CDL Hospitality Trusts · SGX:J85
CDL Hospitality Trusts — FY2006 Earnings Presentation
40 slides from CDL Hospitality Trusts's earnings presentation, Jan 31, 2007
Slide 1: Announcement of Results for FY 2006
Announcement of Results for FY 2006 31 January 2007
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
Slide 3: Table of Contents
Table of Contents • Highlights • Introduction to CDL Hospitality Trusts • Overview of Hospitality Industry • Results for FY 2006 • Breakdown of Performance • Moving Forward 3
Slide 4: Highlights
CDL HOSPITALITY TRUSTS Highlights
Slide 5: Highlights (I)
Highlights (I) 1 CDL-HT was publicly launched on 19 July 2006 as the first REIT in Asia ex Japan with hotel assets 2 CDL-HT completed its first acquisition on 19 December 2006 3 Record number of more than 9 million visitor arrivals into Singapore Strong 4th quarter performance with CDL-HT hotels in
Slide 6: Highlights (II)
Highlights (II) 5 Overall robust performance for the period from IPO to 31 December 2006: - Average occupancy rate of 86% - Average daily rate of $166 - RevPAR of $143 up 10.9% from forecast 6 For comparison, for period 1 Jan to 31 Dec, hotels year on year growth significant - Average daily rates up
Slide 7: Details Of Distribution
Details Of Distribution Distribution for the period 19 Jul ‘06 to 31 Dec 2006 2.89 ¢ per unit February 2007 Closure of books: Mon Tue Wed Thu Fri Sat Sun 5 pm on 8 February 2007 1 2 3 4 5 6 7 8 9 10 11 Dividend distribution: 12 13 14 15 16 17 18 19 20 21 22 23 24 25 28 February 2007 26 27 28 7
Slide 8: Introduction To CDL Hospitality Trusts
Introduction To CDL Hospitality Trusts 8
Slide 9: Significant Highlights For 2006
Significant Highlights For 2006 • IPO on 19 July 2006 • First Hotel REIT in Asia ex Japan • Completed first acquisition on 19 December 2006 • 455 room Rendezvous Hotel for NZ$113 m • Prime freehold hotel located in Central Business District in New Zealand’s gateway city of Auckland 9
Slide 10: Strong Post IPO Performance In Unit Price
Strong Post IPO Performance In Unit Price Price Movement of CDL HT Unit Price (IPO to 29 Dec '06) 30 Jan ’07 last done $1.80 price = $1.76 Unit price increase $1.70 $1.60 IPO to 29 Dec 07 = 101.2% IPO to 30 Jan 07 = 112.0% $1.50 Unit Price (S$) $1.40 $1.30 IPO price = $1.20 $0.83 $1.10 $1.00 29 Dec
Slide 11: Overview of Current Portfolio: Singapore
Overview of Current Portfolio: Singapore Grand Copthorne Copthorne King’s Orchard Hotel Orchard Hotel M Hotel Total Waterfront Hotel Hotel Shopping Arcade Number of Rooms 653 550 413 310 N/A 1,926 Car Park Lots 454 287 237 77 N/A 1,055 # of F&B Outlets 5 4 4 4 N/A 17 13 rooms 34 rooms 9 rooms 5 room
Slide 12: Overview of Current Portfolio: Singapore and New Zealand
Overview of Current Portfolio: Singapore and New Zealand New Zealand Singapore Assets Total Asset Number of Rooms 1,926 455 2,381 NZ$113 m Valuation S$944.1 m(1) S$1,064.3 m(1) (S$120.2 m)(2) NZ$248,352 Valuation per room S$490,187(1) S$447,012(2) (S$264,246)(2) Title Leasehold Freehold N/A (1) Excl
Slide 13: Orchard Hotel
Orchard Hotel Significant Highlights ♦ 653 rooms ♦ Located in Orchard Road ♦ Newly renovated rooms ♦ Significant meeting facilities - large columnless ballroom for large events ♦ Appeals to both corporate and leisure segment Accolades ♦ Best Accommodation Experience 2005 ♦ Executive Chef of the Year
Slide 14: Grand Copthorne Waterfront
Grand Copthorne Waterfront Significant Highlights ♦ 550 rooms – 11 new rooms added on 1 January 2007 to room inventory from conversion of certain areas into hotel rooms ♦ Located between CBD and Orchard Road ♦ Close to proposed BFC and IR ♦ One of the largest conference facilities in Singapore ♦ Wel
Slide 15: M Hotel
M Hotel 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 15
Slide 16: Copthorne King’s Hotel
Copthorne King’s Hotel Significant Highlights ♦ 310 rooms ♦ Located between CBD and Orchard Road ♦ Completed refurbishment in 2004 ♦ Strong corporate segment focus 16
Slide 17: Orchard Hotel Shopping Arcade
Orchard Hotel Shopping Arcade Net Lettable Area 4,886.2 sq m Occupancy 92.5% Average rental psf S$5.95 Valuation S$35.1 m Valuation psm (psf) S$7,184 psm (S$667 psf) Lease Term 75 years from Listing Date 17
Slide 18: Rendezvous Hotel, Auckland
Rendezvous Hotel, Auckland Significant Highlights ♦ 455 rooms – largest hotel in Auckland by rooms ♦ Freehold ♦ Located in the central business district and next to a major conference centre 18
Slide 19: Overview of Hospitality Industry
Overview of Hospitality Industry 19
Slide 20: Strong Growth In Visitor Arrivals In Singapore
Strong Growth In Visitor Arrivals In Singapore Visitor Arrivals in Singapore 10,000 CAGR Growth Rates Thousands 8,942 8,845 9,000 8,328 2004 – 2005 = 7.4% 8,113 8,000 7,527 2005 – 2006 = 9.0% 7,000 2004 – 2006 = 8.4% 6,000 Visitor Arrivals (Full year) 5,000 Visitor Arrivals (Jan - Nov) 4,000 3,000 2
Slide 21: Significant Growth From Many Of The Top Visitor Arrival Countries
Significant Growth From Many Of The Top 10 Visitor Arrival Countries '05 To '06 Year On Year (YTD to Breakdown of Visitor Arrivals (YTD Nov) Growth In Top 10 Visitor Nov '06) Indonesia, Arrival Countries Others, 1,714,337 2,263,853 19% 26% Indonesia 5.5% China 22.8% Australia 11.9% 11% China, 954,66
Slide 22: Minimal Hotel Room Supply Expected In 2007 and 2008
Minimal Hotel Room Supply Expected In 2007 and 2008 Waterfall Chart - Current and Expected Hotel Room Supply ’06 to ’08 CAGR = 3.4% 33,000 32,445 32,000 1,361 31,000 712 30,000 30,372 29,000 • Airport Hotel • Sentosa Cove • St. Regis 28,000 • Hotel at One North • The Amara Sentosa • The Knolls • Hot
Slide 23: Results for FY 2006
CDL HOSPITALITY TRUSTS Results for FY 2006 23
Slide 24: Strong Performance Over Same Period Pro-Forma YTD ’05
Strong Performance Over Same Period Pro-Forma YTD ’05 Gross Revenue and NPI - Same Distributable Income - Same Period Period Year on Year Comparision Year on Year Comparision Gross Rev = 36.3% 30,000 NPI = 37.2% 28,189 25,889 25,000 25,000 53.7% 20,304 20,688 20,000 20,000 18,866 15,000 13,211 15,00
Slide 25: Strong Performance Over Forecast By CDL-HT
Strong Performance Over Forecast By CDL-HT Gross Revenue and NPI Gross Revenue and NPI Performance For Q4 '06 Performance (IPO to 31 Dec '06) Gross Rev = 24.4% Gross Rev = 14.8% 18,000 NPI = 24.5% 16,929 NPI = 14.8% 15,559 30,000 28,189 16,000 25,889 13,609 24,555 14,000 25,000 12,501 22,555 12,000
Slide 26: Income Available For Distribution: Significant Increase Over Forecasts
Income Available For Distribution: Significant Increase Over Forecasts Income Available For Distribution For Period From IPO to 31 Dec '06 +21.4% 7.00 6.35 6.00 5.23 5.00 4.00 2.89 3.00 2.38 2.00 1.00 0.00 Forecast to 31 Dec '06 Actual to 31 Dec '06 Income available for distribution Annualized distr
Slide 27: Performance Driven By Strong Q4: Forecast vs. Actual
Performance Driven By Strong Q4: Forecast vs. Actual ARR: Forecast vs. Actual Q4 '06 RevPAR: Forecast vs. Actual Q4 +7.1% '06 $170 $166 $165 $160 $155 $150 +16.8% $146 $155 $150 $145 $145 $140 Forecast Q4 Actual Q4 $135 Occupancy: Forecast vs. Actual Q4 '06 $130 $125 +600 bp (7.3%) $125 90% 88% 88%
Slide 28: Overall H2 Performance Strong: Forecast vs. Actual
Overall H2 Performance Strong: Forecast vs. Actual ARR: Forecast vs. Actual H2 '06 RevPAR: Forecast vs. Actual H2 +7.1% '06 $170 $166 $165 $160 $155 $145 $143 $155 +10.9% $150 $145 $140 Forecast H2 Actual H2 $135 Occupancy: Forecast vs. Actual H2 '06 $130 $129 +300 bp (3.6%) 87% 86% 86% 85% $125 84%
Slide 29: Indicative Full Year On Year Comparison
Indicative Full Year On Year Comparison ARR: Full Year on Year Comparison RevPAR: Full Year on Year +22.6% Comparison $180 $163 $160 $133 $140 +30.1% $134 $140 $120 $130 $100 '05 Full Year '06 Full Year $120 $110 $103 Occupancy: Full Year on Year Comparison $100 +500 bp (6.4%) 84% 83% $90 82% 80% 78
Slide 30: Breakdown of Performance
CDL HOSPITALITY TRUSTS Breakdown of Performance 30
Slide 31: Breakdown Of Gross Rental Revenues By Property
Breakdown Of Gross Rental Revenues By Property Grand Orchard Copthorne Hotel Orchard Waterfront Copthorne Shopping Rendez- Hotel Hotel M Hotel King’s Arcade vous Hotel Gross rental revenue (Actual for $9.6 m $8.1 m $5.4 m $3.3 m $1.5 m $.3 m YTD 31 Dec ‘06) Gross rental revenue (Pro-forma $7.3 m $5.
Slide 32: CDL-HT Revenue Streams More Diversified
CDL-HT Revenue Streams More Diversified Breakdown between Fixed and Variable Breakdown of Gross Revenue By Rent Property (S$,000) 28,189 Rendezvous 30,000 Orchard 24,555 Hotel Thousands Hotel Shopping Auckland, Arcade, 260 25,000 1,529 Copthorne 5% 1% 20,000 16,182 57.4% King's Hotel, Orchard 12,548
Slide 33: CDL-HT Assets Have Been Re-Valued Upwards
CDL-HT Assets Have Been Re-Valued Upwards Valuation of H-REIT Properties 1,099.4 m 1,200 Increase In Valuation Millions 966.5 m 1,000 Orchard 16.6% 35.0% 385 Grand Copthorne Waterfront 14.1% 800 34.2% 330 M 18.3% 600 24.3% 267 17.3% Copthorne King's 24.2% 234 400 Orchard Hotel Shopping Arcade 1.8% 1
Slide 34: Continuing Shift To Higher Yielding Corporate Segment
Continuing Shift To Higher Yielding Corporate Segment(1) Evolution of Market Mix 94.2 100 Hotels Rooms Revenue (S$ m) 90 72.9 80 60.5 70 60 67.1 71.2% 43.4 50 ` 50.4 69.1% 40 40.4 66.7% 30 29.0 66.8% 20 22.5 30.9% 27.1 28.8% 10 14.4 33.2% 20.1 33.3% 0 2003 2004 2005 2006 Leisure/Others Corporate (1)
Slide 35: Moving Forward
CDL HOSPITALITY TRUSTS Moving Forward 35
Slide 36: CDL-HT Target Markets
CDL-HT Target Markets Specific Countries of Interest ▪ Singapore ▪ New Zealand ▪ Australia ▪ Vietnam ▪ Hong Kong ▪ Thailand ▪ China ▪ India ▪ Japan ▪ Maldives ▪ Malaysia ▪ UAE Japan Middle UAE China East Thailand Hong India Vietnam Kong Malaysia Maldives Singapore Australia New Zealand 36
Slide 37: Objectives For 2007
Objectives For 2007 Optimize operating performance of the hotels 1 through yield management 2 Optimize capital structure 3 Continue to make yield accretive acquisitions 4 Carry out asset enhancement activities 37
Slide 38: Structure of CDL Hospitality Trusts
Structure of CDL Hospitality Trusts 38
Slide 39: CDL Hospitality Trusts Structure
CDL Hospitality Trusts Structure Sponsor Investors ≈39.2% Holdings of H-REIT and HBT as ≈60.8% Stapled Securities 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 Man
Slide 40: Thank You
CDL HOSPITALITY TRUSTS Thank You
CDL Hospitality Trusts — FY2006 Earnings Presentation on 6ix