Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — FY2018 Earnings Presentation
43 slides from Wing Tai Properties's earnings presentation, 2019
Slide 1: Wing Tai Properties Limited Annual Results 2018
Wing Tai Properties Limited 永泰地產有限公司 Annual Results 2018
Slide 2: Agenda
Agenda A Snapshot of 2018 • Key Achievements • Sustainable Growth • Land Bank Business Review • Property Development • Property Investment & Management • Hospitality Investment & Management • Strengthened Capital Structure Future Plans & Strategies 2018 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 2018
A Snapshot of 2018
Slide 5: Key Achievements
KEY ACHIEVEMENTS • We focus on building 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
Slide 6: Key Achievements – cont'd
KEY ACHIEVEMENTS – cont’d • We now have a bigger investment portfolio in London upon the acquisition of 30 Gresham Street in December 2018. This represents our sixth commercial property in this capital city of the United Kingdom. • In Hong Kong, we have cemented a good presence in both the tradition
Slide 7: Sustainable growth
Sustainable growth HK$’M Total Equity 29,000 27,000 25,000 23,000 21,000 19,000 17,000 15,000 2012 2013 2014 2015 2016 2017 2018 • 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 2 3 14 4 3 Tuen Mun 497, So Kwun Wat 5 Road, Tuen Mun 6 4 5 Castle Peak Road, Tai Lam, 6 Tuen Mun Gage Street/Graham Street, 7 Central 9 2 8 8 Landmark East 10 7 11 9 Shui Hing Centre 10 11 Waterfront Suites Development properties Investment properti
Slide 9: Land Bank (as at 31 December 2018)
Land Bank (as at 31 DECEMBER 2018) Strategic land bank with focus on Hong Kong Land Bank Overview (sq. ft.) Prope rty De ve lopment 32% Inve stment Property 68% Valuation as at Attributable Hong Kong London Others Total 31 December 2018 Gross Floor Area / Saleable Area (’000 sq. ft.) (’000 sq. ft.)
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 2018) A sustainable and scalable project pipeline Available Estimated Completion Saleable Area / Property Development Portfolio Gross Beyond Group’s 2020 2021 2022 Floor Area 2022 Interest (’000 sq. ft.) Hong Kong Completed Le Cap* 111 35% Developmen
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) and Providence Peak (548 units): approximately 99% of the residential units have been sold • The Graces (193 units): all the residential units have been sold 13
Slide 14: 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. • All of the residential units have been sold 14
Slide 15: Completed Development in Hong Kong – Le Cap
Completed Development in Hong Kong – cont’d Le Cap (69 units), Kau To, Shatin • Low-density luxury residential project at peak of Kau To Shan • Saleable area of approximately 142,800 sq. ft. • Certificate of compliance obtained in March 2018 • In 2018, approximately 25% of the residential units were
Slide 16: Completed Development in Hong Kong – La Vetta
Completed Development in Hong Kong – cont’d La Vetta (158 units), Kau To, Shatin • Low-density luxury residential project • Saleable area of approximately 321,000 sq. ft. • Certificate of compliance obtained in September 2018 • In 2018, approximately 9% of the residential units were sold since sales
Slide 17: Project Under Development in Hong Kong – The Carmel
Project Under Development in Hong Kong – cont’d The Carmel (178 units), Siu Sau, Tai Lam, Tuen Mun • Saleable area of approximately 147,000 sq. ft. • Earmarked for low-density residential development • Pre-sale consent obtained in November 2018 • Pre-sale launched in January 2019, with around 76% of
Slide 18: Project Under Development – So Kwun Wat Road
Project Under Development in Hong Kong – cont’d Tuen Mun 497, So Kwun Wat Road, Tuen Mun • Gross floor area of approximately 264,000 sq. ft. • Earmarked for medium-density residential development • Superstructure work has commenced • Project scheduled for completion in 2021 18
Slide 19: Project Under Development – Castle Peak Road
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 • Foundation work and site formation work in progress • Project scheduled for completion in 2022 19
Slide 20: Commercial Complex at Gage Street/Graham Street
Project Under Development in Hong Kong – cont’d Commercial Complex 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 part of
Slide 21: Property Investment & Management
Property Investment & Management 21
Slide 22: Investment Portfolio in Hong Kong
Investment Portfolio in Hong Kong Gross floor area Occupancy as at (’000 sq. ft.) 31 December 2018 Landmark East Grade A (AIA Kowloon Tower/ 1,338 93% Offices AXA Tower) Industrial Shui Hing Centre 187 95% Properties • In January 2018, the Group disposed of its entire interest in W Square, an office
Slide 23: 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 on Brook Street, West End • Net internal area of approximately 19,000 sq. ft. of Grade A office and retail
Slide 24: Investment Portfolio in London – cont'd
Investment Portfolio in London – cont’d Commercial Property on Fleet Place, the City • Group’s interest of 25% • Net internal area of approximately 192,000 sq. ft. of Grade A office and retail space • Achieved 94% occupancy Commercial Property at Cavendish Square, West End • Group’s interest of 33%
Slide 25: Investment Portfolio in London – cont'd
Investment Portfolio in London – cont’d Commercial Property at Gresham Street, the City • Acquired in December 2018 • 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 • Achieved 100% occupancy 25
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 31 December 2018, approximately 97% of the units were leased 26
Slide 27: Hospitality Investment & Management
Hospitality Investment & Management 27
Slide 28: 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 Hotel, Hong Kong • Group’s interest: 100% • 194 units Waterfront Suites, Shanghai Chengdu Hong Kong • Gr
Slide 29: Hospitality Portfolio – cont'd
Hospitality Portfolio – cont’d Lanson Place Properties – Management Tianfu Square, Chengdu Jin Qiao, Shanghai 162 units 102 units Aroma Garden, Shanghai Two MacDonnell Road, Chengdu Shanghai Hong Kong 79 units 213 units One Sunland, Shanghai Hong Kong 188 units Ambassador Row, Kuala Lumpur 221 units
Slide 30: Hospitality Investment and Management
Hospitality Investment and Management • Lanson Place has signed a new 10-year management contract to manage a brand new luxurious serviced apartment project in Melbourne, which is scheduled for completion in 2022. This marks Lanson Place’s first property in Australia. • Lanson Place currently manage
Slide 31: Hospitality Investment and Management – cont'd
Hospitality Investment and Management – cont’d Awards and recognitions (cont’d): ➢ Ambassador Row, Kuala Lumpur: ❖ “Business Hotel of the Year 2018 (Malaysia)” at Travel and Hospitality Awards 2018 ➢ Bukit Ceylon, Kuala Lumpur: ❖ “Aparthotel of the Year 2018” at Travel and Hospitality Awards 2018 ❖
Slide 32: 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$10
Slide 33: Future plans & strategies
Future plans & strategies
Slide 34: Future Plans & Strategies
Future Plans & Strategies In near term In mid-to-long term Property • Focus on further phases of sales • Taking advantage of public land tender Development launches of Le Cap and La Vetta as well programme and private treaties for as pre-sale of The Carmel while eyeing development properties, be the
Slide 35: 2018 Results Highlights
2018 RESULTS HIGHLIGHTS _
Slide 36: Financial Results Summary
Financial Results Summary For the year ended 31 December (HK$’M) 2018 2017 Revenue 884.7 1,064.3 17% Gross profit 709.4 827.8 14% Change in fair value of investment properties and 253.5 882.5 71% financial instruments Profit from operations 1,323.5 2,031.5 35% Share of results of joint ventures/asso
Slide 37: Segment Results Overview
Segment Results Overview For the year ended 31 December (HK$’M) 2018 2017 Property Development ➢ Revenue 32.2 139.5 77% ➢ (Loss)/Profit before taxation (33.8) 44.2 176% Property Investment & Management ➢ Revenue 674.3 775.5 13% ➢ Fair value changes in investment properties and financial 256.7 822.1
Slide 38: Balance Sheet Summary
Balance Sheet Summary 31 December 30 December (HK$’M) 2018 2017 Total assets 35,427.7 35,496.1 0% Net assets 28,721.9 27,809.9 3% Equity attributable to shareholders of the company 27,201.3 26,289.9 3% Investment properties (including assets 20,459.4 21,442.1 5% classified as held for sale) Properti
Slide 39: Balance Sheet Summary – cont'd
Balance Sheet Summary – cont’d 31 December 31 December (HK$’M) 2018 2017 Total borrowings 5,034.5 6,184.1 19% Net borrowings 2,160.9 5,529.9 61% Gearing ratio 7.5% 19.9% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 1,295 26% 1,402 23% Between one and two y
Slide 40: Appendix
appendix
Slide 41: Investment Thesis
Investment Thesis A credible and integrated property player in Hong Kong with a balanced and well-diversified 1 development and investment portfolio spanning the region and beyond Strong track record in developing luxury and quality residential properties 2 at premium values Owns a diversified portf
Slide 42: Five Years' Financial Summary
Five Years’ Financial summarY Full Year Results 2018 2017 2016 2015 2014 (HK$’M) (Note) RESULTS Revenue 884.7 1,064.3 1,103.3 1,009.2 1,783.5 Profit before taxation 1,432.3 2,101.0 1,260.4 1,182.3 2,033.1 Taxation (52.8) (98.6) (111.2) (83.2) (89.5) Profit for the year 1,379.5 2,002.4 1,149.2 1,099.
Slide 43: Five Years' Financial Summary – cont'd
Five Years’ Financial summarY – cont’d As at 31 December 2018 2017 2016 2015 2014 (HK$’M) ASSETS AND LIABILITIES Total assets 35,427.7 35,496.1 30,776.1 28,220.9 27,527.8 Total liabilities (6,705.8) (7,686.2) (6,464.0) (4,873.6) (4,847.6) Total equity 28,721.9 27,809.9 24,312.1 23,347.3 22,680.2 43