Capitaland Ascott Trust · SGX:HMN
Capitaland Ascott Trust — Ascott Residence Trust — FY2021 Earnings Presentation
48 slides from Capitaland Ascott Trust's earnings presentation, Jan 28, 2022
Slide 1: 2H / FY 2021 Financial Results
Ascott Residence Trust 2H / FY 2021 Financial Results 28 January 2022
Slide 2: Important Notice
Important Notice This presentation may contain forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factor
Slide 3: Table of Content
Table of Content 01 05 Year in Review Key Market Updates 02 06 Covid-19 Situational Update Portfolio Valuation 03 07 2H / FY 2021 Highlights Capital & Risk Management 04 08 Portfolio Updates Looking Ahead Citadines Citadines CentralCentral Shinjuku Shinjuku Tokyo Tokyo
Slide 4: Year in Review
Year in Review Ascott Orchard Singapore
Slide 5: A Leading Global Hospitality Trust
A Leading Global Hospitality Trust Constituent of FTSE EPRA Nareit Global Developed Index The United Kingdom S$7.7b 4 properties China 5 properties Total Assets South Korea Belgium 2 properties The United States of America 2 properties 10 properties1 1 Spain Japan >17,000 1 property 22 properties Un
Slide 6: FY 2021 Highlights
FY 2021 Highlights Riding the travel recovery and pivoting to longer-stay accommodation 6 successive quarters Expanding investment mandate, Rejuvenating of RevPAU recovery building income stability the portfolio Completion and opening of 43% y-o-y increase in c. S$780 mil in investments maiden devel
Slide 7: Commitment to Sustainability & Corporate Governance
Commitment to Sustainability & Corporate Governance Aligned with CapitaLand’s 2030 Sustainability Master Plan Accolades & Awards Global Sector Leader – Hotel Ranked 1st Best Crisis Management Global Real Estate Sustainability Singapore Governance and Transparency Index 2021 IR Magazine Awards – SEA
Slide 8: Covid-19 Situational Update
Covid-19 Situational Update Somerset Ho Chi Minh City
Slide 9: Continued Vaccination Progress Across ART's Key Markets
Continued Vaccination Progress Across ART’s Key Markets Booster shots have been rolled out expeditiously in several of them Proportion of population vaccinated against Covid-19 100% Proportion of selected populations vaccinated 90% with booster shots 80% 70% 64% United Kingdom3 60% 50% 74% 93% 85% 8
Slide 10: More Countries Eased Movement Restrictions in 2H 2021
More Countries Eased Movement Restrictions in 2H 2021 Compared to 1H 2021, more countries eased social-distancing and domestic travel requirements; some temporary restrictions were introduced in Dec in response to Omicron Jul Aug Sep Oct Nov Dec-Jan Brisbane: 1-week lockdown Brisbane: Measures were
Slide 11: More Countries Reopened to International Travel in 2H 2021
More Countries Reopened to International Travel in 2H 2021 Compared to 1H 2021, more countries opened borders to vaccinated travellers; some controls and testing were introduced in Dec in response to Omicron From Feb 2022, The EU Digital Covid Certificate, UK will no longer require recognised by all
Slide 12: International Arrivals Rebounded 128% and 85% Y-o-Y in Americas and Europe
International Arrivals Rebounded 128% and 85% Y-o-Y in Americas and Europe Respectively in 2H 2021 Traveller confidence, vaccination progress and easing of restrictions drove recovery International Visitor Arrivals by Month (mil) 2021 international visitor arrivals 4% higher y-o-y Europe recorded th
Slide 13: 2H / FY 2021 Highlights
2H / FY 2021 Highlights lyf one-north Singapore
Slide 14: Financial Highlights
Financial Highlights Distribution per Stapled Security rose 43% y-o-y in FY 2021 2H 2021 DPS1 excluding Revenue Gross Profit Distribution Income DPS1 divestment gains distributed 30% 49% 19% 14% 119% y-o-y y-o-y y-o-y y-o-y y-o-y to S$209.4 mil to S$91.2 mil to S$73.5 mil to 2.27 cents to 1.51 cents
Slide 15: Financial Highlights
Financial Highlights Strongest quarter-on-quarter recovery in 4Q 2021 as reopening picked up pace Portfolio RevPAU1 increased 61% y-o-y to S$79 in 2H 2021 Portfolio RevPAU1 • 2H 2021 revenue and gross profit increased 30% and 49% y-o-y 100 respectively, as most markets registered stronger performanc
Slide 16: Financial Highlights
Financial Highlights Underpinned by stability from master leases and longer-stay accommodation Future-proofing the portfolio, building stable income sources • Stable income sources1 contributed about two-thirds of gross profit in 2H 2021 Contract Types • 5 student accommodation properties were acqui
Slide 17: Distribution Details
Distribution Details 2H 2021 FY 2021 Distributing divestment gains to Stapled Securityholders Distribution per Distribution per Stapled Security Stapled Security • Total of S$45 mil in divestment gains distributed in FY 2021 (1H 2021: S$20 mil, 2H 2021: S$25 mil), the same amount as FY 2020, 2.27 ce
Slide 18: 2H 2021 - Financial Performance by Contract Types
2H 2021 - Financial Performance by Contract Types Broad-based improvement as most markets recorded stronger performance Revenue (S$‘mil) Gross Profit (S$‘mil) RevPAU1 (S$) 2H 2H 2H 2H 2H 2H % Change % Change % Change 2021 2020 2021 2020 2021 2020 Master Leases 44.8 43.8 2% 40.1 37.9 6% n.a. n.a. n.a
Slide 19: FY 2021 - Financial Performance by Contract Types
FY 2021 - Financial Performance by Contract Types Broad-based improvement as most markets recorded stronger performance Revenue (S$‘mil) Gross Profit (S$‘mil) RevPAU1 (S$) FY FY FY FY FY FY % Change % Change % Change 2021 2020 2021 2020 2021 2020 Master Leases 98.4 101.9 -3% 88.3 90.1 -2% n.a. n.a.
Slide 20: Resilience Amid Covid-19
Resilience Amid Covid-19 Stable income sources made up about two-thirds of ART’s 2H 2021 gross profit Contract types with a fixed/ minimum rent component Master leases Management contracts of serviced residences and hotels Australia 2.3% 17% France 14.1% Australia 5.7% Germany 7.6% China 2.8% Indone
Slide 21: Resilience Amid Covid-19
Resilience Amid Covid-19 Diversified portfolio with no concentration risk Asia Pacific 62.5% Europe 18.6% Australia 13.1% Belgium 0.9% China 4.4% France 6.5% Indonesia 1.3% Germany 3.4% Japan 19.2% Total Assets Spain 0.9% Malaysia 0.6% S$7.7 bil United Kingdom 6.9% Philippines 2.2% Singapore 16.3% S
Slide 22: Portfolio Updates
Portfolio Updates Latitude on Hillsborough
Slide 23: Reconstituting the Portfolio for Income Stability
Reconstituting the Portfolio for Income Stability Expanded asset allocation in longer-stay accommodation with 11 investments since Jan 2021 • Recycled assets at higher yields – divested at exit yields of c.2%1 and reinvested at EBITDA yields of c.5%2 3 • c.S$780 mil in rental housing and student acc
Slide 24: Divestments at Premium to Book in FY 2020 and FY 2021
Divestments at Premium to Book in FY 2020 and FY 2021 c.S$580 mil in proceeds and c.S$225 mil in net gains unlocked at average exit yield of c.2% 1 Somerset Azabu East Tokyo Ascott Guangzhou Citadines City Centre Grenoble Somerset Xu Hui Shanghai Premium over Property Location No. of units Sale pric
Slide 25: Acquisitions Entered Into in FY 2021
Acquisitions Entered Into in FY 2021 c.S$700 mil invested in 8 USA student accommodation properties with a total bed count of 4,407 Paloma West Midtown, Georgia Seven07, Illinois The Link University City, Pennsylvania Latitude on Hillsborough, North Carolina Acquisition date / Property Location No.
Slide 26: Acquisitions Entered Into in FY 2021 (cont'd)
Acquisitions Entered Into in FY 2021(cont’d) c.S$85 mil invested in 3 Japan rental housing properties with average length of stay of 2 years Alpha Square Kita 15 jo Big Palace Minami 5 jo City Court Kita 1 jo Property Location No. of units Purchase price EBITDA yield Acquisition date Rental housing
Slide 27: Building a Quality, Diversified Student Accommodation Portfolio
Building a Quality, Diversified Student Accommodation Portfolio Strategically-located properties that serve reputable universities with strong athletics programmes, large student populations and steady enrolment growth Well-located properties that are Diversified presence Serving reputable universit
Slide 28: Rejuvenating the Portfolio with New Developments
Rejuvenating the Portfolio with New Developments New product offerings to cater to the new normal Redevelopment of Somerset Liang Court Singapore Development of student accommodation in South Carolina, USA Artist’s impression Site progress Artist’s impression Site progress • 192-unit Somerset servic
Slide 29: Opening of lyf one-north Singapore
Opening of lyf one-north Singapore Achieved strong occupancy during first phase of opening Soft opened in Nov 2021, final TOP obtained in Jan 2022 • 324-unit coliving property designed for next-generation travellers • 2-minute walk from one-north MRT station and 30-minute ride to the Certified Green
Slide 30: Completion of Refurbishment and Rebranding of Hotel Central
Completion of Refurbishment and Rebranding of Hotel Central Well-positioned to ride the recovery in domestic leisure travel Refurbishment and rebranding of Hotel Central Times Square in New York, USA • Launched as voco Times Square South in Nov 2021 • vocoTM – premium positioning within the IHG stab
Slide 31: Key Market Updates
Key Market Updates Paloma West Midtown
Slide 32: 8 Key Markets Performance
8 Key Markets Performance Revenue (LC ‘mil) Gross Profit (LC ‘mil) RevPAU (LC) 2H 2H 2H 2H 2H 2H % Change % Change % Change 2021 2020 2021 2020 2021 2020 Master Leases Australia AUD 2.2 2.8 -21% 2.1 2.5 -16% n.a. n.a. n.a. France EUR 8.6 5.2 65% 8.1 4.1 98% n.a. n.a. n.a. Japan JPY 1,028.6 1,037.1 -
Slide 33: Australia
Australia Uptick in RevPAU driven by pent-up demand R E V P AU ( AU D ) 13% of total assets: 4 serviced residences (SRs) under master leases; 140 6 hotels and 3 SRs under management contracts 120 100 80 Management Contracts – SRs & Hotels • Travel demand is expected to return when 60 the situation s
Slide 34: China
China Resilience from long stays and project groups R E V P AU ( R M B ) 4% of total assets: 5 SRs under management contracts 350 300 250 • 2H 2021 revenue and gross profit were lower • Average occupancy of the China properties 200 Ascott Somerset Xu y-o-y due to the divestments of Ascott remained r
Slide 35: France
France Robust summer holiday demand boosts recovery in 2H 2021 7% of total assets: 15 SRs under master leases • Revenue and gross profit were higher y-o-y mainly • In 4Q 2021, the momentum of recovery due to the absence of rent abatement which was continued, before the Omicron variant spread in reco
Slide 36: Japan
Japan Stronger performance driven by Olympic Games and easing of restrictions 8,000 R E V P AU ( J P Y ) 19% of total assets: 3 hotels under master lease; 6,000 Somerset Azabu East 3 SRs, 2 hotels and 14 rental housing under management contracts Tokyo divested in December 2020 4,000 Management Contr
Slide 37: Singapore
Singapore Block bookings offer support, reopening expected to resume when situation stabilises R E V P AU ( S G D ) 16% of total assets: 1 SR under master lease; 200 160 Somerset Liang Court Singapore Soft opening of lyf one-north 2 SRs and 1 hotel under management contracts1; 1 SR under development
Slide 38: United Kingdom
United Kingdom Successive RevPAU recovery on summer leisure demand and easing of travel curbs R E V P AU ( G B P ) 120 7% of total assets: 3 SRs under management contracts; 100 1 SR under management contract with minimum guaranteed income 80 60 40 • 2H 2021 revenue and gross profit were higher • In
Slide 39: United States
United States Reopening spurs recovery at the hotels; maiden contributions from student accommodation properties R E V P AU ( U S D ) 19% of total assets: 3 hotels and 6 student accommodation under management contracts; 160 140 1 student accommodation under development 120 100 • 2H 2021 revenue and
Slide 40: Vietnam
Vietnam Progressive easing of restrictions drives recovery q-o-q R E V P AU ( V ND ’ 0 0 0 ) 3% of total assets: 4 SRs under management contracts 1,400 1,200 1,000 800 • 2H 2021 revenue and gross profit were lower • Business travel is expected to pick up 600 y-o-y as Covid-19 waves resulted in lockd
Slide 41: Portfolio Valuation
Portfolio Valuation La Clef Louvre Paris
Slide 42: Portfolio Valuation
Portfolio Valuation Fair value gain of S$147.3 mil1 on Covid-19 recovery Investment Properties Net Book Value Country Currency as at 31 Dec 2021 as at 31 Dec 2021 Variance (%) (local currency) (local currency)2 Australia AUD 923.9 905.1 2% Belgium EUR 39.5 39.7 -1% China RMB 1,414.9 1,414.2 - France
Slide 43: Capital & Risk Management
Capital & Risk Management Somerset Millennium Makati
Slide 44: Capital Management
Capital Management Strong financial capacity and healthy liquidity position Strong capital Robust financing Fortifying liquidity management flexibility reserves S$1.191 37.1% c.S$1.04 bil Gearing Total available funds NAV per Stapled Security Interest cover (c. S$1.9 bil debt headroom2) 3.7X 3 = 48%
Slide 45: Capital Management
Capital Management Commenced refinancing of debt due in 2022, lenders remain supportive 72% : 28% c.74% 2.7 years Bank loans : Medium Term Notes Total debt on fixed rates Weighted average debt to maturity Managing liquidity risks through diversified funding sources S$’ mil 28% • The lower proportion
Slide 46: Looking Ahead
Looking Ahead Citadines Trafalgar Square London
Slide 47: Embracing an Endemic Approach
Embracing an Endemic Approach Steadfast commitment towards reopening despite resurgence Despite near-term uncertainty, governments remain committed towards reopening their economies • While border controls are expected to remain in place in the near term due to the spread of the Omicron variant, sev
Slide 48: Thank You
Thank You Citadines Connect Sydney Airport
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