ’12 Average Room Rate (ARR) (1) Revenue Per Available Room (RevPAR) (1) S$ + 2.2% S$ 250 232 237 225 225 + 3.3% 200 211 175 204 150 200 FY '11 FY '12 Occupancy (1) + 1.1 pp 100% 175 87.9% 89.0% 90% 80% 70% 150 FY '11 FY '12 FY '11 FY '12 (1) Singapore

  14. Slide 14: Record High Full Year RevPAR

    Record High Full Year RevPAR  CDLHT Singapore Hotels achieved the highest full year RevPAR (1) since inception of CDLHT CDLHT Singapore Hotels Annual RevPAR Comparison (1) 240 Record high 220 211 207 204 200 191 180 (2) 172 160 149 140 120 2007 2008 2009 2010 2011 2012 (1) Singapore Hotels comprise

  15. Slide 15: CDLHT Y-o-Y Performance: 4Q '11 Vs 4Q '12

    CDLHT Y-o-Y Performance: 4Q ’11 Vs 4Q ’12 Gross Revenue Income Available For Distribution Per Unit (1) S$ '000 +1.4% Singapore 40,000 37,804 38,335 cents -1.5% 30,000 3.50 3.27 3.22 3.00 20 000 20,000 4Q '11 4Q '12 Net Property Income 2.50 S$ '000 +0.2% 40,000 2.00 35,501 35,562 30,000 1.50 20,000 1

  16. Slide 16: CDLHT Y-o-Y Performance: FY '11 Vs FY '12

    CDLHT Y-o-Y Performance: FY ’11 Vs FY ’12 Gross Revenue Income Available For Distribution Per Unit (2) S$ '000 +6.0% % Singapore 149,535 150,000 141,107 cents +5.3% 120,000 14.00 12 57 12.57 90,000 11.94 12.00 60,000 FY '11 FY '12 10.00 Net Property Income 8.00 +5.7% S$ '000 6.00 150 000 150,000 131

  17. Slide 17: Increase in CDLHT Total Property Value

    Increase in CDLHT Total Property Value Valuation of CDLHT Properties S$ M 2,029.8M 2,044.9M Key: 2,000 163 Studio M 163 1,787.1M 1 628 8M 1,628.8M 265 261 Australia Hotel Portfolio . 253 128 1,481.2M 1,501.6M 90 88 Rendezvous Grand Hotel Auckland 1,500 40 99 55 68 93 110 54 141 43 54 129 124 120 125

  18. Slide 18: CDLHT Asset Portfolio

    CDLHT Asset Portfolio Valuation by Property and Geography (1) Overseas Portfolio 17.1% Singapore Portfolio 82.9% Australia 12.8% Singapore 82.9% Novotel Brisbane 4.5% Orchard Hotel 22.2% Mercure & Ibis Brisbane 3.8% Grand Copthorne 17.1% Mercure Perth 2.7% Waterfront Hotel Ibis Perth 1.7% Novotel Si

  19. Slide 19: Healthy Financial Position

    Healthy Financial Position 19

  20. Slide 20: Healthy Balance Sheet

    Healthy Balance Sheet Debt Value (1) Total Assets S$ M S$ M 600 2 500 2,500 533 532 2,134 2,087 , 2,000 400 1,500 200 1,000 0 500 30 Sep '12 12 31 Dec '12 12 30 Sep '12 12 31 Dec '12 12 (1) Debt value is defined as bank borrowings and medium term notes, both of which are unsecured. 20

  21. Slide 21: Healthy Balance Sheet: Debt to Assets Ratio

    Healthy Balance Sheet  Post acquisition of Angsana Velavaru, the pro forma debt to assets ratio will be 27.9% (1), assuming that CDLHT owned the resort as of 31 December 2012  Ample debt headroom for acquisition opportunities as they surface Debt to Assets Ratio Pro forma Debt to Assets Ratio 30%

  22. Slide 22: Debt Facility Details

    Debt Facility Details Unsecured Debt Terms Credit Metrics  S$200 million multi-currency Revolving Credit committed revolving credit facility Fitch Issuer  BBB- Facility Default Rating  Tenure: Extended for another 3 years f from December D b 2012  S$413.6 million medium term notes issued under t

  23. Slide 23: Outlook

    CDL HOSPITALITY TRUSTS Outlook 23

  24. Slide 24: Moderating Visitor Arrivals Growth

    Moderating Visitor Arrivals Growth  Y-o-y growth in visitor arrivals in 3Q 2012 has slowed to 3.1% compared to 11.4% in the first half of 2012  YTD Sep 2012 visitor arrivals registered 8.5% y-o-y growth Quarterly Visitor Arrivals '000 3,750 3 576 3,576 3,595 , 3,506 3,500 3,328 3,486 3,250 3,039 3

  25. Slide 25: STB Expects 17 Million Visitor Arrivals by 2015

    STB Expects 17 Million Visitor Arrivals by 2015 Historical and Forecasted Visitor Arrivals in Singapore Million Implied 4-year CAGR (1), (2) = 6.6% 18.0 17.0 13.5 to 10 year CAGR (1) = 5 10-year 5.8% 8% 14.5 (3) 15.0 13.2 11.6  For 2012, STB forecasted 12.0 13.5 to 14.5 million 10 3 10.1 10.3 10.7

  26. Slide 26: Medium to Long Term Growth Supported by Enhanced Tourism Landscape

    Medium to Long Term Growth Supported by the Vibrancy y of the Enhanced Tourism Landscape p New attractions have added diversity and excitement to the tourism landscape… Opened Oct 2011 Opened Jun 2012 Opened Nov 2012  Family, fun & sports t Increasing enterttainment quotient  Shopping & dining  A

  27. Slide 27: More Supply Expected in the Immediate Horizon

    More Supply (1) Expected in the Immediate Horizon  Supply is expected to grow at a CAGR of 5.1% for the next 3 years  H However, th the estimated ti t d increase i off over 4,000 4 000 rooms iin th the nextt 12 months th will ill contribute t ib t to t a more competitive environment Current and Ex

  28. Slide 28: Potential Supply of New Singapore Hotel Rooms Until 2015

    Potential Supply of New Singapore Hotel Rooms Until 2015 No. of Horwath Expected No. of Horwath Expected Name of Hotel Location Name of Hotel Location Rms Rating Opening Rms Rating Opening Amaris Middle Road Singapore 70 Economy City Centre 1Q 2013 Westin SG Marina Bay 301 Upscale/Luxury City Centre

  29. Slide 29: Management Strategy

    Management Strategy 29

  30. Slide 30: Management Strategy

    Management Strategy Acquiring for Growth N t i for Nurturing f Growth G th  Pursue yield accretive, quality assets with investment rigour and discipline  Maximise revenue management  Tap on potential pipeline from M&C / CDL opportunities ii  Tap on global network for third party assets  Impleme

  31. Slide 31: Acquiring for Growth: Angsana Velavaru, Maldives

    Acquiring for Growth Acquisition of the 113-Villa Angsana Velavaru, Maldives Number of Villas 79 Beach Villas, 34 Water Villas Leasehold Interest 50 years commencing 26 August 1997, ~35 years remaining Purchase Price  US$ 71.0 71 0 million / US$ 628,319 628 319 per key Total Acquisition Cost (1) 

  32. Slide 32: Acquiring for Growth: Angsana Velavaru (con't)

    Acquiring for Growth Acquisition of the 113-Villa Angsana Velavaru, Maldives (con’t) Pro Forma Annualised NPI Yield for FY2012 (1) 9.6% Pro Forma DPS Impact for FY2012 (2) 0.47 Singapore cents or 3.7% accretion Lessee / Lease Term Subsidiary of Banyan Tree Holdings Limited / 10 years Gross Operating

  33. Slide 33: Background and Structure of CDL Hospitality Trusts

    Background and Structure of CDL Hospitality Trusts 33

  34. Slide 34: Background on CDLHT

    Background on CDLHT Background Post IPO Performance Stapled Security price increase  IPO on 19 July 2006 IPO to 25 January 2013 = +140% High (10 Jul ’07) = S$2.66  Listed on SGX $3.00 Annoucement of Novotel Clarke Quay Acquisition Mainboard = S$2.01 31 Dec'07 25 Jan '13 = = S$2.35 Announcement of

  35. Slide 35: CDLHT Structure

    CDLHT Structure Sponsor Investors ≈35.28% Holdings of Stapled Securities ≈64.72% as at 31 Dec 2012 as at 31 Dec 2012 H-REIT Distributions HBT Management services Management Stapling Deed services M&C REIT M&C Business Trust Management Limited H-REIT H REIT HBT(1) and acts on behalf Management Limite

  36. Slide 36: 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 market capitalisation of ~ £1.8 billion (1) ~S$10.3 billion (1)  Debt to asset

  37. Slide 37: Summary of Leases and Lease Structures

    Summary of Leases and Lease Structures Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel:  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 with 20 year option Orchard Hotel Shopping Ar

  38. Slide 38: Income Stability from Minimum Rent

    Income Stability from Minimum Rent Singapore Properties (FY 2012) All CDLHT Properties (FY 2012) S$ M 140 120.7 120 Variable 100 Variable Rent (63.0%) Rent, 80 76 0 76.0 52.0% 60 40 Minimum Rent (1) (37.0%) 20 44.7 0 Overseas Properties (FY 2012) S$ $M 28.8 Mi i Minimu 30 Minimum Rent (1), (2) 1.8 m

  39. Slide 39: Gross Revenue Breakdown: 4Q '11 Vs 4Q '12

    Gross Revenue Breakdown: 4Q Q ’11 Vs 4Q Q ’12 Gross Revenue of CDLHT Properties S$ M + 1.4% 45.0 Key: Y-o-Y % Change S$37.8M S$38.3M Studio M Hotel - 1.9% 40.0 2.7 2.6 Australia Portfolio - 3.0% 35.0 45 4.5 4.3 Rendezvous Grand Hotel Auckland + 2.9% 2 9% 30.0 2.3 2.4 1.3 1.4 + 3.8% Orchard Hotel Sho

  40. Slide 40: Gross Revenue Breakdown: FY '11 Vs FY '12

    Gross Revenue Breakdown: FY ’11 Vs FY ’12 Gross Revenue of CDLHT Properties S$ M 180.0 + 6.0% Key: Y-o-Y % Change 160.0 S$149.5M Studio M Hotel (1) N.M. S$141.1M 10.9 + 3.9% 140.0 Australia Portfolio 7.3 19.4 18 7 18.7 Rendezvous Grand Hotel Auckland + 4.1% 4 1% 120.0 9.4 9.0 5.4 Orchard Hotel Shopp

  41. Slide 41: CDLHT Asset Portfolio – Singapore

    CDLHT Asset Portfolio – Singapore Property Orchard Grand M Hotel Copthorne Novotel Studio M Orchard Hotel Singapore Hotel Copthorne King’s Hotel Singapore Hotel Shopping Portfolio Waterfront Hotel Clarke Quay Arcade Number of 656 574 413 310 403 360 N/A 2,716 Rooms Valuation at 31 S$454.0 M S$350.0

  42. Slide 42: CDLHT Asset Portfolio – Overseas

    CDLHT Asset Portfolio – Overseas Property Rendezvous Grand Novotel Mercure Ibis Mercure Ibis Perth Australian Overseas Hotel Auckland Brisbane Brisbane Brisbane Perth Portfolio Portfolio Number of Rooms 452 296 194 218 239 192 1,139 1,591 Valuation at 31 NZ$88.0M A$72.0M A$62.0M A$44.0M A$28.0M A$20

  43. Slide 43: Information on CDL Hospitality Trusts Properties

    Information on CDL Hospitality Trusts Properties 43

  44. Slide 44: 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 Grand Hotel A kl d Auckland H H H H H SINGAPORE RIVER CENTRAL MARINA BAY BUSINESS SANDS H DISTRICT H BUSINESS & FINANCIAL CENTRE

  45. Slide 45: Hotels in Strategic Locations: Australia

    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 45

  46. Slide 46: Orchard Hotel, Singapore

    Orchard Hotel, Singapore Significant Highlights  656 rooms  Located on Orchard Road  Large pillar-less ballrooms & extensive conference facilities  Caters to both corporate and leisure segments Accolades  Best Concierge Award 2012 by Association of Rooms Division Executive  W ld G World Gourme

  47. Slide 47: Grand Copthorne Waterfront, Singapore

    Grand Copthorne Waterfront, Singapore Significant Highlights  574 rooms  Located between CBD & Orchard Road, within close proximity to Robertson Quay, Boat Quay & Clarke Quay  One of the largest conference facilities in Singapore  Well positioned for the MICE market Accolades  Singapore Service

  48. Slide 48: M Hotel, Singapore

    M Hotel, Singapore Significant Highlights  413 rooms  Located in the heart of the financial district  Close to government offices, integrated resorts and Marina Bay  Strong following of business travellers Accolades  Green Mark (Gold) by Building & Construction Authority 2011-2014  SHA Singapo

  49. Slide 49: Copthorne King's Hotel, Singapore

    Copthorne King’s Hotel, Singapore Significant Highlights  Boutique-style B i l b business i h hotell with i h 310 rooms  Located within close proximity to CBD, convention / exhibition belt, Orchard Road, Robertson Quay, Boat Quay and Clarke Quay  Strong corporate segment focus and specialty event

  50. Slide 50: Novotel Singapore Clarke Quay, Singapore

    Novotel Singapore Clarke Quay, Singapore Significant Highlights  Prime P i mid-scale id l h hotel t l with ith 403 rooms  Leasehold  Located in immediate proximity to Clarke Quay, Robertson Quay and Boat Quay: Singapore’s premier entertainment hub  Room touch ups, upgrading of all bathrooms and

  51. Slide 51: Studio M Hotel, Singapore

    Studio M Hotel, Singapore Significant Highlights  360 360-room h t l opened hotel d iin M March h 2010  Stylish and contemporary design set to capture growing business and leisure segments  Vibrant lifestyle options near the Robertson Quay precinct and in proximity to CBD, tourist attractions, in

  52. Slide 52: Orchard Hotel Shopping Arcade, Singapore

    Orchard Hotel Shopping Arcade, Singapore Net Lettable Area ~ 5,933 sq m JLL’s Valuation S$68.0M Valuation psm (psf) S$11,461 psm (S$1,065 psf) % of total valuation ~3.3% Leasehold Interest 75 years from Listing Date 52

  53. Slide 53: Rendezvous Grand Hotel Auckland, New Zealand

    Rendezvous Grand 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  National Culinary Fare 2012 - 1 Gold & 2 Silver award in Cocktail, Wine and Bev

  54. Slide 54: Novotel, Mercure and Ibis Hotels, Brisbane

    Novotel, Mercure and Ibis Hotels, Brisbane Novotel Brisbane Significant Highlights Novotel 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  Comprehensive confer

  55. Slide 55: Mercure and Ibis Hotels, Perth

    Mercure and Ibis Hotels, Perth Mercure Perth Mercure Perth Significant Highlights Mercure 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 Mercure Perth to the Swan R

  56. Slide 56: Thank You

    CDL HOSPITALITY TRUSTS THANK YOU 56

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