CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — Q3 2007 Earnings Presentation
51 slides from CDL Hospitality Trusts's earnings presentation, Oct 31, 2007
Slide 1: Presentation of 3Q 2007 Results
Presentation of 3Q 2007 Results 31 October 2007
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-
Slide 3: Table Of Contents
Table Of Contents Highlights Results for 3Q 2007 Annex ♦ Background and Structure of CDL Hospitality Trusts ♦ Strengths of CDL Hospitality Trusts 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary (I)
Executive Summary (I) 1 After successful equity fund raising, low debt to total assets of 23% as of 30 Sep 2007 - At 45% debt to total assets, debt headroom of more than $550 million for acquisitions available 2 Visitor arrivals for the first 9 months of 2007 was approximately 7.6 million representi
Slide 6: Executive Summary (II)
Executive Summary (II) 5 Strong underlying performance of CDL-HT Singapore hotels(1)(2): IPO Hotels(3) All Hotels 3Q ‘07 3Q ‘06 Growth 3Q ‘07 3Q ‘06(4) Growth Occupancy 89.4% 85.5% 3.9 pp 89.9% 82.8% 7.1 pp Average daily rate S$ 201 S$ 165 21.8% S$ 196 S$ 163 20.3% RevPAR S$ 179 S$ 141 27.4% S$ 176
Slide 7: Results for 3Q 2007 and Year-to-Date 2007
Results for 3Q 2007 and Year-to-Date 2007 7
Slide 8: Gross Revenue and NPI – Projection vs Actual
Gross Revenue and NPI – Projection vs Actual Projection 1H 2007 vs S$ Actual 1H 2007 50,000 Projection Year-to-date 2007 Gross Rev = +38.8% NPI = +42.1% 38,724 36,288 S$ vs Actual Year-to-date 2007 40,000 27,898 25,535 75,000 30,000 Gross Rev = +49.0% 20,000 S$ NPI = +52.9% 62,694 65,000 58,889 10,0
Slide 9: DPU – Projection vs Actual
DPU – Projection vs Actual Projection 1H 2007 vs Actual 1H 2007 Cents Projection YTD Sep 2007 vs Period = +40.4% 9.0 Annualized = +40.2% Actual YTD Sep 2007 7.78 8.0 Cents 7.0 9.0 Period = +49.9% 6.0 5.55 8.32 Annualized =+49.9% 5.0 3.86 8.0 4.0 2.75 3.0 2.0 S$ 7.0 1.0 6.22 0.0 6.0 5.55 Projection 1
Slide 10: Gross Revenue, NPI and DPU: Actual 3Q '06 vs 3Q '07
Gross Revenue, NPI and DPU: Actual 3Q ’06 vs 3Q ’07 Gross Revenue S$ 30,000 Distribution Per Unit +112.9% 23,970 S$ 25,000 20,000 2.50 2.36 15,000 +108.8% S$ 11,260 10,000 2.00 5,000 0 3Q '06 3Q '07 1.50 1.13 Net Property Income 1.00 S$ 30,000 25,000 +118.8% 22,602 0.50 20,000 15,000 10,330 0.00 10,
Slide 11: Gross Revenue and NPI: Pro-Forma 3Q '06 vs 3Q '07
Gross Revenue and NPI: Pro-Forma(1) 3Q ’06 vs 3Q ’07 S$ Gross Revenue S$ Net Property Income 30,000 +70.0% 25,000 +74.3% 22,602 S$ 25,000 23,970 20,000 20,000 15,000 12,965 14,101 15,000 10,000 10,000 5,000 5,000 0 0 3Q '06 3Q '07 3Q '06 3Q '07 (1) H-REIT acquired its IPO properties on 19 July 2006.
Slide 12: Strong Year-On-Year Growth: 3Q '06 vs 3Q '07
Strong Year-On-Year Growth: Pro-Forma(1) 3Q ’06 vs Actual 3Q ’07 CDL-HT Singapore Hotels ARR: 3Q '06 v 3Q '07 S$ RevPAR: 3Q '06 v 3Q '07 IPO hotels = +21.8% 250 All hotels = +20.3% $201 $196 S$ IPO hotels = +27.4% 200 $165 $163 200 All hotels = +30.6% $179 $176 150 180 100 50 160 $141 $135 0 140 3Q
Slide 13: Strong Year-On-Year Growth: YTD Sep '06 vs YTD Sep '07
Strong Year-On-Year Growth: Pro-Forma(1) YTD Sep ’06 vs Pro-Forma YTD Sep ’07 CDL-HT Singapore Hotels ARR: YTD '06 v YTD '07 RevPAR YTD '06 v YTD '07 S$ IPO hotels = +21.0% 250 All hotels = +20.4% S$ $196 $194 200 $162 $161 180 IPO hotels = +28.7% All hotels = +30.3% $168 $168 150 100 160 50 140 $13
Slide 14: Breakdown Of Revenue By Property
Breakdown Of Revenue By Property S$ mn Revenue from H-REIT Properties 30 S$24.0m 25 +113% Novotel Clarke Quay Rendezvous Hotel Auckland 16% 3.8 20 Orchard Hotel Shopping Arcade 9% 2.2 4% 0.9 Copthorne King’s Hotel 10% 2.4 15 S$ 11.3m M Hotel 15% 3.6 Grand Copthorne Waterfront 6% 0.7 10 11% 1.3 Orcha
Slide 15: Breakdown Of Gross Rental Revenues By Property
Breakdown Of Gross Rental Revenues By Property Grand Orchard Copthorne Hotel Rendez- Novotel Orchard Waterfront Copthorne Shopping vous Clarke Hotel Hotel M Hotel King’s Arcade Hotel Quay Gross rental revenue (Actual for $ 17.6m $13.8 m $9.9 m $6.8 m $2.7 m $6.8 m $5.2 m(3) YTD Sep ‘07) Gross rental
Slide 16: Strong Balance Sheet
Strong Balance Sheet Debt Values (S$ Mn) S$ 700 Debt / Assets Ratio 609 600 S$ 500 50% 400 323 44.6% 300 S$ 45% 200 40% 100 35% 0 As at 30 Jun '07 As at 30 Sep '07 30% 25% 23.0% S$ Total Assets (S$ Mn) 1,420 20% 1,409 1,410 15% 1,400 10% 1,390 1,380 5% 1,370 1,365 0% 1,360 As at 30 Jun '07 As at 30
Slide 17: Growth in CDL-HT Total Property Value
Growth in CDL-HT Total Property Value Valuation of H-REIT Properties S$(‘000) +26.1% 1,600 1,386.5 m 1,400 Key: +29.9% 224 16.2% Novotel Clarke Quay 1,099.4 m Rendezvous 1,200 . 127 9.2% Orchard 120 10.9% Grand Copthorne Waterfront 1,000 846.3 m M 399 Copthorne King's 28.8% 800 385 35.0% Orchard Hot
Slide 18: Annex A - Background and Structure of CDL Hospitality Trusts
Annex A - Background and Structure of CDL Hospitality Trusts 18
Slide 19: Background To CDL-HT
Background To CDL-HT Background Post IPO Performance IPO on 19 July 2006 Unit price increase High (10 Jul ’07) IPO to 30 Oct 07 = 188.0% Announcement of Equity = S$2.66 Listed on SGX Mainboard 1 Jan 07 to 30 Oct 07 = 39.8% Fund Raising = S$2.28 $3.00 Sponsored by Millennium & Announcement of C
Slide 20: CDL-HT Structure
CDL-HT Structure Sponsor Investors ≈38.4% Holdings of Stapled Securities ≈61.6% 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 21: 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 22: Annex B - Strengths of CDL Hospitality Trusts
Annex B - Strengths of CDL Hospitality Trusts 22
Slide 23: 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 23
Slide 24: 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 Listed on the London Stock Exchange with market capitalisat
Slide 25: 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 25
Slide 26: 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 653 550 413 310 N/A 455 398 2,779 Rooms NZ$114.0m Valuation S$399.0m S$284.2m S$200.6m S$112.5m S$39.0m S$2
Slide 27: 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 28: CDL-HT The Largest Hotel Owner In Singapore
CDL-HT The Largest Hotel Owner In Singapore No. of Rooms in Singapore 2,500 2,324 +20.7% 2,250 2,000 1,926 1,750 1,500 Portfolio at IPO Current portfolio 28
Slide 29: 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 ♦ Singapore’s Best Restaurants 2007 – Hua Ting Restaur
Slide 30: Grand Copthorne Waterfront, Singapore
Grand Copthorne Waterfront, Singapore Significant Highlights ♦ 550 rooms – 11 new rooms added on 1 January 2007 to room inventory from conversion of certain areas into hotel rooms ♦ Located between CBD and Orchard Road ♦ Close to proposed BFC and IR ♦ One of the largest conference facilities in Sing
Slide 31: 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 32: 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 ♦ Wine & Dine Singapore’s Best Restaurants 2006 – Tien Court ♦ American Express Top Restaurant Award 2005 – Princes
Slide 33: Orchard Hotel Shopping Arcade
Orchard Hotel Shopping Arcade Net Lettable Area 4,886 sq m CBRE valuation S$39.0 m Valuation psm (psf) S$7,981 psm (S$742 psf) % of total valuation ~3% Lease Term 75 years from Listing Date 33
Slide 34: 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 34
Slide 35: Novotel Clarke Quay, Singapore
Novotel Clarke Quay, Singapore Significant Highlights ♦ Prime superior hotel with 398 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 36: 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 36
Slide 37: Strong Historical Growth In Visitor Arrivals
Strong Historical Growth In Visitor Arrivals Visitor Arrivals In Singapore Average Visitor Length of Stay +4.6% 12,000 3.5 +9.0% +7.4% 10,200 9,748 3.4 3.4 10,000 8,942 3.4 8,328 8,000 Thousands 3.3 Days 6,000 3.2 3.2 3.2 3.2 4,000 3.1 3.1 2,000 3.0 0 2001 2002 2003 2004 2005 2006 2004 2005 2006 200
Slide 38: Growth From Many Of The Top Visitor Arrival Countries
Growth From Many Of The Top 10 Visitor Arrival Countries Breakdown of Visitor Arrivals To Singapore Jan-Sep '06 to Jan-Sep '07 Year On Year For Jan-Sep '07 Growth in Top 10 Visitor Arrival Countries for Singapore Indonesia, 1,399,573 Others, 1,991,667 1.5% 19% USA 26% 15.2% Philippines 2.2% South Ko
Slide 39: 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 CAGR for 2007 18,000 to 2015 = 17,000 3.7 16,000 +6.6% 3.6 3.6 14,000 +4.6% 3.5 12,000 3.4 3.4 Thousands 10,200 3.4 9,748 Days 10,000 8,000 3.3 6,000 3.2 4,000 3.1 2,000 3.0 0 2005 2006
Slide 40: Significant Investments To Attract MICE Business
Significant Investments To Attract MICE Business Marina Resorts Bay World at Sands Sentosa Investment S$5 Billion S$5.2 Billion Amount Hotels 2,500 5-star rooms in three hotel towers 1,800 hotel rooms in 6 hotels 570,000 sqm with MICE space of 110,390 sqm; For Largest column free ballroom in Asia 34
Slide 41: Singapore Positioning Itself As A Leisure Centre
Singapore Positioning Itself As A Leisure Centre… Esplanade - Theatres on the Bay Singapore Flyer Waterfront performing arts theatre, Tallest giant observation wheel in opened in 2005 the world Platform for world class musicals, Expected to draw 2.5m visitors in plays, and art performances i
Slide 42: …And A Services Hub
…And A Services Hub Medical Tourism Educational Hub The World Health Organization ranked Singapore as having Singapore positions itself as an educational hub, with the best healthcare system in Asia in 2000 recognized institutions at various levels such as INSEAD, and the University of Chicago G
Slide 43: Limited Supply Of Hotel Rooms In The Immediate Future
Limited Supply Of Hotel Rooms In The Immediate Future Current and Expected Hotel Room Supply in Singapore The Business Times, 2006 to 2010 CAGR = +5.9% citing Merrill Lynch 40,000 Total Supply Growth (2006 to 2010) = +25.7% research (18 June 2007), noted that 1,885 38,295 demand for hotel Total Dail
Slide 44: Potential For Average Room Rates To Rise
Potential For Average Room Rates To Rise Average Room Rates in Singapore relative to Regional Cities (1) (2) Regional Upper Tier Hotel Market Comparision 85% 350 81% 90% 74% 75% 70% 80% 300 312 Average Room Rates (S$) 70% 250 Occupancies (%) 60% 236 200 50% 202 180 40% 150 155 30% 100 20% 50 10% 0 0
Slide 45: 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 45
Slide 46: 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 management fee income Right of First Refusal(1) Independent, single hotel owners lacking scale and Future sales of Singapore hotels ow
Slide 47: 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 Japan UAE Middle China China East Thailand Hong India Hong Kong VietnamKong Thailand Vietnam Malaysia
Slide 48: 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 48
Slide 49: Continuing Shift To Higher Yielding Corporate Segment
Continuing Shift To Higher Yielding Corporate Segment(1) (2) Evolution of Market Mix 94.2 100 85.8 Hotel Rooms Revenue (S$ m) 90 72.9 80 70 60.5 60 67.1 71.2% 43.4 66.1 77.0% 50 50.4 69.1% 40 40.4 66.8% 30 29.0 66.8% 20 22.5 30.9% 27.1 28.8% 10 14.4 33.2% 20.1 33.2% 19.7 23.0% 0 2003 2004 2005 2006
Slide 50: Asset Enhancement Opportunities
Asset Enhancement Opportunities Opportunities For Asset Enhancement Grand Copthorne Orchard Hotel Waterfront Shopping Arcade 5th and 6th Floors - Entire building currently bare 50
Slide 51: Thank You
Thank You CDL HOSPITALITY TRUSTS
CDL Hospitality Trusts — Q3 2007 Earnings Presentation on 6ix