Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — FY2020 Earnings Presentation
43 slides from Wing Tai Properties's earnings presentation, Apr 1, 2021
Slide 1: Wing Tai Properties Limited Annual Results 2020
Wing Tai Properties Limited Annual Results 永泰地產有限公司 2020
Slide 2: Agenda
Agenda • A Snapshot of 2020 • Key Achievements • Land Bank • Business Review • Property Development • Property Investment & Management • Hospitality Investment & Management • Strengthened Capital Structure • Future Plans & Strategies • 2020 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 2020
A Snapshot of 2020
Slide 5: Key Achievements
Key Achievements • Our core consolidated profit attributable to shareholders, excluding one-off gain and change in fair value on investment properties and financial instruments including joint ventures, was HK$456 million, an increase of HK$32 million, compared with HK$424 million in 2019. • Sold un
Slide 6: Key Achievements – CONT’D
Key Achievements – CONT’D • In February 2021, to expand and diversify our investment portfolio for more recurring leasing income, we acquired a 21% interest in Shoe Lane, a Grade A office building in a prime business hub on the western edge of The City of London, which office space is fully leased t
Slide 7: Balanced and diversified land bank in Hong Kong
Balanced and diversified land bank in hong kong 1 La Vetta 2 The Carmel *Artist impression 3 OMA OMA 8 4 OMA by the sea 1 Gage Street/Graham 3 5 2 Street, Central 4 6 Landmark East 7 6 7 Shui Hing Centre 5 9 10 8 Le Cap 89 Lanson Place Hotel Lanson Place 10 Waterfront Suites Development properties I
Slide 8: Land bank (as at 31 December 2020)
Land bank (as at 31 December 2020) Strategic land bank with focus in Hong Kong Land Bank Overview (sq.ft.) Investment Property By Business Segment Residential units 5% Hospitality 12% Investment Property Property Industrial Development 84% Office / 9% 16% Retail 74% Valuation as at Attributable Hong
Slide 9: Business Review
Business Review 9
Slide 10: Property development
Property development 10
Slide 11: Sale and development pipeline (As at 31 December 2020)
Sale and development pipeline (As at 31 December 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 Completed La Vetta* 216 35% Development Th
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 • In 2020, approximately 2% and 4% of the residential units were sold and handed over, respectively • Cumulatively app
Slide 13: Completed Development in Hong Kong – CONT’D (La Vetta)
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 • In 2020, approximately 5% and 6% of the residential units were sold and handed over, respectively • Cumulatively approximately
Slide 14: Completed Development in Hong Kong – CONT’D (The Carmel)
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 2020, approximately 8% and 97% of the residential units were sold and handed over, respectively • Cumulatively ap
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 2020, around 15% of the residential units were pre-sold • Cumulatively approximately 86% of the residential units were
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 74% 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 18
Slide 19: Investment portfolio in Hong Kong
Investment portfolio in hong kong Gross floor area Occupancy as at (’000 sq. ft.) 31 December 2020 Grade A Offices Landmark East (AIA Kowloon Tower/ 1,338 87% AXA Tower) Industrial Property Shui Hing Centre 187 85% Residential Property Le Cap 36* 100% * it represents the saleable area 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 31 December 2020, the above three joint venture propertie
Slide 23: Investment portfolio in London – CONT’D
Investment portfolio in London – CONT’D Commercial Property at Shoe Lane, the City • Acquired in February 2021 • Transaction is targeted for completion in April 2021 • Group’s interest of 21% • Net internal area of approximately 158,000 sq. ft. of Grade A office and retail space as well as ancillary
Slide 24: 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 31 December 2020, approximately 97% of the units were leased 24
Slide 25: Hospitality investment & management
Hospitality investment & management 25
Slide 26: 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 Causeway Bay, Hong Kong • Group’s interest: 100% • 194 units • A member of the “Small Chengdu Shanghai L
Slide 27: Hospitality portfolio – CONT’D
Hospitality portfolio – CONT’D Lanson Place Properties – Management Lanson Place Tianfu Square, Lanson Place Aroma Garden, Chengdu Shanghai 162 units 79 units Lanson Place Chengdu Lanson Place One Sunland, Two MacDonnell Road, Hong Kong Shanghai Shanghai 213 units 188 units Hong Kong Manila Lanson P
Slide 28: Hospitality investment and management
Hospitality investment and management • Occupancy rate and average room rates of our Lanson Place Causeway Bay 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 outlo
Slide 29: Hospitality investment and management – CONT’D (awards)
Hospitality investment and management – CONT’D • Awards and recognitions: Lanson Place Causeway Bay, Hong Kong: “2020 Traveler’s Choice Award” by TripAdvisor “Luxury Design Hotel” by World Luxury Hotel Awards 2020 Lanson Place Two MacDonnell Road , Hong Kong: “2020 Traveler’s Choice Award”
Slide 30: Hospitality investment and management – CONT’D (awards)
Hospitality investment and management – CONT’D • Awards and recognitions: (Cont’d) Lanson Place Bukit Ceylon, Kuala Lumpur: “2020 Traveler’s Choice Award” by TripAdvisor “Luxury Contemporary Serviced Apartments, Asia” by World Luxury Hotel Awards 2020 “Malaysia’s Leading Serviced Apartments”
Slide 31: 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$10
Slide 32: Future Plans & Strategies
Future Plans & Strategies 32
Slide 33: Future plans & strategies
Future plans & strategies In near term In mid-to-long term Property • Continue the sale of the remaining units • Expand residential and commercial Development of our “Upper Gold Coast series”, properties portfolio through active namely The Carmel , OMA OMA and participation in government’s land tend
Slide 34: 2020 Results Highlights
2020 Results Highlights 34
Slide 35: Financial results summary
Financial results summary For the year ended 31 December (HK$’M) 2020 2019 Revenue 2,778 830 235% Gross profit 1,000 666 50% Change in fair value of investment properties and (1,324) (191) 593% financial instruments including joint ventures (Loss)/profit from operations (492) 166 N/A Share of result
Slide 36: Segment results overview
Segment results overview For the year ended 31 December (HK$’M) 2020 2019 Property Development Revenue 2,054 26 7800% Fair value changes in investment properties and financial (58) (2) 2800% instruments including joint ventures Profit before taxation 279 15 1760% Share of results of joint ve
Slide 37: Segment results overview – CONT’D
Segment results overview – CONT’D For the year ended 31 December (HK$’M) 2020 2019 Hospitality Investment & Management Revenue 62 122 49% Fair value changes in investment properties including joint (202) (219) 8% ventures Loss before taxation (234) (232) 1% Loss before taxation excluding fai
Slide 38: Balance sheet summary
Balance sheet summary 31 December 31 December (HK$’M) 2020 2019 Total assets 37,246 36,323 3% Net assets 27,641 28,624 3% Equity attributable to shareholders of the company 26,126 27,102 4% Investment properties 20,376 20,427 0% Investments in and loans to joint ventures 6,643 6,512 2% (both non-cur
Slide 39: Balance sheet summary – CONT’D
Balance sheet summary – CONT’D 31 December 31 December (HK$’M) 2020 2019 Total borrowings 4,380 4,681 6% Net borrowings 3,190 2,941 8% Gearing ratio 11.5% 10.3% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 726 17% 147 3% Between one and two years 1,629 37%
Slide 40: Appendix
Appendix 40
Slide 41: Investment Thesis
Investment Thesis A credible integrated property developer in Hong Kong with a balanced and well-diversified 1 development and investment portfolio spanning the region and beyond Constantly grow the residential property development operations by proactively yet 2 cautiously acquiring land bank Lever
Slide 42: Five years’ Financial summary
Five years’ FiNaNCial summary Full Year Results 2020 2019 2018 2017 2016 (HK$’M) (Note 1) (Note 2) RESULTS Revenue 2,778 830 885 1,064 1,103 (Loss)/profit before taxation (555) 375 1,432 2,101 1,260 Taxation (61) (70) (53) (99) (111) (Loss)/profit for the year (616) 305 1,379 2,002 1,149 Attributabl
Slide 43: Five years’ Financial summary – CONT’D
Five years’ FiNaNCial summary – CONT’D As at 31 December 2020 2019 2018 2017 2016 (HK$’M) ASSETS AND LIABILITIES Total assets 37,246 36,323 35,428 35,496 30,776 Total liabilities (9,605) (7,699) (6,706) (7,686) (6,464) Total equity 27,641 28,624 28,722 27,810 24,312 43