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Presentation
31st July 2015
2015 Half-Yearly Results
2015 Half-Yearly Results1
2015 Half-Yearly Review
• Underlying profit down 3%
• Strong performance from commercial portfolio maintained
• Another solid residential contribution
• Stable asset values
2015 Half-Yearly Results2
2015 Half-Yearly Results Highlights
2014 June ’15 June ’14
US$930m Underlying profit attributable to shareholders US$419m US$433m
US$397m Non-trading items US$94m US$130m
US$1,327m Profit attributable to shareholders US$513m US$563m
US¢39.52 Underlying earnings per share US¢ 17.82 US¢18.38
US¢56.42 Earnings per share US¢ 21.79 US¢23.91
US$11.71 NAV per share US$11.76 US$11.53
N/A Interim dividend per share US¢ 6.00 US¢6.00
32015 Half-Yearly Results
Commercial Property
2015 Half-Yearly Results4
Commercial Portfolio (’000 sq. ft NFA)
HKL’s Share Office Retail Hotel Total
Hong Kong 4,140 590 143 4,873
Macau - 94 151 245
Singapore 1,651 134 - 1,785
Jakarta 662 66 - 728
Hanoi 105 11 - 116
Bangkok 27 60 - 87
Others 71 - 312 383
TOTAL 6,656 955 606 8,217
2015 Half-Yearly Results5
Hong Kong
1. One Exchange Square
2. Two Exchange Square
3. Three Exchange Square
4. The Forum
5. Jardine House
6. Chater House
7. Alexandra House
8. Gloucester Tower
9. Edinburgh Tower
9a. The Landmark Mandarin Oriental
10. York House
11. Landmark Atrium
12. Prince’s Building
12
5
1 2
36
89
710
4
119a
2015 Half-Yearly Results6
Hong Kong Central Grade “A” Office Rental Index
80
100
120
140
160
180
2010 2011 2012 2013 2014 1H '15
Index
Source: Jones Lang LaSalle
2015 Half-Yearly Results7
Hong Kong Central Grade “A” Office Market
-0.5
0
0.5
1
1.5
2
2.5
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19
Vacancy %m sq. ftNew supply Net take up Vacancy
0
3
6
9
12
15
Disclaimer: The above forecast shall be regarded solely as a general guide. No representation is made nor responsibilityaccepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever.
Source: Jones Lang LaSalle
2015 Half-Yearly Results
-2
0
2
4
6
8
10
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19
Vacancy %m sq. ftNew supply Net take up Vacancy
8
Hong Kong Grade “A” Office Market
0
3
6
9
12
15
Disclaimer: The above forecast shall be regarded solely as a general guide. No representation is made nor responsibilityaccepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever.
Source: Jones Lang LaSalle
2015 Half-Yearly Results9
Hongkong Land Central Portfolio: Office
1H 2014 2H 2014 1H 2015
Average Net Rent (HK$ psf/month) 103 101 101
Period-end Vacancy 6.0% 5.4% 4.2%
Weighted Average Lease Expiry (years) 3.4 3.4 3.5
2015 Half-Yearly Results10
Hong Kong: Office Tenant Profile
Banks and other financial
services
39%
Legal
31%
Accounting
8%
Governments
1%
Trading
2%
Property
6%
Others
13%
2015 Half-Yearly Results11
Hong Kong: Expiration and Interim Rent Revisions
2H 2015 2016 2017
Total lettable office area subject toexpiration/rent revisions (‘000 sq. ft)
468 845 1,457
% of area subject to expiration/rent revisions 11% 21% 35%
Average expiring net rent (HK$ psf/month) 100 105 104
2015 Half-Yearly Results12
Hongkong Land Central Portfolio: Retail
Note: Vacancy excludes areas under renovation.
1H 2014 2H 2014 1H 2015
Average Net Rent (HK$ psf/month) 210 218 219
Period-end Vacancy 0% 0% 0%
Weighted Average Lease Expiry (years) 2.1 2.4 2.5
2015 Half-Yearly Results
Singapore
One Raffles Link(100%-owned)
Marina Bay Financial Centre(33%-owned)
One Raffles Quay(33%-owned)
13
2015 Half-Yearly Results
-1
0
1
2
3
4
5
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19
Vacancy %m sq. ft New supply Net take up Vacancy
14
Singapore CBD Grade “A” Office Market
CBD – Raffles Place, Shenton Way, Marina Bay & Marina Centre
0
3
6
12
15
9
Disclaimer: The above forecast shall be regarded solely as a general guide. No representation is made nor responsibilityaccepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever.
Source: Jones Lang LaSalle
2015 Half-Yearly Results15
Office Retail Total HKL’s Share
One Raffles Link 239 73 312 312
One Raffles Quay 1,329 4 1,333 445
Marina Bay Financial Centre 2,906 179 3,085 1,028
TOTAL 4,474 256 4,730 1,785
Singapore Commercial Portfolio (’000 sq. ft NFA)
2015 Half-Yearly Results16
Singapore: Office Tenant Profile
Banks and
other financial
services74%
Legal
6%
Accounting
3%
Natural
resources8%
Others
9%
2015 Half-Yearly Results17
Singapore: Office Average Rents and Vacancy
Note: According to local market practice, the average office rent includes management charges.
1H 2014 2H 2014 1H 2015
Average Gross Rent (S$ psf/month) 9.1 9.2 9.5
Period-end Vacancy 1.4% 1.7% 1.9%
Weighted Average Lease Expiry (years) 5.4 5.5 5.4
2015 Half-Yearly Results18
Singapore: Expiration and Interim Rent Revisions
Note: According to local market practice, the average office rent includes management charges.
2H 2015 2016 2017
HKL’s Share: Total lettable office area subject to expiration/rent revisions (‘000 sq. ft)
79 248 317
% of area subject to expiration/rent revisions 5% 15% 19%
Average expiring rent (S$ psf/month) 9.6 11.4 9.3
2015 Half-Yearly Results19
• Existing portfolio features 135,000 sq. m.
• Average gross rent: US$25 psm per month(1H 2014: US$24 psm per month)
• Occupancy: 92%
• WTC 3: Piling and excavation of the basement levels have been completed (Completion: 2018)
Jakarta
Jakarta Land (50%-owned)
WTC 3
2015 Half-Yearly Results
Hanoi and Bangkok
20
63 Ly Thai To
(74%-owned)
Gaysorn
(49%-owned)
Central Building
(71%-owned)
2015 Half-Yearly Results
Phnom Penh
21
EXCHANGE SQUARE (100%-owned)
• Mixed-use complex of 30,000 sq. m.
• Heart of Phnom Penh
• Completion: 2017
2015 Half-Yearly Results22
• Prestigious retail centre, which includes a small luxury hotel
• 43,000 sq. m. lettable retail area
• Topped-out: 24th June
• Completion: end-2016
Beijing
WF CENTRAL (90%-owned)
2015 Half-Yearly Results23
• Prime Grade “A” office
• 120,000 sq. m. lettable area
• Completion: 2019
Beijing
CBD (30%-owned)
242015 Half-Yearly Results
Residential Property
2015 Half-Yearly Results25
Mainland China – Completed Projects, Beijing
Project Project Type
Maple Place (90%)
• 7 units handed over in 1H 2015
• 52 units available for future sale, mostly leased
Central Park (40%) • 72 units of serviced apartments
Maple Place
Central Park
2015 Half-Yearly Results26
Project Interest Project Type
Yorkville South, Chongqing 100% Primarily Residential
Yorkville North, Chongqing 100% Residential (74%), Office, Retail & Others
Bamboo Grove, Chongqing 50% Primarily Residential
Landmark Riverside, Chongqing 50% Residential (76%), Office, Retail & Others
Central Avenue, Chongqing 50% Residential (66%), Office & Retail
Chengdu Project 50% Residential (65%), Office, Retail & Others
Shenyang Projects 50% Primarily Residential
Mainland China – Development Projects Summary
2015 Half-Yearly Results27
Mainland China – Development Projects Summary
HKL’s Share
ProjectYear of
AcquisitionSite Area
(ha)
DevelopableArea
(m sq. m.)
Constructed(m sq. m.)
Under Construction
(m sq. m.)
Yorkville South, Chongqing 2010 39 0.88 0.28 0.27
Yorkville North, Chongqing 2011 54 1.09 0.21 0.21
Bamboo Grove, Chongqing 2005 39 0.73 0.59 0.08
Landmark Riverside, Chongqing 2009 17 0.75 0.10 0.09
Central Avenue, Chongqing 2013 20 0.55 - 0.04
Chengdu Project 2010 10 0.45 0.07 0.09
Shenyang Projects 2007 34 0.65 0.04 -
TOTAL 213 5.10 1.29 0.78
2015 Half-Yearly Results28
Mainland China – Revenue Recognised
US$m
Note: The above chart includes HKL’s share of Joint Ventures & Associates.
$37m
$414m
$102m
$519m
$276m
0
100
200
300
400
500
600
1H '13 2H '13 1H '14 2H '14 1H '15
Chongqing Chengdu Shenyang Beijing
2015 Half-Yearly Results29
Mainland China – Contracted Sales
Note: The above chart includes HKL’s share of Joint Ventures & Associates.
$369m
$263m $262m
$373m$328m
0
100
200
300
400
500
600
1H '13 2H '13 1H '14 2H '14 1H '15
Chongqing Chengdu Shenyang BeijingUS$m
2015 Half-Yearly Results30
Mainland China – Contracted Sales
• At 30th June 2015, US$585m (2014: US$533m) in sold but unrecognised contracted sales
• Some 45% of contracted sales scheduled to be recognised in 2H 2015
2015 Half-Yearly Results31
• Site area: 87,180 sq. m.
• Residential and commercial
Mainland China – Development Project, Shanghai
Yangjing District, Pudong (50%-owned)
2015 Half-Yearly Results32
• Adjacent to Bamboo Grove
• Site area: 348,000 sq. m.
• Primarily residential
Mainland China – New Project, Chongqing
Dazhulin Area (50%-owned)
CentralDowntown
Jiangbeizui CBD
JiefangbeiCBD
Landmark Riverside
Yorkville South
Yorkville North
Project
Chongqing Airport
Chongqing Int’lExhibition Centre
ChongqingCentral Park
Central Avenue
Background image from Google Earth
Bamboo
Grove
2015 Half-Yearly Results33
Singapore
Hallmark Residences
J Gateway
Ripple BayLakeVille
Marina Bay Suites
Sol AcresPalms @ Sixth Avenue
Jurong WestStreet 41
2015 Half-Yearly Results34
• 221 units, 0.47m sq. ft
• Completion: 2013
• 15 units sold in 2015
• 3 units available for sale
Singapore – Completed Project
Marina Bay Suites (33%-owned)
2015 Half-Yearly Results35
Singapore – Completions in 1H 2015
Project UnitsGFA
(‘000 sq. ft)Sold
Hallmark Residences 75 110 97%
Palms @ Sixth Avenue 32 109 88%
Hallmark Residences
Palms @ Sixth Avenue
2015 Half-Yearly Results36
Singapore – Completion in 2H 2015
• 679 units, 0.67m sq. ft GFA
• 100% pre-sold
Ripple Bay
2015 Half-Yearly Results37
Singapore – Projects for Completion from 2016
Project UnitsGFA
(‘000 sq. ft)Estimated
Completion DatePre-Sold
J Gateway 738 576 2016 100%
LakeVille 699 741 2017 71%
Sol Acres(previously known as Choa Chu Kang Grove )
1,327 1,240 2018Not yet
launched
TOTAL 2,764 2,557
2015 Half-Yearly Results38
Singapore – New Site
• Jurong Lake District
• Adjacent to LakeVille
• Site area: 192,000 sq. ft
• Some 700 units
Jurong West Street 41
Jurong West Street 41 LakeVille
Background image from Google Earth
2015 Half-Yearly Results39
• JV with PT Bumi Serpong Damai
• Site area: 67 ha
• Southwest of central Jakarta
• Lancewood: 223 units launched for sale; 64% pre-sold
• Completion of Lancewood: 2016
Indonesia
Nava Park, Greater Jakarta (49%-owned)
2015 Half-Yearly Results40
• JV with Astra International
• 509 units of luxury apartments; 87% pre-sold
• Completion: 2018
Indonesia
Anandamaya Residences (40%-owned)
2015 Half-Yearly Results41
• JV with Ayala Land
• 182 units; 80% pre-sold
• Completion: 2019
Philippines
Two Roxas Triangle (40%-owned)
42
Financial Results
2015 Half-Yearly Results
2015 Half-Yearly Results43
Consolidated Profit and Loss Account (US$m)
2014Full Year
2015Half-Year
2014Half-Year
1,876 Revenue 905 602
(809) Net operating costs (449) (141)
1,067 Operating profit 456 461
123 Share of results of joint ventures 86 76
(69) Net financing charges (38) (34)
(187) Tax (82) (68)
(4) Non-controlling interests (3) (2)
930 Underlying profit 419 433
397 Non-trading items 94 130
1,327 Profit attributable to shareholders 513 563
2015 Half-Yearly Results44
Revenue (US$m)
2014Full Year
2015Half-Year
2014Half-Year
961 Commercial revenue 483 484
915 Residential revenue 422 118
1,876 Total 905 602
2015 Half-Yearly Results45
Underlying Profit by Business (US$m)
2014Full Year
2015Half-Year
2014Half-Year
953 Commercial property 477 485
398 Residential property 145 123
(62) Corporate expenses (31) (30)
1,289 591 578
(103) Net financing charges (54) (52)
(247) Tax (112) (91)
(9) Non-controlling interests (6) (2)
930 Underlying profit 419 433
2015 Half-Yearly Results46
Commercial Property Underlying Profit (US$m)
2014Full Year
2015Half-Year
2014Half-Year
Greater China
772 - Hong Kong 391 391
29 - Mainland China & Macau 12 16
Southeast Asia & Others
130 - Singapore 63 67
22 - Others 11 11
953 Total 477 485
2015 Half-Yearly Results47
Residential Property Underlying Profit (US$m)
2014Full Year
2015Half-Year
2014Half-Year
Greater China
69 - Hong Kong (5) 49
179 - Mainland China & Macau 109 39
Southeast Asia & Others
149 - Singapore 42 33
1 - Others (1) 2
398 Total 145 123
2015 Half-Yearly Results48
Consolidated Cash Flow (US$m)
2014Full Year
2015Half-Year
2014Half-Year
699 Operating activities 201 227
88 Investing activities 189 (106)
(426) Financing activities (306) (282)
7 Others (2) (37)
368 Decrease/(Increase) in net debt 82 (198)
(3,025) Net debt at beginning of period (2,657) (3,025)
(2,657) Net debt at end of period (2,575) (3,223)
2015 Half-Yearly Results49
Operating Activities (US$m)
2014Full Year
2015Half-Year
2014Half-Year
1,067 Operating profit excl. non-trading items 456 461
(81) Net interest paid (41) (39)
(134) Tax paid (67) (43)
(429) Payments for residential sites (259) (364)
(454) Dev. expenditure on residential projects (201) (177)
962 Proceeds from residential sales 418 474
153 Dividends received from joint ventures 45 64
(385) Others (150) (149)
699 201 227
2015 Half-Yearly Results50
Investing Activities (US$m)
2014Full Year
2015Half-Year
2014Half-Year
(38) Major renovations capex (22) (23)
(216) Funding of joint ventures (10) (49)
479 Loan repayments from joint ventures 278 42
(137) Development expenditure (57) (76)
88 189 (106)
2015 Half-Yearly Results51
Consolidated Cash Flow (US$m)
2014Full Year
2015Half-Year
2014Half-Year
699 Operating activities 201 227
88 Investing activities 189 (106)
Financing activities
(421) - Dividends paid by the Company (304) (280)
(5) - Dividends paid to minority shareholders (2) (2)
(426) (306) (282)
7 Others (2) (37)
368 Decrease/(Increase) in net debt 82 (198)
(3,025) Net debt at beginning of period (2,657) (3,025)
(2,657) Net debt at end of period (2,575) (3,223)
2015 Half-Yearly Results52
Consolidated Balance Sheet (US$m)
2014Full Year
2015Half-Year
2014Half-Year
Investment properties
23,697 - Subsidiaries 23,871 23,683
4,474 - Joint ventures 4,428 4,335
28,171 28,299 28,018
Properties held for sale
2,923 - Subsidiaries 3,017 3,195
1,372 - Joint ventures 1,247 1,250
4,295 4,264 4,445
(2,211) Others (2,263) (2,076)
30,255 Gross assets (excluding cash) 30,300 30,387
Financed by:
27,598 - Total equity 27,725 27,164
2,657 - Net debt 2,575 3,223
30,255 30,300 30,387
2015 Half-Yearly Results53
Investment Property – Basis of Valuation
Note: These capitalisation rates are provided on an indicative basis.
Capitalisation Rates 1H 2014 2H 2014 1H 2015
Hong Kong Office - Exchange Square 1 & 2 4.00% 4.00% 4.00%
Hong Kong Retail - Landmark Atrium 4.50% 4.50% 4.50%
Singapore Office - MBFC 3.80% 3.75% 3.75%
2015 Half-Yearly Results54
Investment Property – Carrying Values (US$m)
Note: The analysis includes share of Joint Ventures & Associates.
2014Full Year
2015Half-Year
2014Half-Year
Greater China
22,336 - Hong Kong 22,469 22,339
1,650 - Mainland China & Macau 1,712 1,467
Southeast Asia & Others
3,628 - Singapore 3,546 3,665
557 - Others 572 547
28,171 Total 28,299 28,018
2015 Half-Yearly Results55
Properties Held for Sale – Carrying Values (US$m)
Note: The analysis includes share of Joint Ventures & Associates.
2014Full Year
2015Half-Year
2014Half-Year
Greater China
23 - Hong Kong 32 33
2,435 - Mainland China & Macau 2,269 2,299
Southeast Asia & Others
1,696 - Singapore 1,817 1,987
141 - Others 146 126
4,295 4,264 4,445
(941) Pre-sale proceeds (1,039) (1,297)
3,354 Net investment 3,225 3,148
2015 Half-Yearly Results56
Gross Assets at 30th June 2015
Commercial 89%
Residential 11%
By Activity
Hong Kong 73%
Mainland China and Macau 11%
Southeast Asia 16%
By Location
2015 Half-Yearly Results57
Treasury Management
Summary 2013
Full Year2014
Full Year2015
Half-Year
Net debt (US$m) 3,025 2,657 2,575
Gearing 11% 10% 9%
Average tenor of debt (years) 6.7 7.3 7.0
Average interest cost 2.7% 2.9% 3.2%
Credit ratings
- S & P
- Moody’s
A-
A3
A
A3
A
A3
2015 Half-Yearly Results58
$278m
$750m $671m
$1,150m$882m
$3,260m
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2015 2016 2017 2018 2019 2020+
Bank Facilities (Drawn & Undrawn) BondsUS$m
Maturity Profile of Committed Facilities/Bonds (US$m)
*
* Includes bonds and notes issued under MTN Programme which are at face value.
2015 Half-Yearly Results59
Liquidity at 30th June 2015 (All figures in US$bn)
2014 HK$1
S$2
US$ RMB Total
7.2 Committed lines 4.7 1.8 - 0.5 7.0
4.3 Gross debt 3.1 1.0 - 0.2 4.3
2.9 Available lines 1.6 0.8 - 0.3 2.7
1.6 Cash - 0.1 0.9 0.7 1.7
4.5 Available liquidity 1.6 0.9 0.9 1.0 4.4
Notes: (1) HK$ debt includes US$ debt swapped into HK$.(2) S$ debt includes HK$ debt swapped into S$.
2015 Half-Yearly Results60
Outlook
• Strong performance from the commercial portfolio is expected to continue
• Contribution from residential business will be lower than last year due tofewer completions in Singapore and no sales in Hong Kong
• The Group continues to seek opportunities in premium commercial andresidential developments in Greater China and Southeast Asia
Hongkong Land
www.hkland.com
Thank you