Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — H1 2021 Earnings Presentation
42 slides from Wing Tai Properties's earnings presentation, Aug 31, 2021
Slide 1: Wing Tai Properties Limited Interim Results
Wing Tai Properties Limited Interim Results 永泰地產有限公司 2021
Slide 2: Agenda
Agenda • A Snapshot of 1H 2021 • Key Achievements • Land Bank • Business Review • Property Development • Property Investment & Management • Hospitality Investment & Management • Strengthened Capital Structure • Future Plans & Strategies • 2021 Interim Results Highlights • Appendix
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 2021
Wh A SNAPSHOT OF 1H 2021 ~ a 7” i -— # ad a ™ ) a he i
Slide 5: Key Achievements
Key Achievements • Consolidated profit attributable to shareholders was HK$188 million, an increase of HK$674 million compared with consolidated loss of HK$486 million in 2020. • Continued to sell steadily the remaining units of our three “Upper Gold Coast” series. We obtained the Occupation Permit
Slide 6: Key Achievements – CONT’D
Key Achievements – CONT’D • Completed the acquisition of a 21% interest in a Grade A office building located on Shoe Lane, the City of Central London. This marks our 7th commercial property in London (Mayfair, Midtown and City), giving us the benefit of economies of scale and enhancing our recurring
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 1 No.1 Savile Row 2 10 Brook Street 3 35 Berkeley Square 4 30 Gresham Street 7 6 5 4 2 4 3 1 85 10 Fleet Place 6 66 Shoe Lane 7 3 Cavendish Square Investment properties 8
Slide 9: Land bank (as at 30 June 2021)
Land bank (as at 30 June 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% 80% Retail 20% 73% Valuation as at Attributable Hong Kong
Slide 10: Business Review
Business Review 10
Slide 11: Property development
Property development 11
Slide 12: Sale and development pipeline (As at 30 June 2021)
Sale and development pipeline (As at 30 June 2021) A sustainable and scalable project pipeline Available Estimated Completion Saleable Area / Property Development Portfolio Gross Group’s Q4 2021 2022 2023 2024 and Floor Area Interest beyond (’000 sq. ft.) Hong Kong Completed Development The Carmel*
Slide 13: Completed Development in Hong Kong
Completed Development in Hong Kong 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 parking spaces, whi
Slide 14: Completed Development in Hong Kong – CONT’D
Completed Development in Hong Kong – CONT’D La Vetta (34 units), Kau To, Shatin • Low-density luxury residential project • In 1H 2021, all unsold units were distributed to shareholders • After distribution, the Group has approximately 72,000 sq. ft. saleable area for 34 residential units including h
Slide 15: 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. • Low-density residential development • In 1H 2021, approximately 2% of the residential units were sold and handed over • Cumulatively approximately 99% of
Slide 16: Project Under Development in Hong Kong
Project Under Development in Hong Kong OMA OMA (466 units), So Kwun Wat Road, Tuen Mun • Saleable area of approximately 234,000 sq. ft. • Medium-density residential development • Occupation Permit obtained in March 2021 • Certificate of Compliance to be obtained in the fourth quarter of 2021. • In 1
Slide 17: Project Under Development in Hong Kong – CONT’D
Project Under Development in Hong Kong – CONT’D OMA by the Sea (517 units), Castle Peak Road, Tai Lam, Tuen Mun • Saleable area of approximately 252,000 sq. ft. • Medium-density residential development • In 1H 2021, approximately 11% of the residential units were pre-sold • Cumulatively approximatel
Slide 18: Project Under Development in Hong Kong – CONT’D
Project Under Development in Hong Kong – CONT’D Commercial Complex site 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 pa
Slide 19: 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 20: Property Investment & Management
Property Investment & Management 20
Slide 21: Investment portfolio in Hong Kong
Investment portfolio in hong kong Gross floor Occupancy as at area (’000 sq. ft.) 30 June 2021 Grade A Offices Landmark East (AIA Kowloon Tower/ 1,338 84% AXA Tower) Industrial Property Shui Hing Centre* 187 85% * Obtained the Town Planning Board approval for redevelopment in April 2021 21
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 and retail space as well as ancillary accommodation 2) Commercial Property on Fleet Place, the City • Gro
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 30 June 2021, all 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 One Sunland, Shanghai Shanghai 188 units Hong Kong Lanson Place Parkside, Lanson Place Winsland, Manila Shanghai Singapo
Slide 29: Hospitality investment and management
Hospitality investment and management • Occupancy rate and average room rates of our Lanson Place Causeway Bay in Hong Kong remain low due to travel restrictions and quarantine measure in place, resulted in operating loss and in view of slow recovery outlook. • Lanson Place Waterfront Suites, a whol
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$10
Slide 31: Future Plans & Strategies
FUTURE PLANS & STRATEGIES Sil
Slide 32: Future plans & strategies
Future plans & strategies In near term In mid-to-long term Property • Continue the sale of the remaining units of • Expand residential and commercial Development our “Upper Gold Coast” series, namely The properties portfolio through active Carmel, OMA OMA and OMA by the Sea participation in governme
Slide 33: 2021 Interim Results Highlights
2021 Interim Results Highlights 33
Slide 34: Financial results summary
Financial results summary For the six months ended 30 June (HK$’M) 2021 2020 Revenue 497 1,957 75% Gross profit 334 623 46% One-off valuation gain on distribution in specie of a joint 472 - N/A venture Change in fair value of investment properties and financial (383) (773) 50% instruments including
Slide 35: Segment results overview
Segment results overview For the six months ended 30 June (HK$’M) 2021 2020 Property Development Revenue 160 1,591 90% One-off valuation gain on distribution in specie of a joint venture 472 - N/A Fair value changes in investment properties and financial 37 (51) N/A instruments including joint
Slide 36: Segment results overview – CONT’D
Segment results overview – CONT’D For the six months ended 30 June (HK$’M) 2021 2020 Hospitality Investment & Management Revenue 27 28 4% Fair value changes in investment properties including joint - (171) N/A ventures Loss before taxation (20) (195) 90% Loss before taxation excluding fair v
Slide 37: Balance sheet summary
Balance sheet summary 30 June 31 December (HK$’M) 2021 2020 Total assets 38,068 37,246 2% Net assets 27,563 27,641 0% Equity attributable to shareholders of the company 26,050 26,126 0% Investment properties 21,817 20,376 7% Investments in and loans to joint ventures 5,592 6,643 15% (both non-curren
Slide 38: Balance sheet summary – CONT’D
Balance sheet summary – CONT’D 30 June 31 December (HK$’M) 2021 2020 Total borrowings 4,734 4,380 8% Net borrowings 3,195 3,190 0% Gearing ratio 11.6% 11.5% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 1,396 29% 726 17% Between one and two years 2,069 44%
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 Interim Results Full Year Results 1H 2021 1H 2020 2019 2018 (HK$’M) 2020 (Note 1) (Note 2) 2017 2016 RESULTS Revenue 497 1,957 2,778 830 885 1,064 1,103 Profit/(loss) before taxation 245 (411) (555) 375 1,432 2,101 1,260 Taxation (25) (47) (61) (70) (53) (99) (111) Prof
Slide 42: Five years’ financial summary – CONT’D
Five years’ FiNaNCial summary – CONT’D As at 30 June As at 31 December 1H 2021 2020 2019 2018 2017 2016 (HK$’M) ASSETS AND LIABILITIES Total assets 38,068 37,246 36,323 35,428 35,496 30,776 Total liabilities (10,505) (9,605) (7,699) (6,706) (7,686) (6,464) Total equity 27,563 27,641 28,624 28,722 27