Cdl Hospitality Trusts · SGX:J85
Cdl Hospitality Trusts — Q1 2009 Earnings Presentation
51 slides from Cdl Hospitality Trusts's earnings presentation, Apr 30, 2009
Slide 1: Presentation of 1Q 2009 Results
Presentation of 1Q 2009 Results 30 April 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 Performance Of CDL Hospitality Trusts Healthy Financial Position Successful Refinancing Outlook Active Asset Management Update On Acquisition Strategy Annexe ♦ Background And Structure Of CDL Hospitality Trusts ♦ Information On CDL Hospitality Trusts Hote
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary 1
Executive Summary 1 1 Successful refinancing of existing debt facility with DBS Bank - New 3-year secured debt facility comprising a S$270 million term loan and a S$80 million revolving credit facility - Floating S$ SOR(1) + interest margin of 2.60% 2 Strong balance sheet and sound fundamentals - On
Slide 6: Executive Summary 2
Executive Summary 2 3 Slowdown in YoY decline in visitor arrivals of 13.2% in March compared to 15.2% in February. Total visitor arrivals for January to March 2009 totaled 2.25 million, representing a decrease of 13.7% over the same period last year Impact of global economic downturn contributed to
Slide 7: Executive Summary 3
Executive Summary 3 All Singapore Hotels (1) 5 1Q ’09 1Q ’08 Growth Occupancy 74.8% 84.4% -9.6pp Average Daily Rate S$201 S$247 -18.6% RevPAR S$150 S$208 -27.7% (1) “Singapore Hotels” include Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel, and Novotel Clarke Quay. 7
Slide 8: Performance Of CDL Hospitality Trusts
Performance Of CDL Hospitality Trusts 8
Slide 9: Ten Consecutive Months Of Decline In Visitor Arrivals Since June 2008
Ten Consecutive Months Of Decline In Visitor Arrivals Since June 2008 2008 & 2009 YOY Change in Visitor Arrivals YOY Change in '000 YOY Change in % 15% 90 7.2% 7.2% 6.1% 70 59.4 54.7 52.0 10% 50 1.2% 1.5% 30 5% 9.9 12.4 10 (10) Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 No
Slide 10: Year-On-Year Hotel Performance: 1Q '09 Vs 1Q '08
Year-On-Year Hotel Performance: 1Q ’09 Vs 1Q ’08 CDL-HT Singapore Hotels S$ ARR: 1Q '08 v 1Q '09 S$ -18.6% RevPAR: 1Q '08 v 1Q '09 300 $247 250 $201 250 -27.7% 200 150 $208 100 200 50 0 $150 1Q '08 1Q '09 150 Occ: 1Q '08 v 1Q '09 -9.6 pp or -11.4% 84.4% 100 85% 80% 74.8% 75% 50 70% 65% 60% 0 1Q '08
Slide 11: Gross Revenue, NPI And Income Available For Distribution Per Unit
Gross Revenue, NPI And Income Available For Distribution Per Unit: 1Q ’09 Vs 1Q ’08 CDL-HT Singapore Hotels Gross Revenue (1) S$’000 Income Available for Distribution -19.2% 35,000 S$ cents Per Unit (2) 30,000 27,894 25,000 22,531 3.50 20,000 -23.8% 15,000 3.00 2.86 10,000 5,000 2.50 0 2.18 1Q '08 4
Slide 12: Healthy Financial Position
Healthy Financial Position 12
Slide 13: Strong Balance Sheet
Strong Balance Sheet S$ Debt Values (S$ M) (1) 400 Debt / Assets Ratio 297 300 273 30% 200 100 25% 19.7% 0 20% 18.2% As at 31 Dec '08 As at 31 Mar '09 S$ Total Assets (S$ M) 15% 1,800 1,600 1,502 1,506 10% 1,400 1,200 1,000 5% 800 600 400 0% 200 As at 31 Dec '08 As at 31 Mar '09 0 As at 31 Dec '08 A
Slide 14: Change In CDL-HT Total Property Value & Net Asset Value Per Unit
Change In CDL-HT Total Property Value & Net Asset Value Per Unit 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
Slide 15: Current Debt Details
Current Debt Details Debt Terms Credit Metrics Debt facilities expiring in July Fitch Issuer Default Rating: 2009 BBB- Cost of Debt Debt to assets ratio: For S$: S$220M fixed at 2.43% + 19.7% margin Amounts beyond S$220M are Interest Cover(2) : floating 3-month S$ SOR(1) + margin
Slide 16: Successful Refinancing
CDL HOSPITALITY T RUSTS Successful Refinancing 16
Slide 17: Successful Refinancing - Details Of New Debt Facility
Successful Refinancing - Details Of New Debt Facility H-REIT has concluded a new S$350 million secured debt facility with DBS to refinance all its outstanding borrowings of S$297 million maturing in July 2009 The key terms of the new S$350 million debt facility are summarised in the table below
Slide 18: Post-Refinancing
Post-Refinancing Drawdown date of new facility expected to be on 31 July 2009 to refinance S$297 million outstanding borrowings as at 31 Mar 2009, comprising: S$277 million debt drawn on the existing secured facility NZ$23 million debt unsecured borrowings Post refinancing, H-REIT’s availabl
Slide 19: Outlook
CDL HOSPITALITY TRUSTS Outlook 19
Slide 20: Visitor Arrivals In Singapore
Visitor Arrivals In Singapore Visitor Arrivals in Singapore Current Thousands Asian Financial Crisis Sep 11 & SARs 36% Financial Crisis 12,000 11% 11% 11% 7% 7% 3% 2% 7% 9% 5% -1% -2% 1% -2% -13% -19% -14% 10,285 10,116 9,751 10,000 YTD 8,943 8,329 8,000 7,691 7,522 7,567 7,137 7,292 7,198 6,958 6,8
Slide 21: Singapore – Overall Visitor Arrivals For YTD Mar 2009
Singapore – Overall Visitor Arrivals For YTD Mar 2009 Growth in Top 10 Visitor Breakdown of Visitor Arrivals To Singapore Arrival Countries for Singapore For Jan-Mar '09 (Jan-Mar '09 vs. Jan-Mar '08) Others, 632,607 28% -8.4% Thailand Indonesia, -19.3% USA Thailand, 74,015 3% 350,065 0.4% Philippine
Slide 22: 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 = 6.1% 40,000 770 300 39,040 1,878 35,000 1,800 Resorts World at Sentosa 2,500 Marina Bay Sands 985 30,000 30,807 30,807 30,807 30,807 30,807 25,000 2008
Slide 23: Opening Of Integrated Resorts
Opening Of Integrated Resorts Universal Studios Singapore – Southeast Asia’s only and the second largest in the world Resorts Equarius Water Park World at Three public amphitheatres with resident shows produced Sentosa by the creators of Cirque du Soleil Maritime Xperiential Museum Marine
Slide 24: Demand Boost From Resorts World At Sentosa
Demand Boost From Resorts World At Sentosa Resorts World at Sentosa “… Indeed, come 2010, Resorts World at Sentosa looks set to welcome 15 million visitors in its first year of operations, with its full array of family-friendly attractions. It will be a place that Singapore can proudly call its own…
Slide 25: Further Boosted By Positive Developments In 2009 And Better Outlook Expected In 2010
Further Boosted By 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 Games 2010 Olympics Games in 2010 & annual F
Slide 26: 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 27: CDL-HT Revenue Has Downside Protection
CDL-HT Revenue Has Downside Protection Rental Income for 1Q09 with Breakdown of Minimum Rent (1), (2) (S$’000) S$ '000 25,000 22,531 IPO Hotels Base Rent, 6,510 , 59% 20,000 50.8% 11,449 15,000 Novotel Clarke Quay Rent Reserve, 1,603 , 14% 10,000 5,000 49.2% 11,083 OHSA Retail Rent, Rendezvous Hotel
Slide 28: Active Asset Management
CDL HOSPITALITY T RUSTS Active Asset Management 28
Slide 29: Working Closely With Lessees/Hotel Managers: Driving Revenue Initiatives
Working Closely With Lessees/Hotel Managers 1 Driving Revenue Initiatives Grow base business from stable segments Boost weekend demand Target acquisition of corporate accounts in industries experiencing a healthy level of activity or growth Explore opportunities to increase brand online book
Slide 30: Working Closely With Lessees/Hotel Managers: Proactive Cost Containment Initiatives
Working Closely With Lessees/Hotel Managers 2 Proactive Cost Containment Initiatives Streamline work processes to enhance efficiency and increase productivity Cluster certain functions amongst the IPO hotels Improve menu mix and food ingredient selection to contain F&B cost Streamline hotel
Slide 31: Update On Acquisition Strategy
Update On Acquisition Strategy 31
Slide 32: Acquisition Opportunities From Multiple Sources
Acquisition Opportunities From Multiple Sources M&C Third Parties Owns / operates > 100 hotels globally Divestment of assets Right of First Refusal(1) to future sales of Singapore ♦ by hospitality service providers who are hotels owned by M&C or offers of Singapore hotels increasingly looking
Slide 33: CDL-HT Target Markets
CDL-HT Target Markets Specific Countries of Interest Singapore ▪ Australia ▪ China ▪ Hong Kong ▪ India ▪ Indonesia ▪ Japan ▪ Malaysia ▪ Maldives ▪ New Zealand ▪ Philippines ▪ Thailand ▪ Vietnam ▪ UAE ▪ Taiwan 1Q 09 RevPAR Growth (1) Bangkok -32.3% Jakarta 7.3% Kuala Lumpur -8.5% Beijing -44.4% Japan
Slide 34: Background And Structure Of CDL Hospitality Trusts
Background And Structure Of CDL Hospitality Trusts 34
Slide 35: Background To CDL-HT
Background To CDL-HT Background Post IPO Performance High (10 Jul ’07) • IPO on 19 July 2006 $3.00 Announcement of Equity Fund Raising = S$2.66 Unit price increase = S$2.28 IPO to 29 Apr 09 = -34.3% 31 Dec'07 2 Jan 09 to 29 Apr 09 = -25.3% • Listed on SGX Mainboard Announcement of = S$2.35 $2.50 Nov
Slide 36: 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 ~ £678.6 million(1) with a market capitalisation of S$5.3 billion(1) Debt to assets ratio
Slide 37: CDL-HT Structure
CDL-HT Structure Sponsor Investors ≈39.025% Holdings of Stapled Securities ≈60.975% 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 Manageme
Slide 38: 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 39: 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$2
Slide 40: Breakdown Of Gross Revenue By Property Actual - 1Q '09 Vs 1Q '08
Breakdown Of Gross Revenue By Property Actual - 1Q ’09 Vs 1Q ’08 Gross Revenue from H-REIT Properties S$ M 35 -19.2% 30 S$ 27.9M Key: % Change from 1Q ’08 18% 5.1 -9.1% 25 S$ 22.5M Novotel Clarke Quay 8% 2.3 Rendezvous Hotel Auckland -19.1% 4% 21% 4.6 20 1.0 10% 2.8 8% 1.9 Orchard Hotel Shopping Arc
Slide 41: 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 42: Information On CDL Hospitality Trusts Hotels
Information On CDL Hospitality Trusts Hotels 42
Slide 43: Hotels In Strategic Locations
Hotels In Strategic Locations Singapore Hotels New Zealand Hotel Orchard Grand Copthorne M Hotel Novotel Hotel & Copthorne King’s Rendezvous Clarke Quay Shopping Waterfront Hotel Hotel Arcade Hotel Auckland ORCHARD ROAD SINGAPORE RIVER INTEGRATED RESORT SITE CENTRAL BUSINESS DISTRICT BUSINESS & FINA
Slide 44: 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 Business Times-Citibank Gourmet Choice Awards 2009 – Hua Ting R
Slide 45: 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 Asia Tatler’s Regional Best Restaurants 2008/2009 –
Slide 46: 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 Wine & Dine Singapore’s Top Restaurants 2009 – Cafe 2000 Wine & Dine Singapo
Slide 47: 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 Wine &
Slide 48: 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 48
Slide 49: 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 49
Slide 50: 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 51: Thank You
Thank You CDL HOSPITALITY TRUSTS
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