Far East Hospitality Trust · SGX:Q5T
Far East Hospitality Trust — Shareholder Meeting (April 2023)
37 slides from Far East Hospitality Trust's shareholder meeting presentation, Apr 20, 2023
Slide 1: Presentation at 11th Annual General Meeting
Presentation at 11th Annual General Meeting 20 April 2023
Slide 2: Important Notice
Important Notice Information contained in this presentation is intended solely for your personal reference and is strictly confidential. The information and opinions in this presentation are subject to change without notice, its accuracy is not guaranteed and it may not contain all material informat
Slide 3: Agenda
Agenda ▪ Year in Review: • Financial & Operational Performance • Capital Management • Portfolio Optimisation – Divestment of Central Square • Asset Enhancement Initiatives • Sustainability & Corporate Governance ▪ Outlook 3
Slide 4: Financial & Operational Performance
Financial & Operational Performance
Slide 5: FY 2022 Financial Performance
FY 2022 Financial Performance FY 2022 YoY Variance S$’000 % Breakdown of Revenue by Segment Gross Revenue 83,579 0.4 Hotels Serviced Net Property Income 77,329 2.9 Residences 70.0% 12.3% Income Available for 58,986 7.5 Distribution Distribution to Stapled 65,024 25.2 Securityholders 17.7% Distributi
Slide 6: Portfolio Performance – Hotels
Portfolio Performance – Hotels Operating Performance Average Occupancy Average Daily Rate Revenue per Available Room 73.7% (-5.7pp YoY) S$125 (+78.6% YoY) S$92 (+64.3% YoY) • For FY 2022, overall RevPAR grew 64.3% on the back of higher ADR supported in part by healthy demand from corporate groups an
Slide 7: Portfolio Performance – Serviced Residences
Portfolio Performance – Serviced Residences Operating Performance Average Occupancy Average Daily Rate Revenue per Available Unit 87.5% (+10pp YoY) S$223 (+23.2% YoY) S$195 (+39.3% YoY) • For FY 2022, the Serviced Residences continued to demonstrate strong performance generating variable rent above
Slide 8: Portfolio Performance – Commercial Premises
Portfolio Performance – Commercial Premises Performance Revenue (millions) Average Occupancy WALE (Years) S$14.8 (-1.9% YoY) 75.3% (+5.6pp YoY) 1.37 (+0.19 year YoY) • For FY 2022, revenue from the Retail and Office spaces decreased 1.9% year-on-year to S$14.8 million due to lower revenue recorded f
Slide 9: Breakdown of Rental Revenue
Breakdown of Rental Revenue Revenue Mix S$115.5m Variable rent increases as hospitality sector recovery begins 19% S$21.9m • Despite Central Square’s divestment completion on 24 March 2022, revenue S$83.2m S$83.6m for FY 2022 still managed to grow 0.4% 23% S$26.6m year-on-year. 18% S$15.1m 18% S$14.
Slide 10: Portfolio Valuation
Portfolio Valuation Fair value gain1 in investment properties of S$102 million in FY2022 2,447 +4.4% S$2,500 2,337 Millions 342 +3.2% 331 S$2,000 S$1,500 2,105 +4.6% S$1,000 2,006 S$500 Hotels SRs S$0 2 31 Dec 2021 31 Dec 2022 1 Based on the differences between the carrying amount (including capital
Slide 11: Capital Management
Capital Management Fy] oseratry HOSPITALITY TRUST
Slide 12: Capital Management
Capital Management 12 • Pared down debt of S$210.0 million with proceeds from the divestment of Central Square in March 2022 • Refinanced two term loans totalling S$132.2 million to a two new 5-year term loans in December 2022 As at 31 Dec 2022 Debt Maturity Profile Total Debt S$739.3m 30% 225 21% 1
Slide 13: Portfolio Optimisation – Divestment of Central Square
Portfolio Optimisation – Divestment of Central Square
Slide 14: Divestment of Central Square
Divestment of Central Square Crystallisation of value resulting from a multi-year effort by the REIT Manager in master planning and consultations with various parties 1 Unlock latent value within the portfolio of hospitality assets 2 Strengthen balance sheet with proceeds used to pare down debt 3 Gr
Slide 15: Divestment of Central Square
Divestment of Central Square Unlocked Asset Potential to Realise Value March 2022 • Completed divestment of Central Square $331.2m +80.7% +67.0% for a consideration of S$313.2m with an Additional $313.2m $18m additional incentive fee of up to S$18.0m, incentive fee +70.8% +57.9% subject to certain c
Slide 16: Asset Enhancement Initiatives
Asset Enhancement Initiatives
Slide 17: Completed Initiatives
Completed Initiatives Adina Serviced Apartments Orchard Rendezvous Hotel Vibe Hotel Singapore Orchard Singapore Orchard Completion of multi-phase improvement Refurbishment and rebranding of Regency Renovation and rebranding of The Elizabeth works to the facade and revamped outdoor House to Adina Ser
Slide 18: Orchard Rendezvous Hotel
Orchard Rendezvous Hotel Scope of Works 1 New Ribbon Cladding 2 New Aluminum Canopy 5 Removal of Existing 6 Painting Works 5 @ L2 Podium Terrace @ L3-5 Podium Terrace Planter Boxes @ Courtyard 6 2 3 1 7 4 3 New Planters with Irrigation 4 Night Lighting 7 Overall Painting Scheme @ L3-5 Podium Terrace
Slide 19: Orchard Rendezvous Hotel
Orchard Rendezvous Hotel New Removal of Ribbon Existing Cladding Planter Boxes New Overall Aluminium Painting Canopy & Scheme Plants with Auto Irrigation System 19
Slide 20: Orchard Rendezvous Hotel
Orchard Rendezvous Hotel Outdoor Refreshment Area Outdoor Refreshment Area Outdoor Refreshment Area Refreshed Tenant Mix 20
Slide 21: Adina Serviced Apartments Singapore Orchard
Adina Serviced Apartments Singapore Orchard* Reception *Previously known as Regency House 21
Slide 22: Adina Serviced Apartments Singapore Orchard
Adina Serviced Apartments Singapore Orchard* Refurbishment and rebranding of Regency House to Adina Serviced Apartments Singapore Orchard (Officially rebranded on 7 July 2022) Driveway Ride You Own Adina Story *Previously known as Regency House 22
Slide 23: Adina Serviced Apartments Singapore Orchard
Adina Serviced Apartments Singapore Orchard* Refurbishment and rebranding of Regency House to Adina Serviced Apartments Singapore Orchard (Officially rebranded on 7 July 2022) Studio Snack Bar/ Lobby *Previously known as Regency House 23
Slide 24: Vibe Hotel Singapore Orchard
Vibe Hotel Singapore Orchard* Reception *Previously known as The Elizabeth Hotel 24
Slide 25: Vibe Hotel Singapore Orchard
Vibe Hotel Singapore Orchard* Renovation of The Elizabeth Hotel and rebranding to Vibe Hotel Singapore Orchard (Officially opened on 3 November 2022) Roos – All Day Dining Lobby / Reception Driveway Snack bar Lobby Bar *Previously known as The Elizabeth Hotel 25
Slide 26: Vibe Hotel Singapore Orchard
Vibe Hotel Singapore Orchard* Renovation of The Elizabeth Hotel and rebranding to Vibe Hotel Singapore Orchard (Officially opened on 3 November 2022) Superior Room Deluxe Room *Previously known as The Elizabeth Hotel 26
Slide 27: Vibe Hotel Singapore Orchard
Vibe Hotel Singapore Orchard* Renovation of The Elizabeth Hotel and rebranding to Vibe Hotel Singapore Orchard (Officially opened on 3 November 2022) Premier Room Bathroom *Previously known as The Elizabeth Hotel 27
Slide 28: Sustainability & Corporate Governance
Sustainability & Corporate Governance
Slide 29: Sustainability Strategy
Sustainability Strategy Responsible Stewardship Far East H-Trust's sustainability vision is about partnering our stakeholders to positively impact communities and the environment in markets we operate in. Creating Lasting Value We focus on long-term growth of our hospitality portfolio to unlock valu
Slide 30: Continued Commitments on Sustainability Efforts
Continued Commitments on Sustainability Efforts FEHT’s Sustainability Journey 30
Slide 31: Accolades and Corporate Governance Highlights
Accolades and Corporate Governance Highlights Singapore Governance and Governance Index For Trusts ASEAN Corporate Governance Transparency Index 2022 2022 Scorecard 2021 (“SGTI”) (“GIFT”) (“ACGS”) Ranked 3rd Ranked Joint 7th ASEAN Asset Class • In August 2022, FEHT was ranked • In November 2022, FEH
Slide 32: Outlook
Fy] oseratry HOSPITALITY TRUST
Slide 33: Increase of Visitor Arrivals to Singapore
Increase of Visitor Arrivals to Singapore Visitor Arrivals • In 2022, Singapore saw a steady increase of visitor arrivals reaching 6.3 million arrivals, performing above Singapore Tourism Board’s (“STB”) expectations of between four and six million visitor arrivals. • Visitor arrivals for the first
Slide 34: Recovery of Air Passengers Numbers
Recovery of Air Passengers Numbers SIA Group Passenger Capacity December 2022 80% of SIA’s pre-COVID seat capacity • As the main conduit for arrivals in Singapore, airlines’ passenger capacity is a leading indicator for the recovery in cross- border travel. • In the fourth quarter of 2022, SIA’s sea
Slide 35: Outlook
Outlook Outlook for 2023 Continued recovery for the hospitality sector • Singapore Tourism Board expects between twelve million and fourteen million visitor arrivals in 2023 with a full recovery to pre-pandemic levels by 2024. • The World Tourism Organization expects international tourism to reach 8
Slide 36: Outlook
Outlook Medium-Term Outlook Growing business hub – Singapore continues to attract foreign investments • Record high of S$22.5 billion in fixed asset investments in 2022, above the medium to long-term yearly target of between S$8 billion and S$10 billion set by the Economic Development Board. • Stron
Slide 37: Thank You
Thank You For more information, please visit https://www.fehtrust.com
Far East Hospitality Trust — Shareholder Meeting (April 2023) on 6ix