Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — FY2021 Earnings Presentation
42 slides from Wing Tai Properties's earnings presentation, Mar 24, 2022
Slide 1: Wing Tai Properties Limited Annual Results 2021
Wing Tai Properties Limited Annual Results 2021 永泰地產有限公司
Slide 2: 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 similar words that express an
Slide 3: Agenda
Agenda • A Snapshot of 2021 • Key Achievements • Land Bank • Business Review • Property Development • Property Investment & Management • Hospitality Investment & Management • Strengthened Capital Structure • Future Plans & Strategies • 2021 Results Highlights • Appendix
Slide 4: A Snapshot of 2021
A Snapshot of 2021
Slide 5: Key Achievements
Key Achievements • Consolidated profit attributable to shareholders was HK$854 million, a turnaround from a HK$674 million loss in 2020. Core consolidated profit attributable to shareholders was HK$683 million, an increase of HK$227 million compared with HK$456 million in 2020. • Continued to sell t
Slide 6: Key Achievements – CONT’D
Key Achievements – CONT’D • Expanded the investment portfolio in London by acquiring 21% interest in 66 Shoe Lane. • Our Lanson Place hotel in Hong Kong joined the designated quarantine hotel program in late November 2021. • With a resilient capital structure and balanced source of income from diver
Slide 7: Balanced and diversified land bank in Hong Kong
Balanced and diversified land bank in hong kong “Upper Gold Coast” series 1 The Carmel *Artist impression *Artist impression 2 OMA OMA 5 3 OMA by the sea Site at Gage Street/ 8 4 Graham Street, Central 9 2 Site near Sheung Shui 1 3 5 MTR station 6 Landmark East 7 6 7 Shui Hing Centre 4 10 11 8 Le Ca
Slide 8: Land Bank in London
LAND BANK IN LONDON 13 Cavendish Square 2 10 Brook Street 3 35 Berkeley Square 4 No.1 Savile Row 1 5 6 7 2 4 3 4 85 66 Shoe Lane 6 10 Fleet Place 7 30 Gresham Street Investment properties 8
Slide 9: Land bank (as at 31 December 2021)
Land bank (as at 31 December 2021) Strategic land bank with focus in Hong Kong Investment Property Land Bank Overview (sq.ft.) By Business Segment Residential units Hospitality 8% 11% Investment Property Industrial Property Office/ Development 8% 81% Retail 19% 73% Valuation as at Attributable Hong
Slide 10: Business Review
Business Review 10
Slide 11: Property development
Property development 11
Slide 12: Sale and development pipeline (As at 31 December 2021)
Sale and development pipeline (As at 31 December 2021) A sustainable and scalable project pipeline Available Estimated Completion Saleable Area / Property Development Portfolio Gross Group’s 2022 2023 2024 and Floor Area Interest beyond (’000 sq. ft.) Hong Kong Completed OMA OMA* 48# 100% Developmen
Slide 13: Completed Development in Hong Kong
Completed Development in Hong Kong OMA OMA (466 units), So Kwun Wat Road, Tuen Mun • Saleable area of approximately 234,000 sq. ft. for 466 residential apartment units • Medium-density residential development • Occupation Permit and Certificate of Compliance obtained in March and October 2021, respe
Slide 14: Completed Development in Hong Kong – CONT’D
Completed Development in Hong Kong – CONT’D The Carmel (178 units), Siu Sau, Tai Lam, Tuen Mun • Saleable area of approximately 147,000 sq. ft. for 178 residential units of apartment and house • Low-density residential development • In 2021, around 3% (in terms of number) and around 2% (in terms of
Slide 15: Project Under Development in Hong Kong
Project Under Development in Hong Kong OMA by the Sea (517 units), Castle Peak Road, Tai Lam, Tuen Mun • Saleable area of approximately 252,000 sq. ft. for 517 residential apartment units • Medium-density residential development • In 2021, around 15% (in terms of number) of the residential units wer
Slide 16: Project Under Development in Hong Kong – CONT’D
Project Under Development in Hong Kong – CONT’D Commercial Complex at Gage Street/Graham Street, Central • Combined gross floor area up to 433,500 sq. ft. • Earmarked for commercial complex development encompassing a Grade A office tower, a hotel, retail shops and public open space • Forming part of
Slide 17: Project Under Development in Hong Kong – CONT’D
Project Under Development in Hong Kong – CONT’D Residential site near Sheung Shui MTR Station • Won a government tender in June 2021 for a consideration of HK$2.6 billion • Medium-density residential development adjacent to Fanling Golf Course • Gross floor area of approximately 284,170 sq. ft. • Si
Slide 18: Property Investment & Management
Property Investment & Management 18
Slide 19: Investment portfolio in Hong Kong - Office and industrial
Investment portfolio in hong kong - Office and industrial Gross floor Occupancy as at area (’000 sq. ft.) 31 December 2021 Grade A Offices Landmark East (AIA Kowloon Tower/ 1,338 85% AXA Tower) Industrial Property Shui Hing Centre* 187 87% * Obtained the Town Planning Board approval for redevelopmen
Slide 20: Investment portfolio in Hong Kong - residential
Investment portfolio in hong kong - residential Le Cap (16 units), Kau To, Shatin • Low-density luxury residential project at peak of Kau To Shan • After distribution, the Group has approximately 36,000 sq. ft. saleable area for 16 residential units including houses and apartments, and 22 car parkin
Slide 21: Investment portfolio in Hong Kong - residential (CONT’D)
Investment portfolio in hong kong - residential (CONT’D) La Vetta (34 units), Kau To, Shatin • Low-density luxury residential project • In 2021, all unsold units were distributed to shareholders • After distribution, the Group has approximately 72,000 sq. ft. saleable area for 34 residential units i
Slide 22: Investment portfolio in London
Investment portfolio in london 1) Commercial Property at Savile Row/Vigo Street, West End • Net internal area of approximately 14,000 sq. ft. of Grade A office and retail space 2) Commercial Property on Brook Street, West End • Net internal area of approximately 19,000 sq. ft. of Grade A office and
Slide 23: Investment portfolio in London – Joint Venture
Investment portfolio in london – JOINT VENTURE 1) Commercial Property at Gresham Street, the City • Group’s interest of 50% • Net internal area of approximately 404,000 sq. ft. of Grade A office, retail space and ancillary accommodation, with 48 car parking spaces 2) Commercial Property on Fleet Pla
Slide 24: Investment portfolio in London – Joint Venture (CONT’D)
Investment portfolio in london – JOINT VENTURE (CONT’D) 3) Commercial Property at Shoe Lane, the City • Acquisition completed in April 2021 • Group’s interest of 21% • Net internal area of approximately 154,000 sq. ft. of Grade A office and ancillary space and approximately 4,000 sq. ft. of retail s
Slide 25: Investment portfolio in Beijing
Investment portfolio in beijing Central Park, 6 Chaoyangmenwai Avenue, Chaoyang District • 33 residential units • Gross floor area of approximately 6,200 sq. m. • As at 31 December 2021, around 91% (in terms of number) of the units were leased 25
Slide 26: Hospitality investment & management
Hospitality investment & management 26
Slide 27: Hospitality portfolio
Hospitality portfolio Lanson Place Properties – Investment & Management • Strong brand recognition in Hong Kong and key gateway cities in Asia by customers as well as property owners Lanson Place Causeway Bay, Hong Kong • Group’s interest: 100% • 194 units • A member of the “Small Shanghai Luxury Ho
Slide 28: Hospitality portfolio – CONT’D
Hospitality portfolio – CONT’D Lanson Place Properties – Management Lanson Place Aroma Garden, Shanghai Lanson Place 79 units Two MacDonnell Road, Hong Kong 213 units Lanson Place Parkside, Shanghai Shanghai 182 units Hong Kong Lanson Place Winsland, Manila Singapore Kuala Lumpur 109 units Singapore
Slide 29: Hospitality investment and management
Hospitality investment and management • Occupancy rate and average room rates of our Lanson Place Causeway Bay hotel in Hong Kong remain low due to travel restrictions and quarantine measure in place, resulted in operating loss. Lanson Place Causeway Bay hotel started designated quarantine hotel ope
Slide 30: Strengthened capital structure
Strengthened capital structure November January 2013 May 2013 August 2014 October 2014 November August 2017 November 2012 2014 2017 Second Third Fourth Fifth Sixth Seventh Eighth First drawdown of drawdown of drawdown of drawdown of drawdown of drawdown of drawdown of drawdown of HK$480 HK$100 HK$10
Slide 31: Future Plans & Strategies
Future Plans & Strategies 31
Slide 32: Future plans & strategies
Future plans & strategies In near term In mid-to-long term Property • Continue the sale of the remaining units of • Expand residential and commercial Development our “Upper Gold Coast” series, namely properties portfolio through active OMA OMA and OMA by the Sea participation in government’s land te
Slide 33: 2021 Results Highlights
2021 Results Highlights 33
Slide 34: Financial results summary
Financial results summary For the year ended 31 December (HK$’M) 2021 2020 Revenue 3,423 2,778 23% Gross profit 1,340 1,000 34% Change in fair value of investment properties and (301) (1,324) 77% financial instruments including joint ventures Profit/(loss) from operations 900 (492) N/A Share of resu
Slide 35: Segment results overview
Segment results overview For the year ended 31 December (HK$’M) 2021 2020 Property Development Revenue (excluding inter-segment sales) 2,729 2,054 33% Fair value changes in investment properties and financial 84 (58) N/A instruments including joint ventures Profit before taxation 1,068 279 283
Slide 36: Segment results overview – CONT’D
Segment results overview – CONT’D For the year ended 31 December (HK$’M) 2021 2020 Hospitality Investment & Management Revenue 69 62 11% Fair value changes in investment properties including joint (28) (202) 86% ventures Loss before taxation (50) (234) 79% Loss before taxation excluding fair
Slide 37: Balance sheet summary
Balance sheet summary 31 December 31 December (HK$’M) 2021 2020 Total assets 38,739 37,246 4% Net assets 28,166 27,641 2% Equity attributable to shareholders of the company 26,653 26,126 2% Investment properties 21,778 20,376 7% Investments in and loans to joint ventures 5,459 6,643 18% (both non-cu
Slide 38: Balance sheet summary – CONT’D
Balance sheet summary – CONT’D 31 December 31 December (HK$’M) 2021 2020 Total borrowings 6,804 4,380 55% Net borrowings 5,339 3,190 67% Gearing ratio 19.0% 11.5% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 3,458 51% 726 17% Between one and two years 1,34
Slide 39: Appendix
Appendix 39
Slide 40: Investment Thesis
Investment Thesis A credible integrated property developer in Hong Kong with a balanced and well-diversified 1 development and investment portfolio spanning the region and beyond Constantly grow the residential property development operations by proactively yet 2 cautiously acquiring land bank Lever
Slide 41: Five years’ Financial summary
Five years’ FiNaNCial summary Full Year Results 2021 2020 2019 2018 2017 (HK$’M) (Note 1) (Note 2) (Note 3) RESULTS Revenue 3,423 2,778 830 885 1,064 Profit/ (loss) before taxation 1,045 (555) 375 1,432 2,101 Taxation (127) (61) (70) (53) (99) Profit/ (loss) for the year 918 (616) 305 1,379 2,002 At
Slide 42: Five years’ Financial summary – CONT’D
Five years’ FiNaNCial summary – CONT’D As at 31 December 2021 2020 2019 2018 2017 (HK$’M) ASSETS AND LIABILITIES Total assets 38,739 37,246 36,323 35,428 35,496 Total liabilities (10,573) (9,605) (7,699) (6,706) (7,686) Total equity 28,166 27,641 28,624 28,722 27,810 42