CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — FY2011 Earnings Presentation
60 slides from CDL Hospitality Trusts's earnings presentation, Jan 30, 2012
Slide 1: Presentation of 4Q 2011 & FY 2011 Results
Presentation of 4Q 2011 & FY 2011 Results 30 January 2012
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 4 Performance of CDL Hospitality Trusts 10 Healthy Financial Position 20 Outlook 23 Management Strategy 32 Annexe 35 Background and Structure of CDL Hospitality Trusts 35 Information on CDL Hospitality Trusts Properties 47 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary: 4Q 2011 Financial Highlights
Executive Summary 1 13.4% increase year-on-year (“y-o-y”) in gross revenue for 4Q 2011 Mainly attributed to: Improved hospitality performance across portfolio; and Contribution from the recently acquired Studio M Hotel (1), which accounted for approximately S$2.7 million of the gross revenue
Slide 6: Executive Summary: FY 2011 Financial Highlights
Executive Summary 2 15.4% increase y-o-y in gross revenue for FY 2011 Mainly attributed to: Organic growth across Singapore and overseas hotels portfolio; Contribution from Studio M Hotel (1); Recording of additional variable income of S$0.84 million from the Australia Hotels (2) Financial
Slide 7: Executive Summary: Singapore and Australia Portfolio
Executive Summary 3 Singapore Hotels (1) achieved RevPAR of S$205 in 4Q 2011, the highest 4Q RevPAR recorded since the inception of CDL-HT, supported by high average occupancy of 88.6% in the quarter Singapore Hotels (1) achieved RevPAR of S$204 in FY 2011, the second highest full year RevPAR re
Slide 8: Executive Summary: Asset Enhancement
Executive Summary 4 Orchard Hotel: Refurbishment of 331-room Claymore Wing completed in FY 2011 Novotel Clarke Quay: Upgrade of bathrooms and room touch ups for 357 guest rooms completed in FY 2011 and remaining 44 guest rooms completed in mid January 2012 Renovation of Premier Lounge comp
Slide 9: Details Of Distribution
Details Of Distribution Distribution for the period 1 Jul 2011 to 31 Dec 2011 (after deducting income retained for working capital) 5.71 S¢ per unit comprising: 5.33 S¢ of taxable income + 0.38 S¢ tax exempt income February 2012 Mon Tue Wed Thu Fri Sat Sun Closure of books: 1 2 3 4 5 5 pm on 7
Slide 10: Performance of CDL Hospitality Trusts
Performance of CDL Hospitality Trusts 10
Slide 11: Singapore Hotels Y-o-Y Performance: 4Q '10 Vs 4Q '11
Singapore Hotels Y-o-Y Performance: 4Q ’10 Vs 4Q ’11 Average Room Rate (ARR) (1) Revenue Per Available Room (RevPAR) (1) S$ +7.7% 250 S$ 232 215 250 +6.0% 225 200 205 200 194 175 150 4Q '10 4Q '11 150 Occupancy (1) 100% -1.4pp 100 90.0% 88.6% 90% 50 80% 70% 0 4Q '10 4Q '11 4Q '10 4Q '11 (1) Excludes
Slide 12: Record High 3Q and 4Q RevPARs
Record High 3Q and 4Q RevPARs CDL-HT Singapore Hotels achieved the highest recorded 3Q and 4Q RevPARs since inception of CDL-HT CDL-HT Singapore Hotels Quarterly RevPAR Comparison (1) 240 222 Record high 3Q Record high 4Q 220 211 208 210 205 205 195 199 200 195 194 191 188 180 174 176 170 161 160
Slide 13: Rate Growth Supported by Strong Occupancies
Rate Growth Supported by Strong Occupancies CDL-HT Singapore hotels has achieved rate growth y-o-y at the back of strong occupancies, benefiting from the structural boost in the tourism landscape CDL-HT Singapore Hotels Quarterly Occupancy, ARR & RevPAR (1) S$ 100% 300 255 247 245 232 236 232 90%
Slide 14: Singapore Hotels Y-o-Y Performance: FY '10 Vs FY '11
Singapore Hotels Y-o-Y Performance: FY ‘10 Vs FY ’11 Average Room Rate (ARR) (1) Steady growth despite an increase in hotel S$ +7.6% room supply in Singapore and room nights 250 232 taken out of the inventory of Orchard Hotel 225 215 during the year for refurbishment Excluding Orchard Hotel, Rev
Slide 15: Second Highest Full Year RevPAR
Second Highest Full Year RevPAR CDL-HT Singapore Hotels achieved the second highest full year RevPAR since inception of CDL-HT CDL-HT Singapore Hotels Annual RevPAR Comparison (1) 240 220 207 Record high 204 200 191 180 (2) 172 160 149 140 120 2007 2008 2009 2010 2011 (1) Singapore Hotels comprise
Slide 16: CDL-HT Y-o-Y Performance: 4Q '10 Vs 4Q '11
CDL-HT Y-o-Y Performance: 4Q ’10 Vs 4Q ’11 Gross Revenue Income Available For Distribution Per Unit (1) S$ '000 S$ cents +13.4% 40,000 37,804 +12.0% 3.50 33,330 3.27 30,000 3.00 2.92 20,000 4Q '10 4Q '11 2.50 Net Property Income S$ '000 2.00 40,000 +12.7% 35,501 31,492 1.50 30,000 20,000 1.00 4Q '10
Slide 17: CDL-HT Y-o-Y Performance: FY '10 Vs FY '11
CDL-HT Y-o-Y Performance: FY ’10 Vs FY ’11 Gross Revenue Income Available For Distribution Per Unit (2) S$ '000 +15.4% S$ cents 150,000 141,107 122,282 13.00 125,000 +9.8% 12.28 100,000 12.00 75,000 50,000 11.18 FY '10 FY '11 11.00 Net Property Income (1) S$ '000 10.00 +17.5% 150,000 135,191 125,000
Slide 18: Gross Revenue Diversified by Geography: 4Q '11
Gross Revenue Diversified by Geography: 4Q ’11 Gross Revenue by Assets and Geography for 4Q 2011 Overseas Portfolio 17.9% Singapore Portfolio 82.1% Australia 11.8% Singapore 82.1% Novotel Brisbane 4.3% Orchard Hotel 19.6% Mercure Brisbane 2.1% Grand Copthorne 16.8% Ibis Brisbane 1.4% Waterfront Merc
Slide 19: Gross Revenue Diversified by Geography: FY '11
Gross Revenue Diversified by Geography: FY ’11 Gross Revenue by Assets and Geography for FY 2011 Overseas Portfolio 19.6% Singapore Portfolio 80.4% Australia 13.2% Singapore 80.4% Novotel Brisbane 4.7% Orchard Hotel 19.3% Mercure Brisbane 2.3% Grand Copthorne 17.1% Waterfront Ibis Brisbane 1.6% Novo
Slide 20: Healthy Financial Position
Healthy Financial Position 20
Slide 21: Healthy Balance Sheet
Healthy Balance Sheet Ample debt headroom for acquisition opportunities as they surface Debt Value (1) Debt to Assets Ratio S$ m 30% 600 532 536 26.5% 25.3% 400 200 20% 0 30 Sep '11 31 Dec '11 Total Assets S$ m 10% 2,500 2,004 2,118 2,000 1,500 1,000 500 0% 30 Sep '11 31 Dec '11 30 Sep '11 31 Dec
Slide 22: Debt Facility Details
Debt Facility Details Unsecured Debt Terms (1) Credit Metrics S$200 million multi-currency Fitch Issuer Revolving Credit committed revolving credit facility Default Rating BBB- Facility from two banks Tenure: 3-year term Interest Cover 9.5 x (2) S$413.6 million medium term notes issued und
Slide 23: Outlook
CDL HOSPITALITY TRUSTS Outlook 23
Slide 24: New Record High Monthly Visitor Arrivals to Singapore
New Record High Monthly Visitor Arrivals to Singapore for Last 24 Months New monthly record high visitor arrivals since December 2009 November marked the tenth month in 2011 where visitor arrivals surpassed the one million mark YTD November 2011 visitor arrivals registered 13.7% y-o-y growth,
Slide 25: Continued Strong Growth in Asian Arrivals
Continued Strong Growth in Asian Arrivals Most of Singapore’s top 10 markets recorded robust growth in excess of 10% y-o-y growth for YTD November 2011 Strength of regional economies have supported the growth in visitors from these countries Geographical Mix of Visitor Arrivals Top 10 Country of
Slide 26: STB Expects Strong Growth in Visitor Arrivals
STB Expects Strong Growth in Visitor Arrivals STB forecasted 12 to 13 million visitors for 2011, after achieving a 20.2% y-o-y increase in 2010 With 11.95 million visitors recorded for YTD Nov 2011 (13.7% y-o-y growth), Singapore is on track to achieve STB’s forecast for 2011 Historical and Fore
Slide 27: Continued Makeover of Singapore into Entertainment Hub
Supported by Continued Makeover of Singapore into a World-Class Entertainment Hub… Integrated Resorts have added diversity and excitement to the tourism landscape… Family, fun & Increasing entertainment quotient sports Shopping & dining Universal Studios Maritime Experiential Museum Shopping and
Slide 28: Transformation into an Asian Home Port for Cruise Liners
…Transformation into an Asian Home Port for World’s Leading Cruise Liners… Growing Cruise Hub Several of the world’s leading cruise companies, such as Star Cruises, Royal Caribbean International, Costa Cruises, Norwegian Cruise Line, P&O and Silversea Cruises, have made Singapore a home port for t
Slide 29: Broadening Travel Options and Lowering Travel Costs
…Broadening Travel Options and Lowering Travel Costs… Strong growth in low cost carrier (“LCC”) passenger traffic Singapore First LCC to fly Singapore- Scoot Æ Sydney starting mid 2012 Singapore Airlines’ Targeting Australian cities, Traffic on LCCs grew 26.3% y-o-y for 2011 new long-haul LCC
Slide 30: Limited New Supply of Rooms in 2012
Limited New Supply(1) of Rooms in 2012 Supply is expected to grow at a CAGR of 4.2% for the next 3 years Lower than the 4-year CAGR of 6.9% expected for visitor arrivals (2) Current and Expected Hotel Room Supply in Singapore No. of Hotel Rooms 3-year CAGR = 4.2% 50,000 1,911 47,129 2,054 45,000
Slide 31: Potential Supply of New Singapore Hotel Rooms Until 2014
Potential Supply of New Singapore Hotel Rooms Until 2014 No. of Horwath Expected No. of Expected Name of Hotel Location Name of Hotel Horwath Rating Location Rms Rating Opening Rms Opening Bay Hotel 333 Mid Tier City Centre 2012 Holiday Inn Express (Orchard) 220 Mid Tier City Centre 2013 Parkroyal a
Slide 32: Management Strategy
CDL HOSPITALITY TRUSTS Management Strategy 32
Slide 33: Management Strategy
Management Strategy Acquiring for Growth Nurturing for Growth Pursue yield accretive, quality assets with investment rigour and discipline Capitalise on revenue management Tap on potential pipeline from M&C / CDL opportunities to improve room yield Tap on global network for 3rd party assets
Slide 34: Asset Enhancement Initiatives: Novotel Clarke Quay
Asset Enhancement Initiatives: Novotel Clarke Quay Upgrade of bathrooms and room touch ups for 357 guest rooms completed in FY 2011 and remaining 44 guest rooms completed in mid January 2012 Renovation of Premier Lounge completed in 3Q 2011 Guest Rooms Before After Premier Lounge Before Before A
Slide 35: Background and Structure of CDL Hospitality Trusts
Background and Structure of CDL Hospitality Trusts 35
Slide 36: Background on CDL-HT
Background on CDL-HT Background Post IPO Performance Unit price increase High (10 Jul ’07) IPO to 27 Jan 2012= +106.6% IPO on 19 July 2006 $3.00 Annoucement of = S$2.66 Novotel Clarke Listed on SGX Mainboard Quay Acquisition 31 Dec'07 27 Jan'12 = S$2.01 = S$2.35 Announcement of Private = S$1.72
Slide 37: CDL-HT Structure
CDL-HT Structure Sponsor Investors ≈35.212% Holdings of Stapled Securities ≈64.788% as at 31 Dec 2011 as at 31 Dec 2011 H-REIT Distributions HBT Management services Management Stapling Deed services M&C REIT M&C Business Trust Management Limited H-REIT HBT(1) and acts on behalf Management Limited (H
Slide 38: 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 ~ £1.4 billion (1) ~S$9.2 billion (1) Debt to assets
Slide 39: 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 subject to a fixed rent floor of S$26.4 m Term of 20 years from Listing with 20 year option Singapore IPO Orchar
Slide 40: Income Stability from Minimum Guaranteed Rent
Income Stability from Minimum Guaranteed Rent Singapore Properties (FY 2011) All CDL-HT Properties (FY 2011) S$ Mil 120 100 80 69.1 Variable Variable Rent (61%) Rent, 60 49.6% 40 20 44.3 Minimum Rent (1) (39%) 0 Overseas Properties (FY 2011) S$ Mil Minimu 30 Minimum Rent (1), (2) 0.8 Variable Rent (
Slide 41: Gross Revenue Breakdown: 4Q '10 Vs 4Q '11
Gross Revenue Breakdown: 4Q ’10 Vs 4Q ’11 Gross Revenue of CDL-HT Properties S$ M 45.0 + 13.4% Key: % Change from 4Q ’10 40.0 S$37.8M Studio M Hotel N.M. S$33.3M 2.7 35.0 Australia Portfolio + 2.2% 4.5 4.4 Rendezvous Hotel Auckland + 4.5% 30.0 2.3 2.2 1.3 Orchard Hotel Shopping Arcade + 3.1% 1.3 2.6
Slide 42: Gross Revenue Breakdown: FY '10 Vs FY '11
Gross Revenue Breakdown: FY ’10 Vs FY ’11 Gross Revenue of CDL-HT Properties S$ M 160.0 + 15.4% S$141.1M Key: % Change from FY ’10 140.0 7.3 Studio M Hotel N.M. S$122.3 18.7 120.0 Australia Portfolio + 24.3% 15.0 9.0 Rendezvous Hotel Auckland + 4.6% 8.6 5.2 100.0 4.7 10.2 Orchard Hotel Shopping Arca
Slide 43: CDL-HT Asset Portfolio – Singapore
CDL-HT Asset Portfolio – Singapore Property Orchard Grand M Hotel Copthorne Novotel Studio M Orchard Hotel Singapore Hotel Copthorne King’s Hotel Clarke Quay Shopping Portfolio Waterfront Hotel Arcade Number of 656 574 413 310 401 360 N/A 2,714 Rooms Valuation at 31 S$450.0 M S$350.0 M S$232.0 M S$1
Slide 44: CDL-HT Asset Portfolio – Overseas
CDL-HT Asset Portfolio – Overseas Property Rendezvous 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$90.0M A$ 71.7M A$ 61.0M A$ 43.0M A$ 25.5M A$ 20
Slide 45: CDL-HT Asset Portfolio
CDL-HT Asset Portfolio Valuation by Property and Geography (1) Overseas Portfolio 17.5% Singapore Portfolio 82.5% Australia 13.0% Singapore 82.5% Novotel Brisbane 4.6% Orchard Hotel 22.2% Mercure & Ibis Brisbane 4.0% Grand Copthorne 17.2% Mercure Perth 2.8% Waterfront Ibis Perth 1.7% Novotel Clarke
Slide 46: Increase in CDL-HT Total Property Value
Increase in CDL-HT Total Property Value Valuation of CDL-HT Properties S$ M + 13.6% Key: 2,029.8M + 19.0% 2,000 - 9.1% + 1.4% 163 Studio M + 47.8% 1,787.1M 1,628.8M 265 Australia Hotel Portfolio . 1,481.2M 1,501.6M 253 128 90 Rendezvous Hotel Auckland 1,500 + 30.2% 40 99 55 93 110 54 141 43 54 129 1
Slide 47: Information on CDL Hospitality Trusts Properties
Information on CDL Hospitality Trusts Properties 47
Slide 48: Hotels in Strategic Locations
Hotels in Strategic Locations Singapore Hotels New Zealand Hotel Orchard Hotel & Grand Copthorne Novotel Shopping Arcade Waterfront Hotel Clarke Quay Rendezvous Hotel Auckland H H H H H SINGAPORE RIVER CENTRAL MARINA BAY BUSINESS DISTRICT SANDS H H BUSINESS & FINANCIAL CENTRE SITE Copthorne King’s S
Slide 49: Hotels in Strategic Locations
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 49
Slide 50: 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 Green Mark (Gold) by Building Construction Authority 2011 Singapore Service Class Certif
Slide 51: 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 Green Mark (Gold)
Slide 52: 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 SHA Singapore Gree
Slide 53: Copthorne King's Hotel, Singapore
Copthorne King’s Hotel, Singapore Significant Highlights Boutique-style business hotel with 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 events hotel host Acco
Slide 54: 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 Room touch ups, upgrading of all bathrooms and renovation of Premier Lounge o
Slide 55: Studio M Hotel, Singapore
Studio M Hotel, Singapore Significant Highlights 360 urban-inspired lofts with elevated ceilings Newly-built asset completed in March 2010 Stylish and contemporary design set to capture growing business and leisure segments Vibrant lifestyle options near the Robertson Quay precinct and in pr
Slide 56: Orchard Hotel Shopping Arcade, Singapore
Orchard Hotel Shopping Arcade, Singapore Net Lettable Area 5,956.1 sq m CBRE’s valuation S$54.8M Valuation psm (psf) S$9,201 psm (S$855 psf) % of total valuation ~2.7% Leasehold Interest 75 years from Listing Date 56
Slide 57: Rendezvous Hotel Auckland, New Zealand
Rendezvous 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 Accredited Green Globe 2011 Restaurant award for Pacific Restaurant Category Winner
Slide 58: Novotel, Mercure and Ibis Hotels, Brisbane
Novotel, Mercure and Ibis Hotels, Brisbane Novotel Hotel Significant Highlights Novotel Hotel 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 con
Slide 59: Mercure and Ibis Hotels, Perth
Mercure and Ibis Hotels, Perth Mercure Hotel Mercure Hotel Significant Highlights Mercure Hotel 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 Hotel to the
Slide 60: Thank You
CDL HOSPITALITY TRUSTS THANK YOU 60
CDL Hospitality Trusts — FY2011 Earnings Presentation on 6ix