Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — FY2016 Earnings Presentation
41 slides from Wing Tai Properties's earnings presentation, 2017
Slide 1: Annual Results 2016
WING TAI PROPERTIES LIMITED 永泰地產有限公司 ANNUAL RESULTS 2016
Slide 2: Agenda
Agenda A Snapshot of 2016 • Key Achievements • Sustainable Growth • Land Bank Business Review • Property Development • Property Investment & Management • Hospitality Investment & Management • Strengthened Capital Structure Future Plans & Strategies 2016 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 2016
A SNAPSHOT OP 2016 [ees (ieee) Be NT a
Slide 5: Key Achievements
Key Achievements • Focusing on strengthening the three strategic pillars of our businesses – property development, property investment and management, and hospitality investment and management, we have built a strong presence in Hong Kong, London and other key gateway cities in Asia with a balanced
Slide 6: Key Achievements – cont'd
Key Achievements – cont’d • Expanded land bank with the addition of another premium residential site at Castle Peak Road – Tai Lam, Tuen Mun in June 2016. We are now holding three residential sites with a gross project size close to 720,000 square feet in Tuen Mun district, where various government
Slide 7: 2016 Sustainable Growth
2016 Sustainable Growth HK$’M Shareholders’ Equity 26,000 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 2011 2012 2013 2014 2015 2016 • 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 5 6 Siu Sau, Tai Lam, Tuen Mun 9 8 13 6 7 Shau Kei Wan So Kwun Wat Road, 12 8 Tuen Mun 4 10 9 Castle Peak Road, Tai Lam, 1 14 Tuen Mun 11 2 7 10 Landmark East 11 W Square 12 Shui Hing Centre 13 Winner Godown Building
Slide 9: Land Bank (as at 31 December 2016)
Land Bank (as at 31 December 2016) Strategic land bank with focus on Hong Kong Land Bank Overview (sq. ft.) Re side ntial De ve lopment 25% Inve stment Prope rty 75% Valuation as at Attributable Hong Kong China Others Total 31 December 2016 Gross Floor Area / Saleable Area (’000 sq. ft.) (’000 sq. f
Slide 10: Business Review
Business Review
Slide 11: Property Development
Property Development 11
Slide 12: Sales and Development Pipeline
Sales and Development Pipeline (as at 31 DECEMBER 2016) A sustainable and scalable residential project pipeline Available Presold Estimated Completion Property Development Gross Gross Portfolio Floor Area Floor Area 2020 - Group’s 2017 2018 2019 (’000 sq. ft.) (’000 sq. ft.) 2022 Interest Hong Kong
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 94% of the residential units have been sold • Providence Peak (548 units): approximately 97% 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 99% of the residential units have been sold by now 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 • All of the residential units have been sold by now 15
Slide 16: Completed Development in Hong Kong – Cont'd
Completed Development in Hong Kong – Cont’d Homantin Hillside (173 units), 8 Wai Yin Path, Hung Hom • Saleable area of approximately 128,000 sq. ft. • In close proximity to Ho Man Tin MTR station of the Kwun Tong Line Extension and the Shatin to Central Link • Occupation permit and certificate of co
Slide 17: Project Under Development in Hong Kong
Project Under Development in Hong Kong Le Cap and La Vetta, Kau To, Shatin • Two low-density luxury residential projects at peak of Kau To Shan • Combined gross floor area of approximately 460,000 sq. ft. • Superstructure work underway • Projects scheduled for completion in 2017 17
Slide 18: Project Under Development in Hong Kong – Cont'd
Project Under Development in Hong Kong – Cont’d Shau Kei Wan • Prime harbour-front residential site • Gross floor area of approximately 46,000 sq. ft. • Superstructure work commenced • Project scheduled for completion in 2018 18
Slide 19: Project Under Development in Hong Kong – Cont'd
Project Under Development in Hong Kong – Cont’d Siu Sau, 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 19
Slide 20: Project Under Development in Hong Kong – Cont'd
Project Under Development in Hong Kong – Cont’d So Kwun Wat Road, Tuen Mun • Gross floor area of approximately 264,000 sq. ft. • Earmarked for medium-density residential development • Ground investigation work completed and tender for foundation work in progress • Project scheduled for completion in
Slide 21: Project Under Development in Hong Kong – Cont'd
Project Under Development in Hong Kong – Cont’d Castle Peak Road, Tai Lam, Tuen Mun • Acquired in June 2016 • Gross floor area of approximately 294,000 sq. ft. • Earmarked for medium-density residential development • Ground investigation work commenced • Project scheduled for completion in 2022 21
Slide 22: Property Investment & Management
Property Investment & Management 22
Slide 23: Investment Portfolio in Hong Kong
Investment Portfolio in Hong Kong Gross floor area Occupancy as at (’000 sq. ft.) 31 December 2016 Landmark East (AIA Kowloon Tower/ 1,338 93% Grade A AXA Tower) Offices W Square 129 100% Winner Godown Building 497 Industrial 86% Properties Shui Hing Centre 187 • As at 31 December 2016, the Group’s
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 Commercial Property at Brook Street, West End • Net internal area of approximately 19,000 sq. ft. of Grade A office and retail
Slide 25: Investment Portfolio in London – Cont'd
Investment Portfolio in London – Cont’d Commercial Property at Fleet Place, the City • Group’s interest of 25% • Net internal area of approximately 186,000 sq. ft. of Grade A office and retail space • Achieved full occupancy Commercial Property at Cavendish Square, West End • Acquired in January 201
Slide 26: Hospitality Investment & Management
Hospitality Investment & Management 26
Slide 27: 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 Hotel • Group’s interest: 100% • No. of rooms: 194 Chengdu Shanghai Lanson Place Lifestyle Services • Location: H
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 Lanson Place Tianfu Square Lanson Place Jin Qiao Serviced Residences Serviced Residences • No. of units: 162 • No. of units: 102 • Location: Chengdu
Slide 29: Hospitality Investment and Management
Hospitality Investment and Management • In February 2016, a new 10-year management contract was signed to manage a serviced residence project of 213 units at Two MacDonnell Road, Mid-Levels, Hong Kong. • In July 2016, the contract for managing Lanson Place Jinlin Tiandi Serviced Residences in Puxi,
Slide 30: 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$100 million un
Slide 31: Future Plans & Strategies
Future plans & strategies
Slide 32: Future Plans & Strategies
Future Plans & Strategies In near term In mid-to-long term Property • Capture favourable windows of • Taking advantage of public land Development opportunity to launch Le Cap and La tender programme and private treaty Vetta in Kau To, and continue the for development properties, be they sales of rem
Slide 33: 2016 Results Highlights
2016 Results highlights
Slide 34: Financial Results Summary
Financial Results Summary For the year ended 31 December (HK$’M) 2016 2015 Revenue 1,103.3 1,009.2 9% Gross profit 824.2 744.9 11% Change in fair value of investment properties and 709.6 704.7 1% financial instruments Profit from operations 1,222.5 1,203.7 2% Share of results of joint ventures/assoc
Slide 35: Segment Results Overview
Segment Results Overview For the year ended 31 December (HK$’M) 2016 2015 Property Development Revenue 213.2 149.2 43% Profit before taxation 50.7 44.2 15% Property Investment & Management Revenue 737.2 690.9 7% Fair value changes in investment properties and 733.0 791.2 7% financial instrum
Slide 36: Balance Sheet Summary
Balance Sheet Summary 31 December 31 December (HK$’M) 2016 2015 Total assets 30,776.1 28,220.9 9% Net assets 24,312.1 23,347.3 4% Equity attributable to equity holders of the 24,308.6 23,346.3 4% company Investment properties 21,972.1 21,448.8 2% Properties for sale 3,489.7 1,295.6 169% Bank balance
Slide 37: Balance Sheet Summary – Cont'd
Balance Sheet Summary – Cont’d 31 December 31 December (HK$’M) 2016 2015 Total borrowings 5,184.8 3,766.3 38% Net borrowings 3,502.0 1,692.1 107% Gearing ratio 14.4% 7.2% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 477 9% 440 12% Between one and two years
Slide 38: Appendix
joie S20 APPENDIX
Slide 39: Investment Thesis
Investment Thesis A credible and integrated property player in Hong Kong with a balanced and growing 1 development and investment portfolio spanning the region and beyond Strong track record in developing luxury and quality residential properties 2 at premium values Owns a diversified portfolio of h
Slide 40: Five Years' Financial Summary
Five Years’ Financial Summary 2012 2016 2015 2014 2013 (Restated) HK$’M HK$’M HK$’M HK$’M HK$’M RESULTS Continuing operations revenue 1,103.3 1,009.2 1,783.5 1,736.2 891.7 Profit before taxation from continuing operations 1,260.4 1,182.3 2,033.1 2,746.2 4,612.1 Taxation (111.2) (83.2) (89.5) (91.4)
Slide 41: Five Years' Financial Summary – Cont'd
Five Years’ Financial Summary – Cont’d As at 31 December 2012 2016 2015 2014 2013 (Restated) HK$’M HK$’M HK$’M HK$’M HK$’M ASSETS AND LIABILITIES Total assets 30,776.1 28,220.9 27,527.8 26,705.1 23,578.1 Total liabilities (6,464.0) (4,873.6) (4,847.6) (5,809.9) (5,216.3) Non-controlling interests (3