Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Hospitality Trust — Q3 FY2016 Earnings Presentation
35 slides from Frasers Property's earnings presentation, August 2016
Slide 1: Frasers Hospitality Trust Investor Presentation
Frasers Hospitality Trust Investor Presentation August 2016
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: Content
Content 3Q FY2016 Review Our Strategy Market Outlook 3
Slide 4: 3Q FY2016 Review
3Q FY2016 Review Best Western Cromwell, London
Slide 5: FHT – Global Hotel and Serviced Residence Trust
FHT – Global Hotel and Serviced Residence Trust Edinburgh Edinburgh Fraser Suites Edinburgh Fraser Suites Edinburgh Glasgow Europe Fraser Suites Glasgow Edinburgh Glasgow London London Kobe Kobe Fraser Suites Queens Gate ANA Crowne Plaza Kobe Fraser Place Canary Wharf Japan Park Internat
Slide 6: Financial Review – 3Q FY2016
Financial Review – 3Q FY2016 S$m 3Q FY2016 3Q FY2015 Variance GR 31.7 23.7 33.9 % NPI 27.0 19.2 40.5% NPI Margin 85.1% 81.1% 4.0ppt DI 20.9 18.8 11.3% DPS 1.51 cents 1.56 cents 3.0% • GR, NPI and DI boosted by additional properties of Sofitel Sydney Wentworth and Maritim Hotel Dresden. • However, DP
Slide 7: Financial Review – 9M FY2016
Financial Review – 9M FY2016 S$m 9M FY2016 9M FY20151 Variance GR 90.2 74.7 20.6% NPI 75.6 60.7 24.5% NPI Margin 83.8% 81.2% 2.6 ppt DI 63.0 54.7 15.2% DPS 4.56 cents 4.54 cents 0.4% • GR, NPI and DI boosted by Sofitel Sydney Wentworth and Maritim Hotel Dresden. • DPS for 9M FY2016 increased margina
Slide 8: Portfolio Contribution by Country – 3Q FY2016
Portfolio Contribution by Country – 3Q FY2016 Germany Germany 3% 4% Malaysia Malaysia 5% 5% Japan Australia Japan Australia 15% 29% 15% 29% GR NPI S$31.7m S$27.0m United United Kingdom Kingdom 21% 20% Singapore Singapore 27% 27% Variable Fixed Rent Rent 56% 44% 8
Slide 9: Portfolio Highlights By Country – 3Q FY2016
Portfolio Highlights By Country 3Q FY2016 Country GOR1 GOP2 Local Currency Variance Local Currency Variance (m) (yoy) (m) (yoy) Australia 21.6 153.9% 8.6 131.3% Singapore 20.8 5.3% 8.4 8.7% UK 6.3 1.2% 3.7 4.2% Japan 1,583.2 1.3% 418.0 0.7% Malaysia 19.9 5.7% 5.4 1.0% Germany3 1.5 n.a. 0.6 n.a. 1 Gr
Slide 10: Portfolio Highlights By Country – 9M FY2016
Portfolio Highlights By Country 9M FY2016 Country GOR1 GOP2 Local Currency Variance Local Currency Variance (m) (yoy) (m) (yoy) Australia 69.1 156.1% 29.5 131.5% Singapore 63.4 5.0% 25.6 9.0% UK 16.8 5.1% 9.3 8.8% Japan 4,910.5 6.5% 1,316.2 13.5% Malaysia 67.8 0.4% 21.6 0.5% Germany3 1.5 n.a. 0.6 n.
Slide 11: Australia Portfolio Performance
Australia Portfolio Performance AUD (m) 3Q FY2016 3Q FY2015 Variance GOR 21.6 8.5 153.9% GOP 8.6 3.7 131.3% Fraser Suites Sydney (FSS) Sofitel Sydney Wentworth (SSW) Novotel Rockford Darling Harbour (NRDH) • Australia portfolio continued to perform strongly in 3Q FY2016 on the back of higher A
Slide 12: Singapore Portfolio Performance
Singapore Portfolio Performance SGD (m) 3Q FY2016 3Q FY2015 Variance GOR 20.8 19.8 5.3% GOP 8.4 7.7 8.7% Fraser Suites Singapore (FSSG) InterContinental Singapore (ICSG) • Higher GOR and GOP for Singapore properties in 3Q FY2016 was due to the return of full inventory from ICSG. • Post renovatio
Slide 13: UK Portfolio Performance
UK Portfolio Performance GBP (m) 3Q FY2016 3Q FY2015 Variance GOR 6.3 6.3 1.2 % GOP 3.7 3.8 4.2% Fraser Suites Glasgow (FSG) Park International London (PIL) Fraser Suites Edinburgh (FSE) Best Western Cromwell London (BWCL) Fraser Suites Queens Gate (FSQG) Fraser Place Canary Wharf (FPCW)
Slide 14: Japan Portfolio Performance
Japan Portfolio Performance JPY (m) 3Q FY2016 3Q FY2015 Variance GOR 1,583.2 1,604.2 1.3% GOP 418.0 421.0 0.7% ANA Crowne Plaza Kobe (CPK) • In view of continued strong demand, CPK prioritised ADR growth over occupancy growth, resulting in higher RevPAR, up 4.4% yoy in 3Q FY2016. • GOR dropped 1.3
Slide 15: Malaysia Portfolio Performance
Malaysia Portfolio Performance MYR (m) 3Q FY2016 3Q FY2015 Variance GOR 19.9 21.1 5.7% GOP 5.4 5.4 1.0% The Westin Kuala Lumpur (TWKL) • In 3Q FY2016, RevPAR of TWKL was marginally lower due to continued weakness in oil & gas industry and reduced flights into KL by major European airlines. • F&B r
Slide 16: Our Strategy
Our Strategy A». FRASERS HOSPITALITY TRUST
Slide 17: Enhancing Stapled Securityholders’ Returns
Enhancing Stapled Securityholders’ Returns • In line with investment • Asset specific initiatives mandate, to acquire targeting at increasing assets that have potential revenue and cost for growth efficiencies, and reducing property related expenses • Manage forex volatility • Unlock value by • Debt
Slide 18: Yield-Accretive Acquisition of Sofitel Sydney Wentworth
Yield-Accretive Acquisition of Sofitel Sydney Wentworth Location 61 – 101 Phillip Street, Sydney, Australia Grade Luxury Leasehold Tenure 75-year leasehold Gross Floor Area 33,589 sqm Description An iconic heritage 5-star hotel strategically located in Sydney’s core CBD and within a short
Slide 19: Yield-Accretive Acquisition of Maritim Hotel Dresden
Yield-Accretive Acquisition of Maritim Hotel Dresden Devrientstr. 10 and 12, Kleine Location Packhofstr. 17, 01067 Dresden Tenure Freehold Located in Dresden’s historical city centre and within the vicinity of various government and business Description offices and major tourist attractions
Slide 20: Asset Enhancement Initiative for InterContinental Singapore (ICSG)
Asset Enhancement Initiative for InterContinental Singapore (ICSG) • Renovation of ICSG was completed in end-Feb 2016 with a total capex of S$26m. Pre-renovation - ICSG Post-renovation - ICSG 20
Slide 21: Asset Enhancement Initiative for Novotel Rockford Darling Harbour (NRDH)
Asset Enhancement Initiative for Novotel Rockford Darling Harbour (NRDH) • Riding on strong lodging market in Sydney and major infrastructure developments including the new International Convention Centre Sydney and the Barangaroo project which will extend and rejuvenate the Darling Harbour precinct
Slide 22: Asset Enhancement Initiative for NRDH
Asset Enhancement Initiative for NRDH • Guest Room Perspective Before renovation After renovation • Lobby Before renovation After renovation 22
Slide 23: Healthy Balance Sheet
Healthy Balance Sheet As at 30 Jun 2016 S$m Investment Properties 2,012.4 Total Assets 2,076.3 Total Borrowings 790.6 Gearing 38.3% Net Asset Value (NAV) per Stapled Security1 79.97 cents 1 Based on NAV of $1,103.4 million and 1,379.8 million issued Stapled Securities. 23
Slide 24: Capital Management
Capital Management As at 30 Jun 2016 Debt Maturity Profile 600.0 Weighted Average Years to Maturity 2.6 years SGD (m) 561.4 500.0 Unsecured Debt 96.0% 400.0 300.0 Effective Cost of Borrowing1 2.6% 200.0 Interest Cover2 4.57 times 100.0 115.0 117.4 0.0 0.0 FHT’s Issuer Rating by Moody’s Baa2 0.0 2015
Slide 25: Market Outlook
Market Outlook Park International London
Slide 26: Australia
Australia • For the first five months of 2016, Tourism Australia reported 3.3 million international arrivals, representing an 11% growth yoy. Chinese visitors continued to be the top source market, growing 22% yoy. • In Sydney, hotels have maintained high occupancy. Demand is expected to stay health
Slide 27: Singapore
Singapore • Singapore Tourism Board reported a 13% increase in tourist arrivals for Jan-May 2016, fuelled in part by a surge in arrivals of Chinese and Indonesian visitors. • Ongoing pipeline of events include CleanEnviro Summit, OS+H Asia 2016, Medical Fair Asia and Aviation Week MRO Asia-Pacific.
Slide 28: United Kingdom
United Kingdom • According to Visit Britain, inbound visitors were up 3% to 14.1 million for Jan-May 2016. • As Brexit is expected to be a long and complicated process, the uncertainty it brings will have an impact on the UK economy and business sentiment. This could affect demand for corporate trav
Slide 29: Japan
Japan • The Japan National Tourism Organization (JNTO) reported a 28% increase in the number of foreign visitors to the country for the first six months of 2016. • JNTO also reported that Chinese visitors continued to constitute the largest group by country and registered the highest yoy growth of 4
Slide 30: Malaysia
Malaysia • Tourist arrivals grew 2.8% in the first quarter of 20161. • Continuing the upward trend from last year, Chinese tourists increased 35% yoy in Jan-Mar 20161, affirming the positive effects of the government’s e-Visa programme and the joint campaign between Tourism Malaysia and major travel
Slide 31: Germany
Germany • The Federal Statistical Office of Germany reported 15 million overnights by international travellers for Jan-Mar 2016, up 7% yoy. • For the full year, German National Tourist Board predicts 1% to 3% growth in inbound tourism. • Dresden, which is known as Silicon Saxony, manufactures 50% of
Slide 32: Thank you
Thank you um 7 ienenny TRUST
Slide 33: Portfolio Overview
Portfolio Overview Hotel Properties Managed by Third-Party Operators Property Country Description Tenure Class Rooms Only 5-star luxury hotel in InterContinental Singapore to preserve Peranakan Singapore 75 years Luxury 406 Singapore heritage in a shop house style setting Novotel Rockford 4.5-star h
Slide 34: Portfolio Overview
Portfolio Overview Hotel Properties Managed by Third-Party Operators Property Country Description Tenure Class Rooms Heritage-listed and located in the historical city centre of Dresden, Maritim Hotel Dresden Germany Freehold Upscale 328 the capital city of the eastern German state of Saxony ANA Cro
Slide 35: Portfolio Overview
Portfolio Overview Serviced Residences Managed by Frasers Hospitality Property Country Description Tenure Class Rooms Luxurious serviced residences in Upper Fraser Suites Singapore Singapore the prime residential district of 75 years 255 Upscale River Valley First luxury apartments in Sydney Upper F
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