Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Hospitality Trust — FY2021 Earnings Presentation
43 slides from Frasers Property's earnings presentation, Nov 18, 2021
Slide 1: Frasers Hospitality Trust
FRASERS HOSPITALITY TRUST 18 November 2021
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
Sf) K A a a ~~ Contents Overview of FHT Financial Review & Distribution Key Market Updates Portfolio Performance Divestment of Sofitel Sydney Wentworth Risk & Capital Management Market Outlook
Slide 4: Overview of FHT
7~ ERASERS HOSPITALITY TRUST ANA Crowne Plaza Kobe
Slide 5: Portfolio locations
Edinburgh ▪ Fraser Suites Edinburgh Glasgow Europe ▪ Fraser Suites Glasgow UK Germany London Kobe ▪ ibis Styles London Gloucester ▪ ANA Crowne Road Japan Plaza Kobe ▪ Park International London ▪ Fraser Place Canary Wharf ▪ Fraser Suites Queens Gate Asia Dresden Malaysia ▪ Maritim Hotel Dresden Singa
Slide 6: Financial Review & Distribution
2 J faces TRUST Financial Review & Distribution The Westin Kuala Lumpur
Slide 7: Financial results and distribution
• ▲ ▲ • ▼ • ▼ 1. Under the master lease agreements, the total rental income is based on the operating performance of the properties, subject to a minimum fixed rent. For 2H FY2020, as a result of COVID-19’s negative impact on the operating performance of certain properties, part of the variable rent
Slide 8: Net property income and expenses
• ▼ ▼ • ▼ • ▼ ▼ 1. The Managers’ management fees were paid in cash since fourth quarter of FY2020.
Slide 9: Portfolio contribution by country for FY2021
Germany, Malaysia, 7™% Singapore, 6% @ 19% Japan, 0) 9% GR S$85.5 m UK, 13% Australia, 46% Portfolio contribution by country for FY2021 Germany, Malaysia, 4% Singapore, 7% \ | 21% Japan, 8% NPI S$57.6 m UK, 17% Australia, 43%
Slide 10: Key Market Updates
2 GF eae TRUST Key Market Updates Maritim Hotel Dresden
Slide 11: Global tourism recovery
• • Source: UNWTO (UN World Tourism Organization) APAC (Asia and the Pacific) - includes countries such as Australia, China, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Singapore, Thailand and Vietnam. 11
Slide 12: Vaccination and travel reopening
• • • • • • • • • Sources: Our World in Data, “Share of people vaccinated against COVID-19”; USA Today, “Singapore to allow quarantine-free travel from the US starting in mid-October”, 9 Oct 2021; CNBC, “Sydney to allow quarantine-free international travel for Australians from next month”, 15 Oct 20
Slide 13: Singapore and Australia market performance
• • • • All average daily rates (ADR) and revenues per available room (RevPAR) are in local currencies; ADR, Occupancy and RevPAR data from STR. Sources: CBRE, “Singapore Hotel Marketview”, 1H 2021 and Straits Times, “Sydney reopens as Australia looks to live with COVID-19”, 11 Oct 2021 13
Slide 14: UK and Japan market performance
• • • • All average daily rates (ADR) and revenues per available room (RevPAR) are in local currencies; ADR, Occupancy and RevPAR data from STR. Sources: ABC News, “Freedom Day celebrated by revellers in England, with end of most COVID-19 restrictions”, 20 Jul 2021 and Xinhua Net, “Japan to extend d
Slide 15: Portfolio Performance
2 a eae TRUST Portfolio Performance ve — « bis Novotel Melbourne on Collins i=
Slide 16: Portfolio RevPAR performance
All average daily rates (ADR) and revenues per available room (RevPAR) are in local currencies. 16
Slide 17: Portfolio performance by country
• 1. In the UK, all 6 properties were closed during the third quarter of FY2020. In Malaysia, the Westin Kuala Lumpur’s operations were temporarily suspended in May 2020 and resumed operation in Dec 2020. 2. Not meaningful.
Slide 18: Portfolio performance by country
• 1. In the UK, all 6 properties were closed during the third quarter of FY2020. In Malaysia, the Westin Kuala Lumpur’s operations were temporarily suspended in May 2020 and resumed operation in Dec 2020. 2. Not meaningful.
Slide 19: Singapore
Singapore * InterContinental Singapore (ICSG) - Fraser Suites Singapore (FSSG) > Singapore portfolio’s revenue per available room (RevPAR): 16.8% YoY higher in 2H FY2021. RevPAR for FY2020 had benefitted from ICSG’s deal to be a Stay-Home facility from Mar-Sep 2020. ICSG has re-secured the Stay-Home
Slide 20: Australia
Australia - Novotel Melbourne on Collins (NMOC) * Novotel Sydney Darling Square (NSDS) * Sofitel Sydney Wentworth (SSW) * Fraser Suites Sydney (FSS) > Australia portfolio’s RevPAR in 2H FY2021 was 90.5% higher YoY, driven by improving portfolio occupancy and average daily rate (ADR). The improvement
Slide 21: United Kingdom
• • • • • • > > > 1. Source: CNN, “England dropped most of its COVID restrictions in July. One month on, here’s how it’s going”, 20 Aug 2021 2. Source: Our World in Data, “Share of people vaccinated against COVID-19”, 30 Sep 2021 21
Slide 22: Japan
• 1. Source: Our World in Data, “Share of people vaccinated against COVID-19”, 30 Sep 2021 22
Slide 23: Malaysia
Malaysia * The Westin Kuala Lumpur (TWKL) > TWKUs RevPAR for 2H FY2021 increased >100% YoY. This was due to a temporary suspension of its operations for close to 5 months in 2020. > TWKL resumed operations on 18 Dec 2020 and the temporary suspension had helped to conserve cashflow for the property.
Slide 24: Germany
• > > Note: Maritim Hotel Dresden has been excluded from reporting of ADR, occupancy and RevPAR due to limitations imposed by the master lease agreement. 1. Source: Our World in Data, “Share of people vaccinated against COVID-19”, 30 Sep 2021 24
Slide 25: Portfolio value as at Sep 2021
Portfolio value as at 30 Sep 2021 Portfolio Value Country as at 30 Sep 2024 Singapore $$798.0 m Australia A$737.5 m UK £173.0 m Japan ¥16,200.0 m Malaysia RM368.0 m Germany EURS9.3 m T L $$2,248.4 m Germany, Malaysia, 4% “<i : ingapore, Japan, \\ 36% 9% Portfolio value UK, $$2.25 b 14% Australia, 32
Slide 26: Change in portfolio value
Change in portfolio value Valuation as at Valuationas at yiance in Variance in FY2021: FY2020: Country 30 Sep 2021 30 Sep 2020 S$ Local $$2.25 b $$2.25 b (S$ m) (S$ m) Currency * a . fT Singapore 798.0 798.0 0.0% 0.0% hm Australia 723.8 709.9 1.9% 1.6% | | UK 316.5 306.3 3.3% -0.3% i Japan 198.1 207
Slide 27: Divestment of Sofitel Sydney Wentworth (SSW)
2 GF eae TRUST Divestment of Sofitel Sydney Wentworth (SSW) Sofitel Sydney Wentworth
Slide 28: Divestment of Sofitel Sydney Wentworth
• • • 1. All currency conversions in this document are based on an assumed exchange rate of S$1.00 = A$1.0190 as at 30 Sep 2021 2. Includes Savill’s valuation of the freehold reversionary interest of A$11.0 m as at 30 Sep 2021 28
Slide 29: Rationale and financial impact of divestment
• • 1 • • • 2 • • • 3 • • 1. Based on SSW’s historical FY2019 and FY2021 NPI. FY2020 NPI figure was not used as it is not representative, given the effects of the COVID-19 pandemic 2. After taking into account total reversionary interest acquisition cost (A$11.2 m) and total divestment cost (A$21.3
Slide 30: Risk & Capital Management
> ERASERS HOSPITALITY TRUST. Park International London
Slide 31: Capital management
1. MAS’ leverage limit for S-REITs has been set at 50% since Apr 2020. 2. The impact of FRS 116 Leases has been excluded for the purpose of computing gearing and effective cost of borrowing. 3. Interest coverage ratio is as prescribed under the MAS’ Property Funds Appendix (last revised on 16 Apr 20
Slide 32: Market Outlook
FRASERS HOSPITALITY TRUST Fraser Suites Sydney
Slide 33: Singapore market outlook
• • • • Sources: Singapore Tourism Board; CBRE, “Singapore Hotel Marketview”, 1H 2021 and JLL, “Asia Pacific Hotels Digest”, 2Q 2021
Slide 34: Australia market outlook
• • • • • Sources: Tourism Australia; Straits Times, “Sydney reopens as Australia looks to live with COVID-19”, 11 Oct 2021; Euronews, “International tourists won’t be returning to Australia until 2022”, 5 Oct 2021; The Urban Developer, “Domestic travel cannot sustain hotel market”, 3 Mar 2021 and H
Slide 35: UK market outlook
• • • Sources: VisitBritain, “UK-wide campaign to boost domestic breaks ramps up as summer holidays get underway”, 21 Jul 2021; STR, “UK leading Europe in hotel performance recovery”, 22 Jul 2021 and GOV.UK, “UK’s new simplified travel system takes off from today”, 4 Oct 2021
Slide 36: Japan market outlook
• • • • • Sources: Japan National Tourism Organization; Travel Daily, “Japan is reopening borders to fully vaccinated travellers but there’s a catch,” 5 Oct 2021; JLL, “Asia Pacific Hotels Digest”, 2Q 2021; Savills, “Japan Hospitality”, Aug 2021 and Colliers, “Hotel Insights”, 2Q 2021
Slide 37: Malaysia market outlook
• • • • Sources: Horwath HTL, “Kuala Lumpur – Top tier hotel market”, Sep 2021 and Nikkei, “Malaysia lifts travel restrictions for fully vaccinated people”, 10 Oct 2021
Slide 38: Germany market outlook
• • • Sources: Federal Statistical Office of Germany; Dresden’s Official Tourist Information Centre; Schengen visa info, “Germany opens borders for vaccinated third-country travellers from June 25, but not for Brits”, 18 Jun 2021 and Travel Daily, “Vacationer confidence in Germany’s COVID-19 safety
Slide 39: Global outlook
• • • • • • • • 1. Source: UNWTO, “Vaccines and Reopen Borders Driving Tourism’s Recovery”, 4 Oct 2021 2. Source: International Air Transport Association, “Economic performance of the Airline Industry”, 4 Oct 2021 39
Slide 40: Inspiring experiences, creating places for good
A 7 Mig Inspiring experiences, creating places for good.
Slide 41: Hotels managed by third-party operators
Hotels managed by third-party operators Valuation, Property Country Description Tenure Class Rooms 30 Sep 2021 Novotel Strategically located within A$231.0 m Melbourne on Australia Melbourne’s core CBD area Freehold Upscale 380 (A$0.6 aivite ) Collins along Collins Street ° YI 4.5-star hotel located
Slide 42: Hotels managed by Frasers Hospitality and third-party operators
Hotels managed by Frasers Hospitality and third-party operators Valuation, Property Country Description Tenure Class Rooms 30 Sep 2021 P Elegant hotel ideally located in Fark International UK the heart of Kensington and 75 years! Mid-scale 171 £38.6 m London (£0.2 m/key) Chelsea ANA Crowne Unique pa
Slide 43: Serviced residences managed by Frasers Hospitality
Serviced residences managed by Frasers Hospitality Valuation, Property Country Description Tenure Class Rooms 30 Sep 2021 . First luxury apartments in Sydney Fraser Suites 5 A ; A 78 Upper A$127.5 m Australia designed by internationally 1 201 Sydney renowned architects YEEIS Upscale (A$0.6 m/key) Fr
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