Slide 1: Wing Tai Properties Limited
WING TAI PROPERTIES LIMITED Tk eH aE AD BR 2S
Slide 2: Agenda
Agenda A Snapshot of 2014 Key Achievements Sustainable Growth Land Bank Business Review Property Development Property Investment & Management Hospitality Investment & Management Diversified and Robust Capital Structure Future Plans & Strategies 2014 Results Highlights Appendix 2
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 2014
A Snapshot of 2014 4
Slide 5: Key Achievements
Key Achievements Achieved net profit attributable to shareholders of HK$1,944 million, riding on resilient growth in recurring rental income and operating profit, sustainable capital value gains from prime investment properties, as well as upward rental reversions of commercial and hospitality inv
Slide 6: 2014 Sustainable Growth
2014 Sustainable Growth HK$’M Shareholders’ Equity 25,000 20,000 15,000 10,000 5,000 0 2010 2011 2012 2013 2014 To further grow and diversify our asset portfolio to create long-term value for our stakeholders 6
Slide 7: Balanced and Diversified Land Bank in Hong Kong
Balanced and Diversified Land Bank in Hong Kong 1 Seymour Se 2 The Pierre 3 The Warren 4 4 5 6 6 Kau To, Shatin (two plots) 7 12 7 Siu Sau, Tuen Mun 11 8 Shau Kei Wan 5 9 9 Landmark East 1 2 10133 8 10 W Square 11 Shui Hing Centre 12 Winner Godown Building 13 Development properties Investment proper
Slide 8: Land Bank (as at 31 December 2014)
Land Bank (as at 31 December 2014) Strategic land bank with focus on Hong Kong Investment Property Residential Development Land Bank Overview (sq. ft.) By Business Segment By Geographical Segment Hospitality China 13% 17% Residential Office/ Retail Investment Development 60% 20% Industrial Property
Slide 9: Business Review
Business Review 9
Slide 10: Property Development
Property Development 10
Slide 11: Sales and Development Pipeline (as at 31 December 2014)
Sales and Development Pipeline (as at 31 December 2014) A sustainable and scalable residential project pipeline Available Presold Estimated completion Property Gross Gross 2018 Development Group’s Floor Area Floor Area 2015 2016 2017 & Portfolio Interest (’000 sq. ft.) (’000 sq. ft.) Beyond Hong Kon
Slide 12: Completed Development
Completed Development Seymour, 9 Seymour Road, Mid-Levels Approximately 98% of the residential units have been sold 12
Slide 13: Completed Development – Cont’d
Completed Development – Cont’d Providence Bay, Providence Peak, The Graces, Pak Shek Kok, Tai Po Providence Bay: approximately 64% of the residential units have been sold Providence Peak: approximately 81% of the residential units have been sold The Graces: approximately 83% of the residential
Slide 14: Completed Development – Cont’d
Completed Development – Cont’d The Warren, 9 Warren Street, Causeway Bay Approximately 83% of the residential units have been sold Nearly all of the sold units were handed over to purchasers by December 2014 14
Slide 15: Completed Development – Cont’d
Completed Development – Cont’d The Pierre, 1 Coronation Terrace, Mid-Levels West Over 97% of the residential units were pre-sold in September 2012 Occupation permit obtained in May 2014 Revenue and related profit from the pre-sale recognised in 1H 2014 Around 92% of the residential units wer
Slide 16: Project Under Development in Hong Kong
Project Under Development in Hong Kong Homantin Hillside, 8 Wai Yin Path, Hung Hom Saleable area of approximately 128,000 sq. ft. for 173 residential units In close proximity to upcoming Ho Man Tin MTR station of Kwun Tong Line Extension as well as Shatin to Central Link Initial pre-sale launc
Slide 17: Project Under Development in Hong Kong – Cont’d
Project Under Development in Hong Kong – Cont’d Kau To, Shatin Two sites (STTL 567 & 565) acquired in August 2012 and January 2013 Combined gross floor area of approximately 460,000 sq. ft. Earmarked for low-density luxury apartments and houses Foundation work underway Projects scheduled f
Slide 18: Project Under Development in Hong Kong – Cont’d
Project Under Development in Hong Kong – Cont’d Shau Kei Wan Prime harbour-front residential site acquired in April 2014 Gross floor area of approximately 46,000 sq. ft. Design and planning work completed Project scheduled for completion in 2018 18
Slide 19: Project Under Development in Hong Kong – Cont’d
Project Under Development in Hong Kong – Cont’d Siu Sau, Tuen Mun Gross floor area of approximately 159,000 sq. ft. Earmarked for low-density residential development Green area site formation work underway Project scheduled for completion by 2019 19
Slide 20: Project Under Development in Shanghai
Project Under Development in Shanghai Upper Riverside, Lujiazui, Shanghai Located along the Huangpu River at Lujiazui, Pudong Saleable area of approximately 210,000 sq. ft. for 97 apartment units Interior fitting out works underway Project scheduled for completion in 2015 20
Slide 21: Property Investment & Management
Property Investment & Management 21
Slide 22: Investment Portfolio in Hong Kong
Investment Portfolio in Hong Kong Average rental Leases reversion Leases Gross floor Occupancy renewed upon expiring/rent area as at in lease review in (’000 sq. ft.) 31 Dec 2014 2014 renewal 2015 Landmark East (AIA 1,338 96% 22% 32% 24% Grade-A Kowloon Offices Tower/ AXA Tower) W Square 129 84% 34%
Slide 23: Investment Portfolio in London
Investment Portfolio in London Commercial Property at Savile Row/Vigo Street, West End Net internal area of Grade-A office and retail space of approximately 14,000 sq. ft. Achieved full occupancy Commercial Property at Brook Street, West End Net internal area of Grade-A office and retail space
Slide 24: Hospitality Investment & Management
Hospitality Investment & Management 24
Slide 25: Hospitality Portfolio
Hospitality Portfolio Strong brand recognition in Asian gateway cities by customers and property owners Lanson Place Properties – Lanson Place Properties – Management Investment & Management Lanson Place Jin Qiao Serviced Residences Lanson Place Central Park • No. of units/rooms: 102 Serviced Reside
Slide 26: Hospitality Investment and Management
Hospitality Investment and Management Lanson Place Bukit Ceylon Serviced Residences had full opening in December 2014 Second property in the Group’s portfolio to qualify as one of the “Small Luxury Hotels of the World” The first “Small Luxury Hotel” in Kuala Lumpur’s central business district
Slide 27: Diversified and Robust Capital Structure
Diversified and Robust Capital Structure November November January 2013 May 2013 August 2014 October 2014 2012 2014 Second Third Fourth Fifth First Sixth drawdown of drawdown of drawdown of drawdown of drawdown of drawdown of HK$480 million HK$100 million HK$100 million HK$100 million S$170 million
Slide 28: Future Plans & Strategies
Future Plans & Strategies 28
Slide 29: Future Plans & Strategies
Future Plans & Strategies In near term In mid-to-long term Property Capture the right windows to Leverage government’s initiative to Development launch/relaunch new projects and expedite and increase land supply to remaining units of completed projects, proactively replenish land bank and includ
Slide 30: 2014 Results Highlights
2014 Results Highlights 30
Slide 31: Financial Results Summary
Financial Results Summary For the year ended 31 December (HK$’M) 2014 2013 Continuing operations Revenue 1,784 1,736 3% Gross profit 926 819 13% Change in fair value of investment properties and 1,539 2,121 27% financial instruments Profit from operations 2,148 2,723 21% Share of results of joint ve
Slide 32: Segment Results Overview
Segment Results Overview For the year ended 31 December (HK$’M) 2014 2013 Property Development Revenue 944 1,010 7% Profit before taxation 170 290 41% Property Investment & Management Revenue 669 564 19% Fair value changes in investment properties and 1,537 1,986 23% financial instruments
Slide 33: Balance Sheet Summary
Balance Sheet Summary 31 December 31 December (HK$’M) 2014 2013 Total assets 27,528 26,705 3% Net assets 22,680 20,895 9% Equity attributable to equity holders of the 22,679 20,894 9% company Investment properties 20,586 19,003 8% Properties for sale 1,322 1,425 7% Bank balances and cash 1,593 1,242
Slide 34: Balance Sheet Summary – Cont’d
Balance Sheet Summary – Cont’d 31 December 31 December (HK$’M) 2014 2013 Total borrowings 3,879 4,687 17% Net borrowings 2,286 3,445 34% Gearing ratio 10.1% 16.5% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 64 2% 1,740 37% Between one and two years 459 12
Slide 35: Appendix
Appendix
Slide 36: Investment Thesis
Investment Thesis A credible and integrated property player in Hong Kong 1 with a balanced and growing development and investment portfolio Strong track record in developing luxury and quality residential properties 2 at premium values Owns a diversified portfolio of high-quality Grade-A office and
Slide 37: Five Years’ Financial Summary
Five Years’ Financial Summary Year ended 31 December 2012 2011 2010 2014 2013 (Restated) (Restated) (Restated) HK$’M HK$’M HK$’M HK$’M HK$’M RESULTS Continuing operations revenue 1,783.5 1,736.2 891.7 1,191.0 1,416.0 Profit before taxation from continuing operations 2,033.1 2,746.2 4,612.1 2,847.4 2
Slide 38: Five Years’ Financial Summary – Cont’d
Five Years’ Financial Summary – Cont’d As at 31 December 2012 2011 2010 2014 2013 (Restated) (Restated) (Restated) HK$’M HK$’M HK$’M HK$’M HK$’M ASSETS AND LIABILITIES Total assets 27,527.8 26,705.1 23,578.1 20,212.5 17,631.2 Total liabilities (4,847.6) (5,809.9) (5,216.3) (4,849.8) (4,377.6) Non-co