Cdl Hospitality Trusts · SGX:J85
Cdl Hospitality Trusts — H1 2009 Earnings Presentation
55 slides from Cdl Hospitality Trusts's earnings presentation, Jul 31, 2009
Slide 1: Presentation of 2Q and 1H 2009 Results
Presentation of 2Q and 1H 2009 Results 31 July 2009
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-M
Slide 3: Table Of Contents
Table Of Contents Highlights Performance Of CDL Hospitality Trusts Healthy Financial Position Outlook Active Asset Management Update On Acquisition Strategy Annexe ♦ Background And Structure Of CDL Hospitality Trusts ♦ Information On CDL Hospitality Trusts Hotels 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary
Executive Summary 1 Challenging 1H 2009 as global economic downturn led to weakening demand 1 for hotel accommodation and intense price competition, translating to: - Gross revenue(1) of S$42.8 million, a decrease of 25.6% yoy - Net property income(1) of S$39.8 million, a decrease of 26.0% yoy - Inc
Slide 6: Executive Summary: Occupancy
Executive Summary 2 3 Occupancy showing signs of improvement due to revival in business confidence - Signs of improving demand in the months of June and July - Occupancy inched upwards to 75.5% in 2Q 2009 despite tougher operating conditions compared to the previous quarter Quarter-on-quarter Change
Slide 7: Executive Summary: Strong balance sheet
Executive Summary 3 4 Strong balance sheet and sound fundamentals - One of the lowest geared S-REITs with debt to assets of 19.3% - Interest cover of 8.45 times(2) for 1H 2009 - No further debt refinancing needed until 2012 (1) S$ SOR refers to the Singapore swap offer rate. (2) Interest cover is co
Slide 8: Details Of Distribution
Details Of Distribution Distribution for the period 1 Jan 2009 to 30 June 2009 (after deducting income retained for working capital) 3.86 ¢ per unit comprising: 3.46 ¢ of taxable income and 0.40 ¢ of tax exempt income Closure of books: August 2009 5 pm on 7 August 2009 Mon Tue Wed Thu Fri Sat Sun 31
Slide 9: Performance Of CDL Hospitality Trusts
Performance Of CDL Hospitality Trusts 9
Slide 10: 13 Consecutive Months Of Decline In Visitor Arrivals Since June 2008
13 Consecutive Months Of Decline In Visitor Arrivals Since June 2008 2008 & 2009 YOY Change in Visitor Arrivals YOY Change in '000 YOY Change in % 15% 90 7.2% 7.2% 6.1% 70 59.4 54.7 52.0 10% 50 1.2% 1.5% 30 5% 9.9 12.4 10 (10) Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov
Slide 11: Year-On-Year Hotel Performance: 2Q '08 Vs 2Q '09
Year-On-Year Hotel Performance: 2Q ’08 Vs 2Q ’09 CDL-HT Singapore Hotels S$ ARR: 2Q '08 v 2Q '09 -30.2% S$ RevPAR: 2Q '08 v 2Q '09 300 $255 300 250 $178 200 150 250 -39.6% 100 $222 50 0 200 2Q '08 2Q '09 150 $134 Occ: 2Q '08 v 2Q '09 100% -11.6 pp or -13.3% 95% 100 90% 87.1% 85% 80% 75.5% 50 75% 70%
Slide 12: Gross Revenue, NPI And Income Available For Distribution Per Unit: 2Q
Gross Revenue, NPI And Income Available For Distribution Per Unit: 2Q ’08 Vs 2Q ’09 CDL-HT Hotels S$’000 Gross Revenue(1) Income Available for Distribution 35,000 -31.5% S$ cents Per Unit (2) 29,535 30,000 3.50 25,000 20,219 -31.7% 20,000 3.03 15,000 3.00 10,000 5,000 2.50 0 2.07 2Q '08 2Q '09 2.00
Slide 13: Year-On-Year Hotel Performance: 1H '08 Vs 1H '09
Year-On-Year Hotel Performance: 1H ’08 Vs 1H ’09 CDL-HT Singapore Hotels S$ ARR: 1H '08 v 1H '09 -24.7% S$ RevPAR: 1H '08 v 1H '09 300 $251 250 250 $189 200 -33.9% $215 150 100 200 50 0 1H '08 1H '09 150 $142 Occ: 1H '08 v 1H '09 100% -10.6 pp or -12.4% 100 95% 90% 85.8% 85% 50 80% 75.2% 75% 70% 65%
Slide 14: Gross Revenue, NPI And Income Available For Distribution Per Unit: 1H
Gross Revenue, NPI And Income Available For Distribution Per Unit: 1H ’08 Vs 1H ’09 CDL-HT Hotels (1) S$’000 Gross Revenue Income Available for Distribution 70,000 -25.6% S$ cents Per Unit (2) 60,000 57,429 50,000 42,750 7.00 -27.8% 40,000 5.89 30,000 6.00 20,000 10,000 0 5.00 1H '08 1H '09 4.25 Net
Slide 15: Healthy Financial Position
Healthy Financial Position 15
Slide 16: Strong Balance Sheet
Strong Balance Sheet (1) S$ Debt Values (S$ M) 400 Debt / Assets Ratio 297 293 300 30% 200 25% 100 19.7% 19.3% 20% 0 As at 31 Mar '09 As at 30 Jun '09 15% S$ Total Assets (S$ M) 10% 1,506 1,521 1,500 5% 1,000 0% As at 31 Mar '09 As at 30 Jun '09 500 0 As at 31 Mar '09 As at 30 Jun '09 (1) Debt value
Slide 17: Change In CDL-HT Total Property Value & Net Asset Value Per Unit
Change In CDL-HT Total Property Value & Net Asset Value Per Unit Valuation of H-REIT Properties S$ M -9.1% +47.8% 1,800 1,628.8M Key: 1,481.2M 1,600 Novotel Clarke Quay +30.2% 16.9% 275 Rendezvous Hotel Auckland 1,400 Orchard Hotel . 18.0% 266 1,101.9M 7.8% 128 Grand Copthorne Waterfront Hotel 1,200
Slide 18: Details Of New Debt Facility
Details Of New Debt Facility Debt Terms Credit Metrics Outstanding debt of S$293.0 mil Fitch Issuer Default Rating: as at 30 June 2009 BBB- To utilize S$270 mil term loan + portion of S$80 mil committed revolving credit facility to Debt to assets ratio: refinance outstanding debt net of ca
Slide 19: Outlook
CDL HOSPITALITY TRUSTS Outlook 19
Slide 20: Visitor Arrivals In Singapore
Visitor Arrivals In Singapore Visitor Arrivals in Singapore Current Thousands Asian Financial Crisis Sep 11 & SARs 36% Financial Crisis 12,000 11% 11% 11% 9% 7% 7% 3% 2% 1% 7% 5% -1% -2% -2% -13% -12% -19% 10,285 10,116 9,751 10,000 YTD Jun 8,943 8,329 8,000 7,691 7,522 7,567 7,137 7,292 7,198 6,958
Slide 21: Singapore – Overall Visitor Arrivals For YTD June 2009
Singapore – Overall Visitor Arrivals For YTD June 2009 Breakdown of Visitor Arrivals To Singapore Growth in Top 10 Visitor For Jan-Jun '09 Arrival Countries for Singapore Indonesia, (Jan-Jun '09 vs. Jan-Jun '08) 765,907 17% -10.9% Indonesia Others, 27% -22.9% P R China 1,230,892 P R China, -5.9% Aus
Slide 22: Signs of Improvement in Occupancy
Signs of Improvement in Occupancy Quarter-on-quarter Change in Occupancy 86.0% 2Q 2009 occupancy increased 0.7 83.7% percentage points over 1Q 2009 despite 84.0% ♦ Tougher operating conditions compared 82.0% to the previous quarter, and -8.9 pp or ♦ Higher loss in revenue due to Influenza A Occupa
Slide 23: Potential Supply Of Hotel Rooms Until 2012
Potential Supply Of Hotel Rooms Until 2012 Current and Expected Hotel Room Supply in Singapore No. of Hotel Rooms 50,000 2009 to 2012 CAGR = 6.1% 45,000 40,000 770 39,040 6,178 300 1,878 35,000 1,800 Resorts World at Sentosa 2,500 Marina Bay Sands 985 30,807 30,000 30,807 30,807 30,807 30,807 25,000
Slide 24: Demand Boost From Opening Of Resorts World At Sentosa
Demand Boost From Opening Of Resorts World At Sentosa Resorts World at Sentosa Early 2010 soft opening Artist Impression of Completed Project Unique combination of world-class theme park, gaming & convention facilities Anticipates 12 to 13 million visitors in 2010 (1) Target families & leisure
Slide 25: Demand Boost From Opening Of Marina Bay Sands
Demand Boost From Opening Of Marina Bay Sands Marina Bay Sands Early 2010 soft opening Artist Impression of Completed Project Large-scale casino resort with world-class convention facilities in the heart of the city Targeting business travellers & conference delegates Key Attractions: ♦ Extens
Slide 26: Marina Bay Sands (MBS): Priority for Las Vegas Sands
Marina Bay Sands (MBS): Priority for Las Vegas Sands Casinos built around the world (total cost in US$mil) (2) Importance of MBS to Las Vegas Sands (2) ♦ US$5.4 billion (S$7.8 billion) project ♦ Accordingly to a CLSA report, consensus estimates suggest that EBITDA contribution of MBS is expected t
Slide 27: Strategically Positioned To Capture New Demand
Strategically Positioned To Capture New Demand Close proximity to the Integrated Resorts ♦ Grand Copthorne Waterfront Hotel, Copthorne King’s Hotel, Novotel Clarke Quay & M Hotel are within 5km radius of the Marina Bay Sands & Resorts World at Sentosa Well-connected via major roads / expressways
Slide 28: Other Positive Developments for the Tourism Sector
Other Positive Developments for the Tourism Sector APEC Conference 2009 Formula 1TM Singapore Grand Prix Scheduled every September at Over 100 meetings held in Singapore Marina Bay for five years beginning from February to November 2008 Meeting venues incl. APEC Secretariat One of two street
Slide 29: Diversified Long Term Growth Drivers Of Visitor Arrivals
Diversified Long Term Growth Drivers Of Visitor Arrivals Preferred MICE Destination Vibrant Entertainment Centre Asia’s Best City for MICE Events in the CEI Asia 2009 Industry Awards World’s top international meeting city in 2007 in Union of International Associations (UIA) 2007 Global Rankings
Slide 30: CDL-HT Revenue Has Downside Protection
CDL-HT Revenue Has Downside Protection Rental Income for 1H 2009 with Breakdown of Minimum Rent (1), (2) Rental Income with Breakdown of (S$’000) Minimum Rent in 1H09 S$ '000 42,750 45,000 (S$' 000) IPO Hotels Base Rent, 40,000 13,092 , 59% 35,000 47.6% 20,340 30,000 25,000 Novotel Clarke Quay Rent
Slide 31: Active Asset Management
CDL HOSPITALITY T RUSTS Active Asset Management 31
Slide 32: Working Closely With Lessees/Hotel Managers: Driving Revenue Initiatives
Working Closely With Lessees/Hotel Managers 1 Driving Revenue Initiatives Increase efforts to enlarge the sales coverage of corporate accounts by leveraging on the collective network of Hong Leong Group, City Developments Limited and Millennium & Copthorne Hotels plc Active yield management to e
Slide 33: Working Closely With Lessees/Hotel Managers: Cost Containment
Working Closely With Lessees/Hotel Managers 2 Proactive Cost Containment Initiatives Efforts to streamline work processes have yielded good results Standardization of hotel operating items/amenities have resulted in some cost savings 2H 2009 will see continued savings in cost compared to a yea
Slide 34: Update On Acquisition Strategy
Update On Acquisition Strategy 34
Slide 35: Acquisition Opportunities From Multiple Sources
Acquisition Opportunities From Multiple Sources M&C Third Parties Owns / operates > 100 hotels globally Divestment of assets Right of First Refusal(1) to future sales of Singapore ♦ By hospitality service providers who are hotels owned by M&C or offers of Singapore hotels increasingly looking
Slide 36: CDL-HT Target Markets
CDL-HT Target Markets Specific Countries of Interest Singapore ▪ Australia ▪ China ▪ Hong Kong ▪ India ▪ Indonesia ▪ Japan ▪ Malaysia ▪ Maldives ▪ New Zealand ▪ Philippines ▪ Thailand ▪ Vietnam ▪ UAE ▪ Taiwan Jan - May 09 RevPAR Growth (1) Bangkok -35.6% Jakarta +2.7% Kuala Lumpur -12.1% Beijing -46
Slide 37: Background And Structure Of CDL Hospitality Trusts
Background And Structure Of CDL Hospitality Trusts 37
Slide 38: Background To CDL-HT
Background To CDL-HT Background Post IPO Performance • IPO on 19 July 2006 Announcement of Equity High (10 Jul ’07) Unit price increase $3.00 Fund Raising = S$2.66 IPO to 29 Jul 09 = +38.6% 2 Jan 09 to 29 Jul 09 = +57.5% • Listed on SGX Mainboard = S$2.28 31 Dec'07 = S$2.35 Announcement of $2.50 • S
Slide 39: Blue Chip Sponsor And Parentage
Blue Chip Sponsor And Parentage Millennium & Copthorne Hotels plc City Developments Limited Listed on the London Stock Exchange with market One of the largest property developers in Singapore capitalization of ~ £792.6 million(1) with a market capitalization of S$9.0 billion(1) Debt to assets ratio
Slide 40: CDL-HT Structure
CDL-HT Structure Sponsor Investors ≈39.254% Holdings of Stapled Securities ≈60.746% 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 Manageme
Slide 41: 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 42: 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 653 574 413 310 N/A 452 401 2,803 Rooms NZ$112.0M Valuation S$423.0M S$309.0M S$227.0M S$120.0M S$43.0M S$2
Slide 43: Breakdown Of Gross Revenue By Property: 2Q '08 Vs 2Q '09
Breakdown Of Gross Revenue By Property Actual - 2Q ’08 Vs 2Q ’09 Gross Revenue from H-REIT Properties S$ M 35 -31.5% S$ 29.5M 30 Key: % Change from 2Q ’08 20% 5.8 25 S$20.2M Novotel Clarke Quay -24.0% 9% 2.6 4% 1.1 Rendezvous Hotel Auckland -23.5% 20 9% 2.8 22% 4.4 Orchard Hotel Shopping Arcade +5.5
Slide 44: Breakdown Of Gross Revenue By Property: 1H '08 Vs 1H '09
Breakdown Of Gross Revenue By Property Actual – 1H ’08 Vs 1H ’09 Gross Revenue from H-REIT Properties S$ M -25.6% S$57.4M 60 19% 10.8 % Change from 1H ’08 50 S$42.8M 9% 4.9 -17.0% Novotel Clarke Quay 40 4% 2.1 21% 9.0 -21.4% 10% 5.6 Rendezvous Hotel Auckland 9% 3.9 +6.4% 30 14% 8.2 Orchard Hotel Sho
Slide 45: Change In CDL-HT Total Property Value
Change In CDL-HT Total Property Value Valuation of H-REIT Properties S$ M -9.1% +47.8% 1,800 1,628.8M Key: 1,481.2M 1,600 Novotel Clarke Quay +30.2% 16.9% 275 Rendezvous Hotel Auckland 1,400 Orchard Hotel . 18.0% 266 1,101.9M 7.8% 128 Grand Copthorne Waterfront Hotel 1,200 93 6.3% M Hotel 11.1% 123
Slide 46: Information On CDL Hospitality Trusts Hotels
Information On CDL Hospitality Trusts Hotels 46
Slide 47: 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 48: Orchard Hotel, Singapore
Orchard Hotel, Singapore Significant Highlights 653 rooms Located in Orchard Road Large pillar-less ballrooms with extensive conference facilities Caters to both corporate and leisure segments Accolades Business Times-Citibank Gourmet Choice Awards 2009 – Hua Ting Restaurant Asia Tatler’
Slide 49: Grand Copthorne Waterfront, Singapore
Grand Copthorne Waterfront, Singapore Significant Highlights 574 rooms Located between CBD and Orchard Road Close to proposed BFC and IR One of the largest conference facilities in Singapore Well positioned for the MICE market Accolades 2009 Best Restaurant by Simply Dining, Phenomedia L
Slide 50: 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 Wine & Dine Singapore’s Top Restaurants 2009 – Cafe 2000 Wine & Dine Singapo
Slide 51: Copthorne King's Hotel, Singapore
Copthorne King’s Hotel, Singapore Significant Highlights Boutique-style business hotel with 310 rooms Located within close proximity to CBD, convention / exhibition belt and Orchard Road Completed refurbishment in 2004 Strong corporate segment focus and specialty events hotel host Accolades
Slide 52: Orchard Hotel Shopping Arcade, Singapore
Orchard Hotel Shopping Arcade, Singapore Net Lettable Area 4,889.5 sq m Knight Frank’s valuation S$43.0M Valuation psm (psf) S$8,794 psm (S$817 psf) % of total valuation ~2.9% Leasehold Interest 75 years from Listing Date 52
Slide 53: Rendezvous Hotel Auckland, New Zealand
Rendezvous Hotel Auckland, New Zealand Significant Highlights 452 rooms – largest hotel in Auckland by rooms Freehold Located in the central business district and next to a major conference centre 53
Slide 54: Novotel Clarke Quay, Singapore
Novotel Clarke Quay, Singapore Significant Highlights Prime superior hotel with 401 rooms Leasehold Located in immediate proximity to Clarke Quay, Robertson Quay and Boat Quay: Singapore’s premier entertainment hub Concluded a S$18.8 million comprehensive refurbishment program to guestrooms,
Slide 55: Thank You
Thank You CDL HOSPITALITY TRUSTS
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