Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Ascendas Hospitality Trust — Q2 FY2016/17 Earnings Presentation
31 slides from Singapore Exchange's earnings presentation, Nov 9, 2016
Slide 1: 2Q FY2016/17 Financial Results Presentation
2Q FY2016/17 Financial Results Presentation 9 November 2016 SYDNEY • MELBOURNE • BRISBANE • BEIJING • TOKYO • OSAKA• SINGAPORE 1
Slide 2: Disclaimer
Disclaimer This presentation shall be read in conjunction with A-HTRUST’s Unaudited Financial Results for the Second Quarter ended 30 September 2016 (“2Q FY2016/17”) a copy of which is available on www.sgx.com or www.a-htrust.com. This presentation may contain forward-looking statements that involve
Slide 3: Contents
Contents 1 Key Highlights 2 Financial Review 3 Portfolio Performance 4 Capital Management 5 Looking Ahead 3
Slide 4: Overview of Ascendas Hospitality Trust
Overview of Ascendas Hospitality Trust Beijing S$824 million • Novotel Beijing Sanyuan Market capitalisation • Ibis Beijing Sanyuan as at 30 September 2016 Tokyo • Hotel Sunroute Ariake and S$1,525 million Oakwood Apartments Ariake Tokyo Portfolio valuation as at 31 March 2016 Osaka • Hotel Sunroute
Slide 5: Key Highlights
1 Key Highlights 5
Slide 6: 2Q FY2016/17 Financial Highlights
2Q FY2016/17 Financial Highlights 2Q FY2016/171 1H 2016/171 Gross Revenue S$55.6m 2.5% y-o-y S$107.9m 0.9% y-o-y Net Property Income (“NPI”) S$24.3m 7.7% y-o-y S$46.9m 6.6% y-o-y Income available for distribution S$16.3m 0.3% y-o-y S$31.5m 0.8% y-o-y Adjusted Income available for S$15.5m 0.1% y-o-y
Slide 7: 2Q FY2016/17 Portfolio Highlights
2Q FY2016/17 Portfolio Highlights AOR1 ADR1 RevPAR1 0.8pp AUD 0.6% AUD Stable Australia 84.2% y-o-y y-o-y y-o-y 169 142 4.6pp RMB 1.2% RMB 3.9% China 91.5% y-o-y y-o-y y-o-y 407 372 Applies to Oakwood Apartments only JPY 0.4% Japan Decline in both occupancy and ADR 9,819 y-o-y Singapore Declin
Slide 8: Financial Review
2 Financial Review 8
Slide 9: Results Summary – 2Q FY2016/17
Results Summary – 2Q FY2016/17 2nd Quarter S$’ million FY2016/17 FY2015/16 Change3 Gross • Overall improvement in 55.6 54.2 2.5% Revenue underlying performance of portfolio driven by Net Property Hotel Sunroute Osaka 24.3 22.6 7.7% Income Namba supported by appreciation of JPY and NPI Margin 43.8% 4
Slide 10: Results Summary – 1H FY2016/17
Results Summary – 1H FY2016/17 1st Half S$’ million FY2016/17 FY2015/16 Change3 Gross • Mainly due to overall 107.9 107.0 0.9% Revenue underlying portfolio performance Net Property improvement and 46.9 44.0 6.6% Income stronger JPY NPI Margin 43.5% 41.1% 2.4pp Income available 31.5 31.3 0.8% for dis
Slide 11: Distributable Income and DPS history
Distribution History Acquisition of Osaka Namba Divestment of Pullman & Equity Fund Raising Cairns International 20.0 1.80 1.45 1.60 1.38 1.38 1.27 1.30 1.28 1.30 1.29 1.40 Distributable Income (S$ million) 1.24 1.25 16.2 15.0 1.20 DPS (Singapore cents) 15.5 15.5 14.5 14.6 14.5 14.1 14.0 14.2 1.00 1
Slide 12: Distribution Details
Distribution Details Distribution for the period 1 April 2016 to 30 November 2016 September 2016: 2.67 Singapore cents per S M T W T F S stapled security 1 2 3 4 5 6 7 8 9 10 11 12 9 Nov Notice of Books Closure Date 13 14 15 16 17 18 19 2016 20 21 22 23 24 25 26 15 Nov 27 28 29 30 2016, Ex-Distribut
Slide 13: Portfolio Performance
3 Portfolio Performance 13
Slide 14: Performance by Country
Performance by Country Improvement in Japan and China portfolios more than compensate for weaker performances from Australia and Singapore Gross Revenue Net Property Income 50.0 15.0 0.2% 12.7 12.6 0.6% 40.0 38.1 37.9 10.0 30.0 S$ million S$ million 41.6% 6.3 20.0 5.0 4.4 9.3% 33.1% 3.5 3.2 8.9 12.4
Slide 15: NPI Breakdown by Country and Contract Type
NPI Breakdown by Country and Contract Type Well diversified portfolio with good mix of master lease arrangements and management contracts 2Q FY15/16 Net Property Income 2Q FY16/17 Net Property Income Master Lease: Master Lease: 35% 39% Singapore Singapore 15% 13% 2Q FY15/16 2Q FY16/17 Japan Net Prop
Slide 16: Stable performance from Australia portfolio
Stable performance from Australia portfolio 2nd Quarter New air crew in Novotel Sydney Central and hotel AUD FY16/17 FY15/16 Change in Melbourne drive earnings, while higher public demand benefitted Pullman Sydney Hyde Park AOR 84.2% 83.4% 0.8pp Courtyard by Marriott North Ryde was undergoing AD
Slide 17: Courtyard by Marriott North Ryde
Courtyard by Marriott North Ryde The rooms in the hotel have all been refurbished to create a modern and cozy feel to improve the experience of guests staying in the hotel The refurbishment is completed in time for peak season and will allow the hotel to compete better amidst increased competition i
Slide 18: Pullman & Mercure Brisbane King George Square
Pullman & Mercure Brisbane King George Square Previously only for private events, the rooftop bar of the hotel was recently renovated and is now available daily to public to improve earnings potential “Sixteen Antlers” as the bar is named, spot a trendy setup and is perched atop the 16-storey hotel,
Slide 19: Encouraging results from China portfolio
Encouraging results from China portfolio 2nd Quarter Volume strategy and targeting higher yielding RMB FY16/17 FY15/16 Change segments benefitted hotels AOR 91.5% 86.9% 4.6pp Leasing of restaurant in Ibis Beijing Sanyuan and costs containment in both hotels boost NPI ADR 407 412 1.2% Depreciat
Slide 20: Strong performance for Japan portfolio
Strong performance for Japan portfolio 2nd Quarter Hotel Sunroute Osaka Namba contributed higher JPY FY16/17 FY15/16 Change NPI this quarter (up 54% y-o-y in JPY terms ) as a result of improved rent structure RevPAR1 9,819 9,861 0.4% Performance of Oakwood Apartments Ariake Tokyo was affected by
Slide 21: Quality Portfolio: RevPAR Growth
Quality Portfolio Majority of hotels recorded RevPAR growth Australia China 30.0 Outperform STR Comp Set1 Underperform STR Comp Set 20.0 17.0 y-oy RevPAR Growth (%) 9.5 10.0 8.0 6.5 4.2 4.9 3.9 4.8 2.3 1.2 0.0 (0.3) (2.6) (2.7) (5.3) (5.6) (10.0) (9.0) (10.2) (16.0) (20.0) Pullman Sydney Novotel Syd
Slide 22: Capital Management
cA tg —+.% Capital Management
Slide 23: Healthy Balance Sheet
Healthy Balance Sheet Total assets of S$1,661.7 million as at 30 September 2016 As at As at 30 September 2016 30 June 2016 Borrowings S$538.6m S$535.1m Total Assets S$1,661.7m S$1,609.4m A-HTRUST Gearing1 32.4% 33.2% - A-HREIT Gearing 25.8% 26.0% - A-HBT Gearing 36.3% 37.5% Weighted average interest
Slide 24: Balanced Debt Profile
Balanced Debt Profile Debt Maturity Profile Debt Facilities 250 Weighted average debt to maturity Term loan facilities: as at 30 September 2016: 2.8 years 3 to 5-year term loan facilities 200 202 Revolving credit facility (“RCF”): 150 3-year S$60 million RCF 75 S$ million S$1 billion Debt Issu
Slide 25: Prudent Capital Management
Prudent Capital Management Debt Currency Profile Interest Rate Profile RMB Floating 4.1% 3.1% JPY AUD 36.5% Total Debt as at 43.0% Total Debt as at 30 Sep 2016: 30 Sep 2016: S$538.6m S$538.6m SGD Fixed 16.5% 96.9% 25
Slide 26: Looking Ahead
5 Looking Ahead 26
Slide 27: Australia – Strong Inbound Benefits Sydney and Melbourne
Australia – Strong Inbound Benefits Sydney and Melbourne In Australia, the growth trend in international arrivals is expected to continue in the near term as the AUD remained relatively low compared to recent years The hotel markets in Sydney and Melbourne are expected to benefit from the modest
Slide 28: China – Domestic Travelling Supports Sector
China – Domestic Travelling Supports Sector Although inbound arrivals growth for Beijing remained subdued, domestic travelling is expected to continue supporting the hotel market in the capital city of China However, the Beijing hotel sector in general is expected to remain competitive in the ne
Slide 29: Japan – Outlook Remains Healthy
Japan – Outlook Remains Healthy Inbound arrivals to Japan continued to grow, improving by 24.1% y-o-y for the nine month period ended 30 September 20161 The construction of a new terminal at Kansai International Airport (Osaka) for international low cost carriers is expected to be completed in M
Slide 30: Singapore – Market Remains Challenging
Singapore – Market Remains Challenging In Singapore, the large hotel room supply pipeline as well as weakness in corporate demand is expected to continue exerting downwards pressure on the performances of hotels in Singapore in general As such, the hotel sector in Singapore is expected to remain
Slide 31: Ascendas Hospitality Trust Management contact details
Ascendas Hospitality Fund Management Pte. Ltd. Ascendas Hospitality Trust Management Pte. Ltd. Managers of A-HTRUST 1 Fusionopolis Place #10-10 Galaxis Singapore 138522 Tel: +65 6774 1033 Email: info-aht@ascendas-singbridge.com www.a-htrust.com 31
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