Slide 1: 1H 2019 Results Presentation
1H 2019 Results Presentation 8 August 2019
Slide 2: Agenda
Agenda ➢ Overview & ➢ International Operations Strategic Initiatives ➢ Fund Management ➢ Financial Highlights ➢ Hospitality ➢ Singapore Operations
Slide 3: Overview
Overview
Slide 4: Key Financial Highlights – Q2 2019
Key Financial Highlights – Q2 2019 Revenue EBITDA PATMI Basic EPS $850.4 million $304.1 million $162.4 million 17.2 cents 37.5% 28.2% 26.4% 27.1% Q2 2018 (Restated) *: $1.4 billion $423.7 million $220.7 million 23.6 cents • PATMI decline mainly due to the timing of profit recognition for property de
Slide 5: Key Financial Highlights – 1H 2019
Key Financial Highlights – 1H 2019 Revenue EBITDA PATMI Basic EPS $1.6 billion $661.4 million $362.0 million 39.2 cents 34.0% 0.2% 18.3% 18.8% 1H 2018 (Restated) *: $2.4 billion $660.3 million $306.1 million 33.0 cents • Increase in PATMI boosted by the successful unwinding of the Group’s PPS 2 NAV
Slide 6: Key Financial Highlights – 1H 2019
Key Financial Highlights – 1H 2019 Special Interim Share Price Performance Dividend 6.0 $9.47^ New YTD 2019 high of cents per share 16.6% $9.83 on 30 Jul -- (unchanged) 2019 HIGHEST - $9.54 (21 Feb) 1H 2018: $9.47 6.0 cents (28 Jun) $8.12 (31 Dec) ^ As at 30 Jun 2019 6
Slide 7: Key Operational Highlights
Key Operational Highlights PROPERTY DEVELOPMENT ▪ SINGAPORE: ➢ Launched two projects in 1H 2019: Boulevard 88# Amber Park# Total Units 154 592 Launch Date 8 March 4 May Units sold in 1H 2019 62 157 Units sold to date^ 69 166 ASP Artist’s Impression > $3,800 psf Artist’s Impression > $2,450 psf ➢ Sol
Slide 8: Key Operational Highlights
Key Operational Highlights HOTEL OPERATIONS ▪ Launched takeover offer for M&C in June 2019: ➢ Supported by Irrevocable Undertakings from key minority shareholders – representing 43.48% of shares not already held by CDL ➢ Recommended Pre-conditional Final Cash Offer comprises 685 pence (cash) per M&C
Slide 9: Strategic Initiatives
Strategic Initiatives
Slide 10: GET Strategy
GET Strategy Accelerate Transformation of Asset Portfolio and Business Operations for Growth Growth Growth ➢ Build development pipeline & recurring Enhancement income streams Transformation Artist’s Impression Enhancement Transformation ➢ Enhance asset portfolio ➢ Transform business via ➢ Drive oper
Slide 11: Completed Strategic Acquisitions & Investments ~ $587 million
GROWTH Completed Strategic Acquisitions & Investments Japan YTD 2019*: Horie Lux, Osaka UK & Europe Monk Bridge, Leeds ~$587 million^ Singapore Sims Drive GLS site Acquisitions & investments ¥2.01 billion ($25 million) $153.4 million^ Artist’s Impression Liang Court £15.4 million ($27.5 million) Sin
Slide 12: Improve Asset Positioning & Relevance
ENHANCEMENT Improve Asset Positioning & Relevance Republic Plaza – Enhanced Common Areas Complemented with Technology Solutions for Better User Experience Ongoing works at Republic Plaza: • Lift interior upgrading • Lift lobby upgrading • Turnstiles with QR code • Common corridor enhancement 12
Slide 13: Improve Asset Positioning & Relevance
ENHANCEMENT Improve Asset Positioning & Relevance Republic Plaza – Refreshed retail podium featuring various “new-to-RP” concepts • Committed 99% occupancy (37 tenants) • All retail and F&B units will be fully operational by end Sep 2019 • Increased convenience with online pre-ordering through CityN
Slide 14: CityNexus Mobile App
ENHANCEMENT CityNexus Mobile App Smart Building App – Technology Solution to Bring Convenience to Republic Plaza Tenants & Visitors Order, Pay, Collect F&B Skip the queue at Book Meeting participating Easy Access food outlets Rooms Direct turnstile access • Optimise your Within company premises and
Slide 15: Refresh Shopper Experience
ENHANCEMENT Refresh Shopper Experience Jungceylon – Asset Enhancement with Experiential Retail & New F&B Concepts • Designed by well-known Thai architect, URBAN ARCHITECTS • Phase 1 of project to commence in Q4 2019 and complete by Q2 2020 Artist’s Impression Jungceylon 15
Slide 16: Strategic Investment in Sincere Property Group
TRANSFORMATION Strategic Investment in Sincere Property Group Entered into Agreement to Invest RMB 5.5 billion ($1.1 billion) in a China Real Estate Developer ▪ Upon completion, CDL will indirectly hold ~24% equity interest and be 2 nd largest shareholder after Sincere’s Founder and Chairman ▪ Inves
Slide 17: Acquisition of Shanghai Hongqiao Sincere Centre (Phase 2)
TRANSFORMATION Acquisition of Shanghai Hongqiao Sincere Centre (Phase 2) 100% Stake in Prime Commercial Property for RMB 1.75 billion ($344 million) (To increase intended stake from 70% as previously announced) Synergistic with Group’s Focus on Expanding Recurring Shanghai Hongqiao Sincere Centre (P
Slide 18: Profit Participation Securities (PPS)
TRANSFORMATION Profit Participation Securities (PPS) The Group currently acts as Asset Manager for all the PPS structures: PPS 1 – Dec 2014 PPS 3 – Oct 2016 $1.5 billion comprising the Quayside Collection in Sentosa: • Acquired the remaining instruments from the investors of PPS 1 for the non-reside
Slide 19: M&C Takeover Offer
TRANSFORMATION M&C Takeover Offer Launched Renewed Privatisation Bid for UK-listed Hotel Subsidiary in June 2019 Supported by Irrevocable Undertakings from Key Minority Shareholders Recommended Pre-conditional Final Cash Offer Cash Consideration 685 pence in cash per M&C share represents a premium o
Slide 20: M&C Takeover Offer
TRANSFORMATION M&C Takeover Offer Irrevocable Undertakings (IU) from Key Minority Shareholders – Represent 43.48% of shares not already held by CDL* M&C’s Shareholdings Overview Approvals & Next Steps NZ OIO Pre-Condition IU Obtain New Zealand Overseas Investment Office (OIO) Pre-Condition obtained
Slide 21: Financial Highlights
Financial Highlights
Slide 22: Revenue by Segment for 2nd Quarter (2017 – 2019)
Financial Highlights Revenue by Segment for 2nd Quarter (2017 – 2019) $854m $1,360m $850m 900 819 800 700 600 $ million 500 432 421 425 400 303 287 300 200 86 85 104 100 33 35 34 0 Q2 2017 (Restated) * Q2 2018 Q2 2019 Property Development Hotel Operations Investment Properties Others * Restated due
Slide 23: Profit Before Tax by Segment for 2nd Quarter (2017 – 2019)
Financial Highlights Profit Before Tax by Segment for 2nd Quarter (2017 – 2019) 320 $189m $341m $225m 280 271 240 200 $ million 160 120 100 88 78 80 69 28 36 32 40 26 8 15 4 0 Q2 2017 (Restated) * Q2 2018 (Restated) ^ Q2 2019 Property Development Hotel Operations Investment Properties Others * Resta
Slide 24: Revenue by Segment for Half Year (2017 – 2019)
Financial Highlights Revenue by Segment for Half Year (2017 – 2019) $1,638m $2,417m $1,597m 1,600 1,382 1,400 1,200 $ million 1,000 799 798 785 800 602 600 536 400 172 169 208 200 65 68 68 0 1H 2017 (Restated) * 1H 2018 1H 2019 Property Development Hotel Operations Investment Properties Others * Res
Slide 25: EBITDA by Segment for Half Year (2017 – 2019)
Financial Highlights EBITDA by Segment for Half Year (2017 – 2019) $462m $660m $661m 440 400 370 360 334 320 $ million 280 240 191 197 200 160 144 146 118 130 116 120 80 40 9 14 14 0 1H 2017 (Restated) * 1H 2018 (Restated) ^ 1H 2019 Property Development Hotel Operations Investment Properties Others
Slide 26: Profit Before Tax by Segment for Half Year (2017 – 2019)
Financial Highlights Profit Before Tax by Segment for Half Year (2017 – 2019) $314m $514m $490m 400 357 360 320 280 258 240 $ million 200 179 180 160 120 87 74 80 57 56 40 29 23 4 14 0 1H 2017 (Restated) * 1H 2018 (Restated) ^ 1H 2019 Property Development Hotel Operations Investment Properties Other
Slide 27: Financial Highlights
Financial Highlights As at 30/06/19 As at 31/12/18 Gross borrowings $8,507m $6,342m Lease liabilities $194m - Cash and bank balances ^ ($3,269m) ($2,512m) Net borrowings $5,432m $3,830m Net gearing ratio without taking in fair value gains 44% 31% on investment properties Net gearing ratio after taki
Slide 28: CDL Group – Prudent Capital Management
Financial Highlights CDL Group – Prudent Capital Management ➢ Balanced debt expiry profile ➢ Balanced debt currency mix – adopting a natural hedging strategy ➢ Average borrowing cost kept low ➢ Balance of fixed rate borrowings to mitigate rate hikes Debt Expiry Profile 2,800 Bond Bank Loan 30/06/201
Slide 29: Singapore Operations – Property Development
Singapore Operations Property Development
Slide 30: Singapore Property Market
Singapore Property Market Property Price Index – Residential (2013 – Q2 2019) All Residential 180 Price increase (+1.5% QoQ) A turning point after 2 consecutive quarters of decline since July 2018 160 cooling measures Q2 19: 150.8 140 120 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 31: Singapore Property Market
Singapore Property Market • Private residential prices improved marginally by 0.8% for 1H 2019 as compared to 2018. On a q-o-q basis, prices improved by 1.5% in Q2 2019. • Developer’s sales remained healthy in 1H 2019 totaling 4,188 units and registered a 6.1% growth as compared to the same period i
Slide 32: Singapore Property Development
Singapore Property Development Residential Units Sold by CDL 1H 2019 1H 2018 Sales Value 651 $1,551,398 20.6% yoy 627,819 595,735 505 $1,285,965 Units Sold 22.4% yoy Project Launches (1H 2019 vs 1H 2018) Launch Project Market Total Period Segment Units 1H Boulevard 88 High-end 154 2019 Amber Park Hi
Slide 33: Steady Sales for 2018 Launched Projects
Singapore Property Development Steady Sales for 2018 Launched Projects Project Location Tenure Equity Total Total Units Ave. Selling Total Saleable Expected Stake Units Sold* Price (ASP) Area (sq ft) Completion Completed New Futura Leonie Hill Road Freehold 100% 124 124 >$3,500 psf 248,199 Aug 2017
Slide 34: Residential Launch in Q1 2019
Residential Launch in Q1 2019 Boulevard 88 – Sales value of over $630 million* Location Tenure Equity Total Units Total Units Total Saleable Expected Stake Units Released Sold* Area (sq ft) TOP Orchard Boulevard Freehold 40% 154 80 69 316,844 2022 154-unit Freehold Luxury Residences in District 10 ▪
Slide 35: Residential Launch in Q2 2019
Residential Launch in Q2 2019 Amber Park – Iconic Freehold Residence in East Coast Location Tenure Equity Total Units Units Total Units Total Saleable Expected TOP Stake Released Sold* Area (sq ft) Amber Road Freehold 80% 592 180 166 604,006 2023 Best-selling Freehold Property Launch in District 15:
Slide 36: Residential Launch in Q3 2019
Residential Launch in Q3 2019 Haus on Handy – Exclusive Condo in Prime District 9 Location Tenure Equity Total Units Units Total Units Total Saleable Expected TOP Stake Released Sold* Area (sq ft) Handy Road 99-year 100% 188 30 25 120,791 2023 Exclusive Condo in Prime Orchard Road Area: ▪ 25 units o
Slide 37: Residential Launch in Q3 2019
Residential Launch in Q3 2019 Nouvel 18 – A Freehold Masterpiece by Jean Nouvel Location Tenure Equity Total Units Units Total Units Total Saleable Completion Stake Released Sold* Area (sq ft) Anderson Road Freehold --^ 156 30 18 351,054 2014 The Epitome of Luxury Living in the Ardmore & Anderson Re
Slide 38: Latest Residential Launch in Q3 2019
Latest Residential Launch in Q3 2019 Piermont Grand Executive Condominium (EC) – Luxurious Waterfront EC Location Tenure Equity Total Units Units Total Units Total Saleable Expected TOP Stake Released Sold* Area (sq ft) Sumang Walk 99-year 60% 820 820 379 908,804 2023 Best-Selling Property Launch in
Slide 39: Limited Inventory of Launched Residential Projects
Singapore Property Development Limited Inventory of Launched Residential Projects – As of 30 June 2019 CDL’s Share Equity Total % Total Unsold Project Units Sold of Unsold Stake Units Sold Inventory Inventory Cuscaden Residences 25% 75 74 99% 1 0.3 St. Regis Residences 33% 173 161 93% 12 4.0 The Oce
Slide 40: Diversified Residential Launch Pipeline
Diversified Residential Launch Pipeline SG Pipeline comprises Mass Market and Mid-Tier segments Sengkang Grand Residences^ (680 units) Launch Pipeline 1,240 units* Upcoming Launches Artist’s Impression Sengkang Grand Residences^ Q4 2019 Land cost: $777.8 million* Sims Drive^ Q1 2020 Sims Drive^ (Est
Slide 41: Singapore Operations – Asset Management
Singapore Operations Asset Management
Slide 42: Singapore Commercial Market
Singapore Commercial Market Property Price Index – Commercial (2013 – Q2 2019) 150 Q2 19: 144.4 (+0.9% QoQ) Office Retail 140 130 120 Q2 19: 110.8 (+0.4% QoQ) 110 100 90 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 1
Slide 43: Singapore Commercial Market
Singapore Commercial Market Property Rental Index – Commercial (2013 – Q2 2019) 250 Office Retail Q2 19: 176.8 200 (+1.3% QoQ) 150 Q2 19: 96.5 (-1.5% QoQ) 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 1
Slide 44: Singapore Commercial Portfolio
Singapore Commercial Portfolio Strong Committed Occupancy for Office & Retail Portfolio (As at 30 June 2019) (1) Office Retail 15 properties 19 properties 92.1% 95.1% Committed Occupancy Committed Occupancy 2.1 million sq ft 745,000 sq ft Net Lettable Area(2) Net Lettable Area (3) REPUBLIC PLAZA CIT
Slide 45: Singapore Commercial Portfolio
Singapore Commercial Portfolio Trade Mix of Office & Retail Space by % of Total Gross Rental Income (As at 30 June 2019)* Office Retail • Diverse and well-spread tenant mix across both office and retail segments: ➢ Office: Representation across varied industries provide stability. Demand sustained b
Slide 46: International Operations
International Operations
Slide 47: International Operations – Australia
International Operations – Australia Focus on Increasing Exposure in Australia Brisbane Bowral Sydney Artist’s Impression Artist’s Impression Waterbrook Bowral Waterbrook Bayview Luxury Retirement Housing Projects: Collaboration with Waterbrook Lifestyle Resorts on 2 Freehold Luxury Retirement Housi
Slide 48: International Operations – China
International Operations – China Focus on Tier 1 and Tier 2 Cities Suzhou (苏州) Continued Sales Chongqing(重庆) Momentum: Relaunched in May 2018: Total sales of RMB 3.91 billion generated for 90% of Sold 67 units to date* ➢ Sales value of RMB 363 million 1,804 units to date*^ ➢ Phase 1 – 97% sold ➢ Pha
Slide 49: International Operations – Japan
International Operations – Japan New Acquisition of Prime Freehold Residential Project in Osaka Infinity Pool Park Court Aoyama The Tower Sky Lounge Completed in Q1 2018: ➢ 160-unit freehold JV residential project launched in Oct 2016 ➢ Units are progressively being handed over – 152 units handed ov
Slide 50: International Operations – UK
International Operations – UK Strengthening Presence in Greater London Under Construction Projects to be completed 2019 – 2021 Artist’s Impression Artist’s Impression Chelsea Monk Bridge, Leeds 125 Old Broad Street Aldgate House Completed Teddington Riverside in 2018 Leasing activities commenced Kni
Slide 51: Fund Management
Fund Management
Slide 52: IREIT Global – Focus on AUM Growth
IREIT Global – Focus on AUM Growth Key Near Term Strategies 1 Raising the profile of IREIT Darmstradt Campus, Darmstradt 2 Growing of IREIT through acquisitions 3 Diversify investors’ base Bonn Campus, Bonn Berlin Campus, Berlin Münster Campus, Munster Concor Park, Munich 52
Slide 53: Hospitality
Hospitality
Slide 54: M&C Hotel Operations
M&C Hotel Operations Trading Performance Reported Constant Currency Currency 1H 2019 1H 2018 Change 1H 2018 Change Revenue £472m £477m (1.0%) £491m (3.9%) Revenue (hotel) £408m £404m 1.0% £416m (1.9%) Profit before tax £46m £65m (29.2%) £67m (31.3%) PATMI £22m £28m (21.4%) ▪ Group RevPAR:↑ 3.4% in 1
Slide 55: M&C Hotel Operations
M&C Hotel Operations Trading Performance ▪ RevPAR in reported currency and constant currency was up by 3.4% and 0.2% respectively for 1H 2019 as compared to the same period last year; 1H 2019 Reported Currency Constant Currency New York £147.82 ↑ 4.8% ↓ 1.5% Regional US £58.73 ↑ 6.3% - Total US £88.
Slide 56: M&C Hotel Operations
M&C Hotel Operations Asset Enhancement Artist’s Impression Artist’s Impression Orchard Hotel Singapore Millennium Hotel London Mayfair • The refurbishment work of the public areas • The Mayfair hotel is currently closed for refurbishment and guestrooms has been completed, with pending its re-opening
Slide 57: CDL Hospitality Trusts
CDL Hospitality Trusts Trading Performance 1H 2019 1H 2018 Change $m $m % Gross Revenue 93,767 99,508 (5.8) Net Property 67,529 71,416 (5.4) Income (NPI) The Lowry Hotel Gross Revenue and NPI decreased mainly due to : ➢ Closure of Raffles Maldives Meradhoo for renovation since Jun 2018, whereby the
Slide 58: Disclaimer
Disclaimer: This document may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions
Slide 59: www.cdl.com.sg
Artist’s impression Amber Park, Singapore www.cdl.com.sg
Slide 60: Appendix
Appendix
Slide 61: Portfolio Composition – 1H 2019
Portfolio Composition – 1H 2019 Recurring Income Segments Property Hotel Investment $ million Others Total Development Operations Properties EBITDA * Local 135 41 271 13 460 Overseas 62 75 63 1 201 197 116 334 14 661 Total Assets ^ Local 5,936 1,017 3,572 648 11,173 Overseas 3,420 4,977 2,651 947 11
Slide 62: Diversified Global Portfolio
Diversified Global Portfolio Deepening Presence in Key Markets ➢ Geographical diversification allows flexibility to capitalise on opportunities $1.6 billion $23.2 billion Others Singapore Others 21% 45% 18% Singapore 48% US 7% Revenue Assets US 16% China 12% China 7% UK UK 11% 15% 1H 2019 62
Slide 63: Diversified Land Bank
Diversified Land Bank Land Area (as of 30 Jun 2019) – CDL’s Attributable Share Type of Development Land Area (sq ft) Singapore International Total % Residential 716,931 1,638,190 2,355,121 93 Commercial / Hotel 66,401 116,244 182,645 7 Total 783,332 1,754,434 2,537,766 100 Total Proposed GFA – 4.2 m
Slide 64: International Property Development
International Property Development Residential Projects Launched To Date Project City Equity Total Est. Total Expected Stake Units Saleable Area Completion (sq ft) Australia Ivy and Eve Brisbane 33%# 476 348,678 Completed The Marker Melbourne 50% 186 143,000 2021 China Hong Leong City Center (Phase
Slide 65: International Property Development
International Property Development Unlaunched Residential Projects Project City Tenure Equity Total Est. Total Saleable Area / Expected Stake Units GFA^ / Site Area+ (sq ft) Completion UK Knightsbridge London Freehold 100% 24 135,379^ TBC (Pavilion Road) Stag Brewery, Mortlake London Freehold 100% 6
Slide 66: China – Project Development
China – Project Development China – Chongqing JV Projects Eling Palace (鹅岭峯) and Emerald (翡翠都会) Project Tenure Equity Total Expected Stake Units Completion Eling Palace 50 years 50% 126 Completed 50 years (Residential) / Emerald 30% 820 2020 40 years (Commercial) Eling Palace, Chongqing ▪ Eling Pala
Slide 67: China – Development / Recurring Income Projects
China – Development / Recurring Income Projects Suzhou Mixed-use Waterfront Project Hong LeongCityCenter(丰隆城市中心) Equity Total Total Units % Tenure Expected Completion Stake Units Sold* Sold* 70 years (Residential) / 40 years 100% 1,804 1,626^ 90 Completed (Phase 1 & 2~) (Commercial) ▪ Total sales of
Slide 68: China – Recurring Income Projects
China – Recurring Income Projects Hong Leong Plaza Hongqiao, Shanghai Tenure Equity Stake Est. Total GFA (sqm) 50-year lease 100% 32,182 ▪ Operations to begin by Q4 2019 ▪ One office tower (20% of total NLA) has been leased out to a serviced apartment operator, expected to open in Q4 2019 Artist’s I
Slide 69: UK – Property Development
UK – Property Development UK – Planning Approvals Obtained 28 Pavilion Road, Knightsbridge, London Equity Est. Total Saleable Total Expected Tenure Stake Area (sq ft) Units Completion Freehold 100% 135,379 24 TBC ▪ Currently a freehold car park site of 102,000 sq ft. It has obtained planning approva
Slide 70: UK – Property Development
UK – Property Development UK – Projects under Construction Teddington Riverside, Broom Road, Teddington Est. Total Equity Total Units Expected Tenure Saleable Stake Units Released Completion Area (sq ft) Freehold 100% 233,552 225^ 76 Q1 2020 ▪ Phase One of the project, five-storey Carlton House (57
Slide 71: UK – Property Development
UK – Property Development UK – Completed Projects Chesham Street, Belgravia Hans Road, Knightsbridge Est. Total Saleable 12,375 5,193 Area (sq ft) Equity Stake 100% 100% Total Units 6 units 3 units Tenure Freehold Freehold Status All apartments are fully-fitted and marketed by local agencies for sal
Slide 72: M&C Hotel Operations
M&C Hotel Operations Hotel Room Count and Pipeline Hotels Rooms 30 Jun 31 Dec 30 Jun 31 Dec Hotel and Room Count 2019 2018 2019 2018 By region: ● New York 4 4 2,238 2,238 ● Regional US 15 15 4,533 4,559 ● London 7 7 2,266 2,266 ● Rest of Europe 24 23 4,081 3,741 ● Middle East * 39 36 13,614 11,980 ●