Pangkor Laut Resort Perak Darul Ridzuan, Malaysia FINANCIAL PERFORMANCE: 1Q FY2020
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First Quarter FY2020 Financial Results 26 November 2019 KEY HIGHLIGHTS – 1Q FY2020 • Income available for distribution of RM33.4 FINANCIAL million, +1.9% q-o-q PORTFOLIO • 1.9584 sen distribution per unit (“DPU”) HIGHLIGHTS declared for 1Q FY2020 MANAGEMENT • Properties in Malaysia and Japan under master leases • 1Q FY2020 average occupancy rate for properties in Australia at 88.1%, 4.5 percentage points higher as compared to 1Q FY2019 CAPITAL • 1Q FY2020 ADR for properties in Australia at AUD248, MANAGEMENT 0.6% lower as compared to 1Q FY2019 ADR of AUD249 • 1Q FY2020 RevPAR for properties in Australia at AUD218, • Average interest rates for the quarter 4.7% higher as compared to 1Q FY2019 RevPAR of ‐ Borrowings in Ringgit Malaysia : 5.0% AUD208 ‐ Borrowings in Australian Dollar : 4.5% ‐ Borrowings in Japanese Yen : 0.8% • Melbourne Marriott Renovation Capex (Planned): AUD3 million • Debt headroom of ~RM824 million for acquisitions (Leverage limit reduced to 50% under new regulatory guidelines) 2 THE EDGE BILLION RINGGIT CLUB2019 “Highest Returns to Shareholders Over Three Years” REIT Category 3 1 Financial performances 1Q FY2020 Pangkor Laut Resort Perak Darul Ridzuan, Malaysia FINANCIAL PERFORMANCE: 1Q FY2020 1 July - 30 September 1Q FY2020 1Q FY2019 Change Total Revenue 120.7 113.9 + 6.0% (1) - Hotel Revenue (Management Contracts) 78.5 76.0 + 3.2% (2) - Lease Rental (Master Leases) 42.2 37.8 + 11.6% Net Property Income (NPI) 62.7 56.3 + 11.4% (1) - Management Contracts 23.4 21.4 + 9.4% (2) - Master Leases 39.3 34.9 + 12.6% Income available for distribution 33.4 32.8 + 1.9% Income distribution 33.4 32.8 + 1.9% - from current quarter 33.4 32.8 + 1.9% Distribution per unit (DPU) (sen) 1.9584 1.9219 + 1.9% Payout ratio (%) 100.0 100.0 0.0 pp* * pp = change in percentage points Notes: (1) The increase was mainly due to the improvements in room sales after the refurbishment of Brisbane Marriott. (2) Increased mainly due to (i) the acquisition of The Green Leaf Niseko Village in September 2018 and (ii) additional rental from JW Marriott Hotel Kuala Lumpur effective July 2019 after completion of the reimbursement for renovation costs paid by the lessee. All figures in RM million unless indicated otherwise. 5 STATEMENT OF FINANCIAL POSITION As at 30 September 2019 As at 30 June 2019 RM ('000) Change (Unaudited) (Audited) Investment properties 2,736,723 2,732,554 + 0.2% Property, plant and equipment 1,881,130 1,946,226 (3.3%) Cash & cash equivalents 149,217 148,972 + 0.2% Other assets 42,254 37,025 + 14.1% Total Assets 4,809,324 4,864,777 (1.1%) Borrowings 1,986,469 2,009,424 (1.1%) Other liabilities 123,709 118,253 + 4.6% Total Liabilities 2,110,178 2,127,677 (0.8%) (1) Net Asset Value (NAV) 2,699,146 2,737,100 (1.4%) Number of units in circulation ('000) 1,704,389 1,704,389 0.0% (1) NAV per unit (RM) 1.584 1.606 (1.4%) Note: (1) After total income distribution of RM33.4 million in respect of 1Q FY2020. 6 DPU PERFORMANCE Total DPU Quarterly Breakdown DPU (sen) 10 8.4613 8.0838 7.9746 7.8938 7.8683 7.8711 7.6359 7.3803 2.0989 4Q 6.4855 6.4855 Total Distributions* FY2019 FY2020 Cumulative 134.2 33.4 1.9116 3Q 5 4Q 35.8 3Q 32.6 1.9387 2Q 2Q 33.0 1Q 32.8 33.4 1.9584 * In RM million 1.9219 1.9584 1Q 0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2019 FY2020 Notes: 1. Quarterly distributions commenced during the financial year ended 30 September 2014. 2. DPUs subsequent to the issuance of 380,000,000 new placement units on 16 December 2016 are based on the enlarged number of units in issue. 7 FIRST QUARTER FINANCIAL PERFORMANCES TOTALrevenue NETproperty income RM (million) RM (million) 150 6.0% 80 11.4% 120.5 120.7 113.9 62.7 102.6 102.3 60 56.3 97.4 101.1 55.1 100 48.3 47.5 47.5 44.2 40 26.1 50 23.3 28.1 28.1 20 7.8 7.5 8.2 8.0 0 0 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 8 QUARTERLY FINANCIAL PERFORMANCES FY2018 FY2019 FY2020 TOTALrevenue NETproperty income RM (million) RM (million) 150 150 6.0% 134.7 132.5 129.2 125.9 118.7 120.7 116.6 113.9 100 100 11.4% 67.7 69.3 67.9 67.4 60.3 62.7 58.1 56.3 50 50 0 0 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 9 QUARTERLY FINANCIAL PERFORMANCES BY COUNTRY 1Q FY2019 1Q FY2020 TOTALrevenue NETproperty income RM (million) RM (million) 100 100 3.2% 78.5 76.0 50 50 4.3% 4.3% 33.6 35.1 31.9 33.2 9.4% 23.4 21.4 69.8% 101.1% 7.2 6.1 4.2 3.0 0 0 Malaysia Australia Japan Malaysia Australia Japan 10 NPI FOR AUSTRALIA IN AUD AND RM NPI in RM impacted by the foreign exchange effects of the weaker AUD relative to RM AUD (million) RM (million) 15.0% 12 9.4% 40 6 20 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 11 NPI FOR JAPAN IN JPY AND RM NPI in RM impacted by the foreign exchange effects of the stronger JPY relative to RM JPY (million) RM (million) 90.0% 101.1% 180 8 6 120 4 60 2 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 12 UNIT PRICE PERFORMANCE YTL Hospitality REIT’s YTL Hospitality REIT’s Unit Price Movement & Relative Performance to FBMKLCI Unit Price Movement & Relative Performance to REIT Index (1 January 2012 to 30 September 2019) (1 October 2017 to 30 September 2019) RM % RM % 1.40 50 1.40 20 Unit Price Unit Price (left scale) (left scale) 25 1.30 15 1.20 Outperform FBMKLCI 0 1.20 10 Underperform Outperform 1.00 FBMKLCI REIT Index Relative Performance -25 1.10 5 (right scale) Relative Performance (right scale) 0.80 -50 1.00 0 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Jul-14 Jul-15 Jul-12 Jul-13 Jul-16 Jul-17 Jul-18 Jul-19 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 TRADING STATISTIC Closing price (1) RM1.34 Market Cap (RM) (1) RM2,284 mil Units issued (1) 1,704,388,889 Notes: Average daily traded volume for (1) As at 30 September 2019. 1Q FY2020 (‘000 units) (2) 915.3 (2) For the quarter ended 30 September 2019. Source: Bloomberg 13 2 Capital management Tanjong Jara Resort, Terengganu, Malaysia DEBT^ MATURITY PROFILE Borrowings in AUD Borrowings in RM Borrowings in JPY RM (million) * 1,000 969.9 800 600 385.0 400 350.0 # 209.5 200 75.0 0 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Notes: ^ Excluding the effects of capitalised transaction costs. * RM equivalent based on the exchange rate of A$1.00: RM2.8294 as at 30 September 2019. # RM equivalent based on the exchange rate of JPY100: RM3.8788 as at 30 September 2019. 15 DEBT^ PROFILE AS AT 30 SEPTEMBER 2019 CURRENCY INTEREST RATE α β 30 September 2019 30 June 2019 Change Borrowings^ (RM'000) 1,989,408 2,012,966 (1.2%) Total Asset Value (RM'000) 4,809,324 4,864,777 (1.1%) Gearing (%) 41.4% 41.4% (0.0 pp) Average Interest Rates (%) * - Borrowings in Ringgit Malaysia 5.0% 5.0% 0.0 pp - Borrowings in Australian Dollar @ 4.5% 4.5% 0.0 pp - Borrowings in Japanese Yen 0.8% 0.8% 0.0 pp Interest Cover * # 2.8 x 2.8 x 0.0 x Notes: * For the respective Quarter. ^ Excluding the effects of capitalised transaction costs. # Computed as NPI / Finance Cost @ The interest rate is hedged and fixed at the effective rate of 4.68% with effect from 29 December 2017. α 48.8% denominated in AUD and 21.3% denominated in RM. β 10.5% denominated in JPY and 19.4% denominated in RM. 16 DEBT HEADROOM OF ~RM824 million FOR ACQUISITIONS RM (million) 6,000 5,633 824 5,000 4,000 3,000 2,813 Gearing limit = 824 4,809 50%* 2,000 1,000 1,989 Gearing = 41.4% (As at 30 September 2019) - Notes: Total Borrowings^ Total Assets ^ Excluding the effects of capitalised transaction costs.