Volume #10 Quarterly Investor Update (Q3 FY2009) 23 November 2009

Transcription

1 ASEANA TRACKER As at 30 September 2009 NAV/Share : US$ RNAV/Share : US$ Key Facts Exchange Symbol Lookup : London Stock Exchange Main Market : ASPL : Reuters - ASPL.L Bloomberg - ASPL.LN Company Information Domicile : Jersey Shares Issued : 236,125,000 Share Denomination : US Dollars Management Fee : 2% of NAV Performance Fee : 20% of the out performance NAV over a total return hurdle rate of 10% Admission Date : 5 April 2007 Investor Reporting : Quarterly Fiscal Year End : 31 December Financials : Semi-annual review; annual audit For additional information please refer to Registered Address 12 Castle Street St. Helier, Jersey JE2 3RT Channel Islands Commentary As at 30 September 2009, the Net Asset Value ( NAV ) of Aseana Properties Limited ( Aseana or the Company ) stood at US$ million, compared to US$ million recorded on 30 June The lower NAV is mainly attributable to a change in accounting policy to charge out prior and current years sales commission and incurred marketing expenses. These expenses were previously capitalised as part of the development cost and deferred under IFRIC Interpretation 15: Agreements for the construction of Real Estate. Performance Summary Projects As at 30 September 2009, the Realisable Net Asset Value ( RNAV ) of Aseana stood at US$ million, compared to US$ million as at 30 June The increase in RNAV is mainly attributable to the recognition of 100% ownership in the Sandakan Harbour Square project, following the completion of the acquisition of the remaining 40% minority interest in ICSD Ventures Sdn. Bhd (Q2 2009: Aseana owned 60% of the said project). Period ended 30 September 2009 Total assets less current liabilities (US$ M) Net asset value (NAV) (US$ M) NAV per share (US$ ) Realisable Net Asset Value (RNAV) (US$ M) RNAV per share (US$ ) Cash and bank equivalents (net of bank overdrafts) (US$ M) Gearing 56.61% Gearing (net of cash) 32.74% 1. NAV per share and RNAV per share are calculated based on 236,125,000 ordinary shares in issue (including treasury shares). 2. Please see Valuation Methodoloy for further information. 3. NAV & RNAV contribution of each project are listed below: Project NAV as % of NAV a Market Value as % of RNAV b i-zen@kiara I 2.5% 2.3% Tiffani by i-zen 7.4% 7.4% one Mont Kiara by i-zen 11.7% 8.9% Sandakan Harbour Square 12.1% 14.6% SENI Mont Kiara 28.8% 29.9% KL Sentral Office Towers & Hotel 0.7% 5.3% KK seafront resort and residences 5.1% 4.7% c Equity Investment in Nam Long 8.2% 7.0% d International Hi-Tech Healthcare Park 8.7% 7.3% d Queen s Place 0.1% 0.1% d a Project NAV includes a charge to cost of acquisition of US$ million b Please see Valuation Methodology for further information c Project currently valued at residual market value of land d Projects currently valued at cost 4. NAV and RNAV do not include investments in TM Mont Kiara Commercial Development and Tan Thuan Dong Project (which are pending completion of acquisition). 1

2 Property Portfolio Update In August 2009, the Company successfully completed the development of the 399 units in the Tiffani by i-zen luxurious condominium, in Mont Kiara, Kuala Lumpur. The process of handing over completed units to the purchasers is currently underway. In October 2009, the Company completed the acquisition of the remaining 9.1% minority interest from Heliconia Investment Pte. Ltd. (an investment company managed by CapitaLand), which gives Aseana 100% ownership of the SENI Mont Kiara development. CapitaLand will continue its interest in the project as the Project Monitoring Agent and is actively involved in the marketing of SENI Mont Kiara. The acquisition will be reflected in the NAV and RNAV computations in the next quarter s update. Sales of units at the ongoing developments have improved compared to last quarter, albeit still at a modest pace. For SENI Mont Kiara, sales are recorded at 64%, compared to 61% as reported in the last quarter. Sales of Phase 2 Retail Lots at the Sandakan Harbour Square development have also improved to 74%, as compared to 72% in the last quarter. The project company in respect of the Kuala Lumpur Sentral development in which Aseana owns a 40% stake, has successfully sold Tower 2 to an international real estate fund. Construction Update October 2009 In Vietnam, the International Hi-Tech Healthcare Park project has been progressing well with the completion of the Information Centre (also known as The Hub ), located at the project site, in November The Hub is the Representative & Site Office, and also houses the project showcase gallery. Detailed construction planning is currently underway for the development of a 250-beds general hospital (part of a total of 500 beds in Phase 1). Construction works are expected to commence in Q1 2010, subject to the receipt of the Construction Permit. The Company has been successful in retrieving the deposit (plus interest) relating to the Wall Street Centre project which has been on hold for some time. Following continued administrative delays, the Manager agreed the refund with the People s Committee of District 1, Ho Chi Minh and is now in the process of exiting the joint venture agreement with a view to terminate the project. Further details will be released in due course. On 23 November 2009, the Company announced that it has entered into a conditional Joint Venture Agreement with Nam Long Investment Corporation ( Nam Long ), to develop an upscale residential development in Tan Thuan Dong area, District 7 of Ho Chi Minh City. The completion of the Joint Venture Agreement is conditional upon the award of Investment License to a joint venture company which will be formed between the Aseana and Nam Long, and the transfer of the Land Use Rights Certificate for the development land to the joint venture company. Aseana will be taking an 80 percent stake in the joint venture company. Sales Update October 2009 Projects % Sales i-zen@kiara I 99% Tiffani by i-zen 90% one Mont Kiara by i-zen (bz hub) Phase 1 100% Phase 2 ^ 0% Sandakan Harbour Square Phase 1 Retail Lots 100% Phase 2 Retail Lots 74% SENI Mont Kiara 64% ^ Five floors have been released for sale Please see Snapshot of Property Portfolio (Pages 5 & 6) for further information on existing investments. The project completed in August 2009 and is currently in the process of handing over completed units to purchasers. Structural works are in progress at Level 28 for Block A, Level 14 for Block B, Level 11 for Block C, Level 9 for Block D, Level LG4 to LG1 for car park podium and Plaza area. Phase 3 & 4 ground structural works are in progress. Substructure work at Level 2 of the hotel tower completed while substructure work at Level 3 is progressing well. KL Sentral Office Towers & Hotel Piling works completed in September Earthworks, substructure and podium works commenced in October 2009 and progressing well. Structural works for roofs of Office Suite (bz-hub) and Office Tower completed. Roof structure of the retail podium is in progress. Architectural and M&E works for both blocks are progressing well. 2

3 Malaysia Economic Update Tiffani by i-zen The Malaysian economy contracted by 1.2% in Q (Q2 2009: -3.9%). In the recent 2010 Budget announcement, the Malaysian Government has projected that the economy will contract by 3.0% in 2009, an improvement from its earlier projection of -4.0% to -5.0% in May Headline inflation in September 2009 remained low at -2.0% reflecting the base effects of higher commodity and food prices last year. The Central Bank of Malaysia maintained the Overnight Policy Rate (OPR) at 2.00% for seven consecutive months (April to October 2009) in order to provide continual support to economic activities over the short to medium term. From 1 September to 29 October 2009, the Ringgit appreciated by 2.6% against the US Dollar, 1.9% against the Pound Sterling and 0.1% against the Euro, but it depreciated against the Japanese Yen (-1.1%). With regards to regional currencies, the Ringgit appreciated against the Chinese Renminbi (2.6%), Thai Baht (1.1%) and Philippine Peso (0.4%), but depreciated against the Indonesian Rupiah (-1.6%), Korean Won (-1.1%), and Singapore Dollar (-0.1%). The Business Conditions Index ( BCI ) in 3Q 2009 was recorded at points, up 8.4 points in Q Meanwhile, the Consumer Sentiments Index ( CSI ) settled at points in 3Q Positive signs, as well as the perception of recovery, in both Malaysia and the global economy, improved market sentiment among individual consumers and businesses. On the 29 October, both the FTSE Bursa Malaysia KL Composite Index and overall market capitalization were higher at 1,241 and RM billion as compared to 1, and RM billion on 30 September. Improved market sentiments following renewed confidence of the global economic recovery drove the index higher. The Government plans to further enhance the efficiency of the stock market by liberalising the stockbroker commission-sharing agreement and allow 100% foreign equity participation in corporate finance and financial planning companies (present requirement is at least 30% local shareholding). Effective from 1 January 2010, individual taxpayer benefits from the reduction of maximum individual income tax rate from 27% to 26%. In addition, individual taxpayers will enjoy additional disposable income following the increase in personal tax relief from RM8,000 to RM9,000 and increase in Employees Provident Fund ( EPF ) and life insurance premium deductions from RM6,000 to RM7,000. Additionally, maximum tax rate for cooperatives will be reduced to 26% (from 27% previously) while the fixed tax rate for nonresident individuals will be reduced to 26% (from 27% previously). Effective from 1 January 2010, the Government will re-introduce the real property gain tax ( RPGT ) on a flat 5% rate, applicable to all entities upon the disposal of properties under legal ownership regardless of the holding period. The proposed RPGT is expected to dampen the property market in the near term. With the objective to promote home ownership and enhance quality of life, the Government will launch a scheme in January 2010 which enables EPF contributors to utilise current and future savings from their secondary account for home purchases. This will enhance EPF contributors purchasing power, enabling purchases of higher value properties or additional houses. Overview of Property Market in Malaysia Offices Occupancy rate for offices in the Golden Triangle Area stood at 84% (85% in Q2). Overall occupancy rate in Klang Valley City area stood at 81% (83% in Q2) due to new supplies of office space and general slowdown in market demand. Rental yields remained stable ranging between 6% and 8% during Q However rental value is expected to decrease by up to 5% on average till year end. Retail Delayed retail expansions led by lower retail sales activities have caused a slowdown in leasing demand and continue to put downward pressure on rentals. Overall occupancy rate of retail centres in Klang Valley decreased slightly to 84.1%. (84.4% in Q2 2009) Average monthly rental rates for selected retail space in Klang Valley to decrease by up to 5% q-o-q in Q Residential Market prices and rentals remain stable in Q Rental and capital values in the KLCC and Mont Kiara locality continue to experience downward pressures in short term. Introduction of 5% RPGT may have short-term adverse impact on the attractiveness of residential properties in Malaysia. Hospitality Slow growth of the global and local economies is expected to continue to hamper the Klang Valley s hospitality industry. Overall occupancy rate of Klang Valley hotels in Q registered a decrease from 70% to 64% year-on-year. Average Daily Room Rates (ADRR) hotels in Klang Valley recorded a range of -6% to +3% adjustment in Q Hoteliers in Klang Valley are expected to maintain their room rates till year end while placing more efforts on resource management and external marketing. Source: Bank Negara Malaysia website, Jones Lang Wootton Q3 report, CBRE, various publications 3

4 Vietnam Economic Update Information center ( The Hub ), International Hi-Tech Healthcare Park The economy grew by 5.8% in Q as compared to Q (4.5%). For the first 9 months of 2009, the economy grew by 4.6% against the same period in 2008 of which the agriculture, forestry and fishing sector rose by 1.6%, the service sector by 5.9%, the industrial sector by 3.3% and the construction sector by 9.7%. The Consumer Price Index ( CPI ) for the first 9 months period of 2009 grew by 2.42% against the same period last year. When compared to the previous month, CPI in September 2009 grew by 0.62%. Export turnovers for the first 9 months of 2009 were at an estimate of US$41.7 billion, a decrease of 14.3% against the same period last year. Although the volume of exported items has increased, the export turnovers have decreased mainly due to lower global market prices. Import turnovers for the first 9 months of the year fell by 25.2% against the same period last year to US$48.3 billion. Overall, the economy recorded a trade deficit of US$6.5 billion. Total foreign direct investment ( FDI ) for the first 9 months ended of 2009 is at US$12.6 billion, a sharp decrease of 78.6% compared to the same period in The realised FDI in the first 9 months stood at US$7.2 billion, down by 11.2% against same period in Personal income taxes for salary, wages and individual business income, capital gains on securities and other, dividends and interest income, royalties and franchises income remains tax-exempt until the end of However, effective from 26 September 2009, property investors would have to pay capital gains tax on property transactions based on 25% of gains or 2% of the property transaction value if the transfer price cannot be determined fairly. Effective from 1 September 2009, more overseas Vietnamese (Viet Kieus) will be eligible to buy houses and apartments. Viet Kieus will be allowed to purchase more than one house and also be allowed to sell, lease and authorise others to manage their houses while they are away. Meanwhile, those currently with Vietnamese visa exemption and permission to reside in Vietnam for three months or more can own an apartment or house for family accommodation purposes. Overview of Property Market in Vietnam Offices Kumho Asiana Plaza (Grade A Office in HCMC) was completed in September, with a GFA of 31,562 sqm and average rent of US$50 psm. This has helped boost overall Grade A monthly asking rent to US$41.3 psm compared to US$40.8 psm in Q Vacancy rate for in HCMC for Grade A offices for Q remained at 26.3%. Demand for HCMC s Grade A office space in Q was five times that of Q2 2009, however increasing concerns of oversupply of office space exist going forward in the short term. Retail Vietnam s retail sector has outperformed much of the rest of the world, retail sales increased 8.0% compared to previous quarter and 18.6% when compared to the same period last year. Overall asking rents on HCMC s CBD department stores and shopping centres fell by 4.4% q-on-q, to a monthly average of US$82.9 psm. Rents decreased further in shopping centres outside the CBD. Overall occupancy rate in HCMC increased to 95.6% in Q from previous 94.1% in Q Retail space remained in demand, as refurbished Lucky Plaza in District 1, HCMC opened at 94.4% occupancy. Residential Average prices in the secondary market of HCMC continued to rise by 1% to 3.4% in Q Meanwhile projects close to completed key infrastructure saw resale prices increase between of 3% to 8%. Demand remains strong for mid-to-high end projects in well-established areas. Population and long-term economic growth will continue to drive demand for housing over the long term. Hospitality International visitor arrivals during the first nine months of 2009 fell by 16% against the same period last year. Occupancy rate of three, four and five star hotels in HCMC remained low, at 50%. Average room rates fell 6.7% q-o-q. Hoteliers continue to competitively lure business travellers and leisure travellers with promotional campaigns offering free nights or spa discounts. Local government also launched tourism promotion campaign called Impressive Vietnam to attract more visitors. Source: Bank Negara Malaysia website, CBRE HCMC Q3 Report, various publications 4

5 Snapshot of Property Portfolio I Serviced residences Expected GDV : US$ 39 Million Cost of Investment : US$ 3,998,840 Market Value as at : US$ 5,526,769 99% sold, completed in June 2008 Tiffani by i-zen Luxury condominiums Expected GDV : US$ 109 Million Cost of Investment : US$ 15,274,279 Market Value as at : US$ 18,116,341 90% sold, completed in August 2009 one Mont Kiara by i-zen Office suites, office tower and retail mall Expected GDV : US$ 156 Million Effective Ownership : 50% Cost of Investment : US$ 21,453,419 Market Value as at : US$ 21,591,808 Office suites ( bz-hub ) Phase 1 : 100% sold. Phase 2 : 0%, Office tower and retail mall to be sold on or after completion; target completion Q SENI Mont Kiara 1 Luxury condominiums Expected GDV : US$ 421 Million Effective Ownership : 64% Cost of Investment : US$ 66,172,832 Market Value as at : US$ 72,781,710 64% sold, target completion Q KL Sentral Office Towers & Hotel Two office towers and a boutique business hotel Expected GDV : US$ 249 Million Effective Ownership : 40% Cost of Investment : US$ 3,868,024 Market Value as at : US$ 12,855,183 Tower 1 and Tower 2 sold. Hotel to be sold on or after completion, target completion TM Mont Kiara Commercial Development 2 Commercial and office towers Expected GDV : US$ 32 Million Cost of Investment : US$ 3,130,609 (Land cost, unleveraged) Market Value as at : US$ 3,755,700 3 Development plans has been submitted to the authorities for approval in early Sandakan Harbour Square Sandakan, Sabah, Malaysia Phase 1 retail lots; Phase 2 retail lots; Phase 3 hotel; Phase 4 retail mall Expected GDV : US$ 141 Million Cost of Investment : US$ 21,583,711 Market Value as at : US$ 35,465,942 Phase 1: 100%, Phase 2: 74% sold, Phase 3 & 4: to be sold on or after completion; target completion Q Kota Kinabalu Seafront Resort & Residential Development Kota Kinabalu, Sabah, Malaysia Resort homes, boutique resort hotel and resort villas Expected GDV : US$ 170 Million Effective Ownership (Resort villas & hotel) : 100% Effective Ownership (Resort homes) : 80% Cost of Investment : US$ 10,354,782 (Land cost, unleveraged) Market Value as at : US$ 11,553,508 3 Submitted master development plans for approval in April

6 Snapshot of Property Portfolio Queen s Place District 4, Ho Chi Minh City, Vietnam Residential, hotel & serviced apartments and retail mall Expected GDV : US$ 195 Million Effective Ownership : 65% Cost of Investment : US$ 11,283,460 Market Value as at : N/A Investment License obtained and resettlement planning underway International Hi-Tech Healthcare Park Binh Tan District, Ho Chi Minh City, Vietnam Commercial and residential development with healthcare theme Expected GDV : US$ 770 Million Effective Ownership : 51% Cost of Investment : US$ 27,601,000 Market Value as at : N/A Obtained Investment Licence and Land Use Right Certificates for 69 years, detailed planning underway Wall Street Centre District 1, Ho Chi Minh City, Vietnam Office towers Expected GDV : US$ 131 Million Effective Ownership : 65% Cost of Investment : Nil Market Value as at : N/A Signed JVA, Approval-in-principle obtained by People s Committee of District 1, Ho Chi Minh City and Deposit paid, Investment License application submitted Equity Investment in Nam Long Corporation Ho Chi Minh City, Vietnam Private equity investment Effective Ownership : 17.24% Cost of Investment : US$ 17,223,621 Share subscription was completed in January 2009 Tan Thuan Duong Project 2 District 7, Ho Chi Minh City, Vietnam Residences and commercial Expected GDV : US$120 million Effective Ownership: 80% Cost of investment : US$ 9.6 Million Market value as at 30/09/2009 : N/A Signed JVA Market value of each project is based on valuation prepared by Horwath for 30 June 2009 and translated at its respective exchange rate on 30 September Please refer to the section on Valuation Methodology for basis of market valuation. 1 Aseana has completed the acquisition to purchase the remaining 9.1% minority stake in the SENI Mont Kiara project on 12 October 2009, which would be reflected in the NAV and RNAV computations in the next quarter s update. 2 These investments are pending completion of acquisition and are therefore not included in the NAV and RNAV calculations. 3 Relates to effective interest of Aseana based on residual market value of land. N/A : Not applicable Exchange rate 30 June 2009: US$1: RM ; 30 September 2009: US$ : RM (Source: Bank Negara Malaysia) 6

7 Share Performance Aseana Properties Limited (ASPL:LN) Price Chart Share Price (US $) 52 weeks high of US$ weeks low of US$ Current as at 20/11/2009 of US$ Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Volume (US $ millions) Aseana Properties Limited (ASPL:LN) Volume Chart 1 0 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Note: Transaction volume > 10 million: (i) 6 Feb: 11.9 million, (ii) 22 Apr: 48.1 million, (iii) 1 June: 26.5 million,(iv) 19 June: 10.1 million, (v) 16 July 24.8 million. Valuation Methodology The Company will appoint one or more internationally recognised firms of surveyors as property valuers. It is the intention that the Company s property portfolio will be independently valued on a semi-annual basis. Where applicable and permitted under the International Financial Reporting Standards, the Directors of the Company may choose to adopt and incorporate the valuation into the computation of the Company s Net Asset Value. The Realisable Net Asset Value of the Company as at 30 September 2009 has been computed by the Company based on the Company s management accounts for the year ended 30 June 2009 and the Market Values of the property portfolio. The Market Value of the property portfolio is determined on a discounted cash flow basis by Horwath, an independent firm of valuers. The Market Values, excluded any taxes; whether corporate, personal, real property or otherwise, that is payable. In arriving at the Market Value of the projects, Horwath has assumed that the development costs are substantially financed by bank borrowings based on the terms negotiated between the financial institutions and the respective companies that are undertaking the development projects. The valuations performed by Horwath have been performed in accordance with International Valuation Standards ( IVS ) promulgated by the International Valuation Standards Committee. Important Notice This document, and the material contained therein, is not intended as an offer or solicitation for the subscription, purchase or sale of securities in Aseana Properties Limited (the Company ). Any investment in the Company must be based solely on the Listing Prospectus of the Company or other offering document issued from time to time by the Company, in accordance with applicable laws. The material in this document is not intended to provide, and should not be relied on for accounting, legal or tax advice or investment recommendations. Potential investors are advised to independently review and/or obtain independent professional advice and draw their own conclusions regarding the economic benefit and risks of investment in the Company and legal, regulatory, credit, tax and accounting aspects in relation to their particular circumstances. No undertaking, representation, warranty or other assurance, express or implied, is given by or on behalf of either of the Company or Ireka Development Management Sdn. Bhd. or any of their respective directors, officers, partners, employees, agents or advisers or any other person as to the accuracy or completeness of the information or opinions contained in this document and no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise. No warranty is given, in whole or in part, regarding the performance of the Company. There is no guarantee that investment objectives of the Company will be achieved. Potential investors should be aware that past performance may not necessarily be repeated in the future. The price of shares and the income from them may fluctuate upwards or downwards and cannot be guaranteed. This document is intended for the use of the addressee and recipient only and should not be relied upon by any persons and may not be reproduced, redistributed, passed on or published, in whole or in part, for any purposes, without the prior written consent of Aseana Properties Limited. Advisors & Service Providers Contact Information Development Manager Financial Advisor Reporting Accountants, Auditor, Tax Adviser Company Secretary Ireka Development Management Sdn Bhd Fairfax I.S. PLC Mazars LLC Capita Secretaries Limited Company Website Senior VP, Comms & Investor Relations Development Manager Website Chief Executive Officer Chief Financial Officer Aseana Properties Limited Ms. Tan May Lee maylee.tan@ireka.com.my Ireka Development Management Sdn Bhd Mr. Lai Voon Hon voonhon.lai@ireka.com.my Ms. Monica Lai monica.lai@ireka.com.my Malaysia Office Vietnam Office G-1 Kiara II No. 1 Jalan Kiara Mont Kiara Kuala Lumpur Malaysia Tel : Suite 703, Floor 7 Fideco Tower No , Ham Nghi St District 1 Ho Chi Minh City Vietnam Tel :