Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — FY2015 Earnings Presentation
42 slides from Wing Tai Properties's earnings presentation, 2016
Slide 1: Wing Tai Properties Limited Annual Results
WING TAI PROPERTIES LIMITED 永泰地產有限公司 ANNUAL RESULTS
Slide 2: Agenda
Agenda A Snapshot of 2015 • Key Achievements • Sustainable Growth • Land Bank Business Review • Property Development • Property Investment & Management • Hospitality Investment & Management • Strengthened Capital Structure Future Plans & Strategies 2015 Results Highlights Appendix 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 similar words that express an
Slide 4: A Snapshot of 2015
A SNAPSHOT OF 2015 ee lle ec ee
Slide 5: Key Achievements
Key Achievements • Continued to strengthen the three strategic pillars of our businesses of property development, property investment and management, and hospitality investment and management, with our diversified portfolio of residential, commercial and hospitality assets in Hong Kong and other key
Slide 6: Key Achievements – cont’d
Key Achievements – cont’d • Added three prime commercial properties in Central London to enhance our recurring income and economies of scale of our investment portfolio in London • Expanded the revenue base and presence of Lanson Place hospitality management with the full opening of Aroma Garden Ser
Slide 7: 2015 Sustainable Growth
2015 Sustainable Growth HK$’M • To further grow and diversify our asset portfolio to create long-term value for our stakeholders 7
Slide 8: Balanced and Diversified Land Bank in Hong Kong
Balanced and Diversified Land Bank in Hong Kong 1 The Pierre 2 The Warren 3 4 34 5 Kau To, Shatin (two plots) 5 6 Siu Sau, Tuen Mun 8 12 6 7 Shau Kei Wan 11 8 So Kwun Wat, Tuen Mun 4 9 9 Landmark East 1 13 10 2 7 10 W Square 11 Shui Hing Centre 12 Winner Godown Building 13 Development properties Inv
Slide 9: Land Bank (as at 31 December 2015)
Land Bank (as at 31 December 2015) Strategic land bank with focus on Hong Kong Investment Property By Business Segment Hospitality 11% Industrial Office / 27% Retail 62% Valuation as at Attributable Hong Kong China Others Total 31 December 2015 Gross Floor Area / Saleable Area (’000 sq. ft.) (’000 s
Slide 10: Business Review
Homantin Hillside Showflat " mr —= BUSINESS REVIEW
Slide 11: Property Development
2O IS PROPERTY DEVELOPMENT
Slide 12: Sales and Development Pipeline
Sales and Development Pipeline (as at 31 December 2015) A sustainable and scalable residential project pipeline Available Presold Estimated completion Property Gross Gross 2019 Development Group’s Floor Area Floor Area 2016 2017 2018 & Portfolio Interest (’000 sq. ft.) (’000 sq. ft.) Beyond Hong Kon
Slide 13: Completed Development in Hong Kong
Completed Development in Hong Kong Providence Bay, Providence Peak, The Graces, Pak Shek Kok, Tai Po • Providence Bay (482 units): approximately 85% of the residential units have been sold • Providence Peak (548 units): approximately 91% of the residential units have been sold • The Graces (193 unit
Slide 14: Completed Development in Hong Kong – Cont’d
Completed Development in Hong Kong – Cont’d The Warren (103 units), 9 Warren Street, Causeway Bay • Approximately 90% of the residential units have been sold Of which, around 8% were sold in 2015 14
Slide 15: Completed Development in Hong Kong – Cont’d
Completed Development in Hong Kong – Cont’d The Pierre (77 units), 1 Coronation Terrace, Mid-Levels West • Approximately 95% of the residential units have been sold Of which, around 3% were sold in 2015 15
Slide 16: Completed Development in Shanghai
Completed Development in Shanghai Upper Riverside (97 units), Lujiazui, Shanghai • Located along the Huangpu River at Lujiazui, Pudong • Gross floor area of approximately 210,000 sq. ft. • Project completed in August 2015 • Leasing and sale underway 16
Slide 17: Project Under Development in Hong Kong
Project Under Development in Hong Kong Homantin Hillside (173 units), 8 Wai Yin Path, Hung Hom • Saleable area of approximately 128,000 sq. ft. • In close proximity to upcoming Ho Man Tin MTR station of the Kwun Tong Line Extension and the Shatin to Central Link • Approximately 45% of the residentia
Slide 18: Project Under Development in Hong Kong – Cont’d
Project Under Development in Hong Kong – Cont’d Kau To, Shatin • Two sites (STTL 567 & 565) at peak of Kau To Shan, acquired in August 2012 and January 2013 • Combined gross floor area of approximately 460,000 sq. ft. • Earmarked for low-density luxury residential development • Superstructure work u
Slide 19: Project Under Development in Hong Kong – Cont’d
Project Under Development in Hong Kong – Cont’d Shau Kei Wan • Prime harbour-front residential site acquired in April 2014 • Gross floor area of approximately 46,000 sq. ft. • Foundation work underway • Project scheduled for completion in 2018 19
Slide 20: Project Under Development in Hong Kong – Cont’d
Project Under Development in Hong Kong – Cont’d Siu Sau, Castle Peak Road – Tai Lam, Tuen Mun • Gross floor area of approximately 159,000 sq. ft. • Earmarked for low-density residential development • Foundation work and site formation work underway • Project scheduled for completion by 2019 20
Slide 21: Project Under Development in Hong Kong – Cont’d
Project Under Development in Hong Kong – Cont’d So Kwun Wat, So Kwun Wat Road, Area 56, Tuen Mun • Acquired in January 2016 • Gross floor area of approximately 264,000 sq. ft. • Earmarked for medium-density residential development • Project scheduled for completion in 2021 21
Slide 22: Property Investment & Management
Property Investment & Management 22
Slide 23: Investment Portfolio in Hong Kong
Investment Portfolio in Hong Kong Average Leases Occupancy rental expiring/ Gross floor as at reversion rent area 31 December upon lease review in (’000 sq. ft.) 2015 renewal 2016 Landmark East (AIA 1,338 97% 18% 48% Grade A Kowloon Offices Tower/ AXA Tower) W Square 129 96% 9% 21% Winner Godown 497
Slide 24: Investment Portfolio in London
Investment Portfolio in London 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 • Achieved full occupancy Commercial Property at Brook Street, West End • Net internal area of approximately 19,000 sq. ft. of
Slide 25: Investment Portfolio in London – Cont’d
Investment Portfolio in London – Cont’d Commercial Property at Berkeley Square, West End • Acquired in September 2015 • Net internal area of approximately 7,900 sq. ft. of office space • Achieved an occupancy of approximately 70% Commercial Property at Fleet Place, the City • Acquired in September 2
Slide 26: Investment Portfolio in London – Cont’d
Investment Portfolio in London – Cont’d Commercial Property at Cavendish Square, West End • Acquired in January 2016 • Group’s interest of 33% • Net internal area of approximately 11,000 sq. ft. of office space • With the planning consent to increase the net internal area to approximately 14,000 sq.
Slide 27: Hospitality Investment & Management
Hospitality Investment & Management 27
Slide 28: Hospitality Portfolio
Hospitality Portfolio Strong brand recognition in HK & key gateway cities in Asia by customers and property owners Lanson Place Properties – Management Two MacDonnell Road, Mid-Levels, Lanson Place Jin Qiao Hong Kong, by Lanson Place Serviced Residences • No. of units: 213 • No. of units: 102 • Loca
Slide 29: Hospitality Portfolio – Cont’d
Hospitality Portfolio – Cont’d Strong brand recognition in HK & key gateway cities in Asia by customers and property owners Lanson Place Properties – Investment & Management Lanson Place Central Park Beijing Serviced Residences • Group’s interest: 30% • No. of units: 105 • Location: Beijing Shanghai
Slide 30: Hospitality Investment and Management
Hospitality Investment and Management • Aroma Garden Serviced Suites in Puxi, Shanghai had full opening in April 2015 • In July 2015, a new 10-year management contract was signed to manage One Sunland Serviced Suites in Waigaoqiao Free Trade Zone, Pudong, Shanghai. This denotes the 5th property in S
Slide 31: Solid Capital Structure
Solid Capital Structure November 2012 January 2013 May 2013 August 2014 October 2014 November 2014 First drawdown Second drawdown Third drawdown Fourth drawdown Fifth drawdown Sixth drawdown of S$170 million of HK$480 million of HK$100 million of HK$100 million of HK$100 million of HK$100 million un
Slide 32: Future Plans & Strategies
Showflat Future Plans & Strategies 32
Slide 33: Future Plans & Strategies
Future Plans & Strategies In near term In mid-to-long term Property • Capitalise on favourable windows in • Taking advantage of public land Development market to pre-sell /sell new projects tender programme and private treaty and remaining residential units of for development properties to completed
Slide 34: 2015 Results Highlights
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Slide 35: Financial Results Summary
Financial Results Summary For the year ended 31 December (HK$’M) 2015 2014 Revenue 1,009 1,784 43% Gross profit 745 926 20% Change in fair value of investment properties and 705 1,539 54% financial instruments Profit from operations 1,204 2,148 44% Share of results of joint ventures/associates 70 2
Slide 36: Segment Results Overview
Segment Results Overview For the year ended 31 December (HK$’M) 2015 2014 Property Development Revenue 149 944 84% Profit before taxation 44 170 74% Property Investment & Management Revenue 691 669 3% Fair value changes in investment properties and 791 1,537 49% financial instruments Profi
Slide 37: Balance Sheet Summary
Balance Sheet Summary 31 December 31 December (HK$’M) 2015 2014 Total assets 28,221 27,528 3% Net assets 23,347 22,680 3% Equity attributable to equity holders of the 23,346 22,679 3% company Investment properties 21,449 20,586 4% Properties for sale 1,296 1,322 2% Bank balances and cash 2,074 1,593
Slide 38: Balance Sheet Summary – Cont’d
Balance Sheet Summary – Cont’d 31 December 31 December (HK$’M) 2015 2014 Total borrowings 3,766 3,879 3% Net borrowings 1,692 2,286 26% Gearing ratio 7.2% 10.1% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 440 12% 64 2% Between one and two years 490 13% 45
Slide 39: Appendix
Appendix 39
Slide 40: Investment Thesis
Investment Thesis A credible and integrated property player in Hong Kong with a balanced and growing 1 development and investment portfolio spanning the region and beyond Strong track record in developing luxury and quality residential properties 2 at premium values Owns a diversified portfolio of h
Slide 41: Five Years’ Financial Summary
Five Years’ Financial Summary Year ended 31 December 2012 2011 2015 2014 2013 (Restated) (Restated) HK$’M HK$’M HK$’M HK$’M HK$’M RESULTS Continuing operations revenue 1,009.2 1,783.5 1,736.2 891.7 1,191.0 Profit before taxation from continuing operations 1,182.3 2,033.1 2,746.2 4,612.1 2,847.4 Taxa
Slide 42: Five Years’ Financial Summary – Cont’d
Five Years’ Financial Summary – Cont’d As at 31 December 2012 2011 2015 2014 2013 (Restated) (Restated) HK$’M HK$’M HK$’M HK$’M HK$’M ASSETS AND LIABILITIES Total assets 28,220.9 27,527.8 26,705.1 23,578.1 20,212.5 Total liabilities (4,873.6) (4,847.6) (5,809.9) (5,216.3) (4,849.8) Non-controlling i