Cdl Hospitality Trusts · SGX:J85
Cdl Hospitality Trusts — FY2008 Earnings Presentation
49 slides from Cdl Hospitality Trusts's earnings presentation, Jan 30, 2009
Slide 1: Presentation of 4Q and FY 2008 Results
Presentation of 4Q and FY 2008 Results 30 January 2009
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 Priorities Performance of CDL Hospitality Trusts Outlook Impact of Reduced Payout Ratio Annexe ♦ Background and structure of CDL Hospitality Trusts ♦ Information on CDL Hospitality Trusts hotels 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary: Priorities in 2009
Executive Summary 1 1 Priorities in 2009 - Maximize revenue and protect profitability - Refinance S$273 million borrowings due in July 2009; discussions with bankers on various refinancing options are in progress - Exercise financial prudence – reduction of dividend payout All Singapore Hotels(1) 2
Slide 6: Executive Summary: Strong FY 2008 Performance
Executive Summary 2 3 Overall, strong FY 2008 performance by CDL-HT vs. FY 2007 despite market turbulence in 2H 2008 - Gross revenue(1) of $114.7 million 26.5% - Net property income(1) of $102.8 million 19.8% - Income available for distribution per unit of 11.11 cents 23.7% - Income to be distribute
Slide 7: Executive Summary: Flat 4Q 2008
Executive Summary 3 5 Flat 4Q 2008; 2009 expected to be challenging - Gross revenue(1) of $28.1 million 0.7% - Net property income(1) of $21.7 million 19.4% - Income available for distribution per unit of 2.29 cents 17.0% - Income to be distributed per unit of 1.80 cents 34.8%(2) The decrease in NPI
Slide 8: Details Of Distribution
Details Of Distribution Distribution for the period 1 July 2008 to 31 December 2008 4.73 ¢ per unit comprising: 4.38 ¢ of taxable income and 0.35 ¢ of tax exempt income Closure of books: 5 pm on 9 February 2009 February 2009 Mon Tue Wed Thu Fri Sat Sun 1 Distribution Date: 2 3 4 5 6 7 8 9 10 11 12 1
Slide 9: Priorities
CDL HOSPITALITY TRUSTS Priorities
Slide 10: Drive Performance of Assets
Priorities 1 Drive Performance of Assets Focus Areas Maximize revenue Cost containment Capitalizing on economies of scale 10
Slide 11: Refinance our existing loans due in July 2009
Priorities 2 Refinance our existing loans due in July 2009 Making Progress on Refinancing Low gearing of 18.2%; high interest cover of 11.1 x Leverage on support of strong sponsor Details will be made known as soon as they are finalized 11
Slide 12: Exercise Financial Prudence
Priorities 3 Exercise Financial Prudence Action Steps Reduce dividend payout ratio for 2H 2008 Payout of 90% of taxable income Payout of 100% of tax exempt income Internal funding of capital expenditure requirements Increase financial flexibility 12
Slide 13: Performance of CDL Hospitality Trusts
Performance of CDL Hospitality Trusts 13
Slide 14: Change in CDL-HT Total Property Value
Change in CDL-HT Total Property Value Valuation of H-REIT Properties S$ M -9.1% +47.8% 1,800 1,628.8M Key: 1,481.2M 1,600 Novotel Clarke Quay +30.2% 16.9% 275 Rendezvous Hotel Auckland 1,400 Orchard Hotel . 18.0% 266 1,101.9M 7.8% 128 Grand Copthorne Waterfront Hotel 1,200 93 6.3% M Hotel 11.1% 123
Slide 15: Strong Balance Sheet
Strong Balance Sheet S$ Debt Values (S$ M)(1) 400 Debt / Assets Ratio (2) 297 300 273 200 30% 100 25% 0 20% 18.1% 18.2% As at 30 Sep '08 As at 31 Dec '08 Total Assets (S$ M) 15% S$ 1,800 1,637 1,600 1,502 10% 1,400 1,200 1,000 5% 800 600 0% 400 200 As at 30 Sep '08 As at 31 Dec '08 0 As at 30 Sep '0
Slide 16: Debt Details
Debt Details Debt Terms Credit Metrics Debt facilities expiring in July Fitch Issuer Default Rating: 2009 BBB- Cost of Debt Debt to assets ratio(2): For S$: S$220M fixed at 2.43% + 18.2% margin Amounts beyond S$220M are Interest Cover(3) : floating 3-month SOR(1) + margin 11.1 x
Slide 17: Strong Year-On-Year Hotel Performance: Actual FY '08 Vs Pro Forma FY '07
Strong Year-On-Year Hotel Performance: Actual FY ’08 Vs Pro Forma(1) FY ’07 CDL-HT Singapore Hotels S$ ARR: FY '07 v FY '08 RevPAR: FY '07 v FY '08 +23.9% S$ 300 +20.9% $244 $208 250 $197 200 200 150 $172 100 50 150 0 FY '07 FY '08 Occ: FY '07 v FY '08 100 90% -2.1 pp or -2.4% 87.3% 88% 86% 85.2% 50
Slide 18: Gross Revenue and NPI: Actual FY '08 Vs FY '07
Gross Revenue and NPI: Actual – FY ’08 Vs FY ’07 CDL-HT Singapore Hotels Gross Revenue (1) Net Property Income (1) S$’000 S$’000 140,000 120,000 +19.8% +26.5% 114,659 102,770 120,000 100,000 85,817 100,000 90,654 80,000 80,000 60,000 60,000 40,000 40,000 20,000 20,000 0 0 FY '07 FY '08 FY '07 FY '08
Slide 19: Hotel Performance: Actual 4Q '08 Vs 4Q '07
Hotel Performance: Actual – 4Q ’08 Vs 4Q ’07 CDL-HT Singapore Hotels ARR: 4Q '07 v 4Q '08 S$ RevPAR: 4Q '07 v 4Q '08 230 +3.7% S$ $224 225 -1.6% 220 $216 215 200 $191 $188 210 205 150 4Q '07 4Q '08 Occupancy: 4Q '07 v 4Q '08 92% 100 -4.9 pp or -5.5% 90% 88.6% 88% 86% 50 83.7% 84% 82% 80% 0 4Q '07 4Q
Slide 20: Gross Revenue And NPI: Actual 4Q '08 Vs 4Q '07
Gross Revenue And NPI: Actual – 4Q ’08 Vs 4Q ’07 CDL-HT Singapore Hotels (1) Gross Revenue (1) Net Property Income S$’000 S$’000 -19.4% 28,400 +0.7% 30,000 26,928 28,200 28,144 25,000 21,706 28,000 27,960 20,000 27,800 15,000 27,600 10,000 27,400 5,000 27,200 27,000 0 4Q '07 4Q '08 4Q '07 4Q '08 (1)
Slide 21: Impact of One-Off Property Tax And Other Property Expenses in 4Q '08
Impact of One-Off Property Tax And Other Property Expenses in 4Q ’08 Property Tax Expenses (1) Adjusted NPI Excluding One-off Expenses S$ M 4.6 5.0 S$ M -2.7% 4.0 30 26.9 26.2 S$3.2 m one-off 3.0 Increase of 3.2 provisions in S$4.0 m in respect of 2006 property taxes & 2007 1.3 25 NPI adjusted for o
Slide 22: Outlook
CDL HOSPITALITY TRUSTS Outlook 22
Slide 23: Potential Supply Of Hotel Rooms Until 2012
Potential Supply Of Hotel Rooms Until 2012 Current and Expected Hotel Room Supply in Singapore No. of Hotel Rooms 50,000 45,000 2009 to 2012 CAGR = 7.2% 437 40,000 40,757 2,183 2,555 35,000 2,175 (1) 2,600 30,000 30,807 25,000 2008 2009 2010 2011 2012 Total 2012 (1) The supply from the hotel develop
Slide 24: Singapore Overall Visitor Arrivals For YTD Nov 2008
Singapore – Overall Visitor Arrivals For YTD Nov 2008 Breakdown of Visitor Arrivals To Singapore Growth in Top 10 Visitor For Jan-Nov '08 Arrival Countries for Singapore (Jan-Nov '08 vs. Jan-Nov '07) Others, 2,468,589 27% -2.5% USA -2.3% Philippines USA, 363,674 Indonesia, 4% -5.9% South Korea Phili
Slide 25: Seven Consecutive Months of Decline In Visitor Arrivals In 2008
Seven Consecutive Months of Decline In Visitor Arrivals In 2008 2008 YOY Change in Visitor Arrivals YOY Change in '000 YOY Change in % 100 15% 80 7.1% 7.2% 5.9% 58.8 10% 60 54.2 50.8 40 0.9% 5% 1.1% 20 7.6 8.7 - 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (20) -29.4 -5% (40) -33.1 -35.8 YOY A
Slide 26: High Base In 2008 & Chinese New Year Effect Weighed on MTD Jan '09
High Base In 2008 & Chinese New Year Effect Contributed To Weaker MTD Jan ’09 Performance CDL-HT Singapore Hotels ARR: MTD 29 Jan '08 v MTD 29 Jan '09 RevPAR: MTD 29 Jan '08 v MTD 29 Jan '09 S$ 300 -15.8% S$ 250 $237 250 $200 -28.9% 200 $203 150 200 100 MTD 29 Jan '08 MTD 29 Jan '09 150 $144 Occ: MT
Slide 27: CDL-HT Revenue Has Downside Protection
CDL-HT Revenue Has Downside Protection Gross Revenue For FY 2008: Breakdown of Fixed Rent (1), (2) for 2008 Fixed (1), (2) & Variable (S$’000) S$ '000 114,659 120,000 IPO Hotels Base Rent, 26,400 , 57% 100,000 80,000 59.6% 68,299 Novotel Clarke Quay Rent Reserve, 60,000 6,500 , 14% 40,000 Rendezvous
Slide 28: Positive Developments In 2009 and Better Outlook Expected In 2010
But Some Positive Developments In 2009 and Better Outlook Expected In 2010 Singapore continues to draw major international meetings & APEC Conference 2009 conferences including APEC conference in 2009 Youth Olympics World class events like Youth Olympics Games 2010 Games in 2010 & annual F1 event wi
Slide 29: Diversified Long Term Growth Drivers Of Arrivals
Diversified Long Term Growth Drivers Of Arrivals Top Global City for Meetings Positioning Singapore as a Leisure Centre Singapore ranked world’s top Opening of Singapore Flyer in 2008 - international meeting city in 2007 tallest giant observation wheel in the world in Union of International An
Slide 30: Impact of Reduced Payout
CDL HOSPITALITY T RUSTS Impact of Reduced Payout 30
Slide 31: Income To Be Distributed Per Unit For FY 2008 And 4Q 2008
Income To Be Distributed Per Unit For FY 2008 And 4Q 2008 Vs FY 2007 And 4Q 2007 CDL-HT Singapore Hotels Distribution Per Unit (1) Distribution Per Unit (2) S$ cents S$ cents 3.50 11.00 10.62 -34.8% +18.3% 10.50 3.00 2.76 10.00 2.50 9.50 8.98 9.00 2.00 1.80 8.50 1.50 8.00 1.00 7.50 7.00 0.50 6.50 0.
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 Announcement of Equity Fund Raising Unit price increase = S$2.28 High (10 Jul ’07) IPO to 29 Jan 09 = -22.9% 2 Jan 09 to 29 Jan 09 = -12.3% • Listed on SGX Mainboard = S$2.66 $3.00 Announcement of 31 Dec'07 • Sponsored by Mil
Slide 34: CDL-HT Structure
CDL-HT Structure Sponsor Investors ≈38.85% Holdings of Stapled Securities ≈61.15% H-REIT Distributions HBT Management services Stapling Deed M&C REIT M&C Business Trust Management Limited H-REIT HBT(1) Management Limited (H-REIT Manager) (owns hotels) (HBT Trustee Manager) Lease of Hotels Management
Slide 35: Lease Structures
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 subject to a Fixed Rent Favourable floor of $26.4 m Lease Structure in Base Term of 20 years from Listing with 20 year option Portfo
Slide 36: CDL-HT Asset Portfolio
CDL-HT Asset Portfolio Orchard Grand Copthorne M Hotel Copthorne Orchard Hotel Rendezvous Novotel Total Hotel Waterfront Hotel King’s Hotel Shopping Arcade Hotel Auckland Clarke Quay Number of 653 574 413 310 N/A 455 401 2,806 Rooms NZ$112.0M Valuation S$423.0M S$309.0M S$227.0M S$120.0M S$43.0M S$2
Slide 37: Breakdown Of Gross Revenue By Property: 4Q '08 Vs 4Q '07
Breakdown Of Gross Revenue By Property Actual - 4Q ’08 Vs 4Q ’07 Gross Revenue from H-REIT Properties S$ M +0.7% 30 S$ 28.0M S$ 28.1M Key: % Change from 4Q ‘07 16% 4.5 20% 25 5.6 Novotel Clarke Quay +25.6% 11% 3.1 7% 2.0 Rendezvous Hotel Auckland -36.2% 20 3% 1.0 4% 1.1 9% 2.5 Orchard Hotel Shopping
Slide 38: Hotels In Strategic Locations
Hotels In Strategic Locations Singapore Hotels New Zealand Hotel Orchard Grand Copthorne M Hotel Novotel Hotel & Copthorne King’s Clarke Quay Rendezvous Shopping Waterfront Hotel Hotel Arcade Hotel Auckland ORCHARD ROAD SINGAPORE RIVER INTEGRATED RESORT SITE CENTRAL BUSINESS DISTRICT BUSINESS & FINA
Slide 39: Change in CDL-HT Total Property Value
Change in CDL-HT Total Property Value Valuation of H-REIT Properties S$ M -9.1% +47.8% 1,800 1,628.8M Key: 1,481.2M 1,600 Novotel Clarke Quay +30.2% 16.9% 275 Rendezvous Hotel Auckland 1,400 Orchard Hotel . 18.0% 266 1,101.9M 7.8% 128 Grand Copthorne Waterfront Hotel 1,200 93 6.3% M Hotel 11.1% 123
Slide 40: 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 capitalisation of ~ £709.6 million(1) with a market capitalization of S$5.4 billion(1) Debt to assets ratio
Slide 41: Information on CDL Hospitality Trusts Hotels
Information on CDL Hospitality Trusts Hotels 41
Slide 42: Orchard Hotel, Singapore
Orchard Hotel, Singapore Significant Highlights 653 rooms Located in Orchard Road Newly renovated rooms Large pillar-less ballrooms with extensive conference facilities Caters to both corporate and leisure segments Accolades Asia Tatler’s Regional Best Restaurants 2008/2009 – Hua Ting Re
Slide 43: Grand Copthorne Waterfront, Singapore
Grand Copthorne Waterfront, Singapore Significant Highlights 574 rooms Located between CBD and Orchard Road Close to proposed BFC and IR One of the largest conference facilities in Singapore Well positioned for the MICE market Accolades Hospitality Asia Platinum Award 2008 to 2010 Region
Slide 44: M Hotel, Singapore
M Hotel, Singapore Significant Highlights 413 rooms Located in the heart of the financial district Close to proposed BFC and IR Completed refurbishment in 2003 Strong following of business travellers Accolades Wotif.com Top Customer’s Preferred Choice Award 2007 / 2008 Best Mid-Range B
Slide 45: Copthorne King's Hotel, Singapore
Copthorne King’s Hotel, Singapore Significant Highlights Boutique style 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 Singapo
Slide 46: Orchard Hotel Shopping Arcade, Singapore
Orchard Hotel Shopping Arcade, Singapore Net Lettable Area 4,889.5 sq m Knight Frank’s valuation S$43.0M Valuation psm (psf) S$8,794 psm (S$817 psf) % of total valuation ~2.9% Leasehold Interest 75 years from Listing Date 46
Slide 47: Rendezvous Hotel Auckland, New Zealand
Rendezvous Hotel Auckland, New Zealand Significant Highlights 455 rooms – largest hotel in Auckland by rooms Freehold Located in the central business district and next to a major conference centre 47
Slide 48: 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 49: Thank You
Thank You CDL HOSPITALITY TRUSTS
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