Capitaland Ascott Trust · SGX:HMN

Capitaland Ascott Trust — Ascott Residence Trust — Investor Presentation (June 2011)

54 slides from Capitaland Ascott Trust's investor presentation, June 2011

  1. Slide 1: Ascott Residence Trust Presentation to Investors

    Ascott Residence Trust Presentation to Investors June 2011

  2. Slide 2: Agenda

    Agenda • Introduction • 1Q 2011 Results Highlights • Portfolio Performance • Portfolio Information • Capital and Risk Management • Prospects • Summary • Appendices 2

  3. Slide 3: Disclaimer

    Disclaimer IMPORTANT NOTICE The value of units in Ascott Residence Trust (“Ascott Reit”) (the “Units”) and the income derived from them may fall as well as rise. The Units are not obligations of, deposits in, or guaranteed by Ascott Residence Trust Management Limited, the Manager of Ascott Reit (the

  4. Slide 4: Ascott Reit – Balanced and Diversified Portfolio

    Ascott Reit – Balanced and Diversified Portfolio United Kingdom Belgium 4 properties 2 properties France Germany 17 properties 2 properties Spain Japan 1 property 20 properties China 3 properties Philippines Vietnam 3 properties 5 properties Singapore 3 properties Indonesia 2 properties Australia S$

  5. Slide 5: Serviced Residences – An Attractive Asset Class

    Serviced Residences – An Attractive Asset Class Apartments for Serviced Residences Hotels Rent Long-term leases Hybrid between hotels and Short-term accommodation Lease Structure & apartments/condominiums Terms Variable lease terms from one week to one year or longer Dependent on Some seasonality of

  6. Slide 6: 1Q 2011 Results Highlights

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  7. Slide 7: 1Q 2011 vs 1Q 2010 Performance

    1Q 2011 vs 1Q 2010 Performance 1Q 2011 1Q 2010 Change Revenue (S$m) 67.3 43.5 +55% Gross Profit (S$m) 36.4 20.1 +81% Unitholders’ Distribution (S$m) 24.0 10.3 +133% Distribution Per Unit (S cents) 2.14 1.66 +29% Revenue Per Available Unit 133 122 +9% (S$/day) – serviced residences • Increase in reve

  8. Slide 8: 1Q 2011 vs Forecast Performance

    1Q 2011 vs Forecast Performance 1Q 2011 Forecast(1) Change Revenue (S$m) 67.3 67.7 -1% Gross Profit (S$m) 36.4 35.1 +4% Revenue Per Available Unit 133 124 +7% (S$/day) – serviced residences • Revenue was lower by S$0.4 million or 1% as compared to the forecast as the forecast included the contributi

  9. Slide 9: 1Q 2011 vs Forecast Performance

    1Q 2011 vs Forecast Performance 1Q 2011 Forecast(1) Change Unitholders’ Distribution (S$m) 24.0 19.3 +24% Distribution Per Unit (S cents) 2.14 1.71 +25% • Unitholders’ Distribution was higher than the forecast mainly due to lower finance costs and lower taxation for 1Q 2011. Finance costs were S$2.2

  10. Slide 10: 1Q 2011 Portfolio Performance

    1Q 2011 Portfolio Performance • Master Leases (20 properties) • Management Contracts with Minimum Guaranteed Income (8 properties) • Management Contracts (36 properties) 10

  11. Slide 11: Master Leases

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  12. Slide 12: Master Leases

    Master Leases Citadines Citadines Citadines Citadines Citadines Citadines Somerset Louvre Les Halles Place Croisette Arnulfpark Kurfursten- Salcedo Paris Paris d’Italie Cannes Munich damm Property Paris Berlin Makati Revenue Gross Profit 1Q 2011 1Q 2010 Forecast 1Q 2011 1Q 2010 Forecast S$’M S$’M S$

  13. Slide 13: Management Contracts with Minimum Guaranteed Income

    Management Contracts with Minimum Guaranteed Income 13

  14. Slide 14: Overview of Management Contracts with Minimum Guaranteed Income

    Overview of Management Contracts with Minimum Guaranteed Income • 8 out of Ascott Reit’s 64 properties are on management contracts that provide minimum guaranteed income. • These properties contributed 15% of the Group’s gross profit for 1Q 2011. • These management contracts have an average weighted

  15. Slide 15: United Kingdom

    United Kingdom* Citadines Citadines Citadines Citadines +3% Barbican Prestige Prestige Trafalgar +4% London Holborn- South Square 153 S$m Covent Kensington London 148 Garden London 10 8.8 8.5 -3% 5 4.0 3.9 0 Revenue Gross Profit RevPAU S$ Forecast 1Q 2011 Continued market improvement enabled the ref

  16. Slide 16: Belgium

    Belgium* Citadines Sainte- Citadines Toison Catherine Brussels d’Or Brussels S$m -7% -7% 3 2.7 2.5 2 82 76 -20% 1 0.5 0.4 0 Revenue Gross Profit RevPAU Forecast 1Q 2011 S$ Decrease in revenue mainly due to the postponement of renovation for Citadines Sainte-Catherine Brussels to end of 1Q 2011 inste

  17. Slide 17: Spain

    Spain* Citadines Ramblas Barcelona S$m -1% 2 1.3 1.3 87 86 1 0.5 0.5 0 Revenue Gross Profit RevPAU S$ Forecast 1Q 2011 Revenue for 1Q 2011 included a top-up by the property manager of S$0.2 million for Citadines Ramblas Barcelona, as assumed in the forecast. * Spain portfolio was acquired on 1 Octob

  18. Slide 18: Vietnam

    Vietnam Somerset West Lake Hanoi S$m -13% -9% 1.5 -14% 99 1.0 1.1 1.0 86 86 1 0.6 0.7 0.6 0.5 0 Revenue Gross Profit RevPAU1 S$ 1Q 2010 Forecast 1Q 2011 Revenue for 1Q 2011 included a yield protection amount of S$0.2 million as assumed in the forecast due to lower performance. 1 RevPAU for 1Q 2010 h

  19. Slide 19: Management Contracts

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  20. Slide 20: Australia

    Australia +14% Somerset Somerset +14% 175 St Georges Gordon Heights 154 154 Terrace Perth Melbourne S$m +5% +5% 3 1.9 1.9 2.0 2 +20% +50% 1 0.5 0.6 0.4 0 Revenue Gross Profit RevPAU1 S$ 1Q 2010 Forecast 1Q 2011 Increase in revenue mainly due to the strengthening of AUD against SGD and higher demand

  21. Slide 21: China

    China Somerset Somerset Somerset Xu Hui Olympic Grand Shanghai Tower Fortune Property Garden -8% Tianjin Property S$m Beijing 114 108 10 8.4 -9% 108 99 4.6 -8% 5 4.7 4.2 2.8 1.6 1.3 1.2 0 Revenue Gross Profit RevPAU1 S$ 1Q 2010 Forecast 1Q 2011 Same store2 Lower performance in Shanghai due to increa

  22. Slide 22: Indonesia

    Indonesia Ascott Somerset S$m Jakarta Grand Citra -19% Jakarta 6.0 +39% 4.9 4.7 97 90 4.0 3.7 3.8 86 3.4 +9% 67 70 2.0 1.7 1.1 1.2 0.8 0.8 0.0 Revenue Gross Profit RevPAU1 S$ 1Q 2010 Forecast 1Q 2011 Same store2 and exclude BI claim On a same store basis, increase in revenue and gross profit due to

  23. Slide 23: Japan

    Japan Somerset Azabu Somerset 18 rental housing -5% East Tokyo Roppongi properties in -4% Tokyo Tokyo S$m +2% 135 136 129 4.1 4.2 4.2 -4% 4 2.4 2.5 2.4 2 1.9 1.9 1.8 0.7 0.7 0.6 0 Revenue1 Gross Profit1 RevPAU2 S$ 1Q 2010 Forecast 1Q 2011 Serviced residence contribution Revenue increased due to bett

  24. Slide 24: Philippines

    Philippines -3% -10% Ascott Makati Somerset 167 -8% -4% Millennium 155 151 S$m Makati 8 7.4 7.1 6.8 -10% 4 3.1 2.8 2.8 0 Revenue Gross Profit RevPAU1 S$ 1Q 2010 Forecast 1Q 2011 Lower performance due to lower demand from project groups for serviced residences as a result of reduction in their accomm

  25. Slide 25: Singapore

    Singapore +19% 259 238 Somerset Somerset Citadines Mount 223 Grand Cairnhill Liang Court Sophia Property 200 S$m Singapore Property Singapore 179 15 +15% Singapore 12.4 10.8 10 8.7 9.7 +28% 7.3 6.8 5.3 5 3.6 5.4 4.5 0 Revenue Gross Profit RevPAU1 Same store2 S$ 1Q 2010 Forecast 1Q 2011 Increase in r

  26. Slide 26: Vietnam

    Vietnam Somerset Somerset Somerset Somerset Ho -4% Grand Hanoi Hoa Binh Chancellor Chi Minh S$m -5% Hanoi Court Ho Chi City 12 Minh City 120 109 10.2 116 105 9.7 110 8.3 8.2 +2% 7.7 6.0 5.3 5.9 6 4.9 5.0 0 Revenue Gross Profit RevPAU1 S$ 1Q 2010 Forecast 1Q 2011 Same store2 On a same store basis, lo

  27. Slide 27: 1Q 2011 Portfolio Information

    1Q 2011 Portfolio Information 27

  28. Slide 28: Geographical Diversification

    Geographical Diversification Ascott Reit’s Share of Asset Values YTD March 2011 Australia Spain 1.8% Belgium 1.8% 1.7% Germany Singapore 2.1% 21.5% Japan 10.7% United France Kingdom 21.0% 16.6% Indonesia Vietnam 2.5% 8.3% Philippines China 6.9% 5.1% Total Total = = S$2.66 S$2.66 billion billion Port

  29. Slide 29: Balance of Income Stability and Growth

    Balance of Income Stability and Growth 1Q 2011 Gross Profit Master Leases 27% Management Contracts 58% Management Contracts with Minimum Guaranteed Income 15% Total Total = = S$36.4 S$36.4 million million Both Both master master leases leases and and serviced serviced residence residence management

  30. Slide 30: Length of Stay and Market Segment

    Length of Stay and Market Segment Apartment Rental Income Apartment Rental Income By Length of Stay1 By Market Segment1 1 Jan to 31 Mar 2011 1 Jan to 31 Mar 2011 > 12 1 week or Family/ less Leisure months 16% 8% 23% Business Trip Relocation 58% 19% 6 to 12 months < 1 month 11% 29% Project 15% 1 to 6

  31. Slide 31: Diverse Tenant Mix and Quality Clientele

    Diverse Tenant Mix and Quality Clientele Apartment Rental Income Top 10 Corporate Clients by By Industry1 Apartment Rental Income for FY2010 1 Jan to 31 Mar 2011 Healthcare % of Total Others Corporate Client Industry Apartment Real estate/ 2% 3% Industrial Rental Income Lodging 12% 17% 1 Citadines S

  32. Slide 32: Capital & Risk Management

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  33. Slide 33: Healthy Balance Sheet

    Healthy Balance Sheet • Gearing of 41.1%, well within the 60% gearing limit allowable under MAS property fund guidelines Ascott Ascott Reit Reit Gearing Gearing Profile Profile As As at at 31 31 March March 2011 2011 2500 Debt S$1,092.2m (41.1%) 2000 Ascott Reit’s 15 0 0 proportionate share of asset

  34. Slide 34: Debt Profile

    Debt Profile Maturity Profile Currency Profile As at 31 March 2011 As at 31 March 2011 S$’m S$’m 500 600 S$539.1m S$398.7m 49% 37% 400 500 S$311.8m 28% 400 300 S$280.4m 300 26% 200 S$144.6m* 13% S$114.8m S$122.3m 11% 200 11% S$119.8m 100 S$81.8m 11% S$66.5m 100 8% 6% S$4.6m 0 <1% 0 2011 2012 2013 20

  35. Slide 35: Interest Rate Profile

    Interest Rate Profile Interest Rate Profile As at 31 March 2011 Floating S$278.8m (26%) Floating with interest rate caps, Fixed S$237.6m (22%) *S$575.8m (52%) Effective Effective Borrowing Borrowing Rate Rate of of 3.2% 3.2% Interest Interest Cover Cover Ratio Ratio of of 3.8x 3.8x * S$114.4m is due

  36. Slide 36: Capital Management

    Capital Management • Increase the average debt maturity profile by extending the tenures of loans due for refinancing • Structure debt currency profile to match the currency exposure of the underlying assets to the extent possible • Increase the proportion of fixed interest rate loans to more than 6

  37. Slide 37: Foreign Exchange Profile

    Foreign Exchange Profile Ascott Reit’s Share of Gross Profit Foreign Exchange Movements 1Q 2011 Japan Australia Percentage of Foreign exchange S$2.4m S$0.6m Ascott Reit’s rate movements Singapore Currency Share of Gross from Dec ’10 China S$6.8m Profit to Mar’ 11 S$1.2m 1Q 2011 Philippines Belgium S

  38. Slide 38: Foreign Exchange Management

    Foreign Exchange Management • Cashflows – Manage volatility of foreign currency cash flow from overseas assets • Revenue and operating expenses are mainly in respective local currency • Vietnam – Majority of revenue* and operating expenses are in local currency • Indonesia - Majority of revenue in U

  39. Slide 39: Prospects

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  40. Slide 40: Prospects

    Prospects The Group expects to continue to enjoy RevPAU growth led by Singapore and the United Kingdom (“UK”). We will also continue to enjoy income stability as a result of our geographical diversification across property and economic cycles and the stable base of income from master leases and serv

  41. Slide 41: Summary

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  42. Slide 42: Summary

    Summary Exposure to Demand for serviced residences underpinned by FDI inflows and GDP growth Serviced Residence asset Operated under established international brands: Ascott, Citadines and class Somerset Balanced Significant presence in the Pan Asia region (58%) and added diversification to exposure

  43. Slide 43: Thank You

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  44. Slide 44: Appendix: Ascott Reit Portfolio

    Appendix: Ascott Reit Portfolio 44

  45. Slide 45: Ascott Reit Asia Portfolio

    Ascott Reit Asia Portfolio Australia China Somerset Gordon Heights Somerset St Georges Somerset Grand Fortune Somerset Xu Hui Somerset Olympic Melbourne Terrace Perth Garden Property Beijing Shanghai Tower Property Tianjin • Located in Melbourne’s Central • Located in Perth’s Central • Located along

  46. Slide 46: Ascott Reit Asia Portfolio (cont'd)

    Ascott Reit Asia Portfolio (cont’d) Japan Somerset Azabu East Tokyo Somerset Roppongi Tokyo 18 rental housing properties in Tokyo • Located in Minato-Ku in Tokyo’s • Located in Minato-Ku in Tokyo’s • 509 rental housing units located in eight wards in Tokyo, namely Shinjuku-ku, Central Business Distr

  47. Slide 47: Ascott Reit Asia Portfolio (cont'd)

    Ascott Reit Asia Portfolio (cont’d) Singapore Somerset Liang Court Property Somerset Grand Cairnhill Citadines Mount Sophia Property Singapore Singapore Singapore • Located along River Valley Road • Located along Orchard Road, • Number of Apartment Units: 154 with easy access to the Central Singapor

  48. Slide 48: Ascott Reit Europe Portfolio

    Ascott Reit Europe Portfolio France (in Paris) Citadines Louvre Paris Citadines Trocadéro Paris Citadines Place d’Italie Paris Citadines Montmartre Paris • Number of Apartment Units: 51 • Number of Apartment Units: 97 • Number of Apartment Units: 169 • Number of Apartment Units: 111 • Net Floor Area

  49. Slide 49: Ascott Reit Europe Portfolio (cont'd)

    Ascott Reit Europe Portfolio (cont’d) France (in Paris) France (outside Paris) Citadines Porte de Versailles Citadines Prado Chanot Citadines Les Halles Paris Citadines Croisette Cannes Paris Marseille • Number of Apartment Units: 189 • Number of Apartment Units:80 • Number of Apartment Units: 58 •

  50. Slide 50: Ascott Reit Europe Portfolio (cont'd)

    Ascott Reit Europe Portfolio (cont’d) United Kingdom Citadines Prestige South Citadines Trafalgar Square Citadines Prestige Holborn- Citadines Barbican London Kensington London London Covent Garden London • Number of Apartment Units:129 • Number of Apartment Units: 92 • Number of Apartment Units: 18

  51. Slide 51: Appendix: Brand Introduction

    Appendix: Brand Introduction 51

  52. Slide 52: Ascott The Residence

    Ascott The Residence • Defining Exclusive Living – Luxurious, exclusive, discreet – Located in prime business districts of key cities – Provides efficient business support services, in an exclusive and luxurious environment 52

  53. Slide 53: Citadines Apart'hotel

    Citadines Apart’hotel • Defining Vibrant Living – Vibrancy of independent city living – Oasis of calm in key bustling cities – Personalised conveniences for savvy and vibrant individuals on the go – Range of services and amenities to complement different lifestyles – Modern comforts, business connec

  54. Slide 54: Somerset Serviced Residence

    Somerset Serviced Residence • Defining Balanced Living – A serviced residence for executives and their families looking for work life balance – A stylish home with recreational facilities, lifestyle activities and business support services – A place to make friends, share family experiences, get hel

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