Investor Meetings. 7 July Contents. Strategic Focus Operations Review Market Review and Outlook Going Forward

Transcription

1 Investor Meetings 7 July 2009 Contents Strategic Focus Operations Review Market Review and Outlook Going Forward 1

2 STRATEGIC FOCUS Focus on Two Core Businesses Two Core Businesses SINGAPORE Commercial developments mainly in New Downtown and CBD Residential developments including lifestyle waterfront projects OVERSEAS Residential developments including townships and integrated lifestyle projects Commercial developments selectively Property Development for Sale Property Fund Management Fee based income from fund management with greater AUM K REIT Asia to recycle capital 2

3 OPERATIONS REVIEW FINANCIAL MANAGEMENT Rights Issue and Dividend Reinvestment Scheme 3

4 Financial Management Rights Issue Rationale : Capitalise on opportunities arising from current downturn :Strengthen balance sheet and enhance financial flexibility Raised gross proceeds : Approx. $707.6m Number of rights shares issued : 649.2m Dividend Reinvestment Scheme (DRS) Rationale : Allow shareholders to reinvest in the Company by receiving dividends for FY2008 in shares : Allow Company to conserve cash Number of new shares issued : 34.3m Post Rights Issue and DRS Total number of shares : Increased from 721.3m 1.4 bn Market capitalisation : Increased from $1.05 bn (1) $3.1 bn (2) (1) As at 31 March 2009 (2) As at 03 July 2009 SINGAPORE 4

5 Singapore Residential Two projects almost fully sold Park Infinia at Wee Nam : 23 units sold as at end May 2009 The Tresor : 28 units sold as at end May 2009 Landbank strategically located in prime residential districts and along new MRT lines Park Infinia at Wee Nam The Tresor Singapore Commercial 3.8m sf NLA under development in CBD and New Downtown 5

6 Singapore Commercial Marina Bay Financial Centre NLA : 2.9m sf Strong overall pre commitment : 61% Phase 1 : 66% Phase 2 : 55% Expected completion : Phase 1 : 2010 Phase 2 : 2012 Ocean Financial Centre NLA : 0.85m sf 4 th generation building to rise at former Ocean Building site Expected completion : 2011 MBR T3 T2 MBS T1 Marina Bay Financial Centre Ocean Financial Centre Singapore Commercial K REIT Asia Stable Portfolio of Five Quality Office Assets with AUM of $2.1bn 95.8% committed occupancy as at end Mar 2009 Average portfolio gross rental up 17.5% y o y to $8.06 psf per month 28% of portfolio s NLA accounted by long lease terms Healthy Balance Sheet Low aggregate leverage maintained at 27.6% Debt maturing only in 2011 Continued Income Growth 1Q 2009 distributable income up 37.3% y o y to $15.7m Distribution for 1Q 2009 : 2.38 cents per unit Prudential Tower Keppel Towers GE Tower Bugis Junction Towers One Raffles Quay 6

7 OVERSEAS Overseas China Continuing improving sales especially in township homes The Botanica, Chengdu and Central Park City, Wuxi achieving average sales of 100 units per month respectively Participate in Tianjin Eco City as an investor and consortium member, and project manager in the development of a 30 ha site within the SUA Tianjin Eco City Entire Development Start up Area (SUA) Size 30 sq km 4 sq km Development period years 3 5 years No. of homes >100,000 >20,000 Population size (approx) 350,000 85,000 The Botanica Central Park City 7

8 Overseas Vietnam Resumed sales at The Estella, Ho Chi Minh City with average selling price kept at US$2,000 US$2,200 psm Introduced option of staggered payment py scheme for buyers The Estella FUND MANAGEMENT 8

9 Fund Management K REIT Asia Portfolio value : $2.1 bn Total AUM: $9.8 bn (1) Alpha Investment Partners AUM : $7.7 bn (1) Alpha Asia Macro Trends Fund acquired office building in Gangnam, Seoul Funds under Alpha Committed Equity % Invested No. of Countries Invested In Asia No. 1 Property Fund $400m 100% 6 Alpha Core Plus Real Estate Fund $720m 100% 4 AIB Alpha Japan Fund $259m 38% 1 Alpha Asia Macro Trends Fund $1.7bn 7% 4 As at 1Q 2009 (1) When fully leveraged and fully invested MARKET REVIEW and OUTLOOK 9

10 Singapore Residential Sentiments improved Surge in new home sales 1H09 sales (estimated 6,500 units) exceed full year 2008 (4,264 units) Good take up at recently launched mid and higher end projects Signs of improved economic conditions in 2Q09 Positive drivers supporting housing demand Population growth Up 5.5% to reach 4.84m in 2008 Growth mainly from PRs (+6%) and non residents (+19%) (Source : National Population Secretariat) Demand from HDB upgraders HDB upgraders accounted for 65% of buyers of new homes in 1H09, compared to 44% in 2008 (Source : CBRE) Increased buying interest from foreigners Total no. of homes sold to foreigners (excluding PRs) : March 4%; April 7%; May 9% (Source : URA) Spin off effects from integrated resorts Developments close to IRs will benefit from proximity Singapore Commercial Global economy still weak although there are some positive signs of stabilisation Office demand likely to be soft in 2009 Interest in investment sales starting to pick up Delays in construction of some office projects have reduced supply New office supply from lowered to 5.9m sf (1) (or 1.6m sf pa) Limited impact of shadow space as lease period usually shorter than 3 years after which sub lessees face risk of relocation Singapore remains a key business destination in longer term Growth into a global cosmopolitan city and multi hub business destination Ranked 4 th in recent Forbes ranking of Best Countries to do Business Ranked 15 th in CBRE s May 2009 Global Occupancy Costs Survey, below Asian cities like Tokyo, Hong Kong, Mumbai and New Delhi (1) Excluding pre committed space of about 2.4 million sf as estimated by CBRE 10

11 Overseas Asia : Signs of stabilisation emerging Concerted efforts by regional governments to stimulate economy and property markets appear to be yielding results Long term growth trend backed by firm fundamentals HOME OWNERSHIP ASPIRATIONS Economic Growth Favourable Demographics Growing Middle Class Rising Affluence Urbanisation Trends China Vietnam Residential markets showing signs of recovery Sales at new projects and re launches supported by lower mortgages and more flexible payment terms GOING FORWARD 11

12 Going Forward Seek acquisitions in Singapore gp and overseas, capitalising on opportunities from economic downturn Continue to focus on developing quality residential, office, township and sustainable developments K REIT Ai Asia and Alpha to grow fund management income and acquire good quality assets THANK YOU 12

13 ADDITIONAL SLIDES Financial Highlights 1Q Q 2008 % Chg Turnover ($) 145.7m 273.1m (46.6) EBITDA ($) 34.3m3 72.8m (52.9) Operating Profit ($) 31.9m 71.1m (55.1) Pre tax Profit ($) 55.7m 83m (32.9) PATMI ($) 36.9m 60.3m (38.8) EPS ( ) (39.3) NTA/Share ($) Net Debt/Equity Ratio (x) Annualised ROE (%) (42.3) 13

14 5 Year Financial Profile FY2008 FY2007 FY2006 FY2005 FY2004 Turnover ($m) Operating Profit ($m) Pre tax Profit ($m) Net Profit ($m) * * ^ Overseas Earnings (% of PATMI) EPS ( ) NTA/Share ($) Debt/Equity Ratio (x) * Includes gain on acquisition of additional interest in K REIT Asia and net gain on revaluation of investment properties ^ Includes corporate restructuring surplus from sale of ORQ and net gain on revaluation of investment properties less impairment provision Strong Balance Sheet 1Q Q 2008 Net Debt ($b) Avg Interest Rate of Borrowings (%) Fixed Rate Debt (%) Avg Debt Maturity (Yr) Interest Cover Ratio (X)* * Interest Cover Ratio = Profit Before Interest and Tax Net Interest Cost Expensed and Capitalised 14

15 Prudent Capital Management Completed Rights Issue Manage Gearing Address Refinancing Raised gross proceeds of approx. $707.6m Strengthened balance sheet and enhanced financial flexibility 0.22x post rights issue Phase developments to manage capital requirements and maximise project returns Loans due in 2009 : Mostly re financed Loans due in 2010 : Substantial portion relates to MTNs and project loans (1) Low cost of funds : 2.4% in 1Q 2009 Diversify Funding Base Healthy cash balances of about $1.3 bn post rights issue Funds from operations and related companies Unutilised credit facilities of $1.8 bn MTN programme : $909m Bank facilities : $925m (1) Cease upon project completion Singapore Residential Landbank Project Location KLL's Tenure Attributable Attributable Total Stake Land darea GFA Units (%) (sf) (sf) Reflections at Keppel Bay (1) Keppel Bay 30% 99 yr 269, ,521 1,129 Marina Bay Suites Marina Bay 33.3% 99 yr 19, , The Promont Cairnhill Circle 100% Freehold 11,183 31, Madison Residences Bukit Timah Rd 100% Freehold 49, , 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 652,205 1,184,215 2,056 (1) Includes units sold 15

16 China Residential Landbank Site Location KLL's Total Total Stake Land Area GFA (%) (sm) (sm) Remaining Area for Sale (sm) * Remaining Units for Sale * 8 Park Avenue Shanghai 99% 33, ,393 65, Park Avenue Central Shanghai 99% 28,488 99,708 99, Villa Riviera Shanghai 99% 153,726 53,796 22, The Arcadia Tianjin 100% 127,970 62,698 57, Central Park City Wuxi 49.7% 352, ,510 (2) 479,206 (1) 4,144 The Botanica Chengdu 44.1% 419,775 1,042, ,084 (1) 5,895 (2) Stamford City Jiangyin 76.8% 82, ,338 (2) 248,780 (2) 1,127 Shenyang Township Shenyang 100% 338, ,847 (2) 705,463 (1) 6,256 (3) Residential Devt., Nanhui Shanghai 99% 264, ,906 (2) 314,340 (1) 2,753 Integrated Marina Lifestyle Devt. Zhongshan 80% 827, , ,774 2,855 Summerville Changzhou 85.4% 46,108 64,890 11, Total 2,675,038 3,914,206 3,021,248 24,420 * As of 1Q09 (1) Excludes commercial area (2) Includes commercial area (3) Increase in total number of units for sale Other Overseas Residential Landbank Country Site Remaining KLL's Total Land Area Total GFA Area for Sale Stake (sm) (sm) (sm) * Remaining Units for Sale * India Elita Promenade 51% 96, ,237 51, Elita Horizon 51% 79, , ,680 1,138 (2) Elita Garden Vista 37.7% 93, , , Sub total 269, , ,139 2,384 Indonesia Jakarta Garden City, Jarkata Phase 1 51% 144, , , Jakarta Garden City Remaining Phases 758,428 1,283,874 1,052,941 8,117 Sub total 902,938 1,457,286 1,169,176 8,916 Thailand Villa Arcadia at Srinakarin 45.5% 159,706 84,440 74, Villa Arcadia at Watcharapol 66.7% 124,912 68,314 81, Sub total 284, , , Vietnam Saigon Sports City, HCMC 90% 640, ,222 (1) 290,100 (2) 2,318 The Estella, Dist. 2, HCMC 55% 47, , ,209 1,097 Waterfront Condo, Binh Thanh Dist., HCMC 60% 17,428 87,140 74, Riviera Point, Dist. 7, HCMC 75% 85, , ,401 2,394 Dong Nai Waterfront City 50% 3,667,127 1,979,727 (2) 1,576,190 (2) 10,434 Prime Condo, Dist. 2, HCMC 60% 51, , ,464 1,500 Villa Devt., Dist. 9, HCMC 55% 135,142 55,746 74, Pi Prime Condo, Dist. 9, HCMC 55% 62, , , ,777 Riviera Cove (Villa Devt.), Dist. 9, HCMC 60% 97,000 39,479 50, Sub total 4,803,925 3,991,345 2,899,211 20,351 Middle East Waterfront Apartment Devt., Jeddah, Saudi Arabia 51% 36, , , Sub total 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 6,320,554 6,513,060 4,940,639 34,833 * As of 1Q09 (1) Excludes commercial area (2) Includes commercial area 16

17 Singapore Commercial K REIT Asia Tenant Business Sector by Net Lettable Area as at 31 Mar 2009 Services 9.0% Accounting & consultancy Shipping & marine services services 77% 7.7% 40% 4.0% Real estate & property services 8.1% Pharmaceuticals & healthcare 4.2% Banking, insurance & financial services 35.3% Others 7.0% IT services & consultancy 5.8% Hospitality & leisure 3.0% Government agency 7.2% Conglomerate 8.6% Singapore Residential Developments to benefit from new Downtown Line (DTL) Values of properties p nearby expected to rise (JLL) KLL s Development Location DTL Station The Tresor Duchess Road Tan Kah Kee Madison Residences Bukit Timah Road Stevens/ Botanic Gardens Interchange Park Infinia Wee Nam Road Newton Interchange 17

18 Awards Singapore Corporate Awards Best Annual Report (Gold) Market Capitalisation of $1 bn and above Five new BCA Green Mark Award MBFC Ph 2 (Commercial) Gold Plus Marina Bay Suites Gold Madison Residences Gold The Promont Gold One RafflesQuay Gold (First building to achieve a Green MarkAwardunder new guidelines for existing developments) Governance and Transparency Index by Business Times (1) Ranked 8 th out of 677 companies Only property company placed in Top 10 (1) Replaced Business Times Corporate Transparency Index 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. 18