Slide 1: Full Year 2016 Results Presentation
FULL YEAR 2016 RESULTS PRESENTATION 23 February 2017 (1 Jan – 31 Dec 2016)
Slide 2: Agenda
AGENDA • EXECUTIVE SUMMARY • FINANCIAL HIGHLIGHTS • SINGAPORE OVERVIEW • INTERNATIONAL OVERVIEW • HOTEL OPERATIONS
Slide 3: Executive Summary
EXECUTIVE SUMMARY
Slide 4: Key Highlights
Key Highlights Creditable PATMI achieved despite headwinds and challenges: – $244 million for Q4 2016 (Q4 2015: $410 million) – $653 million for FY 2016 (FY 2015: $773 million) – Supported by divestures in City e-Solutions Limited in Q3 2016 and Exchange Tower in Q4 2016; exiting of equity interes
Slide 5: Resilient Performance amidst Macroeconomic Challenges
Resilient Performance amidst Macroeconomic Challenges Summary of Financial Results Q4 Q4 % FY FY % 2016 2015 Change 2016 2015 Change Revenue ($m) 1,167 855 36.5 3,905 3,304 18.2 PATMI ($m) 244 410 (40.6) 653 773 (15.5) Basic Earnings Per Share 26.1 44.4 (41.2) 70.4 83.6 (15.8) (cents) NAV Per Share
Slide 6: Portfolio Composition – FY 2016
Portfolio Composition – FY 2016 Recurring Income Segments Property Hotel Rental S$ million Others Total Funds Development Operations Properties EBITDA * Local 367 53 123 (34) 509 Overseas 183 211 201 112 707 550 264 324 78 1,216 Total Assets ^ Local 6,478 645 3,229 420 10,772 AUM = Overseas 2,960 4,
Slide 7: Portfolio Composition – FY 2016
Portfolio Composition – FY 2016 EBITDA Total Assets Local Overseas 42% 58% Local Overseas 55% 45% • Stability from Recurring Income segments comprising 55% 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 Dec 2016) – CDL’s Attributable Share Type of Development Land Area (sq ft) Singapore International Total % Residential 507,333 1,878,895 2,386,228 91 Commercial / Hotel 20,886 226,273 247,159 9 Total 528,219 2,105,168 2,633,387 100 Proposed GFA (sq ft) Count
Slide 9: Share Price Performance
Share Price Performance Strong Performance for FY 2016 8.2% in share price for FY 2016* YTD HIGHEST - $9.23 (6 Sep) • ↑ 6.4% in share price (For 1H 2016, 30 Jun) • FY 2016 Highest - $9.23 $8.28 (6 Sep) (30 Dec) (↑ 20.7% from 1 Jan) $8.14 • FY 2016 Lowest - $6.68 (30 Jun) (27 Jan) ( 12.7% from 1 Jan
Slide 10: Geographical Diversification
Geographical Diversification On target to meet $5 billion in Acquisition Objective by end 2018 ACQUISITIONS $ BILLION FY 2016 Acquisition Highlights: 6.0 5.0 £37.4 million 5.0 Acquisition of Development House, an existing office building 4.0 in Shoreditch, north of City of London 3.0 2.5 2.3 2.0 RMB
Slide 11: Product Diversification
Product Diversification On target to raise $5 billion in Funds under Management (FUM) by end 2018 FUM $ BILLION 6.0 70% to target 5.0 5.0 with 3rd Profit Participation Securities (PPS) in 2016 4.0 3.5 3.0 2.6 $977.6 million Raised from PPS transaction 2.0 and exited interest to 1.5 luxury freehold r
Slide 12: Strategic Thrusts for FY 2017
Strategic Thrusts for FY 2017 Acquisitive Position with Value Driven Focus Q1 2017* Acquisition Highlights: Focus on assets with in-place income in RMB 72 million Singapore and overseas: Investment for 24% equity stake $304 million investments in Q1 2017 to date* in Distrii, China’s Discipline
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 14: Financial Highlights – Segment Financial Results
Financial Highlights Segment Financial Results Revenue Profit Before Tax Q4 2016 Q4 2016 Incr/ (Decr) Q4 2016 Q4 2015 Incr/ (Decr) $M $M % $M $M % Property Development 598.1 241.7 147.5 242.6 115.8 109.5 Hotel Operations 443.7 462.7 (4.1) (9.2) 9.1 NM (include CDL owned hotels) Rental Properties 88.
Slide 15: Revenue by Segment for 4th Quarter
Financial Highlights Revenue by Segment for 4th Quarter (2014 – 2016) $1,167m $855m $847m 700 598 600 463 464 500 444 $ million 400 300 242 246 200 105 103 89 100 36 45 34 0 Q4 2016 Q4 2015 Q4 2014 Property Development Hotel Operations Rental Properties Others Q4 2016 Q4 2015 Q4 2014 Property Develo
Slide 16: Profit Before Tax by Segment for 4th Quarter
Financial Highlights Profit Before Tax by Segment for 4th Quarter (2014 – 2016) $332m $471m $437m 450 400 349 350 300 243 251 250 $ million 200 139 150 101 116 100 41 50 9 6 0 (50) (9) (3) (3) Q4 2016 Q4 2015 Q4 2014 Property Development Hotel Operations Rental Properties Others Q4 2016 Q4 2015 Q4 2
Slide 17: EBITDA by Segment for 4th Quarter
Financial Highlights EBITDA by Segment for 4th Quarter (2014 – 2016) $418m $543m $523m 400 382 350 300 262 251 $ million 250 180 200 130 116 150 100 74 38 42 50 3 7 0 (1) Q4 2016 Q4 2015 Q4 2014 Property Development Hotel Operations Rental Properties Others Q4 2016 Q4 2015 Q4 2014 Property Developme
Slide 18: Revenue by Segment for Full Year
Financial Highlights Revenue by Segment for Full Year (2014 – 2016) $3,905m $3,304m $3,764m 2,000 1,745 1,698 1,800 1,633 1,581 1,678 1,600 1,400 1,200 1,037 $ million 1,000 800 600 367 406 385 400 160 163 120 200 0 FY 2016 FY 2015 FY 2014 Property Development Hotel Operations Rental Properties Othe
Slide 19: Profit Before Tax by Segment for Full Year
Financial Highlights Profit Before Tax by Segment for Full Year (2014 – 2016) 700 $914m $985m $1,004m 600 520 532 500 460 400 356 333 $ million 300 207 171 146 200 116 71 100 0 (2) (7) (100) FY 2016 FY 2015 FY 2014 Property Development Hotel Operations Rental Properties Others FY 2016 FY 2015 FY 201
Slide 20: EBITDA by Segment for Full Year
Financial Highlights EBITDA by Segment for Full Year (2014 – 2016) $1,216m $1,272m $1,294m 700 587 557 600 550 463 500 $ million 400 364 324 304 264 268 300 200 78 100 17 6 0 FY 2016 FY 2015 FY 2014 Property Development Hotel Operations Rental Properties Others FY 2016 FY 2015 FY 2014 Property Devel
Slide 21: Capital Management
Financial Highlights Capital Management As at 31/12/16 As at 31/12/15 Gross borrowings $5,752m $6,503m Cash and cash equivalents (include restricted deposits of $214m classified in other non-current $3,887m $3,565m assets) Net borrowings $1,865m $2,938m Net gearing ratio without taking in fair value
Slide 22: Prudent Capital Management
Financial Highlights Prudent Capital Management Debt Expiry Profile Debt Maturity 2,000 Within 1 year Debt $ million Bond Bank Loan 250 1,500 33% 31% 1 to 2 years 320 2 to 3 years 1,000 1,535 13% More than 3 295 23% 500 428 years 995 260 640 467 360 202 0 - 2017 2018 2019 2020 2021 2022 onwards Debt
Slide 23: Singapore Overview
. wy SX . \ SINGAPORE OVERVIEW
Slide 24: Singapore Property Market – Price Index
Singapore Property Market Property Price Index – Residential (2012 – 2016) All Residential 180 160 Q3 16 Q4 16 137.9 137.2 140 120 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 Source : URA, Q4 2016 Based on Revised PPI 24
Slide 25: New Private Residential Units Launched vs Sold
Singapore Property Market No. of New Private Residential Units Launched vs Units Sold (2012 – 2016) New Units Launched New Units Sold 24,000 New Units New Units 21,478 22,197 22,000 Launched Sold Directly By Developers 20,000 (excl. EC units) (excl. EC units) 18,000 2012 21,478 22,197 15,885 16,000
Slide 26: Uncompleted Private Residential Units Available
Singapore Property Market No. of Uncompleted Private Residential Units Available (2012 – 2016) Not Launched Launched & Unsold 20,000 17,467 16,587 15,499 16,000 Launched Not Total 13,944 & Unsold Launched* 12,241 2012 5,137 8,807 13,944 12,000 2013 6,124 11,343 17,467 Number of Units 2014 5,750 10,8
Slide 27: Singapore Property Development – Residential Units Sold
Singapore Property Development Residential Units Sold Sales Value* No. of Total $’000 Units* Area Sold (sq ft) FY 2016 $ 1,245,723 1,017 974,666 FY 2015 $ 691,507 674 712,558 * Includes share of JV partners 27
Slide 28: Gramercy Park – Positive Response to Phase 1
Singapore Property Development Gramercy Park – Positive Response to Phase 1 Project Location Tenure Equity Total Total Units % Total Saleable Stake Units Sold* Sold Area (sq ft) Gramercy Park Grange Road Freehold 100% 174 56 32 368,743 Phase 2 Launch by 1H 2017: Good uptake, with 56 units sold to
Slide 29: One of 2016's Bestselling Residential Projects
Singapore Property Development One of 2016’s Bestselling Residential Projects Project Location Tenure Equity Total Total Units % Total Saleable Expected Stake Units Sold* Sold* Area (sq ft) TOP Forest Woods Lorong 99-year 50% 519 392 76 431,265 2021 Lew Lian leasehold Strong Uptake: Launched in Oc
Slide 30: Completed Residential Projects in 2016
Singapore Property Development Completed Residential Projects in 2016 Project Location Equity Total % TOP Stake Units Sold* Obtained HAUS@SERANGOON Serangoon 70% 97 100 Mar 2016 GARDEN Garden Close Terraces The Inflora Flora Drive 33% 396 100 Apr 2016 Gramercy Park Grange Road 100% 174 32 May 2016 L
Slide 31: 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 Upmarket freehold condominium in District 9,
Slide 32: Inventory of Launched Residential Projects
Singapore Property Development Inventory of Launched Residential Projects – As of 31 Dec 2016 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 33: Singapore Commercial Market
Singapore Commercial Market Property Price Index – Commercial (2012– 2016) 145 Office Retail 140 Q3 16 Q4 16 135.5 134.7 135 130 Q3 16 Q4 16 125 122.3 122.6 120 115 110 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 Source : UR
Slide 34: Singapore Office Market – Average Rental
Singapore Office Market Average Office Rental in CBD (2012 – 2016) 14.00 $12.04 12.00 $10.51 $10.38 10.00 $9.74 $9.26 $9.14 $8.37 $8.50 $7.90 $7.77 8.00 6.00 Marina Bay / Raffles Place (Grade A) 4.00 Whole Island 2.00 0.00 2012 2013 2014 2015 2016 Source : JLL Research, Q4 2016 34
Slide 35: Office Space Demand & Supply
Singapore Office Market Office Space Demand & Supply (2012 – 2016) Private & Public Sector Cumulative Supply Occupancy 85,000 81,300 83,206 80,095 81,365 78,254 80,000 72,980 73,647 73,938 75,000 72,205 70,913 70,000 65,000 60,000 55,000 CDL’s Office Properties 50,000 Occupancy 45,000 95.9% 40,000 (
Slide 36: CDL's Office Space – Lease Expiry Profile
Rental Properties CDL’s Office Space – Lease Expiry Profile (2017 – 2019) * As of 31 December 2016 Office Portfolio NLA: 16 95.9% ~2,300,000 sq ft Properties^ Occupancy Expiry % of NLA 33% 28% 25% 2017 2018 2019 * Based on contractual expiry dates. Renewals will be negotiated nearer to expiry. Tenan
Slide 37: Retail Space Demand & Supply
Singapore Retail Market Retail Space Demand & Supply (2012 – 2016)* Private & Public Sector Cumulative Supply Occupancy 66,000 65,079 64,271 64,000 63,658 62,000 61,333 60,052 59,955 60,192 60,000 59,632 58,599 58,000 57,060 56,000 CDL’s Retail Properties Occupancy 54,000 96.4%* (National Average =
Slide 38: CDL's Retail Space – Lease Expiry Profile
Rental Properties CDL’s Retail Space – Lease Expiry Profile (2017 – 2019) * As of 31 December 2016 Retail Portfolio NLA: 19 96.4% ~840,000 sq ft Properties^ Occupancy Expiry % of NLA 32% 31% 23% 2017 2018 2019 * Based on contractual expiry dates. Renewals will be negotiated nearer to expiry. Tenants
Slide 39: Rental Properties Revenue by Sector
Rental Properties Revenue by Sector for Full Year (2014 – 2016) 300 $367m $406m $385m 250 Office 200 187 S$ million 176 152 Retail 150 110 113 111 Industrial 100 74 75 65 REIT/Hotel 50 24 23 25 8 Others ^ 7 8 0 FY 2016 FY 2015 FY 2014 FY 2016 FY 2015 FY 2014 Office 41% 46% 46% Retail 30% 28% 29% Ind
Slide 40: Rental Properties EBITDA by Sector
Rental Properties EBITDA by Sector for Full Year (2014 – 2016) 600 $324m $587m $268m 550 500 446 ~ 450 Office 400 S$ million 350 Retail 300 250 Industrial 185 200 REIT/Hotel 150 101 75 53 91 100 64 58 53 Others ^ 15 19 50 5 6 4 4 0 FY 2016 FY 2015 FY 2014 FY 2016 FY 2015 FY 2014 Office 57% 76% 38% R
Slide 41: South Beach – Fully Completed in December 2016
South Beach Fully Completed in December 2016 Strong Performance for Office & Retail South Beach Tower (510,000 sq ft office space) and retail space are fully leased JW Marriott Hotel Singapore South Beach Rebranded hotel soft opened in mid-Dec 2016 Business performance is within expectations
Slide 42: International Overview
. wy SX . \ INTERNATIONAL OVERVIEW >
Slide 43: International Projects Launched To Date
International Property Development Projects Launched To Date* Project City Equity Total Total % Sold Est. Total Expected Stake Units Units Sold / Saleable Completion Booked Area (sq ft) Australia Ivy and Eve Brisbane 33%# 472 450 95 348,678 1H 2018 China Hong Leong City Suzhou 100%^ 1,374 1,038 76 1
Slide 44: Unlaunched Residential Projects
International Property Development Unlaunched Residential Projects Project Location 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
Slide 45: Australia – Ivy and Eve
International Property Development Australia Merivale Street Residential Project – Ivy and Eve City Equity Total Total Units % Expected Stake Units Sold* Sold Completion Brisbane 33%# 472 450 95 1H 2018 Freehold project with two 30-storey towers of 1-, 2- and 3- bedroom apartments in the heart of
Slide 46: China – Maiden Profits Recognised in Q4 2016
International Property Development China – Maiden Profits Recognised in Q4 2016 Suzhou – Hong Leong City Center (丰隆城市中心) City Equity Stake Total Units Total Units Sold / % Sold Expected Completion Booked* Suzhou 100%^ 1,804 1,212 67 Completed (Phase 1) Q4 2017 (Phase 2) Mixed-use waterfront projec
Slide 47: China – Good Progress on Launched Luxury Projects
International Property Development China – Good Progress on Launched Luxury Projects Shanghai – Hongqiao Royal Lake (御湖) City Equity Total Total Units % Expected Stake Units Sold / Booked* Sold Completion Shanghai 100% 85 34 40 Completed Stable sales despite tightening measures in Shanghai 34 un
Slide 48: Acquisition of 20% Equity Stake in mamahome
International Investment Platforms Strategic Acquisition of 20% Equity Stake in mamahome for RMB 100 million China’s Fast-Growing Online Apartment Rental Platform Over 150,000 apartment listings spanning over 20 cities in China Offers one-stop solution for apartment owners and rental customers
Slide 49: Acquisition of 24% Equity Stake in Distrii
International Investment Platforms Strategic Acquisition of 24% Equity Stake in Distrii for RMB 72 million Distrii – Leading Provider of Co-working Space Acquisition completed in Jan 2017 Currently 15 locations (13 Shanghai + 1 Beijing + 1 Hangzhou), 3,700 seating capacity in total. 10 locations
Slide 50: Acquisition of Shanghai Commercial Project
International Rental Properties China – Acquisition of Shanghai Commercial Project for RMB 900 million Meidao Business Plaza, Shanghai Tenure Equity Est. Total GFA Expected Stake (sqm) Completion 50-year lease 100% 32,300 2H 2017 Purchase of a 100% equity stake in Shanghai Meidao Investment Co., w
Slide 51: Japan – Invested in Prime Residential Projects in Tokyo
International Property Development Japan – Invested in 2 Prime Residential Projects in Tokyo Tokyo – Park Court Aoyama The Tower City Equity Stake Total Total Units Sold * Expected Units Completion Freehold 20% 163 Over 50% 1H 2018 Located within prestigious Aoyama area within Minato ward in Tokyo
Slide 52: UK – Upcoming Launches in Q2 2017
International Property Development UK – Upcoming Launches in Q2 2017 Teddington Riverside, Teddington TW11 Tenure Equity Total Units Est. Total Expected Stake Saleable Area Completion (sq ft) Freehold 100% 220 240,000 2018 (Phased) Full planning received; works on basement car park in advanced sta
Slide 53: UK – Pipeline Projects
International Property Development UK – Pipeline Projects Chelsea, 90-100 Sydney Street, London SW3 6NJ Tenure Equity Total Units Est. Total Expected Stake Saleable Area Completion (sq ft) Freehold 100% 9 16,143 Q2 2018 Good progress on works Expected completion in Q2 2018 Artist’s Impression St
Slide 54: UK – Pipeline Projects: Pavilion Road, Development House
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 First luxury home care development to be built in Central London – planning consent obtained Project on target to commen
Slide 55: UK – Acquisition of Ransomes Wharf site
International Property Development UK – Acquisition of 1.6-acre Ransomes Wharf site for £58 million Ransomes Wharf, Battersea, SW11 Tenure Equity Total Units Est. GFA Expected Stake (sq ft) Completion Freehold 100% Residential – 118 units 240,899 2020 Commercial – 8 units Located within Battersea’
Slide 56: Hotel Operations
HOTEL OPERATIONS
Slide 57: M&C Hotel Operations – Trading Performance
M&C Hotel Operations Trading Performance Reported Constant Currency Currency FY 2016 FY 2015 Change FY 2015 Change Revenue £926m £847m 9.3% £926m - Revenue (hotel) £814m £765m 6.4% £833m (2.3%) Profit before tax £108m £109m (0.9%) £124m (12.9%) PATMI £78m £65m 20.0% Increase in reported revenue at
Slide 58: M&C Hotel Operations – RevPAR Trading Performance
M&C Hotel Operations Trading Performance RevPAR in reported currency was up by 6.6% but in constant currency fell by 2.3% for FY 2016 as compared to the same period last year : FY 2016 Reported Currency Constant Currency New York £145.64 ↑ 1.9% ↓ 9.9% Regional US £57.49 ↑17.5% ↑ 4.0% Total US £86.
Slide 59: M&C Hotel Operations – Developments
M&C Hotel Operations Developments – Progressing well Seoul, South Korea The lifestyle hotel and serviced apartment has 306 and 209 keys respectively. The building permit approval for Seoul Yangdong development project has been received on 25 January 2017. Additional certification processes are e
Slide 60: Assets Enhancement (Completed)
M&C Hotel Operations Assets Enhancement (Completed) ONE UN New York Refurbishment of guestrooms in the east tower was completed in early Sep 2016 and the towers were re- opened in time for the UN General Assembly. ONE UN New York Grand Copthorne Waterfront Hotel Singapore Work on the main lobby
Slide 61: Assets Enhancement (On-going)
M&C Hotel Operations Assets Enhancement (On-going) Grand Millennium Kuala Lumpur Soft refurbishment of guestrooms from level 9 to level 19 was completed at the beginning of the 4th quarter of 2016. Remaining guestrooms at level 7 and level 8 is Grand Millennium Kuala Lumpur planned to be refurbi
Slide 62: Hotel Room Count and Pipeline
M&C Hotel Operations Hotel Room Count and Pipeline Hotels Rooms 31 Dec 31 Dec 31 Dec 31 Dec Hotel and Room Count 2016 2015 2016 2015 By region: ● New York 4 4 2,238 2,238 ● Regional US 15 15 4,559 4,463 ● London 8 8 2,651 2,651 ● Rest of Europe 19 18 3,081 2,867 Grand Millennium Auckland ● Middle Ea
Slide 63: CDL Hospitality Trusts – Trading Performance
CDL Hospitality Trusts Trading Performance S$’000 FY 2016 FY 2015 Change Gross Revenue 180,857 172,410 4.9% Net Property 137,560 137,003 0.4% Income (NPI) Artist’s Impression Artist’s Impression Hilton Cambridge City Centre – Executive Lounge Gross revenue and NPI increased mainly due to : Inorgan
Slide 64: 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 65: Gramercy Park, Singapore www.cdl.com.sg
Gramercy Park, Singapore www.cdl.com.sg