Slide 1: Q1 2016 Results Presentation
Q1 2016 RESULTS PRESENTATION (1 Jan – 31 Mar 2016) 11 May 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 Acquisition of CDL’s first commercial redevelopment project in UK: – Development House, Leonard Street in Shoreditch – £37.4 million Strong progress on international growth strategy: – Key projects in Australia, China, Japan and United Kingdom – Profits to be booked from overseas
Slide 5: Financial Performance in a Challenging Environment
Financial Performance in a Challenging Environment Summary of Financial Results Q1 Q1 % 2016 2015 Change Revenue ($m) 723 815 (11.2) PATMI ($m) 105 123 (14.4) Basic Earnings Per Share (cents) 11.6 13.5 (14.1) NAV Per Share ($) 9.85 9.43 4.5 Return on Equity (%) 1.18 1.43 (0.3) pts No fair values ado
Slide 6: Portfolio Composition – Q1 2016
Portfolio Composition – Q1 2016 Recurring Income Segments Property Hotel Rental S$ million Others Total Funds Development Operations Properties EBITDA * Local 70 18 42 7 137 Overseas 7 26 26 9 68 77 44 68 16 205 Total Assets ^ Local 6,955 554 3,290 270 11,069 AUM = Overseas 2,893 4,719 1,026 228 8,8
Slide 7: Portfolio Composition – Q1 2016
Portfolio Composition – Q1 2016 EBITDA Total Assets Local Overseas 67% 33% Local Overseas 56% 44% • Stability from Recurring Income segments comprising 62% of EBITDA / 51% 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 Mar 2016) – 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 9: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 10: Financial Highlights
Financial Highlights Segment Financial Results Revenue Profit Before Tax Q1 Q1 Incr/ Q1 Q1 Incr/ 2016 2015 (Decr) 2016 2015 (Decr) $M $M % $M $M % Property Development 223.3 298.6 (25.2) 76.5 97.8 (21.8) Hotel Operations 359.4 376.0 (4.4) 10.8 33.7 (68.0) (include CDL owned hotels) Rental Properties
Slide 11: Revenue by Segment for Q1 (2014 – 2016)
Financial Highlights Revenue by Segment for Q1 (2014 – 2016) 600 $723m $815m $734m 500 400 360 376 354 $ million 299 300 257 223 200 93 99 95 100 47 41 28 0 Q1 2016 Q1 2015 Q1 2014 Property Development Hotel Operations Rental Properties Others Q1 2016 Q1 2015 Q1 2014 Property Development 31% 37% 35%
Slide 12: Profit Before Tax by Segment for Q1 (2014 – 2016)
Financial Highlights Profit Before Tax by Segment for Q1 (2014 – 2016) 140 $138m $169m $157m 120 98 95 100 77 80 $ million 60 41 38 34 37 31 40 20 11 9 - 0 (20) (7) Q1 2016 Q1 2015 Q1 2014 Property Development Hotel Operations Rental Properties Others Q1 2016 Q1 2015 Q1 2014 Property Development 56%
Slide 13: EBITDA by Segment for Q1 (2014 – 2016)
Financial Highlights EBITDA by Segment for Q1 (2014 – 2016) $205m $239m $221m 120 103 97 100 77 $ million 80 68 65 68 67 57 60 44 40 16 20 3 - 0 Q1 2016 Q1 2015 Q1 2014 Property Development Hotel Operations Rental Properties Others Q1 2016 Q1 2015 Q1 2014 Property Development 38% 43% 44% Hotel Opera
Slide 14: Robust Balance Sheet
Financial Highlights Robust Balance Sheet As at 31/03/16 As at 31/12/15 Cash and cash equivalents $3,343m $3,565m Net borrowings $2,848m $2,938m Net gearing ratio without taking in fair value 26% 26% gains on investment properties Net gearing ratio after taking in fair value gains 19% 19% on investm
Slide 15: Prudent Capital Management
Financial Highlights Prudent Capital Management Debt Expiry Profile Debt Maturity Within 1 year 2,000 29% Debt $ million Bond Bank Loan 31% 1 to 2 years 1,500 279 320 250 2 to 3 years 1,000 424 17% More than 3 1,169 1,151 23% years 500 981 287 455 605 266 0 4 2016 2017 2018 2019 2020 2021 onwards De
Slide 16: Singapore Overview
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Slide 17: 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 Revis
Slide 18: Singapore Property Development
Singapore Property Development Upcoming Residential Project Launch Project Location Tenure Equity Total Total % Expected Stake Units Saleable Completed TOP Area (sq ft) Gramercy Park Grange Road Freehold 100% 174 368,743 94.2* Q2 2016 Exclusive 174-unit residence located a short distance from Orch
Slide 19: Singapore Property Development
Singapore Property Development Inventory of Launched Residential Projects – As of 31 Mar 2016 Project Equity Total Units % Total Unsold CDL’s Share of Stake Units Sold Sold Inventory* Unsold Inventory* St. Regis Residences 33% 173 161 93.1 12 4.0 The Oceanfront @ Sentosa Cove 50% 264 263 99.6 1 0.5
Slide 20: Singapore Property Development
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 21: Singapore Property Market
Singapore Property Market Property Price Index – Commercial (2011 – Q1 2016) 160 Q4 15 Q1 16 138.6 138.2 140 120 Q4 15 Q1 16 129.6 127.1 100 80 60 Office Retail 40 20 0 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 Sourc
Slide 22: Singapore Property Market
Singapore Property Market Office Space Demand & Supply (2012 – Q1 2016) Private & Public Sector Cumulative Supply Occupancy 85,000 80,095 81,300 81,365 81,117 78,254 80,000 72,980 73,647 73,657 75,000 72,205 70,913 70,000 65,000 60,000 55,000 CDL’s Office Properties 50,000 Average Occupancy 45,000 9
Slide 23: Singapore Property Market
Singapore Property Market Retail Space Demand & Supply (2012 – Q1 2016)* Private & Public Sector Cumulative Supply Occupancy 66,000 64,271 64,476 64,000 63,658 62,000 61,333 60,052 59,955 59,632 59,750 60,000 58,599 58,000 57,060 56,000 CDL’s Retail Properties Average Occupancy 54,000 93.4% (Higher
Slide 24: International Overview
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Slide 25: International Property Development
International Property Development Projects Launched To Date* Project City Equity Total Total % Sold Est. Total Expected Stake Units Units Sold / Saleable Completion Reserved Area (sq ft) Australia Ivy and Eve Brisbane 33%# 472 373 80 348,678 1H 2018 China Hong Leong City Suzhou 70% 1,374 894 65 1,3
Slide 26: International Property Development
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 Hong Leong City Suzhou 70-year lease 70% 430 448,844 Q4 2017 Center (Phase 2) Eling Residences Chongqing
Slide 27: International Property Development
International Property Development Australia Merivale Street Residential Project – Ivy and Eve City Equity Total Total Units % Sold Expected Stake Units Sold Completion Brisbane 33%# 472 373 80% 1H 2018 Freehold project on 2,733 sqm site with two 30-storey towers of 1-, 2- and 3-bedroom apartments
Slide 28: International Property Development
International Property Development China – Strong Sales from Launched Projects; Profits to be booked from 2H 2016 Suzhou – Hong Leong City Center (丰隆城市中心) Equity Total Total Units % Sold Expected Stake Units Sold Completion 70% 1,374 894 65 Q4 2016 Mixed-use waterfront project in Suzhou Industrial
Slide 29: International Property Development
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 30: International Property Development
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 Planned redevelopment into a luxury condominium Site to include a public park and open space to support the loc
Slide 31: International Property Development
International Property Development UK – Acquisition of First Commercial Redevelopment Project London – Development House, Shoreditch Tenure Equity Stake Est. Total Lettable Area (sq ft) Freehold 100% 90,000 Existing 6-storey, 28,266 sq ft office building Strategic location 200 metres from Old St
Slide 32: International Property Development
International Property Development UK – Launched Projects London – Hanover House, Reading RG1 Equity Total Total Units % Expected Stake Units Sold / Sold Completion Reserved 100% 82 82 100 Q3 2016 All 82 units released – 81 contracts have been exchanged for sale and final unit under offer Artist’s
Slide 33: International Property Development
International Property Development UK – Pipeline Projects London Project Tenure Equity Total Est. Total Saleable Planning Approval in Progress: 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 Chels
Slide 34: International Property Development
International Property Development UK – Pipeline Projects London – Stag Brewery, Mortlake Tenure Equity Total Est. Total Saleable Area Stake Units (sq ft) Freehold 100% TBC 1,000,000 Site planning for mixed scheme in progress Planning approval expected in Q1 2018 and development to be executed i
Slide 35: Hotel Operations
HOTEL OPERATIONS
Slide 36: M&C Hotel Operations
M&C Hotel Operations Trading Performance Q1 2016 Q1 2015 Change Revenue £192m £189m 1.6% PATMI £6m £8m (25%) RevPAR decreased for Q1 2016 mainly due to: Reported Currency Constant Currency New York ↓ 8.6% ↓ 14.3% Regional US ↓2.9% ↓ 3.6% Total US ↓ 3.3% ↓ 9.4% Millennium Bailey’s Hotel London Lond
Slide 37: M&C Hotel Operations
M&C Hotel Operations Assets Enhancement (On-going) US Millennium Hotel Durham Millennium Biltmore Hotel Los Angeles ONE UN New York Postponed to May 2016 with a scheduled In progress and scheduled to complete by mid 2017 Targeted for completion in Q3 2016 completion date by the end of 2016 Others Gr
Slide 38: M&C Hotel Operations
M&C Hotel Operations Hotel Room Count and Pipeline Hotels Rooms 31 Mar 31 Dec 31 Mar 31 Dec Hotel and Room Count 2016 2015 2016 2015 By region: ● New York 4 4 2,238 2,238 ● Regional US 15 15 4,464 4,463 ● London 8 8 2,651 2,651 ● Rest of Europe 18 18 2,867 2,867 ● Middle East * 23 22 6,658 6,450 ● S
Slide 39: CDL Hospitality Trusts
CDL Hospitality Trusts Trading Performance S$’000 Q1 2016 Q1 2015 Change Gross Revenue 44,664 42,212 5.8% Net Property 33,710 34,497 (2.3%) Income (NPI) Hilton Cambridge City Centre Gross revenue increased mainly due to : Contribution from Hilton Cambridge City Centre, United Kingdom, which was ac
Slide 40: 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 41: www.cdl.com.sg South Beach, Singapore
Option 1 www.cdl.com.sg South Beach, Singapore