Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — H1 2019 Earnings Presentation
41 slides from Wing Tai Properties's earnings presentation, 2019
Slide 1: Wing Tai Properties Limited Interim Results 2019
Wing Tai Properties Limited 永泰地產有限公司 INTERIM Results 2019
Slide 2: Agenda
Agenda A Snapshot of 1H 2019 • Key Achievements • Land Bank Business Review • Property Development • Property Investment & Management • Hospitality Investment & Management • Strengthened Capital Structure Future Plans & Strategies 2019 Interim 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 1H 2019
A Snapshot of 1H 2019
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 flagship Grade A twin office towers, Landmark East, continued to deliver good performance with high occupancy and stable rental rate, against the competition from new office supply in Kowloon East and amidst an on-going decentralisation trend and demand from corporate
Slide 7: Balanced and Diversified Land Bank in Hong Kong
Balanced and Diversified Land Bank in Hong Kong 1 2 3 Castle Peak Road, Tai Lam, 4 Tuen Mun 1 Gage Street/Graham Street, 4 5 Central 2 3 6 Landmark East 7 6 7 Shui Hing Centre 8 5 9 8 9 Waterfront Suites Development properties Investment properties 7
Slide 8: Land Bank (as at 30 June 2019)
Land Bank (as at 30 JUNE 2019) Strategic land bank with focus on Hong Kong Investment Property Land Bank Overview By Business Segment Hospitality & Property Others Development 15% 30% Investment Industrial 9% Property 70% Office / Retail 76% Valuation as at Attributable Hong Kong London Others Total
Slide 9: Business Review
Business Review
Slide 10: Property Development
Property Development 10
Slide 11: Sales and Development Pipeline
Sales and Development Pipeline (as at 30 JUNE 2019) 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% Development La
Slide 12: Completed Development in Hong Kong
Completed Development in Hong Kong Le Cap (69 units), Kau To, Shatin • Saleable area of approximately 142,800 sq. ft. • Low-density luxury residential project at peak of Kau To Shan • In 1H 2019, approximately 3% and 13% of the residential units were sold and handed over, respectively • Cumulatively
Slide 13: Completed Development in Hong Kong – cont'd
Completed Development in Hong Kong – cont’d La Vetta (158 units), Kau To, Shatin • Saleable area of approximately 321,000 sq. ft. • Low-density luxury residential project • In 1H 2019, approximately 16% and 9% of the residential units were sold and handed over, respectively • Cumulatively approximat
Slide 14: Project Under Development in Hong Kong
Project Under Development in Hong Kong The Carmel (178 units), Siu Sau, Tai Lam, Tuen Mun • Saleable area of approximately 147,000 sq. ft. • Earmarked for low-density residential development • Occupation permit obtained in June 2019 • Pre-sale launched in January 2019, with around 78% of the residen
Slide 15: Project Under Development in Hong Kong – cont'd
Project Under Development in Hong Kong – cont’d OMA OMA (466 units), So Kwun Wat Road, Tuen Mun • Saleable area of approximately 234,000 sq. ft. • Earmarked for medium-density residential development • Pre-sale consent obtained in June 2019 • Pre-sale launched in June 2019, with around 50% of the re
Slide 16: 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 • Foundation work and site formation work in progress • Project scheduled for completion in 2022 16
Slide 17: Project Under Development in Hong Kong – cont'd
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 18: Property Investment & Management
Property Investment & Management 18
Slide 19: Investment Portfolio in Hong Kong
Investment Portfolio in Hong Kong Gross floor area Occupancy as at (’000 sq. ft.) 30 June 2019 Landmark East Grade A (AIA Kowloon Tower/ 1,338 97% Offices AXA Tower) Industrial Shui Hing Centre 187 98% Property 19
Slide 20: 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 21: 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 91% occupancy Commercial Property at Cavendish Square, West End • Group’s interest of 33%
Slide 22: Investment Portfolio in London – cont'd
Investment Portfolio in London – cont’d Commercial Property at Gresham Street, the City • 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 full occupancy 22
Slide 23: 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 2019, approximately 91% of the units were leased 23
Slide 24: Hospitality Investment & Management
Hospitality Investment & Management 24
Slide 25: 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 Chengdu Shanghai Waterfront Suites, Hong Kong Hong
Slide 26: Hospitality Portfolio – cont'd
Hospitality Portfolio – cont’d Lanson Place Properties – Management Tianfu Square, Chengdu 162 units Jin Qiao, Shanghai Two MacDonnell Road, Hong Kong 102 units 213 units Aroma Garden, Shanghai Chengdu Shanghai SM Mall of Asia, 79 units Manila Hong Kong 400 units (scheduled to open in 2022) One Sunl
Slide 27: Hospitality Investment and Management
Hospitality Investment and Management • Lanson Place has signed a new 10-year management contract to manage a brand new hotel and serviced apartment project in Manila, Philippines, which is scheduled for completion in 2022. This marks Lanson Place’s first property in the Philippines. • Lanson Place
Slide 28: Hospitality Investment and Management – cont'd
Hospitality Investment and Management – cont’d Awards and recognitions: Lanson Place Hotel, Hong Kong “Best Design Hotel in China” at TTG China Travel Awards 2019 One Sunland, Shanghai: “Best Serviced Apartment of China” at 2019 China Hotel Starlight Awards Bukit Ceylon, Kuala Lumpur: “2
Slide 29: 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$10
Slide 30: Future Plans & Strategies
Future plans & strategies
Slide 31: Future Plans & Strategies
Future Plans & Strategies In near term In mid-to-long term Property • Focus on the project completion of The • Taking advantage of public land tender Carmel and OMA OMA as early as in the programme and private treaty for Development year of 2020 and 2021 respectively so as to development properties,
Slide 32: 2019 Interim Results Highlights
2019 INTERIM Results highlights
Slide 33: Financial Results Summary
Financial Results Summary For the six months ended 30 June (HK$’M) 2019 2018 Revenue 424 470 10% Gross profit 341 370 8% Change in fair value of investment properties and (27) 228 112% financial instruments including joint ventures Profit from operations 197 1,090 82% Share of results of joint ventu
Slide 34: Segment Results Overview
Segment Results Overview For the six months ended 30 June (HK$’M) 2019 2018 Property Development Revenue 12 16 25% Profit/(loss) before taxation 29 (69) 142% Share of results of joint ventures and associates 126 5 2420% Property Investment & Management Revenue 315 373 16% Fair value change
Slide 35: Segment Results Overview – cont'd
Segment Results Overview – cont’d For the six months ended 30 June (HK$’M) 2019 2018 Hospitality Investment & Management Revenue 71 68 4% Fair value changes in investment properties including joint (10) 47 121% ventures (Loss)/profit before taxation (1) 66 102% Profit before taxation excludi
Slide 36: Balance Sheet Summary
Balance Sheet Summary 30 June 31 December (HK$’M) 2019 2018 Total assets 35,996 35,428 2% Net assets 28,652 28,722 0% Equity attributable to shareholders of the company 27,131 27,201 0% Investment properties 20,629 20,459 1% Properties for sale 4,393 4,006 10% Bank balances and cash 2,352 2,874 18%
Slide 37: Balance Sheet Summary – cont'd
Balance Sheet Summary – cont’d 30 June 31 December (HK$’M) 2019 2018 Total borrowings 4,762 5,035 5% Net borrowings 2,410 2,161 12% Gearing ratio 8.4% 7.5% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 1,029 22% 1,295 26% Between one and two years 206 4% 11
Slide 38: Appendix
appendix
Slide 39: 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 Continue to grow the residential property development operations by proactively yet 2 cautiously acquiring land bank Own
Slide 40: Five Years' Financial Summary
Five Years’ Financial summarY Interim Results Full Year Results 1H 2019 1H 2018 2018 2017 2016 2015 2014 (HK$’M) (Note) (Note) RESULTS Revenue 424 470 885 1,064 1,103 1,009 1,784 Profit before taxation 285 1,112 1,432 2,101 1,260 1,182 2,033 Taxation (40) (43) (53) (99) (111) (83) (89) Profit for th
Slide 41: Five Years' Financial Summary – cont'd
Five Years’ Financial summarY – cont’d As at 30 June As at 31 December 1H 2019 2018 2017 2016 2015 2014 (HK$’M) ASSETS AND LIABILITIES Total assets 35,996 35,428 35,496 30,776 28,221 27,528 Total liabilities (7,344) (6,706) (7,686) (6,464) (4,874) (4,848) Equity attributable to the equity holders of