1H2007 Results. Highlights

Transcription

1 1H2007 Results 24 July 2007 Highlights Financial Performance Operations Review Market Outlook Going Forward 2 1

2 Financial Performance 3 Financial Performance 1H07 $m 1H07 1H06 % Chg Turnover EBITDA Operating Profit Pre-tax Profit PATMI

3 Financial Performance 2Q07 $m 2Q07 2Q06 % Chg Comments Turnover Higher due to strong performance of Singapore and overseas trading projects EBITDA Operating Profit (19.9) (20.6) Lower due to one-off profit from sale of a property subsidiary in Tianjin by Evergro Properties in 2Q06 Pre-tax Profit Higher due largely to contributions from Reflections at Keppel Bay and higher profits from other current trading projects PATMI Key Ratios $m 1H07 1H06 % Chg EPS ( ) NTA / Share ($) Net Debt / Equity Ratio Annualised ROE (%)

4 Net Profit By Business Segment Business Segment 1H07 $m 1H06 $m % Chg Comments Trading Higher due to maiden profits from Marina Bay Residences, Reflections at Keppel Bay, The Sixth Avenue Residences, and higher contribution from The Seasons in China Investment Higher due largely to higher contributions from associated companies Hotels / Resorts (0.8) (2.4) nm Lower losses due to improvement in hotels and resorts business Others (6.4) 4.0 nm Losses due to a revaluation loss for the Group s interest rate hedging instruments for 1H07 compared with a gain for 1H06 PATMI Net Profit By Geographical Location Geographical Location $m 1H07 % $m 1H06 % % Chg Comments Singapore Higher due to strong contributions from Marina Bay Residences, The Sixth Avenue Residences and Reflections at Keppel Bay Other Countries (9.9) Lower due to one-off profit from sale of a property subsidiary in Tianjin by Evergro Properties in 2Q06 PATMI

5 Notes on Profit Recognition Project Singapore Marina Bay Residences (428 units) Park Infina at Wee Nam (486 units) Urbana (126 units) Reflections at Keppel Bay (1,129 units) Overseas % of Sales * % of Completion * Profit Recognised in 1H07 ($m) 29.8 ^ ^ The Seasons, Beijing, China (1,859 units) Ph 1 (990 units) Ph 2 (869 units) Villa Riviera, Shanghai, China (168 units) * Recognition as of 30 Jun 07 ^ 20% of estimated profit has been recognised Operations Review 10 5

6 Singapore Residential Robust Singapore Sales Sold about 600 units in 1H07 Launched Reflections at Keppel Bay 1,129 units 97% of 493 launched units sold Good Sales in Park Infinia at Wee Nam 486 units 89% sold Reflections at Keppel Bay 11 Info updated as of 24 Jul 07 Singapore Residential Sold Out Five Projects The Suites at Central (157 units) Urbana (126 units) Freesia Woods (129 units) The Linc (51 units) The Elysia (40 units) The Suites at Central 12 Urbana Freesia Woods The Linc The Elysia 6

7 Singapore Commercial MBFC Ph 2 to Ride on Strong Market MBFC Total GFA : 438,000 sm Ph 2 Residential Ph 2 Office & Retail Ph 1 Office & Retail Ph 1 Residential Ph 1 : 244,000 sm Office & Retail : 189,000 sm Residential : 55,000 sm 13 MBFC Ph 2 MBFC Ph 1 Ph 2 : 194,000 sm Office & Retail : 150,000 sm Residential : 44,000 sm Exercised option for Marina Bay Financial Centre (MBFC) Ph 2 Land price : $907.7m or $435 psf ppr Office & Retail : 1.6m sf GFA Residential : About 250 units MBFC Ph 1 : About 40% pre-committed by Standard Chartered Bank and other financial institutions Singapore Commercial K-REIT Asia Continues to Outperform Distributable income of $9.5m in 1H07, up 36.8% from 1H06 Annualised Distribution Per Unit of 7.88 cents for 1H07 Total return of 183.2% since listing 99.6% committed occupancy as at 30 Jun 07, higher than Core CBD occupancy of 97.3% Prudential Tower Keppel Towers Bugis Junction Towers GE Tower 14 7

8 China Overseas Strong Residential Sales Sold about 1,000 units mainly in China and India The Waterfront Chengdu - 1,143 units Villa Riviera Shanghai units - 89% of 64 launched units sold The Botanica Ph 2 Chengdu - 1,476 units - 99% sold The Seasons Beijing - 1,859 units - 98% sold 15 India Elita Promenade Bangalore - 1,573 units - 81% of 1,300 launched units sold Overseas Capitalising on Rising Vietnam Market Secured four new residential sites within four months The Estella - An Phu Ward, District 2, HCMC - 1,600 prime condo units - Launch : 2008 Dong Nai township - Dong Nai Province, near HCMC - 14,000 waterfront township units - Ph 1 launch : 2009 Condos Saigon River - Binh Thanh District, HCMC - About 500 luxury condo units - Launch : 2008 Condos Ca Cam River - District 7, HCMC - 2,400 luxury condo units - Launch :

9 Overseas Expanding in Existing Markets Pursuing township precincts in Tianjin, China Gegu Precinct (MOU) sq km waterfront precinct - Ph 1 : 15,000 units Xin Li Zhen township (MOU) sq km township precinct - Ph 1 : 8,300 units Capitalising on stronger Philippines residential market Palmdale Heights - Pasig City, Metro Manila - Ph 2 : 1,264 apartments - Launch : 2008 SM-KL Residential Devt. - Ortigas CBD, Manila apartments - Launch : Fund Management Grows Set Up AIB Alpha Japan Fund in 1H07 Closed with equity of US$172m (S$258m) Alpha Core Plus Real Estate Fund Equity of US$437m (S$720m) 85% invested in 21 assets in 4 countries Asia No. 1 Property Fund Equity of US$243m (S$400m) 100% invested in 10 assets in 4 countries Islamic Shariah fund Current portfolio of US$119m (S$180m) K-REIT Asia Four prime office buildings in Singapore Portfolio value of S$0.677 bn (end-06) Total Assets Under Management * US$0.6 (S$1.0) bn US$1.4 (S$2.3) bn US$2.9 (S$4.7) bn H07 Alpha US$2.3 (S$3.7) bn K-REIT Asia Total Assets Under Management Close to S$5 bn * 18 * When fully leveraged and invested 9

10 Recent Corporate Awards Business Times Corporate Transparency Index Ranked 5 th out of 665 companies for FY 2006 results FinanceAsia s Best Managed Companies Poll 2007 Among Top Five in Singapore for : Best Managed Company (5 th ) Most Committed to Corporate Governance (4 th ) Best Investor Relations (4 th ) 19 Recent Awards for Product Excellence FIABCI Prix d Excellence 2006 Caribbean at Keppel Bay Winner in residential category Harbourfront Office Towers 2 nd Runner-up in office / industrial category Green Mark Awards Gold Award for Marina Bay Residences (2007) Gold Award for The Tresor (2006) 2008 Graphics International Design Annual Gold Award for One Raffles Quay 20 10

11 Market Outlook 21 Singapore Residential Market Units 30,000 25,000 20,000 15,000 10,000 5, Private Residential Demand, Price and Rental Index Secondary Take-up Primary Take-up Price Index Index H07 Price index up 13.1% in 1H07 to Estimated new take-up (CBRE) : Over 9,000 units in 1H07 14,000 units for 2007 Supply expected to be steady Prices and rentals expected to continue trending upwards in 2007 Source : URA, REALIS, CBRE estimate for 2Q07 take-up 22 11

12 Singapore Office Market Positive Market Office Supply 23 Robust office market Grade A rental of $12.40 psf in 2Q07, up from $8.73 psf at end-06 Grade A occupancy stood at 99.5% in 2Q07 Broad based demand Apart from financial firms, shipping, energy, oil-trading, legal and I.T. companies are taking up space in Core CBD area Limited short term supply of about 0.75m sf p.a. from 2007 to 2010 More medium term supply Government Land Sales Programme for 2H07 to provide 1.5m sf supply (CBRE) Capital values and rents continue to increase steadily Overseas Residential Market Strong fundamentals continue to support home purchase in China, India, Vietnam and Indonesia Home Ownership Aspirations Economic Growth Favourable Demographics Growing Middle Class Urbanisation Trends 24 12

13 Going Forward 25 Singapore Going Forward Selectively acquire commercial and residential sites Divest remaining investment buildings Overseas Continue to pursue residential and township developments Fund Management Grow funds under management 26 13

14 Singapore Capitalise on Waterfront Living Launch more luxury waterfront lifestyle homes Reflections at Keppel Bay (1,129 units) Marina Bay Residences Ph 1 (428 units) 27 - First residential showcase in Asia of world celebrated master architect Daniel Libeskind - Launch more units in Reflections - Ph 1 (428 units) sold out - Ph 2 : About 250 units Singapore Possible Residential Launches 2H07 / 2008 Reflections at Keppel Bay 28 Project Reflections at Keppel Bay (30% stake) * Park Infinia at Wee Nam * The Cairnhill The Tresor * Naga Court Marina Bay Residences Ph 2 (33.3% stake) * Balance planned units Info updated as of 24 Jul 07 Location Keppel Bay Wee Nam Rd Cairnhill Circle Duchess Rd Bukit Timah Rd Marina Bay Units to Launch

15 Overseas Building on Reputation as Developer of Quality Home China The Arcadia Tianjin units India Elita Horizon Bangalore Elita Garden Vista Kolkata - 1,160 units - 1,376 units Launch more condo and villa projects in 2H07 29 Overseas Intensify Township Expansion China Vietnam Indonesia The Botanica, Chengdu - 5,800 units Dong Nai township - 14,000 units Jakarta Garden City - 7,000 units Central Park City, Wuxi - 4,700 units Saigon Sports City, HCMC - 3,000 units 30 15

16 Overseas Residential Launches Project Launch Schedule China 8 Park Avenue, Shanghai * Villa Riviera, Shanghai * Park Avenue Central, Shanghai ^ The Seasons, Beijing * The Botanica (Ph 2), Chengdu * The Botanica (future phases), Chengdu ^ The Arcadia, Tianjin ^ Central Park City, Wuxi ^ Jiangyin Mixed Development, Jiangyin ^ Units to Launch ,166 1, * Balance units ^ New launches Info updated as of 24 Jul Overseas Residential Launches 32 Project Launch Schedule Units to Launch Vietnam Saigon Sports City (Ph 1), HCMC ^ The Estella, HCMC ^ Condominiums fronting Saigon River, HCMC ^ Condominiums fronting Ca Cam River, HCMC ^ Waterfront township (Ph 1), Dong Nai Province ^ Thailand Villa Arcadia at Srinakarin, Bangkok * Villa Arcadia at Watcharapol, Bangkok ^ India Elita Promenade, Bangalore * Elita Horizon, Bangalore ^ Elita Garden Vista, Kolkata ^ Indonesia Jakarta Garden City, Jakarta ^ 200 1,000 1,000 Phlippines Palmdale Heights (Ph 2), Pasig City ^ SM-KL residential devt., Manila ^ * Balance units ^ New launches Info updated as of 24 Jul 07 16

17 Thank You 33 Additional Slides 34 17

18 Singapore Residential Landbank About 1.3 mil sf of attributable GFA Site Location KLL's Tenure Attributable Attributable Total Stake Land Area GFA Units (%) (sf) (sf) The Tresor * Duchess Rd 100% 999-yr 80, , Reflections at Keppel Bay * Keppel Bay 30% 99-yr 269, ,521 1,129 The Cairnhill Cairnhill Circle 100% Freehold 11,183 31, Naga Court Bukit Timah Rd 100% Freehold 49, , Marina Bay Residences (Ph 2) Marina Bay 33.3% 99-yr 19, , Keppel Bay Plot 3 Keppel Bay 30% 99-yr 125, , Keppel Bay Plot 4 Keppel Bay 11.7% 99-yr 36,114 40, Keppel Bay Plot 6 Keppel Bay 30% 99-yr 141,429 67, Total 732,709 1,298,309 2,154 * Including units and area sold 35 China Residential Landbank KLL s China landbank : about 1.9 mil sm of saleable area Site Location KLL's Total Total Remaining Remaining Stake Land Area GFA Area For Sale Units (%) (sm) (sm) (sm) For Sale 8 Park Avenue Shanghai 99% 33, ,393 78,256 * 490 * Park Avenue Central Shanghai 99% 28,488 99,708 99, Villa Riviera Shanghai 99% 153,726 53,796 31,698 * 111 * The Arcadia Tianjin 100% 133,400 61,687 61, Central Park City Wuxi 49.7% 352, , ,360 ^ 4,700 The Botanica Chengdu 44.1% 417,139 1,035,542 ^ 781,542 ^ 5,800 * Mixed development Jiangyin 70.6% 82, ,786 ^ 235,786 ^ 2,161 Total 1,201,706 2,290,372 1,948,037 14,138 * Excluding area and units sold ^ Excluding commercial space 36 18

19 Other Overseas Residential Landbank About 4.5 mil sm of total GFA overseas (excluding China) Country Site KLL's Total Land Total GFA Total Stake Area (sm) (sm) Units India Elita Promenade, Bangalore * 51% 96, ,237 1,573 Elita Horizon, Bangalore 51% 79, ,354 1,160 Elita Garden Vista, Kolkata 37.7% 99, ,497 1,376 Sub-total 275, ,088 4,109 Indonesia Jakarta Garden City, Jakarta 51% 2,700,000 1,050,000 7,000 Sub-total 2,700,000 1,050,000 7,000 Thailand Villa Arcadia at Srinakarin, Bangkok * 45.5% 159,706 84, Villa Arcadia at Watcharapol, Bangkok 66.7% 124,912 68, Sub-total 284, , Vietnam Saigon Sports City, HCMC 90% 640, ,180 ^ 3,000 The Estella, HCMC 55% 47, ,371 ^ 1,600 Condominium fronting Saigon River, HCMC 60% 17,428 87, Condominium fronting Ca Cam River, HCMC 75% 85, ,500 ^ 2,400 Waterfront township (Ph 1), Dong Nai Province 45% 1,930,000 1,040,077 5,300 Sub-total 2,720,928 2,599,268 12,800 PhilippinesPalmdale Heights (Ph 2), Pasig City 30.9% 15,976 62,751 1,264 SM-KL residential devt., Manila 24.2% 7,068 56, Sub-total 23, ,751 1,694 Total 6,004,383 4,471,861 26, * Including area and units sold ^ Including commercial space Rising Occupancy for KLL s Buildings 100% KLL's Office Occupancy Rates 98% * 90% 88% 80% 71% 60% 40% 20% 0% 1H04 1H05 1H06 1H07 Including Ocean Tow ers, Equity Plaza and Keppel Bay Tow er * 1H07 figure also includes One Raffles Quay w hich received TOP in

20 Office Market on Uptrend Office Rental and Occupancy % S$psf/mth Islandwide Occupancy Grade A Occupancy 96 Prime Rental 10 Grade A Rental Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 Source : URA and CBRE 0 39 This release may contain statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. You are cautioned not to place undue reliance on such statements, which are based in the current views of Management on future developments and events