82
Ascott Residence Trust Macquarie Non Deal Roadshow 2011 (US) 7-9 December 2011 Serviced Residence: An Attractive Asset Class with Balance of Stability and Growth
Ascott Residence Trust
Macquarie Non Deal Roadshow 2011 (US) 7-9 December 2011
Serviced Residence: An Attractive Asset Class with Balance of Stability and Growth
1. Ascott Reit Overview 2. Portfolio Information 3. Capital and Risk Management 4. Prospects 5. Key Updates 6. Summary 7. Appendices
Agenda
2
Disclaimer
3
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 Ascott Residence Trust Management Limited, the Manager of Ascott Reit (the “Manager”) or any of its affiliates. An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. The past performance of Ascott Reit is not necessarily indicative of its future performance.
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, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, 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. Prospective investors and Unitholders are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of the Manager on future events.
Unitholders of Ascott Reit (the “Unitholders”) have no right to request the Manager to redeem their units in Ascott Reit while the units in Ascott Reit are listed. It is intended that Unitholders may only deal in their Units through trading on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.
1. Ascott Reit Overview
4
5
Japan 21 properties
Australia 2 properties
Indonesia 2 properties
Singapore 3 properties
Philippines 3 properties
China 3 properties
Vietnam
5 properties
United Kingdom 4 properties
France 17 properties
Belgium 2 properties
Germany 2 properties
Spain 1 property
Ascott Reit’s Footprint Balanced and Diversified Portfolio
Portfolio diversified across property and economic cycles
*S$2.76 billion portfolio value 6,591 apartment units in
65 properties 23 cities in 12 countries
*Includes acquisition of Citadines Shinjuku Tokyo
6
Ascott Reit Business Overview Ascott Residence Trust (Ascott Reit) invests primarily in real
estate and real estate related assets, which are income-producing and used predominantly as serviced residences or rental housing properties.
Sponsor Ascott Reit’s Sponsor, The Ascott Limited (Ascott) is the world’s largest serviced apartment owner-operator with over 29,000 apartment units in key cities of Asia Pacific, Europe and the Gulf region
Portfolio Owns 6,591 apartments in 23 cities across 12 countries in Asia Pacific and Europe
Operates under Ascott, Citadines and Somerset Brands
Portfolio Value *S$2.76billion
Market Cap S$1.08billion as at 30 Nov 2011
Major Unitholder CapitaLand’s ownership is 48.8% as at 30 Nov 2011
*Includes acquisition of Citadines Shinjuku Tokyo
7
Attractive Yield vs Other Asset Class Trading 25% below NAV
Attractive yield compared to other asset class
8.1%
2.5%
1.7%
0.3%
0.1%
(2)
(3)
(4)
(5)
(6)
(1)
Notes: (1) Based on Net Asset Value as at 30 Sep 2011(2)Based on Ascott Reit’s closing unit price of S$0.955 on 30 Nov 2011 and the forecast DPU of 7.74 cents for FY2011 as disclosed in the Offer Information Statement dated 13 September 2010 (3)Based on interest paid on Central Provident Fund (CPF) ordinary account from 1 July to 30 September 2011. Source: CPF website(4)Source: Singapore Government Securities website as at 30 Nov 2011 (5)Source: Monetary Authority of Singapore website as at 30 Oct 2011(6)Source: Monetary Authority of Singapore website as at 30 Oct 2011
8
Distribution to unit holders
Delivered stable distributions since listing in 2006 Forecast FY2011 DPU is 7.74 cents1
1 As disclosed in the Offer Information Statement dated 13 September 2010
(Annualised)
1
9
3Q 2011 vs 3Q 2010 Performance
3Q 2010
46.5
21.1 Gross Profit (S$m)
Revenue (S$m)
3Q 2011
73.0
40.0
Change
+57%
+90%
Revenue Per Available Unit (S$/day) – serviced residences
146 132 +11%
Distribution Per Unit (S cents)
Unitholders’ Distribution (S$m)
1.85 2.23 +21%
12.0 25.3 +112%
10
3Q 2011 vs Forecast Performance
Forecast(1)
74.1
39.5 Gross Profit (S$m)
Revenue (S$m)
3Q 2011
73.0
40.0
Revenue Per Available Unit (S$/day) – serviced residences
146 138
Change
-1%
+1%
+6%
Unitholders’ Distribution (S$m)
Distribution Per Unit (S cents)
23.0
2.03
25.3
2.23
+10%
+10%
(1)The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement.
2. Portfolio Information
11
12
Serviced Residences An Attractive Asset Class
Apartments for Rent Serviced Residences Hotels
Lease Structure & Terms
Long-term leases Hybrid between hotels and apartments/condominiums Variable lease terms
Short-term accommodation
Seasonality
Dependent on general property sector conditions
Some seasonality of hospitality industry, though longer lease terms provide certain level of rental support Correlated to GDP growth and FDI
inflows
Seasonal nature of hotel industry Highly correlated with the tourism
industry
Range of Services
No service provided
Limited services provided Role and involvement of property
manager less intensive compared to hotels
Full range of hospitality services Including food & beverage (F&B) Role and involvement of property
manager most intensive
Cost Structure
Low investment cost
- Unfurnished - Less common
facilities Low operating
costs - Minimal staffing
Low investment cost - High building efficiency - No F&B outlets Low operating costs - Less intensive staffing
requirements as only limited services are provided
- Lower marketing and maintenance costs as average length of stay is longer
High investment cost - Land (premium location) - Lower building efficiency (more
common facilities) High operating costs - More intensive staffing requirements
due to complete range of services - High maintenance due to significant
wear and tear
13
Ascott Reit’s Sources of Income
Properties on Management Contract
Properties on Master Lease
Properties on Management Contract
with Minimum Income Guarantee
Description
• Ascott manages Ascott Reit’s properties for a fee
• Master Lessees (subsidiaries of Ascott) pay fixed rental per annum to Ascott Reit*
• Properties on management contracts that enjoy minimum guaranteed income (from subsidiaries of Ascott)
Tenure
• Generally on a 5-year or 10-year basis
• Average weighted remaining tenure of about 7 years
• Average weighted remaining tenure of about 7 years
Location
• 37 properties -14 in Asia - 2 in Australia - 21 in Japan
• 20 properties -17 in France - 2 in Germany -1 in The Philippines
• 8 properties -4 in UK -2 in Belgium -1 in Spain -1 in Vietnam
* The rental payments under the Master Leases are generally fixed for a period of time. However, the Master Leases provide for annual rental revisions pegged to indices representing construction costs, inflation or commercial rental prices according to market practice. Accordingly, the rental revisions may be adjusted
upwards or downwards depending on the above factors.
YTD 30 September 2011 Gross Profit
14
Both master leases and serviced residence management contracts with minimum guaranteed income have average
weighted remaining tenures of about 7 years
Balance of Income Stability and Growth
Master Leases
26%
Management Contracts
with Minimum Guaranteed
Income19%
Management Contracts
55%
Total = S$117.5 million
1 Information for properties on serviced residence management contracts only. Information for properties on master leases is not included
YTD 30 September 2011
15
Average apartment rental income by length of stay is more than 4.5 months. For Pan Asian portfolio about 90% of apartment rental income is derived from Corporate Travel. For
Europe portfolio, about 50% of apartment rental income is derived form Corporate Travel and 50% from Leisure Business
> 12 months
24%
1 week or less21%
< 1 month25%
6 to 12 months
8%
1 to 6 months
22%
Apartment Rental Income By Length of Stay1
1 Information based on apartment rental income for corporate accounts for properties on serviced residence management contracts only. Information for properties on master leases is not included. 2 Citadines SA Group is the master lessee of the France and Germany properties. Citadines SA and its subsidiaries are wholly owned subsidiaries of The Ascott Limited. 3 Ascott Reit and/or the Property Holding Companies may license Apartment Units to CapitaLand, its subsidiaries and associates (but not including Ascott, its subsidiaries and associates) (the “CapitaLand Group”) for use as staff accommodation.
Apartment Rental Income By Industry1
YTD 30 September 2011
Diverse Tenant Mix and Quality Clientele
16
Earnings diversified, not reliant on any single industry
Corporate Client Industry % of Total Apartment
Rental Income
1 Citadines SA Group2 Real estate/Lodging 5.4%
2 Embassy of an OECD country Govt & NGOs 3.8%
3 Accenture Financial Institutions 2.3%
4 Australia & New Zealand Banking Group Limited Financial Institutions 1.8%
5 Toyota Group Consumers 1.6%
6 Standard Chartered Bank Financial Institutions 1.0%
7 Amdocs IT 0.9%
8 Samsung Group Consumers 0.7%
9 Shell Group Energy & Utilities 0.6%
10 CapitaLand3 Real estate/Lodging 0.6%
TOTAL 18.7%
Top 10 Corporate Clients by Apartment Rental Income for FY2010
Others4%
Healthcare2%Real estate/
Lodging14%
Energy &Utilities
9%
IT6%
Financial Institutions
14%
Industrial17%
Govt & NGOs13%
Consumers12%
Media & Telecomms
3%
Manufacturing6%
Ascott Reit’s Share of Asset Values As at 30 September 2011
17
Total= S$2.70billion
Singapore 23.0%
United Kingdom
16.1%
Vietnam 7.9%
China 6.6%Philippines 5.3%
France 21.2%
Japan 10.3%
Germany 2.1%
Indonesia 2.4%
Australia 1.9%
Belgium 1.6% Spain
1.6%
Portfolio diversified across property and economic cycles
Geographical Diversification
Quality Portfolio, Stable Income
18
1 Quality Assets in Key International Gateway Cities Across Asia Pacific and Europe
2
51 out of 65 properties are Freehold assets
3
Master Lease and Minimum Guaranteed Income
Geographically Diversified Portfolio
Enhanced income visibility and stability
Diversification across property and economic cycles supports asset value and income stability
3. Capital & Risk Management
19
Gearing of 41.1%, well within the 60% gearing limit allowable under MAS property fund guidelines
0
500
1000
1500
2000
2500
20
Ascott Reit’s proportionate share of
asset value
S$2,702.3m
Ascott Reit Gearing Profile As at 30 September 2011
Debt S$1,111.7m (41.1%)
Equity S$1,590.6m (58.9%)
Healthy Balance Sheet
Debt Profile
21
Maturity Profile As at 30 September 2011
Ascott Reit’s Share of Bank Loans = S$1,111.7 m
Currency Profile As at 30 September 2011
S$308.5m28% S$284.5m
26%
S$123.2m11%
S$393.1m35%
S$2.4m<1%
0
100
200
300
400
2011 2012 2013 2014 2015 andafter
S$3.8m<1%
S$77.5m7%
S$113.5m10%
S$280.2m25%
S$525.2m48%
S$111.5m10%
0
100
200
300
400
500
600
SingaporeDollar
Euro JapaneseYen
BristishPound
US Dollar
AustralianDollar
S$’m S$’m
• S$1b Multicurrency MTN Programme established in September 2009
- (9 Sep 2009) Issued S$50m 3-year notes at 4.11% p.a with a proposed maturity date of 2012
- (22 Nov 2011) Issued S$100m 7-year notes at 4.3% p.a with a proposed maturity date of 2018
• US$2b Euro MTN Programme established in November 2011 - The establishment of this Programme is in line with Ascott Reit's
strategy of securing diversified funding - Allows Ascott Reit to target an enlarged pool of investors in different
currencies to match Ascott Reit’s funding requirements.
Medium Term Note (MTN) Programmes
22
Interest Rate Profile As at 30 September 2011
23
Interest Cover Ratio of 4.0x
Floating with interest rate caps, S$231.7m (21%)
Fixed
S$515.3m (46%)
Effective Borrowing Rate of 3.2%
Floating S$364.7m (33%)
Interest Rate Profile
Capital Management
24
• Continue to use bank loans and MTN as primary sources of financing/ re-financing
• Increase average debt maturity 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 65%
Balance between optimising funding cost and maintaining a stable debt profile
Capital and Risk Management Strategy
25
Credit Metrics as at 30 Sep 2011
Moody’s Issued Default Rating
Interest Cover
Effecting Borrowing Rate
Baa3
4.0X
3.2%
Weighted Avg Debt to Maturity 2.8 years
Gearing 41.1%
Foreign Exchange Movements Ascott Reit’s Share of Gross Profit YTD 30 September 2011
26
Total = S$112.2 million
Currency
Percentage of Ascott Reit’s
Share of Gross Profit
YTD 30 Sep 2011
Foreign exchange rate movements
from Dec ’10 to Sep’ 11
SGD 20 -
EUR 31 1.5%
USD 15 -5.7%
GBP 14 -2.2%
PHP 8 -3.5%
RMB 4 -3.5%
JPY 6 -1.7%
AUD 2 3.0%
Total 100 -1.2%
Australia S$2.3m
Japan S$6.6m
China S$4.9m
Philippines S$9.5m
United Kingdom S$16.2m
Indonesia S$3.2m
Belgium S$2.0m
Vietnam S$13.9m
FranceS$26.6m
Spain S$2.8m
Germany S$2.8m
Singapore S$21.4m
Foreign Exchange Profile
• Cashflows
– Manage volatility of foreign currency cash flow from overseas assets • Revenue and operating expenses are mainly in respective local
currency • Vietnam – Majority of revenue* and operating expenses are in
local currency • Indonesia - Majority of revenue in US$ while operating
expenses are in local currency – Monitor foreign exchange risks associated with remitting the
various currencies to Singapore for distribution and, to the extent feasible, hedge these currency risks
• Capital Values – Adopt natural hedge strategy, as far as possible
• Borrowing in the same currency as underlying asset
Foreign Exchange Management
27
* Room rates in Vietnam are contracted in USD and majority of revenue is received in VND at the prevailing exchange rate
4. Prospects
29
Global economic conditions are expected to remain uncertain for the rest of 2011. The Group’s income stability remains sustainable supported by the income from our Europe properties which are on master leases and serviced residence contracts with minimum guaranteed income. Our income stability also stems from our multiple geographical locations which allow us to achieve income diversification across different economic conditions and cycles. The Group expects to achieve better operating results for 2011 compared to 2010. The Group is evaluating the redevelopment options for Somerset Grand Cairnhill Singapore. We will make an announcement to the SGX-ST of any material development on this matter as and when appropriate in accordance with the Listing Rules of the SGX-ST. At this stage, there is no certainty of any proposed redevelopment materialising. We will continue to implement asset enhancement initiatives to increase the returns of our portfolio and focus on yield accretive acquisitions in countries where we operate and explore opportunities in new markets. For FY 2011, the Manager expects to deliver the forecast distribution of 7.74 cents as disclosed in the Offer Information Statement dated 13 September 2010.
Prospects
5. Key Updates
30
Acquisition of Citadines Shinjuku Tokyo, Japan (Announced on 25 November 2011)
• Acquisition of 60% interest in Citadines Shinjuku Tokyo from Mitsubishi Estate Co., Ltd and Citadines Shinjuku Ippan Shadan Hojin for a total sum of ¥2.7b (or approximately S$43.4m). The balance 40% interest is held by The Ascott Limited.
• Acquisition is yield accretive to Ascott Reit at an implied property yield of 4.5%.
• The acquisition will be wholly funded by borrowings.
• Ascott Reit’s gearing will be at 42%, which is still within optimal gearing level of 45%, with an interest cover ratio (ICR) of more than 3 times.
32
Acquisition of Citadines Shinjuku Tokyo, Japan
Citadines Shinjuku Tokyo
33
Property Highlights-Citadines Shinjuku Tokyo
Location Map Photo of Bedroom
Property Description
A contemporary residence which enjoys a prime location close to the Marunouchi and Toei Shinjuku subway lines, combines the convenience of a hotel with the freedom and privacy of an apartment. The residence’s range of optional services are customized to suit the business and leisure needs, allowing a choice of short or long term stays.
In Operation Since March 2009 No of units 160 units Independent Valuation commissioned by Trustee
¥5.8b (or S$93.6m) by Savills Japan Co., Ltd
Tenure Freehold
Ascott Reit’s Share of Asset Values
34
(YTD Sep 2011) Pre-acquisition = S$2.70 billion
Singapore 23.0%
United Kingdom
16.1%
Vietnam 7.9%
China 6.6%Philippines 5.3%
France 21.2%
Japan 10.3%
Germany 2.1%
Indonesia 2.4%
Australia 1.9%
Belgium 1.6% Spain
1.6%
Post-acquisition = S$2.76 billion
Singapore 22.6%
United Kingdom
15.8%
Vietnam 7.8%
China 6.4%Philippines 5.2%
France 20.8%
Japan 12.1%
Germany 2.0%
Indonesia 2.3%
Australia 1.8%
Belgium 1.6% Spain
1.6%
Geographical Diversification
6. Summary
Income Stability Master Leases and management contracts with minimum guaranteed income contributed 45% of the Group’s gross profit for YTD 30 September 2011
Geographical diversification across property and economic cycles
Exposure to Serviced Residence asset class
Demand for serviced residences underpinned by FDI inflows and GDP growth
Operated under established international brands: Ascott, Citadines and Somerset
Balanced exposure to Asia Pacific and Europe
Significant presence in the Pan Asia region (57%) and added diversification to established Europe (43%) markets
Assets mainly in key gateway cities such as Beijing, Shanghai, Singapore, Tokyo, London, Paris, Berlin, Brussels, Barcelona, Munich, Hanoi, Ho Chi Minh City, Jakarta, Manila, Melbourne and Perth
Management Track Record
Demonstrated organic growth of portfolio
Portfolio management for optimal returns – yield accretive acquisitions and strategic divestments
Ability to acquire assets from The Ascott Limited (TAL) and third party owners
Proactive but conservative capital management
Strong Sponsor Ascott Reit granted right of first refusal over TAL’s Pan Asia and Europe assets
Significant potential pipeline of quality assets from TAL
36
Summary
Thank You
7. Appendix
38
Results Highlights (Details)
39
40
3Q 2011 vs 3Q 2010 Performance 3Q 2010
46.5
21.1 Gross Profit (S$m)
Revenue (S$m)
3Q 2011
73.0
40.0
Change
+57%
+90%
• Increase in revenue and gross profit mainly due to the additional revenue of S$31.7 million and additional gross profit of S$20.0 million from the 28 serviced residences acquired on 1 October 2010 (the “Acquisitions”), partially offset by the decrease in revenue of S$4.7 million and gross profit of S$1.2 million from the divestment of Ascott Beijing and Country Woods Jakarta (the “Divestments”). • Gross profit margin increased from 45% in 3Q 2010 to 55% in 3Q 2011 due to higher margins for serviced residences on master leases, and better margins achieved by serviced residences on management contracts as a result of higher rental rates achieved and better cost management. • On a same store basis, revenue decreased by S$0.5 million to S$41.3 million mainly due to the weaker performance from the Group’s serviced residences in Vietnam and Japan, partially offset by higher contribution from the serviced residences in Singapore. Gross profit, on a same store basis, increased by S$0.1 million to S$20.0 million.
• Increase in RevPAU mainly driven by the strong performance of the Singapore and United Kingdom serviced residences.
Revenue Per Available Unit (S$/day) – serviced residences 146 132 +11%
41
3Q 2011 vs 3Q 2010 Performance
3Q 2010 3Q 2011
Distribution Per Unit (S cents) 1.85 2.23
Change
+21%
Unitholders’ Distribution (S$m) 12.0 25.3 +112%
• Distribution per Unit was higher mainly due to the yield accretive transaction (comprising the
Acquisitions and divestment of Ascott Beijing on 1 October 2010) and better performance from the Singapore serviced residences.
42
3Q 2011 vs Forecast Performance Forecast(1)
74.1
39.5 Gross Profit (S$m)
Revenue (S$m)
3Q 2011
73.0
40.0
Revenue Per Available Unit (S$/day) – serviced residences
146 138
Change
-1%
+1%
+6%
• Revenue was lower by S$1.1 million as compared to the forecast as the forecast included a S$1.1 million contribution from Country Woods Jakarta, which was divested on 29 October 2010. On a same store basis (excluding the revenue from Country Woods Jakarta), revenue for 3Q 2011 was at the same level as the forecast. • Gross profit was higher by S$0.5 million or 1% as compared to the forecast. On a same store basis (excluding the S$0.3 million contribution from Country Woods Jakarta in the forecast), gross profit was higher by S$0.8 million or 2%.
Notes: (1) The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement.
43
3Q 2011 vs Forecast Performance
Forecast(1) 3Q 2011
Unitholders’ Distribution (S$m)
Distribution Per Unit (S cents)
23.0
2.03
25.3
2.23
Change
+10%
+10%
Notes: (1) The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement.
• Distribution per Unit was higher than the forecast due to higher gross profit mainly from Singapore
serviced residences and lower finance costs. Finance costs were S$2.2 million or 19% lower than the forecast mainly due to lower interest rates achieved as compared to the forecast.
Portfolio Performance
44
Master Leases
45
Overview of Master Leases
46
• 20 out of Ascott Reit’s 65 serviced residences are on master leases • These serviced residences contributed 25% of the Group’s gross
profit for 3Q 2011
• These master leases have an average weighted remaining tenure of about 7 years
Master Leases
47
Revenue Gross Profit 3Q 2011
S$’M 3Q 2010
S$’M Forecast1
S$’M 3Q 2011
S$’M 3Q 2010
S$’M Forecast1
S$’M
France2 (17 properties) 9.3 - 9.5 8.7 - 8.9
Germany2 (2 properties) 0.9 - 0.9 0.9 - 0.9
Philippines (Somerset Salcedo
Property Makati) 0.2 0.2 0.2 0.2 0.2 0.2
Master Leases Total 10.4 0.2 10.6 9.8 0.2 10.0
Citadines Louvre Paris
Citadines Les Halles
Paris
Citadines Place
d’Italie Paris
Citadines Croisette Cannes
Citadines Arnulfpark
Munich
Citadines Kurfursten-
damm Berlin
Somerset Salcedo Property Makati
In the forecast, the indices used to determine the income from certain master leases were assumed to increase by 2%. Revenue and gross profit for 3Q 2011
were lower as the actual indices were lower than the forecast. 1 The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement. 2 France and Germany portfolios were acquired on 1 October 2010. Information for 3Q 2010 is not applicable.
48
Management Contracts with Minimum Guaranteed Income
Overview of Management Contracts with Minimum Guaranteed Income
49
• 8 out of Ascott Reit’s 65 serviced residences are on management contracts that provide minimum guaranteed income
• These serviced residences contributed 21% of the Group’s gross profit for 3Q 2011
• These management contracts have an average weighted remaining tenure of about 7 years
11.1
5.7 6.2
12.1
0
5
10
15
Revenue Gross Profit
Forecast 3Q 2011
Continued market improvement enabled the refurbished apartments to achieve higher occupancy and rental
rates than that assumed in the forecast.
United Kingdom1
S$m
210 190
50
RevPAU
S$
+11%
+9%
Citadines Barbican London
Citadines Prestige Holborn- Covent Garden London
Citadines Prestige South
Kensington London
Citadines Trafalgar Square London
1 United Kingdom portfolio was acquired on 1 October 2010. Information for 3Q 2010 is not applicable. 2 The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement.
+9%
2
Decrease in revenue mainly due to the postponement of renovation for Citadines Sainte-Catherine Brussels. The forecast assumed that the property has renovated units for lease at higher rental
rates in 3Q 2011. Gross profit was at the same level as the forecast mainly due to better cost management.
2.8
0.5
2.6
0.5
0
1
2
3
Revenue Gross Profit
Forecast 3Q 2011
Belgium1
S$m
79 83
51
-7%
RevPAU
S$
Citadines Sainte-Catherine Brussels
Citadines Toison d’Or Brussels
1 Belgium portfolio was acquired on 1 October 2010. Information for 3Q 2010 is not applicable. 2 The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement.
2
-5%
Revenue for 3Q 2011 included a top-up by the property manager of S$0.1 million as assumed in the forecast.
Spain1
52
Citadines Ramblas Barcelona
1 Spain portfolio was acquired on 1 October 2010. Information for 3Q 2010 is not applicable. 2 The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement.
2.1
1.2
0
1
2
3
4
Revenue Gross Profit
Forecast 3Q 2011
+5%
148 141
2
2.0
1.1
RevPAU
S$
+9%
+5%
S$m
As compared to the forecast, revenue and gross profit decreased due to weaker performance and a lower USD exchange rate than
that assumed in the forecast. Revenue for 3Q 2011 included a yield protection amount of S$0.3 million as assumed in the forecast.
0.6
1.00.7
1.10.9
0.6
0.0
0.5
1.0
1.5
Revenue Gross Profit
3Q 2010 Forecast 3Q 2011
Vietnam
S$m
70
101
53
RevPAU2
S$
91
-31% Somerset West
Lake Hanoi
1 The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement. 2 RevPAU for 3Q 2010 has been adjusted to be consistent with current period’s presentation.
-18%
-14%
-23%
1
-10%
Management Contracts
54
Revenue and RevPAU increased mainly due to the strengthening of AUD against SGD, higher demand in Perth as a result of increased
business from the oil and gas, and mining industries and the upcoming Commonwealth Heads of Government Meeting.
0.5
2.0
1.1
2.4
0
1
2
3
Revenue Gross Profit
3Q 2010 Forecast 3Q 2011
S$m
157 153 Somerset St Georges
Terrace Perth
Somerset Gordon Heights
Melbourne
Australia
55
+25%
+20%
RevPAU3 S$
1 The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement. 2 Accrual of costs no longer required. 3 RevPAU for 3Q 2010 has been adjusted to be consistent with current period’s presentation.
+20%
+120% +120% 2.0
0.5
191 +22%
1 Excluding one-off reversal2
0.7
Lower performance in Shanghai due to strong performance achieved during the Shanghai World Expo in 3Q 2010. Lower performance in Tianjin due to the on-going renovation. Better
performance in Beijing due to higher demand from project groups.
China
3.1
8.9
1.7
0
5
10
Revenue Gross Profit
3Q 2010 Forecast 3Q 2011
S$m 125 109
56
4.7
Somerset Grand
Fortune Garden
Property Beijing
Somerset Olympic Tower
Property Tianjin
Somerset Xu Hui
Shanghai
1 The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement. 2 Excludes Ascott Beijing divested on 1 October 2010. 3 RevPAU for 3Q 2010 has been adjusted to be consistent with current period’s presentation.
RevPAU3 S$
5.2
1.9
122
Same store2
5.1
1.8
121 -10%
-11%
1
-47%
-45%
-13%
-11%
On a same store basis, revenue decreased as compared to 3Q 2010 due to weakening of USD against SGD. In USD terms,
revenue was at the same level as 3Q 2010.
5.2
1.4 1.4
5.03.9
1.2
0.0
2.0
4.0
6.0
Revenue Gross Profit
3Q 2010 Forecast 3Q 2011
Indonesia
Ascott Jakarta
Somerset Grand Citra
Jakarta
57
S$m
76 99
1 The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement.
2 Excludes Country Woods Jakarta divested on 29 October 2010. 3 RevPAU for 3Q 2010 has been adjusted to be consistent with current period’s presentation.
RevPAU3
S$
74
+34%
105 4.3
Same store2
-22%
3.9
1.5
1.1
97
1
-25%
-14%
+30%
-14%
Revenue decreased due to weaker performance of the serviced residences, partially offset by stronger performance from the rental housing properties.
Revenue from the rental housing properties was higher than 3Q 2010 on higher occupancy of 94% at lower rental rates.
Japan
4.3
2.3
4.5
2.72.2
4.0
0
2
4
Revenue Gross Profit
3Q 2010 Forecast 3Q 2011
1 Revenue and Gross Profit includes contribution from serviced residence and rental housing properties. 2 The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement. 3 RevPAU for serviced residence properties only. RevPAU for 3Q 2010 has been adjusted to be consistent with current period’s presentation.
RevPAU3 S$
116
148
58
Somerset Roppongi
Tokyo
Somerset Azabu East Tokyo
18 rental housing properties in
Tokyo S$m
Serviced residence contribution
2.1 1.6
0.8 0.5
1 1
153
-19%
-22%
-24%
2.2
0.9
-4%
-7% -11%
2
Revenue and RevPAU increased mainly due to higher demand for serviced residences from the oil and gas and pharmaceutical industries.
Philippines
Somerset Millennium
Makati
Ascott Makati
2.8
7.1 7.7
3.1 3.1
7.7
0
4
8
Revenue Gross Profit
3Q 2010 Forecast 3Q 2011
161 153
59
S$m
1 The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement. 2 RevPAU for 3Q 2010 has been adjusted to be consistent with current period’s presentation.
RevPAU2 S$
165
-2%
+11%
+5%
1
+8%
On a same store basis, RevPAU was 11% higher as compared to 3Q 2010. Strong market demand has led to higher rental rates achieved.
Singapore
9.3
5.06.1
11.613.1
7.2
0
5
10
15
Revenue Gross Profit
3Q 2010 Forecast 3Q 2011
249 243
60
S$m
1 The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement. 2 Excludes Citadines Mount Sophia acquired on 1 October 2010. 3 RevPAU for 3Q 2010 has been adjusted to be consistent with current period’s presentation.
RevPAU3
S$
215
+18%
+16%
Same store2
10.2
5.6
271
Somerset Grand Cairnhill
Somerset Liang Court
Property
Citadines Mount Sophia Property
9.3
5.1
240
+13%
1
+41%
+44%
+2%
On a same store basis, revenue and gross profit were lower as compared to 3Q 2010. This was due to the weakening of USD against SGD and lower serviced residence revenue arising from a reduction in corporate accommodation budget as
well as new supply of serviced residences in the market. In USD terms, revenue, RevPAU and gross profit
decreased by 3%, 2%, and 5% respectively as compared to 3Q 2010.
5.2
8.510.5
5.8 5.2
9.1
0
6
12
Revenue Gross Profit
3Q 2010 Forecast 3Q 2011
Vietnam
S$m
95 116
61
1 The forecast is extracted from the Offer Information Statement dated 13 September 2010 and is based on the assumptions set out in the Offer Information Statement. 2 Excludes Somerset Hoa Binh Hanoi acquired on 1 October 2010. 3 RevPAU for 3Q 2010 has been adjusted to be consistent with current period’s presentation.
RevPAU3
S$
112
Same store2
7.3
4.3
101
Somerset Grand Hanoi
Somerset Chancellor
Court Ho Chi Minh City
Somerset Ho Chi Minh
City
Somerset Hoa Binh
Hanoi
119
-13%
-15%
8.4
4.8
-10%
1
+7%
-18%
Awards
62
2011 Corporate Awards
63
Best Investment Fund Manager in 2011
(South Eastern Asia)
Most Transparent Company Award in 2011
(Runner-up, Hotels & Restaurants)
Best Annual Report Award in 2010
(Bronze Category)
Brand Introduction
64
• 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
Ascott The Residence
65
• 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 connectivity and customised
services
Citadines Apart’hotel
66
• 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
help to quickly settle into the city
Somerset Serviced Residence
67
68
Ascott Reit Portfolio
Japan 21 properties
Australia 2 properties
Indonesia 2 properties
Singapore 3 properties
Philippines 3 properties
China 3 properties
Vietnam 5 properties
United Kingdom 4 properties
France 17 properties
Belgium 2 properties
Germany 2 properties
Spain 1 property
69
Overview of Acquisitions and Divestments Asia Pacific Portfolio
Europe Portfolio
Out of 13 acquisitions, 9 are from third parties 4 are from sponsor
* * *Includes acquisition of Citadines Shinjuku Tokyo
70
Asia Pacific Portfolio
Ascott Reit Asia Pacific Portfolio Australia China
Property Name Somerset Gordon Heights
Melbourne
Somerset St Georges
Terrace Perth
Somerset Grand Fortune
Garden Property Beijing
Somerset Xu Hui
Shanghai
Somerset Olympic Tower
Property Tianjin
Location CBD CBD CBD, embassies, International
school
Prime residential district
Prime residential district
No of units 43 84 81 167 185
Net Lettable Area (sq m)
1,691 4,000 11,279 17,805 25,043
Appraised Value* (million)
14.5 34.3 43.5 49.5 63.6
Title Freehold Freehold Leasehold , expiring on 27 August 2068
Leasehold , expiring on 22
June 2066
Leasehold, expiring on 19
November 2062
* As at 30 June 2011
71
Indonesia Japan
Property Name Ascott Jakarta
Somerset Grand Citra
Jakarta
Somerset Azabu East
Tokyo
Somerset Roppongi
Tokyo
18 Rental Housing Properties in
Tokyo
Location Business and shopping
district
Business and shopping
district
CBD CBD Business and shopping area, residential and
educational centre, embassies
No of units 198 203 79 64 509
Net Lettable Area (sq m)
21,371 29,666 4,019 3,542 13,424
Appraised Value* ($ million)
38.3 35.8 59.1 45.2 153.2
Title Leasehold, expiring on 31 March
2024
Leasehold, expiring on 14 August
2024
Freehold Freehold Freehold
* As at 30 June 2011
Ascott Reit Asia Pacific Portfolio
72
Philippines
Property Name Ascott Makati
Somerset Millennium Makati
Somerset Salcedo Property Makati
Location Business and shopping district
Business and shopping district
Business and shopping district
No of units 306 137 (of which 68 have been leased from
unrelated third parties)
71
Net Lettable Area (sq m) 34,282 4,448 5,901
Appraised Value* ($ million) 100.5 14.3 12.0
Title Lease tenure expiring on 6 January 2044, renewable for another 25 years upon mutual agreement of both
parties
Freehold Freehold
* As at 30 June 2011
Ascott Reit Asia Pacific Portfolio
73
Singapore
Property Name Somerset Liang Court Property
Singapore
Somerset Grand Cairnhill
Singapore
Citadines Mount Sophia
Property Singapore
Location Near CBD Shopping district Arts, culture, learning and entertainment hub
No of units 197 146 154
Net Lettable Area (sq m) 17,070 20,048 7,015
Appraised Value* ($ million)
206.4 271.9 132.4
Title Leasehold, expiring on 1 May 2077
Leasehold, expiring on 10 June 2082
Leasehold, expiring on 19 February 2105
* As at 30 June 2011
Ascott Reit Asia Pacific Portfolio
74
Vietnam
Property Name Somerset Hoa Binh
Hanoi
Somerset West Lake
Hanoi
Somerset Grand Hanoi
Somerset Chancellor Court Ho Chi Minh City
Somerset Ho Chi Minh
City
Location Near high technology
development zone
Scenic West Lake area
CBD Prime commercial, diplomatic and major shopping
district
CBD
No of units 206 90 185 172 165
Net Lettable Area (sq m)
14,330 5,349 28,328 20,853 19,154
Appraised Value* ($ million)
51.8 25.9 91.3 56.8 46.9
Title Leasehold, expiring on
24 April 2042
Leasehold, expiring on
30 September 2041
Leasehold, expiring on 8 February
2038
Leasehold, expiring on
4 October 2041
Leasehold, expiring on
25 December 2039
* As at 30 June 2011
Ascott Reit Asia Pacific Portfolio
75
76
Europe Portfolio
Ascott Reit Europe Portfolio Belgium France (in Paris)
Property Name Citadines Sainte-
Catherine Brussels
Citadines Toison d’Or
Brussels
Citadines Austerlitz
Paris
Citadines Prestige
Les Halles Paris
Citadines Louvre Paris
Location Near historic city centre
Near historic city centre
In traditional French district
Tourist district Near Musée du Louvre and Palais
Royal
No of units 169 154 50 189 51
Net Floor Area (sq m)
7,536 8,662 1,827 9,207 3,373
Appraised Value* ($ million)
27.7 24.2 11.6 89.0 37.6
Title Freehold Freehold Lessee under a finance lease arrangement
Freehold Freehold
* As at 30 June 2011
77
France (in Paris)
Property Name Citadines Montmartre
Paris
Citadines Montparnasse
Paris
Citadines Place d’Italie
Paris
Citadines Porte de Versailles
Paris
Citadines République
Paris
Location Tourist district Shopping district
Residential district
Residential district
Residential district
No of units 111 67 169 80 76
Net Floor Area (sq m)
4,079 2,123 7,090 3,518 3,217
Appraised Value* ($ million)
35.1 19.4 51.0 23.8 20.9
Title Freehold Lessee under a finance lease arrangement
Freehold Lessee under a finance lease arrangement
Lessee under a finance lease arrangement
* As at 30 June 2011
Ascott Reit Europe Portfolio
78
France (in Paris)
Property Name Citadines Tour Eiffel
Paris
Citadines Trocadéro
Paris
Citadines Croisette Cannes
Citadines City Centre Grenoble
Citadines City Centre
Lille
Location Tourist district Residential district
Near Croisette and Palais des
Festivals
Administrative, residential and
retail area
Business and shopping district
No of units 104 97 58 106 101
Net Floor Area (sq m)
5,380 4,511 2,139 4,657 3,863
Appraised Value* ($ million)
68.8 59.8 8.2 13.3 11.6
Title Freehold Freehold Lessee under a finance lease arrangement
Freehold Freehold
* As at 30 June 2011
France (outside Paris)
Ascott Reit Europe Portfolio
79
Property Name Citadines Presqu’île
Lyon
Citadines Castellane Marseille
Citadines Prado Chanot
Marseille
Citadines Antigone
Montpellier
Location Near business and tourist district
Residential and shopping district
Residential and business district
Near shopping district
No of units 116 97 77 122
Net Floor Area (sq m) 5,973 3,974 3,310 5,575
Appraised Value* ($ million)
25.8 14.0 12.4 18.8
Title Freehold Lessee under a finance lease arrangement
Freehold Lessee under a finance lease arrangement
* As at 30 June 2011
France (outside Paris)
Ascott Reit Europe Portfolio
80
Property Name Citadines KurfÜrstendamm
Berlin
Citadines Arnulfpark
Munich
Citadines Ramblas
Barcelona
Location Near upscale retail neighbourhood
Near conference and exhibition centre
Residential and cultural district
No of units 118 146 131
Net Floor Area (sq m) 5,480 6,502 6,440
Appraised Value* ($ million)
20.3 38.5 54.5
Title Freehold Freehold Freehold
* As at 30 June 2011
Germany Spain
Ascott Reit Europe Portfolio
81
Property Name Citadines Barbican London
Citadines Prestige Holborn-Covent Garden London
Citadines Prestige South Kensington
London
Citadines Trafalgar Square
London
Location Financial and business district
Near business district and prime shopping areas
Residential and cultural district
Near Nelson’s Column, House of
Parliament, Big Ben and Westminster
Abbey
No of units 129 192 92 187
Net Floor Area (sq m) 6,158 8,403 5,430 8,977
Appraised Value* ($ million)
77.4 142.2 80.9 136.6
Title Freehold Freehold Freehold Freehold
* As at 30 June 2011
United Kingdom
Ascott Reit Europe Portfolio
82
