Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — FY2017 Earnings Presentation
45 slides from Wing Tai Properties's earnings presentation, 2018
Slide 1: Wing Tai Properties Limited Annual Results 2017
WING TAI PROPERTIES LIMITED 永泰地產有限公司 ANNUAL RESULTS 2017
Slide 2: Agenda
Agenda A Snapshot of 2017 • Key Achievements • Sustainable Growth • Land Bank Business Review • Property Development • Property Investment & Management • Hospitality Investment & Management • Strengthened Capital Structure Future Plans & Strategies 2017 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 2017
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Slide 5: Key Achievements
Key Achievements • We focus on growing a portfolio that offers a solid base of predictable, recurring revenue from the investment/hospitality properties we own and manage, balanced by our premium residential developments that provide outperformance driven by dedicated management. This consistent str
Slide 6: Key Achievements – cont’d
Key Achievements – cont’d • In January 2018, the Group disposed of its entire interest in W Square, at a consideration of approximately HK$2,850 million. Total gain over historic cost will stand at HK$1,965 million, comprising a cumulative fair value gain of HK$1,241 million realised and a disposal
Slide 7: Key Achievements – cont’d
Key Achievements – cont’d • Continued to grow the Lanson Place brand as a pan-Asian hospitality brand and expedite expansion in Hong Kong and key cities in Asia. Properties under management enjoyed a satisfactory performance with sustained occupancy rates. Tianfu Square Serviced Suites by Lanson Pla
Slide 8: Sustainable Growth
Sustainable Growth HK$’M Total Equity 29,000 27,000 25,000 23,000 21,000 19,000 17,000 15,000 2012 2013 2014 2015 2016 2017 • To further grow and diversify our asset portfolio to create long-term value for our stakeholders 8
Slide 9: Balanced and Diversified Land Bank in Hong Kong
Balanced and Diversified Land Bank in Hong Kong 1 2 3 4 24 5 4 6 Shau Kei Wan 8 7 5 So Kwun Wat Road, 7 Tuen Mun Castle Peak Road, Tai Lam, 12 8 3 Tuen Mun 10 Gage Street/Graham Street, 9 13 Central 9 11 1 6 10 Landmark East 11 W Square 12 Shui Hing Centre 13 Development properties Investment proper
Slide 10: Land Bank (as at 31 December 2017)
Land Bank (as at 31 December 2017) Strategic land bank with focus on Hong Kong Land Bank Overview (sq. ft.) Prope rty De ve lopment 36% Investment Property 64% Valuation as at Attributable Hong Kong Mainland China Others Total 31 December 2017 Gross Floor Area / Saleable Area (’000 sq. ft.) (’000 sq
Slide 11: Business Review
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Slide 12: Property Development
Property Development 12
Slide 13: Sales and Development Pipeline (as at 31 December 2017)
Sales and Development Pipeline (as at 31 DECEMBER 2017) A sustainable and scalable project pipeline Available Presold Estimated Completion Property Development Gross Gross 2020 – Beyond Group’s Portfolio Floor Area Floor Area 2018 2019 2022 2022 Interest (’000 sq. ft.) (’000 sq. ft.) Hong Kong Provi
Slide 14: Completed Development in Hong Kong
Completed Development in Hong Kong Providence Bay, Providence Peak, The Graces, Pak Shek Kok, Tai Po • Providence Bay (482 units), Providence Peak (548 units) and The Graces (193 units): approximately 99% of the residential units have been sold 14
Slide 15: Completed Development in Hong Kong – cont’d
Completed Development in Hong Kong – cont’d The Warren (103 units), 9 Warren Street, Causeway Bay • All the residential units have been sold 15
Slide 16: Completed Development in Hong Kong – cont’d
Completed Development in Hong Kong – cont’d The Pierre (77 units), 1 Coronation Terrace, Mid-Levels West • All the residential units have been sold 16
Slide 17: Completed Development in Hong Kong – cont’d
Completed Development in Hong Kong – cont’d Homantin Hillside (173 units), 8 Wai Yin Path, Hung Hom • Saleable area of approximately 128,000 sq. ft. • Approximately 97% of the residential units have been sold, including all typical units at the development 17
Slide 18: Completed Development in Hong Kong – cont’d
Completed Development in Hong Kong – cont’d Le Cap, Kau To, Shatin • Low-density luxury residential project at peak of Kau To Shan • Gross floor area of approximately 142,000 sq. ft. • Certificate of compliance obtained in March 2018 • Occupation permit obtained in July 2017 • Pre-sale consent obtai
Slide 19: Project Under Development in Hong Kong
Project Under Development in Hong Kong La Vetta, Kau To, Shatin • Low-density luxury residential project • Gross floor area of approximately 318,000 sq. ft. • Occupation permit obtained in March 2018 • Pre-sale consent obtained in November 2017 • Scheduled for completion in 2018 19
Slide 20: Project Under Development in Hong Kong – cont’d
Project Under Development in Hong Kong – cont’d Shau Kei Wan • Prime harbour-front residential site • Gross floor area of approximately 46,000 sq. ft. • Pre-sale consent obtained in July 2017 • Superstructure work in progress • Project scheduled for completion and leasing in 2018 and 2019, respectiv
Slide 21: Project Under Development in Hong Kong – cont’d
Project Under Development in Hong Kong – cont’d The Carmel, Siu Sau, Tai Lam, Tuen Mun • Gross floor area of approximately 159,000 sq. ft. • Earmarked for low-density residential development • Superstructure work underway • Project scheduled for completion in 2019 21
Slide 22: Project Under Development in Hong Kong – cont’d
Project Under Development in Hong Kong – cont’d So Kwun Wat Road, Tuen Mun • Gross floor area of approximately 264,000 sq. ft. • Earmarked for medium-density residential development • Foundation work and site formation work in progress • Project scheduled for completion in 2021 22
Slide 23: Project Under Development in Hong Kong – cont’d
Project Under Development in Hong Kong – cont’d Castle Peak Road, Tai Lam, Tuen Mun • Gross floor area of approximately 294,000 sq. ft. • Earmarked for medium-density residential development • Ground investigation work completed • Project scheduled for completion in 2022 23
Slide 24: Project Under Development in Hong Kong – cont’d
Project Under Development in Hong Kong – cont’d Commercial Complex at Gage Street/Graham Street, Central • Won the tender in October 2017 • Prime commercial site in Central CBD • Gross floor area up to 433,500 sq. ft. • Earmarked for commercial complex development encompassing a Grade A office tower
Slide 25: Property Investment & Management
Property Investment & Management 25
Slide 26: Investment Portfolio in Hong Kong
Investment Portfolio in Hong Kong Gross floor area Occupancy as at (’000 sq. ft.) 31 December 2017 Landmark East (AIA Kowloon Tower/ 1,338 99% Grade A AXA Tower) Offices W Square 129 94% Industrial Shui Hing Centre 187 93% Properties • In December 2017, the Group disposed of its entire interest in W
Slide 27: 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 28: 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 186,000 sq. ft. of Grade A office and retail space • Achieved full occupancy Commercial Property at Cavendish Square, West End • Group’s interest of 33%
Slide 29: 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 2017, approximately 91% of the units were leased 29
Slide 30: Hospitality Investment & Management
Hospitality Investment & Management 30
Slide 31: Hospitality Portfolio
Hospitality Portfolio Strong brand recognition in HK & key gateway cities in Asia by customers and property owners Lanson Place Properties – Investment & Management Lanson Place Hotel • Group’s interest: 100% • No. of rooms: 194 Shanghai • Location: Hong Kong Chengdu Lanson Place Lifestyle Services
Slide 32: Hospitality Portfolio – cont’d
Hospitality Portfolio – cont’d Strong brand recognition in HK & key gateway cities in Asia by customers and property owners Lanson Place Properties – Management Tianfu Square Serviced Suites Lanson Place Jin Qiao by Lanson Place Serviced Residences • No. of units: 162 • No. of units: 102 • Location:
Slide 33: Hospitality Investment and Management
Hospitality Investment and Management • Lanson Place currently manages nine third-party serviced residences, of which five are in Shanghai. Other serviced residences are located in Hong Kong, Singapore, Kuala Lumpur and Chengdu • Tianfu Square Serviced Suites by Lanson Place, located at the main fin
Slide 34: 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$10
Slide 35: Future Plans & Strategies
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Slide 36: Future Plans & Strategies
Future Plans & Strategies In near term In mid-to-long term Property • Focus on preparing the launch of Le • Taking advantage of public land Development Cap and La Vetta at Kau To Shan and tender programme and private treaty The Carmel in Siu Sau, Tuen Mun, as for development properties, be they well
Slide 37: 2017 Results Highlights
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Slide 38: Financial Results Summary
Financial Results Summary For the year ended 31 December (HK$’M) 2017 2016 Revenue 1,064.3 1,103.3 4% Gross profit 827.8 824.2 - Change in fair value of investment properties and 882.5 709.6 24% financial instruments Profit from operations 2,031.5 1,222.5 66% Share of results of joint ventures/assoc
Slide 39: Segment Results Overview
Segment Results Overview For the year ended 31 December (HK$’M) 2017 2016 Property Development Revenue 139.5 213.2 35% Profit before taxation 44.2 50.7 13% Property Investment & Management Revenue 775.5 737.2 5% Fair value changes in investment properties and financial 827.7 733.0 13% instru
Slide 40: Balance Sheet Summary
Balance Sheet Summary 31 December 31 December (HK$’M) 2017 2016 Total assets 35,496.1 30,776.1 15% Net assets 27,809.9 24,312.1 14% Equity attributable to shareholders of the 26,289.9 24,308.6 8% company Investment properties (including assets 21,442.1 21,972.1 2% classified as held for sale) Proper
Slide 41: Balance Sheet Summary – cont’d
Balance Sheet Summary – cont’d 31 December 31 December (HK$’M) 2017 2016 Total borrowings 6,184.1 5,184.8 19% Net borrowings 5,529.9 3,502.0 58% Gearing ratio 19.9% 14.4% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 1,402 23% 477 9% Between one and two yea
Slide 42: Appendix
appendix
Slide 43: Investment Thesis
Investment Thesis A credible and integrated property player in Hong Kong with a balanced and well-diversified 1 development and investment portfolio spanning the region and beyond Strong track record in developing luxury and quality residential properties 2 at premium values Owns a diversified portf
Slide 44: Five Years’ Financial Summary
Five Years’ Financial Summary 2017 2016 2015 2014 2013 (HK$’M) RESULTS Continuing operations revenue 1,064.3 1,103.3 1,009.2 1,783.5 1,736.2 Profit before taxation from continuing operations 2,101.0 1,260.4 1,182.3 2,033.1 2,746.2 Taxation (98.6) (111.2) (83.2) (89.5) (91.4) Profit for the year from
Slide 45: Five Years’ Financial Summary – cont’d
Five Years’ Financial Summary – cont’d As at 31 December 2017 2016 2015 2014 2013 (HK$’M) ASSETS AND LIABILITIES Total assets 35,496.1 30,776.1 28,220.9 27,527.8 26,705.1 Total liabilities (7,686.2) (6,464.0) (4,873.6) (4,847.6) (5,809.9) Net assets 27,809.9 24,312.1 23,347.3 22,680.2 20,895.2 45