31 slides from City Developments's shareholder meeting presentation, Apr 25, 2018
Slide 1: Annual General Meeting
Annual General Meeting 25 April 2018
Slide 2: Agenda
AGENDA KEY HIGHLIGHTS SINGAPORE OPERATIONS INTERNATIONAL OPERATIONS HOSPITALITY STRATEGIC INITIATIVES New Futura – Penthouse I Singapore
Slide 3: Key Highlights
KEY HIGHLIGHTS New Futura I Singapore
Slide 4: Key Financial Highlights – FY 2017
Key Financial Highlights – FY 2017 FY 2017 FY 2016 Change YoY Revenue $3.829 billion $3.905 billion 2.0% EBITDA $1.061 billion $1.216 billion 12.7% PATMI $538.2 million $653.2 million 17.6% Basic EPS 57.8 cents 70.4 cents 17.9% NAV per share $10.54 $10.22 3.13% ROE 5.62% 7.03% 1.41 pts Excluding d
Slide 5: Share Price Performance
Share Price Performance Strong Performance for FY 2017 2017 HIGHEST CLOSE - $13.00 (19 Oct) $12.49* $12.49 (29 Dec) 50.3% in 2017 $8.31 (3 Jan) FY 2017 FY 2017 Proposed Dividend Total Shareholder Comprises: 18.0 cents per share • Special Final Dividend Return: – 6.0 cents 12.5% • Final Dividend 53%^
Slide 6: Extensive Global Network
Extensive Global Network Strategic Acquisitions & Investments in FY 2017 UK & EUROPE >> Acquired Ransomes Wharf mixed CHINA development site in Battersea for £58 million >> Acquired Meidao Business Plaza (now >> Acquired The Lowry Hotel in Manchester for known as Hong Leong Plaza Hongqiao) £52.5 mil
Slide 7: Recognition for Performance Excellence
Recognition for Performance Excellence Key Accolades in FY 2017 BUSINESS & PERFORMANCE • Euromoney Real Estate Survey 2017 - Best Residential Estate Developer in Singapore • FinanceAsia Asia’s Best Managed Companies Poll 2017 - #3 Best Managed Company in Singapore - #3 Best in Corporate Social Respo
Slide 8: Singapore Operations
SINGAPORE OPERATIONS The Brownstone Executive Condominium I Singapore
Slide 9: Singapore Property Development
Singapore Property Development Completed Residential Projects in 2017 – Total of 2,785 apartments Project Location Equity Total % Sold* TOP Obtained Stake Units The Venue Residences Tai Thong Crescent 60% 266 99 Apr 2017 D’Nest Pasir Ris Grove 51% 912 100 Phase 1 – Jul 2017 Phase 2 – Oct 2017 New Fu
Slide 10: Singapore Property Development
Singapore Property Development Residential Units Sold FY 2017 FY 2016 1,269,641 1,171 units sold 1,171 One of Singapore’s top-selling $1,928,112 private developers for FY 2017 974,666 1,017 Sales Value $1,245,726 55% yoy Units Sold 15% yoy No. of Units* Sales Value* Total Floor Area* (#039;000) (sq ft)
Slide 11: New Futura – Strong Response to Private Preview
Singapore Property Development New Futura – Strong Response to Private Preview Location Tenure Equity Total Total Units % Total Saleable Stake Units Sold* Sold* Area (sq ft) Leonie Hill Road Freehold 100% 124 62 50 248,199 Private Preview commenced on 18 Jan 2018: To date, 62 units sold – includin
Slide 12: The Tapestry – units sold over Launch Weekend
Singapore Property Development The Tapestry – 315 units sold over Launch Weekend Location Tenure Equity Total Total Units % Total Saleable Stake Units Sold Sold* Area (sq ft) 99-year Tampines Ave 10 100% 861 363 42 652,950 leasehold Commenced Sales on 24 Mar 2018: To date, 363 units have been sold
Slide 13: Residential Projects Available for Launch
Singapore Property Development Residential Projects Available for Launch – Pipeline of over 3,500 units 5 new site acquisitions since April 2017, together with 2 unlaunched projects, have increased pipeline to over 3,500 units West Coast Vale - $472.4 million Sumang Walk - $509.37 million* GLS site
Slide 14: Rental Properties
Rental Properties Lease Expiry Profile (2018 – 2020) As of 31 Dec 2017 Office Retail Portfolio Portfolio 16 properties 19 properties NLA: 2.3 million sq ft NLA: 844,000 sq ft 94.8% 97.4% Occupancy* Occupancy^ REPUBLIC PLAZA CITY SQUARE MALL % of NLA % of NLA Expiring Expiring 34.5% 35.4% 28.5% 30.5%
Slide 15: International Operations
INTERNATIONAL OPERATIONS Ransomes Wharf I London, UK
Slide 16: International Operations – China
International Operations – China Focus on Tier 1 and Tier 2 Cities Suzhou (苏州) FY 2017 Highlight: Continued good uptake for residential Chongqing (重庆) units of mixed-use waterfront project Phase 1: Tower 1 (462-unit residential) & Tower 3 (912-unit SOHO) Phase 2: Tower 2 (430-unit residential),
Slide 17: International Operations – UK
International Operations – UK Established Strong Project Pipeline in Greater London Under Construction Projects to be Completed in 2018 & 2019 Artist’s Impression Good Progress on Chelsea Knightsbridge Belgravia Planning Applications Under Construction Expected completion of Phase 1 in Q4 2018 Artis
Slide 18: International Operations – Japan
International Operations – Japan Two Prime Freehold Residential Projects in Tokyo Freehold site in Shirokane Highlight: Prime 180,995 sq ft freehold site acquired in Sep 2014 to be land banked for value appreciation Various design options to maximise the potential of the Park Court Aoyama The To
Slide 19: International Operations – Australia
International Operations – Australia Strategic Investment into Luxury Retirement Sector Sydney Brisbane FY 2017 Highlight: Collaboration with Waterbrook Lifestyle Resorts on 2 Freehold Luxury Retirement Housing Projects in Sydney & NSW for A$57 million Developments offer a high-end hospitality exp
Slide 20: Hospitality
HOSPITALITY M Social Auckland I New Zealand
Slide 21: M&C – Lapsed Final Cash Offer
M&C – Lapsed Final Cash Offer Final Cash Offer of 620 pence for each M&C Share lapsed on 26 Jan 2018, 1300 GMT Valid Acceptances of 47.14% as of Final Closing – Did not meet threshold for offer to turn unconditional Lapsed: Recommended Final Cash Offer Cash Consideration 620 pence Comprising 600 pen
Slide 22: M&C Hotel Operations
M&C Hotel Operations Trading Performance Reported Constant Currency Currency FY 2017 FY 2016 Change FY 2016 Change Revenue £1,008m £926m 8.9% £972m 3.7% Revenue (hotel) £880m £814m 8.1% £853m 3.2% Profit before tax £147m £108m 36.1% £114m 28.9% PATMI £124m £78m 59.0% In constant currency, Group Re
Slide 23: Strategic Initiatives
STRATEGIC INITIATIVES Republic Plaza I Singapore
Slide 24: Strategic Focus for 2018
Strategic Focus for 2018 Renewal and Transformation #1 #2 #3 GROWTH ENHANCEMENT TRANSFORMATION Property Asset Enhancement Fund Management Development Initiatives (AEI) Innovation Recurring Income Repositioning / New Platforms Streams Redevelopment Operational Efficiency 24
Slide 25: #1 Grow Property Development
GROWTH #1 Grow Property Development Build Land Bank for Future Development Income* Location Tenure Total Site Area Gross Floor Land Price Land Cost Units (sq ft) Area (sq ft) Tampines Ave 10 99-year 861 233,767 654,553 $370.1 million $565 psf ppr leasehold Amber Road Freehold Est 600 213,675 598,290
Slide 26: #1 Grow Recurring Income Streams
GROWTH #1 Grow Recurring Income Streams Strengthen Recurring Income from Asset Base Recurring Recurring EBITDA EBITDA 56% 55% Property Property Development Development $462 million, 44% $550 million, 45% 2017 2016 Recurring Recurring Income Income $599 million, 56% $666 million, 55% 26
Slide 27: #2 Asset Repositioning
ENHANCEMENT #2 Asset Repositioning Unlocking Value in Existing Asset Portfolio Republic Plaza – $70 million AEI Phased AEI works to commence in 1H 2018 Expected completion by 1H 2019 Includes creation of new retail cluster at Level 2 Total NLA (Post AEI): 785,000 sq ft Republic Plaza – Revam
Slide 28: #3 Establish Fund Management Platform
TRANSFORMATION #3 Establish Fund Management Platform Create New Recurring Income Streams & Raise 3rd Party Capital for Additional Acquisitions GOAL: TO BE A LEADING FUND MANAGER IN ASIA BY 2023 Generate Diversify Enhance new streams of earnings & expand capital recycling recurring income investor ba
Slide 29: #3 Innovation & New Platforms
TRANSFORMATION #3 Innovation & New Platforms Two-Pronged Approach: Strategic Investments & Enterprise-Driven Initiatives Investments in Internal Innovation New Economy Businesses Initiatives & Potential Disruptors Enterprise Innovation Committee China’s Fast-Growing China’s Leading Operator (EIC) On
Slide 30: 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 31: www.cdl.com.sg
New Futura I Singapore www.cdl.com.sg