WING TAI PROPERTIES LIMITED

Transcription

1 WING TAI PROPERTIES LIMITED 永泰地產有限公司 ANNUAL RESULTS

2 Agenda A Snapshot of 2015 Key Achievements Sustainable Growth Land Bank Business Review Property Development Property Investment & Management Hospitality Investment & Management Strengthened Capital Structure Future Plans & Strategies 2015 Results Highlights Appendix 2

3 Disclaimer This presentation contains forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forwardlooking terminology such as believe, expect, anticipate, estimate, plan, project, target, may, will or similar words that express an indication of actions or results of actions that may or are expected to occur in the future. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. These forward-looking statements are based on our own information and on information form other sources we believe to be reliable. Our actual results may be materially less favourable than those expressed or implied by these forward-looking statements which affect the market price of our shares. 3

4 A Snapshot of

5 Key Achievements Continued to strengthen the three strategic pillars of our businesses of property development, property investment and management, and hospitality investment and management, with our diversified portfolio of residential, commercial and hospitality assets in Hong Kong and other key gateway cities expanding further Achieved consolidated net profit attributable to shareholders of HK$1,099 million, riding on solid growth in recurring rental income and operating profit, and sustainable capital value gains on prime investment properties supported by upward rental reversions Timed right windows to relaunch pre-sale of Homantin Hillside and progressively sell the remaining units of completed residential projects amidst challenging residential property market environment Expanded our land bank by acquiring a premium residential site in So Kwun Wat of Tuen Mun, complementing our residential offerings in the pipeline by the Siu Sau site in the same neighbourhood 5

6 Key Achievements cont d Added three prime commercial properties in Central London to enhance our recurring income and economies of scale of our investment portfolio in London Expanded the revenue base and presence of Lanson Place hospitality management with the full opening of Aroma Garden Serviced Suites in Shanghai, and signing of two new 10-year management contracts to manage a total of 409 serviced apartment units in Hong Kong and Shanghai Maintained a robust balance sheet and solid capital structure, and with prudent financial management and strategic planning, we are well-positioned to capture expansion opportunities lying ahead 6

7 2015 Sustainable Growth HK$ M To further grow and diversify our asset portfolio to create long-term value for our stakeholders 7

8 Balanced and Diversified Land Bank in Hong Kong 1 The Pierre 2 The Warren Kau To, Shatin (two plots) Siu Sau, Tuen Mun Shau Kei Wan 8 So Kwun Wat, Tuen Mun Landmark East W Square 11 Shui Hing Centre 12 Winner Godown Building 13 Development properties Investment properties 8

9 Land Bank (as at 31 December 2015) Investment Property By Business Segment Strategic land bank with focus on Hong Kong Hospitality 11% Industrial 27% Office / Retail 62% Attributable Gross Floor Area / Saleable Area Hong Kong ( 000 sq. ft.) China ( 000 sq. ft.) Others ( 000 sq. ft.) Total ( 000 sq. ft.) Valuation as at 31 December 2015 (HK$ M) Residential Development 470* 104* (Shanghai) N/A Investment Property # Office/Retail 1, (London) 1,554 17,386 Industrial ,418 Hospitality (Beijing) 103 (Kuala Lumpur) 283 2,185 Subtotal 2, ,521 21,989 Total 2, ,095 N/A * Includes (i) unsold units; (ii) pre-sold units (the revenue of which has not been recognised); and (iii) units under development but exclude So Kwun Wat new site of 264,000 sq. ft. acquired in January 2016 # Excludes miscellaneous industrial properties and agricultural land Excludes one acquisition completed in January

10 Showflat Business Review 10

11 Property Development 11

12 Sales and Development Pipeline (as at 31 December 2015) A sustainable and scalable residential project pipeline Available Presold Estimated completion Property Gross Gross Development 2019 Floor Area Floor Area Group s Portfolio & ( 000 sq. ft.) ( 000 sq. ft.) Interest Beyond Hong Kong Providence Bay* 116 N/A 15% Providence Peak* 80 N/A 15% Completed Development The Graces* 17 N/A 15% The Warren* 6 N/A 100% The Pierre* 2 N/A 100% Projects Under Development Shanghai Upper Riverside 210 N/A 50% Hong Kong Homantin Hillside* % Kau To STTL N/A 35% Kau To STTL N/A 35% Shau Kei Wan 46 N/A 100% Siu Sau, Tuen Mun 159 N/A 100% So Kwun Wat Road, Tuen Mun (Jan 2016) 264 N/A 100% * These properties are stated on a saleable area basis 12

13 Completed Development in Hong Kong Providence Bay, Providence Peak, The Graces, Pak Shek Kok, Tai Po Providence Bay (482 units): approximately 85% of the residential units have been sold Providence Peak (548 units): approximately 91% of the residential units have been sold The Graces (193 units): approximately 95% of the residential units have been sold Of which, around 21%, 10% and 12% of the residential units of Providence Bay, Providence Peak and The Graces were sold, respectively, in

14 Completed Development in Hong Kong Cont d The Warren (103 units), 9 Warren Street, Causeway Bay Approximately 90% of the residential units have been sold Of which, around 8% were sold in

15 Completed Development in Hong Kong Cont d The Pierre (77 units), 1 Coronation Terrace, Mid-Levels West Approximately 95% of the residential units have been sold Of which, around 3% were sold in

16 Completed Development in Shanghai Upper Riverside (97 units), Lujiazui, Shanghai Located along the Huangpu River at Lujiazui, Pudong Gross floor area of approximately 210,000 sq. ft. Project completed in August 2015 Leasing and sale underway 16

17 Project Under Development in Hong Kong Homantin Hillside (173 units), 8 Wai Yin Path, Hung Hom Saleable area of approximately 128,000 sq. ft. In close proximity to upcoming Ho Man Tin MTR station of the Kwun Tong Line Extension and the Shatin to Central Link Approximately 45% of the residential units have been pre-sold. Of which, around 40% were sold in 2015 Superstructure work underway Project scheduled for completion in second half of

18 Project Under Development in Hong Kong Cont d Kau To, Shatin Two sites (STTL 567 & 565) at peak of Kau To Shan, acquired in August 2012 and January 2013 Combined gross floor area of approximately 460,000 sq. ft. Earmarked for low-density luxury residential development Superstructure work underway Projects scheduled for completion in

19 Project Under Development in Hong Kong Cont d Shau Kei Wan Prime harbour-front residential site acquired in April 2014 Gross floor area of approximately 46,000 sq. ft. Foundation work underway Project scheduled for completion in

20 Project Under Development in Hong Kong Cont d Siu Sau, Castle Peak Road Tai Lam, Tuen Mun Gross floor area of approximately 159,000 sq. ft. Earmarked for low-density residential development Foundation work and site formation work underway Project scheduled for completion by

21 Project Under Development in Hong Kong Cont d So Kwun Wat, So Kwun Wat Road, Area 56, Tuen Mun Acquired in January 2016 Gross floor area of approximately 264,000 sq. ft. Earmarked for medium-density residential development Project scheduled for completion in

22 Property Investment & Management 22

23 Investment Portfolio in Hong Kong Gross floor area ( 000 sq. ft.) Occupancy as at 31 December 2015 Average rental reversion upon lease renewal Leases expiring/ rent review in 2016 Grade A Offices Landmark East (AIA Kowloon Tower/ AXA Tower) 1,338 97% 18% 48% W Square % 9% 21% Industrial Properties Winner Godown Building Shui Hing Centre % 24% 60% As at 31 December 2015, the Group s portfolio of investment properties, comprising 1.5 million square feet of Grade A office buildings and 0.7 million square feet of industrial buildings, had an aggregate fair market valuation of approximately HK$18,300 million Recorded both increasing spot rents and positive rental reversions 23

24 Investment Portfolio in London Commercial Property at Savile Row/Vigo Street, West End Net internal area of approximately 14,000 sq. ft. of Grade A office and retail space Achieved full occupancy Commercial Property at Brook Street, West End Net internal area of approximately 19,000 sq. ft. of Grade A office and retail space Achieved full occupancy 24

25 Investment Portfolio in London Cont d Commercial Property at Berkeley Square, West End Acquired in September 2015 Net internal area of approximately 7,900 sq. ft. of office space Achieved an occupancy of approximately 70% Commercial Property at Fleet Place, the City Acquired in September 2015 Group s interest of 25% Net internal area of approximately 186,000 sq. ft. of Grade A office and retail space Achieved full occupancy 25

26 Investment Portfolio in London Cont d Commercial Property at Cavendish Square, West End Acquired in January 2016 Group s interest of 33% Net internal area of approximately 11,000 sq. ft. of office space With the planning consent to increase the net internal area to approximately 14,000 sq. ft. of office space. Related refurbishment scheduled for completion in

27 Hospitality Investment & Management 27

28 Hospitality Portfolio Strong brand recognition in HK & key gateway cities in Asia by customers and property owners Lanson Place Properties Management Lanson Place Jin Qiao Serviced Residences No. of units: 102 Location: Shanghai Aroma Garden Serviced Suites by Lanson Place No. of units: 79 Location: Shanghai One Sunland Serviced Suites by Lanson Place (Q2 2016) No. of units: 196 Location: Shanghai Parkside Serviced Suites by Lanson Place (Q2 2016) No. of units: 186 Location: Shanghai Lanson Place Jinlin Tiandi Serviced Residences No. of units: 106 Location: Shanghai Beijing Shanghai Hong Kong Kuala Lumpur Singapore Two MacDonnell Road, Mid-Levels, Hong Kong, by Lanson Place No. of units: 213 Location: Hong Kong Kondominium No. 8 No. of units: 132 Location: Kuala Lumpur Ambassador Row Hotel Suites by Lanson Place No. of units: 221 Location: Kuala Lumpur Lanson Place Winsland Serviced Residences No. of units: 67 Location: Singapore 28

29 Hospitality Portfolio Cont d Strong brand recognition in HK & key gateway cities in Asia by customers and property owners Lanson Place Properties Investment & Management Lanson Place Central Park Serviced Residences Group s interest: 30% No. of units: 105 Location: Beijing Beijing Shanghai Lanson Place Hotel Group s interest: 100% No. of rooms: 194 Location: Hong Kong Lanson Place Bukit Ceylon Serviced Residences Group s interest: 50% No. of units: 150 Location: Kuala Lumpur Kuala Lumpur Hong Kong Lanson Place Lifestyle Services The Warren The Pierre Homantin Hillside (2016) Upper Riverside, Shanghai Le Nouvel Ardmore, Singapore Singapore 29

30 Hospitality Investment and Management Aroma Garden Serviced Suites in Puxi, Shanghai had full opening in April 2015 In July 2015, a new 10-year management contract was signed to manage One Sunland Serviced Suites in Waigaoqiao Free Trade Zone, Pudong, Shanghai. This denotes the 5th property in Shanghai under Lanson Place management In February 2016, another new 10-year management contract was signed to manage a serviced apartment project of 213 units at Two MacDonnell Road, Mid-Levels, Hong Kong Awards and recognitions: Lanson Place Hospitality Management Limited: The Best Serviced Apartment Operator of China by the 10 th China Hotel Starlight Awards Lanson Place Hotel, Hong Kong: Asia s Leading Boutique Hotel 2015 and Hong Kong s Leading Boutique Hotel 2015 by the World Travel Awards; Outstanding Customer Service Award by the Small Luxury Hotels of the World 2015 Hotel Awards Lanson Place Bukit Ceylon Serviced Residences, Kuala Lumpur: Winner for the Hotel Suites in Asia Pacific category by International Hotel & Property Awards 2015 Lanson Place Central Park Serviced Residences, Beijing: Best Homes by 2015 City Weekend Home & Office Design Luxury Homes of China Awards 30

31 Solid Capital Structure November 2012 First drawdown of S$170 million unrated 10-year fixed rate bond at a coupon rate of 4.25% January 2013 Second drawdown of HK$480 million unrated 10-year fixed rate bond at a coupon rate of 3.95% May 2013 Third drawdown of HK$100 million unrated 10-year fixed rate bond at a coupon rate of 3.8% August 2014 Fourth drawdown of HK$100 million unrated 7-year fixed rate bond at a coupon rate of 4.3% October 2014 Fifth drawdown of HK$100 million unrated 7-year fixed rate bond at a coupon rate of 4.1% November 2014 Sixth drawdown of HK$100 million unrated 10-year fixed rate bond at a coupon rate of 4.5% Access to bond market since 2012, raising a total of approximately HK$1,900 million unrated fixed rate bonds, a reflection of strong market recognition and confidence in our financial position As at 31 December 2015, the Group maintained a healthy gearing at 7.2 %. Total cash on hand and unutilised revolving loan facilities were HK$4,268 million Solid financial capability for future investments and acquisition opportunities 31

32 Showflat Future Plans & Strategies 32

33 Future Plans & Strategies In near term In mid-to-long term Property Development Property Investment & Management Hospitality Investment & Management Capitalise on favourable windows in market to pre-sell /sell new projects and remaining residential units of completed properties, including Homantin Hillside in Hong Kong and Upper Riverside in Shanghai Maximise rental reversions upon rent review or lease renewal and optimise tenant profile to grow recurring income base Foster our exclusive customeroriented lifestyle driven services Build and fortify the brand in both existing and new markets in the region through long-term third party management contracts Taking advantage of public land tender programme and private treaty for development properties to proactively expand land bank and enhance development pipeline Continue to explore and acquire yieldenhancing investment opportunities in Hong Kong and other key gateway cities to further our expansion and asset diversification Make Lanson Place Lifestyle Services a service of choice at our property development projects Extend footprint and offerings of Lanson Place in Asia and beyond 33

34 2015 Results highlights 34

35 Financial Results Summary For the year ended 31 December (HK$ M) Revenue 1,009 1,784 43% Gross profit % Change in fair value of investment properties and financial instruments 705 1,539 54% Profit from operations 1,204 2,148 44% Share of results of joint ventures/associates ,400% Profit attributable to equity holders of the company 1,099 1,944 43% Basic earnings per share (HK$) % Final dividend per share (HK cents) % Total dividend per share (HK cents) % Dividend payout % 35

36 Segment Results Overview (HK$ M) Property Development Revenue % Profit before taxation % Property Investment & Management Revenue % Fair value changes in investment properties and financial instruments 791 1,537 49% Profit before taxation 1,215 1,930 37% Profit before taxation excluding fair value changes in investment properties and financial instruments Hospitality Investment & Management % Revenue Fair value changes in investment properties and financial instruments (101) % (Loss) / Profit before taxation (22) % Profit before taxation excluding fair value changes in investment properties and financial instruments and a one-off disposal gain on investment in an associate For the year ended 31 December % 36

37 Balance Sheet Summary (HK$ M) 31 December December 2014 Total assets 28,221 27,528 3% Net assets 23,347 22,680 3% Equity attributable to equity holders of the company 23,346 22,679 3% Investment properties 21,449 20,586 4% Properties for sale 1,296 1,322 2% Bank balances and cash 2,074 1,593 30% 37

38 Balance Sheet Summary Cont d (HK$ M) 31 December December 2014 Total borrowings 3,766 3,879 3% Net borrowings 1,692 2,286 26% Gearing ratio (net borrowings to net assets) Maturity profile of borrowings Repayable: 7.2% 10.1% Within one year % 64 2% Between one and two years % % Between two and five years % 1,427 37% After five years 1,853 49% 1,929 49% 3, % 3, % Financial Resources Bank balances and cash 2,074 1,593 Unutilised revolving loan facilities 2,194 2,210 4,268 3,803 38

39 Appendix 39

40 Investment Thesis 1 A credible and integrated property player in Hong Kong with a balanced and growing development and investment portfolio spanning the region and beyond 2 Strong track record in developing luxury and quality residential properties at premium values 3 Owns a diversified portfolio of high-quality Grade A office and hospitality investment properties, enabling a sustainable and growing recurring income stream 4 Manages high-end serviced residences and boutique hotel with high occupancy across Hong Kong, mainland China and South East Asia under the Lanson Place brand 5 Strengthened capital structure and healthy gearing with good access to capital markets 40

41 Five Years Financial Summary Year ended 31 December RESULTS 2015 HK$ M 2014 HK$ M 2013 HK$ M 2012 (Restated) HK$ M 2011 (Restated) HK$ M Continuing operations revenue 1, , , ,191.0 Profit before taxation from continuing operations 1, , , , ,847.4 Taxation (83.2) (89.5) (91.4) (78.4) (81.8) Profit for the year from continuing operations 1, , , , ,765.6 Profit/(Loss) for the year from discontinued operations (31.9) Profit for the year 1, , , , ,733.7 Attributable to: Equity holders of the Company - From continuing operations 1, , , , , From discontinued operations (31.9) 1, , , , ,210.7 Non-controlling interests - From continuing operations , , , , ,

42 Five Years Financial Summary Cont d As at 31 December 2015 HK$ M 2014 HK$ M 2013 HK$ M 2012 (Restated) HK$ M 2011 (Restated) HK$ M ASSETS AND LIABILITIES Total assets 28, , , , ,212.5 Total liabilities (4,873.6) (4,847.6) (5,809.9) (5,216.3) (4,849.8) Non-controlling interests (1.0) (1.2) (1.5) (2.0) (2,435.0) Equity attributable to the equity holders of the Company 23, , , , ,