CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — Q3 2008 Earnings Presentation
52 slides from CDL Hospitality Trusts's earnings presentation, Oct 29, 2008
Slide 1: Presentation of 3Q 2008 Results
Presentation of 3Q 2008 Results 29 October 2008
Slide 2: Disclaimer
Disclaimer The value of Stapled Securities and the income derived from them may fall as well as rise. Stapled Securities are not obligations of, deposits in, or guaranteed by the H-REIT Manager or M&C Business Trust Management Limited, as trustee of CDL Hospitality Business Trust (the “HBT Trustee-M
Slide 3: Table Of Contents
Table Of Contents Highlights Performance of CDL Hospitality Trusts Priorities over the next 3 – 6 months Annexe ♦ Background and structure of CDL Hospitality Trusts ♦ Prospects for hospitality in Singapore ♦ Information on CDL Hospitality Trusts hotels 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Executive Summary 1
Executive Summary 1 1 Visitor arrivals for Jul to Aug 2008 totaled 1.76 million, representing a decrease of 5.7% over the same period last year 2 Strong underlying performance of CDL-HT Singapore hotels(1): All Singapore Hotels 3Q ’08 3Q ’07 Growth YTD Sep ’08 YTD Sep ’07(2) Growth Occupancy 85.5% 8
Slide 6: Executive Summary 2
Executive Summary 2 3 Strong 3Q 2008 performance by CDL-HT vs. 3Q 2007 - Gross revenue(1) of $29.1 million - up 21.3% - Net property income(1) of $27.3 million - up 20.7% - Income available for distribution per unit of 2.93 cents - up 24.2% 4 Overall, strong YTD Sep 2008 performance by CDL-HT vs. YT
Slide 7: Performance of CDL Hospitality Trusts
Performance of CDL Hospitality Trusts 7
Slide 8: Growth From 2 Of Top 5 Markets For Jul-Aug 2008
Growth From 2 Of Top 5 Markets For Jul- Aug 2008 Breakdown of Visitor Arrivals To Singapore Growth in Top 10 Visitor For Jul-Aug '08 Arrival Countries for Singapore (Jul-Aug '08 vs. Jul-Aug '07) Others, 513,599 29% -1.1% Philippines -2.7% USA Philippines, Indonesia, -11.5% South Korea 68,357 300,592
Slide 9: Singapore – Overall Visitor Arrivals For YTD Aug 2008
Singapore – Overall Visitor Arrivals For YTD Aug 2008 Breakdown of Visitor Arrivals To Singapore Growth in Top 10 Visitor For Jan-Aug '08 Arrival Countries for Singapore (Jan-Aug '08 vs. Jan-Aug '07) Others, 1,840,672 27% -5.2% Philippines 0.1% USA Philippines, 272,831 Indonesia, 4% 1,157,203 0.5% S
Slide 10: Strong Year-On-Year Hotel Performance: Actual – 3Q '08 Vs 3Q '07
Strong Year-On-Year Hotel Performance: Actual – 3Q ’08 Vs 3Q ’07 CDL-HT Singapore Hotels ARR: 3Q '07 v 3Q '08 S$ +27.6% RevPAR: 3Q '07 v 3Q '08 300 $250 S$ 250 $196 +21.6% 200 $214 150 200 100 $176 50 0 150 3Q '07 3Q '08 Occupancy: 3Q '07 v 3Q '08 92% 100 89.9% -4.4 pp or -4.9% 90% 88% 85.5% 50 86%
Slide 11: Gross Revenue, NPI And Income Available For Distribution Per Unit: 3Q '08
Gross Revenue, NPI And Income Available For Distribution Per Unit: Actual – 3Q ’08 Vs 3Q ’07 CDL-HT Singapore Hotels S$’000 Gross Revenue Income Available For 35,000 +21.3% Distribution Per Unit 29,086 S$ cents 30,000 25,000 23,970 3.50 20,000 +24.2% 2.93 15,000 3.00 10,000 5,000 2.50 2.36 0 3Q '07
Slide 12: Strong Year-On-Year Hotel Performance: YTD Sep '08 Vs Pro Forma YTD Sep '07
Strong Year-On-Year Hotel Performance: Actual YTD Sep ’08 Vs Pro Forma(1) YTD Sep ’07 CDL-HT Singapore Hotels S$ ARR: YTD Sep '07 v YTD Sep '08 RevPAR: YTD Sep '07 v YTD Sep '08 +31.4% S$ 300 $215 $251 +29.5% 250 $191 200 200 150 $166 100 50 150 0 YTD Sep '07 YTD Sep '08 Occ: YTD Sep '07 v YTD Sep '
Slide 13: Gross Rev, NPI & Income Available For Distribution Per Unit: YTD Sep '08
Gross Rev, NPI & Income Available For Distribution Per Unit: Actual – YTD Sep ’08 Vs Sep ’07 CDL-HT Singapore Hotels (1) S$’000 Gross Revenue Income Available For 100,000 +38.0% 90,000 86,515 Distribution Per Unit(2) 80,000 S$ cents 70,000 62,694 60,000 10.00 50,000 +41.8% 8.82 40,000 9.00 30,000 20
Slide 14: Breakdown Of Gross Revenue By Property 3Q '08 Vs 3Q '07
Breakdown Of Gross Revenue By Property Actual - 3Q ’08 Vs 3Q ’07 Gross Revenue from H-REIT Properties S$ M +21.3% S$ 29.1M 30 Key: S$ 24.0M 19% 5.5 25 Novotel Clarke Quay 8% 2.3 16% 3.8 Rendezvous Hotel Auckland 4% 1.1 20 9% 2.2 9% 2.6 Orchard Hotel Shopping Arcade 4% 0.9 Copthorne King’s Hotel 10%
Slide 15: Breakdown Of Gross Rental Revenue By Property For 3Q 2008
Breakdown Of Gross Rental Revenue By Property For 3Q 2008 Grand Orchard Copthorne Copthorne Hotel Rendez- Novotel Orchard Waterfront King’s Shopping vous Clarke Hotel Hotel M Hotel Hotel Arcade Hotel Quay Gross Rental Revenue $ 7.5M $5.8M $4.2M $2.6M $1.1M $2.3M $5.5M (Actual for 3Q ‘08) Gross Renta
Slide 16: Strong Balance Sheet
Strong Balance Sheet S$ Debt Values (S$ M)(1) 400 Debt / Assets Ratio (2) 297 300 280 30% 200 100 25% 0 20% 18.1% As at 30 Jun '08 As at 30 Sep '08 16.9% S$ Total Assets (S$ M) 15% 1,800 1,654 1,637 1,600 10% 1,400 1,200 1,000 5% 800 600 0% 400 200 As at 30 Jun '08 As at 30 Sep '08 0 As at 30 Jun '0
Slide 17: Debt Details
Debt Details Debt Terms Credit Metrics Debt facilities expiring in July Fitch Issuer Default Rating: 2009 BBB- Cost of Debt Debt to assets ratio(2): For S$: S$220M fixed at 2.43% + 18.1% margin Amounts beyond S$220M are Interest Cover(3) : floating 3-month SOR(1) + margin 12.2 x
Slide 18: Priorities Over The Next 9 Months
Priorities Over The Next 9 Months 18
Slide 19: Priorities: Manage our assets for yield
Priorities 1 Manage our assets for yield Examples of Some Activities Optimizing market mix of rooms Cost discipline Pooling of resources across hotels 19
Slide 20: Priorities: Refinance our existing loans
Priorities 2 Refinance our existing loans Some Options(1) Being Considered MTN Bank debt (1) The set of options presented here are non-exclusive and other options may be considered as and when they arise 20
Slide 21: Priorities: Patience with acquisitions
Priorities 3 Patience with acquisitions Target Distressed assets Good, value-enhancing acquisitions 21
Slide 22: Background and Structure of CDL Hospitality Trusts
Background and Structure of CDL Hospitality Trusts 22
Slide 23: Background To CDL-HT
Background To CDL-HT Background Post IPO Performance • IPO on 19 July 2006 Announcement of Equity Unit price increase Fund Raising High (10 Jul ’07) IPO to 28 Oct 08 = -29.5% 1 Jan 08 to 28 Oct 08 = -75.1% • Listed on SGX Mainboard $3.00 = S$2.28 = S$2.66 Announcement of • Sponsored by Millennium $2
Slide 24: CDL-HT Structure
CDL-HT Structure Sponsor Investors ≈38.7% Holdings of Stapled Securities ≈61.3% H-REIT Distributions HBT Management services Stapling Deed M&C REIT M&C Business Trust Management Limited H-REIT HBT(1) Management Limited (H-REIT Manager) (owns hotels) (HBT Trustee Manager) Lease of Hotels Management s
Slide 25: Lease Structures
Lease Structures • Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel: • 20% of Hotel's revenue + 20% of Hotel’s gross operating profit subject to a Fixed Rent Favourable floor of $26.4 m Lease Structure in Base • Term of 20 years from Listing with 20 year option Portfo
Slide 26: CDL-HT Asset Portfolio
CDL-HT Asset Portfolio Orchard Grand Copthorne M Hotel Copthorne Orchard Hotel Rendezvous Novotel Total Hotel Waterfront Hotel King’s Hotel Shopping Arcade Hotel Auckland Clarke Quay Number of 653 574 413 310 N/A 455 401 2,806 Rooms NZ$114.0M Valuation S$458.0M S$334.0M S$253.0M S$141.0M S$40.3M S$2
Slide 27: Hotels In Strategic Locations
Hotels In Strategic Locations Singapore Hotels New Zealand Hotel Orchard Grand Copthorne M Hotel Novotel Hotel & Copthorne King’s Clarke Quay Rendezvous Shopping Waterfront Hotel Hotel Arcade Hotel Auckland ORCHARD ROAD SINGAPORE RIVER INTEGRATED RESORT SITE CENTRAL BUSINESS DISTRICT BUSINESS & FINA
Slide 28: Growth in CDL-HT Total Property Value
Growth in CDL-HT Total Property Value Valuation of H-REIT Properties S$ M 1,800 +47.8% 1,628.8M Key: 1,600 +30.2% 275 16.9% Novotel Clarke Quay 1,400 . Rendezvous 128 7.8% 1,101.9M Orchard 1,200 Grand Copthorne Waterfront 123 M 11.1% 1,000 846.3M 458 28.1% Copthorne King's Orchard Hotel Shopping Arc
Slide 29: Composition Of CDL-HT Property Value
Composition Of CDL-HT Property Value Valuation at 31 Dec 2006 (S$ M) Valuation at 31 Dec 2007 (S$ M) Orchard Hotel Shopping Orchard Hotel Shopping Arcade, $40 Rendezvous, Arcade, $35 $123 Novotel Clarke Quay, Copthorne King's, $101 $275 Copthorne King's, $141 3% 2% 11% 9% 9% 17% M Hotel, $253 M Hote
Slide 30: Blue Chip Sponsor And Parentage
Blue Chip Sponsor And Parentage Millennium & Copthorne Hotels plc City Developments Limited Listed on the London Stock Exchange with market One of the largest property developers in Singapore capitalisation of ~ £538.8 million(1) with a market capitalization of S$5.5 billion(1) Debt to assets ratio
Slide 31: Prospects for Hospitality in Singapore
Prospects for Hospitality in Singapore 31
Slide 32: Strong Historical Growth In Visitor Arrivals
Strong Historical Growth In Visitor Arrivals Visitor Arrivals In Singapore Average Visitor Length of Stay +5.1% +5.4% 12,000 3.7 +9.0% 10,800 3.6 +7.4% 10,275 9,748 3.6 10,000 8,942 8,328 3.5 8,000 Thousands 3.4 3.4 3.4 Days 6,000 3.3 3.2 3.2 3.2 4,000 3.2 3.1 2,000 3.1 0 3.0 2004 2005 2006 2007 200
Slide 33: Strong And Stable Historical Business Growth – Leisure Travel Growth Lagging
Strong And Stable Historical Business Growth – Leisure Travel Growth Lagging Purpose of Visit 12 Millions 2000 to 2007 CAGR = +4.2% 10.3 Contribution to 9.7 2000 – 2007 0.2 10 CAGR 8.9 0.2 0.9 0.6 Education + 6.1% 8.3 0.1 0.6 1.0 7.7 7.5 7.6 0.2 1.2 Not Stated 8 0.5 + 11.0% 0.0 Visitor Arrivals 0.1
Slide 34: Asian Markets Increasingly Important
Asian Markets Increasingly Important New growth markets tapped Composition of Visitor Arrivals Ranking in 12 Millions 10.3 2000 2007 9.7 Rest of the World 10 Taiwan 10 13 1.8 8.3 Hong Kong 11 12 1.6 7.7 0.2 Thailand 12 11 0.2 0.3 8 0.3 0.4 1.3 USA 7 10 Visitor Arrivals 0.4 0.4 1.4 0.2 0.4 0.4 0.3 0.
Slide 35: Singapore – Overall Visitor Arrivals For YTD Aug 2008
Singapore – Overall Visitor Arrivals For YTD Aug 2008 Breakdown of Visitor Arrivals To Singapore Growth in Top 10 Visitor For Jan-Aug '08 Arrival Countries for Singapore (Jan-Aug '08 vs. Jan-Aug '07) Others, 1,840,672 27% -5.2% Philippines 0.1% USA Philippines, 272,831 Indonesia, 4% 1,157,203 0.5% S
Slide 36: China, Australia And India – Strong As Source Markets
China, Australia And India – Strong As Source Markets Destinations Of China Residents In 2006 Destinations Of Australia Residents In Destinations Of India Residents In 2006 2006 Hong Kong 13,591.3 New Zealand 903.5 Singapore 658.7 Macau 11,985.6 Singapore 691.5 Thailand 459.8 Singapore 1,037.0 USA 6
Slide 37: Average Length Of Stay – The Wildcard Multiplier
Average Length Of Stay – The “Wildcard Multiplier” Average visitor length of stay increasing … with potential for continued growth … since > 60% of visitors stay 2 days or less Average Length of Stay Distribution Of Length Of Stay 4.2 100% 90% 20.9% 20.4% 21.4% 21.6% 23.4% 23.4% 23.6% 24.3% 4.0 4.0
Slide 38: Long Term Forecast Is For Continuing Growth In Visitor Arrivals
Long Term Forecast Is For Continuing Growth In Visitor Arrivals Visitor Arrivals In Singapore Average Visitor Length of Stay(1) CAGR for 2007 18,000 to 2015 = 3.7 17,000 3.6 3.6 16,000 +6.7% 3.6 14,000 +5.1% 3.5 12,000 10,800 3.4 Thousands 10,275 3.4 Days 10,000 8,000 3.3 6,000 3.2 4,000 3.1 2,000 0
Slide 39: Singapore Ranked Top Global City For Meetings
Singapore Ranked Top Global City For Meetings For the first time, Singapore was ranked world’s top international Top International meeting city in 2007 in Union of Meeting City International Associations (UIA) 2007 Global Rankings. Singapore was also ranked Asia’s top city for meetings for the 25th
Slide 40: Significant Investments To Attract MICE Business
Significant Investments To Attract MICE Business Marina Resorts Bay World at Sands Sentosa Investment S$5 Billion S$5.2 Billion Amount Hotels 2,500 5-star rooms in three hotel towers 1,800 hotel rooms in 6 hotels 570,000 sqm with MICE space of 110,390 sqm; For Largest column free ballroom in Asia 34
Slide 41: Singapore Positioning Itself As A Leisure Centre…
Singapore Positioning Itself As A Leisure Centre… Esplanade - Theatres on the Bay Singapore Flyer Waterfront performing arts theatre, Tallest giant observation wheel in opened in 2005 the world Platform for world class musicals, Expected to draw 2.5m visitors in plays, and art performances i
Slide 42: …And A Services Hub
…And A Services Hub Medical Tourism Educational Hub The World Health Organization ranked Singapore as Singapore positions itself as an educational hub, with having the best healthcare system in Asia in 2000 recognized institutions at various levels such as INSEAD, and the University of Chicago G
Slide 43: Potential Supply Of Hotel Rooms Until 2012
Potential Supply Of Hotel Rooms Until 2012 Current and Expected Hotel Room Supply in Singapore No. of Hotel Rooms 50,000 45,000 2008 to 2012 CAGR = 6.5% 700 370 41,468 40,000 3,868 4.8% 35,000 4,252 1,489 30,000 30,789 25,000 2007 2008 2009 2010 2011 2012 Total 2012 Source: CBRE Report dated 11 Febr
Slide 44: Information on CDL Hospitality Trusts Hotels
Information on CDL Hospitality Trusts Hotels 44
Slide 45: Orchard Hotel, Singapore
Orchard Hotel, Singapore Significant Highlights 653 rooms Located in Orchard Road Newly renovated rooms Large pillar-less ballrooms with extensive conference facilities Caters to both corporate and leisure segments Accolades Asia Tatler’s Regional Best Restaurants 2008 – Hua Ting Restaur
Slide 46: Grand Copthorne Waterfront, Singapore
Grand Copthorne Waterfront, Singapore Significant Highlights 574 rooms Located between CBD and Orchard Road Close to proposed BFC and IR One of the largest conference facilities in Singapore Well positioned for the MICE market Accolades 2008 Singapore Business Events Award - Finalist for
Slide 47: M Hotel, Singapore
M Hotel, Singapore Significant Highlights 413 rooms Located in the heart of the financial district Close to proposed BFC and IR Completed refurbishment in 2003 Strong following of business travellers Accolades Wotif.com Top Customer’s Preferred Choice Award 2007 / 2008 Best Mid-Range B
Slide 48: Copthorne King's Hotel, Singapore
Copthorne King’s Hotel, Singapore Significant Highlights Boutique style hotel with 310 rooms Located within close proximity to CBD, convention / exhibition belt and Orchard Road Completed refurbishment in 2004 Strong corporate segment focus and specialty events hotel host Accolades Singapo
Slide 49: Orchard Hotel Shopping Arcade, Singapore
Orchard Hotel Shopping Arcade, Singapore Net Lettable Area 4,939 sq m CBRE valuation S$40.3M Valuation psm (psf) S$8,159 psm (S$758 psf) % of total valuation ~2% Leasehold Interest 75 years from Listing Date 49
Slide 50: Rendezvous Hotel Auckland, New Zealand
Rendezvous Hotel Auckland, New Zealand Significant Highlights 455 rooms – largest hotel in Auckland by rooms Freehold Located in the central business district and next to a major conference centre 50
Slide 51: Novotel Clarke Quay, Singapore
Novotel Clarke Quay, Singapore Significant Highlights Prime superior hotel with 401 rooms Leasehold Located in immediate proximity to Clarke Quay, Robertson Quay and Boat Quay: Singapore’s premier entertainment hub Recently concluded a S$18.8 million comprehensive refurbishment program to gu
Slide 52: Thank You
Thank You CDL HOSPITALITY TRUSTS
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