Financial Year 2007 Results

Transcription

1 Financial Year 2007 Results 29 Jan 2008

2 Content Financial Performance Operations Review Market Outlook Going Forward 2

3 Financial Performance 3

4 FY07 Financial Achievements PATMI more than tripled to $779.7 m ROE of 46.2% ROE of 25.8%* a new high NTA / Share up 44% to $3.18 Net debt to equity ratio falls 60.6% to 0.41 * Excluding revaluation gains on investment properties 4

5 Financial Highlights $m FY2007 FY2006 % Chg Turnover 1, EBITDA Operating Profit Pre-tax Profit PATMI 779.7* * Includes corporate restructuring surplus / enbloc property sales ($235.2m) less impairment provision ($78.5m), and net gain on revaluation of investment properties ($343.6m) 5

6 Key Ratios $m FY2007 FY2006 % Chg EPS ( ) NTA Per Share ($) Net Debt / Equity Ratio (x) (60.6) ROE (%) ROE (%) 25.8* Dividend Per Share Final Dividend ( ) Special Dividend ( ) * Excluding revaluation gains on investment properties 6

7 Net Profit By Business Segment Business FY2007 FY2006 % Comments Segment $m $m Chg Trading Investment Fund Management Hotels / Resorts (1.1) (4.0) nm Less Interest and Overheads nm Surplus from corporate restructuring less impairment provision PATMI before revaluation Net gain on revaluation of nm investment properties PATMI after revaluation Higher due mainly to contributions from Reflections at Keppel Bay, Marina Bay Residences and Sixth Avenue Residences in Singapore; Villa Riviera, The Seasons and The Arcadia in China; and Elita Promenade in India Higher due mainly to write-back of tax provisions Including contribution from K-REIT Asia Smaller loss due to lower depreciation Higher interest and overhead costs Surplus from ownership restructuring of One Raffles Quay less diminution in value of Myanmar hotels and Indonesian Rupiah Share of revaluation gains from office portfolio 7

8 Net Profit By Geographical Location Geographical FY2007 FY2006 % Comments Location $m % $m % Chg Singapore Other countries Surplus from corp. restructuring less impairment provision PATMI before revaluation Net gain on nm revaluation of investment properties PATMI after revaluation Higher due mainly to contributions from Reflections at Keppel Bay, Marina Bay Residences and Sixth Avenue Residences Higher due to contributions from The Seasons, Villa Riviera and The Arcadia in China and Elita Promenade in India Surplus from ownership restructuring of One Raffles Quay less diminution in value of Myanmar hotels and Indonesian Rupiah Share of revaluation gains from office portfolio 8

9 Notes on Profit Recognition Project % of % of Profit Recognised Sales Completion in FY2007 ($m) SINGAPORE Marina Bay Residences (428 units) Park Infinia at Wee Nam (486 units) Urbana (126 units) Reflections at Keppel Bay (1,129 units) OVERSEAS The Seasons, Beijing, China (1,859 units) Ph 1 (990 units) Ph 2 (869 units) Park Avenue, Shanghai, China (946 units) Ph 1 (85 units) Ph 2 (371 units) Ph 3 (96 units) Villa Riviera, Shanghai, China (168 units) Ph 1 (42 units) Ph 2 (46 units) Elita Promenade, Bangalore, India (1,573 units) Ph 1 (944 units) Ph 2 (629 units)

10 Operations Review 10

11 Singapore Residential Sold About 760 Units in 2007 Reflections at Keppel Bay 1,129 units Ph 1 (620 units) fully sold Park Infinia at Wee Nam 486 units 100% of 434 launched units sold Reflections at Keppel Bay Other Projects Fully Sold The Suites at Central (157 units) Freesia Woods (129 units) Urbana (126 units) The Linc (51 units) The Elysia (40 units) Park Infinia at Wee Nam 11

12 Singapore Commercial 3.8m sf NLA Under Development in CBD and New Downtown Marina Bay Financial Centre Marina Bay Financial Centre Both phases >50% pre-committed by major financial institutions NLA Anchor Tenant Completion Ph 1 1.6m sf (0.5m sf) 2010 Marina Bay Financial Centre Ph 2 1.3m sf (0.7m sf) 2012 Ocean Financial Centre Ocean Financial Centre 43-storey Grade A office building 850,000 sf NLA Up to 23,000 sf column-free floor plates Completion : 2011 Ocean Financial Centre 12

13 Singapore Commercial Completed Sale of 1/3 ORQ Stake to K-REIT Asia Unlocking value and recycling capital into projects with higher returns Surplus of $235.2 m from restructuring of one-third stake in One Raffles Quay Gearing reduced substantially to 0.41 One Raffles Quay 13

14 Singapore Commercial K-REIT Asia Continues to Outperform Distribution Per Unit (DPU) of 8.82 cents, up 30.5% from FY2006 Asset size up 210% from $677m to $2.1b, with ORQ (1/3 interest) Portfolio s net lettable area up 57% from 73,108 sm to 114,426 sm Full committed occupancy as at 31 Dec 2007 K-REIT to raise up to $700 m through rights issue KCL and KLL undertake to take up : respective allocations of the Units and any Units not subscribed for by minority Unitholders 14

15 Overseas Good Response to New Launches and Releases China China Central Park City, Wuxi (4,700 units) - 80% of 728 launched units sold The Botanica Ph 3, Chengdu (1,048 units) - 91% of 788 launched units sold Central Park City, Wuxi 8 Park Avenue, Shanghai (946 units) - 92% of latest 96 units released sold India India The Botanica (Ph 3), Chengdu Elita Garden Vista, Kolkata (1,376 units) - 62% of 351 launched units sold Elita Garden Vista, Kolkata 15

16 Overseas Sold About 2,800 Units Overseas in 2007, Mostly in China and India China China Beijing The Seasons (1,859 units) : 100% sold Chengdu The Botanica Ph 2 (1,476 units) : 100% sold The Waterfront (1,143 units) : 100% sold Shanghai India India Villa Riviera (168 units) Bangalore - 82 units launched : 90% sold Elita Promenade (1,573 units) - 1,437 units launched : 82% sold The Seasons, Beijing The Botanica (Ph 2), Chengdu The Waterfront, Chengdu Vietnam Ho Chi Minh City Villa Riviera (101 units) : 100% sold Villa Riviera, HCMC 16

17 Overseas Expanded Presence in China Residential Development, Nanhui, Shanghai Residential Township, Shenbei, Shenyang 26.4-ha site in Xinchang Town 3,000 homes comprising terrace houses and apartment blocks Launch : ha site in Shenbei New District 5,400 units Launch :

18 Overseas Secured Eight Residential Projects in Vietnam in 2007 HCMC Project The Estella (prime condo) Luxury waterfront condo Luxury waterfront condo Waterfront township Site Location An Phu Ward, District 2 Binh Thanh District No. of Units Launch 1, District 7 2, Dong Nai Province 14, Prime condo District 2 1, Villa development District Prime condo District 9 1, Dong Nai township 8 Luxury villa District Existing Keppel Land developments Total No. of New Units 22,225 Sixfold increase in landbank to 53 mil sf GFA Sixfold increase in landbank to 53 mil sf GFA 18

19 Overseas Entered the Middle East Market Jeddah, Saudi Arabia Jeddah, Saudi Arabia 3.6-ha waterfront site in prestigious North Corniche residential precinct 1,000 luxury seafront apartments Launch :

20 Overseas Scale Up Residential Township Developments The Botanica Chengdu, China (8,200 units) Jakarta Garden City Jakarta, Indonesia (7,000 units) Saigon Sports City HCMC, Vietnam (3,000 units) 2006 Central Park City Wuxi, China (4,700 units) Residential Township Shenyang, China (5,400 units) Residential Township Dong Nai, Vietnam (14,000 units) Spread over 6 cities in 3 countries in the region Spread over 6 cities in 3 countries in the region 20

21 Fund Management Growth K-REIT Asia K-REIT Asia Total Assets Under Management * US$0.6bn (S$1.0bn) US$1.4bn (S$2.3bn) US$4.0bn (S$6.1bn) Alpha US$2.3bn (S$3.7bn) b K-REIT Asia Portfolio value up to S$2.1 bn with acquisition of one-third stake in One Raffles Quay Alpha Alpha Funds Committed % No. of Equity Invested Countries Invested in AIB Alpha Japan Fund US$172m 26% 1 (set up in 2007) (S$258m) Alpha Core Plus Real US$437m 100% 4 Estate Fund (S$720m) Asia No. 1 Property Fund US$243m 100% 5 (S$400m) Islamic Shariah Fund US$119m ^ 100% 4 (S$180m) Total Assets Under Management of S$6.1 bn * Total Assets Under Management of S$6.1 bn * * When fully leveraged and invested ^ Current portfolio 21

22 Recent Corporate Awards BT Corporate Transparency Index (22 Jan 2008) Ranked 4 th out of 675 companies SIAS Investors Choice Awards 2007 Runner-up or Most Transparent Company Award in Property category Finance Asia Best Managed Companies Among Top Five in Singapore for : Best Managed Company Most Committed to Corporate Governance Best Investor Relations 22

23 Recent Awards for Product Excellence BCA Green Mark Award Gold Award for Marina Bay Residences (2007) Vietnam Economic Times Golden Dragon Award 2007 Sedona Suites Hanoi The Guide Awards - Suave Choice Apartments 2007 Sedona Suites Hanoi Sedona Suites HCMC Asian Golf Monthly Awards 2007 Best Golf Resort in Asia (1 st runner-up) - Spring City Golf & Lake Resort, Kunming Best Golf Course in Indonesia - Ria Bintan (Ocean Course) 23

24 Market Outlook 24

25 Singapore Residential Market Private Residential Take-up and Price Index Prices up 31% in 2007 Prices up 31% in 2007 Units 40,000 35,000 Secondary Take-up Primary Take-up Index 180 Private residential prices up 31.2% in 2007 (URA) 30,000 25,000 Price Index Record take-up of 14,826 new units in 2007, up 33% from 2006 (URA) 20,000 15, Looking Ahead Looking Ahead 10,000 5, High-end prices depend on outcome of US sub-prime problems Middle to mass market prices should move up gradually Source : URA and CBRE 25

26 Singapore Office Market 100 Office Rental and Occupancy % S$psf/mth Islandwide Occupancy Grade A Occupancy Prime Rental Grade A Rental Rentals and Occupancy Continue to Rise Rentals and Occupancy Continue to Rise Grade A average rental of $17.15 psf at end-07, up 96.5% from $8.73 psf at end-06 (CBRE) Grade A occupancy of 99.8% at end-07 (CBRE) Take-up of 2.07m sf in 2007 Strong demand from financial institutions, services and oil & gas companies Q04 1Q05 2Q05 3Q05 4Q05 Source : URA and CBRE 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q Looking Ahead Looking Ahead With limited supply of 1.7m sf p.a. over next few years and good demand, rentals should continue to trend upwards 26

27 Overseas Residential Market Promising residential markets in Asia and Middle East Promising residential markets in Asia and Middle East Economic Growth Rising Affluence Favourable Demographics Growing Middle Class and Expatriates Home Ownership Aspirations Urbanisation Trends 27

28 Going Forward 28

29 Going Forward Unlock value from commercial assets in Singapore and overseas Recycle capital into new projects with higher returns SINGAPORE Selectively acquire commercial and residential sites OVERSEAS Continue to pursue residential and township developments FUND MGT Grow funds under management through Alpha and K-REIT Asia 29

30 Singapore Redefining the Skyline and Waterfront Living Marina Bay Financial Centre One Raffles Quay Ocean Financial Centre Marina Bay Suites Marina Bay Suites Stunning 65-storey tower 221 bay-view luxury apartments Unit sizes : 1,500-2,500 sf Marina Bay Residences Marina Bay Suites Reflections at Keppel Bay Reflections at Keppel Bay Reflections at Keppel Bay First residential showcase in Asia of world celebrated master architect Daniel Libeskind Launch more units at Reflections Marina at Keppel Bay 30

31 Project Location Units to Launch Reflections at Keppel Bay (30% stake) * Keppel Bay 400 Park Infinia at Wee Nam * Wee Nam Rd 52 Marina Bay Suites (33.3% stake) Marina Bay 221 The Cairnhill Cairnhill Circle 15 The Tresor * Duchess Rd 34 Madison Residences Bukit Timah Rd 56 * Planned balance units Singapore Residential Launches 2008 The Cairnhill The Tresor Madison Residences 31

32 Overseas Residential Launches Project Launch Schedule Units to Launch China 8 Park Avenue, Shanghai * Villa Riviera, Shanghai * The Botanica, Chengdu * The Arcadia, Tianjin ^ Central Park City, Wuxi * Mixed Development, Jiangyin ^ Residential Township, Shenyang ^ Residential Devt., Nanhui, Shanghai ^ * Balance units ^ New launches The Arcadia, Tianjin Mixed Development, Jiangyin Central Park City, Wuxi 32

33 Project Launch Schedule Overseas Residential Launches Units to Launch Vietnam Saigon Sports City (Ph 1), HCMC ^ The Estella, HCMC ^ Waterfront condo, Binh Thanh District, HCMC ^ Waterfront condo, District 7, HCMC ^ Waterfront township (Ph 1), Dong Nai Province ^ Prime condo, District 2, HCMC ^ Villa devt., District 9, HCMC ^ Prime condo, District 9, HCMC ^ Luxury villa devt., District 9, HCMC ^ 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 ^ Middle East Seafront condo devt., Jeddah, Saudi Arabia ^ Philippines Palmdale Heights (Ph 2), Pasig City ^ SM-KL residential devt., Manila ^ * Balance units ^ New launches 33

34 Overseas Residential Launches The The Arcadia, Arcadia, (168 (168 units) units) Tianjin, Tianjin, China China Seafront Seafront Apartments Apartments (1,000 (1,000 units) units) Jeddah, Jeddah, Saudi Saudi Arabia Arabia The The Estella Estella (1,500 (1,500 units) units) HCMC, HCMC, Vietnam Vietnam Elita Elita Horizon Horizon (1,142 (1,142 units) units) Bangalore, Bangalore, India India Launching about 8,200 units in 2008 Launching about 8,200 units in

35 Thank You 35

36 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. 36