CapitaLand Limited. Annual General Meeting. 24 April 2017

Transcription

1 CapitaLand Limited Annual General Meeting 24 April 2017

2 Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events. 2

3 Contents 2016 Overview Business Highlights Awards & Sustainability Conclusion 3

4 Since Last AGM, CapitaLand Share Price Outperformed STI & SGX Real Estate Index 1 Total shareholder return for the period 2 : +17% CL: + 15% SGXRE Index: + 12% STI: + 8% 44 Source: Bloomberg Note: 1. Period starting from 18 April 2016 to 21 April Inclusive of dividend of S$0.09 per share distributed during that period

5 2016 Overview Strong Earnings From Operations Revenue S$5,252.3 million Total PATMI S$1,190.3 million Total Operating PATMI 1 S$865.3 million 10% YoY 12% YoY 5% YoY Note: 1. Operating PATMI FY 2016 includes fair value gain of S$30.5 million ( Gain Due To Change In Use ) arising from change in use of Raffles City Changning Tower 2; Operating PATMI FY 2015 includes Gain Due To Change In Use of S$170.6 million arising from change in use of three development projects in China, Ascott Heng Shan (S$44.7 million), The Paragon Tower 5 & 6 (S$110.3 million), and Raffles City Changning Tower 3 (S$15.6 million). The use of these four projects were changed from construction for sale to leasing as investment properties. These projects are located at prime locations in Shanghai and the Group has changed its business plan to hold these projects for long-term use as investment properties. 5

6 Click 2016 to Overview edit Master text styles Achieved Highest Operating PATMI Since Listing In 2000 S$ Million 1,200 1, Total PATMI: % Total PATMI: % FY2012 (restated) FY2013 (restated) FY2014 FY2015 FY2016 Non-operating PATMI Total PATMI: 1, % Westgate Tower sale: S$123.5 Mil. 11% Total PATMI: 1,065.7 Operating PATMI 61% FV Gain resulting from change in use of properties: S$170.6 Mil. 2 16% Operating PATMI Made Up 2/3 Of Total PATMI Total PATMI: 1, % FV Gain arising from change in use of RCCN T2: S$30.5 Mil. 2 3% 6 Note: 1. Total operating PATMI inclusive of S$16.3 million operating PATMI from discontinued operation (FY2013 restated: S$108.7 million) 2. Total operating PATMI inclusive of fair value gain of S$30.5 million (FY2015: S$170.6 million) arising from change in use of development projects in China

7 2016 Overview Robust & Well-Positioned To Grow Net Debt/Equity 0.41 times Interest Cover Ratio times Cash $4.8 billion Net Debt/Total Assets 2 Interest Service Ratio 1 % Fixed Rate Debt 0.25 times 10.3 times 72 per cent Note: 1. Interest Coverage Ratio = EBITDA / Net Interest Expense; Interest Service Ratio = Operating Cashflow / Net Interest Paid. EBITDA includes revaluation gain 2. Total assets excludes cash 7

8 2016 Overview Delivering Long-Term Sustainable Returns Return on Equity 6.6% Dividend 1 per Share 10.0 cents Net Tangible Assets per Share S$ % in cents in 2015 Payout ratio of ~36% 2 S$4.11 in Note: 1. Proposed dividend subject to final shareholders approval at the Annual General Meeting 2. Based on total FY2016 PATMI

9 2016 Overview Proposed First & Final Core Dividend Of 10 Singapore Cents Dividend Period 1 January December 2016 First & Final Core Dividend Type of Dividend 10 Singapore Cents Per Share Cash Record Date 1 5:00pm, 4 May 2017 Book Closure Date 5 May 2017 Dividend Payment Date 12 May Note: 1. Last day of trading on cum basis is 28 April 2017.

10 2016 Overview Strong Recurring Income From Resilient Business Model (As Of 31 December 2016) Investment Properties Serviced Residence 18% Residential & Office Strata 24% Trading Properties Total Assets: S$44.2 billion 1 Shopping Malls 21% Commercial & Integrated Developments 2 37% 10 Majority Or ~76% Of Total Assets Contribute To Recurring Income; ~24% Of Total Assets Contribute To Trading Income Note: 1. Refers to total assets, excluding treasury cash held by CL and its treasury vehicles 2. Excludes residential component

11 2016 Overview Continue To Deepen Presence In Core Markets, While Building A Pan-Asia Portfolio Total RE AUM Of S$78.4 billion 1 And Total Assets Of S$44.2 billion 2 As Of Dec % Of Total Assets Are In Core MarketsOf Singapore And China TAL S$7.1bil, 16% Corporate & Others*** S$1.8bil, 4% CLC S$11.5bil, 26% Europe & Others # S$3.1bil, 7% Other Asia** S$5.7bil, 13% China* S$19.6bil, 44% 11 CMA S$13.4bil, 30% Total Assets By SBU: S$44. 2 Billion CLS S$10.4bil, 24% Singapore S$15.8bil, 36% Note: 1. Refers to the total value of all real estate managed by CL Group entities stated at 100% of property carrying value 2. Defined as total assets owned by CL Group at book value and excludes treasury cash held by CL and its treasury vehicles * China includes Hong Kong ** Excludes Singapore and China. Includes projects in GCC *** Includes StorHub and other businesses in Vietnam, Indonesia, Japan and GCC # Includes Australia and USA Total Assets By Geography: S$44.2 Billion

12 2016 Overview In China: Remain Focused On Tier 1 & Tier 2 Cities Tier 1 & Tier 2 Cities Make Up ~93% Of China s Property Value 86% Of CapitaLand s Property Value In China Are In Top 11 Chinese Cities 2 Other Tier 2: 6% Tier 3: 7% Tier 1: Beijing 15% Other Cities: 14% Upper Tier 2 3 : 34% China Property Value: S$33.2 Billion 1 Other Tier 1 cities: Guangzhou & Shenzhen 9% Tier 1: Shanghai 29% China Property Value: S$33.2 Billion 1 Note: 1 As of 31 Dec On a 100% basis. Includes assets held by CapitaLand China, CapitaLand Mall Asia and Ascott in China (both operational and non-operational). Excludes properties that are under management contract. Excludes properties in Hong Kong. 2 Top 11 cities in terms of GDP per capita include: Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Hangzhou, Ningbo, Chengdu, Chongqing, Wuhan, Suzhou 3 Upper Tier 2 cities include Chengdu, Chongqing, Hangzhou, Shenyang, Suzhou Tianjin, Wuhan and Xi an Tiering of cities are based on JLL report Top 11 Cities: 86%

13 13 Click 2016 to Overview edit Master text styles The CapitaLand Eco-system Raffles City Beijing Capital Tower, Singapore HongKou Plaza, Shanghai Ascott Huai Hai Road, Shanghai Group Managed Real Estate Assets S$78.4 Billion Total Home Units Constructed (Since 2000) >84,000 Gross Turnover Sales Of Retailers S$10.9 Billion Retail Leases Across 5 Countries ~17,000 Note: 1. Numbers stated as of FY2016 numbers unless otherwise stated Revenue Under Management S$9.1 Billion of which Rental RUM is S$4.3 Billion Office Tenants >1,000 Shopper Traffic Across 5 Countries ~1.1 Billion Unique Serviced Residence Customers ~1.0 Million

14 Click to edit Master text styles Business Highlights - Residential 14 ION Orchard, Singapore

15 Residential - Singapore Singapore: > Doubled Sales Volume & Value For FY2016 Achieved 571 units worth $1.42 billion in 2016 Sold 83 units worth $497 1 million in 1Q 2017 Inventory stock represents ~ 4% of the group s total assets Artist s Impression Artist s Impression Cairnhill Nine Marine Blue 15 Note: 1. Includes the bulk sale of 45 units in The Nassim worth ~ $407.2 million

16 Residential - China China: Highest Sales Volume & Value Ever Achieved Over 10,000 units sold at a value of RMB18 billion in % of launched units sold as of 31 December 2016 Achieved total sales of 2,062 units worth RMB3.8 billion in 1Q 2017 La Botanica, Xi an Summit Era, Ningbo Raffles City Residences, Chongqing 16

17 Residential Vietnam Vietnam: Higher Sales Achieved For FY 2016 Achieved sales of 1,480 units worth S$282 million in 2016 No of units sold is 12% higher than FY 2015 Sold 316 units worth S$119 million in 1Q 2017 Ho Chi Minh City, Vietnam Hong Kong 17

18 Click to edit Master text styles Business Highlights - Commercial Properties & Integrated Developments 18 Raffles City Beijing, China

19 Commercial - Singapore Resilient Office Portfolio CCT s portfolio occupancy remains above market occupancy CCT s portfolio occupancy 97.1% Core CBD occupancy 95.8% CCT s Grade A offices occupancy 97.5% Market occupancy 95.8% Monthly average office rent of CCT portfolio down 0.2% Q-o-Q $9.50 $9.00 $8.50 $8.00 $7.50 $7.00 $6.50 $6.00 $5.50 $5.00 $ % 9302% 9304% 9306% 9308% 9310% 9312% 9314% 9316% 9318% 9320% 9322% 9324% 9326% 9328% 9330% 9332% 9334% 9336% 9338% 9340% 9342% 9344% 9346% 9348% 9350% 9352% 9354% 9356% 9358% 9360% 9362% 9364% 9366% 9368% 9370% 9372% 9374% 9376% 9378% 9380% 9382% 9384% 9386% 9388% 9390% 9392% 9394% 9396% 9398% 9400% 9402% 9404% 9406% 9408% 9410% 9412% 9414% 9416% 9418% 9420% 9422% 9424% 9426% 9428% 9430% 9432% 9434% 9436% 9438% 9440% 9442% 9444% 9446% 9448% 9450% 9452% 9454% 9456% 9458% 9460% 9462% 9464% 9466% 9468% 9470% 9472% 9474% 9476% 9478% 9480% 9482% 9484% 9486% 9488% 9490% 9492% 9494% 9496% 9498% 9500% 9502% 9504% 9506% 9508% 9510% 9512% 9514% 9516% 9518% 9520% 9522% 9524% 9526% 9528% 9530% 9532% 9534% 9536% 9538% 9540% 9542% 9544% 9546% 9548% 9550% 9552% 9554% 9556% 9558% 9560% 9562% 9564% 9566% 9568% 9570% 9572% 9574% 9576% 9578% 9580% 9582% 9584% 9586% 9588% 9590% 9592% 9594% 9596% 9598% 9600% 9602% 9604% 9606% 9608% 9610% 9612% 9614% 9616% 9618% 9620% 9622% 9624% 9626% 9628% 9630% 9632% 9634% 9636% 9638% 9640% 9642% 9644% 9646% 9648% 9650% 9652% 9654% 9656% 9658% 9660% 9662% 9664% 9666% 9668% 9670% 9672% 9674% 9676% 9678% 9680% 9682% 9684% 9686% 9688% 9690% 9692% 9694% 9696% 9698% 9700% 9702% 9704% 9706% 9708% 9710% 9712% 9714% 9716% 9718% 9720% 9722% 9724% 9726% 9728% 9730% 9732% 9734% 9736% 9738% 9740% 9742% 9744% 9746% 9748% 9750% 9752% 9754% 9756% 9758% 9760% 9762% 9764% 9766% 9768% 9770% 9772% 9774% 9776% 9778% 9780% 9782% 9784% 9786% 9788% 9790% 9792% 9794% 9796% 9798% 9800% 9802% 9804% 9806% 9808% 9810% 9812% 9814% 9816% 9818% 9820% 9822% 9824% 9826% 9828% 9830% 9832% 9834% 9836% 9838% 9840% 9842% 9844% 9846% 9848% 9850% 9852% 9854% 9856% 9858% 9860% 9862% 9864% 9866% 9868% 9870% 9872% 9874% 9876% 9878% 9880% 9882% 9884% 9886% 9888% 9890% 9892% 9894% 9896% 9898% 9900% 9902% 9904% 9906% 9908% 9910% 9912% 9914% 9916% 9918% 9920% 9922% 9924% 9926% 9928% 9930% 9932% 9934% 9936% 9938% 9940% 9942% 9944% 9946% 9948% 9950% 9952% 9954% 9956% 9958% 9960% 9962% 9964% 9966% 9968% 9970% 9972% 9974% 9976% 9978% 9980% 9982% 9984% 9986% 9988% 9990% 9992% 9994% 9996% 9998% 10000% 10002% 10004% 10006% 10008% 10010% 10012% 10014% 10016% 10018% 10020% 10022% 10024% 10026% 10028% 10030% 10032% 10034% 10036% 10038% 10040% 10042% 10044% 10046% 10048% 10050% 10052% 10054% 10056% 10058% 10060% 10062% 10064% 10066% 10068% 10070% 10072% 10074% 10076% 10078% 10080% 10082% 10084% 10086% 10088% 10090% 10092% 10094% 10096% 10098% 10100% 10102% 10104% 10106% 10108% 10110% 10112% 10114% 10116% 10118% 10120% 10122% 10124% 10126% 10128% 10130% 10132% 10134% 10136% 10138% 10140% 10142% 10144% 10146% 10148% 10150% 10152% 10154% 10156% 10158% 10160% 10162% 10164% 10166% 10168% 10170% 10172% 10174% 10176% 10178% 10180% 10182% 10184% 10186% 10188% 10190% 10192% 10194% 10196% 10198% 10200% Committed occupancy of office portfolio (%) Average gross rent per month for office portfolio (S$ psf) 19

20 Commercial - Singapore Active Capital Recycling Keeps Balance Sheet Robust Divestment of 50% stake in CapitaGreen to CapitaLand Commercial Trust for S$318.3 million 1 Note: 1. Debt of S$445.0 million (50% basis) assumed by CCT upon completion CapitaGreen 20

21 Raffles City Portfolio On-Track For Upcoming Raffles City Projects Artist s Impression Raffles City Changning Office Tower 2/3: Operational Retail: 2Q 2017 Office Tower 1: 2H 2017 Raffles City Hangzhou Office: Operational Retail: 2Q 2017 Hotel and Serviced Residence : 2018 Raffles City Shenzhen Office: Operational Retail and Serviced Residence : 2Q 2017 Raffles City Chongqing Office, Retail and Serviced Residence : 2018 Hotel: Note: 1. Refers to the expected year of opening of the first component of Raffles City Chongqing 21

22 Click Raffles to City edit Portfolio Master text styles Raffles City Changning Scheduled To Open In 2Q 2017 Office Towers 3 & 2 Leasing Achieved 95% & 63% Committed Occupancy Respectively Retail Achieved Pre-leasing Rate At 97% Overall Construction On Track Interior Fitting Out In Progress 22 Note: Figures stated above as of 31 March 2017

23 Click Raffles to edit City Master Portfoliotext styles Raffles City Hangzhou Scheduled To Open In 2Q 2017 Retail Pre-Leasing Rate At 99% Façade Completed Interior Fitting Out In Progress 23 Note: Figures stated above as of 31 March 2017

24 Click Raffles to City edit Portfolio Master text styles Raffles City Shenzhen Scheduled To Open In 2Q 2017 Retail Pre-Leasing Rate At 95% Overall Construction On Track Landscaping Of Park Commenced 24 Note: Figures stated above as of 31 March 2017

25 Click Raffles to edit City Master Portfoliotext styles Raffles City Chongqing 2 Towers Have Reached Level 30 Bird s Eye View Of The Site Tower Construction Progressing Well 25 Note: Figures stated above as of 31 March 2017

26 Integrated Development Capital Square, Shanghai Opening In 2Q 2017 Formerly Known As Hanzhonglu Commercial (Plot 95) An integrated development comprising office and retail components Total gross floor area of ~75,000 sqm Located in Jing An district, near West Nanjing Road commercial hub Connected to three metro lines Capital Square, Shanghai 26

27 Raffles City Portfolio Set Up US$1.5 Billion RCCIP III To Grow AUM Raffles City China Investment Partners III (RCCIP III) Largest private equity partnership established by CapitaLand Investing in prime integrated developments in gateway cities in China, with a lifeof eight years CapitaLand subscribed 41.7% sponsor stake in RCCIP III Successfully expanded pool of investors by attracting new investors from Middle East and North America On Track To Grow Assets Under Management Of Up To S$10 Billion By

28 Commercial Singapore Office Of The Future Expanding Coworking Space In Various Locations Singapore: Joint venture with Collective Works provides first premium coworking space in the CBD China: URWork in CapitaMall Minzhongleyuan and CapitaMall Wangjing URWork Soft Opened in CapitaMall Minzhongleyuan On 28 Dec 2016 Artist s Impression Artist s Impression URWork in CapitaMall Wangjing Opening in 2Q 2017 Vietnam: toong at The Oxygen coworking space in Ho Chih Min City 28

29 Click Integrated to edit Development Master text styles Real Estate Of The Future Artist s Impression Redevelopment Of Funan DigitaLife Mall Into An Integrated Development Aim to inspire a new Live-work-play paradigm in Singapore Incremental NPI of >S$36 million 1 per annum, estimated cost of S$560 million 2 Funan Target completion date: 4Q Proposed Redevelopment Of Golden Shoe Car Park Pending authorities approval and feasibility study Potential redevelopment into one million sq ft of commercial gross floor area 29 Golden Shoe Car Park Note: 1. Date and incremental figures are based on CapitaLand Mall Trust Manager s estimates and subject to final development plan and approvals 2. Proposed development and related costs such as financing, technology and professional fees Comprising office tower of up to 280m above ground, on par with the tallest buildings in the Central Business District

30 Click to edit Master text styles Business Highlights Shopping Malls 30 Plaza Singapura, Singapore

31 Shopping Malls Retail Asia s Leading Mall Developer, Owner And Manager Singapore China Malaysia Japan India Total GFA (mil. sq ft) Property Value (S$ bil.) Number of Malls % GFA Property Value No. of Malls 2% 6% 4% 14% 1% 1% 8% 4% 7% 40% 18% 54% 72% Singapore China Malaysia Japan India Note: 1. The above figures include projects owned/ managed by CMA as at 31 Dec 2016 and the shopping mall at La Botanica, of which management contract was announced in January The Property Value includes only those projects that CMA owns. 2. The number of malls has increased from 103 (30 Sep 2016) to 104 due to the inclusion of shopping mall at La Botanica. The GFA has also been revised accordingly %

32 Shopping Malls Operational Highlights Performance in FY 2016 remains steady Singapore China Same-mall 1 NPI growth +0.9% % 6,7 Committed occupancy rate % 94.5% NPI yield on valuation 3 5.6% 5.2% Tenants sales % total tenants sales +10.2% total tenants sales +1.4% per sq ft +3.2% per sq m Shopper traffic % +1.0% Note: 1. This analysis compares the performance of the same set of property components opened/acquired prior to 1 Jan Committed occupancy rates as at 31 Dec NPI yields based on valuations as at 31 Dec China: Excludes three master-leased malls. Tenants sales from supermarkets and department stores are excluded 5. Excludes Funan which has closed in 2H 2016 for redevelopment 6. China s same-mall NPI growth for FY 2016 would have been at 7.4% if not for higher property tax due to change in basis of assessment in Beijing which took effect from 1 Jul Excludes CapitaMall Shawan (under AEI in 2015) and CapitaMall Kunshan 32

33 Shopping Malls Record One Million Square Metres Of Retail GFA To Open In 2017 Artist s Impression Artist s Impression CapitaMall Westgate, Wuhan Artist s Impression Suzhou Center Mall Artist s Impression Raffles City Hangzhou LuOne, Shanghai Artist s Impression Raffles City Changning Artist s Impression Melawati Mall, Kuala Lumpur Forum Centre City, Mysore Raffles City Shenzhen 33

34 Shopping Malls Expand Mall Network Through Management Contracts Manage 7-storey retail component of Fortune Finance Centre in Changsha and a 5-storey mall in La Botanica township in Xi an Contracts cover asset planning, pre-opening & retail management Malls to open in 2018 and 2019 respectively Artist s Impression Artist s Impression Retail Component Of Fortune Finance Center, Changsha, China Shopping Mall At La Botanica, Xi an, China 34

35 Shopping Malls Drawing Crowds With Unique Experiences And Personalised Services Robot Waiters Serving Patrons At CapitaMall Aidemengdun, Harbin, China In-store Beauty Mirror Experience At Tampines Mall, Singapore Street Food Concept At Sungei Wang Plaza, Kuala Lumpur, Malaysia Largest Cos-play Studio At Vivit Minami-Funabashi, Tokyo, Japan 35

36 Shopping Malls Leveraging Technology To Innovate The Retail Experience ewallet A.I. Chatbot + Grab/Chope booking Activity log Integrated Apple/Android Pay Digital Deals Reward codes Machine learning OCR for receipt scanning 36

37 Click to edit Master text styles Business Highlights - Serviced Residences 37 Ascott Huai Hai Road Shanghai, China

38 Serviced Residences World s Largest International Owner-Operator Added record-breaking10,500 units in FY 2016 Expansion of Ascott hits high gear as it crosses 50,000 units globally Opened 20 properties with more than 3,700 units in 2016 fastest pace ever Ascott Orchard Singapore Somerset Yangtze River Chongqing Citadines Fusionopolis, Singapore 38

39 Serviced Residences Enter New Market: Ascott Makes First Foray Into Ireland Through acquisition of an operating prime property in Dublin for EUR55.1 million (S$83.6 million) Located within Temple Bar, the vibrant cultural heart of Dublin s city centre. The 136-unit hotel is close to museums, boutiques, restaurants, cafés, galleries and attractions such as the famous Dublin Castle, Guinness Storehouse and Jameson Distillery. Temple Bar Hotel 39

40 Serviced Residences Launched New Brands To Strengthen Competitive Edge La Clef Louvre Paris Tujia Somerset South Nanjing SMU Metropole Bangkok 40

41 Click to edit Master text styles Awards & Sustainability 41 One George Street, Singapore

42 Awards Key Awards & Accolades (CapitaLand Limited) FinanceAsia Asia s Best Companies Best Managed Company in Singapore (First) - Best at Investor Relations in Singapore (First) - Best at Corporate Social Responsibility in Singapore (First) - Most Committed to Corporate Governance in Singapore (Second) World Finance Best Corporate Governance, Singapore 2016 Securities Investors Association (Singapore) Investors Choice Awards 2016: - Singapore Corporate Governance Award 2016, Big Cap (Runner Up) - Singapore Corporate Governance Award 2016, Diversity (Winner) 42

43 Sustainability Sustainability Accolades (CapitaLand Limited) Top 3 ESG companies in real estate industry A constituent of FTSE4Good Index Series, FTSE4Good ASEAN 5 Index Dow Jones Sustainability World and Asia Pacific Indexes 2016 A constituent of MSCI Global Sustainability Index and MSCI Global SRI Index Series 2016 Regional Sector Leader for Asia, Diversified, 2016 A constituent of Euronext Vigeo Index: World 120 SGX Sustainability Leaders Indices STOXX Global ESG Leaders Indices Channel NewsAsia Sustainability Ranking 2016 *The inclusion of CapitaLand Limited in any MSCI index and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of CapitaLand Limited by MSCI or any of its affiliates. The MSCI Indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates. 43

44 Sustainability Corporate Social Responsibility CapitaLand Volunteer Day 22 International Volunteer Expeditions To date 28 CapitaLand Hope Schools In China & Vietnam >500 Participants To date >2,500 Staff Volunteers & Community Partners 44

45 Conclusion Six Battery Road, Singapore

46 Conclusion Real Estate Platform Of The Future World Class Real Estate Platform Asia s Leading Mall Operating Platform Global Serviced Residence Operating Platform One Of Asia s Largest Real Estate Investment Managers Resilient Business Model Embarked On Digital Journey To Strengthen Existing Platform 46

47 Thank You