Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Hospitality Trust — FY2019 Earnings Presentation
41 slides from Frasers Property's earnings presentation, January 2020
Slide 1: Frasers Hospitality Trust Investor Presentation
Frasers Hospitality Trust Investor Presentation January 2020
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
Contents Overview of FHT Financial Review: 4Q and FY2019 Strategy Market Outlook 3
Slide 4: Overview of FHT
Overview of FHT 4 Fraser Suites Sydney
Slide 5: Global Hotel and Serviced Residence Trust
Global Hotel and Serviced Residence Trust Stapled Group Comprises FH-REIT and FH-BT1 Hospitality and hospitality-related assets located globally, Investment Mandate excluding Thailand Sponsor and Strategic Partner Frasers Property – 25.2% TCC Group Investments – 37.0% For FH-REIT: Frasers Hosp
Slide 6: Independent Platform Providing Flexibility and Access
Independent Platform Providing Flexibility and Access Strong Developer-Sponsor in Frasers Property One of Singapore’s largest real estate groups with strong real estate capabilities and proven track record in REIT management. Independent Hospitality Trust Platform Best of both worlds – leverage
Slide 7: Resilient and Diversified Portfolio Across Geography
Resilient and Diversified Portfolio Across Geography Edinburgh ▪ Fraser Suites Edinburgh Glasgow Europe ▪ Fraser Suites Glasgow UK Germany London Kobe ▪ ibis Styles London Gloucester Road ▪ ANA Crowne Plaza Kobe ▪ Park International London Japan ▪ Fraser Place Canary Wharf ▪ Fraser Suites Queens Gat
Slide 8: Financial Review: 4Q and FY2019
Financial Review: 4Q and FY2019 InterContinental Singapore
Slide 9: Portfolio Value as at Sep 2019
Portfolio Value as at 30 Sep 2019 Portfolio Value Germany Country 5% as at 30 Sep 2019 Malaysia Australia AUD 762.0 m 6% Japan Australia 9% 30% Singapore SGD 837.0 m Portfolio UK GBP 192.2 m Value UK Japan JPY 16,800.0 m 14% SGD 2.33 b Malaysia MYR 420.0 m Germany EUR 69.3 m Singapore 36% Total SGD
Slide 10: Financial Review for 4Q FY2019
Financial Review for 4Q FY2019 SGD m 4Q FY2019 4Q FY2018 Variance Gross Revenue (GR) 39.5 38.7 2.1% Net Property Income (NPI) 30.0 29.4 2.3% Distribution Income (DI) 22.3 23.0 2.9% Distribution Per Stapled Security (DPS) 1.1655 cents 1.2154 cents 4.1% GR and NPI improved yoy (year-on-year) due to
Slide 11: Financial Review for FY2019
Financial Review for FY2019 SGD m FY2019 FY2018 Variance GR 149.8 155.9 3.9% NPI 111.7 117.0 4.6% DI 83.9 89.4 6.1% DPS 4.4129 cents 4.7613 cents 7.3% GR and NPI declined yoy by 3.9% and 4.6% respectively due mainly to weaker performances of the Australia and Malaysia portfolios which were partial
Slide 12: Portfolio Contribution by Country for 4Q FY2019
Portfolio Contribution by Country for 4Q FY2019 Germany Germany 5% 6% Malaysia Malaysia Japan 5% 7% 10% Japan Australia Australia 31% 11% 38% GR NPI SGD 39.5 m SGD 30.0 m UK 19% UK 19% Singapore Singapore 26% 23% 12
Slide 13: Portfolio Contribution by Country for FY2019
Portfolio Contribution by Country for FY2019 Germany Germany 5% 6% Malaysia Malaysia Japan 4% 5% 11% Japan Australia 12% Australia 43% 36% GR NPI UK SGD 149.8 m SGD 111.7 m 16% UK 16% Singapore Singapore 21% 25% 13
Slide 14: Portfolio Highlights By Country for 4Q FY2019
Portfolio Highlights By Country for 4Q FY2019 4Q FY2019 Country Gross Operating Revenue (GOR) Gross Operating Profit (GOP) Local Currency Variance Local Currency Variance (m) (yoy) (m) (yoy) Australia 30.3 1.6% 12.3 2.8% Singapore 25.2 5.1% 10.4 11.1% UK 8.0 8.6% 4.6 8.2% Japan 1,422.2 9.0% 400.1 21
Slide 15: Portfolio Highlights By Country for FY2019
Portfolio Highlights By Country for FY2019 FY2019 Country Gross Operating Revenue (GOR) Gross Operating Profit (GOP) Local Currency Variance Local Currency Variance (m) (yoy) (m) (yoy) Australia 126.8 1.0% 53.4 3.6% Singapore 89.5 1.6% 37.1 3.5% UK 27.3 9.1% 14.3 6.9% Japan 6,118.8 0.7% 1,717.1 0.7%
Slide 16: Australia Portfolio Performance
Australia Portfolio Performance AUD m 4Q FY2019 4Q FY2018 Variance GOR 30.3 30.8 1.6% GOP 12.3 12.7 2.8% • Novotel Melbourne on Collins (NMOC) • Novotel Sydney Darling Square (NSDS) • Sofitel Sydney Wentworth (SSW) • Fraser Suites Sydney (FSS) - Australia portfolio’s GOR and GOP declined yoy by 1.6
Slide 17: Singapore Portfolio Performance
Singapore Portfolio Performance SGD m 4Q FY2019 4Q FY2018 Variance GOR 25.2 24.0 5.1% GOP 10.4 9.4 11.1% • InterContinental Singapore (ICSG) • Fraser Suites Singapore (FSSG) - Singapore portfolio registered a 5.1% increase in GOR and an 11.1% increase in GOP yoy. The better GOP performance was attri
Slide 18: UK Portfolio Performance
UK Portfolio Performance GBP m 4Q FY2019 4Q FY2018 Variance GOR 8.0 7.4 8.6% GOP 4.6 4.2 8.2% • ibis Styles London Gloucester Road (ISLG) • Park International London (PIL) • Fraser Place Canary Wharf (FPCW) • Fraser Suites Edinburgh (FSE) • Fraser Suites Glasgow (FSG) • Fraser Suites Queens Gate (FS
Slide 19: Japan Portfolio Performance
Japan Portfolio Performance JPY m 4Q FY2019 4Q FY2018 Variance GOR 1,422.2 1,305.0 9.0% GOP 400.1 329.5 21.4% • ANA Crowne Plaza Kobe (CPK) - CPK’s GOR increased 9.0% yoy due to higher room and F&B revenue. Its increase in GOP was steeper, by 21.4%, due to continual efforts in driving operational ef
Slide 20: Malaysia Portfolio Performance
Malaysia Portfolio Performance MYR m 4Q FY2019 4Q FY2018 Variance GOR 24.0 22.2 7.9% GOP 8.2 7.2 13.7% • The Westin Kuala Lumpur (TWKL) - TWKL’s GOR and GOP increased yoy by 7.9% and 13.7% respectively, mainly driven by higher revenue from rooms and F&B outlets. - The hotel’s RevPAR rose 4.8% yoy on
Slide 21: Strategy
Strategy Fraser Suites Glasgow
Slide 22: Enhancing Stapled Securityholders' Returns
Enhancing Stapled Securityholders’ Returns Active Asset Management Capital Management • Target at increasing revenue • Manage forex volatility and cost efficiencies, and • Debt cost of funding reducing property related • Taxation expenses Acquisition Growth AEI Value Creation • In line with investme
Slide 23: Recent Asset Enhancement Initiatives
Recent Asset Enhancement Initiatives ibis Styles London Gloucester Road (ISLG) – formerly Best Western Cromwell London Conversion from Best Western (franchised) to ibis Styles (AccorHotels managed) since 1 Jan 2018. Renovation to reposition the hotel in line with the ibis Styles brand was comple
Slide 24: Recent Asset Enhancement Initiatives
Recent Asset Enhancement Initiatives Novotel Sydney Darling Square (NSDS) – formerly Novotel Rockford Darling Harbour Franchise agreement with AccorHotels has been converted to management agreement since 1 Jan 2018. Renovation for all guest rooms, the lobby, all-day dining restaurant and meeting
Slide 25: Other Potential Asset Enhancement Initiatives
Other Potential Asset Enhancement Initiatives ANA Crowne Plaza Kobe Park International London Novotel Melbourne on Collins ANA Crowne Plaza Kobe Park International London Novotel Melbourne on Collins 25
Slide 26: Defensive Acquisition of Novotel Melbourne on Collins
Defensive Acquisition of Novotel Melbourne on Collins Location 270 and 233-239 Collins Street, Melbourne, Victoria, Australia Tenure Freehold Gross Floor 20,860 sq m (224,535 sq ft) Area Description Located along the prime Collins Street, in the heart of Melbourne CBD Surrounded by Grade A
Slide 27: Yield-Accretive Acquisition of Maritim Hotel Dresden
Yield-Accretive Acquisition of Maritim Hotel Dresden Devrientstr. 10 and 12, Kleine Packhofstr. 17, Location 01067 Dresden Tenure Freehold Located in Dresden’s historical city centre; within the vicinity of various government and Description business offices and major tourist attractions Dir
Slide 28: Yield-Accretive Acquisition of Sofitel Sydney Wentworth
Yield-Accretive Acquisition of Sofitel Sydney Wentworth Location 61 – 101 Phillip Street, Sydney, Australia Grade Luxury Leasehold 75-year leasehold Tenure Gross Floor 33,589 sqm Area An iconic heritage 5-star hotel strategically located in Sydney’s core CBD and within a Description short
Slide 29: Disciplined Approach in Capital Management
Disciplined Approach in Capital Management As at 30 Sep 2019 Balance Sheet Hedging Investment Properties SGD 2,107.0 m JPY 73.7% Property, Plant and SGD 223.4 m Equipment GBP 52.6% Total Assets SGD 2,446.5 m AUD 28.9% Total Borrowings SGD 854.2 m EUR 27.8% Gearing 35.1% Net Asset Value per MYR 22.6%
Slide 30: Prudent Risk Management
Prudent Risk Management Debt Maturity Profile As at 30 Sep 2019 (excludes short-term loans) Weighted Average Debt 4.63 years SGD m to Maturity 300.0 Unsecured Debt 96.2% 251.3 250.0 Effective Cost of Borrowing 2.5% 200.0 181.7 150.1 150.0 150.0 Borrowings on Fixed Rates 68.9% 100.0 100.0 Interest Co
Slide 31: Market Outlook
Market Outlook 31 The Westin Kuala Lumpur
Slide 32: Australia
Australia For the first 7 months of 2019, Tourism Australia reported a yoy increase of 2.2% in international arrivals to 5.3 million. While hotel visitor nights have grown nationally, the growth has been offset by new supply. Thus, occupancy rates have fallen and operators have responded by drop
Slide 33: Singapore
Singapore For the period from Jan to Aug 2019, the Singapore Tourism Board recorded a 1.9% yoy growth in international visitor arrivals to 12.9 million. Overall, the outlook for Singapore’s tourism sector is positive and the hotel market is expected to benefit from the robust supply and demand f
Slide 34: UK
UK According to VisitBritain, the UK welcomed 21.8 million overseas visitors in the first 7 months of 2019, unchanged yoy. Business visits were 1.0% below levels seen in 2018 while holiday visits were up 2.0% yoy, supported by the weaker pound. London has weathered the Brexit storm and proven it
Slide 35: Japan
Japan For the first 9 months of 2019, Japan National Tourism Organization reported a yoy growth of 4.0% in foreign visitors to 24.4 million. The Rugby World Cup 2019, which runs from 20 Sep to 2 Nov, is set to boost visitors during a shoulder season while the 2020 Tokyo Olympics is expected to b
Slide 36: Malaysia
Malaysia For the period from Jan to Jul 2019, Tourism Malaysia reported a 4.9% growth in tourist arrivals to 13.4 million, with Singapore, Indonesia and China being the biggest contributors of tourist arrivals to Malaysia. For the full year, Tourism Malaysia aims to achieve tourist arrivals of 28.
Slide 37: Germany
Germany For the first 8 months of 2019, the Federal Statistical Office of Germany recorded a yoy increase of 3.8% in the number of overnight stays by domestic and foreign visitors1. In Dresden, the total number of domestic and foreign visitors for the first 7 months of 2019 declined marginally b
Slide 38: Experience matters.
Experience matters. 38
Slide 39: Hotel Properties Managed by Third-Party Operators
Hotel Properties Managed by Third-Party Operators Property Country Description Tenure Class Rooms Novotel Strategically located within Melbourne on Australia Melbourne’s core CBD area Freehold Upscale 380 Collins along Collins Street 4.5-star hotel located within Novotel Sydney Mid- Australia close
Slide 40: Hotel Properties Managed by Third-Party Operators and Frasers Hospitality
Hotel Properties Managed by Third-Party Operators and Frasers Hospitality Property Country Description Tenure Class Rooms Elegant hotel ideally located in Park International Mid- UK the heart of Kensington and 75 years1 171 London scale Chelsea ANA Crowne Unique panoramic view of Kobe Upper Japan Fr
Slide 41: Serviced Residences Managed by Frasers Hospitality
Serviced Residences Managed by Frasers Hospitality Property Country Description Tenure Class Rooms First luxury apartments in Fraser Suites Sydney designed by Upper Australia 75 years1 201 Sydney internationally renowned Upscale architects Luxurious serviced residences in Fraser Suites Upper Singapo
Frasers Hospitality Trust — FY2019 Earnings Presentation on 6ix