40 slides from City Developments's shareholder meeting presentation, Apr 20, 2016
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING 20 April 2016
Slide 2: Agenda
AGENDA FINANCIAL HIGHLIGHTS SINGAPORE OVERVIEW INTERNATIONAL OVERVIEW HOTEL OPERATIONS MOVING FORWARD
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS Ivy and Eve, Brisbane, Australia Artist’s Impression
Slide 4: Key Highlights
Key Highlights ‒ 1 Delivered strong financial performance despite challenging market conditions − Resilient FY 2015 PATMI of $773.4 million •2 Diversified portfolio of development projects and recurring income segments − EBITDA of $1.3 billion •3 Resilient Singapore residential development business
Slide 5: Strong Financial Performance in a Challenging Environment
Strong Financial Performance in a Challenging Environment Summary of Financial Results FY FY % 2015 2014 Change Revenue ($m) 3,304 3,764 (12.2) PATMI ($m) 773 770 0.5 Basic Earnings Per Share (cents) 83.6 83.2 0.5 NAV Per Share ($) 9.89 9.25 6.9 Return on Equity (%) 8.59 9.16 (0.6) pts No fair value
Slide 6: Balanced Cash Flows and Asset Base
Balanced Cash Flows and Asset Base Recurring Income Segments Property Hotel Rental S$ million Others Total Funds Development Operations Properties # EBITDA * Local 331 84 500 15 930 Overseas 33 220 87 2 342 364 304 587 17 1,272 Total Assets ^ Local 7,067 546 3,321 265 11,199 AUM = Overseas 2,923 4,8
Slide 7: Diversified Land Bank
Diversified Land Bank Land Area (as of 31 Dec 2015) – CDL’s Attributable Share Type of Development Land Area (sq ft) Singapore International Total % Residential 755,177 2,172,285 2,927,462 89 Commercial / Hotel 50,202 294,619 344,821 11 Total 805,379 2,466,904 3,272,283 100 Proposed GFA (sq ft) Coun
Slide 8: Balanced Cash Flows and Asset Base
Balanced Cash Flows and Asset Base EBITDA Total Assets Overseas Local Overseas Local 27% 55% 45% 73% • Stability from Recurring Income segments comprising 71% of EBITDA / 51% of Total Assets (excluding tax recoverable and deferred tax asset) • De-risking Singapore exposure via growing international
Slide 9: Growing Private Funds Platform
Growing Private Funds Platform Profit Participation Securities (PPS) 2 - Joint investment in an office portfolio comprising three of CDL’s prime office assets Manulife Centre Central Mall (Office Tower) 7 & 9 Tampines Grande Completed in Dec 2015 Total value: $1.1 billion Cash flow waterfall a
Slide 10: Private Funds Growth Trajectory
Private Funds Growth Trajectory On target for $5 billion Funds Under Management (FUM) in 5 years AUM $ billion 6.0 Strategy allows CDL 5.0 to recycle capital from 5.0 mature assets 4.0 Attract best-in-class capital partners 3.0 2.6 Finance overseas 1.1 2.0 expansion while maintaining prudent 1
Slide 11: Sustainability Performance
Sustainability Performance Most Sustainable Company in Real Estate Worldwide* Global 100 Most Sustainable Corporations in the World – Ranked Top in Real Estate in 2016; listed since 2010 Channel NewsAsia Sustainability Ranking – Top Property Developer in Asia & Top Singapore Corporation since 20
Slide 12: Singapore Overview
SINGAPORE OVERVIEW The Brownstone, Singapore Artist’s Impression
Slide 13: Singapore Property Market
Singapore Property Market Property Price Index – Residential (2011 – Q1 2016*) All Residential 180 160 Q4 15 Q1 16* 141.6 140.6 140 120 100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16* Source : URA, Q1 2016 * Based on
Slide 14: Singapore Property Market
Singapore Property Market No. of New Private Residential Units Launched vs Units Sold (Projects under Construction) (2011 – 2015) New Units Launched New Units Sold (Projects Under Construction) 24,000 21,478 22,197 22,000 New Units New Units 20,000 Launched Sold Directly By 17,710 Developers 18,000
Slide 15: Singapore Property Development
Singapore Property Development Residential Units Sold (2014 – 2015) FY 2015 FY 2014 $1,392,773 1,378 1,183,478 $1,179 1,057 $970 859 712,558 $691,507 674 No. of Units* Sales Value* Total Floor Area* Average Unit Average Sale (#039;000) (sq ft) Size* (sq ft) Price* ($ psf) * Includes share of JV partner
Slide 16: Singapore Property Development: Projects Launched in 2015
Singapore Property Development Projects Launched in 2015 Project Location Equity Total % Sold* Total Saleable Area ASP Expected TOP Stake Units (sq ft) (psf) The Brownstone Canberra 70% 638 55 632,755 $811 Q1 2018 (Executive Condo) Drive The Criterion Yishun 70% 505 15 524,925 $796 Q2 2018 (Executiv
Slide 17: Completed Residential Projects in 2015
Singapore Property Development Completed Residential Projects in 2015 Project Location Equity Total % TOP Stake Units Sold* Obtained The Rainforest Choa Chu Kang 50% 466 100 Mar 15 (Executive Condo) Ave 3 H2O Residences Fernvale Link 100% 521 100 May 15 Bartley Residences Lorong How Sun 30% 702 100
Slide 18: Upcoming Residential Project Launch
Singapore Property Development Upcoming Residential Project Launch (subject to market conditions) Project Location Tenure Equity Total Total % Expected Stake Units Saleable Completed* TOP Area (sq ft) Gramercy Park Grange Road Freehold 100% 174 368,743 92.9 Q2 2016 Artist’s Impression For Illustrati
Slide 19: Residential Projects Expected to be Completed in 2016
Singapore Property Development Residential Projects Expected to be Completed in 2016 Project Location Equity Total % Expected Stake Units Sold* TOP HAUS@SERANGOON Serangoon 70% 97 100 TOP GARDEN Garden Close Terraces obtained Lush Acres Fernvale Close 100% 380 100 Q3 2016 (Executive Condo) Jewel @ B
Slide 20: Disciplined Pricing for Prime Site at Lorong Lew Lian
Singapore Property Development Disciplined Pricing for Prime Site at Lorong Lew Lian Strategic acquisition via Government Land Sales (GLS) programme in November 2015 Tightly contested tender with over 10 bids – CDL’s bid with JV partners topped second- highest bid by 2.6% 99-year leasehold sit
Slide 21: Singapore Office Portfolio Outperforming
Singapore Office Portfolio Outperforming Office Space Demand & Supply (2011 – 2015) Private & Public Sector Cumulative Supply Occupancy 85,000 80,095 81,300 81,365 77,834 78,254 80,000 72,205 72,980 73,647 75,000 70,913 69,040 70,000 65,000 60,000 55,000 CDL’s Office Properties 50,000 Average Occupa
Slide 22: Successful Leasing Strategy for South Beach
Successful Leasing Strategy for South Beach South Beach Tower South Beach – Retail Type Office Retail Net Lettable Area (Sq ft) Over 510,000 60,000 Leasing Status* Over 97% leased Over 40% leased Date Opened Feb 2015 From Sep 2015 Facebook, Rabobank, LEGO, Massive Collective Anchor Tenants Sanofi, E
Slide 23: International Overview
INTERNATIONAL OVERVIEW Hong Leong City Center, Suzhou, China Artist’s Impression
Slide 24: Diversified International Development Portfolio
Diversified International Development Portfolio Projects Launched Project City Equity Total % Sold* Est. Total Expected Stake Units Saleable Area Completion (sq ft) Australia Ivy and Eve Brisbane 33%# 472 60 348,678 1H 2018 China Hong Leong City Center Suzhou 70% 1,374 49 1,376,570 Q4 2016 (Phase 1)
Slide 25: Strong International Development Pipeline
Strong International Development Pipeline Unlaunched Residential Projects Project Location Tenure Equity Total Est. Total Saleable Area / Expected Stake Units GFA^ / Site Area+ (sq ft) Completion China Hong Leong City Suzhou 70-year lease 70% 430 448,844 Q4 2017 Center (Phase 2) Eling Residences Cho
Slide 26: International Property Development: Australia
International Property Development Australia Merivale Street Residential Project – Ivy and Eve City Equity Stake Total Units % Sold* Expected Completion Brisbane 33%# 472 60 1H 2018 Ivy and Eve Freehold project on 2,733 sqm site with two 30-storey towers of 1-, 2- and 3-bedroom apartments overlook
Slide 27: International Property Development: China
International Property Development China China Real Estate Development Platform – Established in 2010 Up to $800 million set aside for China investment 4 development projects acquired to date – Suzhou, Shanghai, Chongqing (2 sites) 2015 Highlights Suzhou – Hong Leong City Center – Mixed-use wa
Slide 28: China – Pipeline Projects
International Property Development China – Pipeline Projects Chongqing – Eling Residences (鹅岭峰) Tenure Equity Total Est. Total Saleable Stake Units Area (sq ft) 50-year lease 100% 126 354,814 (residential) (32,963 sqm) Exclusive luxury residence sited at the peak of Eling Hill in Yuzhong District
Slide 29: Japan – Pipeline Project
International Property Development Japan – Pipeline Project Tokyo – Shirokane Tenure Equity Stake Site Area (sqm) Freehold 94.5% 16,815 Prime site located in the affluent Minato ward Site to be redeveloped into a luxury condominium with the historic Hattori mansion as a centrepiece Target to l
Slide 30: International Property Development: UK
International Property Development UK UK Real Estate Development Platform – Established in 2013 Up to £550 million set aside for UK investment 8 freehold properties in UK acquired to date for £400 million Early mover out of Core Central London 2015 Highlights Stag Brewery, London Completed p
Slide 31: London – Hanover House, Reading RG1
International Property Development UK London – Hanover House, Reading RG1 Equity Stake Total Units Total Units % Sold* Sold / Reserved 100% 82 82 100 Successful sales launch – fully sold / reserved All 82 units released – 73 contracts have been Artist’s Impression exchanged for sale and 9 units
Slide 32: UK – Pipeline Projects
International Property Development UK – Pipeline Projects London Project Tenure Equity Total Est. Total Saleable Stake Units Area (sq ft) Knightsbridge Freehold 100% TBC 135,000* (Pavilion Road) Belgravia Freehold 100% 6 12,393 Knightsbridge Freehold 100% 3 5,193 Chelsea Freehold 100% 9 16,143 Artis
Slide 33: Hotel Operations
HOTEL OPERATIONS Hard Days Night Hotel, Liverpool, UK
Slide 34: M&C Hotel Operations
M&C Hotel Operations Trading Performance FY 2015 FY 2014 Change RevPAR £71.98 £71.55 0.6% Revenue £847m £826m 2.5% PATMI £65m £110m (40.9%) RevPAR growth for FY 2015 driven by: - US 7.3% The Chelsea Harbour Hotel - Europe 1.2% - Australasia 2.9% partially mitigated by poorer performance of Asia ho
Slide 35: 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 2015 2014 2015 2014 By region: ● New York 4 4 2,238 2,238 ● Regional US 15 15 4,463 4,463 ● London 8 8 2,651 2,651 ● Rest of Europe 18 16 2,867 2,560 ● Middle East * 22 17 6,450 5,123 Mil
Slide 36: CDL Hospitality Trusts (CDLHT)
CDL Hospitality Trusts (CDLHT) Trading Performance S$’000 FY 2015 FY 2014 Change Gross Revenue 172,410 166,812 3.4% Net Property 137,003 140,526 (2.5%) Income M Hotel Singapore Gross revenue increased mainly due to the inclusion of revenue from recent acquisitions: Hilton Cambridge City Centre, Un
Slide 37: Moving Forward
MOVING FORWARD South Beach, Singapore
Slide 38: Strategic Thrust for 2016
Strategic Thrust for 2016 Building Value through New Geographies & New Products Significant opportunities to deploy balance sheet in rising market dislocation Continue expansion of international footprint in 5 key markets – US, UK, Japan, China and Australia Grow funds management platform and
Slide 39: 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 40: www.cdl.com.sg
Option 1 www.cdl.com.sg South Beach, Singapore