Proposed Acquisition of Park Hotel Clarke Quay. May 2013

Transcription

1 Proposed Acquisition of Park Hotel Clarke Quay May 2013

2 Disclaimer This presentation may contain forward-looking statements that involve assumptions, 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 other developments or companies, shifts in expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses (including employee wages, benefits and training costs), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither Ascendas Hospitality Fund Management Pte. Ltd. (in its capacity as the manager of Ascendas Hospitality Real Investment Trust ( A-HREIT )) (the REIT Manager ), The Trust Company (Asia) Limited (in its capacity as the trustee of A-HREIT) (the REIT Trustee ), Ascendas Hospitality Trust Management Pte. Ltd. (in its capacity as the trustee-manager of Ascendas Hospitality Business Trust) (the Trustee-Manager ) or any of their affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation. The past performance of Ascendas Hospitality Trust ( A-HTRUST ) (which comprises A-HREIT and A-HBT) is not indicative of its future performance. Similarly, the past performance of the REIT Manager and the Trustee-Manager (collectively, the Managers ) is not indicative of their future performance. The value of stapled securities in A-HTRUST ( 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 A-HTRUST or the Managers, the REIT Trustee or any of their respective affiliates. An investment in Stapled Securities is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the Managers redeem or purchase their Stapled Securities while the Stapled Securities are listed. It is intended that holders of Stapled Securities (the Stapled Securityholders ) may only deal in their Stapled Securities through trading on Singapore Exchange Securities Trading Limited (the SGX-ST ). Listing of the Stapled Securities on the SGX-ST does not guarantee a liquid market for the Stapled Securities. This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities (including without limitation, the Stapled Securities) in the United States. This presentation is not for publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia), Canada or Japan. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the Securities Act ), and may not be offered or sold in the United States, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements under the Securities Act. No public offering of securities is being made in the United States. 2

3 Table of Contents 1 Overview of Park Hotel Clarke Quay Acquisition 2 Acquisition Rationale 3 Pro Acquisition forma Financial Rationale Effects 4 Proforma EGM Resolutions Financial and Effects Indicative Timeline Appendix 5 A Key Overview Conditions of A-HTRUST of the Sale and Purchase Agreement Appendix B Supplementary Materials 3

4 Park Hotel Clarke Quay A-HTRUST has entered into a conditional Sale and Purchase Agreement for the proposed acquisition of Park Hotel Clarke Quay Asset Overview Location Year of Completion Unity Street, Singapore (near Clarke Quay and Robertson Quay entertainment districts) Rooms Land Lease Tenure Hotel Operator Master Lessee Facilities 330 rooms and 6 suites 99-year leasehold commencing 27 November 2006 (93 years remaining) Park Hotel Group Park Hotel CQ Pte. Ltd., a member of Park Hotel Group 25-metre outdoor swimming pool Two food and beverage outlets Fitness centre Spa pavilions 167 sqm of meeting and banquet space Business centre Car park CY 2012 Operating Metrics Occupancy (1) ARR (2) RevPAR (3) 88.9% S$211 S$187 (1) Total occupied rooms divided by total available rooms for the period 1 January 2012 to 31 December 2012 (2) Average room rate. Net room revenue excluding service charge divided by total occupied rooms for the period 1 January 2012 to 31 December 2012 (3) Revenue per available room. Calculated as net room revenue excluding service charge divided by total available rooms for the period 1 January 2012 to 31 December

5 Details of Acquisition Purchase Consideration S$300.0m (2.6% discount to valuation) Valuation S$308.0m (Colliers as of 31 March 2013) Estimated total costs of S$307.4m, comprising: Acquisition Costs Master Lessee Term of Master Lease Purchase Consideration of S$300.0m Acquisition Fee payable to the REIT Manager of S$3.0m Estimated professional fees and other transaction fees and expenses of approximately S$4.4m Park Hotel CQ Pte. Ltd., a member of Park Hotel Group years (option to extend by mutual consent) Rental income comprises: A fixed rent component starting at S$11.5m for the initial 12-month period with an annual 3% escalation ( Fixed Rent ) Rent Payment A first variable rent component of 67.0% of any EBITDA (1) between the Fixed Rent and S$16.0m p.a. A second variable rent component of 33.0% of any EBITDA (1) above S$16.0m p.a. In addition to the above, the Master Lessee shall pay a one-time additional rent of S$250,000 in the event that the gross operating profit of the Master Lessee for the year ending 31 December 2013 does not exceed S$19.77m Capitalisation Rate 5.0% (27 July 2012 to 31 March 2013, annualised) Note: For more details, please refer to the SGXNet Announcement dated 5 April 2013 (1) EBITDA means earnings before interest, taxes, depreciation and amortisation of the Master Lessee, after deduction of furniture, fittings and equipment expenses and other expenses such as insurance and property taxes 5

6 Funding Structure Combination of debt and equity financing REIT manager and REIT Trustee have accepted a letter of commitment for a term loan of up to S$110.0 million ( Debt Facility ) Proposed Equity Fund Raising ( EFR ) of up to million new stapled securities to partially fund the acquisition and associated costs, debt repayment and / or future acquisitions, with the balance to be used for working capital purposes Structure and timing of the EFR has not been determined, and may comprise a private placement and a non-renounceable preferential offering If EFR comprises a preferential offering, Ascendas Land will demonstrate support by providing an undertaking to (i) accept its allotment of new stapled securities and (ii) subscribe for new stapled securities to the extent that they remain unsubscribed after satisfaction of all applications (1) Illustrative pro forma financial effects of the Acquisition consider 2 scenarios: 1. After the Acquisition Only (assuming S$200.0 million raised via EFR) 2. After the Acquisition and Additional Equity Raised to Repay Debt (assuming S$250.0 million raised via EFR) (1) Provided that Ascendas Land s aggregated stapled securityholdings in A-HTRUST after the Equity Fund Raising will not exceed its percentage holdings in A-HTRUST immediately prior to the Equity Fund raising 6

7 Attractive Standalone DPS Yield Park Hotel Clarke Quay acquisition has an attractive distribution yield compared to comparable hospitality S-REITs and other investment opportunities 7.0% 6.0% 5.0% 6.0% 5.5% c.50bps 4.9% c.110bps 4.0% c.350bps c.460bps 3.0% 2.5% 2.0% 1.4% 1.0% 0.0% PHCQ Standalone Distribution Yield (1) Singapore-focused Hospitality S-REITs (2) FTSE ST REIT Index Yield CPF Ordinary Account Yield (3) (4) SG 10 Yr Gov Bond Yield Source: Bloomberg as of 30 April 2013, Central Provident Fund Board (1) Park Hotel Clarke Quay annualised standalone distribution yield calculated based on increase in distributable income after the acquisition only (S$200.0 million EFR), divided by S$200.0 million EFR (2) Simple average of DPS yield for Singapore-focused hospitality S-REITs (with more than 50% portfolio value attributed to Singapore hospitality assets) as calculated based on annualised DPS for the financial period from 1 July 2012 to the latest reported financial period end, divided by price (3) As calculated based on annualised DPS for the financial period from 1 July 2012 to 31 March 2012, divided by price (4) Prevailing Central Provident Fund ordinary account savings rate as of 30 April

8 Table of Contents 1 Overview of Park Hotel Clarke Quay Acquisition 2 Acquisition Rationale 3 Pro Acquisition forma Financial Rationale Effects 4 Proforma EGM Resolutions Financial and Effects Indicative Timeline Appendix 5 A Key Overview Conditions of A-HTRUST of the Sale and Purchase Agreement Appendix B Supplementary Materials 8

9 Acquisition Rationale 1 Entry into the Singapore Hospitality Market Performance of the Singapore hospitality market New and upcoming tourist attractions Premier MICE and medical tourism hub 2 Ownership of a High Quality Asset Strategic location with excellent connectivity Experienced hotel operator with a regional hotel network Newly-constructed and well-maintained hotel with long leasehold tenure RevPAR growth underpinned by diverse client mix Award-winning hotel with regional brand 3 4 Enhanced Cashflow Stability and Portfolio Diversification NAV Accretive Transaction Stable master lease structure with high fixed rent component Increased geographical diversification Increased exposure to favourable hotel market segment Increased diversification of hotel operators Reduced exposure to foreign exchange risks 3.7% increase in NAV per stapled security (1) 5 Increased Portfolio Size and Liquidity 29.5% increase in portfolio value Increased trading liquidity from 34.3% increase in free float (1) (1) Free float is calculated based on total market capitalisation as of 30 April 2013, less Ascendas Pte Ltd s deemed 28.9% stake, and assuming a S$200m Equity Fund Raising at the Illustrative Issue Price of S$0.965 as set out in the circular. Assumes that free float increases by S$200m after the Equity Fund Raising. Actual free float post-acquisition will be dependent on sizing of private placement and preferential offering tranches, in the event that the Equity Fund Raising comprises a preferential offering 9

10 1 Entry Into the Singapore Hospitality Market

11 Performance of the Singapore Hospitality Market Robust ARR growth with demand in line with supply growth ARR and Occupancy Trends (S$) % % RevPAR CAGR 16.2% % 86% % 95% 90% 85% 80% 75% Source: Singapore Tourism Board, HVS Visitor Arrivals ADR ARR RevPAR Occupancy Hotel Room Supply (m) (rms) % CAGR , % CAGR ,000 53,138 42, , , E Source: Singapore Tourism Board, HVS 0 Source: HVS E 11

12 New and Upcoming Tourist Attractions Growth driven by an enhanced tourism landscape First Formula 1 Night Race Marina Bay Sands International Cruise Terminal River Safari National Arts Gallery E 2014E 2015E Singapore Flyer Resorts World Sentosa Gardens by the Bay Marine Life Park Singapore Sports Hub Source: Singapore Tourism Board, National Arts Gallery 12

13 Premier MICE and Medical Tourism Hub and additional demand driven by MICE and medical tourism activities Top International Meeting City for the 5 th Consecutive Year (2011) Medical Tourism Receipts Singapore (S$m) 1,000 CAGR 12.3% 980 Brussels Paris Vienna Seoul Budapest Tokyo Barcelona Berlin Geneva Number of medical travellers to Singapore expected to grow at a CAGR of 12.4% from 2012 to Number of Meetings Source: Union of International Associations Source: Singapore Tourism Board, Frost and Sullivan 13

14 2 Ownership of a High Quality Asset

15 Strategic Location with Excellent Connectivity Located in Clarke Quay, one of Singapore s most vibrant entertainment districts Located along the bank of the Singapore River in Clarke Quay, with its wide array of restaurants, bars, entertainment spots, and shops set against a backdrop of restored shophouses Situated near the central business district ( CBD ), Orchard Road shopping belt, Marina Bay, the Civic District and Chinatown Excellent transport connectivity approximately 0.5km away from the Clarke Quay MRT station and across the road from the future Fort Canning MRT station Along major roads in the city with easy access to and from Changi Airport Strategic location allows it to cater to both corporate and leisure travellers Source: Clarke Quay website Located in the heart of Minutes away from Clarke Quay and Robertson Quay CBD Orchard Road Marina Bay Chinatown 15

16 Experienced Operator with a Regional Hotel Network The Park Hotel Group manages over 3,300 rooms (1) across 6 cities Park Hotel Clarke Quay (336 rooms) Grand Park Otaru (296 rooms) Japan Grand Park Orchard (308 rooms) China Hong Kong Grand Park Kunming (300 rooms) Grand Park Wuxi (407 rooms) Grand Park Xian (298 rooms) Grand Park City Hall (333 rooms) Singapore (HQ) Park Hotel Hong Kong (347 rooms) + 2 upcoming hotels under management Park Hotel Alexandra (2015E, 450 rooms) Park Hotel Farrer Park (2015E, 300 rooms) Source: Park Hotel website. (1) Including 2 upcoming hotels, Park Hotel Alexandra and Park Hotel Farrer Park Notable Awards: Best Regional Hotel Chain (TTG Travel Awards 2012) Most Progressive Hotel Group (Asia Hotel Forum Asia Awards 2011) 16

17 Newly-constructed and Well-maintained Hotel with Long Leasehold Tenure New hotel not expected to require significant capital expenditure Construction of the hotel was completed in 2009 Expected to require minimal capital expenditure as property is well-maintained Long remaining land lease tenure of 93 years, above other currently listed hospitality S-REITs Remaining Land Lease Tenure (Years) Park Hotel Clarke Quay Other Hospitality S-REITs (Singapore Hotels Only) (1) (1) Based on publicly available information such as initial public offering prospectuses and annual reports of comparable hospitality REITs in Singapore. Remaining lease tenures of Singapore hotel properties of comparable hospitality REITs in Singapore weighted by valuations as of 31 December

18 RevPAR Growth Underpinned by Diverse Client Mix Park Hotel Clarke Quay s strategic location allows it to cater to both corporate and leisure travellers, driving RevPAR growth from Park Hotel Clarke Quay Guest Profile in 2012 (By room bookings) Park Hotel Clarke Quay RevPAR (1) growth (S$) (S$) 200 Internet 20% Others 2% 190 CAGR 7.9% 187 Corporate and MICE 42% Leisure 36% (1) Excludes service charge 18

19 Award-winning Hotel with Regional Brand Many awards and accolades since commencement of operations in 2009 Selected Awards and Accolades Best Hotel, Singapore Highly Commended (2012) International Hotel Awards Asia Pacific Certificate of Excellence (2012) Tripadvisor Best New City Hotel (2010) 21st TTG Travel Awards Best-in-class Amenities Featuring guest rooms with modern furnishings, elevated ceilings and full-length windows, which offer views of the city skyline and the Singapore River Including a wide range of modern facilities such as the outdoor swimming pool and jacuzzi, spa pavilions and a fitness centre Gold Winner in the Signature Deluxe Hotel Category ( ) Hospitality Asia Platinum Awards, Regional Series, Best 5 in Asia Best Hotel Construction & Design (2010) Singapore, Asia Pacific Property Awards Source: Park Hotel website 19

20 3 Enhanced Cashflow Stability and Portfolio Diversification

21 Stable Master Lease Structure with High Fixed Rent Component Addition of a stable master lease structure with high fixed rent component Rental Breakdown for Park Hotel Clarke Quay(1) Net Property Income by Master Leases and Managed Contracts (2) Variable Rent 23.9% 82.5% 68.1% Fixed Rent 76.1% 17.5% 31.9% Ariake Sunroute (Japan) + Park Hotel Clarke Quay (Singapore) A-HTRUST (Current) Master Lease A-HTRUST (Post- Acquisition) Managed Contract Long tenure of master lease (10 years + option to extend for 5 years) expected to provide a long-term stream of quality rental income Fixed rent component of the master lease provides for a minimum rental payment regardless of hotel performance, offering investors quality downside protection, while the variable rent and 3.0% annual escalation on the Fixed Rent provides rental income growth resulting in a higher proportion of income from master leased assets post-acquisition (1) Based on pro forma rental income from Park Hotel Clarke Quay for the period 27 July 2012 to 31 March 2013 (2) Based on the net property income for the period from 27 July 2012 to 31 March

22 Increased Geographical Diversification Acquisition reduces A-HTRUST s exposure to any one country or city Japan 20.2% China 9.7% Australia 70.1% Japan 15.6% Singapore 22.8% China 7.5% Australia 54.1% A-HTRUST (Current) A-HTRUST (Post-Acquisition) S$1,045m valuation S$1,353m valuation (1) (2) (1)(2) Post-acquisition, A-HTRUST s portfolio will be diversified across Australia, Singapore, Japan and China, reducing dependence on any single country Reduces exposure to foreign exchange risks with greater alignment of: A-HTRUST s cash flows vis-à-vis its distributions Currencies of A-HTRUST s assets and liabilities (1) Breakdown by portfolio value (2) Current portfolio is based on the property valuations as at 31 March 2013 which includes the revaluation of land use rights of the China properties 22

23 Increased Exposure to Favourable Hotel Market Segment and Diversification of Hotel Operators Enlarged presence in the resilient mid-scale hotel segment while reducing dependence on any one hotel operator No. of Rooms by Hotel Segment (1) Portfolio Value by Hotel Operator (2) 3.5% 3.2% 5.5% 34.2% 31.2% 20.2% 22.8% 4.2% 15.6% 37.8% 43.2% 74.3% 57.4% 24.5% 22.4% A-HTRUST AHT (Current) (Current) AHT A-HTRUST (Post-Acquisition) A-HTRUST AHT (Current) A-HTRUST AHT (Post-Acquisition) Upscale Mid-scale Economy Extended stay (3) Accor Sunroute Marriott Park Hotel (1) Upscale (Pullman); Midscale (Novotel, Mercure, Courtyard, Park Hotel); Economy (Sunroute, Ibis); Extended stay (B:Conte) (2) Current portfolio is based on the property valuations as at 31 March 2013 which includes the revaluation of land use rights of the China properties (3) Includes value of extended-stay component in Ariake Sunroute operated by Space Design Co., Ltd 23

24 Reduced Exposure to Foreign Exchange Risks Additional portfolio diversification mitigates foreign exchange volatility on total portfolio value YTD 2013 Real Time AHT Portfolio Valuation (Rebased to 100%) (Rebased to 100) AHT (Post-Acquisition): -1.3% AHT (Current): -1.7% Jan-13 Feb-13 Mar-13 Apr-13 Source: Bloomberg as of 30 Apr 2013; based on AHT property valuation in local currency, as disclosed in IPO prospectus 24

25 4 NAV Accretive Transaction

26 NAV Accretive Transaction NAV per Stapled Security is expected to increase 3.7% NAV (S$m) NAV per Stapled Security (S$) 1, % % A-HTRUST (Current) A-HTRUST A-HTRUST (Post- (Post-Acquisition, Acquisition, S$200m EFR) S$200m EFR) (1) 0.70 A-HTRUST (Current) A-HTRUST A-HTRUST (Post- (Post-Acquisition, Acquisition, S$200m EFR) S$200m EFR) (1) (1) Assuming S$200.0 million raised via the EFR and S$107.4 million drawn down from the Debt Facility are used in aggregate to fund the total acquisition cost 26

27 5 Increased Portfolio Size and Liquidity

28 Increased Portfolio Size and Liquidity 29% growth in portfolio value and 34% increase in free float expected to enhance liquidity Portfolio Size (S$m) (1) Illustrative Free Float (3) (S$m) No. of Rooms 3,482 3,818 Free Float (%) 71.1% 77.0% S$1,353m Park Hotel Clarke Quay Novotel Beijing Sanyuan Ibis Beijing Sanyuan Pullman Cairns International (50% stake) (2) Novotel Sydney Parramatta Courtyard by Marriott North Ryde Novotel Sydney Central Pullman & Mercure Melbourne Albert Park Pullman Sydney Hyde Park Pullman & Mercure Brisbane King George Square Ariake Sunroute S$1,045m 29.5% AHT (Current) A-HTRUST (Current) AHT (Post-Acq) A-HTRUST (Post-Acquisition) % A-HTRUST (Current) 784 A-HTRUST (Post- Acquisition, (Post-Acquisition, S$200m S$200m EFR) EFR) (1) Based on property valuations as at 31 March 2013 which includes the revaluation of land use rights of the China properties (2) Portfolio value and no. of rooms for Pullman Cairns International are for A-HTRUST s 50% stake only (3) Free float is calculated based on total market capitalisation as of 30 April 2013, less Ascendas Pte Ltd s deemed 28.9% stake, and assuming a S$200m Equity Fund Raising at the Illustrative Issue Price of S$0.965 as set out in the circular. Assumes that free float increases by S$200m after the Equity Fund Raising. Actual free float post-acquisition will be dependent on sizing of private placement and preferential offering tranches, in the event that the Equity Fund Raising comprises a preferential offering 28

29 Table of Contents 1 Overview of Park Hotel Clarke Quay Acquisition 2 Acquisition Rationale 3 Pro Acquisition forma Financial Rationale Effects 4 Proforma EGM Resolutions Financial and Effects Indicative Timeline Appendix 5 A Key Overview Conditions of A-HTRUST of the Sale and Purchase Agreement Appendix B Supplementary Materials 29

30 Pro forma Financial Effects after the Acquisition Only Distributable income to increase 23.7% FY12/13 Distributable Income (S$m) FY12/13 Annualised DPS Yield (%) (2) % 6.6% 6.5% % % 5.0% % % 2.0% % 0 A-HTRUST (Current) A-HTRUST A-HTRUST (Post- (Post-Acquisition, Acquisition, S$200m EFR) S$200m EFR) (1) 0.0% A-HTRUST (Current) A-HTRUST A-HTRUST (Post- (Post-Acquisition, Acquisition, S$200m EFR) S$200m EFR) (1) (1) Assuming S$200.0 million raised via the EFR and S$107.4 million drawn down from the Debt Facility are used in aggregate to fund the total acquisition cost (2) DPS yield as calculated based on the annualised pro forma DPS for the financial period from 27 July 2012 to 31 March 2013, divided by the illustrative issue price of S$ Does not include sponsor distribution waiver 30

31 Improved Risk-Return Proposition Acquisition results in an increased DPS yield spread over weighted risk-free rate Park Hotel Clarke Quay Standalone DPS Yield (1) A-HTRUST s Annualised DPS Yield Spread (2)(3) 7.0% 7.0% 6.6% 6.5% 6.0% 6.0% 6.0% 5.0% 5.0% 4.0% + c.20 bps 4.2% 4.0% 4.6% 4.0% 3.0% 3.0% 2.0% 2.0% 1.0% 1.4% 1.0% 2.6% -c.30 bps 2.3% 0.0% Park Hotel Clarke Quay Standalone Distribution Yield 0.0% AHT (Current) AHT A-HTRUST (Post-Acquisition, (Post-Acquisition, S$200m EFR) S$200m EFR) (4) Weighted average risk-free DPS yield spread over weighted average risk-free Source: Bloomberg (1) Park Hotel Clarke Quay annualised standalone distribution yield calculated based on increase in distributable income after the acquisition only (S$200.0 million EFR), divided by S$200.0 million EFR (2) DPS yield as calculated based on the annualised pro forma DPS for the financial period from 27 July 2012 to 31 March 2013, divided by the illustrative issue price of S$ Does not include sponsor distribution waiver (3) Weighted average risk-free rate calculated based on the relevant 10-year government bond yields in each country as of 30 April 2013, weighted according to each country s contribution to the portfolio s total valuation (4) Assuming S$200.0 million raised via the EFR and S$107.4 million drawn down from the Debt Facility are used in aggregate to fund the total acquisition cost 31

32 Increased Debt Headroom and Financial Flexibility Additional equity raise of S$50m reduces aggregate gearing to 31.6%, with resultant debt headroom (2) increasing by S$83m to S$198m Aggregate Gearing (1) Debt Headroom (2) S$87m S$115m S$198m 40.0% 35.0% 35.3% 35.2% 31.6% 30.0% 25.0% A-HTRUST (Current) A-HTRUST (Post-Acquisition, S$200m EFR) A-HTRUST (Post-Acquisition, S$250m EFR) (1) Aggregate gearing is computed based on total debt over total assets and assumes debt financing of S$107.4 million (2) Debt headroom to 40%, assuming concurrent increase in assets enabling A-HTRUST to capitalise on future growth opportunities 32

33 Table of Contents 1 Overview of Park Hotel Clarke Quay Acquisition 2 Acquisition Rationale 3 Pro Acquisition forma Financial Rationale Effects 4 Proforma EGM Resolutions Financial and Effects Indicative Timeline Appendix 5 A Key Overview Conditions of A-HTRUST of the Sale and Purchase Agreement Appendix B Supplementary Materials 33

34 EGM Resolutions Ordinary Resolutions (Inter-conditional) 1 Proposed acquisition of Park Hotel Clarke Quay 2 Proposed issue of up to million new stapled securities to partially fund the Acquisition and associated costs, fund debt repayment and / or future acquisitions, with the balance to be used for working capital purposes 34

35 Key Indicative Dates Date Event 20 May 2013, at a.m. Last date and time for lodgment of Proxy Forms 22 May 2013, at a.m. Extraordinary General Meeting Subject to Approval of Resolutions 1 and 2 at the EGM 30 June 2013 (or by such later date (1) (not being later than 31 July 2013)) Target date for completion of the Acquisition and EFR (1) Which the REIT Trustee may in its sole discretion extend by giving written notice to the Vendor 35

36 Table of Contents 1 Overview of Park Hotel Clarke Quay Acquisition 2 Acquisition Rationale 3 Pro Acquisition forma Financial Rationale Effects 4 Proforma EGM Resolutions Financial and Effects Indicative Timeline Appendix 5 A Key Overview Conditions of A-HTRUST of the Sale and Purchase Agreement Appendix B Supplementary Materials 36

37 Overview of A-HTRUST Total portfolio valued at c.s$1,045m across 10 properties, with 3,482 rooms in Australia, China, and Japan Hotels are strategically located in key gateway cities in Asia and Australia close to prime business and tourism centres with favourable macroeconomic and hospitality sector fundamentals Independent platform with the ability to engage best-in-class operators, while leveraging a strategic collaboration with Accor for expertise in hotel management China Japan By Valuation Japan 20.2% China 9.7% Australia 70.1% Novotel Beijing Sanyuan 305 rooms China Beijing JAPAN Tokyo Ariake Sunroute 912 rooms By No. of Rooms Ibis Beijing Sanyuan 401 rooms Australia Cairns Brisbane Australia (AAHF Hotels) Melbourne Sydney Note: (1) A-HTRUST owns 50% interest in Pullman Cairns International Novotel Sydney Central 255 rooms Pullman Sydney Hyde Park 241 rooms Novotel Sydney Parramatta 194 rooms Courtyard by Marriott North Ryde 196 rooms Pullman & Mercure Melbourne Albert Park 379 rooms (Mercure) (Pullman) Pullman & Mercure Brisbane King George Square 438 rooms (Mercure) (Pullman) Pullman Cairns International (1) 321 rooms 37

38 Independent Platform with Ability to Engage Best-in-Class Hotel Operators Independent Platform Ability to acquire any assets that meet A- HTRUST investment criteria, include sale-andleaseback arrangements with any vendor Accor has a right of first offer for hotels acquired by A-HTRUST only if the vendors do not intend to operate the hotels Flexibility to engage hotel operators best suited for local clientele and target market One of the largest hotel operators in the Asia Pacific with over 550 hotels Operates across 20 countries under 8 brands Manages A-HTRUST s Beijing hotels under the Novotel and ibis brands and 6 out of the 7 hotels held through AAHF Manages total of 8 hotels with 2,374 rooms in A- HTRUST s portfolio One of the world s leading hotel operators, with c.3,700 properties globally Award-winning brands such as the Ritz-Carlton, Bulgari Hotels &Resorts, JW Marriott, EDITION, Marriott Hotels & Resorts Manages A-HTRUST s Courtyard by Marriot Manages 196 rooms in A-HTRUST s portfolio Subsidiary of JTB Corporation, the largest travel agency in Japan Total of 73 hotels in Japan, either under direct operation or under franchise Manages A-HTRUST s Ariake Sunroute in Japan Manages 790 rooms in A-HTRUST s portfolio 38

39 Strategic Partnership with Accor Provides Hospitality Expertise Largest hotel group in the Asia Pacific region with over 550 hotels across 20 countries, operating under 8 brands Asia Pacific Brand Portfolio Catering from luxury to economy segments China South Korea Japan AUSTRALIA 203 Hotels 27,531 Rooms CHINA 127 Hotels 29,313 Rooms JAPAN 9 Hotels 1,909 Rooms SINGAPORE 4 Hotels 1,748 Rooms India Taiwan Laos Hong Kong / Macau Thailand Vietnam Philippines Cambodia OTHERS 211 Hotels ~44,000 Rooms Awards and Recognition Best overall commitment of a large hotel group Conde Nast Traveler s World Savers Awards 2011 Malaysia Singapore Indonesia Commitment to the region with Asia-Pacific head office in Singapore and regional offices across the Asia Pacific regions Accommodation Chain of the Year as (Australia) Awards for Hotel and Accommodation Excellence Employee of the Year Accommodation Association of Australia Australia Tourism for Tomorrow Award 2010 World Travel & Tourism Council Accor s Presence New Zealand Source: Accor website as of 3 May

40 Creating an Unparalleled Pan-Asian+ Hospitality Platform Strategic Collaboration with Accor + Key Highlights Sponsor granted a right of first refusal to A- HTRUST A-HTRUST granted a right of first offer ( ROFO ) to Accor for 5 years To manage the hotel in the event A-HTRUST acquires such hotels and such vendors do not propose to operate the hotel assets, in the Accor Asia Region (1) Accor granted a ROFO to A-HTRUST for 5 years Potential benefits for A-HTRUST Provides access to potential future acquisition opportunities across Asia, Australia and New Zealand Ability to acquire assets from any vendors in the future Flexibility to work with suitable hotel managers Option to appoint Accor Pipeline of readily available assets To purchase hotel properties wholly owned by Accor in the Accor Asia Region (1), subject to certain conditions (2) Ascendas and Accor s commitment to A-HTRUST Ascendas & Accor currently hold a 28.9% stake and 5.7% stake in A-HTRUST respectively Strong alignment of interest Note: (1) Please refer to the prospectus for detailed definition (2) Subject to certain conditions including the hotel property not having a ROFR over it. Please refer to the prospectus for further details 40

41 FY12/13 Performance Exceeded Forecasts Net Property Income (S$m) Distributable Income (S$m) DPS (1) (cents) % % % Forecast Actual 20 Forecast Actual 3.00 Forecast Actual (1) DPS before taking into account sponsor distribution waiver 41

42 Favourable Performance in Last 3 Quarters A-HTRUST has consistently exceeded forecasts every quarter since IPO 2Q FY12/13 DPS (cents) (1)(2)(3) 3Q FY12/13 DPS (cents) (2)(3) 4Q FY12/13 DPS (cents) (2)(3) % % % Forecast Actual 1.20 Forecast Actual 1.20 Forecast Actual (1) 2Q FY12/13 is a stub period from 27 July 2012 to 30 September 2012 (2) DPS before taking into account sponsor distribution waiver (3) Forecast is based on the prospectus pro-rated on a straight line basis, without adjusting for seasonality 42

43 A-HTRUST s Trading Performance A-HTRUST has outperformed the market since IPO (S$) A-HTRUST +16% (1) 1.00 STI +12% Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 Source: Bloomberg, 27 July 2012 to 30 Apr 2013 (1) Percentage growth from IPO price of S$0.88 A-HTRUST STI (Rebased) 43

44 Healthy Balance Sheet As of 31 Mar 2013 Total Debt (S$ mil) Total Assets (S$ mil) 1,112.1 A-HTRUST Gearing (1) 35.3% - A-HREIT Gearing (1) 25.9% - A-HBT Gearing (1) 37.8% Effective Borrowing Rate 3.3% Weighted Average Debt to Maturity 2.2 years Net Asset Value per unit (S$) 0.82 (1) Gearing is computed based on total debt over total assets 44

45 Debt Profile Debt Maturity Profile Debt Currency Profile (S$m) 300 Weighted average debt to maturity: 2.2 years Interest Rate Profile Note: Debt profile as of 31 March

46 Table of Contents 1 Overview of Park Hotel Clarke Quay Acquisition 2 Acquisition Rationale 3 Pro Acquisition forma Financial Rationale Effects 4 Proforma EGM Resolutions Financial and Effects Indicative Timeline Appendix A Appendix B Overview of A-HTRUST Supplementary Materials 46

47 Pro forma Financial Effects Pro forma Distribution Per Stapled Security ( DPS ) Before the Acquisition Scenario 1: After the Acquisition Only (1) Scenario 2: After the Acquisition and Additional Equity Raised to Repay Debt (2) Net Property Income (S$ 000) 48,175 58,390 58,390 Net Profit / (Loss) after Tax before Share of Result of Jointly Controlled Entities (S$ 000) ,689 13,072 Distributable Income (S$ 000) 34,712 42,922 43,392 Issued Stapled Securities ( 000) 805,070 1,012,324 1,064,138 DPS (cents) Illustrative Issue Price (S$) Annualised DPS yield (%) (3) Weighted average risk free rate (%) (4) Annualised DPS yield spread over weighted average risk free rate (%) (5) Pro forma NAV Before the Acquisition Scenario 1: After the Acquisition Only (1) Scenario 2: After the Acquisition and Additional Equity Raised to Repay Debt (2) NAV (S$ 000) 661, , ,399 Issued Stapled Securities (S$ 000) 805,070 1,012,324 1,064,138 NAV per Stapled Security (S$) (1) Assuming S$200.0 million raised via the EFR and S$107.4 million drawn down from the Debt Facility are used in aggregate to fund the total acquisition cost (2) Assuming S$250.0 million raised via the EFR and S$107.4 million drawn down from the Debt Facility are used in aggregate to fund the total acquisition cost and repay S$50.0 million of existing debt facilities (3) As calculated based on the annualised DPS divided by the Illustrative Issue Price (4) Based on the relevant 10-year government bond yields in each country as 30 April 2013, weighted according to each country s contribution to A-HTRUST s portfolio s total valuation (Source: Bloomberg) (5) As calculated based on the annualised DPS yield less weighted average risk free rate 47

48 Thank You 48