CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — Shareholder Meeting (April 2019)
54 slides from CDL Hospitality Trusts's shareholder meeting presentation, Apr 29, 2019
Slide 1: Annual General Meetings FY 2018
Annual General Meetings FY 2018 29 April 2019 SINGAPORE | BRISBANE | PERTH | AUCKLAND | MALDIVES | TOKYO | CAMBRIDGE | MANCHESTER | MUNICH | FLORENCE
Slide 2: Disclaimer
Annual General Meetings FY 2018 Disclaimer Agenda This document may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number o
Slide 3: Agenda
Annual General Meetings FY 2018 Agenda Agenda 1. Overview and Key Highlights 4 2. Year in Review and Markets Update 9 3. Management Strategy 27 4. Conclusion 53 3
Slide 4: Overview and Key Highlights
Overview and Key Highlights
Slide 5: Leading Hospitality Trust with Quality Assets Across the World
Overview and Key Highlights Annual General Meetings FY 2018 Leading Hospitality Trust with Quality Assets Across the World MANCHESTER IPO 31 Dec 2018 • 1 Hotel CAMBRIDGE 19 5 • 1 Hotel Properties (1) MUNICH TOKYO • 1 Hotel • 2 Hotels 1,915 5,088 Rooms FLORENCE 10% CAGR • 1 Hotel Portfolio S$0.8B S$2
Slide 6: Expanding Our Asset Base Through Disciplined Allocation of Capital
Overview and Key Highlights Annual General Meetings FY 2018 Expanding Our Asset Base Through Disciplined Allocation of Capital Portfolio value increased at a CAGR of 10% since IPO In FY 2018: Portfolio value increased by S$40 million Acquisition of one Italy hotel and divestment of two Brisb
Slide 7: Portfolio Composition
Overview and Key Highlights Annual General Meetings FY 2018 Portfolio Composition Breakdown of Portfolio Valuation as at 31 December 2018 (1)(2) Singapore 62.5% Oceania 13.0% Orchard Hotel 16.0% New Zealand – Grand 7.7% Europe Millennium Auckland Grand Copthorne Waterfront Hotel 12.8% Oceania Austra
Slide 8: Portfolio Composition: Net Property Income FY 2018
Overview and Key Highlights Annual General Meetings FY 2018 Portfolio Composition Breakdown of Net Property Income (“NPI”) for FY 2018 (1) Singapore 59.9% Europe 15.5% Novotel Singapore Clarke Quay 14.4% United Kingdom 8.8% Oceania Orchard Hotel 12.7% Hilton Cambridge City Centre 5.2% Grand Copthorn
Slide 9: Year in Review and Markets Update
Year in Review and Markets Update
Slide 10: Key Themes in Operating Environment
Year in Review and Markets Update Annual General Meetings FY 2018 Key Themes in Operating Environment Global Economic Slowdown Transition Period • Divestment of 2 Australia Assets Brexit Uncertainty • Major Asset Enhancement Initiatives Key Themes Weakening of Intense Competition for Currencies Agai
Slide 11: Financial Highlights (NPI)
Year in Review and Markets Update Annual General Meetings FY 2018 Financial Highlights (NPI) NPI increased for our core market Singapore Benefiting from acquisitions made in Europe last year and income diversification as different markets experience varying cycles FY 2018 FY 2017 Variance Varian
Slide 12: Financial Highlights (Distribution and DPS)
Year in Review and Markets Update Annual General Meetings FY 2018 Financial Highlights (Distribution and DPS) Delivered stable returns to Stapled Securityholders: Total distribution increased by 1.1% to S$111.6 million DPS increased by 0.4% to 9.26 cents Total Distribution (1) DPS (2) S$ Milli
Slide 13: CDLHT's Singapore Properties Performance
Year in Review and Markets Update Annual General Meetings FY 2018 CDLHT’s Singapore Properties Performance Major citywide events, such as the biennial Singapore Airshow and Food&Hotel Asia, provided support for room rates Orchard Hotel’s performance was affected by renovation works since Jul 201
Slide 14: STB Forecasts Up to 4% Growth in Visitor Arrivals
Year in Review and Markets Update Annual General Meetings FY 2018 STB Forecasts Up to 4% Growth in Visitor Arrivals In 2018, visitor arrivals grew 6.2% year-on-year (“YoY”) (1) STB estimates growth in visitor arrivals of up to 4% in 2019 (2) Singapore continues to invest in infrastructure, tou
Slide 15: Geographical Mix of Top Markets (Singapore) for 2018
Year in Review and Markets Update Annual General Meetings FY 2018 Geographical Mix of Top Markets (Singapore) for 2018 Almost all inbound markets showed growth in 2018 Overall growth driven in part by China and India source markets China, India, Philippines, USA and Vietnam arrivals reached re
Slide 16: Singapore – A Leading MICE Destination
Year in Review and Markets Update Annual General Meetings FY 2018 Singapore – A Leading MICE Destination Choice Destination for Top-Level International Events Successful hosting of a number of highly notable events Reinforced Singapore’s status for its safety and security and as a top Trump-Kim
Slide 17: Singapore – Investment in Tourism Infrastructure for Decades Ahead
Year in Review and Markets Update Annual General Meetings FY 2018 Singapore – Investment in Tourism Infrastructure for Decades Ahead New Large-Scale Tourism Projects Being Planned Across The Entire Island 1. Jurong Lake District (1) 7. Mandai Nature Precinct 6. Jewel Changi Airport (4) 7-hectare s
Slide 18: Singapore – Diversified Long Term Growth Drivers Of Arrivals
Year in Review and Markets Update Annual General Meetings FY 2018 Singapore – Diversified Long Term Growth Drivers Of Arrivals Top MICE Destination World Class Aviation Infrastructure Top international meeting city for the 10th year Changi Airport Terminal 4 opened in Oct 2017 running in 2017 (1
Slide 19: Singapore Hotel Room Supply
Year in Review and Markets Update Annual General Meetings FY 2018 Singapore Hotel Room Supply Supply growth going forward is benign with an estimated 1,900 rooms opening this year, with 421 new rooms located in the city centre New room supply is expected to grow at a low CAGR of 1.3% for the nex
Slide 20: CDLHT's Overseas Properties Performance (New Zealand)
Year in Review and Markets Update Annual General Meetings FY 2018 CDLHT’s Overseas Properties Performance (New Zealand) Visitor arrivals grew 3.5% YoY to 3.9 million last year (1) and is forecast to increase 5.4% YoY this year (2) 2017 was an exceptional year due to significant one-off sporting
Slide 21: CDLHT's Overseas Properties Performance (Australia)
Year in Review and Markets Update Annual General Meetings FY 2018 CDLHT’s Overseas Properties Performance (Australia) Perth and Brisbane markets continue to be competitive from increased supply of new hotels Defensive lease structure of Australia Hotels provides CDLHT with fixed rent in local cu
Slide 22: CDLHT's Overseas Properties Performance (UK)
Year in Review and Markets Update Annual General Meetings FY 2018 CDLHT’s Overseas Properties Performance (UK) In 2018, the UK Hotels faced softer trading conditions due to: Extreme cold weather at the start of the year which resulted in travel disruption Increasing hotel rooms supply in Cambr
Slide 23: CDLHT's Overseas Properties Performance (Germany)
Year in Review and Markets Update Annual General Meetings FY 2018 CDLHT’s Overseas Properties Performance (Germany) RevPAR for Pullman Hotel Munich grew 9.1% in 2018 (1) NPI contribution almost doubled with a full year of income recognition and strong demand Growth was supported by: Increase
Slide 24: CDLHT's Overseas Properties Performance (Italy)
Year in Review and Markets Update Annual General Meetings FY 2018 CDLHT’s Overseas Properties Performance (Italy) CDLHT’s first Italy property, Hotel Cerretani Florence, was acquired on 27 Nov 2018 The inorganic contribution provided a slight boost in CDLHT’s overall NPI and the full effects of
Slide 25: CDLHT's Overseas Properties Performance (Maldives)
Year in Review and Markets Update Annual General Meetings FY 2018 CDLHT’s Overseas Properties Performance (Maldives) Overall tourism arrivals increased 6.8% in 2018 with broad-based growth across European feeder markets (1) However, trading environment continues to be competitive due to: Incre
Slide 26: CDLHT's Overseas Properties Performance (Japan)
Year in Review and Markets Update Annual General Meetings FY 2018 CDLHT’s Overseas Properties Performance (Japan) The Japan Hotels registered a RevPAR increase of 0.6% in 2018, driven by a 6.6% growth in 2H 2018 The improvement was supported by: Growth in arrivals to Japan by 8.7% to a record
Slide 27: Management Strategy
Management Strategy
Slide 28: Management Strategy to Enhance Unitholders' Value
Management Strategy Annual General Meetings FY 2018 Management Strategy to Enhance Unitholders’ Value 1 Acquisition Growth Strategy Pursue quality assets with growth potential Adopt a medium to long term perspective to ride through market cycles Partner with or tap on potential pipeline from M
Slide 29: Management Strategy: Acquisition Growth Strategy
Management Strategy Acquisition Growth Strategy
Slide 30: Acquisition of Hotel Cerretani Florence, Italy
Acquisition Growth Strategy Annual General Meetings FY 2018 Acquisition of Hotel Cerretani Florence, Italy Property Snapshot Date of Acquisition 27 Nov 2018 Total Rooms 86 keys Star Rating 4-star Land Tenure Freehold Property Price €40.6M (1) (~€497,000 (2) per key) Effective Interest 95.0% NPI Yiel
Slide 31: Florence Tourism Market
Acquisition Growth Strategy Annual General Meetings FY 2018 Florence Tourism Market 1 Highly Desirable Florence ranks amongst Italy’s top 5 most visited cities Tourist Destination 2 Famed for its UNESCO protected old town and numerous UNESCO museums Synonymous with Renaissance art and architec
Slide 32: Merits of the Transaction
Acquisition Growth Strategy Annual General Meetings FY 2018 Merits of the Transaction Maiden entry into Italy, strengthening CDLHT’s portfolio through 1 diversification 2 Exceptional location in the heart of the historic city centre with world-famous tourist attractions and good transportation conne
Slide 33: Management Strategy: Asset Management Strategy
Management Strategy Asset Management Strategy
Slide 34: Asset Enhancement Initiatives
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives Singapore Maldives United Kingdom Raffles Maldives Meradhoo Orchard Hotel Angsana Velavaru The Lowry Hotel Positioning CDLHT for a cyclical Renovation and rebranding program of To fortify The Lowry Hotel’s
Slide 35: Asset Enhancement Initiatives – Orchard Hotel
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – Orchard Hotel Lobby and all food and beverage outlets were extensively revamped Completed in end 2018 Lobby (before) Lobby (after) Lobby significantly uplifted 35
Slide 36: Asset Enhancement Initiatives – Orchard Hotel (Con't)
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – Orchard Hotel (Con’t) Orchard Cafe (before) Orchard Cafe (after) Newly renovated Orchard Cafe provides guests with an improved dining experience 36
Slide 37: Asset Enhancement Initiatives – Orchard Hotel (Con't)
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – Orchard Hotel (Con’t) Newly renovated buffet area of Orchard Cafe Orchard Cafe 37
Slide 38: Asset Enhancement Initiatives – Orchard Hotel (Con't)
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – Orchard Hotel (Con’t) Orchard Wing is undergoing a full rejuvenation project 260 bedrooms in Orchard Wing being upgraded in phases and is expected to complete in Jun 2019 Another 65 Club Floor Rooms will
Slide 39: Asset Enhancement Initiatives – Orchard Hotel (Con't)
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – Orchard Hotel (Con’t) Embarked on a major facelift of all the meeting facilities and the Grand Ballroom Completed in Mar 2019 Grand Ballroom (Before) Grand Ballroom (After) Strengthen hotel’s current positi
Slide 40: Asset Enhancement Initiatives – Raffles Maldives Meradhoo
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – Raffles Maldives Meradhoo Extensive renovation works at the resort is currently underway Land villas will soft open in 2Q 2019 Over-water villas will open later this year Beach Villa Positioned for the to
Slide 41: Asset Enhancement Initiatives – Raffles Maldives Meradhoo (Con't)
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – Raffles Maldives Meradhoo (Con’t) Arrival Pavillion (Rendering) Arrival area of the resort 41
Slide 42: Asset Enhancement Initiatives – Raffles Maldives Meradhoo (Con't)
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – Raffles Maldives Meradhoo (Con’t) Long Bar (Rendering) The “Long Bar” of Raffles in Maldives 42
Slide 43: Asset Enhancement Initiatives – Raffles Maldives Meradhoo (Con't)
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – Raffles Maldives Meradhoo (Con’t) Raffles Spa (Rendering) Spa reception area 43
Slide 44: Asset Enhancement Initiatives – The Lowry Hotel
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – The Lowry Hotel Renovation of Presidential Suite completed in Oct 2018 Largest hotel suite in Manchester at >180 sqm Presidential Suite Lounge area of the Presidential Suite 44
Slide 45: Asset Enhancement Initiatives – The Lowry Hotel (Con't)
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – The Lowry Hotel (Con’t) Dining area of the Presidential Suite Presidential Suite 45
Slide 46: Asset Enhancement Initiatives – The Lowry Hotel (Con't)
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – The Lowry Hotel (Con’t) Bedroom of the Presidential Suite Presidential Suite 46
Slide 47: Asset Enhancement Initiatives – The Lowry Hotel (Con't)
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – The Lowry Hotel (Con’t) Walk-in dressing room of the Presidential Suite Presidential Suite 47
Slide 48: Asset Enhancement Initiatives – The Lowry Hotel (Con't)
Asset Management Strategy Annual General Meetings FY 2018 Asset Enhancement Initiatives – The Lowry Hotel (Con’t) Lobby (Before) New Lobby (Rendering) Lobby renovation will be completed in May 2019 48
Slide 49: Management Strategy: Capital Management Strategy
Management Strategy Capital Management Strategy
Slide 50: Strong and Flexible Balance Sheet
Capital Management Strategy Annual General Meetings FY 2018 Strong and Flexible Balance Sheet Well-positioned to actively pursue suitable acquisition opportunities and asset enhancement initiatives Low gearing Ample Regulatory Debt Headroom at 45% Robust Balance Sheet (1) 34.2% S$578M Previous yea
Slide 51: Debt Profile as at 31 December 2018
Capital Management Strategy Annual General Meetings FY 2018 Debt Profile as at 31 December 2018 Three loans successfully refinanced in FY 2018 Post 31 Dec 2018, a three-year S$100 million revolving credit facility was also refinanced with a new facility Well-balanced maturity profile with >2/3
Slide 52: Debt Profile as at 31 December 2018
Capital Management Strategy Annual General Meetings FY 2018 Debt Profile as at 31 December 2018 Prudent capital management with fixed rate borrowings constituting ~62% of total borrowings as at 31 Dec 2018 Proportion of fixed rate borrowings will increase once the bridging loan for acquisition o
Slide 53: Conclusion
Conclusion
Slide 54: Conclusion
Conclusion Annual General Meetings FY 2018 Conclusion Diversified Portfolio Strong Financial Position Growth and Value Focused S$578M Debt headroom 34.2% Gearing 7.1x Interest cover Geographically diversified asset Robust balance sheet provides Evaluate avenues to unlock base provides overall
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