27
6 November 2017 2Q FY2017/18 Financial Results Presentation
6 November 2017
2Q FY2017/18 Financial Results Presentation
2
Disclaimer
This presentation may contain forward-looking statements that involve risks and uncertainties. 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 factors include (without limitation) general industry and economic conditions, interest rate trends
and foreign exchange rate trends, cost of capital and capital availability, competition from similar
developments, shifts in expected levels of average daily room rates and occupancy, changes in operating
expenses, including employee wages, benefits and training, property expenses and governmental and
public policy changes and the continued availability of financing in the amounts and the terms necessary
to support future business. Investors are cautioned not to place undue reliance on these forward looking
statements, which are based on the Managers’ current view of future events.
The Australian Dollar, Chinese Renminbi, Japanese Yen and Singapore Dollar are defined herein as
“AUD”, “RMB”, JPY” and “SGD” or “S$”, respectively.
Any discrepancies in the figures included herein between the individual amounts and total thereof are
due to rounding.
This presentation shall be read in conjunction with A-HTRUST’s Unaudited Financial Results for the Second Quarter ended 30 September 2017 (“2Q FY2017/18”) a copy of which is available on www.sgx.com or www.a-htrust.com.
3
Contents
1 Key Highlights
2 Financial Review
3 Portfolio Performance
4 Capital Management
5 Looking Ahead
1
Key Highlights
5
2Q FY2017/18 Financial Highlights
Notes: 1. Save for DPS, percentage changes are based on figures rounded to nearest thousands 2. After retaining distributable income for working capital purposes
5.2% y-o-y Gross Revenue
Net Property Income (“NPI”)
Income available for distribution
0.8% y-o-y
5.3% y-o-y
2Q FY2017/181 1H FY2017/181
Distribution per Stapled Security
(“DPS”)2 2.9% y-o-y
S$58.4m
S$24.5m
S$17.2m
S$46.8m
S$33.0m
2.73 cents
3.7% y-o-y
0.3% y-o-y
4.8% y-o-y
2.2% y-o-y
S$111.9m
1.42 cents
Adjusted Income available for distribution2
3.7% y-o-y S$30.8m 2.8% y-o-y S$16.1m
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Stable
2Q FY2017/18 Portfolio Highlights
3.4pp y-o-y
Australia
China
Japan
0.4pp y-o-y
AOR1 ADR1
Singapore
87.6%
91.1%
Applies to Oakwood Apartments only
Mainly driven by higher room rates
Marginal improvement in rental income contribution from Park Hotel Clarke Quay
AUD 169
RMB 427
4.9% y-o-y
Note: 1. AOR: Average Occupancy Rate; ADR: Average Daily Rate; RevPAR: Revenue per Available Room
4.2% y-o-y
4.6% y-o-y
1.6% y-o-y
RevPAR1
AUD 148
RMB 389
JPY 9,974
7
November 2017
S M T W T F S
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30
December 2017
S M T W T F S
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31
Distribution Details
Notice of Books Closure Date 6 November 2017
10 November 2017, 9.00 am
14 November 2017, 5.00 pm
12 December 2017
Ex-Distribution Date
Books Closure Date
Date of Distribution
Distribution for the period 1 April 2017 to 30
September 2017: 2.73 Singapore cents per
stapled security
2 Financial Review
9
Results Summary – 2Q FY2017/18
Notes: 1. Net of retention of distributable income for working capital purposes. Retention of income for 2Q
FY2017/18 was based on 6.4% of distributable income, while retention of income for 2Q FY2016/17 was based on 5.0% of distributable income.
2. Save for DPS, percentage changes are based on figures rounded to nearest thousands
2nd Quarter
S$’ million FY2017/18 FY2016/17 Change2
Gross Revenue
58.4 55.6 5.2%
Net Property Income
24.5 24.3 0.8%
NPI Margin (%) 42.0 43.8 (1.8)pp
Income available for distribution
17.2 16.3 5.3%
Adjusted Income available for distribution1
16.1 15.5 3.7%
DPS (cents)1 1.42 1.38 2.9%
• Overall improvement in underlying performance from the portfolio while appreciation of AUD against SGD lifted revenue in SGD term
• Compared to same quarter last year, net finance cost was lower by S$0.7 million
• Partially offset by higher amount of retention of income; 6.4% compared to 5.0% same quarter last year
• Assuming retention of income was 5.0%, DPS for 2Q FY2017/18 would have been 1.44 cents, an increase of 4.9% y-o-y
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Results Summary – 1H FY2017/18
Notes: 1. Net of retention of distributable income for working capital purposes. Retention of income for 1H
FY2017/18 was based on 6.7% of distributable income, while retention of income for 1H FY2016/17 was based on 4.9% of distributable income.
2. Save for DPS, percentage changes are based on figures rounded to nearest thousands
1st Half
S$’ million FY2017/18 FY2016/17 Change2
Gross Revenue
111.9 107.9 3.7%
Net Property Income
46.8 46.9 (0.3)%
NPI Margin (%) 41.8 43.5 (1.7)pp
Income available for distribution
33.0 31.5 4.8%
Adjusted Income available for distribution1
30.8 30.0 2.8%
DPS (cents)1 2.73 2.67 2.2%
• Overall underlying portfolio performance improved by S$1.7 million, augmented by stronger AUD while partially offset by weaker JPY
• NPI was affected by lower contribution from the Australia portfolio, partially mitigated by stronger performance from China hotels
• Net finance cost was S$1.5 million lower than corresponding period last year
• Partially offset by higher amount of retention of income; 6.7% compared to 4.9% same quarter last year
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FY17/18 FY15/16 FY16/17
Distribution History
14.2
15.5 16.2
14.6 14.5 15.5
18.5
15.4 14.7
16.1
1.28 1.38
1.45
1.30 1.29 1.38
1.64
1.37 1.31
1.42
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
5.0
10.0
15.0
20.0
25.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
DP
S (S
inga
po
re c
en
ts)
Dis
trib
uta
ble
In
com
e (
S$ m
illio
n)
Distributable Income DPS
3 Portfolio Performance
13
12.6
2.3
6.3
3.2
12.9
2.4
6.0
3.2
0.0
5.0
10.0
15.0
Australia China Japan Singapore
S$ m
illio
n
37.9
5.6
8.9
3.2
41.0
5.8
8.4
3.2
0.0
10.0
20.0
30.0
40.0
50.0
Australia China Japan Singapore
S$ m
illio
n
Performance by Country
Stronger AUD boost NPI contribution from Australia portfolio while weaker JPY resulted in a lower contribution from Japan portfolio
2.2%
7.9%
4.9%
1.6%
8.4%
3.7%
6.0%
1.5%
2Q FY16/17 2Q FY17/18 2Q FY16/17 2Q FY17/18
Gross Revenue Net Property Income
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Australia 52%
China 9%
Japan 26%
Singapore 13%
Australia 53%
China 10%
Japan 24%
Singapore 13%
NPI Breakdown by Country and Contract Type
2Q FY16/17 Net Property Income 2Q FY17/18 Net Property Income
Master Lease: 39%
Management Contract: 61%
Master Lease: 38%
Management Contract: 62%
2Q FY16/17 Net Property
Income: S$24.3m
2Q FY17/18 Net Property
Income: S$24.5m
Well diversified portfolio with good mix of master lease arrangements and management contracts
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FY16/17 FY15/16 FY17/18 FY16/17 FY15/16 FY17/18
5.0
10.0
15.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
AU
D m
illio
n
0.000
0.400
0.800
1.200
5.0
10.0
15.0
20.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
AU
D/S
GD
S$ m
illio
n
Stronger AUD boosted NPI in SGD term 2nd Quarter
AUD FY17/18 FY16/17 Change
AOR (%) 87.6 84.2 3.4pp
ADR 169 169
RevPAR 148 142 4.2%
Net Property Income in AUD Net Property Income in S$
2. Based on average rate used for the respective quarter
-2.6%
12.3 12.0
AUD/SGD: 1.0242
AUD/SGD: 1.0742 (+5%)
+2.2%
12.6
12.9
Novotel Sydney Central leveraged on its aircrew business to drive performance, while CMNR1 improved as it was undergoing room refurbishment last year
NPI lower mainly due to higher land tax related to Melbourne hotel, and higher operating expenses Brisbane hotel
1. Courtyard by Marriott Sydney-North Ryde
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FY16/17 FY15/16 FY17/18 FY16/17 FY15/16 FY17/18
0.0
5.0
10.0
15.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
RM
B m
illio
n
0.00
0.05
0.10
0.15
0.20
0.25
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
RM
B/S
GD
S$ m
illio
n
China portfolio continued to improve 2nd Quarter
RMB FY17/18 FY16/17 Change
AOR (%) 91.1 91.5 0.4pp
ADR 427 407 4.9%
RevPAR 389 372 4.6%
Net Property Income in RMB Net Property Income in S$
1. Based on average rate used for the respective quarter
Benefitted from healthy public demand to maintain high occupancy rate and drive higher room rates
Ibis Beijing Sanyuan continued to see strong demand from members of China Lodging Group’s loyalty programme
Both hotels also benefitted from cost savings
+7.1%
11.1 11.9
RMB/SGD: 0.2031 RMB/SGD:
0.2041 (+1%)
+7.9%
2.3 2.4
17
FY16/17 FY15/16 FY17/18 FY16/17 FY15/16 FY17/18
100.0
200.0
300.0
400.0
500.0
600.0
700.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
JPY
mill
ion
0.000
0.005
0.010
0.015
2.0
4.0
6.0
8.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
JPY
/SG
D
S$ m
illio
n
Improvement for Japan portfolio negated by weaker JPY 2nd Quarter
JPY FY17/18 FY16/17 Change
RevPAR1 9,974 9,819 1.6%
Net Property Income in JPY Net Property Income in S$
2. Based on average rate used for the respective quarter
Posted marginal improvement as the portfolio continued to benefit from strong inbound arrivals.
However, the better performance was negated by weaker JPY against SGD.
1. Applies to Oakwood Apartments Ariake Tokyo only
+2.3%
475.4
486.4
JPY/SGD: 0.0132
JPY/SGD: 0.0122 (-7%)
-4.9%
6.3
6.0
18
5.2 5.2
2.0
-3.1
0.1
-1.3 -1.6
1.2
10.4
1.8
12.3
1.2
7.4
1.7
4.4
-1.5
2.0
4.1
-10.0
0.0
10.0
20.0
Pullman SydneyHyde Park
Novotel SydneyCentral
Novotel SydneyParramatta
Courtyard byMarriott Sydney-
North Ryde
PullmanMelbourne Albert
Park
MercureMelbourne Albert
Park
Pullman BrisbaneKGS
Mercure BrisbaneKGS
Novotel BeijingSanyuan
y-o
y R
evP
AR
Gro
wth
(%
)
STR Comp Set A-HTRUST 's Portfolio
How our hotels performed
Note: 1. Source: STR (Smith Travel Research) Global Report. STR Global Report tracks a hotel’s occupancy, ADR and RevPAR performance against its selected comparable
competitors. STR Competitive Set (“STR Comp Set”) refers to the average performance of the hotel and its competitors.
Comparing of A-HTRUST’s hotels performance against peers during the quarter
Australia China
4 Capital Management
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Healthy balance sheet
As at 30 September 2017
As at 30 June 2017
Borrowings S$551.6m S$551.3m
Total Assets S$1,692.5m S$1,688.1m
A-HTRUST Gearing1 32.6% 32.7%
- A-HREIT Gearing 25.6% 25.8%
- A-HBT Gearing 36.3% 36.4%
Weighted average interest rate 2.9% 2.8%
Weighted average debt to maturity 2.3 years 2.5 years
Net asset value per stapled security S$0.89 S$0.89
Note: 1. Gearing is computed based on total debt over total assets
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Fixed 77.9%
Floating 22.1%
AUD 45.1%
SGD 12.5%
JPY 37.0%
RMB 5.4%
62
209
91
49
75
70
0
50
100
150
200
250
2017 2018 2019 2020 2021 2022
S$ m
illio
n
Bank Loans MTN
Debt Currency Profile
Balanced debt profile and prudent capital management
Debt Maturity Profile
Weighted average debt to maturity as at 30 September 2017: 2.3 years
Interest Rate Profile
Total Debt as at
30 Sep 2017
Total Debt as at
30 Sep 2017
5
Looking Ahead
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Australia
In general, performance of Sydney CBD hotels are expected to remain strong on the back of limited supply, while hotels in suburban Sydney may be affected by increased competition.
While the Melbourne hotel market is expected to remain positive in the near term, upcoming supply may moderate growth. More intense competition is also expected for meeting and conference facilities in Melbourne following the reopening of the International Convention Centre Sydney.
The oversupply situation continues to persist in the Brisbane market, although the upcoming Commonwealth Games to be held in April 2018 in Gold Coast may provide a lift to the hotel market in the city.
24
China
While international arrivals into Beijing remained on the downtrend, domestic travelling is expected to continue supporting the hotel market in Beijing.
As business and leisure demand continues to improve, the outlook of hotel market in Beijing is expected to remain healthy in the near term.
25
Japan
Inbound arrivals to Japan continued to be robust as the number of international visitors YTD September posted growth of 17.9% y-o-y1 .
Looking ahead, the hotel markets in Tokyo and Osaka are expected to continue trading at a healthy level in the near term.
However, performance improvement in these markets is expected to be moderate amidst increasingly competitive operating environment.
Note: 1. Source: Japan National Tourism Organisation
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Singapore
Inbound arrivals continued to grow, increasing by 4.0% y-o-y YTD August 20171 and Singapore remained a premium destination for MICE.
Singapore was awarded 2016’s top international association meetings city in Asia Pacific and Middle East by International Congress and Convention Association for the 15th consecutive years, and has secured large congresses in the coming years1, which will benefit the hotel market in Singapore.
While the performance of hotel market in the near term is likely to remain subdued due to the large inventory of rooms, the sector is expected to improve in the longer term as demand and supply begin to balance out.
Note: 1. Source: Singapore Tourism Board
Ascendas Hospitality Fund Management Pte. Ltd.
Ascendas Hospitality Trust Management Pte. Ltd.
Managers of A-HTRUST
1 Fusionopolis Place
#10-10 Galaxis
Singapore 138522
Tel: +65 6774 1033
Email: [email protected]
www.a-htrust.com
