31 slides from City Developments's shareholder meeting presentation, Jun 24, 2020
Slide 1: Annual General Meeting
Annual General Meeting 24 June 2020
Slide 2: Agenda
Agenda FY 2019 Key Highlights COVID-19 Impact Outlook Artist’s Impression AMBER PARK I SINGAPORE
Slide 3: FY 2019 Key Highlights
FY 2019 Key Highlights Artist’s Impression AMBER PARK I SINGAPORE
Slide 4: Key Financial Highlights – FY 2019
Key Financial Highlights – FY 2019 FY 2018 FY 2019 Change YoY Revenue $4.22B $3.43B 18.8% EBITDA $1.19B $1.13B 5.2% PATMI $557.3MM $564.6MM 1.3% Basic EPS 59.9 cents 60.8 cents 1.5% Resilient performance despite a challenging macroeconomic environment Decrease in revenue due to recognition timing
Slide 5: Key Financial Highlights – FY 2019
Key Financial Highlights – FY 2019 NAV per share RNAV per share ROE $11.60 $16.46 5.4% 4.8% YoY 4.7% 0.2 pts YoY FY 2018 $11.07 $15.72 5.6% Total Proposed Dividend Share Price Performance Comprises: 20.0 cents • Special Final Dividend: 34.9% in 2019 per share – 6.0 cents 2019 HIGHEST - $11.01 (4 Nov
Slide 6: Diversified Global Portfolio
Diversified Global Portfolio Deepening Presence in Key Markets Geographical diversification allows flexibility to capitalise on opportunities Revenue by Geographical Location Revenue by Business Segment 6
Slide 7: Growing Global Footprint
Growing Global Footprint Completed Strategic Investments and Acquisitions in FY 2019 Portfolio with 3 freehold residential properties, Osaka UK & Europe Japan M&C Privatisation FY 2019: Horie Lux, Osaka ~$2.3B^ Acquisitions & investments ¥3.45B ($44.3MM) Singapore China Sims Drive GLS site The Biltm
Slide 8: Singapore Operations – Property Development
Singapore Operations – Property Development Record Number of 6 Projects Launched in 2019*: FY 2019 Piermont Grand# (820 units) Sold: 1,554 units Sales Value: $3.3B Artist’s Impression Sold: 534 units ASP: >$1,090 psf Artist’s Impression Nouvel 18~ Boulevard 88# Haus on Handy Amber Park# Sengkang Gra
Slide 9: Singapore Operations – Asset Management
Singapore Operations – Asset Management Strong Committed Occupancy and Positive Rental Reversion for Office & Retail Portfolio (As at 31 March 2020) (1) Office Retail 13 properties 9 properties 90.9% 94.4% Committed Occupancy Committed Occupancy 2.2MM sq ft 733,000 sq ft Net Lettable Area REPUBLIC P
Slide 10: International Operations
International Operations Strengthening Footprint in Key Overseas Markets Key Milestones in 2019: • Expansion into Rental Apartment Segment: UK: Acquired Private Rented Sector (PRS) freehold site in Leeds Japan: Acquired 4 freehold rental apartment UK Pregio Joto Chuo, Osaka projects in Osaka Art
Slide 11: Hospitality – Enlarged Portfolio with M&C
Hospitality – Enlarged Portfolio with M&C Priority on Integration Focus and Holistic Review of Enlarged Hotel Operations Segment Successful privatisation of Millennium & Copthorne Hotels (M&C) in 2019 Deal valuation: £2.23B ($3.86B) M&C delisted from London Stock Exchange on 11 Oct 2019 Became
Slide 12: Recognition for Performance Excellence
Recognition for Performance Excellence Key Accomplishments in FY 2019 BUSINESS & PERFORMANCE SUSTAINABILITY • Bloomberg Gender-Equality Index (GEI) 2019 • Only Singapore real estate company to pledge support for UN • HR Asia Best Companies to Work for in Asia 2019 Global Compact’s • Institutional In
Slide 13: Sustainability & ESG Milestones
Sustainability & ESG Milestones Ranked on 12 Leading Global Sustainability Indices and Ratings LATEST ESG Only Singapore real Only company in Southeast Ranked world’s top real estate Only Singapore MILESTONES estate company Asia & Hong Kong to company, top Singapore company to win multiple listed fo
Slide 14: COVID-19 Impact
COVID-19 Impact REPUBLIC PLAZA I SINGAPORE
Slide 15: Operational Impact
COVID-19 IMPACT Operational Impact Unprecedented Disruption Across All Business Segments PROPERTY DEVELOPMENT ASSET MANAGEMENT HOSPITALITY Lockdowns across several Retail and F&B outlets hard hit: Sector severely impacted by regions have affected sales hotel closures: and development works: Widesp
Slide 16: Property Development
COVID-19 IMPACT Property Development Singapore: Residential sales and development progress impacted by circuit breaker restrictions such as temporary closure of 6 sales galleries and halt of construction works Overseas (China, UK, Australia): Sales and construction works impacted by lockdowns an
Slide 17: Asset Management
COVID-19 IMPACT Asset Management Tenants Impacted by Global Shutdown of Non-essential Businesses Over $30MM rental relief & support to tenants in Singapore & overseas Impact & Support Provided Month Ave. Rental Rebate April 100% Majority of Singapore Singapore Retail segment hard hit since circuit
Slide 18: Hotel Operations
COVID-19 IMPACT Hotel Operations Q1 2020 Performance Severely Impacted Around 30% of 152 Hotels Worldwide Temporarily Closed Global occupancy: 52.1% (▼ 17.9% yoy) Global RevPAR: $90.60 (▼ 27.0% yoy) Global ARR: $173.90 (▼ 2.0% yoy) 23% of Hotels are Closed (as at 21 June 2020) Hotels Total Clo
Slide 19: Cost Management
COVID-19 IMPACT Cost Management Implementation of Business Optimisation and Cost Management Measures Board Fees & Value Engineering Management Cost (effective since 1 April 2020) Maximise value engineering across all projects Board of Directors: Leverage existing resources Voluntary 25% reduct
Slide 20: Operational Resilience
COVID-19 IMPACT Operational Resilience Business Volumes & Productivity Remain Strong DIGITAL–READY WORKFORCE CDL Homes www.cdlhomes.com.sg Business volumes and productivity remains strong through seamless remote working – Work from Home (WFH) arrangement remains in place wherever possible for Sing
Slide 21: Community Initiatives
COVID-19 IMPACT Community Initiatives Supporting Vulnerable Individuals, Families and Communities Affected by COVID-19 Supporting Communities Supporting Frontline Workers $400,000 donation to The Invictus Fund M&C hotels in most regions open to support Donation made by CDL, entire Board and Exec
Slide 22: Capital Management
Capital Management Strong Balance Sheet & Liquidity Position as at 31 March 2020 Sufficient Financing Balanced Gearing Liquidity Flexibility Debt Profile % of Net Gearing Total Cash Interest Cover Ratio Fixed Rate Debt 62% $3.3B 6.2x 42% FY 2019: 61% FY 2019: $3.1B FY 2019: 14.0x FY 2019: 40% Net Ge
Slide 23: Balanced Debt Expiry Profile
Balanced Debt Expiry Profile Prudent Capital Management Balanced debt expiry profile Balanced debt currency mix – adopting a natural hedging strategy Average borrowing cost kept low Well-Spread Debt Maturity Profile Others (2.1%) 4,000 38% RMB (5.1%) 213 3,600 100 Bond Bank Loan JPY (5.2%) 518
Slide 24: Outlook
Outlook THE BILTMORE MAYFAIR I LONDON, UK
Slide 25: GET Strategy: Growth, Enhancement, Transformation
GET Strategy Accelerate Transformation of Asset Portfolio and Business Operations for Growth Growth Growth Build development Enhancement pipeline & recurring income streams Transformation Artist’s Impression Enhancement Transformation Enhance asset portfolio Transform business via Drive oper
Slide 26: Diversified Residential Launch Pipeline
GROWTH DRIVERS Diversified Residential Launch Pipeline Singapore Pipeline ranges from Mass Market to High-end Projects Launch Pipeline Irwell Bank Road >1,800 units* (Est 540 units) GLS site near upcoming Great World Upcoming Launches MRT station awarded in Penrose (Sims Drive)^ 2H 2020 Jan 2020 Irw
Slide 27: Portfolio Rejuvenation
ENHANCEMENT DRIVERS Portfolio Rejuvenation Redevelopment & Repositioning of Existing Asset Portfolio Asset Rejuvenation Portfolio Restructuring Redevelopment Opportunities Repositioning Hospitality Portfolio Rejuvenate sites and replenish land bank through Holistic review of enlarged hotel portf
Slide 28: Fund Management
TRANSFORMATION DRIVERS Fund Management Fund Management Strategic Increase in IREIT Global Stake Acquired Additional 8% Effective Stake in IREIT Global Units AUM Target for $25.5MM US$5B by 2023 Acquired a total of 20.9% stake in IREIT Global’s units: 12.5% in 2019 Accelerate growth by setting up
Slide 29: Transformational China Platform Deal
TRANSFORMATION DRIVERS Transformational China Platform Deal Acquired 51.01% joint controlling stake in Sincere Property Group for RMB 4.39B ($0.88B) Call Option exercisable in 2022 for another 9.00% stake at RMB 0.77B ($0.16B) Upon exercise of the Call Option, CDL will have sole control and a st
Slide 30: 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 31: www.cdl.com.sg
Artist’s Impression BOULEVARD 88 I SINGAPORE www.cdl.com.sg