Investor Meetings. April Content. Introduction Strategic Focus Updates Recent Awards Market Outlook Summary

Size: px

Start display at page:

Download "Investor Meetings. April Content. Introduction Strategic Focus Updates Recent Awards Market Outlook Summary"

Trevor Carson
5 years ago
Views:

1 Investor Meetings April Content Introduction Strategic Focus Updates Recent Awards Market Outlook Summary 2 1

2 Introduction 3 Introduction Premier Property Total assets of $6.6 bil 31 Dec 2009 Company Market cap of $5.3 bil 26 Mar 2010 Leading Prime Office Player Developer of One Raffles Quay, Marina Bay Financial Centre and Ocean Financial Centre in Singapore s Crown Jewel Marina Bay Asia s Quality Home Developer Focus on thematic residential and township developments in Singapore, gp China, Vietnam, India and Indonesia Established Property Fund Manager Manager of four property funds and a pan Asian commercial REIT 4 2

Vision and Mission Vision To be the premier multi national l corporation providing urban living solutions through the twin core businesses of property development and property fund management.

3 Vision and Mission Vision To be the premier multi national l corporation providing urban living solutions through the twin core businesses of property development and property fund management. Mission We are committed to create live work play environments of enduring value for the community with our hallmark excellence, and achieve sustainable higher returns for our shareholders. 5 International Presence About 70,000 Homes in the Pipeline Across Asia and the Middle East 6 3

4 Strategic Focus 7 Strategic Focus Two Core Businesses SINGAPORE Commercial developments mainly in Marina Bay and CBD Residential developments including lifestyle waterfront projects OVERSEAS Residential developments including townships, sustainable developments and integrated lifestyle projects Commercial developments selectively Property Development for Sale Property Fund Management K REIT Asia to recycle capital Fee based income from fund management with greater AUM 8 4

5 Updates 9 Singapore 10 5

Singapore Capitalising on Demand for Developments in Close Proximity to IRs Reflections at Keppel Bay Marina Bay Sands Resorts World

condominium units 96% of 740 launched units sold 29 out of 30 units sold within one weekend in Mar 2010 Proximity to Resorts World

preview and sold 89 out of 90 units previewed Proximity to Marina Bay Sands integrated resort 11 Singapore Redefining Quality Live Work

luxury residential development in the Marina Bay area One Raffles Quay Ocean Financial Centre Platinum level LEED CS pre certification

6 Singapore Capitalising on Demand for Developments in Close Proximity to IRs Reflections at Keppel Bay Marina Bay Sands Resorts World Sentosa Marina Bay Suites Reflections at Keppel Bay Designed by world renowned master architect Daniel Libeskind Total : 1,129 waterfront condominium units 96% of 740 launched units sold 29 out of 30 units sold within one weekend in Mar 2010 Proximity to Resorts World Sentosa and Universal Studios Marina Bay Suites Final phase of luxurious residences within MBFC Total of 221 units : Commenced sales preview and sold 89 out of 90 units previewed Proximity to Marina Bay Sands integrated resort 11 Singapore Redefining Quality Live Work Play Environments at Marina Bay Marina Bay Financial Centre Set to be the location of choice for tenants Marina Bay Suites Final phase of luxury residential development in the Marina Bay area One Raffles Quay Ocean Financial Centre Platinum level LEED CS pre certification Marina Bay Residences Fully sold out luxury residential development Marina Bay Sands (Integrated Resort) Keppel Land s projects located nearby to the IR 12 6

Singapore Premier Office Landmark in Singapore s Crown Jewel Marina Bay MBR T3 T2 MBS T1 Marina Bay

6m sf 81% pre leased Nomura : 102,000 sf BHP Billiton : Additional 89,000 sf (Total : 231,000 sf) Phase 2

leased : 17% (142,000 sf) 4 th generation building on site : To be completed in mid 2011 13 K REIT Asia

balance sheet Raised gross proceeds of approximately $620m Latest assets acquired : Additional six strata

7 Singapore Premier Office Landmark in Singapore s Crown Jewel Marina Bay MBR T3 T2 MBS T1 Marina Bay Financial Centre Phase 1 : 1.6m sf 81% pre leased Nomura : 102,000 sf BHP Billiton : Additional 89,000 sf (Total : 231,000 sf) Phase 2 : 1.3m sf 55% pre leased Overall pre commitment : About 69% Ocean Financial Centre NLA : 850,000 sf Pre leased : 17% (142,000 sf) 4 th generation building on site : To be completed in mid K REIT Asia Enhanced Financial Position to Pursue Quality Assets Positioned for acquisitions Rights issue strengthened balance sheet Raised gross proceeds of approximately $620m Latest assets acquired : Additional six strata floors of Prudential Tower and increased stake from 44.4% to 73.4% 275 George Street 50% stake in 275 George Street in Brisbane, Australia Portfolio size increased to $2.3bn Prudential Tower 14 7

8 Alpha Investment Partners Seeking Investment Opportunities in Asia Alpha AsiaMacro Trends Fund Targeted at developed and fast emerging markets with focus on prominent trends in Asia such as : Rise of consumerism, tourism and home ownership Emergence of REITs Aging populations Key Asian cities as education hubs Strong financial position to seek acquisition : About 22% of $1.7 bn invested as at end Dec 2009 Invested in four deals in 2009 Two retail properties in Tokyo Office building in Gangnam, Seoul A portfolio of four serviced apartments in Hong Kong (1) As at end Dec 2009, when fully leveraged and fully invested (2) Includes asset revaluation, Prudential Tower strata acquisition and 50% interest in 275 George Street, Brisbane, Australia As at end Dec 2009 : Funds under Alpha TtlAUM Total AUM: $10.0 bn Alpha Investment Partners : $7.7 bn (1) K REIT Asia : $2.3 bn (2) Committed % Equity Invested No. of Countries Invested In Asia No. 1 Property Fund $400m 100% 5 Alpha Core Plus Real Estate Fund $720m 100% 4 AIB Alpha Japan Fund $259m 46% 1 Alpha Asia Macro Trends Fund $1.7bn 22% 4 15 Overseas 16 8

Overseas China Keppel Land s Extensive Presence in China InChina since early

Presence in 10 cities in key regions Total GFA : 7.

Condominiums i Villas Townships Tianjin Eco City About 15% of assets invested

Kunming Zhongshan Western Region Greater Bohai Rim Region Yangtze River Delta

Expanded presence in China with acquisition of waterfront township site in

delisting of Evergro Maximise potential of existing portfolio Total land area:

9 Overseas China Keppel Land s Extensive Presence in China InChina since early 1990s Secured first residential project, One Park Avenue in Shanghai in 2000 Presence in 10 cities in key regions Total GFA : 7.2 million sm More than 30,000 homes in the pipeline Types of development Condominiums i Villas Townships Tianjin Eco City About 15% of assets invested in China About $1 billion Chengdu Shenyang Beijing Tianjin Jiangyin Changzhouh Kunming Zhongshan Western Region Greater Bohai Rim Region Yangtze River Delta Region Wuxi Shanghai 17 Overseas China Strengthen Competitive Position in China Expanded presence in China with acquisition of waterfront township site in Shenyang Second township in Shenyang Stronger growth platform in China with delisting of Evergro Maximise potential of existing portfolio Total land area: 30.3 ha No. of units : About 5,700 units Tianjin Eco City Increased landbank by 3.2millionsmGFA Widen footprint in secondary cities 18 9

Overseas China Large Scale Townships to Meet Rising Demand Central Park City, Wuxi Sold in 2009 : 732 units Total in Phase 2 : 1,627 units Launch

units) in 2Q 2010 The Seasons, Shenyang Total : 4,748 units Launch : Phase 1 (1,716 units) in 2H 2010 Launch : Phase 1 (810 units) in 2H 2010 19

Proximity it to Beijing, complements China s political l and cultural l hub Good infrastructure support Industry clusters to provide critical

S pore (2) 45% 35% 20% 90% 10% Chinese Consortium 50% 50% Tianjin Eco City (JV) Registered Capital : RMB 4 billion (1) Summarised graphical

10 Overseas China Large Scale Townships to Meet Rising Demand Central Park City, Wuxi Sold in 2009 : 732 units Total in Phase 2 : 1,627 units Launch : Stage 1 (342 units) in 2Q 2010 Tianjin Eco City Total : 5,033 units The Botanica, Chengdu Sold in 2009 : 1,237 units Launch : Phase 5 (1,810 units) in 2Q 2010 The Seasons, Shenyang Total : 4,748 units Launch : Phase 1 (1,716 units) in 2H 2010 Launch : Phase 1 (810 units) in 2H Sino Singapore Tianjin Eco City Well positioned to Capitalise on Growth in Tianjin Located in the strategic Tianjin Binhai New Area and Bohai Rim Proximity it to Beijing, complements China s political l and cultural l hub Good infrastructure support Industry clusters to provide critical mass for home demand Tianjin Eco City shareholding structure (1) : Keppel Corporation Keppel Land Keppel Integrated Engineering Singbridge Int l S pore (2) 45% 35% 20% 90% 10% Chinese Consortium 50% 50% Tianjin Eco City (JV) Registered Capital : RMB 4 billion (1) Summarised graphical representation and not the legal representation of the shareholding structure (2) A wholly owned subsidiary of Temasek Holdings Ltd Singapore Consortium 20 10

Sino Singapore Tianjin Eco City Building a Model for Sustainable Development TianjinEco City Entire Start up Area

of homes > 100,000 >20,000 Population (approx.) 350,000 85,000 Keppel s 35.

first development for Phase 1 : Total : 1,716 units Launch : 2H 2010 Keppel s 35.

Township development at South Rach Chiec, District 2 Site area : 30 ha Total : About 4,700 units fronting South Rach

11 Sino Singapore Tianjin Eco City Building a Model for Sustainable Development TianjinEco City Entire Start up Area Development (SUA) Size 30 sq km 4 sq km Development period years 3 5 years No. of homes > 100,000 >20,000 Population (approx.) 350,000 85,000 Keppel s 35.4 ha site in SUA Shareholding structure : KLL : 55%, KCL : 45% Total : 5,033 homes plus office and retail Commenced first development for Phase 1 : Total : 1,716 units Launch : 2H 2010 Keppel s 35.4 ha site 21 Overseas Vietnam Enlarged Residential Portfolio in HCMC, Vietnam Acquired new lifestyle waterfront sites Township development at South Rach Chiec, District 2 Site area : 30 ha Total : About 4,700 units fronting South Rach Chiec river Phase 1 launch : 2011 Villa development, District 12 Site area : 11.3 ha Total : 175 villas fronting Saigon River Phase 1 launch : 2011 More than 22,000 homes in the pipeline Waterfront township development at South Rach Chiec 22 11

Overseas Vietnam Riding on Continued Demand for Quality Homes The Estella,HCMC Riviera

Award 9.7 ha riverfront site in emerging residential suburb District 9 8.

villas Total : 2,400 riverfront condos 67% of 633 launched units sold as at end Dec 2009

12 Overseas Vietnam Riding on Continued Demand for Quality Homes The Estella,HCMC Riviera Cove, HCMC Riviera Point, HCMC First development in Vietnam to obtain Green Mark Gold Award 9.7 ha riverfront site in emerging residential suburb District ha site in popular District 7 Total : 1,393 high end condos Total : 96 resort style villas Total : 2,400 riverfront condos 67% of 633 launched units sold as at end Dec 2009 Launched in Nov 2009 : 82% of 60 launched units sold as at end Dec 2009 Launch : 2Q Recent Awards 24 12

13 Recent Awards Best Annual Report (Gold) at Singapore Corporate Awards Market capitalisation of $1 bn and above Business Times revised Governance and Transparency Index (1) Ranked 10 out of 697 companies FIABCI Indonesia BNI Prix d Excellence Award d2009 Jakarta Garden City Best Middle Class Residential Development Shortlisted to represent Indonesia at the FIABCI World Congress ISO certification S pore property development and property management operations and overseas property development operations LEED (2) Award Ocean Financial Centre Platinum level LEED CS pre certification BCA Green Mark Awards The Promont Gold Marina Bay Suites Gold Sixth Avenue Residences Gold MBFC Phase 2 (Commercial) Gold Plus One Raffles Quay Gold(First building to achieve Green Mark Award under guidelines for existing devts) Riviera Cove, HCMC Gold The Arcadia, Tianjin Gold Residential Development, Pudong, Shanghai (Plots 1 and 3) Gold Spring City (Residential La Quinta), Kunming Gold (1) Replaced Business Times Corporate Transparency Index (2) Leadership in Energy and Environmental Design 25 Market Outlook 26 13

14 Strong new homes sales 2,676 units sold in January and February 2010 Singapore Residential Momentum continuing from2009 when 14,668 units were sold, close to record take up of14,811 unit sold in 2007 Pre emptive government measures to curb speculation and ensure sustainable growth Favourable drivers supporting housing demand Increased buying interests from foreigners and PRs Demand from owner occupiers and investors Spin off effects from IRs to elevate Singapore's profile as a cosmopolitan city Decline in rents ease as business confidence returns Pick up in office leasing activities Commercial Reduction in office supply New office supply from of about 4.1 million sf (1) (or 0.68 million sf per annum) Delays in construction and conversion of office space to other uses (eg. residential and hotel) to reduce supply No new commercial site in CBD area under Government Land Sales programme for 1H 2010 Singapore remains key business destination in longer term Establishing multi hubs in various sectors e.g. financial services, logistics, bio science and education (1) Excluding estimated pre committed space of about 3 million sf 27 Overseas Asia : Property market stabilises as Asia gradually emerges from the global recession Recovery drives di home sales and prices Government measures to cool speculation and promote healthy recovery of the property sector Long term fundamentals and growth to underpin demand HOME OWNERSHIP ASPIRATIONS Economic Growth Favourable Demographics Growing Middle Class Rising Affluence Urbanisation Trends 28 14

15 Summary 29 Summary Seek acquisitions iii in Singapore and overseas with ihcontinued focus on developing quality residential, office and township projects K REIT Asia and Alpha to seek acquisitions of quality assets in Singapore and overseas Explore opportunities to unlock value from non core assets at appropriate time 30 15

16 Thank You 31 Additional Slides 32 16

17 Financial Highlights FY 09 vs FY 08 FY2009 FY2008 % Chg Turnover $923.9m 9m $842.2m2m EBITDA $211.4m $239.4m (11.7) Operating Profit $201.9m $231.7m (12.9) Pre tax Profit $358.6m $314.0m 14.2 PATMI Before Net Fair Value Gain/ Others* After Net Fair Value Gain/ Others* $250.2m $280.4m $213.3m $227.7m *Net fair value gain on investment properties (after adjusting for tax and minority interests) and gain on acquisition of additional interest in K REIT Asia 33 5 Year Financial Profile FY2009 FY2008 FY2007 FY2006 FY2005 Turnover ($m) Operating Profit ($m) Pre tax Profit ($m) PATMI ($m) (1) (1) (2) Overseas Earnings (% of PATMI) EPS ( ) (3) NTA/Share ($) Net Debt/Equity Ratio (x) (1) Includes gain on acquisition of additional interest in K REIT Asia and net gain on revaluation of investment properties (2) Includes corporate restructuring surplus from sale of ORQ and net gain on revaluation of investment properties less impairment provision (3) EPS have been restated to include the effects of the rights issue in

18 Geographical Breakdown as at FY09 Asset Allocation By Geographical Location (31 Dec 2009) PATMI* By Geographical Location (31 Dec 2009) Indonesia 8% Vietnam 9% India 1% Others 4% Indonesia, 1.4% Vietnam, 6.5% India, 1% Others, 0.2% China 15% China, 22.3% Singapore 63% Singapore, 68.6% *Before net fair value gain on investment properties (after adjusting for tax and minority interests) and gain on acquisition of additional interest in K REIT Asia 35 Financial Ratios FY2009 FY2008 % Chg EPS Before Net Fair Value Gain* 22.6cts 22.1cts (1) 2.3 After Net Fair Value Gain* 24.2cts 22.4cts (1) 8 ROE Before Net Fair Value Gain* 9.4% 9.7% (3.1) After Net Fair Value Gain* 10.1% 9.9% 2 NTA / Share $2.36 (2) $3.39 (30.4) Net Debt/Equity Ratio 0.22x 0.52x (57.7) * Net fair value gain on investment properties (after adjusting for tax and minority interests) (1) EPS has been restated to include the effects of the rights issue in 2009 (2) Lower due to the effect of the rights issue 36 18

19 Active Capital Management FY2009 FY2008 Net Db Debt $0.8 bn $ bn Avg Interest Rate of Borrowings 2.3% 2.5% % Fixed Rate Debt 26% 15% Avg Debt Maturity 1.49 yrs 2.03 yrs Interest Cover Ratio (1) 12.7x 10.4x (1) Interest Cover Ratio = Profit Before Interest and Tax Net Interest Cost Expensed and Capitalised 37 Singapore Residential Landbank Project Location KLL's Tenure Attributable Attributable Total Stake Land Area GFA Units (%) (sf) (sf) Reflections at Keppel Bay (1) Keppel Bay 30% 99 yr 269, ,521 1,129 Marina Bay Suites (1) Marina Bay 33.3% 99 yr 19, , The Promont (1) Cairnhill Circle 100% Freehold 11,183 31, 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 603,037 1,073,405 2,000 (1) Includes units sold 38 19

20 China Residential Launches Units to Launch Park Avenue, Shanghai (1) Villa Riviera, Shanghai (1) 23 The Botanica, Chengdu (1) 595 1,701 1,435 The Arcadia, Tianjin (1) 86 Central Park City, Wuxi (1) The Seasons, Shenyang (2) ,300 Waterfront Township Devt, Shenyang (2) Residential Devt, Pudong, Shanghai (2) Integrated Marina Lifestyle Devt, Zhongshan (2) Stamford City, Jiangyin (1) Summer Ville, Changzhou (1) 5 Serenity Cove, Tianjin (Ph 3) (1) Tianjin Eco City (35.4 ha within SUA) (2) ,284 Total 3,735 5,914 6,244 (1) Balance units (2) New launches 39 Other Overseas Residential Launches Units to launch Vietnam The Estella, Dist. 2, HCMC (1) Riviera Point, Dist. 7, HCMC (2) Prime Condo, Dist. 2, HCMC (2) Riviera Cove (Villa Devt.), Dist. 9, HCMC (1) 47 Saigon Sports City, HCMC (2) Dong Nai Waterfront City (2) South Rach Chiec, Dist 2, HCMC (2) Waterfront Villa Development, Dist 12, HCMC (2) Thailand Villa Arcadia at Srinakarin, Bangkok (1) Villa Arcadia at Watcharapol, Bangkok (1) India Elita Promenade, Bangalore (1) 256 Elita Horizon, Bangalore (2) Elita Garden Vista, Kolkata (1) Indonesia Jakarta Garden City (1) Middle East Waterfront Apartment Devt., Jeddah, Saudi Arabia (2) Total 1,781 3,103 3,327 (1) Balance units (2) New launches 40 20

21 China Residential Landbank Site Location KLL's Stake Total Land Area Total GFA Remaining Area for Sale Remaining Units for Sale (%) (sm) (sm) (sm) 8 Park Avenue Shanghai 99% 33, ,393 65, Park AvenueCentral Shanghai 99% 28,488 99,708 99, Villa Riviera Shanghai 99% 153,726 53,796 8, The Arcadia Tianjin 100% 127,970 74,826 40, Central Park City Wuxi 49.7% 352, ,510 (2) 415,207 (1) 3,537 The Botanica Chengdu 44.1% 419,775 1,042,846 (1) 445,987 (1) 4,930 Stamford City Jiangyin 82.9% 82, ,338 (2) 234,693 (2) 879 The Seasons Shenyang 100% 348, , ,032 4,748 Waterfront Township Devt Shenyang 99.8% 302, , ,080 (2) 5,695 Residential Devt, Pudong Shanghai 99% 264, ,458 (2) 317,659 (1) 2,667 Integrated Marina Lifestyle Devt Zhongshan 80% 827, , ,774 2,855 Summer Ville Changzhou 100% 46,108 64, Serenity Cove (Ph 3) Tianjin 100% 128,685 80,000 79, Tianjin Eco City (35.4 ha within SUA) Tianjin 55% 354, , ,500 5,033 Mixed Devt (A) Tianjin 100% 1,000,000 1,500,000 1,500,000 na Mixed Devt (B) Tianjin 100% 666,665 1,666,665 1,666,665 na Total 5,137,268 8,357,049 7,200,908 31,887 (1) Excludes commercial area (2) Includes commercial area 41 Other Overseas Residential Landbank KLL's Total Land Area Total GFA Remaining Area for Sale Remaining Units for Sale Country Site Stake (sm) (sm) (sm) Units India Elita Promenade 51% 96, ,237 40, Elita Horizon 51% 79, , ,680 1,138 Elita Garden Vista 37.7% 93, , , Sub total 269, , ,636 2,251 Indonesia Jakarta Garden City Phase 1 51% 143, ,839 88, Jakarta Garden City Remaining phases 827, , ,890 7,403 Sub total 971,904 1,148,729 1,087,965 8,016 Thailand Villa Arcadia at Srinakarin 45.5% 159,706 84,440 71, Villa Arcadia at Watcharapol 66.7% 124,912 68,314 80, Sub total 284, , , Vietnam Saigon Sports City, HCMC 90% 640, ,222 (2) 290,100 (1) 2,318 The Estella, HCMC 55% 47, ,851 (2) 148,213 (1) 968 Riviera Point, Dist. 7, HCMC 75% 85, ,566 (2) 289,401 (1) 2,400 Dong Nai Waterfront City 50% 3,667,127 1,979,727 (2) 1,576,190 (1) 10,434 Prime Condo, Dist. 2, HCMC 60% 51, , ,464 1,500 Riviera Cove(Villa), Dist. 9, HCMC 60% 97,000 35,190 25, South Rach Chiec, Dist 2, HCMC 42% 300, ,000 (1) 641,750 (1) 4,700 Waterfront Villa Development, Dist 12, HCMC 60% 113,098 40,715 56, Sub total 5,001,726 4,457,071 3,194,340 22,542 Middle East Waterfront apartment Devt., Jeddah, Saudi Arabia 51% 36, , , , , , Philippines Palmdale Heights(Ph2), Manila 30.9% 15,976 62,751 62,751 1,264 SM KL Residential Devt. Manila 24.2% 7,068 56,000 56, Sub total 23, , ,751 1,694 Total 6,587,321 6,670,229 5,132,286 35,978 (1) Excludes commercial area 42 (2) Includes commercial area 21

Strategic Location in CBD and Marina Bay Area Close proximity to MRT

Quay Keppel Towers GE Towers Properties held under KREIT Asia : Keppel

interest) 43 Developments to Benefit from Downtown Line Madison

22 Strategic Location in CBD and Marina Bay Area Close proximity to MRT interchange station and new Downtown line Prudential Tower One Raffles Quay Keppel Towers GE Towers Properties held under KREIT Asia : Keppel Towers & GE Towers, Prudential Tower and One Raffles Quay (1/3 interest) 43 Developments to Benefit from Downtown Line Madison Residences Source: LTA as at 14 October 2009 DTL 1 & DTL 2 : Its schematic profile, alpha numeric codes and end destination numbers are subjected to confirmation Marina Bay Financial Centre Marina Bay Suites Marina Bay Residences 44 22

23 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 on the current views of Management on future developments and events

Investor Meetings. August Content. Introduction Strategic Focus Updates Market Review & Outlook Going Forward Recent Awards

Investor Meetings. August Content. Introduction Strategic Focus Updates Market Review & Outlook Going Forward Recent Awards Investor Meetings August 2010 1 Content Introduction Strategic Focus Updates Market Review & Outlook Going Forward Recent Awards 2 1 Introduction 3 Introduction Premier Property Company Total assets of