WING TAI PROPERTIES LIMITED 永泰地產有限公司 INTERIM RESULTS

Transcription

1 WING TAI PROPERTIES LIMITED 永泰地產有限公司 INTERIM RESULTS 2017

2 Agenda A Snapshot of 1H 2017 Key Achievements Sustainable Growth Land Bank Business Review Property Development Property Investment & Management Hospitality Investment & Management Strengthened Capital Structure Future Plans & Strategies 2017 Interim Results Highlights Appendix 2

3 Disclaimer This presentation contains forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forwardlooking terminology such as believe, expect, anticipate, estimate, plan, project, target, may, will or similar words that express an indication of actions or results of actions that may or are expected to occur in the future. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. These forward-looking statements are based on our own information and on information form other sources we believe to be reliable. Our actual results may be materially less favourable than those expressed or implied by these forward-looking statements which affect the market price of our shares. 3

4 A Snapshot of 1H 2017

5 Key Achievements We focus on growing a portfolio that offers a solid base of predictable, recurring revenue from the investment/hospitality properties we own and manage, balanced by our premium residential developments that provide outperformance driven by dedicated management. This consistent strategy has allowed us to build a balanced and welldiversified portfolio of residential, commercial and hospitality assets with a strong presence in Hong Kong, London and other key gateway cities in Asia. We achieved consolidated profit attributable to shareholders of HK$450 million in the first half of 2017, up 50% from the same prior year period. The increase was mainly attributable to a higher profit from property development and investment, as well as a higher fair value gain on investment properties and financial instruments. Leveraging the successful sale of all typical units of Homantin Hillside, we further launched a limited collection of special units, which were sold at record-high prices. In July, Le Cap, our luxury low-density residential development at the peak of Kau To Shan, obtained its occupation permit. The Shau Kei Wan harbour-front project also obtained its pre-sale consent. 5

6 Key Achievements cont d Our investment property portfolio in Hong Kong and Central London proved resilient in terms of occupancy and average rental rates. Backed by a strong and quality tenant profile and proactive asset enhancement initiatives, the portfolio is set to heighten its rental and capital values over time. Continued to grow the Lanson Place brand as a pan-asian hospitality brand and expedite expansion in Hong Kong and key cities in Asia. Properties under management enjoyed a satisfactory performance with sustained occupancy rates. Tianfu Square Serviced Suites by Lanson Place in Chengdu is scheduled for opening by the fourth quarter of To further diversify our funding source and lengthen our funding profile, S$160 million 4.35% unrated senior guaranteed perpetual capital securities under our US$1 billion Medium Term Note Programme were issued in August. The positive market response reflects a strong endorsement of our credibility for long-term funding among regional investors. 6

7 Sustainable Growth HK$ M Shareholders Equity 25,000 23,000 21,000 19,000 17,000 15, H 2017 To further grow and diversify our asset portfolio to create long-term value for our stakeholders 7

8 Balanced and Diversified Land Bank in Hong Kong 1 The Warren Siu Sau, Tai Lam, Tuen Mun Shau Kei Wan So Kwun Wat Road, Tuen Mun 8 Castle Peak Road, Tai Lam, Tuen Mun Landmark East W Square 11 Shui Hing Centre 12 Winner Godown Building 13 Development properties Investment properties 8

9 Land Bank (as at 30 June 2017) Strategic land bank with focus on Hong Kong Land Bank Overview (sq. ft.) Investment Property 75% Residential Development 25% Attributable Gross Floor Area / Saleable Area Hong Kong ( 000 sq. ft.) China ( 000 sq. ft.) Others ( 000 sq. ft.) Total ( 000 sq. ft.) Valuation as at 30 June 2017 (HK$ M) Residential Development 849* N/A Investment Property # Office/Retail 1, (London) 1,558 18,260 Industrial ,417 Hospitality and Others (Beijing) 100 (Kuala Lumpur) 280 2,190 Subtotal 2, ,522 22,867 Total 3, ,371 N/A * Includes (i) unsold units and (ii) units under development # Excludes miscellaneous industrial properties and agricultural land 9

10 Business Review

11 Property Development 11

12 Sales and Development Pipeline (as at 30 June 2017) A sustainable and scalable residential project pipeline Property Development Portfolio Available Gross Floor Area ( 000 sq. ft.) Presold Gross Floor Area ( 000 sq. ft.) Estimated Completion Group s Interest Hong Kong Providence Bay* 28 N/A 15% Completed Development Providence Peak* 7 N/A 15% The Graces* 5 N/A 15% The Warren* 1 N/A 100% The Pierre* # N/A 100% Homantin Hillside* 12 N/A 50% Hong Kong Projects Under Development Le Cap 142 N/A 35% La Vetta 318 N/A 35% Shau Kei Wan 46 N/A 100% Siu Sau, Tai Lam, Tuen Mun 159 N/A 100% So Kwun Wat Road, Tuen Mun 264 N/A 100% Castle Peak Road, Tai Lam, Tuen Mun * These properties are stated on a saleable area basis # All units sold in 1H N/A 70% 12

13 Completed Development in Hong Kong Providence Bay, Providence Peak, The Graces, Pak Shek Kok, Tai Po Providence Bay (482 units): approximately 97% of the residential units have been sold Providence Peak (548 units): approximately 99% of the residential units have been sold The Graces (193 units): approximately 99% of the residential units have been sold Of which, around 3% and 2% of Province Bay and Province Peak were sold, respectively, in 1H

14 Completed Development in Hong Kong cont d The Warren (103 units), 9 Warren Street, Causeway Bay Approximately 99% of the residential units have been sold Of which, around 3% were sold in 1H

15 Completed Development in Hong Kong cont d The Pierre (77 units), 1 Coronation Terrace, Mid-Levels West All of the residential units have been sold Of which, around 1% was sold in 1H

16 Completed Development in Hong Kong cont d Homantin Hillside (173 units), 8 Wai Yin Path, Hung Hom Saleable area of approximately 128,000 sq. ft. In close proximity to Ho Man Tin MTR station of the Kwun Tong Line Extension and the future Shatin to Central Link Approximately 94% of the residential units have been sold, including all typical units at the development Of which, around 2% were sold in 1H

17 Project Under Development in Hong Kong Le Cap and La Vetta, Kau To, Shatin Two low-density luxury residential projects at peak of Kau To Shan Combined gross floor area of approximately 460,000 sq. ft. Occupation permit of Le Cap obtained in July 2017 Superstructure work of La Vetta in progress Le Cap and La Vetta scheduled for completion in 2017 and early 2018, respectively 17

18 Project Under Development in Hong Kong cont d Shau Kei Wan Prime harbour-front residential site Gross floor area of approximately 46,000 sq. ft. Pre-sale consent obtained in July 2017 Superstructure work in progress Project scheduled for completion in

19 Project Under Development in Hong Kong cont d Siu Sau, Tai Lam, Tuen Mun Gross floor area of approximately 159,000 sq. ft. Earmarked for low-density residential development Foundation work and site formation work in progress Project scheduled for completion by

20 Project Under Development in Hong Kong cont d So Kwun Wat Road, Tuen Mun Gross floor area of approximately 264,000 sq. ft. Earmarked for medium-density residential development Foundation work and site formation work commenced Project scheduled for completion in

21 Project Under Development in Hong Kong cont d Castle Peak Road, Tai Lam, Tuen Mun Gross floor area of approximately 294,000 sq. ft. Earmarked for medium-density residential development Ground investigation work commenced Project scheduled for completion in

22 Property Investment & Management 22

23 Investment Portfolio in Hong Kong Gross floor area ( 000 sq. ft.) Occupancy as at 30 June 2017 Grade A Offices Landmark East (AIA Kowloon Tower/ AXA Tower) 1,338 94% W Square % Industrial Properties Winner Godown Building 497 Shui Hing Centre % As at 30 June 2017, the Group s portfolio of investment properties, comprising 1.5 million square feet of Grade A office buildings and 0.7 million square feet of industrial buildings in Hong Kong, had an aggregate fair market valuation of approximately HK$19,260 million. 23

24 Investment Portfolio in London Commercial Property at Savile Row/Vigo Street, West End Net internal area of approximately 14,000 sq. ft. of Grade A office and retail space Commercial Property at Brook Street, West End Net internal area of approximately 19,000 sq. ft. of Grade A office and retail space Commercial Property at Berkeley Square, West End Net internal area of approximately 7,900 sq. ft. of Grade A office space As at 30 June 2017, the above three wholly-owned properties achieved an average occupancy of approximately 73% 24

25 Investment Portfolio in London cont d Commercial Property at Fleet Place, the City Group s interest of 25% Net internal area of approximately 186,000 sq. ft. of Grade A office and retail space Achieved full occupancy Commercial Property at Cavendish Square, West End Group s interest of 33% Net internal area of approximately 11,000 sq. ft. of office space Related refurbishment and expansion works scheduled for completion in the first half of

26 Investment Portfolio in BEIJING Central Park, 6 Chaoyangmenwai Avenue, Chaoyang District 33 units Gross floor area of approximately 6,200 sq. m. As at 30 June 2017, achieved occupancy of approximately 79% As at 30 August 2017, all units were leased 26

27 Hospitality Investment & Management 27

28 Hospitality Portfolio Strong brand recognition in HK & key gateway cities in Asia by customers and property owners Lanson Place Properties Investment & Management Lanson Place Hotel Group s interest: 100% No. of rooms: 194 Location: Hong Kong Chengdu Shanghai Lanson Place Lifestyle Services Lanson Place Bukit Ceylon Serviced Residences Group s interest: 50% No. of units: 150 Location: Kuala Lumpur Hong Kong The Warren The Pierre Homantin Hillside Kuala Lumpur Singapore 28

29 Hospitality Portfolio cont d Strong brand recognition in HK & key gateway cities in Asia by customers and property owners Lanson Place Properties Management Lanson Place Jin Qiao Serviced Residences No. of units: 102 Location: Shanghai Aroma Garden Serviced Suites by Lanson Place No. of units: 79 Location: Shanghai One Sunland Serviced Suites managed by Lanson Place No. of units: 188 Location: Shanghai Parkside Serviced Suites by Lanson Place No. of units: 182 Location: Shanghai Lanson Place Jinlin Tiandi Serviced Residences No. of units: 106 Location: Shanghai Chengdu Shanghai Hong Kong Kuala Lumpur Singapore Tianfu Square Serviced Suites by Lanson Place No. of units: 162 Location: Chengdu Two MacDonnell Road No. of units: 213 Location: Hong Kong Ambassador Row Hotel Suites by Lanson Place No. of units: 221 Location: Kuala Lumpur Winsland Serviced Suites by Lanson Place No. of units: 109 (under renovation) Location: Singapore 29

30 Hospitality Investment and Management Lanson Place currently manages nine third-party serviced residences, of which five are in Shanghai Other serviced residences are located in Hong Kong, Singapore, Kuala Lumpur and Chengdu Tianfu Square Serviced Suites by Lanson Place, located at the main financial district of Luomashi, Chengdu, is targeted to open by the fourth quarter of 2017 Awards and recognitions: Lanson Place Hotel, Hong Kong: Asia s Most Excellent Small Luxury Hotel at Asia Awards of Excellence 2017 Aroma Garden Serviced Suites by Lanson Place, Shanghai: Best Serviced Apartment of China at 12th China Hotel Starlight Awards Lanson Place Bukit Ceylon Serviced Residences, Kuala Lumpur: Malaysia s Leading Serviced Apartments 2017 at World Travel Awards 2017; 2017 Travelers Choice by TripAdvisor Ambassador Row Hotel Suites by Lanson Place, Kuala Lumpur: Gold Award in the category of Accommodation 4 Star Hotel at Kuala Lumpur Mayor s Tourism Awards

31 Solid Capital Structure November 2012 First drawdown of S$170 million unrated 10-year fixed rate bond at a coupon rate of 4.25% January 2013 Second drawdown of HK$480 million unrated 10-year fixed rate bond at a coupon rate of 3.95% May 2013 Third drawdown of HK$100 million unrated 10-year fixed rate bond at a coupon rate of 3.8% August 2014 Fourth drawdown of HK$100 million unrated 7-year fixed rate bond at a coupon rate of 4.3% October 2014 Fifth drawdown of HK$100 million unrated 7-year fixed rate bond at a coupon rate of 4.1% November 2014 Sixth drawdown of HK$100 million unrated 10-year fixed rate bond at a coupon rate of 4.5% August 2017 Seventh drawdown of S$160 million 4.35% unrated senior guaranteed perpetual capital securities Access to bond market since 2012, raising a total of approximately HK$1,900 million unrated fixed rate bonds, a reflection of strong market recognition and confidence in our financial position. As at 30 June 2017, the Group maintained a healthy gearing at 12.5%. Total cash on hand and unutilised revolving loan facilities were HK$4,466 million. In August 2017, the Group issued S$160 million 4.35% unrated senior guaranteed perpetual NC3 capital securities, which are listed on the Singapore Stock Exchange Securities Trading Limited. Final order book was over S$750 million, representing 4.7x oversubscription. The securities will be accounted for as equity in the Group s consolidated financial statement. Ample war chest for future investments and acquisition opportunities. 31

32 Future plans & strategies

33 Future Plans & Strategies In near term In mid-to-long term Property Development Property Investment & Management Hospitality Investment & Management Capture right market window to launch Le Cap at the peak of Kau To Shan, and continue the sales of remaining units and car parking spaces at existing completed projects Maximise rental reversions upon rent review or lease renewals Proactive asset enhancement initiatives to enhance recurring rental income and optimise rental and capital values Foster our exclusive lifestyle service offerings Drive the Lanson Place brand in both existing and new markets in the region through long-term third party management contracts Taking advantage of public land tender programme and private treaty for development properties, be they residential or commercial, to expand land bank and bolster development pipeline Continue to explore and acquire yieldenhancing investment avenues in Hong Kong, London and other key gateway cities for portfolio expansion and asset diversification Make Lanson Place Lifestyle Services a service of choice at our developments Extend footprint and offerings of Lanson Place in Asia and beyond 33

34 2017 interim Results highlights

35 Financial Results Summary For the six months ended 30 June (HK$ M) Revenue % Gross profit % Change in fair value of investment properties and financial instruments % Profit from operations % Share of results of joint ventures/associates 43.0 (6.5) 762% Profit attributable to equity holders of the company % Basic earnings per share (HK$) % Interim dividend per share (HK cents) % Dividend payout % 35

36 Segment Results Overview (HK$ M) Property Development Revenue % Profit/(loss) before taxation 9.4 (31.6) 130% Property Investment & Management Revenue % Fair value changes in investment properties and financial instruments % Profit before taxation % Profit before taxation excluding fair value changes in investment properties and financial instruments and a one-off compensation income % Hospitality Investment & Management Revenue % Fair value changes in investment properties and financial instruments For the six months ended 30 June % Profit before taxation % Profit before taxation excluding fair value changes in investment properties and financial instruments % 36

37 Balance Sheet Summary (HK$ M) 30 June December 2016 Total assets 31, , % Net assets 24, , % Equity attributable to equity holders of the company 24, , % Investment properties 22, , % Properties for sale 3, , % Bank balances and cash 2, , % 37

38 Balance Sheet Summary cont d (HK$ M) 30 June December 2016 Total borrowings 5, , % Net borrowings 3, , % Gearing ratio (net borrowings to net assets) Maturity profile of borrowings Repayable: 12.5% 14.4% Within one year 354 7% 477 9% Between one and two years % % Between two and five years 2,370 44% 1,725 33% After five years 1,831 34% 2,271 44% 5, % 5, % Financial Resources Bank balances and cash 2,268 1,683 Unutilised revolving loan facilities 2,198 2,193 4,466 3,876 38

39 appendix

40 Investment Thesis 1 A credible and integrated property player in Hong Kong with a balanced and well-diversified development and investment portfolio spanning the region and beyond 2 Strong track record in developing luxury and quality residential properties at premium values 3 Owns a diversified portfolio of high-quality Grade A offices and investment properties, enabling a sustainable and growing recurring income stream 4 Manages high-end serviced residences and boutique hotel with high occupancy across Hong Kong, mainland China and South-East Asia under the Lanson Place brand 5 Strong capital structure and healthy gearing with good access to capital markets 40

41 Five Years Financial Summary Interim Results Full Year Results (HK$ M) RESULTS 1H H (Restated) Continuing operations revenue , , , , Profit before taxation from continuing operations , , , , ,612.1 Taxation (53.5) (57.9) (111.2) (83.2) (89.5) (91.4) (78.4) Profit for the period from continuing operations , , , , ,533.7 Profit for the period from discontinued operations Profit for the period/year , , , , ,793.8 Attributable to: Equity holders of the Company - From continuing operations , , , , , From discontinued operations , , , , ,736.7 Non-controlling interests - From continuing operations , , , , ,

42 Five Years Financial Summary cont d As at 30 June As at 31 December (HK$ M) 1H (Restated) ASSETS AND LIABILITIES Total assets 31, , , , , ,578.1 Total liabilities (6,821.7) (6,464.0) (4,873.6) (4,847.6) (5,809.9) (5,216.3) Non-controlling interests (4.5) (3.5) (1.0) (1.2) (1.5) (2.0) Equity attributable to the equity holders of the Company 24, , , , , ,