Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — H1 2016 Earnings Presentation
43 slides from Wing Tai Properties's earnings presentation, 2016
Slide 1: Wing Tai Properties Limited Interim Results
WING TAI PROPERTIES LIMITED 永泰地產有限公司 Interim Results
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 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 2016
A Snapshot of 1H 2016
Slide 5: Key Achievements
Key Achievements • Focused on strengthening the three strategic pillars of our businesses – property development, property investment and management, and hospitality investment and management. Our diversified portfolio of residential, commercial and hospitality assets expanded further in Asia and be
Slide 6: Key Achievements – cont'd
Key Achievements – cont’d • Acquired a 33% interest in a West End office building in Central London in January 2016. Quality collection of a total of five premier investment properties in London provides secure, steadily growing recurring income beyond our traditional markets in Asia. • Continued to
Slide 7: 1H 2016 Sustainable Growth
1H 2016 Sustainable Growth HK$’M Shareholders’ Equity 25,000 20,000 15,000 10,000 5,000 0 2011 2012 2013 2014 2015 1H 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 Kau To, Shatin (two plots) 5 6 Siu Sau, Tuen Mun 9 8 13 6 7 Shau Kei Wan 12 8 So Kwun Wat, Tuen Mun 4 10 9 Castle Peak Road – Tai Lam 1 14 11 2 7 10 Landmark East 11 W Square 12 Shui Hing Centre 13 Winner Godown Build
Slide 9: Land Bank (as at 30 June 2016)
Land Bank (as at 30 June 2016) Strategic land bank with focus on Hong Kong Land Bank Overview (sq. ft.) Re side ntial De ve lopment 30% Inve stment Prope rty 70% Valuation as at Attributable Hong Kong China Others Total 30 June 2016 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 2016)
Sales and Development Pipeline (as at 30 June 2016) A sustainable and scalable residential project pipeline Available Presold Estimated Completion Property Development Gross Gross 2019 Portfolio Floor Area Floor Area Group’s 2017 2018 & (’000 sq. ft.) (’000 sq. ft.) Interest Beyond Hong Kong Provide
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 87% of the residential units have been sold • Providence Peak (548 units): approximately 94% 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 90% of the residential units have been sold 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 • Approximately 95% of the residential units have been sold 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 upcoming Ho Man Tin MTR station of the Kwun Tong Line Extension and the Shatin to Central Link • Approximately 54% of the resid
Slide 17: Completed Development in Shanghai
Completed Development in Shanghai Upper Riverside (97 units), Lujiazui, Shanghai • Located along the Huangpu River at Lujiazui, Pudong • Gross floor area of approximately 210,000 sq. ft. • Project completed in August 2015 • Subsequent to the end of the period under review, the Company’s interest in
Slide 18: Project Under Development in Hong Kong – Kau To, Shatin
Project Under Development in Hong Kong – Cont’d Kau To, Shatin • Two sites (STTL 567 & 565) at peak of Kau To Shan, acquired in August 2012 and January 2013 • Combined gross floor area of approximately 460,000 sq. ft. • Earmarked for low-density luxury residential development • Superstructure work u
Slide 19: Project Under Development in Hong Kong – Shau Kei Wan
Project Under Development in Hong Kong – Cont’d Shau Kei Wan • Prime harbour-front residential site acquired in April 2014 • Gross floor area of approximately 46,000 sq. ft. • Superstructure work commenced • Project scheduled for completion in 2018 19
Slide 20: Project Under Development in Hong Kong – Siu Sau
Project Under Development in Hong Kong – Cont’d Siu Sau, Castle Peak Road – 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 20
Slide 21: Project Under Development in Hong Kong – So Kwun Wat
Project Under Development in Hong Kong – Cont’d So Kwun Wat, So Kwun Wat Road, Area 56, Tuen Mun • Acquired in January 2016 • Gross floor area of approximately 264,000 sq. ft. • Earmarked for medium-density residential development • Ground investigation work kicked off • Project scheduled for comple
Slide 22: Project Under Development in Hong Kong – Castle Peak Road
Project Under Development in Hong Kong – Cont’d Castle Peak Road – Tai Lam, Tuen Mun • Acquired in July 2016 • Gross floor area of approximately 294,000 sq. ft. • Earmarked for medium-density residential development • Site in possession in July 2016 22
Slide 23: Property Investment & Management
Property Investment & Management 23
Slide 24: Investment Portfolio in Hong Kong
Investment Portfolio in Hong Kong Gross floor area Occupancy as at (’000 sq. ft.) 30 June 2016 Landmark East (AIA Kowloon Tower/ 1,338 98% Grade A AXA Tower) Offices W Square 129 96% Winner Godown Building 497 Industrial 83% Properties Shui Hing Centre 187 • As at 30 June 2016, the Group’s portfolio
Slide 25: 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 • Achieved full occupancy Commercial Property at Brook Street, West End • Net internal area of approximately 19,000 sq. ft. of
Slide 26: Investment Portfolio in London – Cont'd
Investment Portfolio in London – Cont’d Commercial Property at Berkeley Square, West End • Acquired in September 2015 • Net internal area of approximately 7,900 sq. ft. of office space • Achieved an occupancy of approximately 74% Commercial Property at Fleet Place, the City • Acquired in September 2
Slide 27: Investment Portfolio in London – Cont'd
Investment Portfolio in London – Cont’d Commercial Property at Cavendish Square, West End • Acquired in January 2016 • Group’s interest of 33% • Net internal area of approximately 11,000 sq. ft. of office space • With the planning consent to increase the net internal area to approximately 14,000 sq.
Slide 28: Hospitality Investment & Management
Hospitality Investment & Management 28
Slide 29: 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 30: 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 Shanghai • Location: Hong Kong Chengdu Lanson Place Lifestyle
Slide 31: Hospitality Investment and Management
Hospitality Investment and Management • In February 2016, a new 10-year management contract was signed to manage a serviced apartment project of 213 units at Two MacDonnell Road, Mid-Levels, Hong Kong • In July 2016, another 8-year management contract was signed to manage Lanson Place Tianfu Square
Slide 32: 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$100 million un
Slide 33: Future Plans & Strategies
Future plans & strategies
Slide 34: Future Plans & Strategies
Future Plans & Strategies In near term In mid-to-long term Property • Capture favourable windows of • Taking advantage of public land Development opportunity to launch property sales, tender programme and private treaty including the residential units at for development properties, be they Homantin
Slide 35: 2016 Interim Results Highlights
2016 interim Results highlights 35
Slide 36: Financial Results Summary
Financial Results Summary For the six month ended 30 June (HK$’M) 2016 2015 Revenue 468.0 539.8 13% Gross profit 376.0 382.4 2% Change in fair value of investment properties and 162.1 264.5 39% financial instruments Profit from operations 398.2 490.1 19% Share of results of joint ventures/associates
Slide 37: Segment Results Overview
Segment Results Overview For the six month ended 30 June (HK$’M) 2016 2015 Property Development Revenue 26 115 77% (Loss) / Profit before taxation (32) 80 140% Property Investment & Management Revenue 366 342 7% Fair value changes in investment properties and 174 286 39% financial instrument
Slide 38: Balance Sheet Summary
Balance Sheet Summary 30 June 31 December (HK$’M) 2016 2015 Total assets 28,674 28,221 2% Net assets 23,578 23,347 1% Equity attributable to equity holders of the 23,577 23,346 1% company Investment properties 21,553 21,449 - Properties for sale 2,435 1,296 88% Bank balances and cash 672 2,074 68% 3
Slide 39: Balance Sheet Summary – Cont'd
Balance Sheet Summary – Cont’d 30 June 31 December (HK$’M) 2016 2015 Total borrowings 3,925 3,766 4% Net borrowings 3,253 1,692 92% Gearing ratio 13.8% 7.2% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 492 13% 440 12% Between one and two years 315 8% 490 1
Slide 40: Appendix
appendix 40
Slide 41: Investment Thesis
Investment Thesis A credible and integrated property player in Hong Kong with a balanced and growing 1 development and investment portfolio spanning the region and beyond Strong track record in developing luxury and quality residential properties 2 at premium values Owns a diversified portfolio of h
Slide 42: Five Years' Financial Summary
Five Years’ Financial Summary Interim Results Full Year Results 2012 2011 1H 2016 1H 2015 2015 2014 2013 (Restated) (Restated) HK$’M HK$’M HK$’M HK$’M HK$’M HK$’M HK$’M RESULTS Continuing operations revenue 468.0 539.8 1,009.2 1,783.5 1,736.2 891.7 1,191.0 Profit before taxation from continuing oper
Slide 43: Five Years' Financial Summary – Cont'd
Five Years’ Financial Summary – Cont’d As at 30 June As at 31 December 1H 2016 2015 2014 2013 2012 2011 HK$’M HK$’M HK$’M HK$’M HK$’M HK$’M ASSETS AND LIABILITIES Total assets 28,674.2 28,220.9 27,527.8 26,705.1 23,578.1 20,212.5 Total liabilities (5,096.6) (4,873.6) (4,847.6) (5,809.9) (5,216.3) (4