Slide 1: Full Year Financial Report Analyst & Media Briefing
FULL YEAR FINANCIAL REPORT ANALYST & MEDIA BRIEFING (1 Jan – 31 Dec 2015) 25 February 2016
Slide 2: Agenda
AGENDA • EXECUTIVE SUMMARY • FINANCIAL HIGHLIGHTS • SINGAPORE OVERVIEW • INTERNATIONAL OVERVIEW • HOTEL OPERATIONS
Slide 3: Executive Summary
EXECUTIVE SUMMARY
Slide 4: Key Highlights
Key Highlights Delivered strong Q4 2015 and FY 2015 results despite challenging market conditions, both domestically and overseas: – Record Q4 2015 PATMI of $410.5 million – Resilient FY 2015 PATMI of $773.4 million Leading Executive Condominium (EC) launch for 2015: – The Brownstone: about 55%
Slide 5: Strong Financial Performance in a Challenging Environment
Strong Financial Performance in a Challenging Environment Summary of Financial Results Q4 Q4 % FY FY % 2015 2014 Change 2015 2014 Change Revenue ($m) 855 847 1.0 3,304 3,764 (12.2) PATMI ($m) 410 385 6.6 773 770 0.5 Basic Earnings Per Share 44.4 41.6 6.7 83.6 83.2 0.5 (cents) NAV Per Share ($) 9.89
Slide 6: Portfolio Composition – 2015
Portfolio Composition – 2015 Recurring Income Segments Property Hotel Rental S$ million Others Total Funds Development Operations Properties # EBITDA * Local 331 84 500 15 930 Overseas 33 220 87 2 342 364 304 587 17 1,272 Total Assets ^ Local 7,067 546 3,321 265 11,199 AUM = Overseas 2,923 4,865 1,0
Slide 7: Portfolio Composition – 2015
Portfolio Composition – 2015 EBITDA Total Assets Overseas Local Overseas Local 27% 55% 45% 73% • Stability from Recurring Income segments comprising 71% of EBITDA / 51% of Total Assets (excluding tax recoverable and deferred tax asset) • De-risking Singapore exposure via growing international segmen
Slide 8: Land Bank – CDL's Attributable Share
Land Bank – CDL’s Attributable Share Land Area (as at 31 Dec 2015) Type of Development Land Area (sq ft) Singapore International Total % Residential 755,177 2,170,109 2,925,286 89 Commercial / Hotel 64,850 294,619 359,469 11 Total 820,027 2,464,728 3,284,755 100 Proposed GFA (sq ft) Country Resident
Slide 9: Private Funds
Private Funds Profit Participation Securities (PPS) 2 - Joint investment in an office portfolio comprising three of CDL’s prime office assets Manulife Centre Central Mall (Office Tower) 7 & 9 Tampines Grande Completed in Dec 2015 Total value: $1.1 billion Cash flow waterfall allows CDL to reta
Slide 10: Private Funds
Private Funds On target for $5 billion Asset Under Management (AUM) in 5 years AUM $ billion 6.0 Strategy allows CDL 5.0 to recycle capital from 5.0 mature assets 4.0 Attract best-in-class capital partners 3.0 2.6 Finance overseas 1.1 2.0 expansion while maintaining prudent 1.5 capital structu
Slide 11: Focus for 2016
Focus for 2016 Building Value through New Geographies & New Products Significant opportunities to deploy balance sheet in rising market dislocation Continue expansion of international footprint in 5 key markets – US, UK, Japan, China and Australia Grow funds management platform and forge new p
Slide 12: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 13: Strong Financial Performance in a Challenging Environment
Strong Financial Performance in a Challenging Environment Summary of Financial Results Q4 Q4 % FY FY % 2015 2014 Change 2015 2014 Change Revenue ($m) 855 847 1.0 3,304 3,764 (12.2) PATMI ($m) 410 385 6.6 773 770 0.5 Basic Earnings Per Share 44.4 41.6 6.7 83.6 83.2 0.5 (cents) NAV Per Share ($) 9.89
Slide 14: Financial Highlights
Financial Highlights Segment Financial Results Revenue Profit Before Tax Q4 Q4 Incr/ Q4 Q4 Incr/ 2015 2014 (Decr) 2015 2014 (Decr) $M $M % $M $M % Property Development 241.7 246.4 (1.9) 115.8 251.2 (53.9) Hotel Operations 462.7 464.1 (0.3) 9.1 139.2 (93.5) (include CDL owned hotels) Rental Propertie
Slide 15: Revenue by Segment for 4th Quarter (2013–2015)
Financial Highlights Revenue by Segment for 4th Quarter (2013 – 2015) 600 $855m $847m $789m 500 463 464 412 400 $ million 300 242 246 254 200 105 103 98 100 45 34 25 0 Q4 2015 Q4 2014 Q4 2013 * Property Development Hotel Operations Rental Properties Others Q4 2015 Q4 2014 Q4 2013 (Restated) * Proper
Slide 16: Profit Before Tax by Segment for 4th Quarter (2013–2015)
Financial Highlights Profit Before Tax by Segment for 4th Quarter (2013 – 2015) 500 $471m $437m $271m 400 349 300 251 $ million 171 200 139 116 100 48 45 9 41 6 7 0 (3) (100) Q4 2015 Q4 2014 Q4 2013 * Property Development Hotel Operations Rental Properties Others Q4 2015 Q4 2014 Q4 2013 (Restated) *
Slide 17: Revenue by Segment for Full Year (2013–2015)
Financial Highlights Revenue by Segment for Full Year (2013 – 2015) $3,304m $3,764m $3,213m 2,000 1,698 1,678 1,581 1,529 1,500 1,198 $ million 1,037 1,000 406 379 500 385 163 120 107 0 FY 2015 FY 2014 FY 2013 * Property Development Hotel Operations Rental Properties Others FY 2015 FY 2014 FY 2013 (
Slide 18: EBITDA by Segment for Full Year (2013–2015)
Financial Highlights EBITDA by Segment for Full Year (2013 – 2015) $1,272m $1,294m $1,197m 700 587 557 600 500 463 419 $ million 410 400 364 343 304 300 268 200 100 17 25 6 0 FY 2015 FY 2014 FY 2013 * Property Development Hotel Operations Rental Properties Others FY 2015 FY 2014 FY 2013 (Restated) *
Slide 19: Profit Before Tax by Segment for Full Year (2013–2015)
Financial Highlights Profit Before Tax by Segment for Full Year (2013 – 2015) 700 $985m $1,004m $948m 600 532 500 460 413 356 $ million 400 333 283 300 232 171 200 146 100 20 0 (100) (2) (7) FY 2015 FY 2014 FY 2013 * Property Development Hotel Operations Rental Properties Others FY 2015 FY 2014 FY 2
Slide 20: Financial Management: Robust Balance Sheet
Financial Management Robust Balance Sheet As at 31/12/15 As at 31/12/14 Gross borrowings $6,503m $6,718m Cash and cash equivalents $3,565m $3,898m Net borrowings $2,938m $2,820m Net gearing ratio without taking in fair value gains 26% 26% on investment properties Net gearing ratio after taking in fa
Slide 21: Prudent Capital Management
Financial Management Prudent Capital Management Debt Expiry Profile Debt Maturity Within 1 year 2,000 29% Debt $ million 350 Bond Bank Loan 30% 1 to 2 years 1,500 320 2 to 3 years 250 1,000 1,565 More than 3 419 19% 500 1,007 1,086 22% years 291 458 490 262 0 5 2016 2017 2018 2019 2020 2021 onwards
Slide 22: Singapore Overview
SINGAPORE OVERVIEW
Slide 23: Singapore Property Market
Singapore Property Market Property Price Index – Residential (2011 – 2015) All Residential 180 160 Q3 15 Q4 15 142.3 141.6 140 120 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 Source : URA, Q4 2015 Based on Revised PPI 23
Slide 24: New Private Residential Units Launched vs Units Sold
Singapore Property Market No. of New Private Residential Units Launched vs Units Sold (Projects under Construction) (2011 – 2015) New Units Launched New Units Sold (Projects Under Construction) 24,000 21,478 22,197 22,000 New Units New Units 20,000 Launched Sold Directly By 17,710 Developers 18,000
Slide 25: Uncompleted Private Residential Units Available
Singapore Property Market No. of Uncompleted Private Residential Units Available (2011 – 2015) Not Launched Launched & Unsold 20,000 17,084 17,467 16,587 15,499 16,000 Launched Not Total 13,944 & Unsold Launched* 2011 5,584 11,500 17,084 12,000 2012 5,137 8,807 13,944 Number of Units 2013 6,124 11,3
Slide 26: Residential Units Sold (2014–2015)
Singapore Property Development Residential Units Sold (2014 – 2015) Sales Value* No. of Total $’000 Units* Area Sold (sq ft) FY 2015 $ 691,507 674 712,558 FY 2014 $ 1,392,773 1,378 1,183,478 * Includes share of JV partners 26
Slide 27: Projects Launched in 2015
Singapore Property Development Projects Launched in 2015 Project Location Equity Total Total % Total ASP % Expected Stake Units Units Sold Saleable (psf) Completed* TOP Sold Area (sq ft) The Brownstone Canberra 70% 638 350 55 632,755 $811 16.6 Q1 2018 (Executive Condo) Drive The Criterion Yishun 70%
Slide 28: Completed Residential Projects in 2015
Singapore Property Development Completed Residential Projects in 2015 Project Location Equity Total % TOP Stake Units Sold* Obtained The Rainforest Choa Chu Kang 50% 466 100 Mar 15 (Executive Condo) Ave 3 H2O Residences Fernvale Link 100% 521 100 May 15 Bartley Residences Lorong How Sun 30% 702 100
Slide 29: Upcoming Residential Project Launch
Singapore Property Development Upcoming Residential Project Launch (subject to market conditions) Project Location Tenure Equity Total Total % Expected Stake Units Saleable Completed* TOP Area (sq ft) Gramercy Park Grange Road Freehold 100% 174 368,743 92.9 Q2 2016 Artist’s Impression For Illustrati
Slide 30: Inventory of Launched Residential Projects
Singapore Property Development Inventory of Launched Residential Projects – As of 31 Dec 2015 Project Equity Total Units % Total CDL’s Share of Stake Units Sold* Sold Unsold Unsold Inventory Inventory St. Regis Residences 33% 173 161 93.1 12 4.0 The Oceanfront @ Sentosa Cove 50% 264 263 99.6 1 0.5 O
Slide 31: Qualifying Certificate Issues
Singapore Property Development No Significant Qualifying Certificate (QC) Issues apart from Nouvel 18 in 2016 Residential Projects Subject to QC Project Location Tenure Equity Total Latest Approved QC Deadline Stake Units Extension of TOP (2 Years after obtaining TOP) Nouvel 18 Anderson Road Freehol
Slide 32: Residential Projects Expected to be Completed in 2016
Singapore Property Development Residential Projects Expected to be Completed in 2016 Project Location Equity Total % Expected Stake Units Sold* TOP HAUS@SERANGOON Serangoon 70% 97 100 Q1 2016 GARDEN Garden Close Terraces Lush Acres Fernvale Close 100% 380 100 Q3 2016 (Executive Condo) Jewel @ Buangk
Slide 33: Disciplined Pricing for Prime Site at Lorong Lew Lian
Singapore Property Development Disciplined Pricing for Prime Site at Lorong Lew Lian Strategic acquisition via Government Land Sales (GLS) programme in November 2015 Tightly contested tender with over 10 bids – CDL’s bid with JV partners topped second- highest bid by 2.6% 99-year leasehold sit
Slide 34: Average Office Rental in CBD (2011–2015)
Singapore Property Market Average Office Rental in CBD (2011 – 2015) 14.00 $12.04 12.00 $11.14 $9.74 $10.51 $10.38 10.00 $9.26 $8.44 $8.37 $8.50 $7.90 8.00 Marina Bay/ Raffles Place (Grade A) 6.00 Whole Island 4.00 2.00 0.00 2011 2012 2013 2014 2015 Source : JLL Research, Q4 2015 34
Slide 35: Office Space Demand & Supply (2011–2015)
Singapore Property Market Office Space Demand & Supply (2011 – 2015) Private & Public Sector Cumulative Supply Occupancy 85,000 80,095 81,300 81,365 77,834 78,254 80,000 72,205 72,980 73,647 75,000 70,913 69,040 70,000 65,000 60,000 55,000 CDL’s Office Properties 50,000 Average Occupancy 45,000 97%
Slide 36: Retail Space Demand & Supply (2011–2015)
Singapore Property Market Retail Space Demand & Supply (2011 – 2015)* Private & Public Sector Cumulative Supply Occupancy 66,000 64,271 64,000 63,658 62,000 61,333 60,052 59,955 60,000 59,600 59,632 58,599 58,000 57,060 56,651 56,000 CDL’s Retail Properties Average Occupancy 54,000 97% (Higher than
Slide 37: Rental Properties: Revenue by Sector
Rental Properties Revenue by Sector 300 $406m $385m $379m 250 Office 200 187 S$ million 176 172 Retail 150 113 111 Industrial 103 100 75 65 66 REIT/Hotel 50 23 25 26 12 Others ^ 8 8 0 FY 2015 FY 2014 FY 2013 * FY 2015 FY 2014 FY 2013 (Restated) * Office 46% 46% 45% Retail 28% 29% 27% Industrial 2% 2
Slide 38: Rental Properties: EBITDA by Sector
Rental Properties EBITDA by Sector 600 $587m $268m $410m 500 446(1) Office S$ million 400 Retail 300 Industrial 178(2) REIT/Hotel 200 101 91 100 Others ^ 100 64 58 53 55 51 15 4 19 26 4 0 FY 2015 FY 2014 FY 2013 * FY 2015 FY 2014 FY 2013 (Restated) * Office 76% 38% 24% Retail 11% 34% 14% Industrial
Slide 39: Successful Leasing Programme for South Beach
Singapore Investment Property Successful Leasing Programme for South Beach South Beach Tower South Beach Quarter & Avenue Type Office Retail Net Lettable Area (Sq ft) Over 510,000 60,000 Leasing Status Over 97% leased Over 40% leased Date Opened Feb 2015 From Sep 2015 Facebook, Rabobank, LEGO, Massi
Slide 40: Rebalancing Office Portfolio Exposure in Singapore
Singapore Investment Property Rebalancing Office Portfolio Exposure in Singapore Rebalanced office portfolio exposure in Singapore by recycling $1.1 billion office assets in partnership with Alpha CDL retains upside from long-term reversionary title for Manulife Centre and Central Mall (Office T
Slide 41: International Overview
INTERNATIONAL OVERVIEW
Slide 42: Projects Launched To Date
International Property Development Projects Launched To Date Project City Equity Total Total % Est. Total % Expected Stake Units Units Sold Saleable Completed* Completion Sold Area (sq ft) Australia Ivy and Eve Brisbane 33%# 472 291 60 348,678 Commenced 1H 2018 early works China Hong Leong City Suzh
Slide 43: Unlaunched Residential Projects
International Property Development Unlaunched Residential Projects Project Location Tenure Equity Total Est. Total % Expected Stake Units Saleable Area Completed* Completion / GFA^ / Site Area+ (sq ft) China Hong Leong City Suzhou 70-year lease 70% 430 448,844 15 Q4 2017 Center (Phase 2) Eling Resid
Slide 44: Australia: Ivy and Eve
International Property Development Australia Merivale Street Residential Project – Ivy and Eve City Equity Total Total % Sold % Completed* Expected Stake Units Units Sold Completion Brisbane 33%# 472 291 60 Commenced 1H 2018 early works Ivy and Eve Freehold project on 2,733 sqm site with two 30-st
Slide 45: China Real Estate Development Platform
International Property Development China China Real Estate Development Platform – Established in 2010 Up to $800 million set aside for China investment 4 development projects acquired to date – Suzhou, Shanghai, Chongqing (2 sites) 2015 Highlights Suzhou – Hong Leong City Center sold 677 units
Slide 46: Hong Leong City Center
International Property Development China Hong Leong City Center (丰隆城市中心) Project City Equity Total Total % Sold % Expected Stake Units Units Completed* Completion Sold Tower 1 Suzhou 70% 462 432 94 85 Q4 2016 Tower 3 (SOHO) Suzhou 70% 912 245 27 85 Q4 2016 Mixed-use waterfront development at Jinji
Slide 47: Hongqiao Royal Lake
International Property Development China Hongqiao Royal Lake (御湖) City Equity Total Total Units % Sold Stake Units Sold Shanghai 100% 85 13 15 Acquired a completed 120-unit luxury villa project on 163,837 sqm land parcel in Dec 2014; 85 villas unsold Project is strategically located in the afflu
Slide 48: Eling Residences
International Property Development China Eling Residences (鹅岭峰) City Tenure Equity Total Est. Total Saleable % Expected Stake Units Area (sq ft) Completed* Completion Chongqing 50-year lease 100% 126 354,814 80 Q2 2017 (residential) (32,963 sqm) Exclusive luxury residence sited at the peak of Elin
Slide 49: Huang Huayuan Project
International Property Development China Huang Huayuan project City Tenure Equity GFA (sq ft) Stake Chongqing 50-year lease (residential) 100% 1,304,062 40-year lease (commercial) (121,151 sqm) Mixed-use riverside development with 3 high- rise residential towers, 150-room hotel and mall Located
Slide 50: Japan: Shirokane
International Property Development Japan Shirokane City Tenure Equity Site Area (sqm) Stake Tokyo Freehold 94.5% 16,815 Acquired in Sep 2014 – site located in the affluent Minato ward Site to be redeveloped into a luxury condominium with the historic Hattori mansion as a centrepiece Steady pro
Slide 51: UK Real Estate Development Platform
International Property Development UK UK Real Estate Development Platform – Established in 2013 Up to £550 million set aside for UK investment 7 freehold properties in UK acquired to date for £400 million Early mover out of Core Central London Emerald House 15 Lansdowne Road, Croydon, CRO 2BX
Slide 52: Teddington Riverside
International Property Development UK Teddington Riverside, Teddington TW11 City Tenure Equity Total Units Est. Total Saleable % Est. Stake (estimated) Area (sq ft) Completed* Completion London Freehold 100% 213 245,000 Start site on April 2016 2018 / 2019 Acquisition completed in Nov 2015 Plann
Slide 53: Stag Brewery, Mortlake, London
International Property Development UK Stag Brewery, Mortlake, London SW14 City Tenure Equity Stake Est. Total Saleable Area (sq ft) London Freehold 100% 1,000,000 Acquisition of historic Stag Brewery site completed in Dec 2015 Site is strategically located adjacent to the River Thames in the Lon
Slide 54: Hanover House, Reading
International Property Development UK Hanover House, Reading RG1 City Equity Total Total Units % % Expected Stake Units Sold / Reserved Sold Completed* Completion London 100% 82 82 100 55 Q3 2016 Successful sales launch – fully sold / reserved All 82 units released – 73 contracts have been excha
Slide 55: Pipeline Residential Projects – Building Works Commenced
International Property Development UK Pipeline Residential Projects – Building Works Commenced Project City Tenure Equity Total Est. Total Saleable % Expected Stake Units Area (sq ft) Completed* Completion Belgravia London Freehold 100% 6 12,393 45 Q4 2016 Knightsbridge London Freehold 100% 3 5,193
Slide 56: Pipeline Projects – Planning Application Expected Q2 2016
International Property Development UK Pipeline Projects – Expected Approval of Planning Application in Q2 2016 with an aim to maximise use on the redevelopment of this site Project City Tenure Equity Stake Est. GFA (sq ft) Knightsbridge London Freehold 100% 135,000 Millennium Hotel London Knightsbri
Slide 57: Hotel Operations
HOTEL OPERATIONS
Slide 58: M&C Hotel Operations: Trading Performance
M&C Hotel Operations Trading Performance FY 2015 FY 2014 Change RevPAR £71.98 £71.55 0.6% Revenue £847m £826m 2.5% PATMI £65m £110m (40.9%) RevPAR growth for FY 2015 driven by: - US 7.3% The Chelsea Harbour Hotel - Europe 1.2% - Australasia 2.9% partially mitigated by poorer performance of Asia ho
Slide 59: Hotel Room Count and Pipeline
M&C Hotel Operations Hotel Room Count and Pipeline Hotels Rooms 31 Dec 31 Dec 31 Dec 31 Dec Hotel and Room Count 2015 2014 2015 2014 By region: ● New York 4 4 2,238 2,238 ● Regional US 15 15 4,463 4,463 ● London 8 8 2,651 2,651 ● Rest of Europe 18 16 2,867 2,560 ● Middle East * 22 17 6,450 5,123 Mil
Slide 60: M&C Acquisitions: Hard Days Night Hotel
M&C Hotel Operations Acquisitions Hard Days Night Hotel – Liverpool, United Kingdom Completed the acquisition of Hard Days Night Hotel in Aug 2015 A Beatles-inspired hotel with 110 rooms and suites, for £13.8 million Located within the popular Cavern Quarter of the city 60
Slide 61: Developments – Progressing well
M&C Hotel Operations Developments – Progressing well Seoul, South Korea Based on the latest designs, the lifestyle hotel and serviced apartment has 306 and 209 keys respectively The lifestyle hotel will feature a dynamic lobby atmosphere with a café / deli style F&B outlet and bar that allows gu
Slide 62: Assets Enhancement (On-going)
M&C Hotel Operations Assets Enhancement (On-going) US Millennium Hotel Durham Millennium Biltmore Hotel Los Angeles ONE UN New York Work on guest rooms to commence in Mar Refurbishment is in progress and is scheduled to Refurbishment of East Tower commenced end-2015. 2016 with completion in Sep 2016
Slide 63: Assets Enhancement (Planned)
M&C Hotel Operations Assets Enhancement (Planned) Refurbishment of Millennium Hotel London Mayfair and Millennium Hotel London Knightsbridge will commence in 2016 The cost of refurbishment of these two hotels is estimated at £80 million and £50 million respectively It is anticipated that both
Slide 64: CDL Hospitality Trusts: Trading Performance
CDL Hospitality Trusts (CDLHT) Trading Performance S$’000 FY 2015 FY 2014 Change Gross Revenue 172,410 166,812 3.4% Net Property 137,003 140,526 (2.5%) Income M Hotel Singapore Gross revenue increased mainly due to the inclusion of revenue from recent acquisitions: Hilton Cambridge City Centre, Un
Slide 65: Acquisition – Cambridge City Hotel, UK
CDL Hospitality Trusts (CDLHT) Acquisition – Cambridge City Hotel, UK Maiden entry into Europe Completed on 1 Oct 2015 for £61.5 million Hotel with 198 rooms with a comprehensive suite of facilities including 3 F&B outlets, a gym, 5 meeting rooms and 50 parking lots. Hotel was rebranded as “
Slide 66: Trading Performance – Net Property Income
CDL Hospitality Trusts (CDLHT) Trading Performance – Net Property Income (“NPI”) Net property income decreased despite an increase in revenue mainly due to: Lower contributions from Singapore Hotels ( $6 million) and Maldives Resorts ( $2.9 million); and Australia and New Zealand Hotels recorded
Slide 67: 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 68: www.cdl.com.sg
Option 1 South Beach, Singapore www.cdl.com.sg