Capitaland Ascott Trust · SGX:HMN
Capitaland Ascott Trust — H1 2024 Earnings Presentation
34 slides from Capitaland Ascott Trust's earnings presentation, Jul 26, 2024
Slide 1: 1H 2024 Financial Results
CapitaLand Ascott Trust 1H 2024 Financial Results 26 July 2024
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 04 Overview of CLAS Portfolio Updates 02 05 1H 2024 Financial Highlights Capital & Risk Management 03 06 Key Market Updates Looking Ahead Citadines Citadines CentralCentral Shinjuku Shinjuku Tokyo Tokyo
Slide 4: Overview of CapitaLand Ascott Trust
Overview of CapitaLand Ascott Trust Ascott Orchard Singapore
Slide 5: Largest Lodging Trust in Asia Pacific
Largest Lodging Trust in Asia Pacific Constituent of FTSE EPRA Nareit Global Developed Index S$8.5b The United Kingdom 5 properties China 5 properties Total Assets Ireland South Korea Belgium 1 property 2 properties >18,0001 The United States of America 11 properties Spain 2 properties Japan Units 1
Slide 6: CapitaLand Ascott Trust's Positioning
CapitaLand Ascott Trust’s Positioning Diversified and well-balanced portfolio to deliver sustainable returns Geographical Allocation Target Asset Allocation Predominantly in Asia Pacific Stable Income 25-30% in longer-stay Global in Base from Remainder in Europe/USA accommodation Presence, Longer-st
Slide 7: 1H 2024 Financial Highlights
1H 2024 Financial Highlights lyf one-north Singapore
Slide 8: 1H 2024 Gross Profit Rose 12% Y-o-Y
1H 2024 Gross Profit Rose 12% Y-o-Y Supported by sustained demand for accommodation and stronger operating performance Healthy operating performance across lodging asset classes and contract types 1H 2024 1H 2023 Y-o-Y Change • 1H 2024 revenue and gross profit increased 11% and 12% y-o-y respectivel
Slide 9: Delivering Resilience as Portfolio Reconstitution Progresses
Delivering Resilience as Portfolio Reconstitution Progresses Demonstration of CLAS’ proactive asset and capital management DPS – 1H 2024 vs 1H 2023 Same-store operating performance improved y-o-y Net effect of Impact of foreign currencies divestments, against SGD • Same-store operating performance w
Slide 10: Marrying Stability with Growth
Marrying Stability with Growth Underpinned by CLAS’ diversified geographic presence, lodging asset classes and income sources Portfolio RevPAU (S$) • Master leases 35% 65% Gross profit rose 14% y-o-y in 1H 2024 due to higher variable rent primarily in Japan and Growth Income 180 +4% 155 Stable Incom
Slide 11: Diversified Portfolio with Mix of Stable and Growth Income Streams
Diversified Portfolio with Mix of Stable and Growth Income Streams Stable income assets offer resilience while growth income assets enable CLAS to capture the upside Stable Income Sources Master leases 26.1% Growth Income Sources Longer-stay Australia 2.8% properties Management contracts for 34.6% h
Slide 12: Diversified Portfolio with Mix of Stable and Growth Income Streams
Diversified Portfolio with Mix of Stable and Growth Income Streams Global presence anchored in Asia Pacific and key gateway cities Asia Pacific 54.4% Europe 25.6% Australia 11.4% Belgium 1.0% China 2.9% France 7.8% Indonesia 1.7% Germany 3.1% Japan 15.8% Total Assets Ireland 1.4% Malaysia 0.4% S$8.5
Slide 13: Key Market Updates
Key Market Updates La Clef Louvre Paris
Slide 14: 2Q 2024 Performance Summary
2Q 2024 Performance Summary All key markets performed at or above same-store 2019 levels Well-staggered master lease expiry Actual RevPAU Same-store RevPAU Lease expiry for master leases5 (as at 30 Jun 2024) % of % 2Q 2019 74% 2Q 2024 2Q 2023 2Q 2024 Change pro forma RevPAU1 Australia AUD 130 136 (4
Slide 15: Australia
Australia Same-store RevPAU trends in line with pre-pandemic levels as travel demand moderates 11% of total assets, 12% of 1H 2024 gross profit: 2 SRs and 5 hotels under management contracts2; 1 hotel under management contract with minimum guaranteed income (MCMGI); 5 SRs under master leases Managem
Slide 16: France
France Higher revenue following master lease renewals; Olympic Games to provide boost in 3Q 2024 8% of total assets, 9% of 1H 2024 gross profit: 12 SRs under master leases • 1H 2024 revenue increased 1% y-o-y due to • As travel seasonality returns and booking lead Revenue (EUR’mil) higher rent recei
Slide 17: Japan
Japan Strong international leisure demand with cherry blossom season providing additional boost 16% of total assets, 17% of 1H 2024 gross profit: 2 hotels and 1 student accommodation under master lease; 3 SRs and 24 rental housing under management contracts Management Contracts – SRs Management Cont
Slide 18: Singapore
Singapore Concerts and conferences mitigate moderation in travel demand 16% of total assets, 7% of 1H 2024 gross profit: 1 SR and 1 hotel1 under MCMGI; 1 SR under management contract2; 1 SR under development Management Contracts – SRs • 2Q 2024 RevPAU for properties under management contracts and MC
Slide 19: United Kingdom
United Kingdom Outlook positive on summer season and events, as well as higher contribution from Citadines Holborn-Covent Garden London post-AEI 11% of total assets, 10% of 1H 2024 gross profit: 4 SRs and 1 hotel under MCMGI • 1H 2024 revenue and gross profit increased 47% • In 3Q 2024, corporate an
Slide 20: United States
United States Healthy demand for hotels; student accommodation continues to provide stable income 20% of total assets, 21% of 1H 2024 gross profit: 3 hotels and 8 student accommodation under management contracts Management Contracts – Hotels Management Contracts – Student Accommodation • 1H 2024 rev
Slide 21: Portfolio Updates
Portfolio Updates Paloma Raleigh
Slide 22: Proactive Investment & Portfolio Reconstitution
Proactive Investment & Portfolio Reconstitution Building a stronger portfolio, enhancing the quality and performance of CLAS’ properties Asset Divestment Investment Enhancement Investing in quality properties Asset enhancement to drive Divestments to unlock value at higher yields returns • Divesting
Slide 23: Divesting Properties at Premium to Book Value
Divesting Properties at Premium to Book Value Divesting S$408.1 mil in assets at average exit yield of 3.8%1; recycling capital into optimal uses Announced in 2023 Announced in Feb 2024 2 properties in 3 properties outside 4 properties in 1 property in outskirts of prime districts of regional France
Slide 24: Enhancing the Portfolio with New Assets
Enhancing the Portfolio with New Assets Adding exposure to a quality investment which surpassed initial EBITDA yield expectations Standard at Columbia Jun 2021 • CLAS’ development project, 678-bed Standard at Columbia, • CLAS and Sponsor 1 was completed in Jun 2023 jointly invested in the developmen
Slide 25: Enhancing the Portfolio with New Assets
Enhancing the Portfolio with New Assets Selectively undertaking turnkey acquisitions and development projects Teriha Ocean Stage • Completed turnkey acquisition of 258-unit rental housing property in Fukuoka, Japan in Jan 2024 • Located in Island City, an established family-centric residential area
Slide 26: Asset Enhancement Initiatives
Asset Enhancement Initiatives Uplifting the value and profitability of properties in prime locations of key gateway cities • Total capital expenditure of c.S$250 mil for the 8 AEIs partially funded by master lessee / operator Pipeline of asset enhancement projects to unlock • CLAS’ contribution of c
Slide 27: Asset Enhancement Initiatives – Completed in 1H 2024
Asset Enhancement Initiatives – Completed in 1H 2024 Refurbishment of properties in Singapore and Europe The Robertson House by Citadines Les Halles Paris Citadines Kurfürstendamm Berlin La Clef Tour Eiffel Paris The Crest Collection (Singapore) 1Q 2023 to 1Q 2024 2Q 2023 to 2Q 2024 4Q 2023 to 2Q 20
Slide 28: Sustainability Highlights
Sustainability Highlights In alignment with CapitaLand Investment’s 2030 Sustainability Master Plan (SMP) Sustainability ratings & indices Performance & reporting • 51% of CLAS’ gross floor area green certified as at May 2024, up from 37% in 2022 • Global Listed Sector Leader – Hotel o On track to m
Slide 29: Capital & Risk Management
Capital & Risk Management Somerset Millennium Makati
Slide 30: Capital Management
Capital Management Strong financial capacity and healthy liquidity position Strong capital Robust financing Fortifying liquidity management flexibility reserves S$1.15 37.2% c.S$1.29 bil NAV per Stapled Security Total available funds Gearing1 (c.S$2.1 bil debt Interest cover headroom2) 3.7X 3 = 50%
Slide 31: Capital Management
Capital Management Well-staggered debt maturity profile and diversified funding sources 66% : 34% c.82% 3.6 years Key Updates Bank loans : Medium Term Notes Total debt on fixed rates Weighted average debt to maturity • Part of CLAS’ divestment proceeds has been used to pare down higher-interest rate
Slide 32: Looking Ahead
Looking Ahead La Clef Tour Eiffel Paris
Slide 33: Poised for Sustained Growth
Poised for Sustained Growth Portfolio reconstitution and AEIs provide further capacity for growth as pent-up demand moderates CLAS remains cautiously optimistic on the demand for lodging • International visitor arrivals projected to grow 2% above pre-pandemic levels in 20241 • High borrowing costs,
Slide 34: Thank You
Thank You Citadines Connect Sydney Airport
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