Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — H1 2017 Earnings Presentation
42 slides from Wing Tai Properties's earnings presentation, 2017
Slide 1: Interim Results 2017
WING TAI PROPERTIES LIMITED 永泰地產有限公司 INTERIM RESULTS 2017
Slide 2: Agenda
Agenda A Snapshot of 1H 2017 • Key Achievements • Sustainable Growth • Land Bank Business Review • Property Development • Property Investment & Management • Hospitality Investment & Management • Strengthened Capital Structure Future Plans & Strategies 2017 Interim 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 1H 2017
y y HOT OF 1H 201 SNAPS A
Slide 5: Key Achievements
Key Achievements • We focus on growing a portfolio that offers a solid base of predictable, recurring revenue from the investment/hospitality properties we own and manage, balanced by our premium residential developments that provide outperformance driven by dedicated management. This consistent str
Slide 6: Key Achievements – cont’d
Key Achievements – cont’d • Our investment property portfolio in Hong Kong and Central London proved resilient in terms of occupancy and average rental rates. Backed by a strong and quality tenant profile and proactive asset enhancement initiatives, the portfolio is set to heighten its rental and ca
Slide 7: Sustainable Growth
Sustainable Growth HK$’M Shareholders’ Equity 25,000 23,000 21,000 19,000 17,000 15,000 2012 2013 2014 2015 2016 1H 2017 • 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 Warren 2 3 4 24 5 Siu Sau, Tai Lam, Tuen Mun 4 6 Shau Kei Wan 8 7 12 5 So Kwun Wat Road, 7 Tuen Mun 8 Castle Peak Road, Tai Lam, 11 Tuen Mun 3 9 9 Landmark East 13 10 1 6 10 W Square 11 Shui Hing Centre 12 Winner Godown Building 13 Development pr
Slide 9: Land Bank (as at 30 June 2017)
Land Bank (as at 30 June 2017) 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 30 June 2017 Gross Floor Area / Saleable Area (’000 sq. ft.) (’000 sq. ft.) (’00
Slide 10: Business Review
Business Review
Slide 11: Property Development
Property Development 11
Slide 12: Sales and Development Pipeline (as at 30 June 2017)
Sales and Development Pipeline (as at 30 June 2017) A sustainable and scalable residential project pipeline Available Presold Estimated Completion Property Development Gross Gross 2020 - Group’s Portfolio Floor Area Floor Area 2017 2018 2019 2022 Interest (’000 sq. ft.) (’000 sq. ft.) Hong Kong Prov
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 97% of the residential units have been sold • Providence Peak (548 units): approximately 99% 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 Of which, around 3% were sold in 1H 2017 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 Of which, around 1% was sold in 1H 2017 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 future Shatin to Central Link • Approximately 94% of the residen
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. • Occupation permit of Le Cap obtained in July 2017 • Superstructure work of La Vetta in progre
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. • Pre-sale consent obtained in July 2017 • Superstructure work in progress • 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 in progress • 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 • Foundation work and site formation work commenced • Project scheduled for completion in 2021 20
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 • 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.) 30 June 2017 Landmark East (AIA Kowloon Tower/ 1,338 94% Grade A AXA Tower) Offices W Square 129 94% Winner Godown Building 497 Industrial 87% Properties Shui Hing Centre 187 • As at 30 June 2017, the Group’s portfolio
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 • Group’s interest of 33%
Slide 26: Investment Portfolio in Beijing
Investment Portfolio in BEIJING Central Park, 6 Chaoyangmenwai Avenue, Chaoyang District • 33 units • Gross floor area of approximately 6,200 sq. m. • As at 30 June 2017, achieved occupancy of approximately 79% As at 30 August 2017, all units were leased 26
Slide 27: Hospitality Investment & Management
Hospitality Investment & Management 27
Slide 28: Hospitality Portfolio
Hospitality Portfolio 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 Shanghai • Location: Hong Kong Chengdu Lanson Place Lifestyle Services
Slide 29: 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 – Management Tianfu Square Serviced Suites Lanson Place Jin Qiao by Lanson Place Serviced Residences • No. of units: 162 • No. of units: 102 • Location:
Slide 30: Hospitality Investment and Management
Hospitality Investment and Management • Lanson Place currently manages nine third-party serviced residences, of which five are in Shanghai • Other serviced residences are located in Hong Kong, Singapore, Kuala Lumpur and Chengdu • Tianfu Square Serviced Suites by Lanson Place, located at the main fi
Slide 31: Solid Capital Structure
Solid Capital Structure August 2017 November 2012 January 2013 May 2013 August 2014 October 2014 November 2014 Seventh First Second Third Fourth Fifth Sixth drawdown of drawdown of drawdown of drawdown of drawdown of drawdown of drawdown of S$160 million S$170 million HK$480 million HK$100 million H
Slide 32: Future plans & strategies
Future plans & strategies
Slide 33: Future Plans & Strategies
Future Plans & Strategies In near term In mid-to-long term Property • Capture right market window to • Taking advantage of public land Development launch Le Cap at the peak of Kau To tender programme and private treaty Shan, and continue the sales of for development properties, be they remaining uni
Slide 34: 2017 Interim Results Highlights
2017 interim Results highlights
Slide 35: Financial Results Summary
Financial Results Summary For the six months ended 30 June (HK$’M) 2017 2016 Revenue 545.8 468.0 17% Gross profit 407.4 376.0 8% Change in fair value of investment properties and 254.1 162.1 57% financial instruments Profit from operations 480.9 398.2 21% Share of results of joint ventures/associate
Slide 36: Segment Results Overview
Segment Results Overview For the six months ended 30 June (HK$’M) 2017 2016 Property Development Revenue 94.0 26.4 256% Profit/(loss) before taxation 9.4 (31.6) 130% Property Investment & Management Revenue 381.2 365.7 4% Fair value changes in investment properties and 229.9 173.7 32% financ
Slide 37: Balance Sheet Summary
Balance Sheet Summary 30 June 31 December (HK$’M) 2017 2016 Total assets 31,521.9 30,776.1 2% Net assets 24,700.2 24,312.1 2% Equity attributable to equity holders of the 24,695.7 24,308.6 2% company Investment properties 22,290.0 21,972.1 1% Properties for sale 3,607.0 3,489.7 3% Bank balances and
Slide 38: Balance Sheet Summary – cont’d
Balance Sheet Summary – cont’d 30 June 31 December (HK$’M) 2017 2016 Total borrowings 5,362.2 5,184.8 3% Net borrowings 3,094.7 3,502.0 12% Gearing ratio 12.5% 14.4% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 354 7% 477 9% Between one and two years 807 1
Slide 39: Appendix
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Slide 40: Investment Thesis
Investment Thesis A credible and integrated property player in Hong Kong with a balanced and well-diversified 1 development and investment portfolio spanning the region and beyond Strong track record in developing luxury and quality residential properties 2 at premium values Owns a diversified portf
Slide 41: Five Years’ Financial Summary
Five Years’ Financial Summary Interim Results Full Year Results 1H 2017 1H 2016 2016 2015 2014 2013 2012 (HK$’M) (Restated) RESULTS Continuing operations revenue 545.8 468.0 1,103.3 1,009.2 1,783.5 1,736.2 891.7 Profit before taxation from continuing operations 504.3 358.1 1,260.4 1,182.3 2,033.1 2,
Slide 42: Five Years’ Financial Summary – cont’d
Five Years’ Financial Summary – cont’d As at 30 June As at 31 December 1H 2017 2016 2015 2014 2013 2012 (HK$’M) (Restated) ASSETS AND LIABILITIES Total assets 31,521.9 30,776.1 28,220.9 27,527.8 26,705.1 23,578.1 Total liabilities (6,821.7) (6,464.0) (4,873.6) (4,847.6) (5,809.9) (5,216.3) Non-contr