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CapitaLand Investors’ Day
Presentation by Wen Khai Meng
CEO, CapitaLand Singapore
6 June 2013
1 CapitaLand Presentation *June 2013*
• Overview
• Our Key Businesses
• Business Update
• Singapore Residential Market
• Singapore Commercial Market
• Malaysia Iskandar Region
• CapitaLand Singapore’s Strategy
Content
2 CapitaLand Presentation *June 2013*
CapitaLand Singapore Organisation
CapitaLand Singapore
Residential Commercial
CapitaCommercial Trust (CCT)
(32% owned)
Quill Capita Trust
(30% owned by CCT)
Malaysia
3 CapitaLand Presentation * June 2013*
CLS ,
$6.2b, 18%
Rest of CL
Group, $29.2b, 82%
Total Assets as at 31 March 2013CL Group = $35.4b
CLS = $6.2b
CLS contributed 29% of CapitaLand’s EBIT (1)
CLS ,
$110.8m, 29%
Rest of CL
Group , $275.3m, 71%
EBIT as at 31 March 2013CL Group = $386.1m
CLS = $110.8m
Note:
(1) EBIT – Earnings before interest and tax
4
Our Key Businesses
The Wharf Residence, Singapore
5 CapitaLand Presentation *June 2013*
CapitaLand Singapore
One of Singapore's largest office landlords and
managers
Owns/manages 13 offices and mixed-use
developments or > 5 million sq ft of NLA
Sponsor of CCT(2) (32% owned)
Commercial & Mixed Developments
One George Street,
Singapore
Leading developer of distinctive and quality
homes
Completed > 7,000 homes since 2000
Pipeline of 2,200 homes or 3.3 mil sq ft GFA (1)
Homes
Sky Habitat,
Singapore
Notes:
(1) Information as at 19 May 2013
(2) CCT = CapitaCommercial Trust, a Singapore listed REIT
d’Leedon, Singapore
CapitaGreen,
Singapore
6 CapitaLand Presentation *June 2013*
CapitaCommercial Trust (Singapore)
First Listed Commercial REIT in Singapore
~3m sq ft
NLA
~S$4.87b#
Market Capitalisation
10 Properties in CBD
~S$6.95b* Asset Size
# Market Cap Figure as at 30 April 2013
* Asset Size Figure as at 31 March 2013
Capital Tower One George Street Six Battery Road
CapitaGreen
(40% stake)
HSBC Building
Bugis Village Golden Shoe
Car Park
Raffles City Singapore
(60% stake)
Wilkie Edge
Twenty Anson
7
Business Update
Capital Tower, Singapore
8 CapitaLand Presentation *May 2013*
• Achieved S$1.3b sales in 1Q 2013 vs
S$1.3b in 2012
- 544 units (1Q 2013) vs 57 units (1Q
2012)
Sales Performance of Residential Projects
d’Leedon
The Interlace
No
of
Un
its
So
ld
CapitaLand Presentation *June 2013*
d’Leedon
9 CapitaLand Presentation *June 2013*
Singapore Residential - Sales and Construction Progress1
% Launch Sold % Completed
As at Mar 2013 As at Mar 2013
Launched in 2007
The Orchard Residences 175 175 95% 100%
Launched in 2008
The Wharf Residence 186 186 97% 100%
Latitude 127 127 100% 100%
Launched in 2009
The Interlace 1040 1040 75% 90%
Urban Suites 165 165 100% 92%
Launched in 2010
d'Leedon 1715 1500 88% 53%
Launched in 2011
Urban Resort 64 34 85% 100%
Bedok Residences 583 583 96% 14%
Launched in 2012
Sky Habitat 509 250 61% 21%
PROJECTUnits
LaunchedTotal Units
1 Figures might not correspond with income recognition
CapitaLand Presentation *June 2013*
10
Residential Outlook
• Healthy pipeline with projects in
sought-after locations
- 2,200 units (~ 3.3m sq ft GFA)
• Target to launch Marine Point and
Bishan St 14 in 2H 2013
• Continue to bid for well-located
sites via GLS tenders and private
collective sales
Pipeline# includes:
The Interlace ~ 250
d’Leedon ~ 400
Sky Habitat ~ 350
Marine Point (new) ~ 120
Bishan St 14 (new) ~ 700
# Based on total available units as at end Mar 2013
CapitaLand Presentation *June 2013*
CapitaLand Presentation *June 2013* 11
Singapore Office Portfolio Performance
• CCT signed new leases and renewals of approx 409,900
sqft for 1Q 2013 (12% new leases) compared to 459,500
sqft for FY2012 (54% new leases)
• CCT’s portfolio occupancy at 95.3% vs market occupancy
rate of 93.2%
$8.73
$8.64
$7.94 $7.84 $7.79 $7.66 $7.45 $7.39
$7.53 $7.64
$7.83
$6.50
$7.00
$7.50
$8.00
$8.50
$9.00
Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13
$p
sf
Upward trend of CCT’s monthly average office portfolio rent
12 CapitaLand Presentation * June 2013*
Commercial Projects Update
CapitaGreen
• Target completion – 4Q 2014
• Commenced marketing with opening of
CapitaGreen show suite
Westgate
• Target completion – Office: 4Q 2014
• Pre-leased: 52% Westgate Tower (office)
Westgate
CapitaGreen
13 CapitaLand Presentation * June 2013*
CapitaLand’s First Foray Into Iskandar, Malaysia
– Danga Bay A2 Island
Master-planning in progress. Expected launch 1H2014
A2 Island
Artist’s impression subject to change
• Total GDV: RM8.1 bil (~S$3.2 bil)
• A premier waterfront residential
community comprising high rise
and landed homes with a central
waterfront hub with a marina,
shopping mall, F&B outlets,
serviced residences, offices and
recreational facilities
• Freehold net land: RM811 mil
(~S$324 mil)
• Estimated total GFA: 11 mil sq ft
(Land cost RM74 psf ppr)
CapitaLand Presentation *June 2013*
14
Singapore
Residential Market
RiverGate, Singapore RiverGate, Singapore
15
181.4
100.0
140.4
112.4
177.5
133.3
213.2
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
220.0
Source: URA
Private Home Prices Stabilising
URA Price Index increased 0.6% QoQ in 1Q 2013, compared with the
1.8% increase in the previous quarter
CapitaLand Presentation*June 2013*
16
632
1,872
2,417 2,393 2,497
1,704
1,371
1,946
1,427
2,621
1,948
1,087
1,410
2,028
712
2,793
1,375
0
500
1,000
1,500
2,000
2,500
3,000
Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13
Units
Private Home Sales halved to 1,375 units in April
8 Dec 2011:
ABSD Cooling
Measure
Source: URA
+43%
12 Jan 2013:
7th Cooling
Measures
+30%
6 Oct 2012:
6th Cooling
Measures
-65%
+292%
-51%
Apr-13 developer sales and launches (ex. ECs) moderated, down 51% and 76%
MoM, to 1,375 units and 806 units, respectively, after a record high Mar-13
OCR (mass market) remained the main driver of sales with 53% of total units sold
CapitaLand Presentation*June 2013*
17
243
1,453 1,186 864
1,927
699 516 994
581 578 236 194 138
444 703 610 679 178
716
1,826 1,867
473
725
1,710 1,356
1,008 1,098 1,134
918 791 1,113 1,221 846 987
1,350
470
1,637
1,375 2,525
523
1,728 1,624
1,766 2,239
1,916
2,732 3,108
2,618
5,275
3,737 4,367
2,756
3,383
727
2,596
4,654
5,578
1,860
4,380 4,033
3,638
4,241
3,595
4,444 4,262
3,603
6,526
5,402 5,916
4,353
5,412
1,375
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1Q 2009
2Q 2009
3Q 2009
4Q 2009
1Q 2010
2Q 2010
3Q 2010
4Q 2010
1Q 2011
2Q 2011
3Q 2011
4Q 2011
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q 2013
Apr-13
Units
Source: URA CCR RCR OCR Overall
Core Central
Region
Rest of Central
Region
Outside Central
Region
Overall
Quarterly Average for 2009 – 2012 710 1,112 2,495 4,318
Quarterly Average for 2013 (Jan to Mar) 679 1,350 3,383 5,412
Breakdown by Market Segment
15,904 16,292 14,688 22,197
Sales Breakdown By Market Segment
OCR transactions continues to lead new home sales, accounting for 61% of total YTD sales of 6,787 units, compared
to 73% registered for the whole 2012 total new homes sales
As a percentage of total new home sales, OCR transactions for the 4-year period 2009 to 2012 was 58% per quarter
Note: Sales figures based on statistics released by URA every quarter, figures will differ from monthly sales figures due to timing of submissions
by developers
6,787
18
Observations
• Given low interest rate environment, residential property
still provides a positive carry and a decent yield
• Under provision of HDB flats in last decade created
housing under-supply situation
• High HDB resale prices provide price support for private
housing
• Singapore remains attractive to foreign buyers
CapitaLand Presentation*June 2013*
19
Residential Strategy
• To continue to bid for land sales
– sites strategically located near MRT stations or
– sites with attractive attributes such as close proximity to
schools, public amenities, etc
• To broaden product range (from premium to
mass) to tap wider market demand
CapitaLand Presentation*June 2013*
20
Singapore
Commercial
Market
One George Street, Singapore
21
Singapore’s island-wide office supply
Source: Jones Lang LaSalle (4Q 2012)
CapitaLand Presentation *June 2013*
Region Area (sq ft) % of total
stock
CBD Core
- Grade A office
stock
27.5 mil
14.6 mil
43%
Rest of Central Area 10.2 mil 16%
Orchard Road 5.1 mil 8%
Marina Centre 3.8 mil 6%
Decentralised Areas 17.3 mil 27%
22
Focus on sites in CBD and developing new
regional centres East West Line North East Line Circle Line North South Line Downtown Line 1, 2, 3
(Completion 2013, 2015, 2017)
Sub-Regional Centre • Paya Lebar
• Kallang
• Marine Parade
• Toa Payoh / Bishan
Regional Centre • Tampines
• Changi Business Park
• Punggol
Regional Centre
• Jurong East
• Buona Vista / One-North
Jurong East
Tampines
Paya Lebar
CBD Fringe
• Orchard / Dhoby Ghaut
• Novena / Newton
• Bugis / Beach Road / Middle Road
Newton
Bugis Dhoby
Ghaut
Core Central Business District (CBD) • Raffles Place / Tanjong Pagar
• Marina Bay
Raffles Place
Marina Bay Tanjong Pagar
Thomson Line 1, 2, 3
(Completion 2019, 2020, 2021)
One-North
Regional Centre • Woodlands
Woodlands
Punggol
Stadium
Toa
Payoh
Westgate
CapitaGreen and
other CCT properties
23 CapitaLand Presentation *June 2013*
Island-wide new office supply not excessive;
CBD new supply back-end loaded
Note:
Source: CBRE Decentralized Office Market Report 2013 and CBRE 1Q 2013 Market Report for CBD supply
-0.4
0.1 0.3
1.5
2.9
0.9 0.8 0.7 0.6
1.8
2.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2007 2008 2009 2010 2011 2012 2013F 2014F 2015F 2016F 2017F
sq
ft
millio
n
CBD net supply CBD forecast new supply
Net supply in CBD
Central Business District (CBD)
Average annual net supply 1.1 mil sq ft (1993 – 2012)
Average annual net absorption 1.0 mil sq ft (1993 – 2012)
1.6 mil sq ft (2010 – 2012)
Forecast average annual new
supply (2013 to 2017): 1.3 mil sq ft
24
0.04
0.7 0.6 0.4
0.07 0.09
1.3
0.4 0.2
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2007 2008 2009 2010 2011 2012 2013F 2014F 2015F
sq
ft
millio
n
Forecast average annual
new supply (2013 to 2016):
0.5 mil sq ft
CapitaLand Presentation *June 2013*
Island-wide new office supply not excessive;
Decentralized new supply declining
Note:
(1) Decentralized office market supply projections exclude JEM and strata developments.
Source: CBRE Decentralized Office Market Report 2013
Decentralised Area net supply Decentralised Area forecast new supply
Net supply in Decentralised Area (1)
Decentralised Area
Average annual net supply 0.3 mil sq ft (2007 – 2012)
Average annual net absorption 0.3 mil sq ft (2007 – 2012)
25 CapitaLand Presentation * June 2013*
Singapore office market rent stabilising
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
Prime Grade A
*No historical data for Grade A rents prior to 2002.
Source of data: CB Richard Ellis (Pte) Ltd (figures as at end of each quarter). CBRE no longer tracks prime rents from 3Q 2011.
S$18.80
S$4.48
S$4.00
S$9.55
Global
financial
crisis Post-SARs, Dot.com crash
S$7.50
S$8.00
Euro-zone
crisis
Mo
nth
ly g
ross r
en
t b
y p
er
sq
ua
re fo
ot
S$11.06
1Q 12 2Q 12 3Q 12 4Q 12 1Q 13*
Mthly rent
(S$ / sq ft )
10.60 10.10 9.80 9.58 9.55
% change -3.6% -4.7% -3.0% -2.2% -0.3%
26
• To broaden product mix and geographical spread
– Office, SOHO, Business Park, Medical Suites, Mixed-use
developments
• To adapt “Build & Sell” to complement “Build & Hold”
strategy
• To grow CapitaCommercial Trust through acquisitions
from CapitaLand and third parties
Commercial Strategy
CapitaLand Presentation *June 2013*
27
Malaysia Iskandar
Region
Raffles City Singapore
28 CapitaLand Presentation *June 2013*
Iskandar Malaysia – 5 Flagship Zones
Senai-Skudai
Western Gate Development
Nusajaya
Johor Bahru City Centre
Eastern Gate Development
CapitaLand Presentation *June 2013*
29 CapitaLand Presentation *June 2013*
Greater Connectivity between Singapore and Johor
• Iskandar Regional Mass Transit Network will commence construction latest by year 2015
• Expected to ease the travelling time and convenience between Singapore and Johor
• Enhance proximity of Singapore and Malaysia
CapitaLand Presentation *June 2013*
30 CapitaLand Presentation *June 2013*
CapitaLand’s JV development Location : Danga Bay A2 Island – 8 km West of Singapore-Johor Causeway
Danga Bay
A2 Island
CapitaLand Presentation *June 2013*
31 CapitaLand Presentation *June 2013*
CapitaLand’s JV in Danga Bay A2 Island
Strategy
1. Supply and Demand
Control and manage timing and supply
10 – 12 years mixed development
2. Value Creation
Enjoy value appreciation of plots in
later development as township precinct
matures
3. Capitalise on Development
Capability & Synergy
Leverage on CapitaLand Group’s
development capability of malls &
serviced residences operation
management
CapitaLand Presentation *June 2013*
Danga Bay A2 Island will feature a premier
waterfront residential community
comprising high rise and landed homes
with a central waterfront hub with a marina,
shopping mall, F&B outlets, serviced
residences, offices and recreational
facilities
32
Malaysia Strategy
• To focus primarily on Iskandar region
(leveraging on proximity to Singapore)
CapitaLand Presentation *June 2013*
Iskandar
Kuala Lumpur
Penang
33
CapitaLand
Singapore’s
Strategy
Six Battery Road, Singapore
34
• Residential Property
– Actively participating in land sales
– To broaden product range
• Commercial Property
– To broaden product mix and geographical reach
– To adapt “Build & Sell” to complement “Build and Hold” strategy
– To grow CCT through acquisitions
• Malaysia
– To focus on Iskandar region
CapitaLand Singapore’s Strategy
35
Thank You