Slide 1: Q1 2017 Results Presentation
Q1 2017 RESULTS PRESENTATION 11 May 2017
Slide 2: Agenda
AGENDA • EXECUTIVE SUMMARY • FINANCIAL HIGHLIGHTS • SINGAPORE OVERVIEW • INTERNATIONAL OVERVIEW • HOTEL OPERATIONS
Slide 3: Executive Summary
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Slide 4: Key Highlights
Key Highlights Creditable financial metrics at Group level despite challenging environment: – Revenue: $783.8 million (Q1 2016: $723.3 million), 8.4% increase – EBITDA: $186 million (Q1 2016: $205 million), 9.1% decrease – PATMI: $85.5 million (Q1 2016: $105.3 million), 18.9% decrease Lower EBIT
Slide 5: Financial Performance in a Challenging Environment
Financial Performance in a Challenging Environment Summary of Financial Results Q1 Q1 % 2017 2016 Change Revenue ($m) 784 723 8.4 PATMI ($m) 85 105 (18.9) Basic Earnings Per Share (cents) 9.4 11.6 (19.0) NAV Per Share ($) 10.23 9.85 3.9 Return on Equity (%) 0.91 1.18 (0.3) pts No fair values adopted
Slide 6: Portfolio Composition – Q1 2017
Portfolio Composition – Q1 2017 Recurring Income Segments Property Hotel Rental S$ million Others Total Funds Development Operations Properties EBITDA * Local 48 16 42 (1) 105 Overseas 42 25 14 - 81 90 41 56 (1) 186 Total Assets ^ Local 6,314 663 3,259 248 10,484 AUM = Overseas 3,053 4,736 975 237 9
Slide 7: Portfolio Composition – Q1 2017
Portfolio Composition – Q1 2017 EBITDA Total Assets Local Overseas Local Overseas 56% 44% 54% 46% • Stability from Recurring Income segments comprising 52% of EBITDA / 52% of Total Assets (excluding tax recoverable and deferred tax asset) • De-risking Singapore exposure via growing international seg
Slide 8: Diversified Land Bank
Diversified Land Bank Land Area (as of 31 Mar 2017) – CDL’s Attributable Share Type of Development Land Area (sq ft) Singapore International Total % Residential 507,333 1,948,591 2,455,924 91 Commercial / Hotel 20,886 226,273 247,159 9 Total 528,219 2,174,864 2,703,083 100 Proposed GFA (sq ft) Count
Slide 9: Strategic Acquisitions in 2017
Strategic Acquisitions in 2017 Approx. $770 million Deployed in Singapore and Overseas* China: UK: RMB 72 million £58 million Investment for Acquisition of 1.6 acre 24% equity stake Ransomes Wharf site in Distrii, China’s in Battersea, leading co-working South West London space operator Artist’s Imp
Slide 10: Share Price Performance
Share Price Performance Strong Performance for 2017 to date 29.7% in share price since Jan 2017* • Q1 Close - $10.20 $10.78 (31 Mar) PERIOD HIGHEST CLOSE (9 May) (↑ 22.7% from 3 Jan) • Highest Close - $10.89 (2 May) $10.20 (31 Mar) (↑ 31.0% from 3 Jan) $8.31 (3 Jan) • Lowest Close - $8.31 PERIOD LOW
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 12: Financial Highlights – Segment Financial Results
Financial Highlights Segment Financial Results Revenue Profit Before Tax Q1 Q1 Incr/ Q1 Q1 Incr/ 2017 2016 (Decr) 2017 2016 (Decr) $M $M % $M $M % Property Development 299.1 223.3 33.9 81.9 76.5 7.1 Hotel Operations 366.5 359.4 2.0 4.8 10.8 (55.6) (include CDL owned hotels) Rental Properties 85.2 93
Slide 13: Revenue by Segment for Q1 (2015 – 2017)
Financial Highlights Revenue by Segment for Q1 (2015 – 2017) 600 $784m $723m $815m 500 376 400 367 360 299 299 $ million 300 223 200 85 99 93 100 33 47 41 0 Q1 2017 Q1 2016 Q1 2015 Property Development Hotel Operations Rental Properties Others Q1 2017 Q1 2016 Q1 2015 Property Development 38% 31% 37%
Slide 14: Profit Before Tax by Segment for Q1 (2015 – 2017)
Financial Highlights Profit Before Tax by Segment for Q1 (2015 – 2017) 140 $115m $138m $169m 120 98 100 82 77 $ million 80 60 41 34 37 40 28 20 5 11 9 - - 0 Q1 2017 Q1 2016 Q1 2015 Property Development Hotel Operations Rental Properties Others Q1 2017 Q1 2016 Q1 2015 Property Development 72% 56% 58%
Slide 15: EBITDA by Segment for Q1 (2015 – 2017)
Financial Highlights EBITDA by Segment for Q1 (2015 – 2017) $186m $205m $239m 120 103 100 90 77 80 68 65 68 $ million 56 60 44 41 40 16 20 3 0 (20) (1) Q1 2017 Q1 2016 Q1 2015 Property Development Hotel Operations Rental Properties Others Q1 2017 Q1 2016 Q1 2015 Property Development 48% 38% 43% Hote
Slide 16: Robust Balance Sheet
Financial Highlights Robust Balance Sheet As at 31/03/17 As at 31/12/16 Gross borrowings $5,594m $5,752m Cash and cash equivalents (include restricted deposits of $214m classified in other non-current $3,719m $3,887m assets) Net borrowings $1,875m $1,865m Net gearing ratio without taking in fair val
Slide 17: Prudent Capital Management
Financial Highlights Prudent Capital Management Debt Expiry Profile Debt Maturity Within 1 year 2,000 26% Debt $ million Bond Bank Loan 38% 1 to 2 years 1,500 - 320 2 to 3 years 1,000 1,279 290 431 255 23% More than 3 500 years 950 13% 477 486 640 466 0 - 2017 2018 2019 2020 2021 2022 onwards Debt C
Slide 18: Singapore Overview
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Slide 19: Singapore Property Market
Singapore Property Market Property Price Index – Residential (2012 – Q1 2017) All Residential 180 160 Q4 16 Q1 17 137.2 136.7 140 120 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 Source : URA, Q1 2017 19
Slide 20: Singapore Property Development – Residential Units Sold
Singapore Property Development Residential Units Sold Sales Value* No. of Total $’000 Units* Area Sold (sq ft) Q1 2017 $ 477,096 293 319,762 Q1 2016 $ 145,809 145 145,840 * Includes share of JV partners 20
Slide 21: Gramercy Park – Positive Sales Momentum
Singapore Property Development Gramercy Park – Positive Sales Momentum Project Location Tenure Equity Total Total Units % Total Saleable Stake Units Sold* Sold Area (sq ft) Gramercy Park Grange Road Freehold 100% 174 90 84# 368,743 Phase 1 (North Tower) – 85% sold: 74 units sold at average of over
Slide 22: Forest Woods – Strong Uptake
Singapore Property Development Forest Woods – Over 420 units sold Project Location Tenure Equity Total Total Units % Total Saleable Expected Stake Units Sold* Sold* Area (sq ft) TOP Forest Woods Lorong 99-year 50% 519 426 82 431,265 2021 Lew Lian leasehold Strong Uptake – 82% Sold: Achieved averag
Slide 23: Upcoming Residential Project Launch for 2H 2017
Singapore Property Development Upcoming Residential Project Launch for 2H 2017 (Subject to market conditions) Project Location Tenure Equity Total Gross Floor Area Expected Stake Units (sqm) TOP New Futura Leonie Hill Road Freehold 100% 124 23,066 2017 Designed by world-renowned architect firm, SO
Slide 24: Inventory of Launched Residential Projects
Singapore Property Development Inventory of Launched Residential Projects – As of 31 Mar 2017 Equity Total Units Total Unsold CDL’s Share of Project % Sold Stake Units Sold Inventory Unsold Inventory St. Regis Residences 33% 173 161 93% 12 4 The Oceanfront @ Sentosa Cove 50% 264 263 99% 1 0.5 One Sh
Slide 25: Disciplined Pricing for Site Acquisitions
Disciplined Pricing for Site Acquisitions Residential Site at Tampines Avenue 10 Winning bidder for site via Government Land Sales (GLS) programme, awarded in May 2017 Tightly contested tender with 9 bids – CDL’s bid topped second-highest bid by 5.7% Excellent connectivity: Near Tampines Hub a
Slide 26: Singapore Commercial Market
Singapore Commercial Market Property Price Index – Commercial (2012 – Q1 2017) 145 Office Retail 140 Q4 16 134.7 135 Q1 17 130 129.3 Q4 16 125 122.6 120 Q1 17 117.7 115 110 105 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16
Slide 27: Singapore Office Market
Singapore Office Market Office Space Demand & Supply (2012 – Q1 2017) Private & Public Sector Cumulative Supply Occupancy 83,539 85,000 81,300 83,206 80,095 81,365 78,254 80,000 72,980 73,647 73,938 73,873 75,000 72,205 70,913 70,000 65,000 60,000 55,000 CDL’s Office Properties 50,000 Occupancy 45,0
Slide 28: Singapore Retail Market
Singapore Retail Market Retail Space Demand & Supply (2012 – Q1 2017)* Private & Public Sector Cumulative Supply Occupancy 66,000 65,079 64,767 64,271 64,000 63,658 62,000 61,333 60,052 59,955 60,192 59,632 59,751 60,000 58,599 58,000 57,060 56,000 CDL’s Retail Properties Occupancy 54,000 96.8%* (Na
Slide 29: Asset Enhancement Initiatives for Office Properties
Singapore Rental Properties Asset Enhancement Initiatives (AEI) for Office Properties Reposition Properties for Rental Growth: Tenants continue to take advantage of favourable market conditions to lock in renewals well ahead of their lease expiries During this lull period, the Group is actively
Slide 30: Asset Enhancement Initiative for Le Grove Serviced Apartments
Singapore Residential Leasing Asset Enhancement Initiative for Le Grove Serviced Apartments Project Location Tenure Equity Total Average Unit Approx. Approx. Expected Stake Units Size (sqm) GFA (sqm) NLA (sqm) Completion Orange Grove Le Grove Freehold 100% 173 46 12,400 8,300^ Q2 2018 Road Closure s
Slide 31: South Beach
South Beach Office & Retail Space Fully Leased South Beach Tower & South Beach Avenue 510,000 sq ft office block and retail space are fully leased JW Marriott Hotel Singapore South Beach Grand Opening of rebranded hotel in Mar 2017 Business performance is ramping up well Five F&B outlets and
Slide 32: International Overview
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Slide 33: Projects Launched To Date
International Property Development Projects Launched To Date* Project City Equity Total Total % Est. Total Expected Stake Units Units Sold Sold Saleable Area Completion / Booked (sq ft) Australia Ivy and Eve Brisbane 33%# 472 450 95 348,678 1H 2018 China Hong Leong City Center Suzhou 100% 1,374 1,06
Slide 34: Unlaunched Residential Projects
International Property Development Unlaunched Residential Projects Project City Tenure Equity Total Est. Total Saleable Area / Expected Stake Units GFA^ / Site Area+ (sq ft) Completion China Huang Huayuan Chongqing 50-year lease 100% >600 1,041,589 TBC UK Belgravia London Freehold 100% 6 12,375 Q2 2
Slide 35: Australia & Japan – Good Progress on Launched Projects
International Property Development Australia & Japan – Good Progress on Launched Projects Brisbane – Ivy and Eve Tenure Equity Total Total Units % Expected Stake Units Sold* Sold Completion Freehold 33%# 472 450 95 1H 2018 Approx. 95% of project sold to date Completion in early 2018 Ivy and Eve,
Slide 36: China – Healthy Sales for Launched Projects
International Property Development China – Healthy Sales for Launched Projects Suzhou – Hong Leong City Center (丰隆城市中心) Tenure Equity Total Total Units % Expected Stake Units Sold* Sold Completion 70 years 100% 1,804 1,248 69 Completed (Phase 1) Q2 2018 (Phase 2) Profit to be recognised progressiv
Slide 37: International Investment Platforms
International Investment Platforms Strategic Investments in Synergistic New Economy Sectors – RMB 172 million to date mamahome – China’s Fast-Growing Online Apartment Rental Platform Acquired 20% equity stake for RMB 100 million in Sep 2016 Over 164,858 apartment listings spanning over 41 cities
Slide 38: China – Acquired Shanghai Commercial Project
International Rental Properties China – Acquired Shanghai Commercial Project for RMB 900 million in Feb 2017 Meidao Business Plaza, Shanghai Tenure Equity Stake Est. Total GFA (sqm) Expected Completion 50-year lease 100% 32,300 2H 2017 Purchase of a 100% equity stake in Shanghai Meidao Investment
Slide 39: UK – Upcoming Launches in Q2 2017
International Property Development UK – Upcoming Launches in Q2 2017 Project Tenure Equity Total Est. Total Saleable Expected Stake Units Area (sq ft) Completion Belgravia Freehold 100% 6 12,375 Q2 2017 Knightsbridge Freehold 100% 3 5,193 Q2 2017 Completion in Q2 2017 Projects to be launched aft
Slide 40: UK – Upcoming Launches in 2H 2017
International Property Development UK – Upcoming Launches in 2H 2017 Teddington Riverside, Teddington TW11 Tenure Equity Total Est. Total Saleable Expected Stake Units Area (sq ft) Completion Freehold 100% 220 240,000 2018 (Phased) Works on basement car park in advanced stage Initial launch plan
Slide 41: UK – Pipeline Projects
International Property Development UK – Pipeline Projects 28 Pavilion Road, Knightsbridge, London SW1 Tenure Equity Stake Total Units Est. GFA (sq ft) Freehold 100% 34 135,000 Planning consent received for redevelopment into a 34-unit luxury care home Demolition works to commence in Q3 2017 Pavi
Slide 42: UK – Pipeline Commercial / Mixed-Use Projects
International Property Development UK – Pipeline Commercial / Mixed-Use Projects Development House, Leonard Street in Shoreditch Tenure Equity Stake Est. Total Lettable Area (sq ft) Freehold 100% 90,000 sq ft Planning application to be submitted in Q2 2017 Existing 28,000 sq ft building is fully
Slide 43: Hotel Operations
HOTEL OPERATIONS
Slide 44: M&C Hotel Operations – Trading Performance
M&C Hotel Operations Trading Performance Reported Constant Currency Currency Q1 2017 Q1 2016 Change Q1 2016 Change Revenue £223m £192m 16.1% £218m 2.3% Revenue (hotel) £191m £165m 15.8% £186m 2.7% Profit before tax * £13m £18m (27.8%) £21m (38.1%) PATMI * £3m £6m (50.0%) Increase in reported reven
Slide 45: M&C Hotel Operations – Trading Performance
M&C Hotel Operations Trading Performance RevPAR in reported currency and constant currency were up by 17.7% and 4.6% respectively for Q1 2017 as compared to the same period last year: Q1 2017 Reported Currency Constant Currency New York £111.16 ↑ 23.4% ↑ 7.0% Regional US £50.25 ↑18.2% ↑ 2.5% Total
Slide 46: M&C Hotel Operations – Developments
M&C Hotel Operations Developments – Progressing well Artist’s Impression Artist’s Impression Seoul, South Korea Sunnyvale, US Tender for the development is Adjusted the specification slightly in underway relation to the mixed use development of its 35,717 sqm freehold landsite Construction wor
Slide 47: M&C Hotel Operations – Asset Enhancement
M&C Hotel Operations Asset Enhancement Grand Millennium Kuala Lumpur Copthorne Hotel Auckland Harbour City Guestrooms at level 7 and level 8 will be Final stage of construction and will soft-open in Q3 2017 completed this year Will be rebranded as M Social Auckland Millennium Hotel Knightsbrid
Slide 48: Hotel Room Count and Pipeline
M&C Hotel Operations Hotel Room Count and Pipeline Hotels Rooms 31 Mar 31 Dec 31 Mar 31 Dec Hotel and Room Count 2017 2016 2017 2016 By region: ● New York 4 4 2,238 2,238 ● Regional US 15 15 4,559 4,559 ● London 8 8 2,651 2,651 ● Rest of Europe 19 19 3,081 3,081 ● Middle East * 28 26 8,759 7,805 Gra
Slide 49: CDL Hospitality Trusts – Trading Performance
CDL Hospitality Trusts Trading Performance Q1 2017 Q1 2016 S$’000 Change S$’000 S$’000 Gross Revenue 46,411 44,664 3.90% Net Property Income 35,872 33,710 6.40% (NPI) Gross revenue and NPI increased mainly due to: Higher contribution from New Zealand Hotel mainly due to higher variable rental inco
Slide 50: New Acquisition – Iconic Luxury Hotel in Manchester
CDL Hospitality Trusts New Acquisition – Iconic Luxury Hotel in Manchester for £52.5 million The Lowry Hotel – Manchester, UK Acquisition completed on 4 May 2017 – marks CDLHT’s second UK investment Property is a newly-furbished 5-star luxury hotel with 165 rooms and regularly ranked as a leadin
Slide 51: 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 52: www.cdl.com.sg
www.cdl.com.sg Gramercy Park, Singapore