Positive rental reversions in Hong Kong portfolio. Rising contribution from Singapore office portfolio. Strong performance from Residential business

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Marion Lyons
5 years ago
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2 2012 Review The Group performed well in 2012 Positive rental reversions in Hong Kong portfolio Rising contribution from Singapore office portfolio Strong performance from Residential business 2

3 Highlights US$703m Underlying profit attributable to shareholders US$777m US$4,603m Non-trading items US$662m US$5,306m Profit attributable to shareholders US$1,439m US Underlying earnings per share US US Earnings per share US US$10.58 NAV per share US$11.11 US Final dividend per share US US Total dividend per share US

4 Commercial Property

5 Commercial Portfolio ( 000 sq. ft NFA) HKL s SHARE Office Retail Hotel Total Hong Kong 4, ,884 Macau Singapore 1, ,785 Jakarta Hanoi Bangkok Others TOTAL 6, ,251 5

6 Hong Kong 1. One Exchange Square 2. Two Exchange Square 3. Three Exchange Square 4. The Forum under redevelopment 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 6

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

8 Hong Kong Central Grade A Office Market m sq. ft New supply Net take up Vacancy Vacancy % '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Source: Jones Lang LaSalle Disclaimer: The above forecast shall be regarded solely as general guide, no representation is made nor responsibility accepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever. 8

9 Hong Kong Grade A Office Market m sq. ft Vacancy % 8 16 New supply Net take up Vacancy '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Source: Jones Lang LaSalle Disclaimer: The above forecast shall be regarded solely as general guide, no representation is made nor responsibility accepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever. 9

10 Hongkong Land Central Portfolio: Office Average Net Rent (HK$ psf/month) Year-end Vacancy 2.9% 2.0% 3.4% Weighted Average Lease Expiry (years)

11 Hong Kong: Office Tenant Profile Property 6% Trading 3% Government 5% Accounting 8% Others 13% Banks and other financial services 35% Legal 30% 11

12 Hong Kong: Expiration and Interim Rent Revisions Total lettable office area subject to expiration/rent revisions ( 000 sq. ft) 864 1,322 1,304 % of area subject to expiration/rent revisions 21% 32% 32% Average expiring net rent (HK$ psf/month)

13 The Forum Redevelopment Premium office development 40,700 sq. ft NFA Completion in early 2014 Pedestrian Plaza to be significantly enhanced 13

14 Hongkong Land Central Portfolio: Retail Average Net Rent (HK$ psf/month) Year-end Vacancy 0% 0% 0% Weighted Average Lease Expiry (years)

15 Macau One Central (47%-owned) Retail component 95% let 15

16 Singapore One Raffles Link Marina Bay Financial Centre (33%-owned) Singapore One Raffles Quay (33%-owned) Background Image from Google Earth 16

17 Singapore CBD Grade A Office Market m sq. ft 4 3 New supply Net take up Vacancy Vacancy % '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 CBD Raffles Place, Shenton Way & Marina Bay Source: Jones Lang LaSalle Disclaimer: The above forecast shall be regarded solely as general guide, no representation is made nor responsibility accepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever. 17

18 Singapore Commercial Portfolio ( 000 sq. ft NFA) Attributable HKL Office Retail Total Interest One Raffles Link One Raffles Quay 1, , Marina Bay Financial Centre Towers 1 & 2 1, , Tower 3 1, , TOTAL 4, ,732 1,785 18

19 Singapore: Office Tenant Profile Natural resources 10% Accounting 1% Other 5% Banks and other financial services 78% Legal 6% 19

20 Singapore: Average Rents and Occupancy Average Gross Rent: S$8.9 psf (2011: S$8.6 psf) Occupancy: 94% (including MBFC Tower 3) Weighted Average Lease Expiry (years): 6.6 Note: Average gross rent applies to office portion only and excludes MBFC Tower 3 20

21 Singapore: Expiration and Interim Rent Revisions HKL Share: Total lettable office area subject to expiration/rent revisions ( 000 sq. ft) % of area subject to expiration/rent revisions 5% 16% 28% Average expiring rent (S$ psf/month) Note: The analysis excludes the unlet 22% of MBFC Tower 3 21

22 Jakarta Jakarta Land (50%-owned) Commercial space of 140,000 sq. m. after completion of World Trade Centre II Occupancy: 94% Average gross rent: US$20.6 psm (2011: US$18.2 psm) 22

23 Hanoi, Bangkok and Phnom Penh Central Building (71%-owned) 63 Ly Thai To (74%-owned) Hanoi Bangkok Phnom Penh Gaysorn (49%-owned) Embassy Site (100%-owned) Background Image from Google Earth 23

24 Beijing Wangfujing (95%-owned) Prestigious retail-led centre, including small luxury hotel Completion: - retail Q hotel Q

25 Beijing CBD (30%-owned) Prime Grade A office Completion: mid

26 Residential Property

27 Hong Kong Serenade 140,000 sq. ft Two 47-storey towers 97 units 20 units handed over in remaining units 27

28 Macau One Central Macau (47%-owned) 12 units handed over 3 units remaining for sale 10 units scheduled for completion over next 18 months 28

29 Mainland China Shenyang Beijing Chengdu Chongqing Background Image from Google Earth 29

in 2012-98 units available for future sale, mostly leased Central

30 Mainland China Completed Projects Project Interest Project Type Maple Place, Beijing 90% High end residential - 13 units handed over in units available for future sale, mostly leased Central Park, Beijing 40% 72 units of serviced apartments Maple Place Central Park 30

31 Mainland China Development Projects Summary Project Interest Project Type Bamboo Grove, Chongqing 50% Primarily Residential Landmark Riverside, Chongqing 50% Residential (80%), Office, Retail & Other Yorkville South, Chongqing 100% Primarily Residential Yorkville North, Chongqing 100% Residential (73%), Office, Retail & Other Chengdu Project 50% Residential (47%), Office (22%), Hotel & Serviced Apartments (14%), Retail (17%) Shenyang Projects 50% Primarily Residential 31

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

33 Mainland China Contracted Sales US$m 500 Chongqing Chengdu Shenyang Beijing 400 $429m $165m $160m Note: The above chart includes HKL s share of Contracted Sales 33

34 Mainland China Revenue Recognised US$m 500 Chongqing Shenyang Beijing $142m $159m $213m Note: The above chart includes HKL s share of Revenue Recognised 34

35 Mainland China Projects Launched for Sale Project Bamboo Grove - Phases 3C, 5A & B - Phase 6D Landmark Riverside - Phase 1A - Phase 1B Units in Phase 1, Units Launched for Sale 1, Units Pre-Sold (as at Feb 2013) 74% 100% 89% 43% HKL Share GFA Sold (sq. m.) 58,000 5,000 24,800 23,300 Completion Date Yorkville South % 54, Chengdu Project % 15, Shenyang Projects % 3, TOTAL 3,628 3, ,900 Note: Units sold are stated on a 100% basis but attributable GFA is HKL s share only 35

36 Singapore Current Residential Projects The Estuary Este Villa Avenue Ripple Bay Jurong West Terrasse Jurong Gateway D Mira Parvis Hallmark Residences Uber 388 Marina Bay Suites 36

37 Singapore Completions in 2012 Project Units GFA ( 000 sq. ft) Completion Date Sold Parvis (50%-owned) Sep % D Mira Nov % TOTAL Parvis D Mira 37

38 Singapore Projects Launched for Sale Project Units GFA ( 000 sq. ft) Estimated Completion Date Pre-Sold Este Villa % The Estuary % Terrasse % Uber % Ripple Bay % TOTAL 1,917 2,117 38

2014 Hallmark Residences 75 102 2014 Jurong Gateway 738 524

39 Singapore Projects to be Launched Project Units GFA ( 000 sq. ft) Estimated Completion Date Palms@Sixth Avenue Hallmark Residences Jurong Gateway TOTAL Palms@Sixth Avenue Hallmark Residences 39

40 Singapore Recent Acquisition Acquired Jan 2013 Cost: US$350m Total GFA: 675,000 sq. ft 670 apartments 40

41 Singapore Marina Bay Suites (33%-owned) 221 units, 0.47m sq. ft Completion % sold 34 units sold in

42 Indonesia BSD City, Greater Jakarta (49%-owned) JV with PT Bumi Serpong Damai Site area 68 ha Southwest of Central Jakarta Master planning underway 42

43 Financial Results

44 Consolidated Profit and Loss Account (US$m) ,224 Revenue 1,115 (392) Net operating costs (315) 832 Operating profit Share of results of joint ventures 166 (67) Net financing charges (61) (134) Tax (125) (4) Non-controlling interests (3) 703 Underlying profit 777 4,603 Non-trading items 662 5,306 Profit attributable to shareholders 1,439 44

45 Revenue (US$m) Commercial revenue Residential revenue 259 1,224 Total 1,115 Higher average rents in Hong Kong drove Commercial revenue Lower Residential revenue due to Singapore, where major 2012 project was in 50% joint venture 45

46 Underlying Profit by Business (US$m) Commercial property Residential property 301 (51) Corporate expenses (60) 996 1,061 (97) Net financing charges (96) (190) Tax (183) (6) Non-controlling interests (5) 703 Underlying profit

47 Commercial Property Operating Profit (US$m) Greater China Hong Kong Mainland China & Macau 17 Southeast Asia & Others 86 - Singapore Others Total

48 Residential Property Operating Profit (US$m) Greater China 77 - Hong Kong Mainland China & Macau 96 Southeast Asia & Others Singapore Others Total

49 Consolidated Cash Flow (US$m) Operating activities 299 (235) Investing activities (846) (59) Financing activities (297) (43) Others (70) (1) Movement in net debt (914) (2,358) Net debt at beginning of period (2,359) (2,359) Net debt at end of period (3,273) 49

50 Operating Activities (US$m) Operating profit excl. non-trading items 800 (57) Net interest paid (34) (118) Tax paid (148) 58 Dividends received from joint ventures 140 (373) Purchase of residential sites (791) (6) Others (primarily pre-sale proceeds)

51 Investing Activities (US$m) (51) Major renovations capex (48) (257) Funding of joint ventures (349) Development expenditure - - Wangfujing, China (498) (34) - Phnom Penh, Cambodia (2) 111 Loan repayments from joint ventures 58 (4) Others (7) (235) (846) 51

52 Consolidated Cash Flow (US$m) Operating activities 299 (235) Investing activities (846) Financing activities (371) - Dividends paid by the Company (374) Conversion of convertible bonds 57 (24) - Others 20 (59) (297) (43) Others (70) (1) Movement in net debt (914) (2,358) Net debt at beginning of period (2,359) (2,359) Net debt at end of period (3,273) 52

53 Consolidated Balance Sheet (US$m) ,623 3,132 Investment properties - Subsidiaries - Joint ventures 23,494 3,740 25,755 27,234 1,521 1,007 Properties held for sale - Subsidiaries - Joint ventures 2,514 1,168 2,528 3,682 (1,160) Others (1,459) 27,123 Gross assets (excl. cash) 29,457 24,764 2,359 Financed by: - Total equity - Net debt 26,184 3,273 27,123 29,457 53

54 Investment Property - Basis of Valuation Capitalisation Rates H Hong Kong Office Exchange Square 1 & % 4.20% 4.00% Hong Kong Retail Landmark Atrium 4.50% 4.50% 4.50% Singapore Office MBFC 4.00% 4.00% 4.00% Note: These capitalisation rates are provided on an indicative basis 54

55 Investment Property Carrying Values (US$m) Greater China 21,881 - Hong Kong 22, Mainland China & Macau 984 Southeast Asia & Others 3,187 - Singapore 3, Others ,755 Total 27,234 Note: The analysis includes share of Joint Ventures & Associates 55

56 Properties Held for Sale - Carrying Values (US$m) Greater China Hong Kong 83 1,228 - Mainland China & Macau 2,064 Southeast Asia & Others 1,157 - Singapore 1, Others 10 2,528 3,682 (644) Pre-sale Proceeds (938) 1,884 Net Investment 2,744 Note: The analysis includes share of Joint Ventures & Associates 56

57 Gross Assets at 31 Dec 2012 By Activity Residential 11% By Location Mainland China 8% Macau 2% Southeast Asia 15% Commercial 89% Hong Kong 75% 57

58 Treasury Management Summary Net debt (US$m) 2,359 3,273 Gearing 10% 13% Average tenor of debt (years) Average interest cost 2.6% 2.7% Credit ratings - S & P - Moody s A- A3 A- A3 58

59 2012 Financing Activity US$837m notes issued (under MTN Programme) Total of US$880m in bank facilities raised - US$642m in bilateral facilities with multiple banks - US$238m project loan for MCL Land The US$642m bilateral facilities to be used to partially refinance US$968m syndicated facility expiring June

60 Maturity Profile of Committed Facilities US$m 2,500 2,000 Bank Facilities (Drawn & Undrawn) Bonds 2 1,500 1, , Notes: (1) US$724m bank facilities due in 2013 have already been refinanced (2) Include bonds and notes issued under MTN Programme which are at face value 60

61 Liquidity at 31 Dec 2012 (All figures in US$bn) 2011 HK$ S$ US$ RMB Total 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

62 Outlook Commercial portfolio in Hong Kong will continue to benefit from limited supply Three Singapore residential completions due in 2013 Growing contribution from China residential business expected from 2014 onwards Our strategy remains focused on premium property developments in Greater China and Southeast Asia 62

Presentation Results. 4th March 2016

Presentation Results. 4th March 2016 Presentation 4th March 2016 2015 Review Sound result in 2015 Continued strong performance from commercial portfolio Entry into Shanghai with prime mixed-use site Stable asset values 1 Highlights 2014 2015