CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — Q3 2011 Earnings Presentation
56 slides from CDL Hospitality Trusts's earnings presentation, Oct 25, 2011
Slide 1: Presentation of 3Q 2011 Results
Presentation of 3Q 2011 Results 25 October 2011
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 4 Performance of CDL Hospitality Trusts 9 Healthy Financial Position 16 Outlook 19 Management Strategy 28 Annexe 31 Background and Structure of CDL Hospitality Trusts 31 Information on CDL Hospitality Trusts Properties 43 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary: 3Q 2011 Financial Highlights
Executive Summary 1 9.9% increase year-on-year (“y-o-y”) in income available for distribution for 3Q 2011 Mainly attributed to: Improved hospitality performance across portfolio; and Contribution from the recently acquired Studio M Hotel (1), which accounted for approximately S$2.7 million o
Slide 6: Executive Summary: YTD Sep 2011 Financial Highlights
Executive Summary 2 19.2% y-o-y increase in income available for distribution for YTD Sep 2011 Mainly attributed to: Organic growth across Singapore portfolio; Contribution from Studio M Hotel (1); One-off S$3.3 million property tax refund (2); and Financial Recording of additional varia
Slide 7: Executive Summary: Singapore and Australia Portfolio
Executive Summary 3 Singapore Hotels (1) achieved RevPAR of S$211 in 3Q 2011, the second highest RevPAR recorded in a quarter since the inception of CDL-HT This is despite the weakness in business travel in August due to more public holidays compared to the same month last year and the slowdown
Slide 8: Executive Summary: Asset Enhancement
Executive Summary 4 Completion of refurbishment of Orchard Hotel’s 331-room Claymore Wing Enhancement works to be done to 88 remaining rooms at Novotel Clarke Quay in late December 2011 Orchard Hotel Novotel Clarke Quay Asset Enhance- ment 8
Slide 9: Performance of CDL Hospitality Trusts
Performance of CDL Hospitality Trusts 9
Slide 10: Singapore Hotels Y-o-Y Performance: 3Q '10 Vs 3Q '11
Singapore Hotels Y-o-Y Performance: 3Q ’10 Vs 3Q ’11 Average Room Rate (ARR) (1) Singapore Hotels(1) achieved RevPAR of S$211 S$ in 3Q 2011, the second highest recorded in a +8.7% quarter since the inception of CDL-HT 250 236 This is despite the weakness in business travel in 225 217 August due
Slide 11: Singapore Hotels Y-o-Y Performance: YTD Sep '10 Vs YTD Sep '11
Singapore Hotels Y-o-Y Performance: YTD Sep ’10 Vs YTD Sep ’11 Average Room Rate (ARR) (1) Revenue Per Available Room (RevPAR) (1) S$ +7.9% 250 S$ 232 215 250 +7.5% 225 200 204 175 200 190 150 YTD Sep '10 YTD Sep '11 150 Occupancy (1) 100% -0.3pp 100 90% 88.1% 87.8% 50 80% 70% 0 YTD Sep '10 YTD Sep
Slide 12: CDL-HT Y-o-Y Performance: 3Q '10 Vs 3Q '11
CDL-HT Y-o-Y Performance: 3Q ’10 Vs 3Q ’11 Gross Revenue Income Available For Distribution Per Unit (1) S$ '000 S$ cents +15.2% 40,000 36,433 3.50 +9.6% 31,634 3.08 30,000 3.00 2.81 20,000 3Q '10 3Q '11 2.50 Net Property Income S$ '000 2.00 40,000 +12.7% 33,985 30,159 1.50 30,000 20,000 1.00 3Q '10
Slide 13: CDL-HT Y-o-Y Performance: YTD Sep '10 Vs YTD Sep '11
CDL-HT Y-o-Y Performance: YTD Sep ’10 Vs YTD Sep ’11 Gross Revenue Income Available For Distribution Per Unit (1) S$ '000 S$ cents +16.1% 120,000 103,303 10.00 +9.1% 100,000 88,952 9.01 9.00 80,000 8.26 60,000 8.00 40,000 YTD Sep '10 YTD Sep '11 7.00 Net Property Income 6.00 S$ '000 +19.3% 5.00 120,
Slide 14: Gross Revenue Diversified by Geography: 3Q '11
Gross Revenue Diversified by Geography: 3Q ’11 Gross Revenue by Assets and Geography for 3Q 2011 Overseas Portfolio 18.5% Singapore Portfolio 81.5% Australia 12.2% Singapore 81.5% Novotel Brisbane 4.4% Orchard Hotel 18.1% Mercure Brisbane 2.2% Grand Copthorne 16.9% Ibis Brisbane 1.4% Waterfront Merc
Slide 15: Gross Revenue Diversified by Geography: YTD Sep '11
Gross Revenue Diversified by Geography: YTD Sep ’11 Gross Revenue by Assets and Geography for YTD Sep 2011 Overseas Portfolio 20.2% Singapore Portfolio 79.8% Australia 13.8% Singapore 79.8% Novotel Brisbane 4.9% Orchard Hotel 19.2% Mercure Brisbane 2.4% Grand Copthorne 17.3% Waterfront Ibis Brisbane
Slide 16: Healthy Financial Position
Healthy Financial Position 16
Slide 17: Healthy Balance Sheet
Healthy Balance Sheet Ample debt headroom for acquisition opportunities as they surface Debt Value (1) Debt to Assets Ratio S$ m 30% 600 535 532 26.3% 26.5% 400 200 20% 0 30 Jun '11 30 Sep '11 Total Assets S$ m 10% 2,500 2,034 2,004 2,000 1,500 1,000 500 0% 30 Jun '11 30 Sep '11 30 Jun '11 30 Sep
Slide 18: Debt Facility Details
Debt Facility Details Unsecured Debt Terms (1) Credit Metrics S$200 million multi-currency Fitch Issuer Revolving Credit committed revolving credit facility Default Rating BBB- Facility from two banks Tenure: 3-year term Interest Cover 9.3 x (2) S$413.6 million medium term notes issued und
Slide 19: Outlook
CDL HOSPITALITY TRUSTS Outlook 19
Slide 20: Record-High Monthly Visitor Arrivals to Singapore for Last 21 Months
Sustained Momentum of Record-High Monthly Visitor Arrivals to Singapore for Last 21 Months Monthly visitor arrivals surged to record highs since December 2009 August marked the seventh month in 2011 where visitor arrivals surpassed the one million mark YTD August visitor arrivals registered 15
Slide 21: Continued Strong Growth in Asian Arrivals
Continued Strong Growth in Asian Arrivals Most of Singapore’s top 10 markets recorded robust growth in excess of 10% y-o-y growth for YTD August 2011 Strength of regional economies have supported the growth in visitors from these countries Geographical Mix of Visitor Arrivals Top 10 Country of O
Slide 22: STB Expects Strong Growth in Visitor Arrivals
STB Expects Strong Growth in Visitor Arrivals STB’s 2011F: 12 to 13 million visitors, after achieving a 20.2% y-o-y increase in 2010 With 8.8 million visitors recorded for YTD August 2011 (15.5% y-o-y growth), Singapore appears on track to achieve the forecasted visitor arrivals for 2011 Histori
Slide 23: Growth Momentum Sustained by Phased Introduction of More Attractions
Growth Momentum Sustained by Phased Introduction of More Attractions Marina Bay Sands International Cruise Terminal Gardens by the Bay Singapore Sports Hub Opened 2010, over S$6b Opening 2Q 2012, S$500m Phase 1 (Bay South) opening in Opening 2014, S$2b Jun 2012, entire project over S$1b Ni
Slide 24: Structural Boost in Demand for Accommodations
Structural Boost in Demand for Accommodations CDL-HT Singapore Hotels achieved consistently high quarterly average occupancy rate of >85% since 2Q 2010 CDL-HT Singapore Hotels Quarterly Occupancy Comparison (1) 95% 92% 90% 89% 90% 90% 88% 88% 89% 89% 87% 86% 86% 86% 86% 85% 84% 84% 85% 84% 80% 75%
Slide 25: Structural Boost to Continue in 2011
Structural Boost to Continue in 2011 CDL-HT Singapore Hotels achieved the second highest quarterly RevPAR from the structural boost in the tourism landscape CDL-HT Singapore Hotels Quarterly Occupancy, ARR & RevPAR (1) S$ 100% 300 255 247 245 232 236 90% 216 224 220 217 215 228 250 201 207 197 196
Slide 26: Limited Net Supply of New Rooms in 2011
Limited Net Supply of New Rooms in 2011 Supply is expected to grow at a CAGR of 5.5% for the next 3 years Lower than the 5-year CAGR of 7.9% expected for visitor arrivals (based on STB’s forecast of 17 million visitors by 2015) Current and Expected Hotel Room Supply in Singapore No. of Hotel Roo
Slide 27: Potential Net Supply of New Singapore Hotel Rooms Until 2013
Potential Net Supply of New Singapore Hotel Rooms Until 2013 No. of Horwath Expected No. of Horwath Expected Name of Hotel Location Name of Hotel Location Rms Rating Opening Rms Rating Opening Porcelain Hotel (Phase 2) 50 Mid-Tier City Centre 2011 Aqueen Hotel Tyrwhitt 110 Economy Outside City Centr
Slide 28: Management Strategy
CDL HOSPITALITY TRUSTS Management Strategy 28
Slide 29: Management Strategy
Management Strategy Acquiring for Growth Nurturing for Growth Pursue yield accretive, quality assets with investment rigour and discipline Capitalise on revenue management Tap on potential pipeline from M&C / CDL opportunities to improve room yield Tap on global network for 3rd party assets
Slide 30: Asset Enhancement Initiatives
Asset Enhancement Initiatives Before Before Before Orchard Hotel Novotel Clarke Quay Refurbishment of 331-room Claymore Wing completed in September Upgrading of 401 guest rooms and Club Lounge Upgrading was carried out on guest rooms, Executive Club Lounge, meeting rooms and common Club Loun
Slide 31: Background and Structure of CDL Hospitality Trusts
Background and Structure of CDL Hospitality Trusts 31
Slide 32: Background on CDL-HT
Background on CDL-HT Background Post IPO Performance Unit price increase IPO on 19 July 2006 Annoucement of Novotel Clarke High (10 Jul ’07) IPO to 24 Oct 2011 = +86.7% $3.00 Quay Acquisition = S$2.66 Listed on SGX Mainboard = S$2.01 31 Dec'07 = S$2.35 Sponsored by Millennium & $2.50 Announcem
Slide 33: CDL-HT Structure
CDL-HT Structure Sponsor Investors ≈35.112% Holdings of Stapled Securities ≈64.888% as at 30 Sep 2011 as at 30 Sep 2011 H-REIT Distributions HBT Management services Management Stapling Deed services M&C REIT M&C Business Trust Management Limited H-REIT HBT(1) and acts on behalf Management Limited (H
Slide 34: Blue Chip Sponsor and Parentage
Blue Chip Sponsor and Parentage Millennium & Copthorne Hotels plc City Developments Limited One of the largest property developers in Listed on the London Stock Exchange with Singapore with a market capitalisation of market capitalisation of ~ £1.3 billion (1) ~S$9.2 billion (1) Debt to assets
Slide 35: Summary of Leases and Lease Structures
Summary of Leases and 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 floor of S$26.4 m Term of 20 years from Listing with 20 year option Singapore IPO Orchar
Slide 36: Income Stability from Minimum Guaranteed Rent
Income Stability from Minimum Guaranteed Rent Singapore Properties (YTD Sep 2011) All CDL-HT Properties (YTD Sep 2011) S$ Mil 80 60 Variable 50.0 Variable Rent (61%) Rent, 40 49.2% 20 Minimum Rent (1) (39%) 32.4 0 Overseas Properties (YTD Sep 2011) S$ Mil Minimu 0.8 Minimum Rent (1), (2) 20 Variable
Slide 37: Gross Revenue Breakdown: 3Q '10 Vs 3Q '11
Gross Revenue Breakdown: 3Q ’10 Vs 3Q ’11 Gross Revenue of CDL-HT Properties S$ M + 15.2% Key: % Change from 3Q ’10 40.0 S$36.4M Studio M Hotel N.M. 35.0 8% 2.8 Australia Portfolio + 4.0% S$31.6M 12% 4.4 Rendezvous Hotel Auckland + 7.9% 30.0 13% 4.3 6% 2.3 Orchard Hotel Shopping Arcade + 8.9% 7% 2.1
Slide 38: Gross Revenue Breakdown: YTD Sep '10 Vs YTD Sep '11
Gross Revenue Breakdown: YTD Sep ’10 Vs YTD Sep ’11 Gross Revenue of CDL-HT Properties S$ M 120.0 Key: % Change from YTD Sep ’10 + 16.1% S$103.3M Studio M Hotel N.M. 4.6 Australia Portfolio + 33.4% 100.0 4% S$89.0M 14.2 Rendezvous Hotel Auckland 14% + 4.6% 12% 10.7 80.0 6% 6.7 Orchard Hotel Shopping
Slide 39: CDL-HT Asset Portfolio – Singapore
CDL-HT Asset Portfolio – Singapore Property Orchard Grand M Hotel Copthorne Novotel Studio M Orchard Hotel Singapore Hotel Copthorne King’s Hotel Clarke Quay Shopping Portfolio Waterfront Hotel Arcade Number of 656 574 413 310 401 360 N/A 2,714 Rooms Valuation at 31 S$429.0 M S$322.0 M S$229.0 M S$1
Slide 40: CDL-HT Asset Portfolio – Overseas
CDL-HT Asset Portfolio – Overseas Property Rendezvous Novotel Mercure Ibis Mercure Ibis Perth Australian Overseas Hotel Auckland Brisbane Brisbane Brisbane Perth Portfolio Portfolio Number of Rooms 452 296 194 218 239 192 1,139 1,591 Valuation at 31 NZ$100.4M A$68.8M A$57.7M A$41.4M A$24.2M A$192.1M
Slide 41: CDL-HT Asset Portfolio: Valuation by Property and Geography
CDL-HT Asset Portfolio Valuation by Property and Geography (1) Overseas Portfolio 18.1% Singapore Portfolio 81.9% Australia 13.0% Singapore 81.9% Novotel Brisbane 4.7% Orchard Hotel 22.1% Mercure & Ibis Brisbane 3.9% Grand Copthorne 16.6% Mercure Perth 2.8% Waterfront Ibis Perth 1.6% Novotel Clarke
Slide 42: Increase in CDL-HT Total Property Value
Increase in CDL-HT Total Property Value Valuation of CDL-HT Properties + 8.6% S$ M 1,940.9M Key: 2,000 + 19.0% - 9.1% + 1.4% 1,787.1M 154 1,800 + 47.8% Studio M 1,628.8M 1,501.6M 253 253 1,600 1,481.2M Australia Hotel Portfolio 128 . + 30.2% 40 99 99 93 110 1,400 141 54 54 Rendezvous Hotel Auckland
Slide 43: Information on CDL Hospitality Trusts Properties
Information on CDL Hospitality Trusts Properties 43
Slide 44: Hotels in Strategic Locations
Hotels in Strategic Locations Singapore Hotels New Zealand Hotel Orchard Hotel & Grand Copthorne Novotel Shopping Arcade Waterfront Hotel Clarke Quay Rendezvous Hotel Auckland H H H H H SINGAPORE RIVER CENTRAL MARINA BAY BUSINESS DISTRICT SANDS H H BUSINESS & FINANCIAL CENTRE SITE Copthorne King’s S
Slide 45: Hotels in Strategic Locations
Hotels in Strategic Locations Australia Hotels Mercure Ibis Novotel Mercure Brisbane Brisbane Brisbane Ibis Perth Perth Brisbane CBD Perth CBD H H H H H CBD AREA 45
Slide 46: Orchard Hotel, Singapore
Orchard Hotel, Singapore Significant Highlights 656 rooms Located on Orchard Road Large pillar-less ballrooms with extensive conference facilities Caters to both corporate and leisure segments Accolades Awarded Singapore Service Class Certificate for business excellence in service standard
Slide 47: Grand Copthorne Waterfront, Singapore
Grand Copthorne Waterfront, Singapore Significant Highlights 574 rooms Located between CBD and Orchard Road Close to CBD and IRs One of the largest conference facilities in Singapore Well positioned for the MICE market Accolades 2009 Hospitality Asia Platinum Awards by World Asia Publish
Slide 48: M Hotel, Singapore
M Hotel, Singapore Significant Highlights 413 rooms Located in the heart of the financial district Close to CBD and IRs Completed refurbishment in 2003 Strong following of business travellers Accolades ASEAN Green Hotel Award 2010 Hotel Security Award 2010 by Singapore Hotel Associatio
Slide 49: 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 50: 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 51: Studio M Hotel, Singapore
Studio M Hotel, Singapore Significant Highlights 360 urban-inspired lofts with elevated ceilings Newly-built asset completed in March 2010 Stylish and contemporary design set to capture growing business and leisure segments Vibrant lifestyle options near the Robertson Quay precinct and in pr
Slide 52: Orchard Hotel Shopping Arcade, Singapore
Orchard Hotel Shopping Arcade, Singapore Net Lettable Area 5,984.4 sq m CBRE’s valuation S$54.3M Valuation psm (psf) S$9,074 psm (S$843 psf) % of total valuation ~2.8% 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 Accolades Green Globe accreditation 2009 Restaurant award for Pacific Restaurant Category Win
Slide 54: Novotel, Mercure and Ibis Hotels, Brisbane
Novotel, Mercure and Ibis Hotels, Brisbane Novotel Hotel Significant Highlights Novotel Hotel Brisbane 4.5 star accommodation with 296 modern, well-appointed rooms and suites Freehold Located next to Central Station and the CBD, Queen Street Mall and the Riverside boardwalk Comprehensive con
Slide 55: Mercure and Ibis Hotels, Perth
Mercure and Ibis Hotels, Perth Mercure Hotel Mercure Hotel Significant Highlights Mercure Hotel Perth 4.0 star accommodation with 239 rooms and suites Freehold Offers six meeting rooms available for up to 350 delegates Situated in Perth’s CBD and within walking distance Mercure Hotel to the
Slide 56: Thank You
CDL HOSPITALITY TRUSTS THANK YOU 56
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