Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Hospitality Trust — Investor Presentation (August 2019)
40 slides from Frasers Property's investor presentation, August 2019
Slide 1: Frasers Hospitality Trust Investor Presentation
Frasers Hospitality Trust Investor Presentation August 2019
Slide 2: Important notice
Important notice Certain statements in this presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual res
Slide 3: Contents
Contents Overview of FHT Financial Review: 3Q and 9M FY2019 Our Strategy Market Outlook 3
Slide 4: Overview of FHT
Overview of FHT 4 Fraser Suites Sydney
Slide 5: Global Hotel and Serviced Residence Trust
Global Hotel and Serviced Residence Trust Stapled Group Comprises FH-REIT and FH-BT1 Hospitality and hospitality-related assets located globally, Investment Mandate excluding Thailand Sponsor and Strategic Partner Frasers Property – 24.6% TCC Group Investments – 37.3% For FH-REIT: Frasers Hosp
Slide 6: Independent Platform Providing Flexibility and Access
Independent Platform Providing Flexibility and Access Strong Developer-Sponsor in Frasers Property One of Singapore’s largest real estate groups with strong real estate capabilities and proven track record in REIT management. Independent Hospitality Trust Platform Best of both worlds – leverage
Slide 7: Resilient and Diversified Portfolio Across Geography
Resilient and Diversified Portfolio Across Geography Edinburgh ▪ Fraser Suites Edinburgh Glasgow Europe ▪ Fraser Suites Glasgow UK Germany London Kobe ▪ ibis Styles London Gloucester Road ▪ ANA Crowne Plaza Kobe ▪ Park International London Japan ▪ Fraser Place Canary Wharf ▪ Fraser Suites Queens Gat
Slide 8: Financial Review: 3Q and 9M FY2019
Financial Review: 3Q and 9M FY2019 InterContinental Singapore
Slide 9: Book Value of Portfolio as at Jun 2019
Book Value of Portfolio as at 30 Jun 2019 Portfolio Value Germany Country 4% as at 30 Jun 2019 Malaysia 6% Australia AUD803.1m Japan 9% Australia Singapore SGD835.4m 32% Portfolio UK GBP191.0m UK Value Japan JPY16,128.5m 14% S$2.4b Malaysia MYR420.9m Germany EUR65.8m Singapore 35% Total SGD2,363.7m
Slide 10: Financial Review for 3Q FY2019
Financial Review for 3Q FY2019 SGD m 3Q FY2019 3Q FY2018 Variance Gross Revenue (GR) 35.0 38.2 8.4% Net Property Income (NPI) 25.4 28.5 11.0% Distribution Income (DI) 19.2 21.1 9.0% Distribution Per Stapled Security (DPS) 1.0086 cents 1.1226 cents 10.2% GR and NPI declined year-on-year (yoy) by 8.
Slide 11: Financial Review for 9M FY2019
Financial Review for 9M FY2019 SGD m 9M FY2019 9M FY2018 Variance GR 110.3 117.2 5.9% NPI 81.6 87.7 6.9% DI 61.6 66.4 7.2% DPS 3.2474 cents 3.5459 cents 8.4% GR and NPI declined yoy by 5.9% and 6.9% respectively due mainly to weaker performance of the Malaysia and Australia portfolios which were p
Slide 12: Portfolio Contribution by Country for 3Q FY2019
Portfolio Contribution by Country for 3Q FY2019 Germany Germany 4% 6% Malaysia Malaysia 4% 5% Japan 14% Australia Australia Japan 29% 38% 16% GR NPI SGD 35.0 m SGD 25.4 m UK 18% UK 19% Singapore Singapore 25% 22% 12
Slide 13: Portfolio Highlights By Country for 3Q FY2019
Portfolio Highlights By Country for 3Q FY2019 3Q FY2019 Country Gross Operating Revenue (GOR) Gross Operating Profit (GOP) Variance Local Currency Variance Local Currency (m) (yoy) (m) (yoy) Australia 29.0 5.4% 10.8 14.8% Singapore 20.5 0.4% 8.9 3.8% UK 7.2 6.0% 3.9 1.4% Japan 1,609.6 2.0% 491.8 2.8
Slide 14: Portfolio Highlights By Country for 9M FY2019
Portfolio Highlights By Country for 9M FY2019 9M FY2019 Country Gross Operating Revenue (GOR) Gross Operating Profit (GOP) Variance Local Currency Variance Local Currency (m) (yoy) (m) (yoy) Australia 96.4 0.8% 41.1 3.8% Singapore 64.3 0.3% 26.7 0.9% UK 19.3 9.3% 9.8 6.2% Japan 4,696.6 1.6% 1,317.0
Slide 15: Australia Portfolio Performance
Australia Portfolio Performance AUD m 3Q FY2019 3Q FY2018 Variance GOR 29.0 30.6 5.4% GOP 10.8 12.7 14.8% • Novotel Melbourne on Collins (NMOC) • Novotel Sydney Darling Square (NSDS) • Sofitel Sydney Wentworth (SSW) • Fraser Suites Sydney (FSS) - The Australia portfolio’s GOR and GOP declined yoy by
Slide 16: Singapore Portfolio Performance
Singapore Portfolio Performance SGD m 3Q FY2019 3Q FY2018 Variance GOR 20.5 20.6 0.4% GOP 8.9 8.6 3.8% • InterContinental Singapore (ICSG) • Fraser Suites Singapore (FSSG) - The Singapore portfolio’s performance remained stable in 3Q FY2019. GOR declined marginally by 0.4% yoy while GOP improved by
Slide 17: UK Portfolio Performance
UK Portfolio Performance GBP m 3Q FY2019 3Q FY2018 Variance GOR 7.2 6.8 6.0% GOP 3.9 3.8 1.4% • ibis Styles London Gloucester Road (ISLG) • Park International London (PIL) • Fraser Place Canary Wharf (FPCW) • Fraser Suites Edinburgh (FSE) • Fraser Suites Glasgow (FSG) • Fraser Suites Queens Gate (FS
Slide 18: Japan Portfolio Performance
Japan Portfolio Performance JPY m 3Q FY2019 3Q FY2018 Variance GOR 1,609.6 1,577.5 2.0% GOP 491.8 478.5 2.8% • ANA Crowne Plaza Kobe (CPK) - CPK’s GOR increased 2.0% yoy due to higher room and food and beverage (F&B) revenue while its GOP increased 2.8% due mainly to lower staff costs. - During the
Slide 19: Malaysia Portfolio Performance
Malaysia Portfolio Performance MYR m 3Q FY2019 3Q FY2018 Variance GOR 20.0 19.1 4.7% GOP 5.0 4.8 4.4% • The Westin Kuala Lumpur (TWKL) - TWKL’s GOR and GOP increased yoy by 4.7% and 4.4% respectively, mainly driven by higher revenue from rooms and F&B outlets. - TWKL’s RevPAR increased 6.4% on the b
Slide 20: Our Strategy
Our Strategy Fraser Suites Glasgow
Slide 21: Enhancing Stapled Securityholders' Returns
Enhancing Stapled Securityholders’ Returns Capital Management Active Asset Management • Target at increasing revenue • Manage forex volatility and cost efficiencies, and • Debt cost of funding reducing property related • Taxation expenses Acquisition Growth AEI Value Creation • In line with investme
Slide 22: Recent Asset Enhancement Initiatives
Recent Asset Enhancement Initiatives ibis Styles London Gloucester Road (ISLG) – formerly Best Western Cromwell London Conversion from Best Western (franchised) to ibis Styles (AccorHotels managed) since 1 Jan 2018. Renovation to reposition the hotel in line with the ibis Styles brand was comple
Slide 23: Recent Asset Enhancement Initiatives
Recent Asset Enhancement Initiatives Novotel Sydney Darling Square (NSDS) – formerly Novotel Rockford Darling Harbour Franchise agreement with AccorHotels has been converted to management agreement since 1 Jan 2018. Renovation for all guest rooms, the lobby, all-day dining restaurant and meeting
Slide 24: Other Potential Asset Enhancement Initiatives
Other Potential Asset Enhancement Initiatives ANA Crowne Plaza Kobe Park International London Novotel Melbourne on Collins ANA Crowne Plaza Kobe Park International London Novotel Melbourne on Collins 24
Slide 25: Defensive Acquisition of Novotel Melbourne on Collins
Defensive Acquisition of Novotel Melbourne on Collins Location 270 and 233-239 Collins Street, Melbourne, Victoria, Australia Tenure Freehold Gross Floor 20,860 sq m (224,535 sq ft) Area Description Located along the prime Collins Street, in the heart of Melbourne CBD Surrounded by Grade A
Slide 26: Yield-Accretive Acquisition of Maritim Hotel Dresden
Yield-Accretive Acquisition of Maritim Hotel Dresden Devrientstr. 10 and 12, Kleine Packhofstr. 17, Location 01067 Dresden Tenure Freehold Located in Dresden’s historical city centre; within the vicinity of various government and Description business offices and major tourist attractions Dir
Slide 27: Yield-Accretive Acquisition of Sofitel Sydney Wentworth
Yield-Accretive Acquisition of Sofitel Sydney Wentworth Location 61 – 101 Phillip Street, Sydney, Australia Grade Luxury Leasehold 75-year leasehold Tenure Gross Floor 33,589 sqm Area An iconic heritage 5-star hotel strategically located in Sydney’s core CBD and within a Description short
Slide 28: Disciplined Approach in Capital Management
Disciplined Approach in Capital Management As at 30 Jun 2019 Balance Sheet Hedging Investment Properties SGD 2,128.6 m JPY 76.8% Property, Plant and SGD 235.1 m Equipment GBP 52.9% Total Assets SGD 2,457.6 m EUR 29.3% Total Borrowings SGD 858.0 m AUD 27.4% Gearing 35.0% MYR 22.6% Net Asset Value per
Slide 29: Prudent Risk Management
Prudent Risk Management Debt Maturity Profile As at 30 Jun 2019 (excludes short-term loans) Weighted Average Years 2.14 years1 SGD m to Maturity 450.0 400.0 385.8 Unsecured Debt 96.2% 350.0 300.0 Effective Cost of Borrowing 2.5% 250.0 200.0 183.1 Borrowings on Fixed Rates 69.4% 150.0 120.0 120.0 100
Slide 30: Market Outlook
Market Outlook 30 The Westin Kuala Lumpur
Slide 31: Australia
Australia For the first 5 months of 2019, Tourism Australia reported a yoy increase of 2.2% in international arrivals to 3.9 million, with Chinese visitors recording a 0.4% yoy decline. However, in Sydney, RevPAR has been declining on the back of lower occupancy and ADR. With the room supply in
Slide 32: Singapore
Singapore For the period from Jan to May 2019, the Singapore Tourism Board (STB) recorded a 1.5% yoy growth in international visitor arrivals to 7.8 million. China, Indonesia and India were the top three source markets for tourism, accounting for 42.8% of total visitor arrivals. For 2019, STB fo
Slide 33: UK
UK According to VisitBritain, the UK welcomed 7.8 million overseas visitors for the first 3 months of 2019, down 1.0% yoy. Business visits were 4.0% below levels seen in 2018 while holiday visits were up 7.0% yoy. Going forward, uncertainty relating to global trade tensions and Brexit are antici
Slide 34: Japan
Japan For the first 5 months of 2019, Japan National Tourism Organization recorded a yoy growth of 4.2% in foreign visitors to 13.8 million. Upcoming major events including the Rugby World Cup 2019 and the 2020 Tokyo Olympics are expected to provide opportunities for hotels to capture the growin
Slide 35: Malaysia
Malaysia For the first 3 months of 2019, Tourism Malaysia reported a 2.7% growth in tourist arrivals to 6.7 million, with Singapore, Indonesia and China being the biggest contributors of tourist arrivals to Malaysia. For 2019, Tourism Malaysia aims to achieve tourist arrivals of 28.1 million.
Slide 36: Germany
Germany For the first 5 months of 2019, the Federal Statistical Office of Germany recorded a yoy increase of 2.3% in the number of overnight stays by domestic and foreign visitors1. Dresden, the capital city of the Free State of Saxony, continues to grow its pipeline of MICE events for 2019 and
Slide 37: Experience matters.
Experience matters. 37
Slide 38: Hotel Properties Managed by Third-Party Operators
Hotel Properties Managed by Third-Party Operators Property Country Description Tenure Class Rooms Novotel Strategically located within Melbourne on Australia Melbourne’s core CBD area Freehold Upscale 380 Collins along Collins Street 4.5-star hotel located within Novotel Sydney Mid- Australia close
Slide 39: Hotel Properties Managed by Third-Party Operators and Frasers Hospitality
Hotel Properties Managed by Third-Party Operators and Frasers Hospitality Property Country Description Tenure Class Rooms Elegant hotel ideally located in Park International Mid- UK the heart of Kensington and 75 years1 171 London scale Chelsea ANA Crowne Unique panoramic view of Kobe Upper Japan Fr
Slide 40: Serviced Residences Managed by Frasers Hospitality
Serviced Residences Managed by Frasers Hospitality Property Country Description Tenure Class Rooms First luxury apartments in Fraser Suites Sydney designed by Upper Australia 75 years1 201 Sydney internationally renowned Upscale architects Luxurious serviced residences in Fraser Suites Upper Singapo
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