Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — H1 2020 Earnings Presentation
41 slides from Wing Tai Properties's earnings presentation, 2020
Slide 1: Wing Tai Properties Limited Interim Results 2020
Wing Tai Properties Limited Interim Results 永泰地產有限公司 2020
Slide 2: Agenda
Agenda A Snapshot of 1H 2020 • Key Achievements • Land Bank Business Review • Property Development • Property Investment & Management • Hospitality Investment & Management • Strengthened Capital Structure Future Plans & Strategies 2020 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 2020
A Snapshot of 1H 2020
Slide 5: Key Achievements
KEY ACHIEVEMENTS • We achieved core consolidated profit attributable to shareholders, excluding change in fair value on investment properties and financial instruments including joint ventures, of HK$287 million, an increase of HK$48 million, compared with HK$239 million in 2019, despite marking dow
Slide 6: Key Achievements – Cont'd
KEY ACHIEVEMENTS – CONT’D • Landmark East, our flagship Grade A twin office towers in Hong Kong, has managed to maintain its average occupancy rate and rental income in the first half of 2020 amidst the pandemic. Our commercial properties in London have also recorded a stable occupancy during the re
Slide 7: Balanced and Diversified Land Bank in Hong Kong
Balanced and Diversified Land Bank in Hong Kong 1 2 3 4 1 Gage Street/Graham 3 5 4 2 Street, Central 66 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 2020)
Land Bank (as at 30 June 2020) Strategic land bank with focus in Hong Kong Land Bank Overview (sq. ft.) Investment Property By Business Segment Hospitality & Others 15% Property Investment Industrial development Property 9% 19% 81% Office 76% Valuation as at Attributable Hong Kong London Others Tota
Slide 9: Business Review
BUSINESS REV F < a ++ Tr ‘ mm Ce HO 5S aE = al ee
Slide 10: Property Development
Property Development
Slide 11: Sales and Development Pipeline
Sales and Development Pipeline (as at 30 JUNE 2020) A sustainable and scalable project pipeline Available Estimated Completion Saleable Area / Property Development Portfolio Gross Beyond Group’s 2021 2022 Floor Area 2022 Interest (’000 sq. ft.) Hong Kong Le Cap* 104 35% Completed Development La Vett
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 • Cumulatively approximately 29% of the residential units were sold as at 30 June 2020 12
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 • Cumulatively approximately 30% of the residential units were sold as at 30 June 2020 13
Slide 14: Completed Development in Hong Kong – Cont'd
Completed Development in Hong Kong – CONT’D The Carmel (178 units), Siu Sau, Tai Lam, Tuen Mun • Saleable area of approximately 147,000 sq. ft. • Low-density residential development • In 1H 2020, approximately 4% and 88% of the residential units were sold and handed over, respectively • Cumulatively
Slide 15: Project Under Development in Hong Kong
Project Under Development in Hong Kong OMA OMA (466 units), So Kwun Wat Road, Tuen Mun • Saleable area of approximately 234,000 sq. ft. • Medium-density residential development • In 1H 2020, approximately 12% of the residential units were sold • Cumulatively approximately 83% of the residential unit
Slide 16: Project Under Development in Hong Kong – Cont'd
Project Under Development in Hong Kong – CONT’D OMA by the Sea (517 units), Castle Peak Road, Tai Lam, Tuen Mun • Saleable area of approximately 252,000 sq. ft. • Medium-density residential development • Pre-sale consent obtained in March 2020 and pre-sale was launched in May 2020 • Around 62% of th
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
Slide 19: Investment Portfolio in Hong Kong
Investment Portfolio in Hong Kong Gross floor area Occupancy as at (’000 sq. ft.) 30 June 2020 Grade A Offices Landmark East (AIA Kowloon Tower/ 1,338 92% AXA Tower) Industrial Property Shui Hing Centre 187 91% 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 Commercial Property at Cavendish Square, West End • Group’s interest of 33% • Net internal area of ap
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 As at 30 June 2020, the above three joint venture properties ac
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 2020, approximately 94% of the units were leased 23
Slide 24: Hospitality Investment & Management
HOSPITALITY Investment & Management
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 Aroma Garden, Shanghai 162 units 79 units Two MacDonnell Road, Chengdu One Sunland, Shanghai Hong Kong Shanghai 213 units 188 units Hong Kong Manila Parkside, Shanghai Winsland, Singapore Kuala Lumpur 182 unit
Slide 27: Hospitality Investment and Management
Hospitality Investment and Management • Occupancy rate of our Lanson Place Hotel in Hong Kong has dropped sharply due to global travel ban from COVID-19, resulted in operating loss for the first time and significant drop in asset valuation in view of slow recovery outlook. • Lanson Place currently m
Slide 28: Hospitality Investment and Management – Cont'd
Hospitality Investment and Management – CONT’D • Awards and recognitions: Lanson Place Hotel and Two MacDonnell Road , Hong Kong: “2020 Traveler’s Choice Award” by TripAdvisor Tianfu Square Serviced Suites by Lanson Place: “Best New Serviced Residence in China” at Business Traveller China Aw
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$10
Slide 30: Future Plans & Strategies
Future Plans & Strategies
Slide 31: Future Plans & Strategies
Future Plans & Strategies In near term In mid-to-long term Property • Continue the sale of the remaining units • Increase the number of residential and Development of our Upper Gold Coast series, namely commercial properties through active The Carmel , OMA OMA and OMA by participation in government’
Slide 32: 2020 Interim Results Highlights
2020 Interim Results Highlights
Slide 33: Financial Results Summary
Financial Results Summary For the six months ended 30 June (HK$’M) 2020 2019 Revenue 1,957 424 362% Gross profit 623 341 83% Change in fair value on investment properties and (773) (27) 2763% financial instruments including joint ventures (Loss)/profit from operations (334) 197 N/A (Loss)/profit att
Slide 34: Segment Results Overview
Segment Results Overview For the six months ended 30 June (HK$’M) 2020 2019 Property Development Revenue 1,591 12 13158% Fair value changes in investment properties and financial instruments including joint ventures (51) 2 N/A Profit before taxation 87 29 200% Profit before taxation excludin
Slide 35: Segment Results Overview – Cont'd
Segment Results Overview – CONT’D For the six months ended 30 June (HK$’M) 2020 2019 Hospitality Investment & Management Revenue 28 71 61% Fair value changes in investment properties including joint (171) (10) 1610% ventures Loss before taxation (195) (1) 19400% (Loss)/profit before taxation
Slide 36: Balance Sheet Summary
Balance Sheet Summary 30 June 31 December (HK$’M) 2020 2019 Total assets 36,098 36,323 1% Net assets 27,842 28,624 3% Equity attributable to shareholders of the company 26,325 27,102 3% Investment properties 19,916 20,427 3% Properties for sale 4,107 4,910 16% Bank balances and cash 2,349 1,740 35%
Slide 37: Balance Sheet Summary – Cont'd
Balance Sheet Summary – CONT’D 30 June 31 December (HK$’M) 2020 2019 Total borrowings 5,066 4,681 8% Net borrowings 2,717 2,941 8% Gearing ratio 9.8% 10.3% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 343 7% 147 3% Between one and two years 1,756 35% 1,261
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 Propel residential property development operations by prudently building up the 2 land bank Owns a diversified portfolio
Slide 40: Five Years' Financial Summary
Five Years’ FiNaNCial summarY Interim Results Full Year Results 1H 2020 1H 2019 2019 2018 2017 2016 2015 (HK$’M) (Note 1) (Note 1) (Note 2) RESULTS Revenue 1,957 424 830 885 1,064 1,103 1,009 (Loss)/profit before taxation (411) 285 375 1,432 2,101 1,260 1,182 Taxation (47) (40) (70) (53) (99) (111)
Slide 41: Five Years' Financial Summary – Cont'd
Five Years’ FiNaNCial summarY – CONT’D As at 30 June As at 31 December 1H 2020 2019 2018 2017 2016 2015 (HK$’M) ASSETS AND LIABILITIES Total assets 36,098 36,323 35,428 35,496 30,776 28,221 Total liabilities (8,256) (7,699) (6,706) (7,686) (6,464) (4,874) Total equity 27,842 28,624 28,722 27,810 24,