Ascott Residence Trust A Leading Global Serviced Residence REIT. 3Q 2018 Financial Results

Transcription

1 Asctt Residence Trust A Leading Glbal Serviced Residence REIT 3Q 2018 Financial Results 1 1 Nvember 2018

2 Imprtant Ntice The value f units in Asctt Residence Trust ( Asctt REIT ) (the Units ) and the incme derived frm them may fall as well as rise. The Units are nt bligatins f, depsits in, r guaranteed by Asctt Residence Trust Management Limited, the Manager f Asctt REIT (the Manager ) r any f its affiliates. An investment in the Units is subject t investment risks, including the pssible lss f the principal amunt invested. The past perfrmance f Asctt REIT is nt necessarily indicative f its future perfrmance. This presentatin may cntain frward-lking statements that invlve risks and uncertainties. Actual future perfrmance, utcmes and results may differ materially frm thse expressed in frward-lking statements as a result f a number f risks, uncertainties and assumptins. Representative examples f these factrs include (withut limitatin) general industry and ecnmic cnditins, interest rate trends, cst f capital and capital availability, cmpetitin frm similar develpments, shifts in expected levels f prperty rental incme, changes in perating expenses, including emplyee wages, benefits and training, prperty expenses and gvernmental and public plicy changes and the cntinued availability f financing in the amunts and the terms necessary t supprt future business. Prspective investrs and Unithlders are cautined nt t place undue reliance n these frward-lking statements, which are based n the current view f the Manager n future events. Unithlders f Asctt REIT (the Unithlders ) have n right t request the Manager t redeem their units in Asctt REIT while the units in Asctt REIT are listed. It is intended that Unithlders may nly deal in their Units thrugh trading n Singapre Exchange Securities Trading Limited (the SGX-ST ). Listing f the Units n the SGX-ST des nt guarantee a liquid market fr the Units. 2

3 Cntent Key Highlights f 3Q 2018 and YTD Sep 2018 Prtfli Perfrmance Key Cuntry Updates Outlk Value Creatin Strategies Cnclusin Other Infrmatin 3

4 Key Highlights f 3Q 2018 and YTD Sep Asctt Orchard Singapre

5 Key Takeaways 3Q % Y--Y 9% Y--Y 8% Y--Y 8% Y--Y Revenue Grss Prfit RevPAU DPU 8 Key Markets 1 Cntributed 85% Ttal Grss Prfit Better Overall Perfrmance Achieved Balanced Incme Prprtin f 44% : 56% Stable Grwth Acquisitin f Prime Site t develp first cliving prperty lyf ne-nrth Singapre BBB (Outlk Stable) Ratings reaffirmed as Investment Grade by Fitch 5 Ntes: Figures abve as at 30 September Refers t Australia, China, France, Japan, Singapre, United Kingdm, United States and Vietnam

6 Financial Highlights (3Q 2018 vs 3Q 2017) Higher cntributins frm prperties acquired in FY 2017 and better perfrmance f existing prperties Revenue (S$m) 6% Y--Y Grss Prfit (S$m) 9% Y--Y Revenue Per Available Unit (S$) 8% 158 Y--Y 146 3Q Q Q Q Q Q 2017 Unithlders Distributin (S$m) Distributin Per Unit (S cents) % Y--Y % Y--Y Q Q Q Q

7 Financial Highlights (YTD Sep 2018 vs YTD Sep 2017) Revenue and Grss Prfit grew 4% and 7% y--y respectively bsted by enlarged prtfli frm acquisitins Revenue (S$m) 4% Y--Y Grss Prfit (S$m) 7% Y--Y Revenue Per Available Unit (S$) 5% Y--Y YTD Sep 2018 YTD Sep 2017 Unithlders Distributin (S$m) maintained (Excluding ne-ff, 11%) YTD Sep 2018 YTD Sep 2017 Distributin Per Unit (S cents) 1% Y--Y YTD Sep 2018 YTD Sep 2017 Adjusted Distributin Per Unit (S cents) 10% Y--Y YTD Sep 2018 YTD Sep 2017 YTD Sep 2018 YTD Sep 2017 YTD Sep 2018 YTD Sep Ntes: 1. Excluding ne-ff realised freign exchange gain f S$1.6m arising frm the receipt f divestment prceeds and repayment f freign currency bank lans with the divestment prceeds 2. Excluding ne-ff realised freign exchange gain f S$11.9m arising frm repayment f freign currency bank lans with prceeds frm Rights Issue and divestments

8 Grwth Incme Stable Incme Revenue and Grss Prfit by Cntract Type (3Q 2018 vs 3Q 2017) Higher cntributins acrss all cntract types Higher Revenue and Grss Prfit achieved n same stre basis Revenue (S$ mil) Grss Prfit (S$ mil) RevPAU (S$) 3Q Q 2017 % Change 3Q Q 2017 % Change 3Q Q 2017 % Change Master Leases n.a. n.a. n.a. MCMGI Management Cntracts Ttal Ttal Prperties 2 Master Leases: Revenue and Grss Prfit grew 11% y--y driven by acquisitin f Asctt Orchard Singapre in 4Q 2017 and better cntributin frm existing prperties MCMGI: Revenue and Grss Prfit grew 6% y--y underpinned by strng demand in United Kingdm and Belgium Management Cntracts: Higher cntributin frm better perfrmance and recnstitutin f prtfli (reclassificatin f Infini Garden frm Master Lease t Management Cntract categry; acquisitin f DubleTree by Hiltn Htel New Yrk Times Square Suth, partially ffset by divestment f Citadines Biyun Shanghai and Citadines Gaxin Xi an 8 Ntes: 1. MGMGI refers t Management Cntracts with Minimum Guaranteed Incme 2. Excludes lyf ne-nrth Singapre (under develpment)

9 Strng Perfrmance 3Q 2018 Grss Prfit cmprised by 44% Stable Incme and 56% Grwth Incme Grss Prfit frm Stable Incme (S$m) 9% Y--Y Q Q 2017 Stable Incme: Refers t Master Leases and Management Cntracts with Minimum Guaranteed Incme. Weighted average tenure f cntracts ~ 5 Years 9% increase Y--Y due t better perfrmance and acquisitin f Asctt Orchard Singapre in 4Q 2017 On same stre basis, better perating perfrmance in Singapre, Belgium and United Kingdm which saw higher RevPAU with strnger demand Grwth Incme: Y--Y 9% increase due t better perfrmance in mst cuntries and acquisitin f US prperty in mid 3Q 2017 On same stre basis, better perating perfrmance in Key Markets f Singapre, China, Japan and United States Grss Prfit frm Grwth Incme (S$m) 9% Y--Y Q Q Generated Unithlders Distributin f S$39.4m in 3Q 2018, t be paid ut tgether with 4Q 2018 distributin in 1Q 2019

10 Resilient Prtfli Stable length f stay Valuable freehld land lease prtfli Average ~3 mnths 1 1 week r less Less than 1 mnth 5% 9% 12% 16% Average Length f Stay 58% 28% 19% Tenure by Prperty Value 2 53% >50% Freehld Freehld 1 t 6 mnths 6 t 12 mnths Mre than 12 mnths 51 t 100 Years Up t 50 Years Inrganic and Organic Grwth Strategies Acquired site t develp maiden cliving prperty, lyf ne-nrth Singapre catering t millennial-minded executives Access t ~20 pipeline prperties frm Spnsr via ROFR AEI cmpletin f Asctt Makati Practive yield management and marketing strategies t capture rising glbal travelling trends in bth business and leisure segments 10 Ntes: As at 30 September 2018 (unless therwise indicated) 1. Average length f stay cmputed based n rental incme, excluding prperties n Master Leases 2. Prprtin based n last valuatin f Prperty Value as f 30 June 2018

11 Disciplined Capital and Risk Management Prudent Capital and Debt Management 82% Debt Fixed Ttal Debt S$1,886m Gearing: 36.4% (debt headrm 1 f ~S$810m) Interest Cver: 4.7 times Effective Brrwing Cst: 2.3% Debt Maturity 2020 and beynd: 88% Successfully refinanced JPY5 billin Medium Term Nte at a lwer rate f 0.97% 2 p.a. fr 7 years Risk Management Frex Hedging 47% Assets Hedged Ttal Assets S$5,273m 48% Distributable Incme derived in EUR, GBP, JPY and USD has been hedged Impact f freign exchange fluctuatin n YTD Sep 2018 Grss Prfit was psitive at 0.2% 11 Histrical impact f exchange rate mvement n grss prfit largely kept within the threshld f +/-1.4% fr the past 5 years Ntes: As at r fr the perid ending 30 September t reach aggregate leverage limit f 45% set by MAS 2. Prir t re-financing, the riginal cst f brrwing was 2.01% p.a.

12 Perfrmance Driven by Balanced and Diversified Asset Allcatin 60% Asia Pacific 40% Eurpe/Americas Asia Pacific 59.9% Eurpe 27.7% Singapre 18.8% Japan 13.1% China 10.3% Vietnam 5.9% Australia 5.5% Philippines 3.1% Indnesia 2.1% Malaysia 1.1% Ttal Assets S$5,273m France 10.6% UK 9.5% Germany 5.0% Spain 1.4% Belgium 1.2% The Americas 12.4% USA 12.4% 12 Ntes: As at 30 September 2018

13 Prtfli Perfrmance 13 Citadines St Gerges Terrace Perth

14 Balanced Prtfli f Stable Incme and Grwth Incme Stable Incme Grwth Incme Master Lease Management Cntracts with Minimum Incme Guarantee Management Cntracts Descriptin Fixed rental 1 received Enjy minimum guaranteed incme Variable amunt (n fixed r guaranteed rental) Lcatin and Number f Prperties 2 27 prperties mainly in Eurpe France(17) Australia(3) Germany(5) Singapre(2) 7 prperties in Eurpe United Kingdm(4) Belgium(2) Spain(1) 39 prperties mainly in Asia Pacific Australia(2) China(7) Indnesia(2) Japan(15) Malaysia(1) The Philippines(2) Singapre(2) United States(3) Vietnam(5) Percentage f Grss Prfit 2 29% 15% 56% 14 44% Stable 56% Grwth Ntes: 1. Rental received under master leases are generally fixed. Hwever, sme cntracts prvide fr annual rental revisins are pegged t indices; while sme cntracts include a variable rental abve fixed rental if certain cnditins are met 2. As at 30 September 2018 r based n 3Q 2018 Grss Prfit

15 Delivering Resilient Perfrmance 8 Key Markets cntribute 85% f Ttal Grss Prfit N cncentratin in any single market 44% Stable 56% Grwth Master Leases 29% Management Cntracts 56% France 13% Singapre 8% 29% Japan 12% United States 11% Germany 5% Australia 3% Grss Prfit S$64.2m 56% China 9% Vietnam 8% MCMGI 1 15% United Kingdm 11% Belgium 2% Spain 2% 15% Singapre 5% Australia 5% Philippines 3% Indnesia 2% Malaysia 1% 15 8 Key Markets: Australia (8%), China (9%), France (13%), Japan (12%), Singapre (13%), United Kingdm (11%), United States (11%) and Vietnam (8%) cntribute 85% f Ttal Grss Prfit Ntes: Based n 3Q 2018 Grss Prfit 1. Management Cntracts with Minimum Guaranteed Incme

16 Grwth Incme Stable Incme 8 Key Markets Generally Perfrmed Well Cntributed t 85% Ttal Grss Prfit Grss Prfit (LC mil) 3Q Q 2017 % Change 3Q 2018 RevPAU (LC) 3Q 2017 % Change Key Reasn fr Change Australia (AUD) n.a. n.a. n.a. Annual rent increment France (EUR) (2) n.a. n.a. n.a. Lwer rent upn lease renewal Singapre (SGD) United Kingdm (GBP) n.a. n.a. n.a Acquisitin f Asctt Orchard Singapre Higher crprate and leisure demand Australia (AUD) Higher leisure demand in Melburne China (RMB) (5) Divestment f 2 prperties Japan (JPY) ,496 11,145 3 Singapre (SGD) Reclassificatin f Infini Garden and better perfrmance frm existing prperties Higher market demand and higher average daily rates United States (USD) Full quarter cntributin frm DubleTree by Hiltn Htel New Yrk Times Square Suth Vietnam (VND) (4) 1,499 1,612 (7) Fewer prject grups in Hani 16 Ntes: All figures abve are stated in lcal currency 1. RevPAU fr Japan refers t serviced residences and excludes rental husing 2. Revenue and Grss Prfit figures fr VND are stated in billins. RevPAU figures are stated in thusands. In S$ terms, 3Q 2018 Revenue and Grss Prfit remain stable

17 Key Cuntry Updates 17 Asctt Makati

18 Australia Cntributed 8% t Grss Prfit 1 Master Lease Management Cntracts AUD Higher leisure demand in Melburne 6.9 3% 7% 6% Quest Prperties Citadines n Burke Melburne Perfrmance Highlight and Market Outlk Citadines St Gerges Terrace Perth Revenue and Grss Prfit increased due t higher leisure demand in Melburne Cntinued weakness f the AUD has put pressure n Revenue and Grss Prfit in SGD terms IMF frecasted GDP grwth f 3.0% and 3.1% fr 2018 and 2019 respectively As Australia transitins t a mre diversified service-based ecnmy, turism is becming an increasingly imprtant industry with cnsumer spending and visitr expenditure prjected t grw at a strng rate 3. Turist arrivals are expected t grw 7.2% y--y t 8.9 millin in Revenue ('mil) Grss Prfit ('mil) RevPAU 3Q Q 2017 relates t prperties under Management Cntracts nly RevPAU fr Sydney is expected t increase while that f Melburne remains stable. Perth s RevPAU is frecasted t remain sft due t increase supply 3 18 Nte: 1. Of which, 3 prperties under Master Lease cntracts and 2 prperties under Management Cntracts cntributed 3% and 5% respectively 2. Surce: IMF (2018) 3. Surce: Clliers Internatinal (Sep 2018) 4. Surce: Australia Federatin f Travel Agents (Mar 2018)

19 China Cntributed 9% t Grss Prfit Management Cntracts Higher RevPAU frm re-cnstitutin f prperties Smerset Xu Hui Shanghai Asctt Guangzhu Citadines Xinghai Suzhu Smerset Olympic Twer Prperty Tianjin Smerset Grand Central Dalian Perfrmance Highlight and Market Outlk Citadines Zhuanku Wuhan Smerset Heping Shenyang RMB % 1 16% % Y--Y Revenue decreased due t divestment f Citadines Biyun Shanghai and Citadines Gaxin Xi an n 5 January Hwever, RevPAU increased as the tw divested prperties had relatively lwer RevPAU against the ther prperties On a same stre basis, Revenue and RevPAU increased 3% due t mre prject grups Revenue ('mil) Grss Prfit ('mil) RevPAU 3Q Q 2017 (Same stre 1 ) 30.2 Including Citadines Biyun Shanghai and Citadines Gaxin Xi an Same stre Grss Prfit increased 16% due t reversal f ver-prvisin f prir year s expenses Frecasted 2018 GDP grwth remains rbust at 6.6%. Onging trade war, mderated by dmestic Chinese plicies led t expected 2019 grwth f 6.2% 2. Despite trade tariffs implemented, China s fficial manufacturing Purchasing Managers Index declined mderately frm 51.5 t 51.2, with stance f expansin unchanged 3 19 Ntes: 1. Excluding Citadines Biyun Shanghai and Citadines Gaxin Xi an which were divested n 5 January Surce: IMF (Oct 2018) 3. Surce: The Telegraph (2018)

20 Japan Cntributed 12% t Grss Prfit Management Cntracts Perfrmance stabilised Citadines Central Shinjuku Tky Citadines Shinjuku Tky Citadines Karasuma-Gj Kyt Smerset Azabu East Tky 11 rental husing prperties in Japan JPY 1, , , , % 1 2% 1 3% ,496 11, Perfrmance Highlight and Market Outlk Revenue and Grss Prfit increased with reclassificatin f cntributin frm Infini Garden frm Master Lease categry t Management Cntracts categry On a same stre basis, revenue increased due t higher crprate demand in Tky, partially ffset by cmpetitin arising frm new supply and recent typhns in Kyt Prjected GDP grwth f 1.1% and 0.9% in 2018 and 2019 by IMF, driven by higher expected investments fr 2020 Tky Olympics partially ffset by planned sales tax hike in Octber Revenue ('mil) Grss Prfit ('mil) RevPAU Althugh dmestic demand is likely t reduce due t ppulatin decline and ageing sciety, number f internatinal travellers t Japan remain strng, with the gvernment targeting t attract 40 millin turists by Q Q 2017 (Same stre 1 ) Including divested prperties and excluding Infini Garden Airbnb listings have fallen 16.9% and 17.2% y--y in Tky and Kyt respectively 4 20 Ntes: 1. Excluding the 18 rental husing prperties in Tky which were divested n 26 April 2017, and Infini Garden which was reclassified frm Master Lease categry 2. RevPAU relates t serviced residences and excludes rental husing prperties 3. Surce: Fcus Ecnmics (2018) 4. Surce: CNBC (2018), CBRE (2018), UBS (2018)

21 Singapre Cntributed 13% t Grss Prfit 1 Master Lease Management Cntracts Higher market demand Asctt Raffles Place Singapre Asctt Orchard Singapre Smerset Liang Curt Prperty Singapre Citadines Munt Sphia Prperty Singapre SGD Perfrmance Highlight and Market Outlk % 19% 19% Better perfrmance frm higher market demand Higher Revenue and RevPAU Y--Y als due t a lng stay prject grup in 3Q 2017 with lwer average daily rate visitr arrivals prjected t increase between 1% t 4% frm the previus year 2 While 3Q 2018 GDP f 2.6% slwed dwn cmpared t 1H 2018, sme ecnmists remained upbeat and raised full year frecast t ver 3% Revenue ('mil) Grss Prfit ('mil) RevPAU 0 Stricter Airbnb regulatins implemented dampened supply 4 3Q Q 2017 relates t prperties under Management Cntracts nly 21 Nte: 1. Of which, 2 prperties under Master Lease cntracts and 2 prperties under Management Cntracts cntributed 8% and 5% respectively 2. Surce: Singapre Turism Bard (2018) 3. Surce: The Straits Times (Oct 2018) 4. Surce: UBS Reprt (2018)

22 United Kingdm Cntributed 11% t Grss Prfit Management Cntracts with Minimum Guaranteed Incme Higher crprate and leisure demand Citadines Trafalgar Square Lndn Citadines Hlbrn-Cvent Garden Lndn Citadines Barbican Lndn Citadines Suth Kensingtn Lndn GBP % 5% 6% Perfrmance Highlight and Market Outlk Higher Revenue, Grss Prfit and RevPAU led by higher crprate and leisure demand Strnger GBP against SGD further added t Revenue and Grss Prfit grwth in SGD terms The frecasted turist visits fr 2018 is 40.9 millin, a 4.4% increase frm GDP grwth frecasted at 1.4% by IMF, with Brexit and glbal trade tensins psing as risks 0.0 Revenue ('mil) Grss Prfit ('mil) RevPAU 3Q Q Asctt REIT s UK prtfli structured as management cntracts with minimum guaranteed incme, limits dwnside risks 22 Nte 1. Surce: Visit Britain (Aug 2018)

23 United States Cntributed 11% t Grss Prfit Management Cntracts Enlarged US Prtfli and better same stre perfrmance Element New Yrk Times Square West DubleTree by Hiltn Htel New Yrk Times Square Suth Perfrmance Highlight and Market Outlk Sheratn Tribeca New Yrk Htel USD % 21% 1% Revenue ('mil) Grss Prfit ('mil) RevPAU 3Q Q Excluding straight-line recgnitin f perating lease expense Higher Revenue and Grss Prfit due t acquisitin f DubleTree by Hiltn Htel New Yrk Times Square Suth in August 2017 On a same stre basis, Revenue and RevPAU increased by USD0.5m (3%) and USD7 (3%) respectively due t higher revenue frm the refurbished apartments at Sheratn Tribeca New Yrk Htel. Grss Prfit increased by USD0.4m (10% 2 ) GDP grwth frecasted by IMF at 2.9% fr 2018, declining t 2.5% fr 2019 due t n-ging trade wars Anticipated 3.7% increase in internatinal visitr arrivals t 65.1 millin in Htel supply in New Yrk city is expected t increase by 5% each in 2018 and Ntes: 1. Surce: NYC & Cmpany (2018); HVS (2018) 2. On a same stre basis excluding straight-line recgnitin f perating lease expense 23

24 Vietnam Cntributed 8% t Grss Prfit Management Cntracts Perfrmance affected by fewer prject grups in Hani Smerset Grand Hani Smerset Ha Binh Hani Smerset West Lake Hani Smerset H Chi Minh City Smerset Chancellr Curt H Chi Minh City VND % -4% -7% ,499 1, Perfrmance Highlight and Market Outlk Lwer Revenue, Grss Prfit and RevPAU mainly due t fewer prject grups in Hani Appreciatin f VND resulted in Revenue and Grss Prfit in SGD terms t remain stable Y--Y Vietnam received 11.6 millin internatinal visitrs fr YTD September 2018, 23% mre than same perid in This is likely t be cntributed by the intrductin f electrnic visas in 40 cuntries and visa waiver fr citizens f 5 Western Eurpean cuntries Freign direct investment increased 9% t US$11 billin fr first eight mnths in Revenue ('bil) Grss Prfit ('bil) RevPAU ('000) 3Q Q Vietnam may benefit frm US-China trade war as Chinese manufactures mve prductin t ther Asian lcatins, including Vietnam 2 IMF frecasted 2018 GDP grwth at 6.6% and 6.5% fr Ntes: 1. Surce: Vietnam Natinal Administratin f Turism (2018) 2. Surce: CNBC (2018)

25 Outlk 25 Citadines Trafalgar Square Lndn

26 Shrt Term Outlk Strategies cushin effects f impending challenges Challenges Tapered Ecnmic Grwth Cntinued trade tensins Plicy uncertainties New Supply in Sme Markets Rising Interest Rate Envirnment Federal Reserves Interest Rate Hikes Cmpetitin Affecting Yield Enhancement Strategies Adpted Diversificatin Asset allcatin f 60% Asia Pacific : 40% Eurpe/Americas N single market cntributes >15% f Grss Prfit Capital & Risk Management ~82% f ttal debt n fixed rates <10% f debt expiring in 2019, lw re-financing risk Fitch Reaffirmed Ratings as BBB with Stable Outlk Maintained investment grade status; ability t brrw at attractive rates Acquisitin and Active Asset Management Acquired maiden develpment prject, lyf nenrth Singapre Asset Enhancement Initiatives 26

27 Value Creatin Strategies 27 Citadines City Centre Frankfurt

28 Value Creatin Strategies Five prnged strategies t deliver value t Unithlders 5 Spnsr 2 Active Asset Management 1 Grwth 4 Capital & Risk Management 3 Unlck Value 28

29 Acquisitin f Prime Site 1 lyf ne-nrth Singapre cliving prperty targeted at millennial-minded business travellers 324 studi and lft units 1 2 year cnstructin cmmencing 4Q 2018, with target year f pening in 2021 Ttal prject cst f ~S$117.0m (including S$62.4m site tender price) Develpment t be fully debt-funded High ptential asset secured upfrnt Lcated in prime develping district; Strengthening presence in Singapre New prduct catered t the rising millennial-minded market Yield n cst ~6% 29 Nte: 1. Subject t change

30 Active Asset Management (Cmpleted Asset Enhancement Initiatives) 2 Achieved ADR uplift f 10% t 20% upn cmpletin f Asset Enhancement Initiatives Smerset H Chi Minh City Smerset Millennium Makati Citadines Barbican Lndn Pre-refurbishment Pre-refurbishment Pre-refurbishment Pst-refurbishment Pst-refurbishment Pst-refurbishment Cmpleted in 2017 Cmpleted in 2017 Cmpleted in

31 Active Asset Management (Updates 1 n Asset Enhancement Initiatives) 2 Asctt Makati (Phase II) The Philippines Renvatin f 183 apartment units Cmpleted end July 2018 Smerset Grand Hani Vietnam Renvatin f apartment units, tilets and public area Phase I : cmpleted in December 2017 Phase II : target t cmplete by end 2018 Smerset Grand Citra Jakarta Indnesia Renvatin f 44 apartment units Target t cmplete in 1Q Nte: 1. Excluding prperties under Master Leases

32 Unlcking Value 3 Higher Yield Quality Assets Accretive Acquisitins Ttal N. f Divestments 1 10 Ttal Net Divestment Gains 1 S$304.4 millin Ttal Divestment Prceeds 1 Distributin f Divestment Gains Opprtunistic Divestments S$1.3 billin 32 Ntes: Figures abve are based n agreed sale price 1. Divestments frm 2010 t 2017

33 Disciplined Apprach Twards Capital & Risk Management Asctt REIT maintains Investment Grade status by recent Fitch Ratings Review 4 Gearing remained lw at 36.4% (35.7%) Effective brrwing cst maintained at 2.3% per annum (vs 2.3% p.a.) years Weighted average debt t maturity (3.9 years) BBB (stable utlk) Lng-term rating by Fitch NAV Per Unit S$1.22 (S$1.23) Ntes: Figures abve as at/fr the perid ending 30 September 2018, with 30 June 2018 cmparable in brackets 1. Excluding the distributable incme t Unithlders Interest cver 4.7X (vs 4.5X) ~82% Ttal debts n fixed rates t hedge against rising interest rates (vs ~84%) Adjusted NAV Per Unit 1 S$1.20 (vs S$1.20)

34 Diversified Funding Surces Well Spread-ut Debt Maturity ~ 90% Debt maturing in 2020 and beynd N re-financing risks fr lans due in 2018 envisaged 4 Debt Maturity Prfile As at 30 Sep 2018 By Debt Type As at 30 Sep % 102 S$ m 100 JPY5b MTN refinanced at a lwer rate f 0.97% 3 p.a. fr 7 years 7% % % % % % % % Ttal Debt S$1,886m 42% and after Bank lans 0.97% p.a. fixed rate JPY5b MTN 4.30% p.a. fixed rate S$100m MTN 1.65% p.a. fixed rate JPY7b MTN 4.21% p.a. fixed rate S$200m MTN % p.a. fixed rate JPY7.3b MTN 2.75% p.a. fixed rate EUR80m MTN 4.00% p.a. fixed rate S$120m MTN 2 Bank Lans Medium Term Ntes ( MTN ) 34 Ntes: 1. S$ prceeds frm the ntes have been swapped int Eurs at a fixed interest rate f 1.82% p.a. ver the same tenure 2. S$ prceeds frm the ntes have been swapped int Eurs at a fixed interest rate f 2.15% p.a. ver the same tenure 3. Prir t re-financing, the riginal cst f brrwing was 2.01% p.a.

35 Freign Currency Risk Management 4 Adpting natural hedging strategy t the extent pssible ; ~47% Ttal Assets in freign currency hedged Debt By Currency (%) As at 30 Sep 2018 Balance Sheet Hedging (%) As at 30 Sep 2018 EUR 29% JPY 90 EUR 64 JPY 32% USD 48 Ttal Debt S$1,886m GBP RMB RMB 3% SGD 5% GBP 9% USD 22% VND PHP AUD MYR

36 Freign Currency Risk Management 4 Hedging strategy mitigated impact f exchange rate fluctuatins t 0.2% f Grss Prfit Currency Grss Prfit YTD Sep 2018 (%) Exchange Rate Mvement Frm 31 Dec 2017 t 30 Sep 2018 (%) EUR JPY SGD USD 11.5 (1.0) GBP VND 9.2 (1.7) RMB AUD 8.0 (0.5) PHP 2.6 (4.3) MYR Ttal ~48% f Distributable Incme derived in EUR, GBP, JPY and USD had been hedged Cntinuus mnitring f the freign exchange mvement and hedging f expsure 36

37 Strng Spnsr The Asctt Limited 5 A whlly-wned subsidiary f CapitaLand Limited One f the leading internatinal serviced residence wnerperatrs with extensive presence >30 year track recrd, pineered Pan-Asia s first internatinal-class serviced residence prperty in 1984 Spnsr: ~45% CapitaLand wnership in Asctt REIT Award-winning brands with wrldwide recgnitin 37 Nte: 1. Exclude the number f prperties under the Synergy crprate husing prtfli

38 Cnclusin 38 La Clef Luvre Paris

39 Cnclusin Creatin f lng term, stable returns t Unithlders thrugh diversified prtfli and extended-stay business mdel Spnsr Strng Brand Recgnitin and Glbal Ftprint Strng Alignment f interest with Unithlders with >45% stake in Asctt REIT Grwth : Net divestment gain f S$304.4m Ttal Assets wrth S$5.3 billin Acquired lyf ne-nrth Capital & Risk Management Well-diversified Prtfli f Assets Active Asset Management Asset Enhancement Initiatives Prtfli Optimisatin Unlck Value 39

40 Awards and Acclades Clinched Highly Cveted Acclades Wrld Travel Awards 2018 Leading Serviced Apartments in respective cuntries Citadines Arnulfpark Munich Citadines Sainte-Catherine Brussels Citadines Ramblas Barcelna TripAdvisr Awards Travellers Chice Award 2018 Asctt Makati Citadines Suth Kensingtn Lndn La Clef Lurve Paris Smerset Ampang Kuala Lumpur Smerset Grand Hani Smerset H Chi Minh City Smerset Xu Hui Shanghai Asia Pacific Best f the Breeds REITs Awards 2018 Best Hspitality REIT - Platinum Singapre Gvernance and Transparency Index 2018 Ranked 3 ut f the 43 Trusts Business Traveller Asia-Pacific Awards 2018 Best Serviced Residence Brand in Asia Pacific Travel Weekly Asia Readers Chice Awards 2018 Best Serviced Residence Grup Certificate f Excellence Award prperties 1 40 Nte: 1. Fr the full list f the awards, please refer t

41 Other Infrmatin 41 Smerset H Chi Minh City

42 Asctt REIT A Leading Glbal Serviced Residence REIT Well-diversified prtfli f quality assets lcated in majr gateway cities S$2.4b 1 Market Capitalisatin S$5.3b Ttal Assets 11,430 Apartment Units 73 Prperties 37 Cities in 14 Cuntries United Kingdm 4 prperties China 7 prperties Belgium The United States f America 3 prperties Spain 1 prperty France 17 prperties 2 prperties Germany 5 prperties Japan 15 prperties The Philippines 2 prperties Vietnam 5 prperties Singapre 4 prperties Malaysia 1 prperty Australia 5 prperties Indnesia 2 prperties 42 Nte: Figures abve as at 30 September 2018 (unless therwise indicated) and exclude lyf ne-nrth Singapre (under-develpment) 1. As f 28 September 2018

43 43 Diversified Gegraphical Ftprint in Key Gateway Cities United States f America DubleTree by Hiltn Htel New Yrk Times Square Suth Element New Yrk Times Square West Sheratn Tribeca New Yrk Htel Spain Citadines Ramblas Barcelna France United Kingdm Citadines Barbican Lndn Citadines Hlbrn-Cvent Garden Lndn Citadines Suth Kensingtn Lndn Citadines Trafalgar Square Lndn Citadines Austerlitz Paris Citadines Didt Mntparnasse Paris Citadines Les Halles Paris Citadines Maine Mntparnasse Paris Citadines Mntmartre Paris Citadines Place d Italie Paris Citadines République Paris Citadines Tur Eiffel Paris Citadines Trcadér Paris La Clef Luvre Paris Citadines Crisette Cannes Citadines City Centre Grenble Belgium Citadines City Centre Lille Citadines Sainte-Catherine Brussels Citadines Presqu île Lyn Citadines Tisn d Or Brussels Citadines Castellane Marseille Citadines Prad Chant Marseille Citadines Antigne Mntpellier Germany Citadines Arnulfpark Munich Citadines City Centre Frankfurt Citadines Kurfürstendamm Berlin Citadines Michel Hamburg Nte: Madisn Hamburg 1. Exclude lyf ne-nrth Singapre (under-develpment) China Asctt Guangzhu Citadines Xinghai Suzhu Citadines Zhuanku Wuhan Smerset Grand Central Dalian Smerset Heping Shenyang Smerset Olympic Twer Prperty Tianjin Smerset Xu Hui Shanghai Philippines Asctt Makati Smerset Millennium Makati Malaysia Smerset Ampang Kuala Lumpur Indnesia Asctt Jakarta Smerset Grand Citra Jakarta Japan Citadines Central Shinjuku Tky Citadines Shinjuku Tky Smerset Azabu East Tky Citadines Karasuma-Gj Kyt Actus Hakata V-Twer Big Palace Kita 14j Gravis Curt Kakmachi Gravis Curt Kkutaiji Gravis Curt Nishiharaekimae Infini Garden Rppngi Residences Tky S-Residence Hmmachi Marks S-Residence Tanimachi 9 chme S-Residence Midribashi Seri S-Residence Fukushima Luxe Vietnam Smerset Grand Hani Smerset Ha Binh Hani Smerset West Lake Hani Smerset Chancellr Curt H Chi Minh City Smerset H Chi Minh City Singapre 1 Asctt Orchard Singapre Asctt Raffles Place Singapre Citadines Munt Sphia Prperty Singapre Smerset Liang Curt Prperty Singapre Australia Citadines On Burke Melburne Citadines St Gerges Terrace Perth Quest Campbelltwn Quest Masct Quest Sydney Olympic Park

44 Key Features f Asctt REIT Investment Mandate Invests primarily in real estate and real estate-related assets which are incmeprducing and which are used, r predminantly used, as serviced residences, rental husing prperties and ther hspitality assets in any cuntry in the wrld Leverage Minimum Distributin Payut Rati Based n regulatry requirements, Asctt REIT s aggregate leverage limit cannt exceed 45% 1 Histrically, Asctt REIT s aggregate leverage has been at apprximately 34%-41% 2 Required t distribute at least 90% f its taxable incme t Unithlders t qualify fr the Inland Revenue Authrity f Singapre tax transparency treatment fr REITs Since its listing, Asctt REIT has paid ut 100% f its distributable incme t Unithlders Spnsr-aligned Interest CapitaLand Limited, the parent cmpany f The Asctt Limited ( Asctt ), is a substantial Unithlder f Asctt REIT ( ~45% interest in Asctt REIT) Crprate Gvernance Externally managed by Asctt Residence Trust Management Limited 3 Majrity Independent Nn-Executive Directrs n the Bard 44 Ntes: 1. Asctt REIT is gverned by the Cde n Cllective Investment Schemes ( CIS Cde ) issued by the Mnetary Authrity f Singapre. 2. Based n Asctt REIT s gearing fr financial years An indirect whlly-wned subsidiary f CapitaLand Limited

45 Overview f Asctt REIT Trust Structure Unithlders Hlding f Units Distributins Manager Asctt Residence Trust Management Limited Management Services Management Fees Acts n behalf f Unithlders Trustee s Fees Trustee DBS Trustee Limited fr Unithlders Net Prfit Dividends Ownership f Assets Ownership f Shares Singapre Prperties Asctt Raffles Place Singapre & Asctt Orchard Singapre Master Lease Master Lease Incme Master Lessees Master Lease Master Lease Incme Prperty Hlding Cmpanies / Prperty Cmpanies Citadines Munt Sphia Prperty Singapre & Smerset Liang Curt Prperty Singapre Serviced Residence Management Fees Serviced Residence Management Services Serviced Residence Management Cmpanies Serviced Residence Management Fees Serviced Residence Management Services 45

46 Where is Asctt REIT since IPO 12 Years Ag Gegraphical presence deepened frm 7 t 37 cities Grss Prfit (S$ millin) Unithlders Distributin (S$ millin) Ttal Assets (S$ billin) YTD Sep YTD Sep YTD Sep 2018 Ttal Unithlder s Return 2 >300% 46 Ntes: 1. The decrease in ttal assets is due t the divestment f Citadines Biyun Shanghai and Citadines Gaxin Xi an n 5 January Cnsists all distributins and capital appreciatin f Asctt Reit s unit price frm IPO in March 2006 t 28 September 2018 (Surce: Blmberg as at 28 September 2018)

47 Htel vs. Serviced Residences Htel Lease Structure: Shrt Term Revenue Surces: Rms, F&B, Ancillary etc. Cst Structures: Higher staff-t-rm rati and full range f hspitality services Seasnality: Predminantly seasnal nature f turism industry Serviced Residences Lease Structure: Variable Lease terms Revenue Surces: Predminantly frm rms Cst Structures: Lwer staff-t-rm rati and limited services prvided Seasnality: Predminantly driven by lng term macrecnmic factrs; GDP & FDI inflws 47

48 Business Mdel Engages Service f Operatr Owner Asctt Reit Spnsr/Operatr The Asctt Limited Guests What we d: Invest in serviced residences, rental husing prperties and ther hspitality assets arund the wrld Value Creatin: T deliver stable and sustainable returns t Unithlders thrugh the wnership f the assets What we d: Experienced Operatr f Serviced Residence & Ldging Prduct Value Creatin: Experience, Deepened Presence fr Ecnmies f Scale; Suite f Brands Descriptin: A gd mix f crprate vs leisure custmers; varying acrss length f stay Enjyment f different experience 48 Prvisin f Custmer Service

49 Thank Yu Fr enquires, please cntact: Ms Kang Wei Ling, Investr Relatins Direct: (65) Asctt Residence Trust Management Limited ( 168 Rbinsn Rad #30-01 Capital Twer, Singapre Tel: (65) ; Fax: (65)