Done by: Kevin Yee Disclaimer Please note that the information is - PowerPoint PPT Presentation

Done by: Kevin Yee

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Contents Company Background 1 Market Review & Growth Drivers 2 Debt Analysis 3 Valuation Model 4 Peer Comparison 5 6 Summary

Company Background  CDLHT is one of Asia’s leading hospitality trusts with a current asset size of $2.1b  It owns 13 hotels in Singapore, Australia, New Zealand, Maldives as well as a shopping centre in Singapore (Orchard Hotel Shopping Arcade)  Aside from the Maldivian assets, all other hotels are well located within key gateway cities  CDLHT is a stapled group comprising of CDL H-REIT & CDL-HBT Source: Company Report

H-REITS  Total portfolio size of SGD2b  On Jan 2013, H-REITS successfully acquired a 113 villa Angsana Velavaru in the Maldives for USD 71m  Strategy is to invest in a diversified portfolio of income- generating real estate with is primary used for hospitality or hospitality related purposes  Strategy to diversify by geography and asset profile Source: Company Report

H-REITS Source: Company Report

HBT  HBT is currently dormant  HBT will become active if any of the following occurs:  It is appointed by H-REIT  Hotels acquired by H-REIT with no suitable master lessees will be leased to HBT  H-REIT undertakes certain projects which may not be suitable for its strategy Source: Company Report

Company Background Source: Company Report

Company Background Top Ten Tenants Source: Company Report

Market Review Source: Company Report

Market Review Source: Company Report

Growth Driver Source: Company Report

Growth Driver Source: Company Report

Debt Analysis Source: Company Report

Risk Factors  Foreign exchange risk  Political risk  A downturn in regional economies  Lower-than-forecast room rates and occupancy rates  The possibility that future acquisitions may provide lower-than-expected returns

Trading Data 52 week range $1.71 - $2.13 Market Capitalization $1.98 B Share Outstanding 970 M Average Daily Volume (3 mth) 2.19 M Source: Reuters

Valuation  Use Dividend Discount Model (DDM)

Valuation – Financial Forecast Fiscal Period (‘000) FY2011 FY2012 FY2013E FY2014E FY2015E 141,107 149,535 173.461 187,337 202,324 Gross Revenue Net property income 135,191 139,293 161,580 174,506 188,467 Income available for distribution 176,289 122,167 173,774 183,298 186,577 DPU (cents) 18.3 12.61 17.94 18.92 19.26 Dividend Yield % (at $2.08) 8.93 6.15 8.62 9.10 9.26

Valuation Calculation Long Term Growth Rate 3.0% Risk Free Rate 2.5% Beta 1.5 Equity Risk Premium 7.5% Cost of Equity 13.75% RFR + Beta * ERP (Cents) FY13F FY14F FY15F Terminal Dividend 0.179 0.189 0.192 1.845 FY15F DPS NPV $1.69 (r-g) (Fair Value) = 0.192(1.03) 7.5% - 3.0%

Peer Comparison NAV Dividend Name Price (M) Yield (%) Gearing (%) Asset Type CDL H trust 2.05 1.61 5.48 24.9 Hotel Ascendas HT 1.02 0.78 6.94 35.8 Hotel First REIT 1.28 0.83 5.16 27.1 Hospital + Hotel Hotel + Serviced Far East H Trust 1.15 0.97 5.27 29.2 Apts Office + Retal + CapitaComm 1.64 1.62 4.99 30.1 Hotel Source: reitdata.com

Future Direction  Maximize the operating performance of existing assets and explore asset enhancement opportunities  Continue to source for acquisition opportunities in the next 12 months