Investor Meetings. August 2005

Size: px

Start display at page:

Download "Investor Meetings. August 2005"

Madison King
6 years ago
Views:

1 Investor Meetings August

2 Highlights Introduction Financial Highlights Operations Review Market Outlook Going Forward 2

3 Introduction 3

4 Corporate Profile One of the largest listed property companies in Singapore, property arm of Keppel Corporation Total assets :S$4.8 bil Shareholders funds :S$1.6 bil Market capitalisation :S$2.4 bil (Share price of 19/8/05) Established developer of quality housing and investmentgrade offices Diversified in Asia with focus in Singapore, China, Thailand, Vietnam, India and Indonesia Part of MSCI and EPRA / NAREIT indices 4

5 Strategic Focus Continue property development for sale in the region Unlock value of investment properties Grow property fund management 5

6 Country Focus Focus Singapore, China, Thailand, Vietnam, India and Indonesia Selectively acquire land for development for sale Active Hong Kong, Japan, S.Korea, Malaysia and Philippines Monitor markets for any future opportunities 6

7 Expanding Drive Entering new countries and new cities Launched first condo project and acquired second project in Bangalore, India Acquired land for villa project in Tianjin, China Developing residential townships in the region Launched first township in Chengdu, China Launching Saigon Sports City township in Ho Chi Minh City, Vietnam Developing residential township in Jakarta, Indonesia 7

8 Overseas Pipeline Next 2-5 Years Beijing (1,000) Tianjin (160) Chengdu (3,200) Shanghai (1,500) Bangkok (600) Bangalore (2,500) Ho Chi Minh City (1,000) Jakarta (1,200) Over 11,000 units to be launched 8

9 Financial Highlights 9

10 Financial Performance S$m 1H2005 FY2004 FY2003 Turnover EBITDA Operating Profit Pre-tax Profit PATMI after EI % of overseas PATMI

11 Key Ratios 1H2005 FY2004 FY2003 FY2002 EPS ( ) NTA/Share ($) Debt/Equity Ratio Annualised ROE (%)

12 Net Profit - by Business Segment 1H2005 FY2004 FY2003 Business Segment S$m S$m S$m Property Others Investment Trading Hotels / Resorts (6.7) (6.2) (14.3) Property Services / Others PATMI after EI

13 Net Profit - by Geographical Location Geographical 1H2005 FY2004 FY2003 Location S$m % S$m % S$m % Singapore Other Countries PATMI after EI Achieved >50% earnings from overseas 13

14 Operations Review 14

15 Operations Review Singapore Capitalised on recent positive sentiment by launching new phases The Belvedere (82% of 120 launched units sold) Caribbean (87% of 160 launched units sold) Secured blue-chip tenants for new landmark office development One Raffles Quay ABN AMRO, Deutsche Bank and UBS among anchor tenants 15

16 Operations Review Singapore Unlocked value by divesting Bugis Junction retail mall and consolidating office tower into investment portfolio to enhance divestment options KLL s office portfolio in Singapore: Attributable gross lettable area of 1.5m sf Announced intention to set up an office REIT 16

17 Operations Review Singapore Won the 3.55-ha Business & Financial Centre (BFC) site at New Downtown with Cheung Kong and Hongkong Land One Marina Boulevard Keppel Land-Harrah s JV to bid for worldclass Integrated Resorts at Marina Bayfront and Sentosa One Raffles Quay The Marina Bay Bayfront MRT Station Landmark MRT Station Integrated Resort & Casino 17

18 Operations Review Closer look at BFC Total GFA : 4.7m sf At least 60% for office use, remaining 40% can be for residential / retail use Strategic location Within new downtown area, close to future Integrated Resort Linked to Raffles Place MRT station and future Landmark and Bayfront MRT stations Flexible development approach Phase 1 minimum GFA 100,000 sm Option period for future phases can be 6, 8 and 10 years One Raffles Quay provides relevant experience for BFC Allows KLL to capitalise on expertise and experience for the development of waterfront homes and offices 18

19 Operations Review Overseas Even as KLL acquired new sites in India and China, it softlaunched condominium Elita Promenade in Bangalore and sold 68% of 230 launched units within a short period Sales of residential projects in China continue to progress : 8 Park Avenue (Shanghai) : 81% of 456 launched units sold The Seasons (Beijing) : 92% of 932 launched units sold The Waterfront (Chengdu) : 84% of 817 launched units sold The Botanica township (Chengdu) : 86% of 970 launched units sold 19

20 Fund Management Operations Review Rationale : Tap on strong interest from institutions from US and Europe in Asian property markets Two funds set up - Asia No. 1 Property Fund (Asia 1) and Alpha Core Plus Real Estate Fund (ACPREF) Asia 1 achieved total equity size of US$243m, about 50% invested Investments made in Japan, South Korea, Hong Kong and Singapore ACPREF raised US$165m in the first closing, about 30% invested Investments in income-generating assets in more developed Asian countries Total assets under management will be about US$1 billion when the two funds are fully invested 20

21 Recent Awards Recognition for Corporate Transparency Only property developer in Top 20 among 630 companies in Business Times - Corporate Transparency Index in 2005 Top five among Singapore listed companies in a study by Standard & Poor s and NUS in 2004 First among real estate companies and sixth among Singapore companies in a survey by Institutional Shareholder Services and Business Week in 2004 Recognition for Excellence in Product Quality Prudential Tower - Winner in the Office / Industrial category of the FIABCI Prix d Excellence Award in

22 Recent Awards Recognition for Excellence in Product Quality 8 Park Avenue, Shanghai Shanghai Top 10 International-grade Residential Property by People s Daily The Seasons, Beijing China Innovative New Project Award by Sina.com The Waterfront, Chengdu - Recommended Project with Good Investment Value by Chengdu Housing Bureau in 2005 The Botanica township, Chengdu Project with Good Investment Value by Chengdu Real Estate Brand Promotion Centre Spring City Golf and Lake Resort, Kunming - No. 1 Golf Course in China in 2005 by US Golf Digest Ria Bintan Golf Club, Bintan - Best Golf Course in Asia 2004 (2nd Runner - up) by Asian Golf Monthly 22

23 Market Outlook 23

24 Residential Market Outlook - Singapore Residential market improved Over 4,000 new units (completed and uncompleted) sold in 1H05, 60%higher than same period last year Prices rose 2.4% from 1H04 Market poised to improve further with positive measures Home prices to edge up with increased volume Greater affordability due to reduced cash outlay with higher mortgage quantum More foreigners entering market (about 15% or 543 of 3,646 buyers of new uncompleted units in 1H05, three times more than 1H04) 24

25 Residential Market Outlook - Singapore Demand and prices on an upward trend 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Total Primary Demand Price Index Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 Source : URA 25

26 Market Outlook - Singapore Office Positive outlook for prime office space due to rising demand Singapore becoming major international hub for businesses and services Steady GDP growth of 4% in 1H05; full year GDP forecast of % Islandwide occupancy rose from 82.7% at end-1h04 to 85.7% at end-1h05 (Source : URA) Grade A CBD occupancy stands at 91% (Source : CBRE) Average Grade A rentals at S$4.90 psf (Source : CBRE) 26

27 Market Outlook - Singapore Office Limited new supply of Grade A space for next few years BFC (Phase 1) ready only in 2010 Office Supply ( ) Expected Completion Proposed Office Projects NFA (sf) Total NFA (sf) 2005 No new supply Church Street 292,781 Parakou Building 63,723 One Raffles Quay 1,310,000 VisionCrest 148,000 SIF Redevelopment 68,000 1,882, No new supply Central 411, , No new supply - - Total 2,293,671 Source : CB Richard Ellis Global Research & Consulting 27

28 Market Outlook - Singapore Office Rentals and occupancy improved further % Islandwide Occupancy S$psf/mth Prime Rentals Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 Source : URA 28

29 Market Outlook - Singapore Office Attractive office rental rates compared with other major cities Global 50 Index (by occupation cost in US$ psf per annum) Ranking City US$/sf/annum Ranking City US$/sf/annum 1 London (West End), England New York - Midtown Manhattan Tokyo (Inner Central), Japan Rome, Italy Tokyo (Outer Central), Japan New Delhi, India London (City), England Washington DC (CBD) Paris, France Ho Chi Minh City, Vietnam Dublin, Ireland Amsterdam, Netherlands Hong Kong Shanghai (Pudong), China Edinburgh, Scotland Sydney, Australia Frankfurt, Germany Boston (CBD) Seoul, South Korea Shanghai (Puxi), China Milan, Italy Ottawa, Canada Mumbai (Bombay), India Singapore 33.71(S$4.70psf/mth) Source: CB Richard Ellis USD:SGD=

30 Market Outlook - Singapore Remaking Singapore into a world-class city Large-scale projects to position Singapore as Global City of the 21st century eg. Integrated Resorts Development of vibrant new downtown at Marina Bayfront Source : Jones Lang LaSalle 30

31 Market Outlook - Asia Asian demand for quality homes and well-planned residential townships to grow at sustained pace in countries especially China, Vietnam, Thailand, India and Indonesia Housing demand underpinned by economic growth, urbanisation, favourable demographics trends and positive government policies 31

32 Going Forward 32

33 Going Forward Singapore Launch and develop residential projects from landbank of about 3,000 units according to market demand Seek development opportunities with good potential returns eg. Integrated Resort Set up an office REIT initially with some of office buildings in KLL s portfolio 33

34 Possible Residential Launches Singapore 2005 Units to Project Location Launch Cluny Hill Bungalow Plots * Cluny Hill 3 Caribbean at Keppel Bay * Keppel Bay Drive 222 # Urbana * River Valley Rd 40 The Belvedere * Meyer Rd 69 Park Infinia at Wee Nam (Ph1) ^ Wee Nam Rd 200 Devonshire Rd (60% stake) ^ Devonshire Rd 160 * Balance units ^ New launches # Excluding 168 units set aside for corporate leasing 34

35 Going Forward Overseas Keep up expansion drive in Asia in promising countries, cities and market segments Launch residential and township projects from pipeline of over 11,000 units in China, Thailand, Vietnam, India and Indonesia 35

36 Overseas Residential Projects Units to Launch Project Launch Commencement China 8 Park Avenue, Shanghai * 576 2H2005 The Seasons, Beijing * 1,002 2H2005 The Waterfront, Chengdu * 454 2H2005 Great Town Harbour, Fuzhou (Ph1) * 335 2H2005 The Botanica (Phase 1), Chengdu * 131 2H2005 The Botanica (Phase 2), Chengdu ^ 1,476 1H2006 Xujing Villas, Shanghai ^ 186 1H2006 Tianjin Villas, Tianjin ^ 160 2H2006 The Botanica (Phase 3), Chengdu ^ 927 2H2007 Park Avenue Central, Shanghai ^ 708 2H2007 * Balance units ^ New launches 36

37 Overseas Residential Projects Units to Launch Project Launch Commencement Vietnam Villa Riviera, Ho Chi Minh City * 99 2H2005 Saigon Sports City (Phase 1), HCMC ^ 782 1H2006 Thailand Villa Arcadia at Srinakarin, Bangkok * 326 2H2005 Villa Arcadia at Watcharapol, Bangkok ^ 270 1H2006 India Elita Promenade in JP Nagar, Bangalore * 1,416 2H2005 Condominium in Kanakapura, Bangalore ^ 1,064 2H2006 Indonesia Cakung Township (Phase 1), Jakarta ^ 1,156 2H2006 * Balance units ^ New launches 37

38 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. 38

39 Extra Slides 39

40 Singapore Residential Landbank Residential landbank of about 2.1 mil sf of attributable gross floor area Site Location Tenure Attributable Attributable Total Land Area GFA Units (sf) (sf) The Tresor Duchess Road 999-yr 80, , Park Infinia at Wee Nam Wee Nam Road Freehold 233, , Devonshire Road (60%)^* Devonshire Road Freehold 47, , Avenue Park (52%)* Sixth Avenue Freehold 89, , Cairnhill Cairnhill Road Freehold 11,183 31, Naga Court Bukit Timah Road Freehold 49, , Keppel Bay Plots 1,3, 5 & 6 (30%)* Keppel Bay Drive 99-yr 577, ,982 1,723 # Keppel Bay Plot 4(11.7%)* Keppel Bay Drive 99-yr 36,830 40, # Total 1,127,212 2,054,013 2,916 * Percentage denotes KLL s shareholding # Estimate ^ Based on amalgamated site 40

41 Singapore Projects Caribbean at Keppel Bay Urbana The Belvedere 41

42 Overseas Projects Xujing Villas The Botanica Elita Promenade, Bangalore 42

43 Market Outlook - Singapore Singapore among world s friendliest countries in immigration laws and talent management policies in PricewaterhouseCoopers (PwC) survey of 131 MNCs Source : PwC 43

44 Office Market Outlook - Singapore Improved cost competitiveness, ranking 92nd among 113 cities in 44 countries Global Office Occupancy Costs (in US$ per workstation per annum) Source: DTZ City US$ City US$ London (West End) 19,330 New York City (Downtown) 7,760 Paris 15,520 Moscow 7,240 Washington D.C. 14,250 Mumbai 6,670 Frankfurt 13,640 New Delhi 5,140 Tokyo (Central 5 Wards) 13,400 Perth 4,980 Munich 12,010 Dubai 4,780 Edinburgh 9,680 Taipei 4,570 Hong Kong 9,320 Beijing 4,290 Seoul 9,320 Shanghai (Puxi) 4,150 Sydney 7,790 Singapore 3,970 World s top location for outsourcing in 60 country survey by EIU Highest number of offshore projects relative to population 4th overall ahead of Hong Kong, Philippines and Thailand 44

45 Market Outlook - Singapore Office Safe place to do business in Asia Lowest in terms of social and political risks in Asian countries Socio-political Risks in Asia* Singapore Japan Malaysia Hong Kong China Vietnam Taiwan South Korea Philippines Thailand India Indonesia *Grades range from zero to ten, with zero being the least risk Source: Political & Economic Risk Consultancy Ltd 45

46 Office Market Outlook - Singapore Best Asian country and fourth in the world in terms of business reputation Reputation of country as a Business Location* Average USA Australia Ireland Singapore Denmark South Africa Maylaysia New Zealand Canada India *China not included Source: Taylor Nelson Sofres Global Reputation Study

Investor Meetings. June 2007

Investor Meetings. June 2007 1 Investor Meetings June 2007 Highlights Introduction Operations Review Market Outlook Going Forward 2 3 Introduction Introduction Premier property company Total assets of $5.6 bil @ 31 Mar 07 Market cap