Presentation Results. 6th March 2015

Transcription

1 Presentation 6th March 2015

2 2014 Review Strong underlying profit Increased contribution from commercial portfolio Moderately reduced residential performance despite strong profits from Hong Kong and mainland China Stable asset values 1

3 Highlights US$935m Underlying profit attributable to shareholders US$930m US$255m Non-trading items US$397m US$1,190m Profit attributable to shareholders US$1,327m US Underlying earnings per share US US Earnings per share US US$11.41 NAV per share US$11.71 US Final dividend per share US US Total dividend per share US

4 Commercial Property 3

5 Commercial Portfolio ( 000 sq. ft NFA) HKL s Share Office Retail Hotel Total Hong Kong 4, ,877 Macau Singapore 1, ,785 Jakarta Hanoi Bangkok Others TOTAL 6, ,221 4

6 Hong Kong 1. One Exchange Square 2. Two Exchange Square 3. Three Exchange Square 4. The Forum 5. Jardine House 6. Chater House 7. Alexandra House 8. Gloucester Tower 9. Edinburgh Tower 9a. The Landmark Mandarin Oriental 10. York House 11. Landmark Atrium 12. Prince s Building 5

7 Hong Kong Central Grade A Office Rental Index Index Source: Jones Lang LaSalle 6

8 Hong Kong Central Grade A Office Market m sq. ft New supply Net take up Vacancy Vacancy % '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 Source: Jones Lang LaSalle Disclaimer: The above forecast shall be regarded solely as a general guide. No representation is made nor responsibility accepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever. 7

9 Hong Kong Grade A Office Market m sq. ft New supply Net take up Vacancy Vacancy % '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 Source: Jones Lang LaSalle Disclaimer: The above forecast shall be regarded solely as a general guide. No representation is made nor responsibility accepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever. 8

10 Hongkong Land Central Portfolio: Office Average Net Rent (HK$ psf/month) Year-end Vacancy 3.4% 5.0% 5.4% Weighted Average Lease Expiry (years)

11 Hong Kong: Office Tenant Profile Property 6% Trading 2% Governments 1% Accounting 8% Others 13% Banks and other financial services 39% Legal 31% 10

12 Hong Kong: Expiration and Interim Rent Revisions Total lettable office area subject to expiration/rent revisions ( 000 sq. ft) 1, ,456 % of area subject to expiration/rent revisions 25% 21% 35% Average expiring net rent (HK$ psf/month)

13 Hongkong Land Central Portfolio: Retail Average Net Rent (HK$ psf/month) Year-end Vacancy 0% 0% 0% Weighted Average Lease Expiry (years) Note: Vacancy excludes areas under renovation. 12

14 Macau One Central (47%-owned) Retail component 96% let 5% increase in average rent 13

15 Singapore One Raffles Link (100%-owned) One Raffles Quay (33%-owned) Marina Bay Financial Centre (33%-owned) 14

16 Singapore CBD Grade A Office Market m sq. ft New supply Net take up Vacancy Vacancy % '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 CBD Raffles Place, Shenton Way, Marina Bay & Marina Centre Source: Jones Lang LaSalle Disclaimer: The above forecast shall be regarded solely as a general guide. No representation is made nor responsibility accepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever. 15

17 Singapore Commercial Portfolio ( 000 sq. ft NFA) Office Retail Total HKL s Share One Raffles Link One Raffles Quay 1, , Marina Bay Financial Centre 2, ,085 1,028 TOTAL 4, ,731 1,785 16

18 Singapore: Office Tenant Profile Natural resources 8% Accounting 3% Others 9% Legal 5% Banks and other financial services 75% 17

19 Singapore: Office Average Rents and Occupancy Average Gross Rent (S$ psf/month) Year-end Vacancy 5.6% 1.7% 1.7% Weighted Average Lease Expiry (years) Note: According to local market practice, the average office rent includes management charges. 18

20 Singapore: Expiration and Interim Rent Revisions HKL s Share: Total lettable office area subject to expiration/rent revisions ( 000 sq. ft) % of area subject to expiration/rent revisions 7% 19% 19% Average expiring rent (S$ psf/month) Note: According to local market practice, the average office rent includes management charges. 19

21 Jakarta Jakarta Land (50%-owned) Existing portfolio features 135,000 sq. m. WTC 3 Average gross rent: US$24.0 psm per month (2013: US$21.6 psm per month) Occupancy: 95.4% Construction begun on new tower, WTC 3 Strong demand for office space 20

22 Hanoi and Bangkok Central Building (71%-owned) Gaysorn (49%-owned) 63 Ly Thai To (74%-owned) 21

23 Phnom Penh EXCHANGE SQUARE (100%-owned) Mixed-use complex Heart of Phnom Penh Completion:

24 Beijing WF CENTRAL (90%-owned) Prestigious retail centre, which includes a small luxury hotel 43,000 sq. m. lettable retail area Completion: end

25 Beijing CBD (30%-owned) Prime Grade A office 120,000 sq. m. lettable area Completion:

26 Residential Property 25

27 Hong Kong Serenade Final 14 units sold and handed over in

28 Macau One Central (47%-owned) Final five units handed over in

29 Mainland China Shenyang Chengdu Beijing Chongqing Background image from Google Earth Background image from Google Earth 28

30 Mainland China Completed Projects, Beijing Project Project Type Maple Place Maple Place (90%) Central Park (40%) 16 units handed over in units available for future sale, mostly leased 72 units of serviced apartments Central Park 29

31 Mainland China Development Projects Summary Project Interest Project Type Bamboo Grove, Chongqing 50% Primarily Residential Landmark Riverside, Chongqing 50% Residential (76%), Office, Retail & Others Yorkville South, Chongqing 100% Primarily Residential Yorkville North, Chongqing 100% Residential (74%), Office, Retail & Others Central Avenue, Chongqing 50% Residential (66%), Office & Retail Chengdu Project 50% Residential (46%), Office (14%), Retail (17%), Hotel & Serviced Apartments (23%) Shenyang Projects 50% Primarily Residential 30

32 Mainland China Development Projects Summary HKL s Share Project Year of Acquisition Site Area (ha) Developable Area (m sq. m.) Constructed (m sq. m.) Under Construction (m sq. m.) Bamboo Grove, Chongqing Landmark Riverside, Chongqing Yorkville South, Chongqing Yorkville North, Chongqing Central Avenue, Chongqing Chengdu Project Shenyang Projects TOTAL

33 Mainland China Revenue Recognised US$m Chongqing Chengdu Shenyang Beijing $621m $451m $213m Note: The above chart includes HKL s share of Joint Ventures & Associates. 32

34 Mainland China Contracted Sales US$m Chongqing Chengdu Shenyang Beijing $632m $635m $429m Note: The above chart includes HKL s share of Joint Ventures & Associates. 33

35 Mainland China Contracted Sales US$m Chongqing Chengdu Shenyang Beijing $369m $373m $200m $229m $263m $262m 0 1H '12 2H '12 1H '13 2H '13 1H '14 2H '14 Note: The above chart includes HKL s share of Joint Ventures & Associates. 34

36 Mainland China Contracted Sales At 31st December 2014, US$533m (2013: US$534m) in sold but unrecognised contracted sales Some 80% of contracted sales scheduled to be recognised in

37 Singapore Choa Chu Kang Grove Parcels A & B Terrasse Ripple Bay LakeVille Sixth Avenue J Gateway Hallmark Residences Uber 388 Marina Bay Suites 36

38 Singapore Completed Project Marina Bay Suites (33%-owned) 221 units, 0.47m sq. ft Completion: 2013 Three units handed over in units available for sale 37

39 Singapore Completions in 2014 Project Units GFA ( 000 sq. ft) Sold Terrasse Terrasse % Uber % Uber

40 Singapore Projects for Completion from 2015 Project Units GFA ( 000 sq. ft) Estimated Completion Date Pre-Sold Sixth Avenue Completed 56% Hallmark Residences Completed 88% Ripple Bay % J Gateway % LakeVille % Choa Chu Kang Grove 1,327 1, Not launched TOTAL 3,550 3,448 39

41 Indonesia Nava Park, Greater Jakarta (49%-owned) JV with PT Bumi Serpong Damai Site area: 67 ha Southwest of central Jakarta 223 units launched for sale; 59% pre-sold Completion of 1st phase:

42 Indonesia Anandamaya Residences (40%-owned) JV with Astra International 509 units of luxury apartments; 78% pre-sold Completion:

43 Philippines Roxas Triangle (40%-owned) JV with Ayala Land 182 units; 70% pre-sold Completion:

44 Financial Results 43

45 Consolidated Profit and Loss Account (US$m) ,857 Revenue 1,876 (940) Net operating costs (809) 917 Operating profit 1, Share of results of joint ventures 123 (64) Net financing charges (69) (149) Tax (187) (4) Non-controlling interests (4) 935 Underlying profit Non-trading items 397 1,190 Profit attributable to shareholders 1,327 44

46 Revenue (US$m) Commercial revenue Residential revenue 915 1,857 Total 1,876 45

47 Underlying Profit by Business (US$m) Commercial property Residential property 398 (60) Corporate expenses (62) 1,267 1,289 (103) Net financing charges (103) (224) Tax (247) (5) Non-controlling interests (9) 935 Underlying profit

48 Commercial Property Underlying Profit (US$m) Greater China Hong Kong Mainland China & Macau 29 Southeast Asia & Others Singapore Others Total

49 Residential Property Underlying Profit (US$m) Greater China 19 - Hong Kong Mainland China & Macau 179 Southeast Asia & Others Singapore Others Total

50 Consolidated Cash Flow (US$m) Operating activities 699 (378) Investing activities 88 (404) Financing activities (426) 122 Others Decrease in net debt 368 (3,273) Net debt at beginning of period (3,025) (3,025) Net debt at end of period (2,657) 49

51 Operating Activities (US$m) Operating profit excluding non-trading items 1,067 (77) Net interest paid (81) (139) Tax paid (134) (367) Payments for residential sites (429) (303) Development expenditure on residential projects (454) 918 Proceeds from residential sales Dividends received from joint ventures 153 (192) Others (385)

52 Investing Activities (US$m) (40) Major renovations capex (38) (422) Funding of joint ventures (216) 104 Loan repayments from joint ventures 479 (134) Development expenditure (137) 114 Others - (378) 88 51

53 Consolidated Cash Flow (US$m) Operating activities 699 (378) Investing activities 88 Financing activities (397) - Dividends paid by the Company (421) (7) - Dividends paid to minority shareholders (5) (404) (426) 122 Others Decrease in net debt 368 (3,273) Net debt at beginning of period (3,025) (3,025) Net debt at end of period (2,657) 52

54 Consolidated Balance Sheet (US$m) Investment properties 23,583 - Subsidiaries 23,697 4,167 - Joint ventures 4,474 27,750 28,171 Properties held for sale 2,670 - Subsidiaries 2,923 1,247 - Joint ventures 1,372 3,917 4,295 (1,743) Others (2,211) 29,924 Gross assets (excluding cash) 30,255 Financed by: 26,899 - Total equity 27,598 3,025 - Net debt 2,657 29,924 30,255 53

55 Investment Property Basis of Valuation Capitalisation Rates H Hong Kong Office - Exchange Square 1 & % 4.00% 4.00% Hong Kong Retail - Landmark Atrium 4.50% 4.50% 4.50% Singapore Office - MBFC 3.80% 3.80% 3.75% Note: These capitalisation rates are provided on an indicative basis. 54

56 Investment Property Carrying Values (US$m) Greater China 22,302 - Hong Kong 22,336 1,368 - Mainland China & Macau 1,650 Southeast Asia & Others 3,603 - Singapore 3, Others ,750 Total 28,171 Note: The analysis includes share of Joint Ventures & Associates. 55

57 Properties Held for Sale Carrying Values (US$m) Greater China 62 - Hong Kong 23 2,308 - Mainland China & Macau 2,435 Southeast Asia & Others 1,456 - Singapore 1, Others 141 3,917 4,295 (923) Pre-sale proceeds (941) 2,994 Net investment 3,354 Note: The analysis includes share of Joint Ventures & Associates. 56

58 Gross Assets at 31st Dec 2014 By Activity By Location Commercial 88% Residential 12% Hong Kong 73% Mainland China and Macau 11% Southeast Asia 16% 57

59 Treasury Management Summary Net debt (US$m) 3,025 2,657 Gearing 11% 10% Average tenor of debt (years) Average interest cost 2.7% 2.9% Credit ratings - S & P - Moody s A- A3 A A3 58

60 2014 Financing Activity US$452m notes issued under MTN programme Total of US$1.2bn in banking facilities raised - US$355m in bilateral facilities - US$500m project loan for WF CENTRAL - US$339m project loan for Choa Chu Kang project 59

61 Maturity Profile of Committed Facilities/Bonds (US$m) US$m 4,000 3,500 3,000 2,500 2,000 1,500 1, Bank Facilities (Drawn & Undrawn) Bonds $3,263m $1,286m $785m $675m $882m $310m * * Includes bonds and notes issued under MTN Programme which are at face value. 60

62 Liquidity at 31st Dec 2014 (All figures in US$bn) 2013 HK$ 1 S$ 2 US$ RMB Total 7.1 Committed lines Gross debt Available lines Cash Available liquidity Notes: (1) HK$ debt includes US$ debt swapped into HK$. (2) S$ debt includes HK$ debt swapped into S$. 61

63 Outlook Commercial leasing markets in Hong Kong and Singapore remain stable in 2015 Further strong profits expected from residential development activities in mainland China No residential profits in Hong Kong and lower contribution from Singapore The Group continues to seek opportunities in premium commercial and residential developments in Greater China and Southeast Asia 62

64 Thank you Hongkong Land