Slide 1: 1H 2018 Results Presentation
1H 2018 Results Presentation 8 August 2018
Slide 2: Agenda
Agenda General Overview International Operations & Strategic Initiatives Fund Management Financial Highlights Hospitality Singapore Operations Innovation
Slide 3: General Overview
General Overview
Slide 4: Key Highlights
Key Highlights Strong residential sales: SINGAPORE: Sold 651 units with total sales value of $1.29 billion* in 1H 2018 12.1% increase in sales value year-on-year (1H 2017: $1.15 billion) Healthy take-up for 2 successful launches in 1H 2018: − New Futura: 92 units (74%) sold^ since soft-launch
Slide 5: Key Financial Highlights – Q2 2018
Key Financial Highlights – Q2 2018 Revenue EBITDA PATMI Basic EPS $1,359.5 million $401.8 million $204.8 million 21.8 cents 59.2% 55.7% 79.5% 84.7% Q2 2017 (Restated) *: $854.0 million $258.1 million $114.1 million 11.8 cents Strong profit recognition mainly from three property development project
Slide 6: Key Financial Highlights – 1H 2018
Key Financial Highlights – 1H 2018 Revenue EBITDA PATMI Basic EPS $2,417.4 million $631.6 million $284.8 million 30.6 cents 47.6% 36.6% 35.8% 36.6% 1H 2017 (Restated) *: $1,637.6 million $462.3 million $209.7 million 22.4 cents NAV per share Special Interim Dividend Similarly, 1H 2018 performance
Slide 7: Portfolio Composition – 1H 2018
Portfolio Composition – 1H 2018 EBITDA Total Assets * $632 million $20.2 billion Local Overseas Local Overseas 49% 51% 53% 47% • Stability from Recurring Income segments comprising 46% of EBITDA / 54% of Total Assets • Diversification overseas with international segments accounting 51% of EBITDA and
Slide 8: Strategic Initiatives
Strategic Initiatives
Slide 9: Key Considerations
Key Considerations #1: Cooling Measures Short Term #2: PPS Structures Medium to Long Term 9
Slide 10: Market Sentiment in 1H 2018
#1 Cooling Measures Market Sentiment in 1H 2018 Luxury Segment • Improvements in take-up rates and prices in 1H 2018 • Primarily foreign buyers Mass to Mid Market Segments • Good take-up rates for new market launches with new benchmark prices Exec Condo Segment • Competitor’s EC launch at Sengkang w
Slide 11: Impact of Past Property Cooling Measures on Volume & Prices
#1 Cooling Measures Impact of Past Property Cooling Measures on Volume & Prices Past property cooling measures tended to depress sales volume, but property price declines were not as sharp. Nevertheless, subdued sentiments will impact the residential sector, potentially disrupting upcoming new proje
Slide 12: Profit Participation Securities (PPS)
#2 PPS Structures Profit Participation Securities (PPS) The Group currently acts as Asset Manager for 3 PPS with short-term fund life: PPS 1 – Dec 2014 PPS 3 – Oct 2016 $1.5 billion comprising the Quayside Collection in Sentosa: The Residences at W Singapore – Sentosa Cove The 5-star 240-room ho
Slide 13: Strategic Focus for 2018
Strategic Focus for 2018 Renewal and Transformation of Asset Portfolio and Business Operations #1 #2 #3 GROWTH ENHANCEMENT TRANSFORMATION Property Asset Enhancement Fund Management Development Initiatives (AEI) Innovation Recurring Income Repositioning / Venture Capital Streams Redevel
Slide 14: Residential Launch Pipeline
GROWTH Residential Launch Pipeline CDL’s Residential Projects Available for Launch – Pipeline of over 2,600 units 58% of our launch pipeline is in the EC and Mass Market segments, which primarily targets HDB upgraders and first time buyers West Coast Vale - $472.4 million Sumang Walk - $509.37 milli
Slide 15: Recurring Income Focus
GROWTH Recurring Income Focus Build Recurring Income Segment through Acquisitions & Organic Growth Completed Acquisition: Upcoming Acquisition: RMB 148 million Over S$300 million 4,000 sqm GFA office block in office asset Shanghai’s North Bund in one of our target markets Business District 15
Slide 16: Grow Recurring Income Streams
GROWTH Grow Recurring Income Streams 10-Year Target to Achieve $900 million of Recurring EBITDA Management & performance fees Fund Management Rental Properties $900MM Recurring CDL Balance EBITDA Sheet Hotel Properties 16
Slide 17: Asset Enhancement Initiatives (AEI)
ENHANCEMENT Asset Enhancement Initiatives (AEI) Good Progress on AEI Works Le Grove Serviced Residences – Completion of $30 million AEI works Location Tenure Equity Total Net Lettable Stake Units Area (sq ft) Orange Grove Road Freehold 100% 173 89,340 Reopened in mid-July 2018 (ahead of schedule)
Slide 18: Deriving Synergy through Consolidating Functions
ENHANCEMENT Deriving Synergy through Consolidating Functions New Asset Management Structure enables Functional Specialists to support Core Strategy & Strengthen Internal Capabilities Leasing Asset Management Property & Facilities Management Office Retail Industrial Residential Assets Assets Assets A
Slide 19: Innovation & Venture Capital
TRANSFORMATION Innovation & Venture Capital Two-Pronged Approach: Strategic Investments & Enterprise-Driven Initiatives Investments into Internal Innovation Synergistic PropTech Initiatives (Potential Disruptors) Enterprise Innovation Committee (EIC) China’s upcoming Long- China’s Leading Operator T
Slide 20: Financial Highlights
Financial Highlights
Slide 21: Revenue by Segment for 2nd Quarter (2016 – 2018)
Financial Highlights Revenue by Segment for 2nd Quarter (2016 – 2018) $1,360m $854m $1,092m 900 819 800 700 600 552 $ million 500 421 432 406 400 303 300 200 85 86 93 100 35 33 41 0 Q2 2018 Q2 2017 (Restated) * Q2 2016 Property Development Hotel Operations Rental Properties Others Q2 2017 Q2 2018 Q2
Slide 22: Profit Before Tax by Segment for 2nd Quarter (2016 – 2018)
Financial Highlights Profit Before Tax by Segment for 2nd Quarter (2016 – 2018) $325m $189m $205m 320 280 255 240 200 $ million 160 120 106 88 80 69 59 36 26 28 32 40 8 4 8 0 Q2 2018 Q2 2017 (Restated) * Q2 2016 Property Development Hotel Operations Rental Properties Others Q2 2018 Q2 2017 Q2 2016 (
Slide 23: Revenue by Segment for Half Year (2016 – 2018)
Financial Highlights Revenue by Segment for Half Year (2016 – 2018) $2,417m $1,638m $1,816m 1,600 1,382 1,400 1,200 1,000 798 799 $ million 775 766 800 602 600 400 169 172 186 200 68 65 89 0 1H 2018 1H 2017 (Restated) * 1H 2016 Property Development Hotel Operations Rental Properties Others 1H 2017 1
Slide 24: Profit Before Tax by Segment for Half Year (2016 – 2018)
Financial Highlights Profit Before Tax by Segment for Half Year (2016 – 2018) $493m $314m $344m 400 360 336 320 280 240 $ million 200 179 183 160 120 87 74 70 73 80 57 57 40 13 4 18 0 1H 2018 1H 2017 (Restated) * 1H 2016 Property Development Hotel Operations Rental Properties Others 1H 2018 1H 2017
Slide 25: EBITDA by Segment for Half Year (2016 – 2018)
Financial Highlights EBITDA by Segment for Half Year (2016 – 2018) $632m $462m $487m 400 360 342 320 280 $ million 240 191 191 200 160 130 146 144 118 142 130 120 80 40 14 9 24 0 1H 2018 1H 2017 (Restated) * 1H 2016 Property Development Hotel Operations Rental Properties Others 1H 2018 1H 2017 1H 20
Slide 26: Financial Highlights – Balance Sheet
Financial Highlights Balance Sheet As at 30/06/18 As at 31/12/17 Gross borrowings $5,418m $5,036m Cash and bank balances ^ $3,083m $3,989m Net borrowings $2,335m $1,047m Net gearing ratio without taking in fair value 19% 9% gains on investment properties Net gearing ratio after taking in fair value
Slide 27: Prudent Capital Management
Financial Highlights Prudent Capital Management Balanced debt expiry profile Balanced debt currency mix – adopting a natural hedging strategy Average borrowing cost kept low Balance of fixed rate borrowings to mitigate rate hikes Debt Expiry Profile 1,600 Bond Bank Loan Debt $ million 1,400
Slide 28: Singapore Operations
Singapore Operations
Slide 29: Singapore Property Development
Singapore Property Development Residential Units Sold by CDL 1H 2018 1H 2017 $1,285,965 691 $1,146,778 728,819 651 627,819 Sales Value 12.1% yoy Units Sold 5.8% yoy No. of Units* Sales Value* Total Floor Area* (#039;000) (sq ft) * Includes share of JV partners 29
Slide 30: New Futura – Sold units, including 2 penthouses
Singapore Property Development New Futura – Sold 92 units, including 2 penthouses Location Tenure Equity Total Total Units % Total Saleable Stake Units Sold* Sold* Area (sq ft) Leonie Hill Road Freehold 100% 124 92 74% 248,199 Strong Response to Private Previews: - South Tower: 18 Jan 2018 - North T
Slide 31: The Tapestry – Sold 89% out of 550 units released
Singapore Property Development The Tapestry – Sold 89% out of 550 units released Location Tenure Equity Total Units Total % Total Stake Units Released Units Sold*~ Saleable Sold* Area (sq ft) Tampines Ave 99-year 100% 861 550 488 89 652,950 10 leasehold Good uptake since sales started on 24 Mar 2018
Slide 32: Limited Inventory of Launched Residential Projects
Singapore Property Development Limited Inventory of Launched Residential Projects – As of 30 Jun 2018 CDL’s Share of % Total Unsold Project Equity Stake Total Units Units Sold Unsold Sold Inventory Inventory St. Regis Residences 33% 173 161 93% 12 4.0 The Oceanfront @ Sentosa Cove 50% 264 263 100% 1
Slide 33: Diversified Residential Launch Pipeline
Diversified Residential Launch Pipeline CDL’s Pipeline comprises EC, Mass Market, Mid-Tier & High End segments Project / Site Tenure Equity Total Units Est Total Land Price Land Cost Expected Stake Saleable Area ($ million) ($ psf ppr) Launch (sq ft) Whistler Grand 716 units + 99-year leasehold 100%
Slide 34: Rental Properties – Singapore Office Portfolio
Rental Properties – Singapore Occupancy & Lease Expiry Profile (2H 2018 – 2020) As of 30 June 2018 Office Retail Portfolio Portfolio 16 properties 19 properties NLA: 2.3million sq ft NLA: 845,000 sq ft 91.9% 96.1% Occupancy* Occupancy^ REPUBLIC PLAZA CITY SQUARE MALL % of NLA % of NLA 39.1% Expiring
Slide 35: International Operations
International Operations
Slide 36: International Operations – Australia
International Operations – Australia Focus on Increasing Exposure in Australia Brisbane Sydney Luxury Retirement Housing Projects: Collaboration with Waterbrook Lifestyle Resorts on 2 Freehold Luxury Retirement Housing Projects in Sydney & NSW for A$57 million Developments offer a high-end hospita
Slide 37: International Operations – China
International Operations – China Focus on Tier 1 and Tier 2 Cities Suzhou (苏州) Continued Sales Chongqing (重庆) Momentum: Relaunched in May 2018 Total sales of RMB 3.69 Sold 24 units to date* billion generated for 86% Sales value of of 1,804 units to date*^ RMB 133 million Phase 1 – 92% sold with
Slide 38: E-House – China Leading Real Estate Brokerage Firm
E-House – China Leading Real Estate Brokerage Firm Cornerstone Investor in E-House IPO – Investment of HK$237.8 million CDL is the only corporation outside Greater China to be cornerstone investor Other Cornerstone Investors: e-commerce giant Alibaba, China state-owned Overseas Chinese Town Hold
Slide 39: International Operations – Japan
International Operations – Japan Two Prime Freehold Residential Projects in Tokyo Park Court Aoyama The Tower Completed in Q1 2018: 160-unit freehold JV residential project launched in Oct 2016 Freehold site in Shirokane Units are progressively being handed over – 135 units handed over* Land Ban
Slide 40: International Operations – UK
International Operations – UK EstablishedStrong Project Pipelinein Greater London Under Construction Projects to be Completed in 2018 & 2019 Artist’s Impression GoodProgresson Launch in Chelsea Knightsbridge Belgravia Planning September Applications 2018 Artist’s Impression Artist’s Impression Artis
Slide 41: Fund Management
Fund Management
Slide 42: Fund Management Route Map
Fund Management Route Map AUM Target – US$5 billion by 2023 TWO-PRONGED STRATEGY ORGANIC GROWTH MERGERS & ACQUISITIONS • Partner with institutional investors in countries and • Accelerate growth of the fund management business asset classes where the Group has deep domain through acquisitions: knowl
Slide 43: Hospitality
Hospitality
Slide 44: M&C Hotel Operations
M&C Hotel Operations Trading Performance Reported Constant Currency Currency 1H 2018 1H 2017 Change 1H 2017 Change Revenue £477m £485m (1.6%) £463m 3.0% Revenue (hotel) £404m £418m (3.3%) £399m 1.3% Profit before tax £65m £63m 3.2% £61m 6.6% PATMI £28m £42m (33.3%) Group RevPAR : ↓ 4.3% in 1H 2018
Slide 45: M&C Hotel Operations
M&C Hotel Operations Trading Performance RevPAR in reported currency fell by 4.3% but in constant currency was up by 0.5% for 1H 2018 as compared to the same period last year; 1H 2018 Reported Currency Constant Currency New York £141.11 ↓ 2.6% ↑ 6.0% Regional US £55.25 ↓ 9.6% ↓ 1.6% Total US £83.5
Slide 46: M&C Hotel Operations – Asset Enhancement
M&C Hotel Operations Asset Enhancement Artist’s Impression Artist’s Impression Millennium Hotel London Mayfair Orchard Hotel Singapore Started refurbishment in Nov 2017 and scheduled Commence renovation works at the hotel’s lobby and to open in Q1 2019 food & beverage outlets, which is expected
Slide 47: CDL Hospitality Trusts
CDL Hospitality Trusts Trading Performance S$’000 1H 2018 1H 2017 Change Gross Revenue 99,508 94,249 5.6% Net Property 71,416 70,778 0.9% Income (NPI) Pullman Hotel Munich Gross revenue and NPI increased mainly due to : Inorganic contribution from both The Lowry Hotel and Pullman Hotel Munich whic
Slide 48: Innovation
Innovation
Slide 49: Investments into Synergistic PropTech
Investments into Synergistic PropTech China’s Leading Operator of Co-working Space Invested RMB 102 million to date Acquired 24% equity stake for RMB 72 million in Jan 2017 In Sep 2017, participated in Series A Funding of RMB 200 million CDL is Distrii’s second largest shareholder after its
Slide 50: Investments into Synergistic PropTech
Investments into Synergistic PropTech China’s Fast-Growing Online Apartment Rental Platform Invested RMB 110 million to date Acquired 20% equity stake for RMB 100 million in Sep 2016 Followed Series A round in Dec 2017 Growth Charter 230,000 apartment listings across 30 cities in China P
Slide 51: Investments into Synergistic PropTech
Investments into Synergistic PropTech Partnerships with Venture Capital (VC) Funds in Major Technology Hubs Globally Platform Strategic Partnerships with VC Funds Dragonrise Capital is an established technology-focused VC fund manager and investor in China, based in Beijing, Shanghai and Shenzhen
Slide 52: 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 53: Appendix
Appendix
Slide 54: Diversified Global Portfolio
Diversified Global Portfolio Deepening Presence in Key Markets Geographical diversification allows flexibility to capitalise on opportunities Others Others 19% 19% Singapore 53% Singapore 53% US US 10% Revenue 8% Assets China China 9% 11% UK UK 7% 11% 1H 2018 54
Slide 55: Portfolio Composition – 1H 2018
Portfolio Composition – 1H 2018 Recurring Income Segments Property Hotel Rental S$ million Others Total Development Operations Properties EBITDA * Local 185 36 75 12 308 Overseas 157 94 71 2 324 342 130 146 14 632 Total Assets ^ Local 6,140 661 3,361 618 10,780 Overseas 3,198 4,755 1,249 235 9,437 9
Slide 56: Grow Global Footprint
Grow Global Footprint Strategic Investments and Diversifications YTD 2018 YTD 2018: CHINA >> E-House IPO – HK$237.81 million $1.1 billion* >> Acquisition of Yaojiang International building in Shanghai’s prime North Bund district for RMB 148 million Acquisitions & investments Key Markets: Singapore,
Slide 57: Diversified Land Bank – CDL’s Attributable Share
Diversified Land Bank – CDL’s Attributable Share Land Area (as of 30 Jun 2018) Type of Development Land Area (sq ft) Singapore International Total % Residential 1,028,489 1,714,143 2,742,632 95 Commercial / Hotel 20,886 132,706 153,592 5 Total 1,049,375 1,846,849 2,896,224 100 Proposed GFA (as of 30
Slide 58: Singapore Property Market
Singapore Property Market Property Price Index – Residential (2013 – 1H 2018) All Residential Beginning of 180 Residential Market Recovery 160 Q2 18 149.0 140 120 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 Sourc
Slide 59: Completed Residential Projects in 1H 2018
Singapore Property Development Completed Residential Projects in 1H 2018 Project Location Equity Total Units % Sold* TOP Obtained Stake Coco Palms Pasir Ris Grove / 51% 944 99 Phase 1 – Jan 2018 Pasir Ris Drive 1 Phase 2 – April 2018 The Criterion Exec Condo (EC) Yishun Street 51 70% 505 100 Feb 201
Slide 60: Singapore Commercial Market
Singapore Commercial Market Property Price Index – Commercial (2013 – 1H 2018) 150 Office Retail Q2 18 140 135.6 130 120 Q2 18 110.5 110 100 90 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 Source : URA, Q2 2018
Slide 61: Singapore Commercial Market
Singapore Commercial Market Property Rental Index – Commercial (2013 – 1H 2018) 250 Office Retail 200 Q2 18 170.3 150 Q2 18 100 98.2 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 Source : URA, Q2 2018 61
Slide 62: China – Project Development
China – Project Development China – Chongqing JV Projects Eling Palace (鹅岭峯) and Huang Huayuan (黄花园) Project Tenure Equity Total Expected Stake Units Completion Eling Palace 50% 126 Completed 50-year- Huang Huayuan lease (To be rebranded as 30% >700 2020 Emerald 翡翠都会) Eling Palace: Eling Palace, C
Slide 63: China – Development / Recurring Income Projects
China – Development / Recurring Income Projects New Milestone for SuzhouMixed-use WaterfrontProject Hong LeongCityCenter(丰隆城市中心) Equity Total Total Units % Tenure Expected Completion Stake Units Sold* Sold* 70 years (Residential)/ 40 years 100% 1,804 1,548^ 86 Completed (Phase 1 & 2~) (Commercial)
Slide 64: China – Recurring Income Projects
China – Recurring Income Projects Hong Leong Plaza Hongqiao, Shanghai Tenure Equity Stake Est. Total GFA (sqm) 50-year lease 100% 32,182 The project was completed in Q4 2017, and comprises five office towers with two levels of basement carparks. Legal completion certification obtained in July 2018
Slide 65: UK – Property Development
UK – Property Development UK – Planning Approvals Obtained 28 Pavilion Road, Knightsbridge, London Tenure Equity Stake Est. Total Saleable Area (sq ft) Total Units Freehold 100% 135,379 24 Currently a freehold car park site of 102,000 sq ft. It has just obtained planning approval to be converted i
Slide 66: UK – Property Development
UK – Property Development UK – Projects under Construction Teddington Riverside, Teddington TW11 Est. Total Equity Total Expected Tenure Saleable Stake Units Completion Area (sq ft) Freehold 100% 233,552 240 Q1 2020 Target relaunch in September 2018 with new 1, 2, 3- bedroom show units and a marke
Slide 67: UK – Property Development
UK – Property Development UK – Projects under Construction Belgravia Knightsbridge Chelsea Artist’s Impression Belgravia (Chesham Street) Knightsbridge (Hans Road) Chelsea (Sydney Street) Total Units 6 units 3 units 9 units Expected Q3 2018 Q3 2018 Q1 2019 Completion Tenure Freehold Freehold Freehol
Slide 68: M&C Hotel Room Count and Pipeline
M&C Hotel Operations Hotel Room Count and Pipeline Hotels Rooms 30 Jun 31 Dec 30 Jun 31 Dec Hotel and Room Count 2018 2017 2018 2017 By region: ● New York 4 4 2,238 2,238 ● Regional US 15 15 4,559 4,559 ● London 8 8 2,602 2,649 ● Rest of Europe 22 21 3,655 3,528 ● Middle East * 32 31 10,521 10,346 ●
Slide 69: www.cdl.com.sg
New Futura, Singapore www.cdl.com.sg