Slide 1: Q1 2019 Results Presentation
Q1 2019 Results Presentation 15 May 2019
Slide 2: Agenda
Agenda ➢ Overview ➢ International Operations ➢ Financial Highlights ➢ Hospitality ➢ Singapore Operations
Slide 3: Key Financial Highlights – Q1 2019
Key Financial Highlights – Q1 2019 Revenue EBITDA PATMI Basic EPS $746.2 million $357.4 million $199.6 million 22.0 cents 29.5% 51.1% 133.8% 134.0% Q1 2018 (Restated) *: $1,057.8 million $236.6 million $85.3 million 9.4 cents NAV per share ▪ Strong PATMI boosted by: ➢ Realisation of a $144.3 million
Slide 4: Key Operational Highlights
Key Operational Highlights PROPERTY DEVELOPMENT ▪ SINGAPORE: Sold 173 units with total sales value of $516.3 million* in Q1 2019 Boulevard 88# Positive Response to 2 New Freehold Launches for YTD 2019 (154 units) Boulevard 88 Amber Park Launch Date 8 March 4 May Units Sold^ 47 145 ASP > $3,700 psf $
Slide 5: Key Operational Highlights
Key Operational Highlights Monk Bridge, Leeds HOTEL OPERATIONS ▪ M&C’s Q1 2019 results were impacted by: ➢ Full closure of Millennium Hotel London Mayfair in Jul 2018 for refurbishment and lower contributions from Asian hotels, primarily Orchard Hotel, which is undergoing refurbishment ➢ Increase in
Slide 6: Portfolio Composition – Q1 2019
Portfolio Composition – Q1 2019 Recurring Income Segments Property Hotel Rental $ million Others Total Development Operations Properties EBITDA * Local 76 18 180 6 280 Overseas 21 22 32 2 77 97 40 212 8 357 Total Assets ^ Local 5,371 548 3,279 783 9,981 Overseas 3,668 4,834 2,670 358 11,530 9,039 5,
Slide 7: Diversified Global Portfolio
Diversified Global Portfolio Deepening Presence in Key Markets ➢ Geographical diversification allows flexibility to capitalise on opportunities Others Others Singapore 19% Singapore 24% 48% 46% US Revenue 7% Assets US 13% China 12% China 5% UK UK 10% 16% Q1 2019 7
Slide 8: Diversified Land Bank
Diversified Land Bank Land Area (as of 31 Mar 2019) – CDL’s Attributable Share Type of Development Land Area (sq ft) Singapore International Total % Residential 818,011 1,648,555 2,466,566 93 Commercial / Hotel 66,401 116,244 182,645 7 Total 884,412 1,764,799 2,649,211 100 Total Proposed GFA – 4.5 m
Slide 9: Strategic Acquisitions & Investments
Strategic Acquisitions & Investments YTD 2019* Monk Bridge, Leeds Entered into Agreement to Invest in Sincere Property Group & Acquire 70% stake in Shanghai Hongqiao Sincere Centre (Phase 2) Shanghai Hongqiao Sincere Centre (Phase 2) Artist’s Impression Singapore-listed IREIT Global with freehold of
Slide 10: Expansion into New Housing Segments
Expansion into New Housing Segments Entered Rapidly-Growing UK Private Rented Sector (PRS) – Acquisition of Freehold PRS site in Leeds in March 2019 Monk Bridge, Leeds Leeds – UK’s fastest-growing & third largest city Artist’s Impression £15.4 million ($27.5 million) Artist’s Impression Site Area: 1
Slide 11: REIT Investment to Grow Fund Management Business
REIT Investment to Grow Fund Management Business $77.8 million Investment in Singapore-listed IREIT Global ▪ REIT Manager: 50% stake for $18.4 million ▪ REIT Units: 12.4% stake for $59.4 million Strategic move to grow CDL’s fund management business: ➢ Earnings accretive: Immediate contribution to Gr
Slide 12: Strategic Investment in Sincere Property Group
Strategic Investment in Sincere Property Group Entered into Agreement to Invest RMB 5.5 billion ($1.1 billion) in a China Real Estate Developer ▪ Upon completion, CDL will indirectly hold ~24% equity interest and be 2nd largest shareholder after Sincere’s Founder and Chairman ▪ Investment comprises
Slide 13: Acquisition of Shanghai Hongqiao Sincere Centre (Phase 2)
Acquisition of Shanghai Hongqiao Sincere Centre (Phase 2) 70% Stake in Prime Commercial Property for RMB 1.2 billion ($247 million) Shanghai Hongqiao Sincere Centre (Phase 2) Synergistic with Group’s Focus on Expanding Recurring Income Portfolio in Global Gateway Cities ▪ In addition to its strategi
Slide 14: Financial Highlights
Financial Highlights
Slide 15: Revenue by Segment for Q1 (2017 – 2019)
Financial Highlights Revenue by Segment for Q1 (2017 – 2019) 800 $746m $1,058m $784m 700 600 563 500 $ million 400 360 378 367 299 300 250 200 103 84 85 100 33 33 33 0 Q1 2019 Q1 2018 Q1 2017 (Restated) * Property Development Hotel Operations Rental Properties Others * Restated due to adoption of SF
Slide 16: Profit Before Tax by Segment for Q1 (2017 – 2019)
Financial Highlights Profit Before Tax by Segment for Q1 (2017 – 2019) 240 220 $266m $173m $125m 200 181 180 160 140 $ million 120 100 87 86 92 80 61 60 40 28 21 20 5 5 - - 0 (20) (2) Q1 2019 Q1 2018 (Restated) ^ Q1 2017 (Restated) * Property Development Hotel Operations Rental Properties Others ^ R
Slide 17: EBITDA by Segment for Q1 (2017 – 2019)
Financial Highlights EBITDA by Segment for Q1 (2017 – 2019) $357m $237m $196m 240 220 212 200 180 160 $ million 140 120 101 97 91 100 88 80 50 55 60 40 41 40 20 8 8 0 (20) (1) Q1 2019 Q1 2018 (Restated) ^ Q1 2017 (Restated) * Property Development Hotel Operations Rental Properties Others ^ Restated
Slide 18: Financial Highlights: Balance Sheet
Financial Highlights Balance Sheet As at 31/03/19 As at 31/12/18 Gross borrowings $6,708m $6,342m Lease liabilities $197m - Cash and bank balances ^ $2,369m $2,512m Net borrowings $4,536m $3,830m Net gearing ratio without taking in fair value gains on 36% 31% investment properties Net gearing ratio
Slide 19: CDL Group – Prudent Capital Management
Financial Highlights CDL Group – Prudent Capital Management ➢ Balanced debt expiry profile ➢ Balanced debt currency mix – adopting a natural hedging strategy ➢ Average borrowing cost kept low ➢ Balance of fixed rate borrowings to mitigate rate hikes Debt Expiry Profile 31/03/2019 31/12/2018 1,800 Bo
Slide 20: Singapore Operations – Property Development
Singapore Operations Property Development
Slide 21: Singapore Property Market
Singapore Property Market Property Price Index – Residential (2013 – Q1 2019) All Residential 180 Slight price dip (-0.7% QoQ) 2nd consecutive quarter of decline since July 2018 cooling measures Q1 19 160 148.6 140 120 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 13 13
Slide 22: Singapore Property Market
Singapore Property Market • Private residential prices declined by -0.7% y-o-y in Q1 2019 after increasing by 7.9% y-o-y in 2018 • Developer’s sales remained healthy in Q1 2019. Whilst sales in Q1 2019 stayed flat against Q4 2018, it was a significant 16.2% increase y-o-y against Q1 2018. Price Sale
Slide 23: Singapore Property Development
Singapore Property Development Residential Units Sold by CDL Q1 2019 Q1 2018 459 $792,561 415,892 Project Launches (Q1 2019 vs Q1 2018) 65% of Q1 2018 Launch Project Market Total Period Segment Units $516,293 Q1 2019 Boulevard 88 High-end 154 The Tapestry Mass market 861 38% of Q1 2018 Q1 2018 New F
Slide 24: Steady Sales for 2018 Launched Projects
Singapore Property Development Steady Sales for 2018 Launched Projects Project Location Tenure Equity Total Total Units Ave. Selling Total Saleable Expected Stake Units Sold* Price (ASP) Area (sq ft) Completion Completed New Futura Leonie Hill Road Freehold 100% 124 121 >$3,500 psf 248,199 Aug 2017
Slide 25: Residential Launch in Q1 2019
Residential Launch in Q1 2019 Boulevard 88 – Sales value of over $400 million* Location Tenure Equity Total Units Total Units Total Saleable Expected Stake Units Released Sold* Area (sq ft) TOP Orchard Boulevard Freehold 40% 154 60 47 316,844 2022 154-unit Freehold Luxury Residences in District 10 ▪
Slide 26: Best-selling Freehold Property Launch in 2019
Best-selling Freehold Property Launch in 2019 Amber Park – 115 units sold on Launch Weekend ▪ 115 units of 150 released units snapped up: ➢ Early bird ASP of $2,425 psf ➢ Sold units include a penthouse ▪ Excellent connectivity: 3-min walk to upcoming Tanjong Katong MRT station 26
Slide 27: Latest Residential Launch in District 15
Latest Residential Launch in District 15 Amber Park – Sales Value of $313 million* Location Tenure Equity Total Units Units Total Units Total Saleable Expected TOP Stake Released Sold* Area (sq ft) Amber Road Freehold 80% 592 150 145 604,006 2023 Iconic Freehold Residence in East Coast: ▪ 145 units
Slide 28: Limited Inventory of Launched Residential Projects
Singapore Property Development Limited Inventory of Launched Residential Projects – As of 31 Mar 2019 CDL’s Share of % Total Unsold Project Equity Stake Total Units Units Sold Unsold Sold Inventory Inventory Cuscaden Residences 25% 75 74 99% 1 0.3 St. Regis Residences 33% 173 161 93% 12 4.0 The Ocea
Slide 29: Diversified Residential Launch Pipeline
Diversified Residential Launch Pipeline SG Pipeline comprises EC, Mass Market, Mid-Tier & High End segments Launch pipeline Piermont Grand^ Sengkang Central^ (820 units) (680 units) ~2,250 units* Only EC launch for 2019 Upcoming Launches Haus on Handy Q2 2019 Piermont Grand^ Q3 2019 Artist’s Impress
Slide 30: Singapore Operations – Asset Management
Singapore Operations Asset Management
Slide 31: Singapore Commercial Market
Singapore Commercial Market Property Price Index – Commercial (2013 – Q1 2019) 150 Q1 19: 143.1 (+3.0% QoQ) Office Retail 140 130 120 Q1 19: 110.4 (-1.9% QoQ) 110 100 90 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 1
Slide 32: Singapore Commercial Market
Singapore Commercial Market Property Rental Index – Commercial (2013 – Q1 2019) 250 Office Retail Q1 19: 174.5 200 (-0.6% QoQ) 150 Q1 19: 98.0 (-0.2% QoQ) 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 1
Slide 33: Singapore Commercial Portfolio
Singapore Commercial Portfolio Strong Committed Occupancy for Office & Retail Portfolio (As at 31 March 2019)* Office Retail 16 properties* 20 properties* 91.4% 95.8% Committed Occupancy Committed Occupancy 2.3 million sq ft 791,000 sq ft Net Lettable Area REPUBLIC PLAZA Net Lettable Area CITY SQUAR
Slide 34: Singapore Commercial Portfolio
Singapore Commercial Portfolio Trade Mix of Office & Retail Space by % of Total Gross Rental Income (As at 31 March 2019)* Office Retail Supermarkets & Sporting Goods, Value Store, Electrical, Electronics & 2.2% 5.2% Banking, Telecommunications, Technology & Insurance & Others, 2.6% 2.0% ICT, 17.3%
Slide 35: International Operations
International Operations
Slide 36: International Operations – Australia
International Operations – Australia Focus on Increasing Exposure in Australia Brisbane Bowral Luxury Retirement Housing Projects: Collaboration with Waterbrook Lifestyle Resorts on 2 Freehold Luxury Retirement Housing Projects in Sydney for A$57 million ➢ Proposed developments offer a high-end hosp
Slide 37: International Operations – China
International Operations – China Focus on Tier 1 and Tier 2 Cities Suzhou (苏州) Continued Sales Chongqing(重庆) Momentum: Relaunched in May 2018: Total sales of RMB 3.88 billion generated for 90% of Sold 56 units to date* ➢ Sales value of RMB 305 million 1,804 units to date*^ ➢ Phase 1 – 97% sold ➢ Pha
Slide 38: International Operations – Japan
International Operations – Japan Two Prime Freehold Residential Projects in Tokyo Park Court Aoyama The Tower Completed in Q1 2018: ➢ 160-unit freehold JV residential project launched in Oct 2016 ➢ Units are progressively being handed over – 151 units Freehold site in Shirokane handed over* Land Ban
Slide 39: International Operations – UK
International Operations – UK Established Strong Project Pipeline in Greater London Under Construction Projects to be Completed 2019 – 2021 Completed in July & Aug 2018 – Leasing activities commenced Preliminary Artist’s Impression Planning Approval Knightsbridge Belgravia Obtained Chelsea Artist’s
Slide 40: Hospitality
Hospitality
Slide 41: M&C Hotel Operations
M&C Hotel Operations Trading Performance Reported Constant Currency Currency Q1 2019 Q1 2018 Change Q1 2018 Change Revenue £215m £217m (0.9%) £224m (4.0%) Revenue (hotel) £187m £187m - £193m (3.1%) Profit before tax £11m £26m (57.7%) £26m (57.7%) PATMI £1m £8m (87.5%) ▪ Group RevPAR ↑ 2.2% in Q1 201
Slide 42: M&C Hotel Operations – Trading Performance
M&C Hotel Operations Trading Performance ▪ RevPAR in reported currency increased by 2.2% but in constant currency was down by 0.9% for Q1 2019 as compared to the same period last year Q1 2019 Reported Currency Constant Currency New York £111.69 ↑ 5.1% ↓ 1.5% Regional US £48.17 ↑ 5.2% ↓ 1.5% Total US
Slide 43: M&C Hotel Operations – Asset Enhancement
M&C Hotel Operations Asset Enhancement Artist’s Impression Artist’s Impression Orchard Hotel Singapore Millennium Hotel London Mayfair • The refurbishment work of the public areas • Ongoing refurbishment work at the Mayfair hotel which is has substantially completed, with the ground now renamed The
Slide 44: CDL Hospitality Trusts
CDL Hospitality Trusts Trading Performance Q1 2019 Q1 2018 Change $m $m % Gross Revenue 46,316 51,795 (10.6) Net Property 33,770 37,818 (10.7) Income (NPI) Hotel Cerretani Florence Gross Revenue and NPI decreased mainly due to : ➢ Full closure of Dhevanafushi Maldives Luxury Resort since Jun 2018 fo
Slide 45: 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 46: www.cdl.com.sg
Artist’s impression Amber Park, Singapore www.cdl.com.sg
Slide 47: Appendix
Appendix
Slide 48: International Property Development: Residential Projects Launched
International Property Development Residential Projects Launched To Date Project City Equity Total Est. Total Expected Stake Units Saleable Area Completion (sq ft) Australia Ivy and Eve Brisbane 33%# 476 348,678 Completed China Hong Leong City Center (Phase 1) Suzhou 100% 1,374 1,378,891 Completed H
Slide 49: International Property Development: Unlaunched Residential Projects
International Property Development Unlaunched Residential Projects Project City Tenure Equity Total Est. Total Saleable Area / Expected Stake Units GFA^ / Site Area+ (sq ft) Completion UK Chelsea London Freehold 100% 9 16,143 Q2 2019 Knightsbridge London Freehold 100% 24 135,379^ TBC (Pavilion Road)
Slide 50: China – Project Development
China – Project Development China– Chongqing JV Projects Eling Palace (鹅岭峯) and Emerald (翡翠都会) Project Tenure Equity Total Expected Stake Units Completion Eling Palace 50 years 50% 126 Completed 50 years (Residential) / Emerald 30% 820 2020 40 years (Commercial) Eling Palace, Chongqing ▪ Eling Palac
Slide 51: China – Development / Recurring Income Projects
China – Development / Recurring Income Projects Suzhou Mixed-use Waterfront Project HongLeongCityCenter (丰隆城市中心) Equity Total Total Units % Tenure Expected Completion Stake Units Sold* Sold* 70 years (Residential) / 40 years 100% 1,804 1,623^ 90 Completed (Phase 1 & 2~) (Commercial) ▪ Total sales of
Slide 52: China – Recurring Income Projects
China – Recurring Income Projects Hong Leong Plaza Hongqiao, Shanghai Tenure Equity Stake Est. Total GFA (sqm) 50-year lease 100% 32,182 ▪ Operations to begin by Q2 2019 ▪ One office tower (20% of total NLA) has been leased out to a serviced apartment operator, with lease commencing in May 2019 Arti
Slide 53: UK – Property Development
UK – Property Development UK – Planning Approvals Obtained 28 Pavilion Road, Knightsbridge, London Equity Est. Total Saleable Total Expected Tenure Stake Area (sq ft) Units Completion Freehold 100% 135,379 24 TBC ▪ Currently a freehold car park site of 102,000 sq ft. It has obtained planning approva
Slide 54: UK – Projects under Construction
UK – Property Development UK – Projects under Construction Teddington Riverside, Broom Road, Teddington Est. Total Equity Total Units Expected Tenure Saleable Stake Units Released Completion Area (sq ft) Freehold 100% 233,552 225^ 76 Q1 2020 ▪ Phase One of the project, five-storey Carlton House (57
Slide 55: UK – Completed Projects
UK – Property Development UK – Completed Projects Chesham Street, Belgravia Hans Road, Knightsbridge Est. Total Saleable Area (sq ft) 12,375 5,193 Equity Stake 100% 100% Total Units 6 units 3 units Tenure Freehold Freehold Status All apartments are fully-fitted and marketed by local agencies for sal
Slide 56: Hospitality
Hospitality
Slide 57: M&C Hotel Room Count and Pipeline
M&C Hotel Operations Hotel Room Count and Pipeline Hotels Rooms 31 Mar 31 Dec 31 Mar 31 Dec Hotel and Room Count 2019 2018 2019 2018 By region: ● New York 4 4 2,238 2,238 ● Regional US 15 15 4,559 4,559 ● London 7 7 2,266 2,266 ● Rest of Europe 23 23 3,741 3,741 ● Middle East * 37 36 12,327 11,980 ●