Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — H1 2015 Earnings Presentation
38 slides from Wing Tai Properties's earnings presentation, 2015
Slide 1: Interim Results
WING TAI PROPERTIES LIMTTED Tk 3 Hh EAL BR ZS
Slide 2: Agenda
Agenda A Snapshot of 1H 2015 Key Achievements Sustainable Growth Land Bank Business Review Property Development Property Investment & Management Hospitality Investment & Management Diversified and Robust Capital Structure Future Plans & Strategies 2015 Interim Results Highlights Append
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 1H 2015
A Snapshot of 1H 2015 4
Slide 5: Key Achievements
Key Achievements Capitalising on our well-maintained portfolio of residential, commercial and hospitality assets, the Group has continued to achieve satisfactory results and growth, staying resilient amid a competitive market and challenging operating environment Recorded consolidated net profit
Slide 6: 1H 2015 Sustainable Growth
1H 2015 Sustainable Growth HK$’M Shareholders’ Equity 25,000 20,000 15,000 10,000 5,000 0 2010 2011 2012 2013 2014 1H 2015 To further grow and diversify our asset portfolio to create long-term value for our stakeholders 6
Slide 7: 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 6 11 7 Shau Kei Wan 8 10 Landmark East 4 8 9 W Square 1 12 9 2 7 10 Shui Hing Centre 11 Winner Godown Building 12 Development properties Investment properties 7
Slide 8: Land Bank (as at 30 June 2015)
Land Bank (as at 30 June 2015) Strategic land bank with focus on Hong Kong Investment Property Residential Development Land Bank Overview (sq. ft.) By Business Segment By Geographical Segment Hospitality China 13% 18% Residential Office/ Retail Investment Development 60% 19% Industrial Property Hong
Slide 9: Business Review
Business Review 9
Slide 10: Property Development
Property Development 10
Slide 11: Sales and Development Pipeline (as at 30 June 2015)
Sales and Development Pipeline (as at 30 June 2015) A sustainable and scalable residential project pipeline Available Presold Estimated completion Property Gross Gross 2018 Development Group’s Floor Area Floor Area 2015 2016 2017 & Portfolio Interest (’000 sq. ft.) (’000 sq. ft.) Beyond Hong Kong Pr
Slide 12: Completed Development
Completed Development Providence Bay, Providence Peak, The Graces, Pak Shek Kok, Tai Po Providence Bay (482 units): approximately 82% of the residential units have been sold Providence Peak (548 units): approximately 90% of the residential units have been sold The Graces (193 units): approxima
Slide 13: Completed Development – Cont'd
Completed Development – Cont’d The Warren (103 units), 9 Warren Street, Causeway Bay Approximately 88% of the residential units have been sold Of which, around 6% were sold in 1H 2015 13
Slide 14: Completed Development – Cont'd
Completed Development – 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 1H 2015 14
Slide 15: 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. for 173 residential units In close proximity to upcoming Ho Man Tin MTR station of Kwun Tong Line Extension as well as Shatin to Central Link Approximat
Slide 16: Project Under Development in Hong Kong – Cont'd
Project Under Development in Hong Kong – Cont’d Kau To, Shatin Two sites (STTL 567 & 565) acquired in August 2012 and January 2013 Combined gross floor area of approximately 460,000 sq. ft. Foundation works underway Projects scheduled for completion in 2017 16
Slide 17: 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 17
Slide 18: 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 18
Slide 19: Project Under Development in Shanghai
Project Under Development in Shanghai Upper Riverside, Lujiazui, Shanghai Located along the Huangpu River at Lujiazui, Pudong Gross floor area of approximately 210,000 sq. ft. for 97 apartment units Project completed in August 2015 Ready for leasing and sale 19
Slide 20: Property Investment & Management
Property Investment & Management 20
Slide 21: Investment Portfolio in Hong Kong
Investment Portfolio in Hong Kong Average rental Occupancy Leases reversion Leases Gross floor as at renewed upon expiring/rent area 30 June in lease review in (’000 sq. ft.) 2015 1H 2015 renewal 2H 2015 Landmark East (AIA 1,338 97% 7% 14% 14% Grade-A Kowloon Offices Tower/ AXA Tower) W Square 129 9
Slide 22: Investment Portfolio in London
Investment Portfolio in London Commercial Property at Savile Row/Vigo Street, West End Net internal area of Grade-A office and retail space of approximately 14,000 sq. ft. Achieved full occupancy Retail space of approximately 7,000 sq. ft., for rent review in May 2015 Commercial Property at Br
Slide 23: Investment Portfolio in London – Cont'd
Investment Portfolio in London – Cont’d Commercial Property at Berkeley Square, West End Net internal area of office space of approximately 7,900 sq. ft. Achieved full occupancy Completion of acquisition in September 2015 Commercial Property at Fleet Place, the City Group’s interest of 25%
Slide 24: Hospitality Investment & Management
Hospitality Investment & Management 24
Slide 25: 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 Serviced Residences Lanson Place Central Park • No. of units/rooms: 102 Serviced Reside
Slide 26: Hospitality Investment and Management
Hospitality Investment and Management Lanson Place Jinlin Tiandi Serviced Residences in Shanghai maintained stable occupancy rate and average rental rate Lanson Place Central Park Serviced Residences in Beijing continued to achieve occupancy of over 90% with steady growth in average rental rate
Slide 27: Diversified and Robust Capital Structure
Diversified and Robust Capital Structure November November January 2013 May 2013 August 2014 October 2014 2012 2014 Second Third Fourth Fifth First Sixth drawdown of drawdown of drawdown of drawdown of drawdown of drawdown of HK$480 million HK$100 million HK$100 million HK$100 million S$170 million
Slide 28: Future Plans & Strategies
Future Plans & Strategies 28
Slide 29: Future Plans & Strategies
Future Plans & Strategies In near term In mid-to-long term Property Capture right market windows to Leverage public land tender programme Development further pre-sell / launch new projects to expedite and increase land supply to and remaining units of completed proactively replenish land bank an
Slide 30: 2015 Interim Results Highlights
2015 Interim Results Highlights 30
Slide 31: Financial Results Summary
Financial Results Summary For the six months ended 30 June (HK$’M) 2015 2014 Continuing operations Revenue 539.8 1,317.0 59% Gross profit 382.4 574.6 33% Change in fair value of investment properties and 264.5 1,333.9 80% financial instruments Profit from operations 490.1 1,734.7 72% Share of result
Slide 32: Segment Results Overview
Segment Results Overview For the six months ended 30 June (HK$’M) 2015 2014 Property Development Revenue 115 898 87% Profit before taxation 80 171 53% Property Investment & Management Revenue 342 333 3% Fair value changes in investment properties and 286 1,314 78% financial instruments Pro
Slide 33: Balance Sheet Summary
Balance Sheet Summary 30 June 31 December (HK$’M) 2015 2014 Total assets 27,779 27,528 1% Net assets 22,933 22,680 1% Equity attributable to equity holders of the 22,932 22,679 1% company Investment properties 20,844 20,586 1% Properties for sale 1,269 1,322 4% Bank balances and cash 2,159 1,593 36%
Slide 34: Balance Sheet Summary – Cont'd
Balance Sheet Summary – Cont’d 30 June 31 December (HK$’M) 2015 2014 Total borrowings 3,847 3,879 1% Net borrowings 1,689 2,286 26% Gearing ratio 7.4% 10.1% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 64 2% 64 2% Between one and two years 629 16% 459 12%
Slide 35: Appendix
Appendix
Slide 36: Investment Thesis
Investment Thesis A credible and integrated property player in Hong Kong 1 with a balanced and growing development and investment portfolio Strong track record in developing luxury and quality residential properties 2 at premium values Owns a diversified portfolio of high-quality Grade-A office and
Slide 37: Five Years' Financial Summary
Five Years’ Financial Summary Interim Result Full Year Result 1H 2015 1H 2014 2014 2013 2012 2011 2010 HK$’M HK$’M HK$’M HK$’M HK$’M HK$’M HK$’M RESULTS Continuing operations revenue 539.8 1,317.0 1,783.5 1,736.2 891.7 1,191.0 1,416.0 Profit before taxation from continuing 520.4 1,671.3 2,033.1 2,74
Slide 38: Five Years' Financial Summary – Cont'd
Five Years’ Financial Summary – Cont’d As at 30 June As at 31 December 1H 2015 2014 2013 2012 2011 2010 HK$’M HK$’M HK$’M HK$’M HK$’M HK$’M ASSETS AND LIABILITIES Total assets 27,778.7 27,527.8 26,705.1 23,578.1 20,212.5 17,631.2 Total liabilities (4,845.4) (4,847.6) (5,809.9) (5,216.3) (4,849.8) (4