Slide 1: Half Year Financial Report 1 Jan – 30 Jun 2015
HALF YEAR FINANCIAL REPORT 1 Jan – 30 Jun 2015 13 August 2015 ANALYST / MEDIA BRIEFING Artist’s Impression of The Brownstone
Slide 2: Agenda
AGENDA 1. FINANCIAL HIGHLIGHTS 2. SINGAPORE PROPERTY MARKET 3. OPERATIONS REVIEW 4. HOTEL OPERATIONS & CDLHT 5. STRATEGIC PLATFORMS Artist’s Impression of Gramercy Park
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS H2O Residences
Slide 4: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS • Achieved credible PATMI of $133.5m and $256.5m for Q2 2015 and 1H 2015 respectively, propelled by robust core earnings from both property development and hotel operations business segments. • No revaluation surpluses on investment properties and hotels (including CDL Hospi
Slide 5: Summary of Financial Highlights
SUMMARY OF FINANCIAL HIGHLIGHTS Q2 Q2 % 1H 1H % 2015 2014 Change 2015 2014 Change Revenue ($m) 825 861 (4.2) 1,640 1,595 2.8 PATMI ($m) 133 138 (3.2) 257 258 (0.4) Basic Earnings Per Share 14.0 14.5 (3.4) 27.5 27.6 (0.4) (cents) NAV Per Share ($) 9.36 8.67 8.0 No fair value adopted on investment pro
Slide 6: Revenue for the 2nd Quarter (2006 – 2015)
FINANCIAL HIGHLIGHTS Revenue for the 2nd Quarter (2006 – 2015) 1,200 982 979 1,000 861 813 825 775 781 787 788 800 602 $ million 600 400 200 0 2006 2007 2008 2009 2010 ^ 2011 2012 2013 * 2014 2015 2nd Quarter ^ Restated due to the adoption of INT FRS 115 for 2010 only. * Restated due to the adoption
Slide 7: PATMI for 2nd Quarter (2006 – 2015)
FINANCIAL HIGHLIGHTS PATMI for 2nd Quarter (2006 – 2015) 250 221 205 200 194 189 165 150 140 138 138 133 $ million 100 50 45 0 2006 2007 2008 2009 2010 ^ 2011 2012 2013 * 2014 2015 2nd Quarter ^ Restated due to the adoption of INT FRS 115 for 2010 only. * Restated due to the adoption of FRS 110 for
Slide 8: Revenue for the Period Ended Jun (2006 – 2015)
FINANCIAL HIGHLIGHTS Revenue for the Period Ended 30 Jun (2006 – 2015) 2,000 1,800 1,753 1,687 1,635 1,640 1,544 1,590 1,595 1,600 1,540 1,410 1,400 1,200 1,143 $ million 1,000 800 600 400 200 0 2006 2007 2008 2009 2010 ^ 2011 2012 2013 * 2014 2015 Period ^ Restated due to the adoption of INT FRS 11
Slide 9: PATMI for the Period Ended Jun (2006 – 2015)
FINANCIAL HIGHLIGHTS PATMI for the Period Ended 30 Jun (2006 – 2015) 600 503 500 400 330 348 343 321 $ million 294 300 258 257 223 200 100 86 0 2006 2007 2008 2009 2010 ^ 2011 2012 2013 * 2014 2015 Period ^ Restated due to the adoption of INT FRS 115 for 2010 only. * Restated due to the adoption of
Slide 10: Revenue by Segment – 1H 2015 vs 1H 2014 & 1H 2013
FINANCIAL HIGHLIGHTS Revenue by Segment – 1H 2015 vs 1H 2014 & 1H 2013 1,000 1H 2013 (Restated) * 1H 2014 800 770 798 1H 2015 726 618 584 567 $ million 600 400 188 187 199 200 58 54 76 0 Property Hotel Operations Rental Properties Others Development 1H 2015 1H 2014 1H 2013 (Restated) * Property Deve
Slide 11: Profit before Tax by Segment – 1H 2015 vs 1H 2014 & 1H 2013
FINANCIAL HIGHLIGHTS Profit before Tax by Segment – 1H 2015 vs 1H 2014 & 1H 2013 300 1H 2013 (Restated) * 250 1H 2014 210 200 181 176 1H 2015 153 $ million 150 117 106 103 100 71 71 50 6 10 0 (5) (50) Property Hotel Operations Rental Properties Others Development 1H 2015 1H 2014 1H 2013 (Restated) *
Slide 12: Hotel Revenue by Region
FINANCIAL HIGHLIGHTS Hotel Revenue by Region 1H 2015 1H 2014 6% 6% 40% 44% 23% 45 Asia 24% 43 185 187 320 United States 337 Europe 203 248 New Zealand 31% 26% $798m * $770m * * Includes room revenue of $517.9m (1H 2014: $494.4m) for 1H 2015. 12
Slide 13: Hotel Occupancy by Region
FINANCIAL HIGHLIGHTS Hotel Occupancy by Region 80.0 78.2 75.0 74.3 74.4 Hotel Occupancy Rate (%) 72.3 72.7 70.0 65.2 65.1 1H 2014 1H 2015 60.0 50.0 Asia United States Europe New Zealand 13
Slide 14: Hotel Revenue Per Available Room at Constant Currency
FINANCIAL HIGHLIGHTS Hotel Revenue Per Available Room at Constant Currency 200 170 152 152 154 153 Hotel RevPAR ($) 136 135 140 1H 2014 * 1H 2015 110 95 87 80 50 Asia United States Europe New Zealand * For comparability, 1H 2014 RevPAR has been translated at constant exchange rates (30 Jun 2015). 14
Slide 15: Capital Management
FINANCIAL HIGHLIGHTS Capital Management As at As at As at CDL Group Total 31/12/14 30/06/15 30/06/14 Net Borrowings $2,962m $2,820m $3,145m Interest Cover Ratio 10.5 x 12.1 x 10.7 x Cash and cash equivalents $3,690m $3,898m $3,350m Gearing ratio without taking in fair value 28% 26% 33% gains on inve
Slide 16: Singapore Property Market
SINGAPORE PROPERTY MARKET Gramercy Park For Illustration Only
Slide 17: Property Price Index – Residential (2010 – 1H 2015)
SINGAPORE PROPERTY MARKET Property Price Index – Residential (2010 – 1H 2015) All Residential 180 160 Q1 15 Q2 15 145.5 144.2 140 120 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 Source : URA, Q2 2015 Based on
Slide 18: New Private Residential Units Launched vs Units Sold
SINGAPORE PROPERTY MARKET No. of New Private Residential Units Launched vs Units Sold (Projects under Construction) (2010 – 1H 2015) New Units Launched New Units Sold (Projects Under Construction) 24,000 New Units New Units 22,000 Launched Sold Directly By (excl. EC units) Developers 20,000 (excl. E
Slide 19: Uncompleted Private Residential Units Available
SINGAPORE PROPERTY MARKET No. of Uncompleted Private Residential Units Available (2010 – 1H 2015) Not Launched Launched & Unsold 20,000 18,261 17,084 17,467 Launched Not Total 16,587 & Unsold Launched* 16,000 13,928 13,944 2010 3,528 10,400 13,928 2011 5,584 11,500 17,084 12,000 2012 5,137 8,807 13,
Slide 20: Property Price Index – Commercial (2010 – 1H 2015)
SINGAPORE PROPERTY MARKET Property Price Index – Commercial (2010 – 1H 2015) 160 Q1 15 Q2 15 138.6 139.0 140 120 Q1 15 Q2 15 130.7 130.1 100 80 60 Office Shop 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 S
Slide 21: Average Office Rental in CBD (2010 – 1H 2015)
SINGAPORE PROPERTY MARKET Average Office Rental in CBD (2010 – 1H 2015) 14.00 $11.14 $12.04 12.00 $11.45 $10.21 $10.51 $9.74 10.00 $9.26 $8.95 $8.44 $7.90 $8.37 8.00 $7.70 Marina Bay/ Raffles Place (Grade A) 6.00 Whole Island 4.00 2.00 0.00 2010 2011 2012 2013 2014 1H 2015 Source : JLL Research, Q2
Slide 22: Operations Review
OPERATIONS REVIEW Artist’s Impression of The Brownstone
Slide 23: Property Development – Units Booked / Sold
OPERATIONS REVIEW Property Development – Units Booked / Sold Sales Value* No. of Total $’000 Units* Floor Area* (sq ft) 1H 2015 $ 224,012 178 193,969 1H 2014 $ 1,070,978 1,115 912,754 * Includes share of JV partners & ECs 23
Slide 24: CDL's Residential Units Launched and Available vs Units Sold
SINGAPORE PROPERTY MARKET CDL’s Residential Units Launched and Available vs Units Sold (2010 – 1H 2015) 2,500 Units Unsold Units Sold 2,066 2,000 246 1,689 1,500 374 1,397 1,154 217 1,058 115 1,000 1,820 376 1,315 1,180 512 500 1,039 682 400 112 0 2010 2011 2012 2013 2014 1H 2015 JV projects: Exclud
Slide 25: Completed Residential Projects Handed Over in 1H 2015
OPERATIONS REVIEW Completed Residential Projects Handed Over to Purchasers in 1H 2015 The Rainforest Executive Condominium H2O Residences Location: Choa Chu Kang Avenue 3 Location: Fernvale Link Number of units: 466 Number of units: 521 25
Slide 26: Residential Project Launch in 2H 2015
OPERATIONS REVIEW Residential Project Launch in 2H 2015 Location: Canberra Drive Number of units: 638 • Located within Sembawang New Town • Next to future Canberra MRT station • Sales booking commenced on 25 July; 195 units sold to date Artist’s Impression 26
Slide 27: Upcoming Residential Project Launches – Yishun
OPERATIONS REVIEW Upcoming Residential Project Launches (subject to market conditions) Location: Yishun Street 51 Number of units: 505 • Near established Yishun and Woodlands residential estates • Comprises 2- to 5-bedroom apartments and Penthouses, with flexi-unit options Artist’s Impression (Desig
Slide 28: Upcoming Residential Project Launches – Grange Road
OPERATIONS REVIEW Upcoming Residential Project Launches (subject to market conditions) Location: Grange Road Number of units: 174 Artist’s Impression of Fitness Studio • Freehold project, located in prime District 10 • Designed by world renowned architecture firm NBBJ of New York • Minutes away from
Slide 29: South Beach Tower – 90% Leased
OPERATIONS REVIEW South Beach Tower – 90% Leased South Beach Tower (Office) • 34-storey North Tower – over 510,000 sq ft Grade A office space • 90% leased, with another 6% confirmed (pending documentation) • Advanced negotiations underway for remaining 4% space Artist’s Impression 29
Slide 30: The South Beach – Soft Opening in September 2015
OPERATIONS REVIEW The South Beach – Soft Opening in September 2015 (in phases) The South Beach (Hotel) • A Hotel of Design – interior design by Philippe Starck Artist’s Impression • 654 rooms including 49 suites • Large ballroom and meeting rooms within conservation block • Soft opening in September
Slide 31: South Beach Quarter – New-to-Market F&B Concepts
OPERATIONS REVIEW South Beach Quarter – New-to-Market F&B Concepts South Beach Quarter • Another conservation block – 13,000 sq ft over two-storeys • Housing 4 exciting new-to-market F&B concepts • Opening in phases in September 2015 Artist’s Impression Artist’s Impression 31
Slide 32: South Beach Club – Exclusive Private Membership Club
OPERATIONS REVIEW South Beach Club – Exclusive Private Membership Club South Beach Club • Offers members’ exclusive access to a privileged lifestyle through unique fine-dining concepts and social spaces • Located within the former Non-Commissioned Officers Artist’s Impression (NCO) Club • Planned la
Slide 33: South Beach Residences – Completion in Q2 2016
OPERATIONS REVIEW South Beach Residences – Completion in Q2 2016 South Beach Residences • 190 luxury apartments with 360 degree panoramic views of Marina Bay, CBD skyline and Orchard area • Expected completion by Q2 2016 Artist’s Impression Artist’s Impression 33
Slide 34: Land Bank by Sector (as at June 2015)
OPERATIONS REVIEW Land Bank by Sector (as at 30 June 2015) – CDL’s Attributable Share Land Area (Sq ft) Type of Development Local Overseas Total % (Local & Overseas) Residential 1,030,395 1,204,066 2,234,461 84.3% Commercial / Hotel 120,189 294,619 414,808 15.7% Total 1,150,584 1,498,685 2,649,269 1
Slide 35: Hotel Operations & CDLHT
HOTEL OPERATIONS & CDLHT Grand Hyatt Taipei
Slide 36: Hotel Operations – M&C Group Trading Performance
HOTEL OPERATIONS M&C Group Good Trading Performance Increase in hotel revenue due to improvement in RevPAR (in reported currency) driven mainly by higher average room rate, coupled with contributions from recent acquisitions, improved performance in New Zealand, Rest of Europe and Regional US, and
Slide 37: M&C Group – Hotel Room Count and Pipeline
HOTEL OPERATIONS M&C Group – Hotel Room Count and Pipeline Hotels Rooms 30 Jun 31 Dec 30 Jun 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 16 16 2,560 2,560 ● Middle East * 22 17 6,446 5
Slide 38: Millennium Mitsui Garden Hotel Tokyo
HOTEL OPERATIONS Millennium Mitsui Garden Hotel Tokyo Strong Performance Since Opening in December 2014 • M&C’s first hotel in Japan with 329 rooms • Strategically located in the heart of Tokyo’s Ginza 4-Chome district • Over 80% average occupancy rate, and rising room rates Artist’s Impression Arti
Slide 39: M&C Group – Assets Enhancement (In Progress)
HOTEL OPERATIONS M&C Group – Assets Enhancement (In Progress) Millennium Bailey’s Hotel London - Refurbishments is scheduled to complete in Oct 2015. 39
Slide 40: M&C Group – Assets Enhancement (In Progress)
HOTEL OPERATIONS M&C Group – Assets Enhancement (In Progress) Millennium Biltmore Hotel Los Angeles ONE UN New York - Refurbishments is scheduled to complete in late 2016. - Refurbishments of the East Tower is scheduled to complete in Apr 2016. 40
Slide 41: M&C Group – Assets Enhancement (In Progress)
HOTEL OPERATIONS M&C Group – Assets Enhancement (In Progress) Grand Hyatt Taipei Millennium Seoul Hilton - Refurbishments is scheduled to complete by end 2015. - Refurbishments is scheduled to complete in Oct 2015. 41
Slide 42: New Development Adjacent to Millennium Seoul Hilton
HOTEL OPERATIONS M&C Group – New Development Adjacent to Millennium Seoul Hilton Artist’s Impression Artist’s Impression New Hospitality Facility in Seoul - Acquired land parcel in April 2013. - Proposed 306-room business lifestyle hotel and 229-room service apartment complex. Artist’s Impression 42
Slide 43: M&C Group – Assets Enhancement (In Progress)
HOTEL OPERATIONS M&C Group – Assets Enhancement (In Progress) Millennium Hotel Buffalo - Refurbishments is scheduled to complete in Q4 2015. Millennium Hotel Durham - Refurbishments is scheduled to complete in Q1 2016. Copthorne Hotel Harbour City Auckland - Closed in Jul 2015 for major refurbishmen
Slide 44: M&C Group – Assets Enhancement (Completed)
HOTEL OPERATIONS M&C Group – Assets Enhancement (Completed) Refurbishment has been completed for all 248 guestrooms and common parts of Millennium Alaskan Hotel Anchorage, which has been re-branded as The Lakefront Anchorage. 44
Slide 45: Hard Days Night Hotel, Liverpool – New Strategic Acquisition
HOTEL OPERATIONS Hard Days Night Hotel, Liverpool – New Strategic Acquisition Expected Completion by 19 August 2015 • Acquisition announced by M&C on 7 Aug for £13.8 million • The Beatles-inspired hotel with 110 guest rooms and suites • Located in popular Cavern Quarter • Property has a remaining le
Slide 46: CDL Hospitality Trusts (CDLHT) Trading Performance
CDL HOSPITALITY TRUSTS (CDLHT) Trading Performance S$’000 1H 2015 1H 2014 Change Gross Revenue 81,213 81,605 (0.5%) Net Property 66,118 68,056 (2.8%) Income Hotel MyStays Asakusabashi Gross revenue decrease mainly due to lower gross revenue from Singapore hotels, partially mitigated by $4.8m contr
Slide 47: Strategic Platforms
STRATEGIC PLATFORMS Artist’s Impression of Hong Leong City Center, Suzhou
Slide 48: Eling Residences – Chongqing, China
CHINA Eling Residences 鹅岭峰 – Chongqing, China Sales Launch – Targeted in Q4 2015 • Exclusive 126-unit luxury residence • Sited at the peak of Eling Hill in Yuzhong district • All structural works completed; site inspection by authorities to commence soon • Expected sales launch in Q4 2015 Artist’s I
Slide 49: Huang Huayuan – Chongqing, China
CHINA Huang Huayuan – Chongqing, China Undergoing Review of the Unit Mix • Mixed-use riverside development with 3 high-rise residential towers, 150-room hotel and mall • Prime location beside Jialing River in Yuzhong district • Unit mix being revised, exploring smaller units May affect the buildin
Slide 50: Hong Leong City Center – Suzhou, China
CHINA Hong Leong City Center 丰隆城市中心 – Suzhou, China Bestselling Luxury Residential Project in Suzhou Industrial Park for 2015 • Mixed-use waterfront development at Jinji Lake, in Suzhou Industrial Park Phase 1 – Tower 1: 462-unit residential block – Tower 3: 899-unit SOHO block Phase 2 – Tower 2
Slide 51: Shanghai Luxury Residential Project
CHINA Shanghai Luxury Residential Project Project Relaunch Planned • Acquired residential developer Shanghai Jingwen Zhaoxiang Real Estate Limited in Shanghai in December 2014 • Completed luxury residential project in 2013 with 120 residences (85 unsold units) • Project is strategically located in t
Slide 52: Teddington – Freehold Riverside Site
UK Teddington – Freehold Riverside Site Acquisition Completion in Q4 2015 • Prime 18,211 sqm freehold land parcel on the banks of River Thames in south-west London • Design improvements on-going • Revised scheme well-received at public consultation • Marketing of 213 residential units to begin upon
Slide 53: Reading – 82-unit Hanover House Residential Project
UK Reading – 82-unit Hanover House Residential Project Positive Market Interest • 42 units reserved (out of 49 units from initial phased release) Hanover House 202 Kings Road Artist’s Impression Reading RG1 4NN 53
Slide 54: Central London – Freehold Residential Projects
UK Central London – Freehold Residential Projects in Belgravia, Knightsbridge & Chelsea Planning Permissions Secured • Building works have commenced • Target for sale close to completion Belgravia 31/35 Chesham Street London SW1X 8NQ Artist’s Impression Chelsea 90-100 Sydney Street London SW6NJ Knig
Slide 55: Freehold Projects in Knightsbridge & Croydon
UK Freehold Projects in Knightsbridge & Croydon Securing Planning Approval • Schemes are close to approval Millennium Hotel London Knightsbridge Emerald House 15 Lansdowne Road Croydon, CRO 2BX 28 Pavilion Road Knightsbridge 28 Pavilion Road London SW1X 0HH 55
Slide 56: Freehold Development Site in Shirokane – Tokyo, Japan
JAPAN Freehold Development Site in Shirokane – Tokyo, Japan Design Scheme Revisions in Progress • Freehold 16,815 sqm land site with 1,340 sqm mansion in Tokyo’s affluent Minato ward • Site acquired in September 2014 • Optimisation of design scheme with architects and consultants in progress • Proje
Slide 57: 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 58: Shaping Singapore's Cityscape since 1963
Option 1 Shaping Singapore’s Cityscape since 1963 www.cdl.com.sg