47
1 Investor Meetings February 2006
1
Investor Meetings February 2006
2
Highlights
n Introduction
n Highlights
n Operations Review
n Market Outlook
n Going Forward
3
Introduction
4
Introduction
n One of the largest listed property companies in Singapore by total assets ($5.5 bil @ 31 Dec 2005)
n Established developer of quality housing and investmentgrade offices
n Diversified in Asia with focus in Singapore, China, India, Vietnam, Indonesia and Thailand
n Current focus on property development for sale in growth cities in Asia and property fund management
5
n Gain foothold in new countries, cities and segments Ø Secured residential site in Bangalore Ø Secured villa site in Tianjin and township site in Wuxi
n Developing residential townships in the region Ø Over 20,000 units in the pipeline :
¬ Chengdu, China ¬ Ho Chi Minh City, Vietnam ¬ Jakarta, Indonesia ¬ Wuxi, China
Expansion Drive
6
Highlights of FY05
7
Snapshot
Financial
n PATMI 17.3% to $155.7m
n ROE from 8.6% to 9.5%
n Overseas earnings from 43% to 59% of PATMI
Operations
n Awarded BFC site at New Downtown
n One Raffles Quay 70% precommitted
n Homes sold : 2,700 overseas (including Ph1 970 units of township in China) 600 in Singapore
8
$m FY2005 FY2004 % Chg Turnover 586.4 476.2 23.1 EBITDA 163.9 124.5 31.6 Operating Profit 146.6 111.1 32.0 Pretax Profit 183.4 139.9 31.1 PATMI before EI 154.5 132.7 16.4 EI 1.2 * nm PATMI after EI 155.7 132.7 17.3 Overseas Earnings (% of PATMI) 59.0 43.3 58.6 EPS (¢) 21.8 18.7 16.6 NTA/Share ($) 2.35 2.26 4.0 Debt/Equity Ratio 1.14 0.96 18.8 Annualised ROE (%) 9.5 8.6 10.5 * Being the Group’s share of $37.8m gain from Bugis Junction transactions less $36.6m provision for diminution in value of the Group’s investment in associated companies ($14.9m) and hotels in Myanmar ($21.7m)
Financial Performance
9
Recognition for Corporate Transparency
n Business Times Corporate Transparency Index 2005
– Only property developer in Top 20 list
n SIAS Investors’ Choice Awards 2005 – Runnerup for Most Transparent Company under Properties category
– Merit Award for Singapore Corporate Governance Award
n Storebrand’s “Best In Class” Status – For environmental and social performance reporting
Recent Awards
10
Recent Awards
Recognition for Product Excellence
n The Waterfront, Chengdu Most Popular Residential Development with Foreigners by China City Property Exposition
n 8 Park Avenue, Shanghai Top 10 Foreign Developers by Shanghai Real Estate Trade Association
n The Botanica, Chengdu Model Residential Development for International Community by Chengdu Real Estate Brand Promotion Centre
n Tianjin Merryfield Company with the Most Potential Property Development Co. by Jinnan District Government
n Saigon Centre, HCMC Gold Medal Vietnam Quality Award by Ministry of Science, Technology and Environment
n Royal Park, Hanoi Golden Dragon Prize from Vietnam Ministry of Planning and Investment
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Operations Review
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Singapore
Residential
n About 600 units sold
n Good sales at new launches:
Ø Park Infinia at Wee Nam : 192 (96%) of 200 launched units sold
Ø The Belvedere : 116 (97%) of 120 launched units sold
n Sold two Cluny Hill bungalow plots
Operations Review
13
n Blue chip tenants include : ¬ ABN AMRO ¬ Deutsche Bank ¬ UBS ¬ Ernst & Young ¬ Soc Gen Private Banking ¬ Barclays Capital
n 90% precommitment targeted by TOP (2H2006)
Singapore
Office
n One Raffles Quay : 70% precommitted
Operations Review
14
Singapore
Office
n Awarded Business & Financial Centre (BFC) site (Total GFA : 438,000 sm)
n Embarking on Ph 1 (GFA : 244,000 sm) ¬ > 70% for office ¬ Rest or 64,000 sm mainly for residential
¬ Marketing Ph 1 residential end2006 ¬ Ready by 2010
n 8 years option for the rest
Bayfront MRT Station
Landmark MRT Station
Integrated Resort & Casino
One Marina Boulevard
One Raffles Quay
The Sail @ Marina Bay
Operations Review
15
Singapore
n Set up KREIT Asia
Ø Initial portfolio of 4 prime office buildings ¬ Value : S$630m ¬ Total NLA : 73,300 sm ¬ Avg occupancy : 95%
Ø Distribution in specie : One unit for every five KLL shares Ø Retention by KLL : 40% Ø Listed by : End1Q06
Prudential Tower (10 floors) Keppel Towers / GE Tower Bugis Junction Towers
Operations Review
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Overseas
n About 2,700 units sold, mostly in China (2,400 units) and India (328 units)
n Gained control of Dragon Land with current 67% stake
Ø Additional platform for middleincome housing in China
Operations Review
17
Fund Management
n Strong interest in Asia from investors
n Assets Under Management (AUM) about US$1.4 bil when two funds are fully invested
n Asia No. 1 Property Fund (US$243m equity) Ø 85% of fund invested in Hong Kong, Singapore, Malaysia,
South Korea and Japan
n Alpha Core Plus Real Estate Fund (US$165m equity in 1st closing) Ø 44% of fund invested in Japan and Singapore
Ø Second closing in early 2006 meeting with good response
Operations Review
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Market Outlook
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n Strong market recovery in 2005
Ø Almost 9,000 new units sold, up 74% from 2003
Ø Price index up 3.9%, highest since 1999
Ø Good demand and price increase for higherend properties with unique qualities
n Sales to improve with economic growth
Singapore Residential Market
20
Residential Demand and Prices on the Uptrend
181.4
* Data includes completed new units sold from Year 2000 onwards
URA Private Residential Demand and Price Index
5,785
8,955 9,565
5,520 6,096
8,171
5,406
7,189
9,485
5,156
173.1
151.6
100
134.2 132.8
117.2 115.1 112.8 113.8 118.2
0
2,000
4,000
6,000
8,000
10,000
12,000
1996
1997
1998
1999
2000*
2001
2002
2003
2004
2005
Units
80
100
120
140
160
180
Index
Total Primary Demand Price Index
Source : URA
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n Highest takeup (almost 2 mil sf) in 5 years Ø Grade A office occupancy : 92.5% (Source : CBRE) Ø Avg Grade A office rentals : $5.70 psf, up 23.3% (Source : CBRE)
n Continued demand for prime office space
Singapore Office Market
n Limited new supply of < 1 mil sf p.a. for next few years
Future Supply of Office Space
2.00
0.59
1.65
0
0.7
1.4
2.1
2006 2007 2008 2009 2010
mil sf
1015 yr average annual takeup
Precommitted space at ORQ
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Further Upside for Office Rentals and Occupancy
78
80
82
84
86
88
90
92
1Q01
2Q01
3Q01
4Q01
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
1Q05
2Q05
3Q05
4Q05 0
1
2
3
4
5
6
7
8 Islandwide Occupancy
Prime Rentals
% S$psf/mth
87.2%
Source : URA, CBRE
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n Sustainable genuine demand for quality housing and townships in Asia
n Housing demand underpinned by economic growth, urbanisation, favourable demographics trends and positive government policies
Market Outlook Overseas
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Going Forward
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n Launch residential units including waterfront projects
Ø Keppel Bay Phase 2 (designed by Daniel Libeskind)
Ø BFC Phase 1 residential homes
Going Forward Singapore
n Develop and market BFC to capitalise on transformation of Marina Bay
n List KREIT Asia in 1Q06
n Submit competitive bid for IRs with Harrah’s
Keppel Bay Phase 2
Caribbean at Keppel Bay
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n Jointly in bid with Harrah’s for both IR sites at Marina Bay and Sentosa
Ø Forged alliances with some of the finest industry players :
¬ MICE specialists SMG, CEMS and Suntec Singapore
¬ Live entertainment company AEG Live
¬ Highend retail and shopping mall developers Gordon Group and Taubman Asia
¬ Cultural Institution Centre Pompidou
n Renowned architect Daniel Libeskind to design Marina Bay IR
Going Forward Integrated Resort
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à Land price : $1.2 bil à Site area : 20.6 ha à GFA : 270,000 570,000 sm
Going Forward Integrated Resort
Source : URA
BFC
Marina Bay IR ORQ
The Esplanade
“Necklace of attractions" in the Marina Bay the IR, the Business Financial Centre and The Esplanade.
Marina Bay IR
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Units to Project Location Launch
Devonshire Rd (60% stake) Devonshire Rd 100 BFC (Ph1) Residential (33.3% stake) Marina Blvd/Central Blvd 200 Keppel Bay Phase 2 (30% stake) Keppel Bay Drive 200 Avenue Park (52% stake) Sixth Avenue 100 Caribbean at Keppel Bay * Keppel Bay Drive 126 #
Park Infinia at Wee Nam * Wee Nam Rd 294 Urbana * River Valley Rd 35 The Belvedere * Meyer Rd 51 * Existing launches # Excluding 168 units set aside for corporate leasing
Possible Residential Launches Singapore 2006
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n Launch new residential projects including :
Ø Villas in Shanghai and Tianjin, China
Ø Townships in Chengdu, China and Jakarta, Indonesia
n Keep up expansion drive in promising markets in Asia
n Continue to pursue residential and township developments
Going Forward Overseas
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Units to Launch Project 2006 2007 2008
China 8 Park Avenue, Shanghai * 499 Villa Riviera, Shanghai ^ 168 Park Avenue Central, Shanghai ^ 708 The Seasons, Beijing * 742 The Waterfront, Chengdu * 305 The Botanica (Phase 2), Chengdu ^ 1,479 The Botanica (Phase 3), Chengdu ^ 950 The Botanica (Phase 4), Chengdu ^ 1,000 Tianjin Villas, Tianjin ^ 40 120 Wuxi Township, Wuxi (Phase 1) ^ 800 800 * Balance units ^ New launches
Overseas Residential Projects
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Units to Launch Project 2006 2007 2008 Vietnam
Villa Riviera, Ho Chi Minh City # * 85 Saigon Sports City (Phase 1), HCMC ^ 214 284
Thailand Villa Arcadia at Srinakarin, Bangkok * 104 215 Villa Arcadia at Watcharapol, Bangkok ^ 100 170
IndiaElita Promenade in JP Nagar , Bangalore * 519 550 170 Condominium in Kanakapura, Bangalore ^ 200 500 364
Indonesia Cakung Township (Phase 1), Jakarta ^ 300 856
# Total units revised to 101 * Balance units ^ New launches
Overseas Residential Projects
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Thank You
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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 in the current views of Management on future developments and events.
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Additional Info
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2003 2004 2005
PATMI before EI ($m) 126.4 132.7 154.5
PATMI after EI ($m) 100.6 132.7 155.7
% of Overseas PATMI b/f EI 31.6 43.3 59.0
NTA/Share ($) 2.09 2.26 2.35
Debt/Equity Ratio 0.95 0.96 1.14
ROE (%) 6.8 8.6 9.5
Dividend per share (cts) 4 5 5*
* After tax
Key Financial Indicators
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Geographical FY2005 FY2004 % Location $m % $m % Chg Comments
Singapore 63.3 41.0 75.2 56.7 (15.8) • Lower profit from sale of two Cluny Hill bungalow plots in 2005 compared with four in 2004
Other Countries 91.2 59.0 57.5 43.3 58.6 • Higher overseas contributions due mainly to profit from trading projects in China
PATMI before EI 154.5 100.0 132.7 100.0 16.4 • Better contributions from trading projects and investment properties
EI 1.2 nm • Gain of $37.8m from Bugis Junction transactions less $36.6m provision for diminution in value of investment in associated companies and hotels in Myanmar
PATMI after EI 155.7 132.7 17.3
Net Profit by Geographical Location
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Business Segment
FY2005 $m
FY2004 $m
% Chg Comments
Property
Trading 111.9 97.2 15.1 • Maiden contributions from Park Infinia at Wee Nam in Singapore and higher contributions from China’s residential projects
Investment 39.7 32.4 22.5 • Higher interest income and writeback of deferred tax provision for properties in Singapore
Hotels / Resorts 0.2 (6.2) nm • Improvement mainly from recovery of loan provided to Bintan Lagoon Resort
Others 2.7 9.3 (71.0) • Lower group tax relief compared with 2004
PATMI before EI 154.5 132.7 16.4 • Better contributions from trading projects and investment properties
EI 1.2 nm • Gain of $37.8m from Bugis Junction transactions less $36.6m provision for diminution in value of investment in associated companies and hotels in Myanmar
PATMI after EI 155.7 132.7 17.3
Net Profit by Business Segment
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% of % of Profit Recognised Project Sales Completion in FY05 ($m)
Singapore
Cluny Hill 12.7
Park Infinia at Wee Nam 40.9 20.0 5.3
Overseas
8 Park Avenue, Shanghai 38.8 35.3 39.2
The Seasons, Beijing 53.2 39.2 8.2
The Waterfront, Chengdu 67.3 65.9 11.0
Notes on Profit Recognition
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n Caribbean at Keppel Bay : 84% of 801* units sold Latest achieved price : $780 psf
n Park Infinia at Wee Nam : 96% of 200 units launched sold Latest achieved price : $930 psf
n The Belvedere : 97% of 120 units launched sold Latest achieved price : $790 psf
n Urbana : 72% of 126 units sold Latest achieved price : $950 psf
n The Linc : 61% of 51 units sold Latest achieved price : $800 psf
n Freesia Woods : 69% of 129 units sold Latest achieved price : $680 psf
Project Sales Status Singapore
* Excludes 168 units set aside as corporate residences
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n China Ø 8 Park Avenue (Shanghai) : 98% of 456 units launched sold
Latest achieved price : RMB 22,000 psm Ø The Seasons (Beijing) : 89% of 1,250 units launched sold
Latest achieved price : RMB 8,600 psm Ø The Waterfront (Chengdu) : 82% of 1,023 units launched sold
Latest achieved price : RMB 6,700 psm Ø The Botanica Ph1 (Chengdu) : All 970 units fully sold
Latest achieved price : RMB 3,900 psm
n India Ø Elita Promenade (Bangalore) : 80% of 410 units launched sold
Latest achieved price : Rs 2,600 psf
n Vietnam Ø Villa Riviera (Ho Chi Minh City) : 64% of 25 units launched sold
Latest achieved price : US$420,000 per unit
n Thailand Ø Villa Arcadia at Srinakarin, Bangkok : 96% of 50 units launched sold
Latest achieved price : Baht 7 10 mil per unit
Project Sales Status Overseas
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Singapore Office Supply (20052010)
Source : URA, CBRE and KLL
Expected Completion Proposed Office Projects NFA (sf)
2005 No new supply 2006 3 Church Street 372,865
Parakou Building 63,723 One Raffles Quay 1,310,000 VisionCrest 144,295 Sinsov Building (A&A) 29,126 SIF Redevelopment 84,390 Sub total 2,004,399
2007 No new supply 2008 Central 411,167
Selegie Rd (Hotel/Office/Shopping Ctr) 182,988 Sub total 594,155
2009 No new supply Total (20052009) 2,598,554 2010 BFC (Phase 1) 1,646,876
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Office Occupancy Costs
n Ranked 77th among 117 cities in 46 countries in cost competitiveness study
City US$ City US$ London (West End) 18,740 Sydney 7,930 Washington D.C. 15,370 New York City (Downtown) 7,560
Hong Kong 15,000 Moscow 7,550 Paris 13,980 Dubai 7,180
Frankfurt 12,830 New Delhi 6,650 Tokyo (Central 5 Wards) 11,870 Perth 5,440
Munich 10,820 Singapore 4,770 Edinburgh 9,000 Shanghai (Puxi) 4,710
Seoul 9,870 Beijing 4,680 Mumbai 8,490 Taipei 4,600
Source: DTZ (Global Office Occupancy Costs Survery Jan 2006)
Global Office Occupancy Costs (in US$ per workstation per annum)
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n Singapore occupancy cost ranked 63rd worldwide, attractive compared to other Asian cities
Office Occupancy Costs
Ranking City US$/sf/annum Ranking City US$/sf/annum 1 London (West End), England 178.67 27 New York Midtown Manhattan 53.69 2 Tokyo (Inner Central), Japan 131.10 31 Taipei, Taiwan 48.16 3 Tokyo (Outer Central), Japan 123.39 35 New Delhi, India 43.06 4 London (City), England 119.11 37 Washington DC (CBD) 41.84 5 Paris, France 89.58 39 Ho Chi Minh City, Vietnam 41.69 7 Dublin, Ireland 81.18 41 Amsterdam, Netherlands 40.72 8 Hong Kong 75.85 43 Shanghai (Pudong), China 40.49 9 Edinburgh, Scotland 75.80 44 Sydney, Australia 40.45 15 Frankfurt, Germany 63.57 45 Boston (CBD) 39.65 19 Seoul, South Korea 61.74 47 Shanghai (Puxi), China 38.83 20 Milan, Italy 60.99 50 Ottawa, Canada 37.62 23 Mumbai (Bombay), India 56.43 63 Singapore 33.71(S$4.70psf/mth) Source: CBRE (Aug 2005) USD:SGD=1.67
Global 50 Index (by occupation cost in US$ psf per annum)
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n About 1.6 mil sf of attributable GFA Site Location Tenure Attributable Attributable Total
Land Area GFA Units (sf) (sf)
The Tresor ^ Duchess Road 999yr 80,504 112,689 62 Devonshire Road (60%) ^^ * Devonshire Road Freehold 47,793 133,820 157 Avenue Park (52%)* Sixth Avenue Freehold 89,866 125,813 193 The Crest @ Cairnhill Cairnhill Road Freehold 11,183 31,310 15 Naga Court Bukit Timah Road Freehold 49,168 110,628 74 Keppel Bay Plots 1 (30%)* Keppel Bay Drive 99yr 269,938 624,521 1,100 Keppel Bay Plot 3 & 6 (30%)* Keppel Bay Drive 99yr 201,413 220,811 408 Keppel Bay Plot 4 (11.7%)* Keppel Bay Drive 99yr 36,207 40,300 234 BFC (Phase 1) Residential (33.3%)* Marina Blvd/Central Blvd 99yr n.a. 197,338 421 Total 786,072 1,597,230 2,664
* KLL’s stake ^ Includes 28 units sold ^^ Based on amalgamated site
Singapore Residential Landbank
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Rentals in Asia n Rising rentals in both residential and office markets
Source : JLL
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n About 2.1 mil sm of total GFA Site KLL's Stake Total Land Area Total GFA Total
(%) (sm) (sm) Units 8 Park Avenue * 99% 33,432 133,393 946 Park Avenue Central 99% 28,488 99,708 708 Villa Riviera 99% 153,726 53,796 168 Tianjin Villas 100% 133,400 56,000 160 Wuxi Township 50% 352,534 671,053 # 5,000 The Botanica ^ 44% 419,775 1,049,438 # 8,166 Total 1,121,355 2,063,388 15,148
* Includes 5 blocks launched ^ Includes Ph 1 launched # Includes commercial space
China Residential Landbank
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n About 1.7 mil sm of total GFA overseas (excluding China)
* Includes units sold (312 units in Elita Promenade, 48 units in Villa Arcadia at Srinakarin and 16 units in Villa Riviera as of 25 Jan)
# Includes commercial space
Country Site KLL's Stake Total Land Area Total GFA Total (%) (sm) (sm) Units
India Elita Promenade * 51% 96,800 193,308 1,573 Condominium in Kanakapura 51% 68,800 148,245 1,064 Subtotal 165,600 341,553 2,637
Indonesia Cakung Township 51% 2,700,000 700,000 7,000 Subtotal 2,700,000 700,000 7,000
Thailand Villa Arcadia at Srinakarin * 45.45% 159,746 84,440 367 Villa Arcadia at Watcharapol 66.72% 124,912 68,314 270 Subtotal 284,658 152,754 637
Vietnam Villa Riviera * 90% 59,934 32,450 101 Saigon Sports City 90% 740,000 441,000 # 3,000 Subtotal 799,934 473,450 3,101
Total 3,950,192 1,667,757 13,375
Other Overseas Residential Landbank
