Capitaland Ascott Trust · SGX:HMN
Capitaland Ascott Trust — Ascott Residence Trust — Q3 2011 Earnings Presentation
56 slides from Capitaland Ascott Trust's earnings presentation, November 2011
Slide 1: Ascott Residence Trust Presentation to Investors
Ascott Residence Trust Presentation to Investors November 2011
Slide 2: Agenda
Agenda • Introduction • 3Q 2011 Results Highlights • Portfolio Performance • Portfolio Information • Capital and Risk Management • Prospects • Summary • Appendices 2
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
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$
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 seasonal
Slide 6: 3Q 2011 Results Highlights
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Slide 7: 3Q 2011 vs 3Q 2010 Performance
3Q 2011 vs 3Q 2010 Performance 3Q 2011 3Q 2010 Change Revenue (S$m) 73.0 46.5 +57% Gross Profit (S$m) 40.0 21.1 +90% Revenue Per Available Unit 146 132 +11% (S$/day) – serviced residences • Increase in revenue and gross profit mainly due to the additional revenue of S$31.7 million and additional gro
Slide 8: 3Q 2011 vs 3Q 2010 Performance
3Q 2011 vs 3Q 2010 Performance 3Q 2011 3Q 2010 Change Unitholders’ Distribution (S$m) 25.3 12.0 +112% Distribution Per Unit (S cents) 2.23 1.85 +21% • Distribution per Unit was higher mainly due to the yield accretive transaction (comprising the Acquisitions and divestment of Ascott Beijing on 1 Oct
Slide 9: 3Q 2011 vs Forecast Performance
3Q 2011 vs Forecast Performance 3Q 2011 Forecast(1) Change Revenue (S$m) 73.0 74.1 -1% Gross Profit (S$m) 40.0 39.5 +1% Revenue Per Available Unit 146 138 +6% (S$/day) – serviced residences • Revenue was lower by S$1.1 million as compared to the forecast as the forecast included a S$1.1 million cont
Slide 10: 3Q 2011 vs Forecast Performance
3Q 2011 vs Forecast Performance 3Q 2011 Forecast(1) Change Unitholders’ Distribution (S$m) 25.3 23.0 +10% Distribution Per Unit (S cents) 2.23 2.03 +10% • Distribution per Unit was higher than the forecast due to higher gross profit mainly from Singapore serviced residences and lower finance costs.
Slide 11: Portfolio Performance
Portfolio Performance • Master Leases (20 properties) • Management Contracts with Minimum Guaranteed Income (8 properties) • Management Contracts (36 properties) 11
Slide 12: Master Leases
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Slide 13: Overview of Master Leases
Overview of Master Leases • 20 out of Ascott Reit’s 64 serviced residences are on master leases. • These serviced residences contributed 25% of the Group’s gross profit for 3Q 2011. • These master leases have an average weighted remaining tenure of about 7 years. 13
Slide 14: Master Leases
Master Leases Citadines Citadines Citadines Citadines Citadines Citadines Somerset Louvre Prestige Place Croisette Arnulfpark Kurfursten- Salcedo Paris Les Halles d’Italie Cannes Munich damm Property Paris Paris Berlin Makati Revenue Gross Profit 3Q 2011 3Q 2010 Forecast1 3Q 2011 3Q 2010 Forecast1 S
Slide 15: Management Contracts with Minimum Guaranteed Income
Management Contracts with Minimum Guaranteed Income 15
Slide 16: Overview of Management Contracts with Minimum Guaranteed Income
Overview of Management Contracts with Minimum Guaranteed Income • 8 out of Ascott Reit’s 64 serviced residences are on management contracts that provide minimum guaranteed income. • These serviced residences contributed 21% of the Group’s gross profit for 3Q 2011. • These management contracts have a
Slide 17: United Kingdom
United Kingdom1 Citadines Citadines Citadines +11% Citadines Barbican Prestige Prestige Trafalgar 210 London Holborn- South Square Covent Kensington London 190 Garden London S$m London +9% 15 11.1 12.1 +9% 10 5.7 6.2 5 0 Revenue Gross Profit RevPAU S$ Forecast 2 3Q 2011 Continued market improvement
Slide 18: Belgium
Belgium1 Citadines Sainte- Citadines Toison Catherine Brussels d’Or Brussels S$m -7% 3 2.8 2.6 -5% 83 79 2 1 0.5 0.5 0 Revenue Gross Profit RevPAU S$ Forecast 2 3Q 2011 Decrease in revenue mainly due to the postponement of renovation for Citadines Sainte-Catherine Brussels. The forecast assumed that
Slide 19: Spain
Spain1 +5% Citadines Ramblas S$m Barcelona 141 148 4 +5% 3 2.0 2.1 +9% 2 1.1 1.2 1 0 Revenue Gross Profit RevPAU S$ 2 Forecast 3Q 2011 Revenue for 3Q 2011 included a top-up by the property manager of S$0.1 million as assumed in the forecast. 1 Spain portfolio was acquired on 1 October 2010. Informat
Slide 20: Vietnam
Vietnam Somerset West Lake Hanoi -31% S$m -18% -23% 1.5 -10% 1.1 -14% 101 1.0 91 1.0 0.9 70 0.6 0.7 0.6 0.5 0.0 Revenue Gross Profit RevPAU2 S$ 3Q 2010 Forecast1 3Q 2011 As compared to the forecast, revenue and gross profit decreased due to weaker performance and a lower USD exchange rate than that
Slide 21: Management Contracts
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Slide 22: Australia
Australia +22% 191 +25% Somerset Somerset 153 157 St Georges Gordon Heights Terrace Perth Melbourne S$m +20% +20% 3 2.4 2.0 2.0 2 +120% +120% 1.1 1 0.5 0.5 0.7 0 Revenue Gross Profit RevPAU3 S$ 3Q 2010 Forecast 1 3Q 2011 Excluding one-off reversal2 Revenue and RevPAU increased mainly due to the stre
Slide 23: China
China -11% Somerset Somerset Somerset Xu Hui Olympic Grand -13% Shanghai Tower Fortune -47% Property Garden S$m 125 122 Tianjin Property -10% 121 109 10 8.9 Beijing -45% 5.2 4.7 -11% 5 5.1 3.1 1.9 1.7 1.8 0 Revenue Gross Profit RevPAU3 S$ 3Q 2010 Forecast 1 3Q 2011 Same store2 Lower performance in S
Slide 24: Indonesia
Indonesia Ascott Somerset Jakarta Grand Citra +34% S$m -25% -22% Jakarta 6.0 +30% 5.2 5.0 105 97 99 4.0 4.3 3.9 3.9 -14% 76 74 -14% 2.0 1.4 1.4 1.5 1.2 1.1 0.0 Revenue Gross Profit RevPAU3 S$ 3Q 2010 Forecast1 3Q 2011 Same store2 On a same store basis, revenue decreased as compared to 3Q 2010 due to
Slide 25: Japan
Japan -24% -22% Somerset Azabu Somerset 18 rental housing -11% East Tokyo Roppongi properties in S$m -7% Tokyo Tokyo 148 153 4.3 4.5 116 4.0 -19% 4 -4% 2.7 2.2 2.3 2.2 2 2.1 1.6 0.9 0.8 0.5 0 1 RevPAU3 Revenue 1 Gross Profit S$ 3Q 2010 Forecast 2 3Q 2011 Serviced residence contribution Revenue decre
Slide 26: Philippines
Philippines -2% +5% Ascott Makati Somerset Millennium 165 161 S$m 153 +8% Makati 8 7.1 7.7 7.7 +11% 4 2.8 3.1 3.1 0 Revenue Gross Profit RevPAU2 S$ 3Q 2010 Forecast 1 3Q 2011 Revenue and RevPAU increased mainly due to higher demand for serviced residences from the oil and gas and pharmaceutical indu
Slide 27: Singapore
Singapore +16% +2% 271 243 240 249 Somerset Somerset Citadines Mount 215 Grand Cairnhill Liang Court Sophia Property S$m Property +13% 15 13.1 +41% 11.6 10 9.3 9.3 10.2 +44% +18% 6.1 7.2 5.0 5.6 5 5.1 0 Revenue Gross Profit RevPAU3 S$ 3Q 2010 Forecast 1 3Q 2011 Same store2 On a same store basis, Rev
Slide 28: Vietnam
Vietnam -15% Somerset Somerset Somerset Somerset Ho Grand Hanoi Hoa Binh Chancellor Chi Minh -18% S$m -13% Hanoi Court Ho Chi City 112 12 +7% Minh City 116 119 10.5 9.1 -10% 95 8.5 101 8.4 7.3 5.8 6 5.2 5.2 4.8 4.3 0 Revenue Gross Profit RevPAU3 S$ 3Q 2010 Forecast 1 3Q 2011 Same store2 On a same st
Slide 29: Portfolio Information
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Slide 30: Geographical Diversification
Geographical Diversification Ascott Reit’s Share of Asset Values As at 30 September 2011 Australia Belgium Spain 1.9% 1.6% 1.6% Germany Singapore 2.1% 23.0% Japan 10.3% France United 21.2% Kingdom 16.1% Indonesia 2.4% Vietnam 7.9% Philippines China 6.6% 5.3% Total Total = = S$2.70 S$2.70 billion bil
Slide 31: Balance of Income Stability and Growth
Balance of Income Stability and Growth YTD 30 September 2011 Gross Profit Master Leases 26% Management Contracts 55% Management Contracts with Minimum Guaranteed Income 19% Total Total = = S$117.5 S$117.5 million million Both Both master master leases leases and and serviced serviced residence resid
Slide 32: Apartment Rental Income By Market Segment
Apartment Rental Income By Market Segment Pan-Asian Portfolio Europe Portfolio YTD 30 September 2011 YTD 30 September 2011 Master Leisure Lease 10% 1% Leisure* 30% Master Leases 40% Corporate Travel 89% Corporate Travel* 30% * Rental income from Leisure and Corporate Travel segments in Europe relate
Slide 33: Apartment Rental Income by Length of Stay
Apartment Rental Income by Length of Stay1 YTD 30 September 2011 > 12 1 week or months less 24% 21% 6 to 12 months 8% < 1 month 25% 1 to 6 months 22% Average Average apartment apartment rental rental income income by by length length of of stay stay is is more more than than 4.5 4.5 months months 1
Slide 34: 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 YTD 30 September 2011 Healthcare % of Total Others Corporate Client Industry Apartment Real estate/ 2% Industrial 4% Rental Income Lodging 17% 14% 1 Citadines
Slide 35: Capital & Risk Management
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Slide 36: 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 30 30 September September 2011 2011 2500 Debt S$1,111.7m (41.1%) 2000 Ascott Reit’s 1500 proportionate share of
Slide 37: Debt Profile
Debt Profile Maturity Profile Currency Profile As at 30 September 2011 As at 30 September 2011 S$’m S$393.1m S$’m 400 35% 600 S$525.2m 48% S$308.5m S$284.5m 28% 500 300 26% 400 S$280.2m 200 300 25% S$123.2m 11% 200 100 S$111.5m S$113.5m 10% 10% S$77.5m 100 7% S$2.4m S$3.8m <1% <1% 0 0 2011 2012 2013
Slide 38: Interest Rate Profile
Interest Rate Profile Interest Rate Profile As at 30 September 2011 Floating S$364.7m (33%) Floating with interest rate caps, Fixed S$231.7m (21%) S$515.3m (46%) Effective Effective Borrowing Borrowing Rate Rate of of 3.2% 3.2% Interest Interest Cover Cover Ratio Ratio of of 4.0x 4.0x 38
Slide 39: Foreign Exchange Profile
Foreign Exchange Profile Ascott Reit’s Share of Gross Profit Foreign Exchange Movements YTD 30 September 2011 Japan Australia Percentage of Foreign exchange S$6.6m S$2.3m Ascott Reit’s rate movements Singapore Currency Share of Gross from Dec ’10 China S$21.4m Profit to Sep’ 11 S$4.9m YTD 30 Sep 201
Slide 40: 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
Slide 41: Prospects
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Slide 42: Prospects
Prospects Global economic conditions are expected to remain uncertain for the rest of 2011. The Group’s income stability remains sustainable supported by the income from our Europe properties which are on master leases and serviced residence contracts with minimum guaranteed income. Our income stabi
Slide 43: Summary
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Slide 44: 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 (57%) and added diversification to ex
Slide 45: Thank You
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Slide 46: Appendix: Ascott Reit Portfolio
Appendix: Ascott Reit Portfolio 46
Slide 47: 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
Slide 48: 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
Slide 49: 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
Slide 50: 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 Title: Freehol
Slide 51: Ascott Reit Europe Portfolio (cont'd)
Ascott Reit Europe Portfolio (cont’d) France (in Paris) France (outside Paris) Citadines Prestige Les Halles Citadines Porte de Versailles Citadines Prado Chanot Citadines Croisette Cannes Paris Paris Marseille Number of Apartment Units: 189 Number of Apartment Units: 80 Number of Apartment Un
Slide 52: 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
Slide 53: Appendix: Brand Introduction
Appendix: Brand Introduction 53
Slide 54: 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 54
Slide 55: 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
Slide 56: 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
Ascott Residence Trust — Q3 2011 Earnings Presentation on 6ix