Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — H1 2014 Earnings Presentation
36 slides from Wing Tai Properties's earnings presentation, 2014
Slide 1: Wing Tai Properties Limited
WING TAI PROPERTIES LIMITED 永泰地產有限公司
Slide 2: Agenda
Agenda Results Highlights Business Review Land Bank Property Development Property Investment & Management Hospitality Investment & Management Future Plans & Strategies Appendix Investment Thesis Sustainable Growth Strengthened Capital Structure Five Years Financial Summary 2
Slide 3: Disclaimer
Disclaimer This presentation contains forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forward- looking terminology such as believe, expect, anticipate, estimate, plan, project, target, may, will or other similar words that expre
Slide 4: Results Highlights
Results Highlights 4
Slide 5: Financial Results Summary
Financial Results Summary For the 6 months ended 30 June 2014 2013 (HK$’M) (Re-presented)* Continuing operations Revenue 1,317 346 281% Gross profit 575 274 110% Change in fair value of investment properties 1,346 826 63% Profit from operations 1,735 1,094 59% Share of results of joint ventures/asso
Slide 6: Segment Results Overview
Segment Results Overview For the 6 months ended 30 June 2014 2013 (HK$’M) (Re-presented) Property development Revenue 898 3 Profit before taxation 171 43 298% Property investment & management Revenue 333 261 28% Increase in fair value of investment 1,319 799 65% properties Profit before taxatio
Slide 7: Balance Sheet Summary
Balance Sheet Summary 30 June 31 December (HK$’M) 2014 2013 Total assets 27,780 26,705 4% Net assets 22,443 20,895 7% Equity attributable to equity holders of the 22,442 20,894 7% Company Investment properties 20,364 19,003 7% Properties for sale 1,332 1,425 7% Bank balances and cash 585 1,242 53% 7
Slide 8: Balance Sheet Summary – Con't
Balance Sheet Summary – Con’t 30 June 31 December (HK$’M) 2014 2013 Total borrowings 4,356 4,687 7% Net borrowings 3,771 3,445 9% Gearing ratio 16.8% 16.5% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 1,209 28% 1,740 37% Between one and two years 53 1% 32
Slide 9: Business Review
Business Review
Slide 10: Balanced and Diversified Land Bank in Hong Kong
BalanceD and Diversified Land Bank in Hong Kong 1 2 3 4 4 5 6 6 Kau To, Shatin (two plots) 7 12 7 Siu Sau, Tuen Mun 8 Shau Kei Wan 11 5 9 9 1 2 10133 8 10 11 Shui Hing Centre 12 Winner Godown Building 13 Development properties Investment properties Hospitality property 10
Slide 11: Land Bank (as at August 2014)
Land Bank (as at 31 August 2014) Strategic land bank with focus on Hong Kong Investment Property Land Bank Overview (sq. ft.) Residential Development By Business Segment By Geographical Segment Hospitality 13% China 16% Residential Office/ Retail 60% Development Industrial Investment 27% 21% Propert
Slide 12: Property Development
PROPERTY DEVELOPMENT =| Daa )Pi
Slide 13: Sales and Development Pipeline (as at June 2014)
Sales and Development Pipeline (as at 30 June 2014) A sustainable and scalable residential project pipeline Aggregate Presold/Sold Estimated completion Property Development Gross Gross 2H 2018 Group’s Portfolio Floor Area Floor Area 2015 2016 2017 and Interest (’000 sq. ft.) (’000 sq. ft.) 2014 beyo
Slide 14: Completed Development
Completed Development Seymour, 9 Seymour Road, Mid-Levels Over 96% of its residential units sold 14
Slide 15: Completed Development – Con't
Completed Development – Con’t Providence Bay, Providence Peak, The Graces, Pak Shek Kok, Tai Po Providence Bay: approximately 61% of the units were sold Providence Peak: approximately 81% of the units were sold The Graces: approximately 70% of the units sold were sold, of which 22% were sold i
Slide 16: Completed Development – Con't
Completed Development – Con’t The Warren, 9 Warren Street, Causeway Bay Approximately 78% of the residential units sold Nearly all of the sold units were handed over to the buyers by August 2014 16
Slide 17: Under development in Hong Kong
Under development in Hong Kong The Pierre, 1 Coronation Terrace, Mid-Levels West Over 97% of the units were pre-sold in September 2012 Occupation permit obtained in May 2014 Interior fitting-out works in progress Pre-sold units to be handed over to the buyers in 2H 2014 17
Slide 18: Under development in Hong Kong – Con't
Under development in Hong Kong – Con’t Homantin Hillside, Hung Hom Gross floor area is approximately 153,000 sq. ft. Near the future MTR station of Shatin to Central Link The Group is the lead project manager and lead sales and marketing manager Superstructure works commenced in February 201
Slide 19: Under development in Hong Kong – Con't
Under development in Hong Kong – Con’t Kau To, Shatin Two sites (STTL 567 & 565) acquired in August 2012 and January 2013 Aggregate gross floor area is approximately 460,000 sq. ft. Earmarked for low-density luxury apartments and houses The Group is the joint lead project manager and lead sa
Slide 20: Under development in Hong Kong – Con't
Under development in Hong Kong – Con’t Siu Sau, Tuen Mun Acquired in August 2013 Gross floor area is approximately 159,000 sq. ft. Earmarked for low-density luxury apartments and houses The project is scheduled for completion in 2018 20
Slide 21: Under development in Hong Kong – Con't
Under development in Hong Kong – Con’t Shau Kei Wan Acquired in April 2014 Gross floor area is approximately 46,000 sq. ft. Located at the harbour-front with an unobstructed seaview and easy access to public transportation The project is scheduled for completion in 2018 21
Slide 22: Under development in Shanghai
Under development in Shanghai Upper Riverside, Lujiazui, Shanghai Located along the Huangpu River and in close proximity to popular tourist landmarks in Pudong and transportation facilities The property comprises 97 apartment units and a gross floor area of around 210,000 sq. ft. The Group is
Slide 23: Property Investment & Management
Property Investment & management
Slide 24: Investment Portfolio in Hong Kong
Investment Portfolio in Hong Kong Leases Average rental Leases Gross floor Occupancy as renewed reversion expiring/rent area at in upon lease review in (’000 sq. ft.) 30 June 2014 1H 2014 renewal 2H 2014 Landmark East 1,338 100% 15% 48% 12% (AIA Kowloon Tower/ Grade-A AXA Tower) Offices W Square 129
Slide 25: Investment Portfolio in London
Investment Portfolio in London Commercial Property at No. 1 Savile Row/ 7 Vigo Street, West End Refurbishment completed in late 2013 After refurbishment, net internal area of Grade-A office and premier retail spaces reached 14,000 sq. ft. Achieved an occupancy of 66% Commercial Property at 8-1
Slide 26: Hospitality Investment & Management
hospitality investment & management
Slide 27: Hospitality Portfolio
Hospitality Portfolio Strong brand recognition in Asian gateway cities by customers and property owners Lanson Place Properties – Lanson Place Properties – Management Investment & Management Lanson Place Jin Qiao Lanson Place Central Park Serviced Residences Serviced Residences • No. of units/rooms:
Slide 28: Hospitality Investment and Management
Hospitality Investment and Management Lanson Place Bukit Ceylon Serviced Residences was soft-opened in August 2013 Second property of the Group to qualify as one of the “Small Luxury Hotels of the World™” The first “Small Luxury Hotel” in Kuala Lumpur’s central business district The Lanson P
Slide 29: Future Plans & Strategies
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Slide 30: Future Plans & Strategies
Future Plans & Strategies In near term In mid-to-long term Property Identify optimal windows to launch new Continue to proactively explore acquisition Development projects (e.g. Homantin Hillside and Upper opportunities to replenish land bank and build Riverside) and to sell remaining units of s
Slide 31: Appendix
appendix
Slide 32: Investment Thesis
Investment Thesis A credible and integrated property player in Hong Kong 1 with a balanced and growing development and investment portfolio Strong track record in developing luxury and quality residential properties 2 at premium values Owns a portfolio of high-quality Grade-A office and hospitality
Slide 33: Sustainable Growth
Sustainable Growth Disciplined execution of the Group’s strategies and expansion plans Shareholders’ Equity Net Profit Attributable to Equity Holders (HK$’M) (HK$’M) 22,442 20,894 18,360 4,737 12,928 2,661 10,910 2,211 8,980 1,920 1,601 1,036 313 2009 2010 2011 2012 2013 1H 2014 2009 2010 2011 2012
Slide 34: Strengthened Capital Structure
Strengthened Capital Structure November 2012 January 2013 August 2014 May 2013 First drawdown of Second drawdown of Fourth drawdown of Third drawdown of HK$100 million S$170 million HK$480 million HK$100 million unrated 7-year fixed unrated 10-year unrated 10-year unrated 10-year fixed rate notes at
Slide 35: Five Years Financial Summary
Five Years Financial Summary Year ended 31 December 1H 2014 1H 2013 2013 2012 2011 2010 2009 HK$M HK$M HK$’M HK$’M HK$’M HK$’M HK$’M (Re-presented) RESULTS Continuing operations Revenue 1,317.0 346.0 1,736.2 891.7 1,191.0 1,416.0 405.1 Profit before taxation from continuing operations 1,671.3 1,097.
Slide 36: Five Years Financial Summary – Con't
Five Years Financial Summary – Con’t As at 30 June As at 31 December 2014 2013 2012 2011 2010 2009 HK$M HK$’M HK$M HK$M HK$M HK$M ASSETS AND LIABILITIES Total assets 27,780.3 26,705.1 23,578.1 20,212.5 17,631.2 15,683.2 Total liabilities (5,337.1) (5,809.9) (5,216.3) (4,849.8) (4,377.6) (4,874.9) No