Post on 10-Jul-2020
OUE Commercial REITSGX-RHB Corporate Day
9 October 2019
Important Notice
This presentation should be read in conjunction with the announcements released by OUE Commercial Real Estate Investment Trust (“OUE C-REIT”) on 7 August
2019 (in relation to its Financial Results for 2nd Quarter 2019).
This presentation is for information purposes only and does not constitute an invitation, offer or solicitation of any offer to acquire, purchase or subscribe for units in
OUE C-REIT (“Units”). The value of Units and the income derived from them, if any, may fall or rise. The Units are not obligations of, deposits in, or guaranteed by,
OUE Commercial REIT Management Pte. Ltd. (the “Manager”), DBS Trustee Limited (as trustee of OUE C-REIT) or any of their respective affiliates. An investment in
the Units is subject to investment risks, including the possible loss of the principal amount invested. The past performance of OUE C-REIT is not necessarily indicative
of the future performance of OUE C-REIT.
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. These forward-looking statements speak only as
at the date of this presentation. Past performance is not necessarily indicative of future performance. No assurance can be given that future events will occur, that
projections will be achieved, or that assumptions are correct. 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 costs), property expenses and governmental and public policy changes. You are
cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager’s current view of future events.
Investors should note that they will have no right to request the Manager to redeem or purchase their Units for so long as the Units are listed on the Singapore
Exchange Securities Trading Limited (the “SGX-ST”). It is intended that holders of Units (“Unitholders”) may only deal in their Units through trading on the SGX-ST.
The listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.
The information and opinions contained in this presentation are subject to change without notice.
2
▪ Overview
▪ Merger with OUE Hospitality Trust
▪ Financial Highlights
▪ Portfolio Highlights
▪ Appendices
Agenda
3
Overview
Overview of OUE C-REIT
(1) As at 30 September 2019
OUE Bayfront One Raffles Place OUE Downtown Office Lippo Plaza Mandarin Orchard Singapore Crowne Plaza Changi Airport Mandarin Gallery
Successfully completed merger with OUE Hospitality Trust and effective from 4 September 2019
1.9million sq ftPrime office space
306,000 sq ftPrime retail space along
Orchard Road and core CBD
High quality prime assets
3 Asset classes
7
1,640 rooms
Upscale Hotels
Market Capitalisation
S$2.9 billion(1)
Total assets
S$6.9billion7High quality prime assets
6 properties in Singapore and 1 property in Shanghai
Asset classes3
(1) Committed Occupancy as at 30 June 2019
(2) As at 31 December 2018
(3) Based on OUB Centre Limited’s 81.54% interest in One Raffles Place. C-REIT has an indirect 83.33% interest in OUB Centre Limited held via its wholly-owned subsidiaries
(4) Based on SGD:CNY exchange rate of 1:57918 as at 30 June 2019
Premium Portfolio of Assets
OUE Bayfront One Raffles PlaceOUE Downtown
OfficeMandarin Gallery Lippo Plaza
Mandarin Orchard
Singapore
Crowne Plaza
Changi AirportTotal
Description Premium Grade A office
building located at
Collyer Quay between
the Marina Bay
downtown and Raffles
Place
Comprises two Grade A
office towers and a retail
mall located in
Singapore’s central
business district at
Raffles Place
Grade A office
space, a mixed-used
development with
offices, retail and
serviced residences
at Shenton Way
Prime retail landmark
on Orchard Road –
preferred location for
flagship stores of
international brands
Grade A commercial
building located in
Huangpu, one of
Shanghai’s
established core
CBD locations
A world class
hospitality icon in
Singapore since
1971, MOS is the
largest hotel along
Orchard Road
Located at Singapore
Changi Airport and
close to Changi
Business Park
NLA:
Office: 1,884,968
Retail: 306,508
Overall: 2,191,476
1,640 hotel roomsNLA (sq ft) Office: 379,951
Retail: 19,699
Office: 614,006
Retail: 99,323
Office: 530,002 Retail : 126,283 Office: 361,009
Retail: 61,203
1,077 hotel rooms 563 hotel rooms
Occupancy(1) Office: 99.3%
Retail: 100.0%
Overall: 99.4%
Office: 94.5%
Retail: 97.8%
Overall: 95.1%
Office: 93.2% Retail: 99.5% Office: 89.2%
Retail: 98.7%
Overall: 90.6%
- - Office: 94.1%
Retail: 98.3%
Overall: 94.5%
Leasehold
Tenure
OUE Bayfront & OUE
Tower:
99-yrs from 12 Nov 2007
OUE Link:
15-yrs from 26 Mar 2010
Underpass:
99-yrs from 7 Jan 2002
Office T1:
841-yrs from 1 Nov
1985
Office T2:
99-yrs from 26 May
1983
75% of Retail:
99-yrs from 1 Nov 1985
99-yrs from 19 July
1967
99-yrs from 1 July
1957
50-yrs from 2 July
1994
74-yrs from 1 July
2009
99-yrs from 1 July
1957
-
Valuation(2) S$1,173.1m
(S$2,935 psf)
S$1,813.5m(3) (S$2,542
psf)
S$920.0m
(S$1,736 psf)
S$494.0m
(S$3,912 psf)
RMB2,950.0m /
RMB50,409 psm
S$580.9m(4)
(S$1,376 psf)
S$1,227.0m (S$1.1m
/ key)
S$497.0m
(S$0.9m / key)
S$6,705.5m
6
One Raffles Place27%
Mandarin Orchard Singapore
18%
OUE Bayfront18%
OUE Downtown Office14%
Lippo Plaza9%
Crowne Plaza Changi Airport
7%
Mandarin Gallery7%
Commercial(Office/Retail)
74%
Hospitality
26%
Reduced concentration risk associated with exposure to any single real estate asset class
By asset(1) By sector(1)
No single asset represents >27% of total portfolio
Well-Diversified Portfolio
7
(1) Based on valuations as at 31 December 2018
FY2014
FY2015 FY2016 FY2017
FY2018
2019(1)
S$1.6b
AUM
S$3.4b
AUM
S$3.4b
AUM
S$3.5b
AUM
S$4.5b
AUM
S$6.9b
AUM
Milestones Since Listing
Listed on SGX-ST
with two assets –
OUE Bayfront and
Lippo Plaza
Maiden
acquisition
of One
Raffles
Place
(67.95%
effective
interest)
Established S$1.5
billion Multi-Currency
Debt Issuance
Programme
Completed
AEI to
upgrade
common
areas and
restrooms
at Lippo
Plaza
office tower
Debut
issuance of
S$150 million
3.03% fixed
rate notes
due 2020
Completed
acquisition
of OUE
Downtown
Office
Commenced AEI at
One Raffles Place
Shopping Mall with
co-working operator
Spaces anchoring
the AEI
Successful merger
by way of a trust scheme
of arrangement (effective
from 4 Sep 2019)
(1) As at 4 September 2019
▪ Strategic growth track with 2 acquisitions and 2 asset enhancement initiatives
▪ Transformative merger with OUE Hospitality Trust creates one of the largest diversified S-REITs
Merger with
OUE Hospitality Trust
0.6
3.1
Pre merger Post merger
5.1x
(4)
Increased Market Capitalisation and Improved
Trading Liquidity
10
1.4
2.9
Pre mergerAs at
28 Jun 19
Post mergerAs at
30 Sep 19(1)
Increase in Market Capitalisation
(S$ billion)
(S$ million)
Increase in Trading Liquidity (ADTV(2))
Source: Bloomberg. Chart on right only includes REITs with primary listing on the SGX-ST which have a market capitalisation of at least S$1.2 billion as at 30 September 2019
(1) Last trading day of the quarter ended 30 June 2019
(2) ADTV refers to average daily trading value
(3)
2.0x
(3) For the year-to-date period ending 8 September 2019, the day immediately before the new OUE C-REIT units issued pursuant to the merger were listed
(4) For the period from 9 September 2019, the first day of listing of the new OUE C-REIT units issued pursuant to the merger, to 30 September 2019
(4)
9.7
9.7
8.0
6.6
5.9
5.3
5.3
4.3
4.2
3.1
2.9
2.9
2.8
2.8
2.6
2.0
1.9
1.9
1.8
1.8
1.8
1.6
1.5
1.4
1.3
AR
EIT
CM
T
CC
T
MC
T
ML
T
MIN
T
SU
N
KR
EIT
MN
AC
T
FC
T
OU
E C
-RE
IT
AR
T
KD
C
SP
H
FLT
CD
RE
IT
Cro
mw
ell
PR
EIT
CR
CT
Ma
nulif
e
ES
R-R
EIT
SG
RE
IT
FC
OT
FH
T
FE
HT
Market Capitalisation (as at 30 Sep)
(S$ billion)
3M ADTV
(S$ million)34 25 26 22 17 13 18 8 15 8 3 6 13 1 9 4 2 1 4 2 4 2 4 0.7 2
58%
20%
22%
Enhanced Portfolio Diversification And
Stronger Balance Sheet
11
Increased income resilience from portfolio diversification
Hotel master lease agreements
RevenueContribution
Minimum rent of
S$67.5 millionper annum(1)
(2)
(2)
(2)
612
414
1,026
C-REIT post merger
(S$ million)
Equity capacity(3) Debt capacity(4)
Ability to raise up to
S$612 million via
equity fundraising
Ability to raise up to
S$414 million new
debt while
maintaining pro
forma aggregate
leverage
OUE C-REIT FY2018 Revenue
OUE H-Trust FY2018 Revenue
(1) Mandarin Orchard Singapore and Crowne Plaza Changi Airport’s master lease agreements are subject to a minimum rent of $45.0 m illion and S$22.5 million per annum respectively, totaling S$67.5 million
(2) Based on OUE C-REIT and OUE H-Trust FY2018 revenue
(3) Assuming that the general issue mandate is approved by unitholders of OUE C-REIT at an annual general meeting of OUE C-REIT following the merger, based on the enlarged number of OUE C-REIT units in issue of approximately 5,370 million OUE
C-REIT Units and illustrative issue price of S$0.57 per OUE C-REIT unit
(4) Assuming OUE C-REIT raises S$414 million of new debt while maintaining a pro forma aggregate leverage of approximately 40.3% per paragraph 8.1.4 of the circular dated 10 July 2019, following the S$612 million equity fundraising as described in
note (3) above
The rental payment under the hotel master lease agreements comprises:
− Minimum rent component – provides downside protection
− Variable rent component – upside potential
Larger capital base
Ability to undertake larger transactions and asset enhancement initiatives
Provide more flexibility for OUE C-REIT to react with greater speed
Enlarged balance sheet
Attractive Singapore commercial and hospitality
sector fundamentals
◼ Overall Singapore office market outlook toremain positive due to high occupancy amidlimited near-term supply in the core CBDmarket
Sources: CBRE Q2 2019, Colliers International Research Singapore, Cushman & Wakefield, Singapore Tourism Board
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
10.5
11.0
CBD
Raffles Place / New Downtown
Shenton Way / Tanjong Pagar
(Gross rents | S$ psf per month)
◼ Prime retail rents in Orchard are expected to stayresilient on the back of growing tourism arrivals andlimited prime retail space
◼ Potential for upward trading performance driven bylimited hotel room supply coupled with upcomingSingapore tourism developments and initiatives
2015 2016 2017 2018
12
66,99469,092 69,585 70,070
-1,4502,098 493 485
2018 2019F 2020F 2021F
Total No. of Rooms YoY growth
$10
$15
$20
$25
$30
$35
$40
Q1 2
014
Q2 2
014
Q3 2
014
Q4 2
014
Q1 2
015
Q2 2
015
Q3 2
015
Q4 2
015
Q1 2
016
Q2 2
016
Q3 2
016
Q4 2
016
Q1 2
017
Q2 2
017
Q3 2
017
Q4 2
017
Q1 2
018
Q2 2
018
Q3 2
018
Q4 2
018
Q1 2
019
Q2 2
019
Orchard Road City Hall/Marina Centre
Other City/City Fringe Suburban
(Rents | S$ psf per month)
Office: Positive outlook for reversions Retail: Resilient prime Orchard Road rentsHospitality: Limited supply to drive trading performance
Financial
Highlights
2Q 2019 Financial Highlights
14(1) OUE C-REIT’s annualised distribution yield based on 1H 2019 distribution per unit of 1.68 cents and unit closing price of S$0.54 as at 30 September 2019
▪ Although Singapore’s CBD Grade A office rental growth has moderated, continued leasing
momentum led to higher rents being achieved in 2Q 2019 while maintaining stable occupancy
▪ Positive rental reversions across Singapore portfolio
S$40.8 million
20.1% YoY
S$51.9 million
20.5% YoY
Revenue Net Property Income
S$22.5 million
36.6% YoY
Amount Available for
Distribution
Driven by contribution from OUE Downtown Office which was acquired in November 2018
Portfolio & Financial Management
1Q 2019: 39.4%6.3%
Aggregate Leverage
39.3% (1)
Annualised
Yield
94.5%0.5 ppt QoQ
Portfolio
Committed Occupancy
Change2Q 2019
2Q 2019 vs 2Q 2018
15
• Net property income of S$40.8 million in 2Q 2019 increased 20.1% YoY due primarily to the contribution
from OUE Downtown Office which was acquired in November 2018
• The drawdown of OUE Downtown Office’s rental support, partially offset by higher interest expenses in 2Q
2019 as a result of higher borrowings, resulted in amount available for distribution of S$22.5 million, 36.6%
higher YoY
(1) For the purpose of comparison, 2Q 2018 DPU has been restated to include the 1,288,438,981 new Units issued on 30 October 2018 pursuant to the rights issue (the “Rights Issue”)
Revenue (S$ m)
Net Property Income (S$ m)
Amount Available for Distribution
to Unitholders (S$ m)
DPU (cents) (actual)
DPU (cents) (restated)
51.9
40.8
22.5
0.78
-
20.5%
20.1%
36.6%
-26.4%
34.5%
2Q 2018
43.1
33.9
16.5
1.06
0.58(1)
Change1H 2019
1H 2019 vs 1H 2018
16
• Net property income of S$84.3 million in 1H 2019 was 21.8% higher YoY due primarily to contribution from
OUE Downtown Office which was acquired in November 2018
• The drawdown of OUE Downtown Office’s rental support, partially offset by higher interest expenses in 1H
2019 as a result of higher borrowings, resulted in amount available for distribution of S$48.6 million, 43.2%
higher YoY
(1) For the purpose of comparison, 1H 2018 DPU has been restated to include the 1,288,438,981 new Units issued on 30 October 2018 pursuant to the Rights Issue
Revenue (S$ m)
Net Property Income (S$ m)
Amount Available for Distribution
to Unitholders (S$ m)
DPU (cents) (actual)
DPU (cents) (restated)
107.2
84.3
48.6
1.68
-
23.0%
21.8%
43.2%
-22.9%
41.2%
1H 2018
87.2
69.2
33.9
2.18
1.19(1)
▪ Aggregate leverage ratio as at 30 June 2019 was stable at 39.3%, with weighted average cost of debt of 3.5% per
annum
▪ With 76.1% of debt on fixed rate basis, earnings are mitigated against interest rate fluctuations
▪ Every 25bps increase in floating interest rates is expected to reduce distribution by S$1.0 million per annum, or 0.03
cents in DPU
As at 30 Jun 2019 As at 31 Mar 2019
Aggregate Leverage 39.3% 39.4%
Total debt S$1,677m(1) S$1,685m(2)
Weighted average cost of debt 3.5% p.a. 3.5% p.a.
Average term of debt 3.0 years 3.3 years
% fixed rate debt 76.1% 71.6%
% unsecured debt 62.7% 62.2%
Average term of fixed rate debt 2.2 years 2.1 years
Interest cover ratio 3.1x 3.3x
Capital Management
17
(1) Based on SGD:CNY exchange rate of 1:5.079 as at 30 June 2019 and includes OUE C-REIT’s share of OUB Centre Limited’s loan
(2) Based on SGD:CNY exchange rate of 1:4.958 as at 31 March 2019 and includes OUE C-REIT’s share of OUB Centre Limited’s loan
Debt Maturity Profile as at 30 June 2019
Portfolio
Highlights
Resilient and Stable Portfolio
(1) Proforma committed occupancy as at 30 September 2013 as disclosed in OUE C-REIT’s Prospectus dated 17 January 2014
▪ Lippo Plaza’s overall committed occupancy improved to 90.6% with the leasing of the vacant retail space
during the quarter, resulting in a higher committed retail occupancy of 98.7%
▪ OUE Bayfront’s overall committed occupancy increased to 99.4% with the improvement in committed office
occupancy and leasing up of retail space which is now fully occupied
Portfolio Committed Occupancy
19
Healthy Office Occupancy
Source: CBRE, Colliers Shanghai
Singapore
Shanghai
20
Committed Office Rents In Line Or Above Market
2Q 2019Average Expired
RentsCommitted Rents(1) Sub-market
Comparable Sub-market Rents
Colliers(2) Savills(3)
Singapore
OUE Bayfront S$13.75 S$11.50 – S$14.75New Downtown/ Marina
BayS$11.96 S$13.01
One Raffles
PlaceS$9.46 S$9.20 – S$11.40 Raffles Place S$10.41 S$10.22
OUE
DowntownS$7.07 S$8.00 – S$9.20
Shenton Way/
Tanjong PagarS$10.03 S$8.87 – S$9.21
Shanghai
Lippo Plaza RMB10.15 RMB8.35 – RMB11.20 Puxi RMB9.54 RMB10.26
▪ Renewal rents in 2Q 2019 for the Singapore properties continued to be higher than preceding rents, as
market rental growth continued to be positive
(1) Committed rents for renewals and new leases
(2) Source: Colliers Singapore Office Quarterly 2Q 2019 for Singapore comparable sub-market rents; Colliers Shanghai Office Property Market Overview 2Q 2019 for Shanghai comparable sub-market
rents
(3) Source: Savills Singapore Office Briefing 1Q 2019 for Singapore comparable sub-market rents; Savills Shanghai Grade A Office Market Update 2Q 2019 for Shanghai comparable sub-market rents
Note: For reference, CBRE Research’s 2Q 2019 Grade A Singapore office rent is S$11.30 psf/mth. Sub-market rents are not published21
Average Passing Office Rents
(1) Proforma average passing rents as at 30 September 2013 as disclosed in OUE C-REIT’s Prospectus dated 17 January 2014
Shanghai
Singapore
▪ Average passing office rent for
Singapore properties improved
in 2Q 2019, due to positive
rental reversions in the previous
quarters
▪ Average passing office rent at
Lippo Plaza was RMB9.86
psm/day as of June 2019
22
WALE(1) of 2.2 years by NLA(2) and 2.4 years by Gross Rental Income
Lease Expiry Profile
- Portfolio
(1) “WALE” refers to the weighted average lease term to expiry
(2) “NLA” refers to net lettable area
As at 30 Jun 2019
7.6% of OUE C-REIT’s portfolio gross rental income is due for renewal for the balance of 2019
23
WALE of 2.6 years by NLA and 2.7 years by Gross Rental Income
Lease Expiry Profile
- OUE Bayfront
Well-positioned to benefit from a rising Singapore office market, with 24.3% of OUE Bayfront’s
gross rental income due for renewal in 2019 and 2020
As at 30 Jun 2019
24
WALE of 2.3 years by NLA and by Gross Rental Income
Lease Expiry Profile
- One Raffles Place
As at 30 Jun 2019
Approximately 34.7% of gross rental income due for renewal in 2019 and 2020, with expiring
rents below current market rents
25
WALE of 1.8 years by NLA and by 1.9 years by Gross Rental Income
Lease Expiry Profile
- OUE Downtown Office
As at 30 Jun 2019
Rental revenue for OUE Downtown Office enjoys downside protection from income support
arrangement
26
WALE of 2.6 years by NLA and 3.3 years by Gross Rental Income
Lease Expiry Profile
- Lippo Plaza
As at 30 Jun 2019
WALE increased to 3.3 years from 3.1 years a quarter ago, due to the long-term lease
commitment of a new retail tenant
27
Well-Diversified Portfolio Tenant Base
As at Jun 2019
28
Appendices • Singapore Office Market
• Shanghai Office Market
• Singapore Hospitality Market
Overview of Singapore Office Sector
✓Singapore’s CBD
– Comprises traditional areas of Raffles Place, Robinson Road/Cecil Street, Shenton Way/Tanjong Pagar as well as Marina Bay
– Many established global financial institutions and headquarters of MNCs are located in Marina Bay and Raffles Place, while Robinson Road/Cecil
Street and Shenton Way/Tanjong Pagar are popular with professional services companies and other financial, insurance and real estate companies
✓Historical supply-demand conditions
– Annual average island-wide demand for office space from 2008 – 2017 was about 1.1 million sq ft, compared to annual average supply of 1.4 million
sq ft over the same period. For 2018, island-wide net absorption was 1.6 million sq ft, compared to net new supply of 1.5 million sq ft.
(million sq ft)
Breakdown of Office Stock(1)
Source: CBRE(1) CBRE Research Report, 2Q 2019
Raffles
Place
Marina Bay
Shenton Way/
Tanjong Pagar
30
Singapore CBD
Singapore Office Market
Source: CBRE
▪ Core CBD Grade A office occupancy rose 0.9 ppt QoQ to 96.1% as at 2Q 2019, on the back of positive
islandwide net absorption of 508,443 sq ft due mainly to the completion of an office building in the CBD fringe
▪ With slowing leasing momentum due to the uncertain economic outlook, Grade A CBD core office rental growth
moderated to 1.3% QoQ in 2Q 2019, to S$11.30 psf per month
31
Singapore Office
Demand and Supply vs Office Rental
Source: URA statistics, CBRE Research
2Q 2011 was the last period where CBRE provided Prime office Rental data. Prime Grade A office rental data not available prior to 1Q 2002
Island-wide Office Demand, Supply and Office Rents
32
Singapore Office
Known Supply Pipeline
Note: Excluding strata-titled officeSource: CBRE Research and respective media reports
33
Benign office supply outlook for the Singapore core CBD over next 2 years
Office Supply Pipeline in Singapore (CBD and Fringe of CBD)
34
✓Puxi, the traditional business and commercial hub of Shanghai
– Key office and commercial districts within Puxi are concentrated in the Jing’an, Huangpu and Xuhui areas, which together form the traditional downtown
CBD of Shanghai
– Puxi draws international retailers, service providers and MNC headquarters operations due to its good connectivity and excellent amenities, while Pudong’s
Lujiazui caters to financial institutions due to policy and incentive-driven agglomeration
✓Historical supply-demand conditions
– The six main districts that make up Shanghai core CBD provide Grade A office stock of about 7.57 million sq m as at 2Q 2019
– Average net demand for Shanghai CBD Grade A office from 2014 – 2018 was 426,000 sq m, compared to average net supply of 497,000 sq m over the
same period. In 2018, net absorption was 635,000 sq m, 6.0% increase YoY. Net supply in 2018 was 408,000 sq m, significantly lower than in 2017
Overview of Shanghai Office Sector
(1) Colliers International Research, 2Q 2019
Key Districts of Shanghai CBD Breakdown of CBD Grade A Office Stock(1)
(million sq m)
Shanghai Office Market
Source: Colliers International
▪ Shanghai CBD Grade A office occupancy
edged up 0.8 ppt QoQ to 88.4% as at 2Q
2019, with rents easing 0.5% QoQ to
RMB10.27 psm/day. Puxi Grade A office
occupancy was 91.9% as at 2Q 2019, up 2.2
ppt QoQ, with rents at RMB9.54 psm/day
▪ With a significant amount of new office
supply scheduled to enter the Shanghai
market in 2019, coupled with softer demand
from a slower economy, rental growth is
expected to be subdued in the near-term
Shanghai
Puxi
35
Shanghai CBD
Demand, Supply and Vacancy
Source: Colliers International
36
Source: Colliers International Shanghai, 2Q 2019
Office Supply Pipeline in Shanghai CBD
▪ Shanghai CBD Grade A office supply expected to
abate in the longer term
Grade A Net Absorption, New Supply and Vacancy Rate
7.6
6.1
8.38.9
9.810.3 10.1
9.7
11.6
13.2
14.4
15.615.1 15.2
16.4
17.4
18.5
12.9
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F
Visitor Arrivals YTD Aug 2019
Sep 11 and SARS Sub-Prime
(1) Singapore Tourism Board, International Visitor Arrivals
(2) Singapore Tourism Board, International Visitor Arrivals Statistics, 9 October 2019
(3) Singapore Tourism Board, Third Consecutive Year of Growth for Singapore Tourism Sector in 2018, 13 February 2019
18.7 –
19.2
Singapore Tourism Board Forecasts Up to 4%
Growth in Visitor Arrivals For 2019
▪ Visitor arrivals grew 1.9% YoY to 12.9 million in Jan-Aug 2019(2) and visitor days
rose 3.2% YoY
▪ For 2019, visitor arrivals are forecast to grow by up to 4% to 19.2 million(3)
37
Historical and Forecast Visitor Arrivals in Singapore (million)(1) YTD Aug 2019 Top 10 Visitor Arrivals (By Country)
YTD Aug 2019 Top 10 Visitor Arrivals (By Country)
China27%
Indonesia21%
India10%
Malaysia8%
Australia8%
Japan6%
Philippines6%
USA5%
South Korea5%
Vietnam4%
-2.0%
-2.0%
-0.5%
-0.4%
0.1%
0.7%
5.1%
5.9%
7.3%
12.2%
India
Vietnam
Indonesia
Malaysia
South Korea
Australia
China
Philippines
Japan
USA
Information & Image Sources: Websites of Changi Airport Group, Mandai Project, Sentosa Development Corporation, Singapore Tourism Board, Women’s Tennis Association, International Rugby Board, F1, International Champions Cup Singapore, Las Vegas Sands, Resorts World
Sentosa, Singapore Art Week, Singapore Food Festival, Ultra Singapore and The World’s 50 Best Restaurants.
Rejuvenation and Expansion of Mandai
Precinct (~2020)
Sentosa Redevelopment (~2030)
Merlion Gateway (2021 )
Greater Southern Waterfront (~2027):
housing, commercial and
entertainment uses
✓ Integration of Terminal 1’s expansion with Jewel will see increased capacity at Changi Airport
✓ Passenger traffic at Changi Airport grew 5.5% y-o-y to 65.6 million in 20181
✓ Terminal 2 to commence expansion and upgrading of facilities in end-20192
✓ Opening of Terminal 5 by ~2030 will increase capacity to 150 million passengers per annum3
(1) Changi Airport Group, Changi Airport Crosses 65 Million Passenger Mark In 2018, 29 January 2019.
(2) The Straits Times, Renovations to Expand Terminal 2 Start Later This Year, 1 July 2019.
(3) Changi Airport Group, Annual Report 2017/18.
Expansion of Marina Bay Sands to include a 15,000-seat arena, a luxury
hotel tower and additional MICE space
Resorts World Sentosa’s expansion
includes new attractions, hotels and
lifestyle offerings
Rejuvenation of Orchard Road
Jurong Lake District
developmental project
(~2026)
✓ Greater Flight Connectivity New and increased flights to key markets of China, India, Japan and USA
✓ Partnerships to drive visitor arrivals and spendingSTB signed three-year partnership with Alibaba to attract Chinese visitors and a memorandum of cooperation with Traveloka to promote Singapore as a preferred destination from five major Southeast Asian markets
✓ Singapore is Qantas' largest hub outside Australia, following a S$5 million partnership between Qantas, STB and Changi Airport; and the opening of Qantas new First Lounge at Changi Airport end-2019Source: Singapore Tourism Board and Singapore Airlines Media Releases
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Upcoming Attractions and Developments Tourism Investment
Strong Leisure and Events Calendar
Enhanced Aviation Facilities at Changi Airport
Singapore – Investment in Tourism
Thank You