CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — H1 2008 Earnings Presentation
59 slides from CDL Hospitality Trusts's earnings presentation, Jul 30, 2008
Slide 1: Presentation of 2Q and 1H 2008 Results
Presentation of 2Q and 1H 2008 Results 30 July 2008
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 Financial Performance of CDL Hospitality Trusts Plans for 2H 2008 Background and Structure of CDL Hospiality Trusts Strengths of CDL Hospitality Trusts 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary 1
Executive Summary 1 Visitor arrivals for 1H 2008 totaled 5.1 million, representing an 1 increase of 2.9% over the same period last year. 2 Strong underlying performance of CDL-HT Singapore hotels(1): All Singapore Hotels 2Q ’08 2Q ‘07(2) Growth 1H ’08 1H ‘07(2) Growth Occupancy 87.1% 86.0% +1.1 pp 8
Slide 6: Executive Summary 2
Executive Summary 2 Strong 2Q 2008 performance by CDL-HT vs. 2Q 2007 4 - Gross revenue of $29.5 million - up 42% - Net property income of $27.7 million - up 42% - Distributable income per unit of 3.03 cents - up 44% Overall, strong 1H 2008 performance by CDL-HT vs. 1H 2007 5 - Gross revenue of $57.4
Slide 7: Details Of Distribution
Details Of Distribution Distribution for the period 1 Jan 2008 to 30 Jun 2008(1) 5.89 ¢ per unit comprising 5.37¢ of taxable income and 0.52¢ of tax exempt income Closure of books: August 2008 5 pm on 7 August 2008 Mon Tue Wed Thu Fri Sat Sun 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Dividend distri
Slide 8: Financial Performance of CDL Hospitality Trusts
Financial Performance of CDL Hospitality Trusts 8
Slide 9: Singapore – Continuing Growth In 1H 2008
Singapore – Continuing Growth In 1H 2008 Breakdown of Visitor Arrivals To Singapore Growth in Top 10 Visitor For Jan-Jun '08 Arrival Countries for Singapore (Jan-Jun '08 vs. Jan-Jun '07) Indonesia, 855,300 Others, 1,325,398 17% -6.6% Philippines 26% 1.0% USA 5.1% South Korea 12% China, 591,179 0.8%
Slide 10: Slowing Visitor Arrivals Growth For 2Q 2008
Slowing Visitor Arrivals Growth For 2Q 2008 Visitor Arrivals to Singapore Growth Profile of Top 10 Visitor Arrival (Apr, May & Jun - '08 vs '07) Countries for Singapore (2Q '08 vs. 2Q '07) 900,000 -4.1% - 5 .9 % Philippines +0.9% 850,513 +0.8% 850,000 826,051 828,623 0 .5 % USA 819,503 821,247 815,7
Slide 11: Decline In Visitor Arrivals In Jun '08 Offset By Increase In Length Of Stay
With Decline In Visitor Arrivals In Jun ’08 Offset By Increase In Average Length Of Stay Visitor Arrivals Length of Stay (LOS) (1) Visitor Days thousands millions 900 5.0 3.7 880 3.6 -4.1% 4.5 10.3% 860 4.3 6.1% 3.5 851 3.5 840 4.0 3.9 3.4 x = 820 816 3.3 3.3 800 3.5 3.2 780 3.0 3.1 760 3.0 740 2.5
Slide 12: Strong Year-On-Year Hotel Performance: Actual 2Q '08 Vs. Pro Forma 2Q '07
Strong Year-On-Year Hotel Performance: Actual 2Q ’08 Vs. Pro Forma(1) 2Q ’07 CDL-HT Singapore Hotels ARR: 2Q '07 v 2Q '08 S$ RevPAR: 2Q '07 v 2Q '08 +29.4% 300 $255 S$ 250 $197 $222 +30.6% 200 150 200 100 $170 50 0 150 2Q '07 2Q '08 Occupancy: 2Q '07 v 2Q '08 100 89% +1.1pp or 1.3% 88% 87.1% 87% 86.
Slide 13: Gross Revenue, NPI And DPU: Actual 2Q '08 Vs 2Q '07
Gross Revenue, NPI And DPU: Actual – 2Q ’08 Vs 2Q ’07 CDL-HT Singapore Hotels S$’000 Gross Revenue Distribution Per Unit 35,000 +42.4% 29,535 S$ cents 30,000 25,000 20,745 3.50 20,000 +43.6% 3.03 15,000 10,000 3.00 5,000 0 2.50 2Q '07 2Q '08 2.11 2.00 Net Property Income S$’000 +41.7% 1.50 30,000 27
Slide 14: Strong Year-On-Year Hotel Performance: Actual 1H '08 Vs. Pro Forma 1H '07
Strong Year-On-Year Hotel Performance: Actual 1H ’08 Vs. Pro Forma(1) 1H ’07 CDL-HT Singapore Hotels ARR: 1H '07 v 1H '08 S$ RevPAR: 1H '07 v 1H '08 300 +33.5% $251 S$ 250 $215 +34.4% $188 200 200 150 100 $160 50 0 150 1H '07 1H '08 Occupancy: 1H '07 v 1H '08 100 87% +0.5pp or 0.6% 85.8% 86% 85.3% 5
Slide 15: Gross Revenue, NPI And DPU: Actual 1H '08 Vs 1H '07
Gross Revenue, NPI And DPU: Actual – 1H ’08 Vs 1H ’07 CDL-HT Singapore Hotels S$’000 Gross Revenue Distribution Per Unit 70,000 +48.3% 57,429 S$ cents 60,000 50,000 38,724 7.00 40,000 +52.6% 5.89 30,000 20,000 6.00 10,000 0 5.00 1H '07 1H '08 3.86 4.00 Net Property Income S$’000 3.00 60,000 +48.2% 5
Slide 16: 8 Consecutive Quarters Of RevPAR Growth Since IPO In July 2006
8 Consecutive Quarters Of RevPAR Growth Since IPO In July 2006 CDL-HT Singapore Hotels ARR Trends S$ RevPAR Trends 280 260 247 255 S$ 240 240 222 220 216 197 196 200 208 179 220 180 164 160 163 160 154 191 140 200 1Q 2Q 3Q 4Q 176 170 180 151 Occupancy Trends 160 142 % 135 95% 140 126 89.9% 88.6% 90%
Slide 17: Breakdown Of Gross Revenue By Property 2Q '08 Vs 2Q '07
Breakdown Of Gross Revenue By Property Actual 2Q ’08 Vs. Actual 2Q ’07 Gross Revenue from H-REIT Properties S$ M S$ 29.5M 30 +42.4% Key: 5.8 25 20% Novotel Clarke Quay S$ 20.7M 9% 2.6 1.1 Rendezvous Hotel Auckland 1.4 4% 20 7% 2.3 9% 2.8 Orchard Hotel Shopping Arcade 11% 0.9 4% Copthorne King’s Hote
Slide 18: Breakdown Of Gross Rental Revenue By Property For 2Q 2008
Breakdown Of Gross Rental Revenue By Property For 2Q 2008 Grand Orchard Copthorne Hotel Rendez- Novotel Orchard Waterfront Copthorne Shopping vous Clarke Hotel Hotel M Hotel King’s Arcade Hotel Quay Gross Rental Revenue $ 7.1M $6.0M $4.2M $2.8M $1.1M $2.6M $5.8M (Actual for 2Q ‘08) Gross Rental Reve
Slide 19: Growth in CDL-HT Total Property Value
Growth in CDL-HT Total Property Value Valuation of H-REIT Properties S$ M +48.1% 1,800 1,627.8M 1,600 Key: +29.9% 275 16.9% Novotel Clarke Quay 1,400 1,099.4M . Rendezvous 127 7.8% Orchard 1,200 Grand Copthorne Waterfront 846.3M M 120 10.9% 1,000 458 28.1% Copthorne King's Orchard Hotel Shopping Arc
Slide 20: Composition Of CDL-HT Property Value
Composition Of CDL-HT Property Value Valuation at 31 Dec 2006 (S$ M) Valuation at 31 Dec 2007 (S$ M) Orchard Hotel Shopping Orchard Hotel Shopping Rendezvous, Arcade, $35 Arcade, $40 $120 Novotel Clarke Quay, $275 Copthorne King's, $141 Copthorne King's, $101 2% 11% 4% 9% 9% 17% M Hotel, M Hotel, $2
Slide 21: Strong Balance Sheet
Strong Balance Sheet Debt Values (S$ M) S$ 400 Debt / Assets Ratio 323 335 S$ 300 30% 200 25% 100 19.5% 20.3% 0 20% As at 31 Mar '08 As at 30 Jun '08 15% S$ Total Assets (S$ M) 1,800 1,657 1,654 10% 1,600 1,400 1,200 5% 1,000 800 0% 600 400 As at 31 Mar '08 As at 30 Jun '08 200 0 As at 31 Mar '08 As
Slide 22: And Favourable Debt Profile
And Favourable Debt Profile Available Facilities & Maturity Profile Facilities Drawn Down Key Information S$ M S$ M ♦ Fitch Issuer Default Rating: 1,000 1,000 ♦BBB- ♦ Average Cost of Debt 800 800 ♦For S$: Citi, 250 ♦S$220M fixed at 2.43% + margin 600 600 ♦Amounts beyond RBS, 145 S$220M are floating
Slide 23: Plans For 2H 2008
CDL HOSPITALITY TRUSTS Plans For 2H 2008
Slide 24: We Are Still On The Look Out For Acquisitions
We Are Still On The Look Out For Acquisitions Specific Countries of Interest Singapore ▪ Australia ▪ China ▪ Hong Kong ▪ India ▪ Indonesia ▪ Japan ▪ Malaysia ▪ Maldives ▪ New Zealand ▪ Philippines ▪ Thailand ▪ Vietnam ▪ UAE ▪ Taiwan Japan UAE China Taiwan India Hong Kong Thailand Vietnam Malaysia Ph
Slide 25: CDL-HT In A Favourable Position
CDL-HT In A Favourable Position More favourable Buyer of choice + acquisition = Opportunities for CDL-HT climate • Strong balance • More willing sellers • Value buys sheet = better pricing • Strong sponsor • Significantly more support deal flow = more selective 25
Slide 26: Background and Structure of CDL Hospitality Trusts
Background and Structure of CDL Hospitality Trusts 26
Slide 27: Background To CDL-HT
Background To CDL-HT Background Post IPO Performance • IPO on 19 July 2006 Unit price increase IPO to 29 Jul 08 = 74.7% Announcement of Equity High (10 Jul ’07) • Listed on SGX Mainboard 1 Jan 08 to 29 Jul 08 = -37.5% Fund Raising = S$2.28 = S$2.66 $3.00 29 Jul '08 • Sponsored by Millennium Announce
Slide 28: CDL-HT Structure
CDL-HT Structure Sponsor Investors ≈38.7% Holdings of Stapled Securities ≈61.3% 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 Management s
Slide 29: 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 30: Strengths of CDL Hospitality Trusts
Strengths of CDL Hospitality Trusts 30
Slide 31: Strengths Of CDL-HT
Strengths Of CDL-HT 1 Blue Chip Sponsor 2 High Quality, Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 31
Slide 32: Blue Chip Sponsor With Global Brands
Blue Chip Sponsor With Global Brands 3 Global Brands More than 100 hotels in 17 Countries China Indonesia Singapore Egypt Korea Taiwan France Malaysia Thailand New Germany UAE Zealand United Hong Kong Philippines Kingdom United Qatar States Millennium and Copthorne Hotels plc is listed on the London
Slide 33: Strengths Of CDL-HT
Strengths Of CDL-HT 1 Blue Chip Sponsor 2 High Quality, Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 33
Slide 34: 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$114.0M Valuation S$458.0M S$334.0M S$253.0M S$141.0M S$40.3M S$2
Slide 35: Hotels In Strategic Locations
Hotels In Strategic Locations Singapore Hotels New Zealand Hotel Orchard Grand Copthorne M Hotel Novotel Hotel & Copthorne King’s Clarke Quay Rendezvous Shopping Waterfront Hotel Hotel Arcade Hotel Auckland ORCHARD ROAD SINGAPORE RIVER INTEGRATED RESORT SITE CENTRAL BUSINESS DISTRICT BUSINESS & FINA
Slide 36: CDL-HT The Largest Hotel Owner In Singapore
CDL-HT The Largest Hotel Owner In Singapore No. of Rooms in Singapore 2,500 +22.1% 2,351 2,250 2,000 1,926 1,750 1,500 Portfolio at IPO Current portfolio 36
Slide 37: Orchard Hotel, Singapore
Orchard Hotel, Singapore Significant Highlights 653 rooms Located in Orchard Road Newly renovated rooms Significant meeting facilities - large columnless ballroom for large events Appeals to both corporate and leisure segment Accolades Asia Tatler’s Regional Best Restaurants 2008 Singa
Slide 38: 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 STB Singapore Business Events Award finalist, 2007
Slide 39: 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 Best Mid-Range Business Hotel 2005 The Award for Excellence, Best Corporate/
Slide 40: Copthorne King's Hotel, Singapore
Copthorne King’s Hotel, Singapore Significant Highlights 310 rooms Located between CBD and Orchard Road Completed refurbishment in 2004 Strong corporate segment focus Accolades Singapore Tatler’s Best Restaurants 2007 & 2008 – Tien Court Singapore Tatler’s Best Restaurants 2007 & 2008 –
Slide 41: Orchard Hotel Shopping Arcade, Singapore
Orchard Hotel Shopping Arcade, Singapore Net Lettable Area 4,939 sq m CBRE valuation S$40.3M Valuation psm (psf) S$8,159 psm (S$758 psf) % of total valuation ~2% Leasehold Interest 75 years from Listing Date 41
Slide 42: 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 42
Slide 43: 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 Recently concluded a S$18.8 million comprehensive refurbishment program to gu
Slide 44: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 High Quality, Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 44
Slide 45: Strong Historical Growth In Visitor Arrivals
Strong Historical Growth In Visitor Arrivals Visitor Arrivals In Singapore Average Visitor Length of Stay +5.1% +5.4% 12,000 3.7 +9.0% 10,800 3.6 +7.4% 10,275 9,748 3.6 10,000 8,942 8,328 3.5 8,000 Thousands 3.4 3.4 3.4 Days 6,000 3.3 3.2 3.2 3.2 4,000 3.2 3.1 2,000 3.1 0 3.0 2004 2005 2006 2007 200
Slide 46: Singapore – Growth Profile Of Top 10 Countries
Singapore – Growth Profile Of Top 10 Countries Breakdown of Visitor Arrivals To Singapore Jan-Dec '06 to Jan-Dec '07 Year On Year For Jan-Dec '07 Growth in Top 10 Visitor Arrival Countries for Singapore Indonesia, 1,956,293 Others, 2,660,600 2.3% USA 19% 26% 8.4% Philippines 2.1% South Korea 1.5% UK
Slide 47: Singapore – Continuing Growth In 1H 2008
Singapore – Continuing Growth In 1H 2008 Breakdown of Visitor Arrivals To Singapore Jan-Jun '07 to Jan-Jun '08 Year On Year For Jan-Jun '08 Growth in Top 10 Visitor Arrival Countries for Singapore Indonesia, 855,300 Others, 1,325,398 17% -6.6% Philippines 26% 1.0% USA 5.1% South Korea 12% China, 591
Slide 48: Forecast Is For Continuing Growth In Visitor Arrivals
Forecast Is For Continuing Growth In Visitor Arrivals Visitor Arrivals In Singapore Average Visitor Length of Stay(1) CAGR for 2007 18,000 to 2015 = 3.7 17,000 3.6 3.6 16,000 +6.7% 3.6 14,000 +5.1% 3.5 12,000 10,800 3.4 Thousands 10,275 3.4 Days 10,000 8,000 3.3 6,000 3.2 4,000 3.1 2,000 0 3.0 2007
Slide 49: Significant Investments To Attract MICE Business
Significant Investments To Attract MICE Business Marina Resorts Bay World at Sands Sentosa Investment S$5 Billion S$5.2 Billion Amount Hotels 2,500 5-star rooms in three hotel towers 1,800 hotel rooms in 6 hotels 570,000 sqm with MICE space of 110,390 sqm; For Largest column free ballroom in Asia 34
Slide 50: Singapore Positioning Itself As A Leisure Centre
Singapore Positioning Itself As A Leisure Centre… Esplanade - Theatres on the Bay Singapore Flyer Waterfront performing arts theatre, Tallest giant observation wheel in opened in 2005 the world Platform for world class musicals, Expected to draw 2.5m visitors in plays, and art performances i
Slide 51: And A Services Hub
…And A Services Hub Medical Tourism Educational Hub The World Health Organization ranked Singapore as Singapore positions itself as an educational hub, with having the best healthcare system in Asia in 2000 recognized institutions at various levels such as INSEAD, and the University of Chicago G
Slide 52: Potential Supply Of Hotel Rooms Until 2012
Potential Supply Of Hotel Rooms Until 2012 Current and Expected Hotel Room Supply in Singapore No. of Hotel Rooms 50,000 45,000 2008 to 2012 CAGR = 6.5% 700 370 41,468 40,000 3,868 4.8% 35,000 4,252 1,489 30,000 30,789 25,000 2007 2008 2009 2010 2011 2012 Total 2012 Source: CBRE Report dated 11 Febb
Slide 53: Singapore Hotel Rooms Are Still Affordable
Singapore Hotel Rooms Are Still Affordable Comparison of 4 and/or 5 Star Hotels Across Global Cities in 2007 1,600 90% 83.5% 83.6% 1,400 80.9% 85% 76.3% 80% 1,200 75% Occupancy (%) 1,000 ARR (US$) 879 70% 800 65% 600 60% 473 55% 400 218 50% 175 200 45% - 40% New York London Hong Kong Singapore (5 St
Slide 54: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 High Quality, Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 54
Slide 55: Acquisition Opportunities From Multiple Sources
Acquisition Opportunities From Multiple Sources M&C Third Parties Owns / operates > 100 hotels globally Hotel chains seeking to free-up capital to focus on Right of First Refusal(1) to future sales of Singapore management fee income hotels owned by M&C or offers of Singapore hotels Independe
Slide 56: CDLHT Target Markets
CDLHT Target Markets Specific Countries of Interest Singapore ▪ Australia ▪ China ▪ Hong Kong ▪ India ▪ Indonesia ▪ Japan ▪ Malaysia ▪ Maldives ▪ New Zealand ▪ Philippines ▪ Thailand ▪ Vietnam ▪ UAE ▪ Taiwan Japan UAE China Taiwan India Hong Kong Thailand Vietnam Malaysia Philippines Maldives Singap
Slide 57: Strengths Of CDL Hospitality Trusts
Strengths Of CDL Hospitality Trusts 1 Blue Chip Sponsor 2 High Quality, Well Positioned Assets 3 Favourable Industry Fundamentals in Singapore 4 Growth Through Acquisitions 5 Growth Through Active Asset Management 57
Slide 58: Options For Orchard Hotel Shopping Arcade Being Evaluated
Options For Orchard Hotel Shopping Arcade Being Evaluated 58
Slide 59: Thank You
Thank You CDL HOSPITALITY TRUSTS
CDL Hospitality Trusts — H1 2008 Earnings Presentation on 6ix