Embed Size (px)
Citation preview
1
Investor MeetingsNovember / December 2006
2
Highlights
Introduction
Operations Review
Market Outlook
Going Forward
3
Introduction
4
Introduction
Among largest Singapore property companies by total assets ($5.1 bil @ 30 Sep 06)
Established developer of quality housing and investment-grade commercial properties
Diversified in Asia with focus in Singapore, China, India, Vietnam, Indonesia and Thailand
Focus on property development for sale and property fund management
5
Strategic Focus
Ride on prime residential strength in Singapore
Unlock value in commercial property portfolio
Grow a sustainable earnings stream from overseas housing and residential township projects– Overseas contributed 60% of earnings for FY2005
Grow property fee-based income
6
Financial Performance
$m YTD3Q2006 FY2005 FY2004 FY2003
Turnover 606.1 586.4 476.2 678.8Operating Profit 157.5 146.6 111.1 128.0Pre-tax Profit 160.8 183.4 139.9 135.3PATMI after EI 119.1 155.7 132.7 100.6Overseas Earnings (% of PATMI) 60.3 59.0 43.3 31.6EPS (¢) 16.6 21.8 18.7 14.2NTA/Share ($) 2.12 2.35 2.26 2.09Debt/Equity Ratio 1.04 1.14 0.96 0.95Annualised ROE (%) 9.9 9.5 8.6 8.5
7
Recent AwardsCorporate Awards
Euromoney Award for Excellence in Real Estate 2006– Ranked among Top 10 Asian companies
Storebrand’s "Best In Class" Status For Environmental And Social Performance
Recognition for Corporate TransparencyBusiness Times Corporate Transparency Index 2006
– Ranked 4th out of 535 companies Singapore Corporate Awards
– Best Annual Report - Gold Award for companies with market capitalisation >$500m
SIAS Corporate Transparency Award 2006– Runner-up for Most Transparent Company in property category
Recognition for Product ExcellenceFIABCI Prix d’Excellence 2006
– Caribbean at Keppel Bay - Winner in residential category
– Harbourfront Office Towers - 2nd Runner-up in office/industrial category
8
Operations Review
9
Operations ReviewHealthy Progress in Residential Sales
Homes sold YTD 06:– Singapore : About 600 homes, up about 10% yoy
– Overseas : > 2,200 homes, mostly in China, India and Vietnam
: The Botanica (Ph 2) met with overwhelming success, with >800 units sold within 7 months
Projects Units Units %Launched Sold Sold
SingaporeThe Belvedere 167 167 100%Park Infinia at Wee Nam 393 384 98%OverseasThe Botanica (Ph 2), Chengdu, China 868 811 93%The Seasons, Beijing, China 1,775 1,667 94%The Waterfront, Chengdu, China 1,070 1,010 94%Elita Promenade, Bangalore, India 868 742 85%Villa Riviera, Ho Chi Minh City, Vietnam 75 67 89%Sales status as at 27 Nov 06
10
Operations Review
Capitalise on Robust Office Market in Singapore
One Raffles Quay
– 100% pre-committed by blue-chip tenants Deutsche Bank, UBS, ABN Amro, Ernst & Young, Credit Suisse, Barclays
– Latest achieved rentals of $10 psf
– TOP obtained for both towers: North Tower - Oct 06South Tower - Apr 06
11
Operations Review
Unlock Value of Commercial Property Portfolio in Singapore
Increased stake in Equity Plaza to 64.63% from 35.37% for future realisation of value
K-REIT Asia
– Set up a pan-Asian commercial REIT with initial portfolio of $630m
– Distribution per unit (DPU) of 2.87 cts for 3Q06, 22% above forecastAnnualised DPU of 6.63 cts, 22% higher than forecast of 5.43 cts
– Portfolio occupancy near 100%, underpinned by strong office demand amid limited supply
– Total shareholder return of 63%* since listing on 28 Apr 06
* Based on K-REIT Asia’s unit price appreciation from its first day closing price of $1.49 on 28 Apr 2006 to the closing price of $2.40 on 27 Nov 2006 and total DPU payout of 2.87 cents for the year up to 30 Sep 2006
12
Operations Review
Divestment of Investment Properties in Singapore and Overseas
Divested stake in Hotel InterContinental, the last asset held inBugis City Holdings ($56.9m profit*)
Divested stakes in :Profit Booked
– Singapore Suzhou Industrial Holdings $ 9.5m– Ocean Towers Shanghai* $27.5m
Sale of Dragon Land’s wholly-owned Tianjin subsidiary $12.4m
* Profit to be booked in 4Q06
13
Operations ReviewGrow a Sustainable Earnings Stream
Raised stake in Dragon Land to about 71% – Additional platform to expand into growing secondary cities in China
– Re-branding of company; change of name to Evergro Properties
– Jointly acquired with KLL a 82,987-sm site in Jiangyin, Jiangsu Province for a mixed use development
Acquired 10-ha site in Kolkata, India for 1,370 homes
Roll out township projects from 2007– About 21,400 homes in four cities
Residential Townships Total No.of UnitsThe Botanica, Chengdu, China* 6,400Wuxi, China 5,000Saigon Sports City, HCMC, Vietnam 3,000East Jakarta, Indonesia 7,000Total 21,400
* Excludes launched units
14
Operations Review
US$0.6 (S$1.0) bil
US$1.4 (S$2.3) bil
US$3.1 (S$5.0) bil
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2004 2005 3Q06
* When fully invested and leveraged
Total Assets Under Management *
Alpha K-REIT Asia
Fund Management for Fee-based Income
Alpha Core Plus Real Estate Fund– Equity of US$437m (S$720m)– 60% invested in 14 assets in 4 countries
Asia No. 1 Property Fund– Equity of US$243m (S$400m) – 60% invested in 11 assets in 4 countries
Secured 1st Islamic mandate– Initial portfolio of US$150m (S$247m)
K-REIT – Initial portfolio of four office buildings of $630m
Total Assets Under Management (AUM) after gearing and when fullyinvested will be more than $4 bil
15
Market Outlook
16
Singapore Residential Market
Continued uptrend in prices and demand, led by strong take-up of high-end homes– High-end homes have touched $3,000 psf; past last peak of
$2,400 psf in 1996
– Prices up 6.1% in first nine months of 2006; still 31% lower from peak in 2Q1996 (URA)
Singapore’s growing appeal as global city attracting more foreign buyers– 22% or 3,143 of the 14,286 homes sold in Jan-Sep 06 were
bought by foreigners (Savills Singapore)
Exciting new lifestyle products like upmarket city condos and luxury waterfront homes likely to fuel demand
17
Singapore Residential Market
URA Private Residential Demand and Price Index
5,785
8,955
6,736
5,156
9,485
7,189
5,406
8,171
6,096
5,520
9,565
125.4
118.2113.8112.8115.1117.2
132.8134.2
100
151.6
173.1
0
2,000
4,000
6,000
8,000
10,000
12,000
1996
1997
1998
1999
2000
*
2001
2002
2003
2004
2005
1-3Q
2006
No.
of U
nits
80
100
120
140
160
180
Price Index
Total Primary DemandPrice Index
Residential price gains fastest in 6 years
18
Singapore Office Market
Strong take-up of 1.84 mil sf for Jan-Sep 06, with entry of new companies and expansion of existing ones (URA)
– Grade A office occupancy : 99.3% (CBRE)
– Avg Grade A office rentals : $7.60 psf, up 33% from end-2005 (CBRE)
Limited availability of quality space – 2007-2010 : Average new supply of 0.74 mil sf p.a.– Redevelopment to reduce CBD space by 1.5 mil sf
(7-8% of current stock)
Further escalation of rents– Prime rents up 41% yoy to $6.90 psf/mth, highest since end-2001 (URA)
– Grade A and prime rentals projected to rise by >9% and >5% respectively by end-2006 (CBRE)
19
Singapore Office Market
Further escalation of office occupancy and rents
Islandwide Office Occupancy and Prime Rentals
89.689.2
86.4
85.4
84.383.7
83.182.6
82.1 82.282.7
83.584.0
85.0
86.687.2
88.087.7
85.785.2
89.088.889.5
78
80
82
84
86
88
90
92
1Q01
2Q01
3Q01
4Q01
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
%
0
1
2
3
4
5
6
7
8S$psf/mth
Islandwide Occupancy Prime Rentals
Source : URA and CBRE
20
Market Outlook - Overseas
Rising demand for quality homes and residential townships in the region
Demand underpinned by strong economic growth and homeownership aspirations, especially among Asian’s growing middle-class, favourable demographics and urbanisation trends
Government’s encouragement of homeownership through measures such as low mortgage rates
Positive political and economic developments such as Vietnam’s entry into World Trade Organisation
21
Market Outlook - China
Impact of anti-speculation measures on key cities :– Beijing : Price stable, volume recovered in Sep 06
– Shanghai : Price and volume recovered in Sep 06
– Chengdu : Price and volume stable
Sustainable genuine demand for quality housing
Better growth in secondary cities
– Supported by higher economic growth, faster urbanisation rate and less impact from measures
22
Impact on Keppel Land
Limited impact on KLL’s projects
– Bulk of buyers are locals* : 60 - 90% for condos, almost 100% for township
Curb on villa land supply to lend price support to villa projects in Shanghai and Tianjin
Continued expansion into secondary growth cities and development of residential townships
* Locals exclude Hong Kong residents and overseas Chinese
23
Going Forward
24
Going Forward - SingaporeDevelopment of new financial precinct
Marina Bay Financial Centre (MBFC)
Crown jewel of Marina Bay, linking One Raffles Quay, Esplanade Theatres, Marina Bay Integrated Resort and Landmark MRT station
25
Going Forward - SingaporeMBFC
More than just an office building
“We are not just unveiling another office building. We are unfolding a development that will contribute to the fulfilment of our vision for Marina Bay, strengthen our position as a key financial hub in Asia…”
- National Development Minister Mah Bow Tan, onMarina Bay Financial Centre, 5-Oct-06
Marina Bay Financial Centre
One Raffles Quay Raffles Place CBD
26
Going Forward - Singapore
MBFC
Total GFA of 438,000 sm
Guidelines :
– At least 60% for office space
– Remaining 40% for white site use
Remaining (194,000 sm)8 years option
Ph 1 (244,000 sm) :
Office : 180,000 smResi & retail : 64,000 sm
Ph 1 Resi & Retail
Ph 1 OfficeRemaining portion
Total GFA : 438,000 sm
27
Going Forward - Singapore
MBFC Phase 1 - Office– Vibrant new $2 bil financial precinct
– GFA 180,000 sm of Grade A office space
– Two office towers (32 and 46-storeys)
– Large column-free floor plates of 21,000 sf and 24,000 sf
– Unparalleled views of CBD skyline, Marina Bay area and the Straits of Singapore
– Target for completion in 2010
– Designed by world-renowned Kohn Pederson Fox Associates
Marina Bay Residences
46-storey Office Tower
32-storeyOffice Tower
28
Going Forward - Singapore
Marina Bay Residences– Residential component of Marina Bay Financial Centre
– Comprises 428 luxury waterfront homes fronting Marina Bay and Singapore Straits
– Features 1-, 2-, 3-, and 4-bedroom units as well as penthouses in 55-storey tower
– Well-positioned to meet strong
international demand
– Plan to launch 200 units in
4Q06
– Expected completion : 2010
Marina Bay Residences
29
Going Forward - Singapore
Keppel Bay Phase Two
2nd project in Keppel Bay precinct, next to Caribbean and VivoCity and across from Sentosa Island IR
Comprises 1,200 luxury waterfront apartments
Expected launch : 1Q07
Designed by internationally-acclaimed architect Daniel Libeskind
30
Residential Launches - Singapore
Launching two iconic waterfront developments (Marina Bay Residences and Keppel Bay Phase 2) and a prime residential development at Sixth Avenue
Project Location Units toLaunch
Marina Bay Residences (33.3% stake) Marina Blvd/Central Blvd 200Keppel Bay Phase 2 (30% stake) Keppel Bay 300Park Infinia at Wee Nam* Wee Nam Rd 102Urbana* River Valley Rd 28Avenue Park (52% stake) Sixth Avenue 175
* Existing launchesInfo updated as of 27 Nov 06
31
Going Forward - Overseas
Harnessing Asia’s Growth
Launch residential projects
– Villa Riviera, Shanghai, China
Some 14 units sold at average price of RMB17,000 psm since its soft launch in 10 Nov 2006
– Villa Arcadia at Watcharapol, Bangkok, Thailand
– Condominium project at Kanakapura, Bangalore, India
– 2nd Phase of Elita Promenade, Bangalore, India
Continue efforts to tap Asia’s housing growth potential
32
Overseas Residential Projects
Units to LaunchProject 2006 2007 2008
China8 Park Avenue, Shanghai* - 490 -Villa Riviera, Shanghai^ 28 126 -Park Avenue Central, Shanghai^ - - 708The Seasons, Beijing* 192 - -The Waterfront, Chengdu* 133 - -The Botanica (Ph 2), Chengdu* 665 - -The Botanica (Ph 3), Chengdu^ - 1,000 -The Botanica (Ph 4), Chengdu^ - - 1,000The Arcadia, Tianjin^ - 130 38Wuxi Township, Wuxi (Ph 1)^ - 690 840
* Balance units^ New launchesInfo updated as of 27 Nov 06
33
Overseas Residential ProjectsUnits to Launch
Project 2006 2007 2008
Vietnam Villa Riviera, Ho Chi Minh City* 34 - -Saigon Sports City (Ph 1), HCMC^ - 100 288
ThailandVilla Arcadia at Srinakarin, Bangkok* 54 111 120Villa Arcadia at Watcharapol, Bangkok^ 40 80 80
IndiaElita Promenade, Bangalore* 106 546 179Condominium in Kanakapura, Bangalore^ 90 540 494Condominium in Kolkata^ - 226 460
IndonesiaResidential Township (Ph 1), East Jakarta^ - 900 -
* Balance units^ New launchesInfo updated as of 27 Nov 06
34
Additional Info
35
Net Profit – By Business Segment
Business YTD YTD %Segment 3Q2006 3Q2005 Chg
$m $m
Property
Trading 99.4 80.3 23.8
Investment 28.9 28.0 3.2
Hotels / Resorts (4.1) (8.8) nm
Others (5.1) 0.7 nm
PATMI 119.1 100.2 18.9
36
Net Profit – By Geographical Location
Geographical YTD YTD %Location 3Q2006 3Q2005 Chg
$m % $m %
Singapore 47.3 39.7 43.3 43.2 9.2
Other Countries 71.8 60.3 56.9 56.8 26.2
PATMI 119.1 100.0 100.2 100.0 18.9
37
KLL’s Singapore Residential Landbank
About 1.5 mil sf of attributable GFA
Site Location KLL's Stake Tenure Attributable Attributable Total(%) Land Area GFA Units
(sf) (sf)The Tresor ^ Duchess Road 100% 999-yr 80,504 112,689 62Avenue Park Sixth Avenue 52% Freehold 89,866 125,813 175The Crest @ Cairnhill Cairnhill Road 100% Freehold 11,183 31,310 15Naga Court Bukit Timah Road 100% Freehold 49,168 110,807 72Keppel Bay Ph 2 Keppel Bay Drive 30% 99-yr 269,930 624,521 1,200Keppel Bay Plot 3 & 6 Keppel Bay Drive 30% 99-yr 266,804 220,811 408Keppel Bay Plot 4 Keppel Bay Drive 11.7% 99-yr 36,830 40,300 234MBFC (Ph 1) Residential Marina Blvd/Central Blvd 33.3% 99-yr 18,831 195,629 428Total 823,116 1,461,880 2,594^ Includes 28 units sold
38
KLL’s China Residential Landbank
More than 2 mil sm of GFA for sale
* Excludes area and units sold ^ Includes area sold# Includes commercial space
Site Location KLL's Stake Total Land Area Total GFA Remaining GFA Remaining Units(%) (sm) (sm) For Sale (sm) For Sale
8 Park Avenue* Shanghai 99% 33,432 133,393 78,256 490 Park Avenue Central Shanghai 99% 28,488 99,708 99,708 708 Villa Riviera Shanghai 99% 153,726 53,796 53,796^ 154 The Arcadia Tianjin 100% 133,400 60,505 60,505 168 Wuxi Township Wuxi 50% 352,534 670,970# 670,970# 5,000 The Botanica* Chengdu 44% 419,775 1,049,438# 842,000# 6,418 Mixed development Jiangyin 39% 82,987 NA NA 2,100 Total 1,204,342 2,067,810 1,805,235 15,038
39
KLL’s Other Overseas Residential Landbank
About 2.3 mil sm of total GFA overseas (excluding China)
^ Includes 28 units sold
* Includes units sold# Includes commercial space
Country Site KLL's Total Land Area Total GFA TotalStake (sm) (sm) Units
India Elita Promenade* 51% 96,618 193,236 1,573 Condominium in Kanakapura 51% 78,391 146,983 1,168 Condominium in Kolkata 74% 101,171 199,956 1,372
Subtotal 276,180 540,175 4,113 Indonesia East Jakarta 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 270Subtotal 284,658 152,754 637
Vietnam Villa Riviera* 90% 59,934 32,450 101 Saigon Sports City 90% 640,400 890,900# 3,000
Subtotal 700,334 923,350 3,101 Total 3,961,172 2,316,279 14,851
40
KLL’s Singapore Office Property Portfolio
Property Total Lettable Area (sf)
Attributable Lettable Area (sf)
Completed BuildingsOcean Building 422,537 319,438
Ocean Towers 247,461 187,081
Equity Plaza 257,927 166,698
Keppel Bay Tower 394,745 46,185
HarbourFront Tower One 375,239 43,903
HarbourFront Tower Two 155,538 18,198
One Raffles Quay 1,327,191 442,353
Sub-Total 3,180,638 1,223,856Under DevelopmentMarina Bay Financial Centre (Ph 1) 1,646,877 548,959
Total 4,827,515 1,772,815
41
Singapore Office Market
Islandwide Office Occupancy and Prime Rentals
91.2 91.5
88.7
90.2
92.5
91.0 91.5
88.8
85.485.9
88.7 88.8
84.3
82.1
84.0
87.2
89.5
80
82
84
86
88
90
92
94
96
98
100
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
3Q06
%
0
1
2
3
4
5
6
7
8
9
10
11
12$psf/mth
Islandwide Occupancy Prime Rentals
Source : URA and CBRE
42
Singapore Office Supply (2006 – 2010)Expected Completion Proposed Office Projects NFA (sf)
2006 Parakou Building 64,000One Raffles Quay 1,322,53455 Market Street - addition 78,000SIF Building Redevelopment 68,000Sub- total 1,532,534
2007 LKN Building Redevelopment 80,800VisionCrest 139,000Central (office block only) 179,000Sub- total 398,800
2008 Selegie Road Office/Soho/Retail/Serviced Apt development 82,000HarbourFront Tower 5 208,000Sub- total 290,000
2009 Overseas Union House Redevelopment 415,000Crosby House Redevelopment 228,000Sub-total 643,000
2010 MBFC (Phase 1) 1,646,876Total (2006-2010) 4,511,210Source : URA, CBRE and KLL
43
Office Occupancy Costs
Singapore ranked 37th worldwide, attractive compared to other Asian cities
Ranking City US$/sf/annum Ranking City US$/sf/annum1 London (West End), England 212.03 16 Seoul, South Korea 71.432 Tokyo (Inner Central), Japan 145.68 20 Madrid, Spain 66.313 London (City), England 144.78 21 Milan, Italy 64.024 Tokyo (Outer Central), Japan 133.54 23 Zurich, Switzerland 62.235 Hong Kong 116.25 24 New York - Midtown Manhattan 62.076 Moscow, Russia 109.30 27 Luxembourg City, Luxembourg 57.357 Mumbai (Bombay), Inida 106.09 28 Geneva, Switzerland 57.058 Paris, France 105.54 29 Frankfurt am Main, Germany 56.349 Dublin, Ireland 92.50 32 Brussels, Belgium 53.0710 Dubai, United Arab Emirates 87.12 34 Toronto, Canada (CBD) 52.8011 New Delhi, India 81.87 36 Munich, Germany 52.3012 Edinburgh, Scotland 78.46 37 Singapore 52.19(S$6.79psf/mth)
Global 50 Index (by occupation cost in US$ psf per annum)
USD : SGD =1.5615 (@ 21 Nov 2006)Source : CBRE Global Market Rents (Nov 2006)
44
Singapore: Most Competitive Economy in Asia
Singapore ranked most competitive economy in Asia and 5th globally (World Economic Forum)
Global Competitiveness Index based on nine key factors:
– institutions– infrastructure– macro-economy– health and primary education– higher education and training– market efficiency– technological readiness– business sophistication and– innovation
45
Singapore: Up the Rank in Country Brand IndexHow Singapore Stacks Up
Singapore’s RankingBest Country
Brand For
Nightlife/dining
Shopping
Conferences
Value for moneySafetyEasiest to do business in
New 5 US
2006
No. 1 Place2005
Unranked
New
9
New
Italy2
2
3
8
7
US
US
Thailand
New Canada
Singapore ranked 2nd for quality of nightlife / dining and shopping in 2nd annual Global Country Brand Index 2006
Singapore ranked 3rd
most preferred convention destination and 5th country in the world to do business in
Source : FutureBrand
46
Robust Economic Outlook for Asia
Robust economic outlook for Asia : 8.25% in 2006-07 (IMF)– Economic growth and global competitiveness
to boost office demand in Singapore
– China’s forecast strong performance of 10% growth in 2006 and 2007 to drive growth in other Asian economies
– India’s growth forecast raised to 8.3% in 2006, 7.3% in 2007
– Benefits from WTO entry will keep Vietnam's GDP growth strong at 7.8% in 2006 and 7.6% in 2007
– Singapore government has further raised 2006 GDP growth forecast to 7.5 – 8% and pegged 2007 growth at 4 – 6%
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.
