Capitaland Ascott Trust · SGX:HMN

Capitaland Ascott Trust — Ascott Residence Trust — FY2010 Earnings Presentation

58 slides from Capitaland Ascott Trust's earnings presentation, February 2011

  1. Slide 1: Ascott Residence Trust Presentation to Investors

    Ascott Residence Trust Presentation to Investors February 2011

  2. Slide 2: Agenda

    Agenda • Introduction • Results Highlights • 4Q 2010 Portfolio Performance • Portfolio Information • Capital and Risk Management • Prospects • Summary • Appendices 2

  3. Slide 3: Disclaimer

    Disclaimer IMPORTANT NOTICE The value of units in Ascott Residence Trust (“Ascott Reit”) (the “Units”) and the income derived from them may fall as well as rise. The Units are not obligations of, deposits in, or guaranteed by the Manager of Ascott Reit (the “Manager”) or any of its affiliates. An in

  4. Slide 4: Ascott Reit – Balanced and Diversified Portfolio

    Ascott Reit – Balanced and Diversified Portfolio United Kingdom (4) Belgium (2) France (17) Germany (2) Spain (1) Japan (20) China (3) Vietnam (5) Philippines (3) Singapore (3) Indonesia (2) Australia (2) S$2.71 billion1 portfolio value 6,431 apartment units in 64 properties 23 cities in 12 countrie

  5. Slide 5: Serviced Residences – An Attractive Asset Class

    Serviced Residences – An Attractive Asset Class Apartments for Serviced Residences Hotels Rent Long-term leases Hybrid between hotels and Short-term accommodation Lease Structure & apartments/condominiums Terms Variable lease terms from one week to one year or longer Dependent on Some seasonality of

  6. Slide 6: Results Highlights

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  7. Slide 7: FY 2010 vs FY 2009 Performance

    FY 2010 vs FY 2009 Performance FY 2010 FY 2009 Change Revenue (S$m) 207.2 175.5 +18% Gross Profit (S$m) 101.4 84.6 +20% Unitholders’ Distribution (S$m) 57.7 45.2 +28% Distribution Per Unit (S cents) 7.54 7.32 +3% Revenue Per Available Unit 130 123 +6% (S$/day) – serviced residences • Increase in rev

  8. Slide 8: 4Q 2010 vs 4Q 2009 Performance

    4Q 2010 vs 4Q 2009 Performance 4Q 2010 4Q 2009 Change Revenue (S$m) 72.8 46.1 +58% Gross Profit (S$m) 39.3 21.9 +80% Unitholders’ Distribution (S$m) 23.9 11.5 +108% Distribution Per Unit (S cents) 2.16 1.87 +16% Revenue Per Available Unit 137 123 +11% (S$/day) – serviced residences • On a same store

  9. Slide 9: 4Q 2010 vs 4Q 2009 Performance (Revenue)

    4Q 2010 vs 4Q 2009 Performance 4Q 2010 4Q 2009 Change Revenue (S$m) 72.8 46.1 +58% • Increase in revenue mainly due to additional revenue of S$30.3 million from the 28 properties injected into the portfolio on 1 October 2010, partially off-set by the decrease in revenue of S$4.6 million from the div

  10. Slide 10: 4Q 2010 vs 4Q 2009 Performance (Gross Profit)

    4Q 2010 vs 4Q 2009 Performance 4Q 2010 4Q 2009 Change Gross Profit (S$m) 39.3 21.9 +80% • Increase in gross profit mainly due to additional contribution of S$19.2 million from the 28 properties injected into the portfolio on 1 October 2010, partially offset by the decrease in gross profit of S$1.6 m

  11. Slide 11: 4Q 2010 vs Forecast Performance

    4Q 2010 vs Forecast Performance 4Q 2010 Forecast(1) Change Revenue (S$m) 72.8 68.8 +6% Gross Profit (S$m) 39.3 36.3 +8% Unitholders’ Distribution (S$m) 23.9 20.6 +16% Distribution Per Unit (S cents) 2.16 1.84 +17% Revenue Per Available Unit 137 127 +8% (S$/day) – serviced residences • Revenue and Re

  12. Slide 12: Distribution Details

    Distribution Details Paid To Be Paid 1 January to 1 July to Distribution 22 September to 30 June 21 September Period 31 December 2010 2010 2010 Distribution 3.53 cents 1.74 cents 2.27 cents Rate per unit per unit per unit Book Closure 2 August 21 September 31 January 2011 Date 2010 2010 Distribution

  13. Slide 13: Property Valuation

    Property Valuation • Independent valuation conducted by Jones Lang LaSalle Property Consultants Pte Ltd and Savills Advisory Services Limited • Net change in property value comprised - A surplus on revaluation of S$4.9 million mainly from higher valuation of the Group’s serviced residences in Singap

  14. Slide 14: 4Q 2010 Portfolio Performance

    4Q 2010 Portfolio Performance 14

  15. Slide 15: Master Leases

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  16. Slide 16: Master Leases

    Master Leases Citadines Citadines Citadines Citadines Citadines Citadines Somerset Louvre Les Halles Place Croisette Arnulfpark Kurfursten- Salcedo Paris Paris d’Italie Cannes Munich damm Makati Paris Berlin Revenue Gross Profit 4Q 2010 4Q 2009 Forecast 4Q 2010 4Q 2009 Forecast S$’M S$’M S$’M S$’M S

  17. Slide 17: Management Contracts with Guarantee

    Management Contracts with Guarantee 17

  18. Slide 18: Overview of Management Contracts with Guarantee

    Overview of Management Contracts with Guarantee • 8 out of Ascott Reit’s 64 properties are on management contracts that provide minimum guaranteed income. • The minimum guaranteed income constitutes 16% of the Group’s gross profit for 4Q 2010. • These management contracts have an average weighted re

  19. Slide 19: United Kingdom

    United Kingdom Citadines Citadines +9% Citadines Citadines Barbican Prestige Prestige Trafalgar 174 London Holborn- South Square 159 S$m +15% Covent Kensington London Garden London 12 10.5 9.1 +31% 8 5.5 4.2 4 0 Revenue Gross Profit RevPAU S$ Forecast 4Q 2010 Continued market improvement enabled the

  20. Slide 20: Belgium

    Belgium Citadines Sainte- Citadines Toison Catherine Brussels d’Or Brussels S$m +19% +21% 4 3.2 94 2.7 78 +50% 2 0.9 0.6 0 Revenue Gross Profit RevPAU Forecast 4Q 2010 S$ Increase in revenue mainly arose due to the postponement of renovation for Citadines Sainte-Catherine to the low season months of

  21. Slide 21: Spain

    Spain Citadines Ramblas Barcelona S$m +4% 2 1.5 1.5 100 104 1 0.7 0.7 0 Revenue Gross Profit RevPAU Forecast 4Q 2010 S$ There was a top-up by the property manager of S$0.1 million for Citadines Ramblas Barcelona, though RevPAU is higher than forecast 21

  22. Slide 22: Vietnam

    Vietnam Somerset West Lake Hanoi -8% S$m -3% 1 0.9 0.9 0.9 93 98 90 0.5 0.5 0.5 0.5 0 Revenue Gross Profit RevPAU1 4Q 2009 Forecast 4Q 2010 S$ Revenue for Vietnam for 4Q 2010 included a yield protection amount of S$0.2 million for Somerset West Lake due to low rental rates achieved 1 RevPAU for 4Q 2

  23. Slide 23: Management Contracts

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  24. Slide 24: Australia

    Australia +12% Somerset Somerset +19% 175 St George’s Gordon Heights 156 Terrace Perth Melbourne 147 S$m +11% +11% 3 1.9 1.9 2.1 2 +17% +75% 1 0.6 0.4 0.7 0 Revenue Gross Profit RevPAU1 4Q 2009 Forecast 4Q 2010 S$ Improved performance mainly due to higher demand for serviced residences as a result o

  25. Slide 25: China

    China Somerset Somerset Somerset Xu Hui Grand Olympic Shanghai Fortune Tower Garden Property -10% Property Tianjin S$m Beijing 123 118 10 9.2 -6% 119 106 5.0 4.7 5 5.2 3.5 1.8 1.8 2.1 0 Revenue Gross Profit RevPAU1 4Q 2009 Forecast 4Q 2010 Same store2 S$ Lower performance due to increased competitio

  26. Slide 26: Indonesia

    Indonesia Ascott Somerset S$m Jakarta Grand Citra Jakarta +23% 10.0 +13% 71 87 6.2 66 84 4.8 5.4 +38% 74 5.0 4.0 4.2 4.1 2.5 1.3 1.1 1.8 0.9 0.8 0.0 Revenue Gross Profit RevPAU1 4Q 2009 Forecast 4Q 2010 Same store2 and exclude BI claim S$ Revenue improved due to increased business from information t

  27. Slide 27: Japan

    Japan +4% +1% Somerset Azabu Somerset 18 rental housing East Tokyo Roppongi properties in 157 152 158 S$m -2% Tokyo Tokyo 6 +2% 4.6 4.4 4.5 -7% -7% 4 2.7 2.7 2.5 2.2 2.1 2.2 2 0.9 0.8 0.9 0 Revenue1 Gross Profit 1 RevPAU2 4Q 2009 Forecast 4Q 2010 Serviced residence contribution S$ Lower performance

  28. Slide 28: Philippines

    Philippines -4% -2% Ascott Makati Somerset Millennium 157 160 154 S$m -4% Makati -3% 10 7.4 7.3 7.1 -9% 5 3.2 2.9 2.9 0 Revenue Gross Profit RevPAU1 4Q 2009 Forecast 4Q 2010 S$ Lower performance due to weaker market demand 1 RevPAU for 4Q 2009 has been adjusted to be consistent with current period’s

  29. Slide 29: Singapore

    Singapore +15% 234 Somerset Somerset Citadines 213 219 Grand Cairnhill Liang Court Mount Sophia S$m Singapore Property Property 191 168 15 +13% Singapore Singapore 11.8 10.4 10 +8% 6.9 9.2 8.4 5.3 5.7 5 3.6 4.4 4.5 0 Revenue Gross Profit RevPAU1 4Q 2009 Forecast 4Q 2010 Same store2 S$ Increase in re

  30. Slide 30: Vietnam

    Vietnam Somerset Somerset Somerset Somerset Ho Grand Hanoi Hoa Binh Chancellor Chi Minh +2% S$m Hanoi Court Ho Chi City 15 +2% Minh City 122 109 120 111 115 10.4 10.6 +5% 10 8.8 8.5 8.4 6.1 6.4 5.1 5.3 5 5.2 0 Revenue Gross Profit RevPAU1 4Q 2009 Forecast 4Q 2010 Same store2 S$ On a same store basis

  31. Slide 31: 4Q 2010 Portfolio Information

    4Q 2010 Portfolio Information 31

  32. Slide 32: Geographical Diversification

    Geographical Diversification Ascott Reit’s Share of Asset Values As at 31 December 2010 Australia Belgium Spain 1.6% 1.7% Germany 1.8% 2.0% Singapore Japan 21.3% 10.6% France United 20.4% Kingdom 16.4% Indonesia 3.6% Vietnam Philippines 8.6% China 6.9% 5.1% Total Total = = S$2.71 S$2.71 billion bill

  33. Slide 33: Income Stability

    Income Stability Proportion of Gross Profit from Master Leases and Guaranteed Income Non-Master Leases and Non-Guaranteed Income 59% Guaranteed Income 16% Master Leases and Guaranteed Income Master Leases 41% 25% 2011 Both Both master master leases leases and and serviced serviced residence residenc

  34. Slide 34: Length of Stay and Market Segment

    Length of Stay and Market Segment Apartment Rental Income Apartment Rental Income By Length of Stay1,2 By Market Segment1,2 1 week or Others less Family/ > 12 months 7% 17% Leisure 21% 6% Relocation 20% Business 6 to 12 Trip months < 1 month 50% 13% 29% 1 to 6 months Project 20% 17% Average Average

  35. Slide 35: Diverse Tenant Mix

    Diverse Tenant Mix Apartment Rental Income By Industry1,2 Healthcare 2% Others 5% Industrial Real estate/ 18% Lodging 12% Financial Media & Institutions Telecomms 15% 2% Manufacturing 6% Govt & NGOs IT 14% 7% Consumers Energy & 9% Utilities 10% Earnings Earnings diversified, diversified, not not rel

  36. Slide 36: Capital & Risk Management

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  37. Slide 37: Healthy Balance Sheet

    Healthy Balance Sheet • Gearing of 40.3%, well within the 60% gearing limit allowable under MAS property fund guidelines Ascott Ascott Reit Reit Gearing Gearing Profile Profile As As at at 31 31 December December 2010 2010 2500 Debt S$1,091.4m (40.3%) 2000 Ascott Reit’s 1500 proportionate share of a

  38. Slide 38: Debt Profile

    Debt Profile Maturity Profile Currency Profile As at 31 December 2010 As at 31 December 2010 S$’m S$’m S$461.8m*, 500 500 42% S$420.8m, S$399.6m, 39% 37% 400 400 S$281.7m, 300 300 26% S$193.2m, 18% 200 200 S$115.4m, S$121.8m, 11% S$86.8m, 11% 7% S$69.5m, 100 100 S$27.8m, 6% 3% S$4.4m, <1% 0 0 2011 2

  39. Slide 39: Interest Rate Profile

    Interest Rate Profile Interest Rate Profile As at 31 December 2010 Floating S$294.8m (27%) Floating with interest rate caps, Fixed S$244.1m (22%) *S$552.5m (51%) Effective Effective Borrowing Borrowing Rate Rate of of 3.3% 3.3% Interest Interest Cover Cover Ratio Ratio of of 3.7x 3.7x * S$251.7m is

  40. Slide 40: Capital Management

    Capital Management • Increase the average debt maturity profile by extending the tenures of loans due for refinancing • Structure debt currency profile to match the currency exposure of the underlying assets to the extent possible • Increase the proportion of fixed interest rate loans to more than 6

  41. Slide 41: Foreign Exchange Profile

    Foreign Exchange Profile Ascott Reit’s Share of Gross Profit Foreign Exchange Movements 4Q 2010 Australia Percentage of Foreign exchange Japan S$0.7m Singapore Ascott Reit’s rate movements S$2.5m S$5.7m Currency Share of Gross in 4Q 2010 China Belgium Profit S$1.8m S$1.0m 4Q 2010 Philippines S$3.1m

  42. Slide 42: Foreign Exchange Management

    Foreign Exchange Management • Cashflows – Manage volatility of foreign currency cash flow from overseas assets • Revenue and operating expenses are mainly in respective local currency • Vietnam – Majority of revenue* and operating expenses are in local currency • Indonesia - Majority of revenue in U

  43. Slide 43: Prospects

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  44. Slide 44: Prospects

    Prospects In 2011, the Group expects the Singapore properties to continue to benefit from increasing demand for serviced apartments as a result of the robust economy and vibrant hospitality market. The Group also expects the United Kingdom (“UK”) properties to do well in 2011 in the lead up to the 2

  45. Slide 45: Summary

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  46. Slide 46: Summary

    Summary Exposure to Demand for serviced residences underpinned by FDI inflows and GDP growth Serviced Residence asset Operated under established international brands: Ascott, Citadines and class Somerset Balanced Significant presence in the Pan Asia region (58%) and added diversification to exposure

  47. Slide 47: Thank You

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  48. Slide 48: Appendix: Ascott Reit Portfolio

    Appendix: Ascott Reit Portfolio 48

  49. Slide 49: Ascott Reit Asia Portfolio

    Ascott Reit Asia Portfolio Australia China Somerset Gordon Heights Somerset St Georges Somerset Grand Fortune Somerset Xu Hui Somerset Olympic Melbourne Terrace Perth Garden Property Beijing Shanghai Tower Property Tianjin • Located in Melbourne’s Central • Located in Perth’s Central • Located along

  50. Slide 50: Ascott Reit Asia Portfolio

    Ascott Reit Asia Portfolio Japan Somerset Azabu East Tokyo Somerset Roppongi Tokyo 18 rental housing properties in Tokyo • Located in Minato-Ku in Tokyo’s • Located in Minato-Ku in Tokyo’s • 509 rental housing units located in eight wards in Tokyo, namely Shinjuku-ku, Central Business District Centr

  51. Slide 51: Ascott Reit Asia Portfolio

    Ascott Reit Asia Portfolio Singapore Somerset Liang Court Property Somerset Grand Cairnhill Citadines Mount Sophia Property Singapore Singapore Singapore • Located along River Valley Road • Located along Orchard Road, • Number of Apartment Units: 154 with easy access to the Central Singapore’s main

  52. Slide 52: Ascott Reit Europe Portfolio

    Ascott Reit Europe Portfolio France (in Paris) Citadines Louvre Paris Citadines Trocadéro Paris Citadines Place d’Italie Paris Citadines Montmartre Paris • Number of Apartment Units: 51 • Number of Apartment Units: 97 • Number of Apartment Units: 169 • Number of Apartment Units: 111 • Net Floor Area

  53. Slide 53: Ascott Reit Europe Portfolio (cont’d)

    Ascott Reit Europe Portfolio (cont’d) France (in Paris) France (outside Paris) Citadines Porte de Versailles Citadines Prado Chanot Citadines Les Halles Paris Citadines Croisette Cannes Paris Marseille • Number of Apartment Units: 189 • Number of Apartment Units:80 • Number of Apartment Units: 58 •

  54. Slide 54: Ascott Reit Europe Portfolio (cont’d)

    Ascott Reit Europe Portfolio (cont’d) United Kingdom Citadines Prestige South Citadines Trafalgar Square Citadines Prestige Holborn- Citadines Barbican London Kensington London London Covent Garden London • Number of Apartment Units:129 • Number of Apartment Units: 92 • Number of Apartment Units: 18

  55. Slide 55: Appendix: Brand Introduction

    Appendix: Brand Introduction 55

  56. Slide 56: Ascott The Residence

    Ascott The Residence • Defining Exclusive Living – Luxurious, exclusive, discreet – Located in prime business districts of key cities – Provides efficient business support services, in an exclusive and luxurious environment 56

  57. Slide 57: Citadines Apart’hotel

    Citadines Apart’hotel • Defining Vibrant Living – Vibrancy of independent city living – Oasis of calm in key bustling cities – Personalised conveniences for savvy and vibrant individuals on the go – Range of services and amenities to complement different lifestyles – Modern comforts, business connec

  58. Slide 58: Somerset Serviced Residence

    Somerset Serviced Residence • Defining Balanced Living – A serviced residence for executives and their families looking for work life balance – A stylish home with recreational facilities, lifestyle activities and business support services – A place to make friends, share family experiences, get hel

Ascott Residence Trust — FY2010 Earnings Presentation on 6ix