Slide 1: Full Year 2017 Results Presentation
Full Year 2017 Results Presentation 28 February 2018
Slide 2: Agenda
Agenda General Overview & Strategic Initiatives Fund Management Financial Highlights Innovation Singapore Operations Hospitality International Operations
Slide 3: General Overview
General Overview
Slide 4: Key Highlights
Key Highlights Resilient PATMI achieved despite absence of a new project launch in 2017: – $187 million for Q4 2017 (Q4 2016: $244 million) – $538 million for FY 2017 (FY 2016: $653 million) Stable revenue maintained: - $1.33 billion for Q4 2017 (Q4 2016: $1.17 billion) - $3.83 billion for FY 20
Slide 5: Key Financial Highlights – Q4 2017
Key Financial Highlights – Q4 2017 Revenue EBITDA PATMI Basic EPS $1.328 billion $308.1 million $186.7 million 19.8 cents 13.8% YoY 26.3% YoY 23.4% YoY 24.1% YoY Q4 2016: $1.167 billion $417.8 million $243.8 million 26.1 cents Revenue increase boosted by steady property sales for Gramercy Park and
Slide 6: Key Financial Highlights – FY 2017
Key Financial Highlights – FY 2017 Revenue EBITDA PATMI Basic EPS $3.829 billion $1.061 billion $538.2 million 57.8 cents 2.0% YoY 12.7% YoY 17.6% YoY 17.9% YoY FY 2016: $3.905 billion $1.216 billion $653.2 million 70.4 cents Excluding divestment gains, PATMI would have decreased by 11%. No fair v
Slide 7: Key Highlights – FY 2017
Key Highlights – FY 2017 NAV per share ROE Share Price Performance $10.54 5.62% $12.49* YTD 2018’s Highest Close: $13.48 (16 Jan) 3.13% YoY 1.41 pts YoY 50.3% in 2017 FY 2016: 2017 HIGHEST - $13.00 (19 Oct) $10.22 7.03% Proposed Dividend Comprises: Despite a lower reported PATMI, the Group is 18.0
Slide 8: Diversified Global Portfolio
Diversified Global Portfolio Deepening Presence in Key Markets Geographical diversification allows flexibility to capitalise on opportunities 2017 2016 Others Others 19% Singapore 17% Singapore 52% 48% Total Revenue US Total Revenue US by Geography 14% by Geography 14% China China 6% UK 11% UK 9%
Slide 9: Diversified Land Bank
Diversified Land Bank Land Area (as of 31 Dec 2017) – CDL’s Attributable Share Type of Development Land Area (sq ft) Singapore International Total % Residential 954,777 1,817,032 2,771,809 93 Commercial / Hotel 20,886 187,862 208,748 7 Total 975,663 2,004,894 2,980,556 100 Total Proposed GFA – 6.4 m
Slide 10: Extensive Global Network
Extensive Global Network Strategic Investments and Diversifications in FY 2017 UK & EUROPE >> Acquired Ransomes Wharf mixed CHINA development site in Battersea for £58 million >> Acquired Hong Leong Plaza Hongqiao >> Acquired The Lowry Hotel in Manchester for in Shanghai for RMB 900 million £52.5 mi
Slide 11: Profit Participation Securities (PPS)
Profit Participation Securities (PPS) The Group currently acts as Asset Manager for 3 PPS with short-term fund life: PPS 1 – Dec 2014 PPS 3 – Oct 2016 $1.5 billion comprising the Quayside Collection in Sentosa: The Residences at W Singapore – Sentosa Cove The 5-star 240-room hotel W Singapore –
Slide 12: Strategic Initiatives
Strategic Initiatives
Slide 13: Strategic Focus for 2018
Strategic Focus for 2018 Renewal and Transformation #1 #2 #3 GROWTH ENHANCEMENT TRANSFORMATION Property Asset Enhancement Fund Management Development Initiatives (AEI) Innovation Recurring Income Repositioning / New Platforms Streams Redevelopment Operational Efficiency 13
Slide 14: #1 Grow Property Development
GROWTH #1 Grow Property Development Build Land Bank for Future Development Income Location Tenure Total Site Area Gross Floor Land Price Land Cost Units (sq ft) Area (sq ft) Amber Road Freehold Est 600 213,675 598,290 $906.7 million $1,515 psf ppr Tampines Ave 10 99-year 861 233,767 654,553 $370.1 m
Slide 15: Grow Property Development
GROWTH Grow Property Development Highest Bidder for Waterfront EC site at Sumang Walk Location Tenure Equity Total Maximum Gross Site Information Stake Units Floor Area (sqm) Site Area 27,056.4 sqm 99-year Sumang Walk 60% Est. 820 81,169.2 sqm Maximum GFA 81,169.2 sqm leasehold Land Price $509.37 mi
Slide 16: Grow Recurring Income Streams
GROWTH Grow Recurring Income Streams Strengthen Recurring Income from Asset Base Recurring Recurring EBITDA EBITDA 56% 55% Property Property Development Development $462 million, 44% $550 million, 45% 2017 2016 Recurring Recurring Income Income $599 million, 56% $666 million, 55% 16
Slide 17: #2 Asset Repositioning
ENHANCEMENT #2 Asset Repositioning Unlocking Value in Existing Asset Portfolio Republic Plaza – $70 million AEI Phased AEI works to commence in 1H 2018 Expected completion by 1H 2019 Includes creation of new retail cluster at Level 2 Total NLA (Post AEI): 785,000 sq ft Republic Plaza – Revam
Slide 18: Operational Efficiency
ENHANCEMENT Operational Efficiency Priorities to Enhance Operational Efficiency and Product Offerings • Improve customer experience through better product quality Customer Centric • Create greater value through ESG integration Sustainability • Strengthen asset management to maximise yields Asset Opt
Slide 19: #3 Establish Fund Management Platform
TRANSFORMATION #3 Establish Fund Management Platform Create New Recurring Income Streams & Raise 3rd Party Capital for Additional Acquisitions Group Chief Investment Officer • Generate new streams of recurring income • Diversify earnings and expand investor base • Enhance capital recycling strategy
Slide 20: Innovation & New Platforms
TRANSFORMATION Innovation & New Platforms Two-Pronged Approach: Strategic Investments & Enterprise-Driven Initiatives Investments in Internal Innovation New Economy Businesses Initiatives & Potential Disruptors Enterprise Innovation Committee China’s Fast-Growing China’s Leading Operator (EIC) Onlin
Slide 21: Financial Highlights
Financial Highlights
Slide 22: Revenue by Segment for 4th Quarter (2015–2017)
Financial Highlights Revenue by Segment for 4th Quarter (2015 – 2017) 900 $1,328m $1,167m $855m 800 760 700 598 600 500 450 444 463 $ million 400 300 242 200 86 89 105 100 32 36 45 0 Q4 2017 Q4 2016 Q4 2015 Property Development Hotel Operations Rental Properties Others Q4 2017 Q4 2016 Q4 2015 Proper
Slide 23: Profit Before Tax by Segment for 4th Quarter (2015–2017)
Financial Highlights Profit Before Tax by Segment for 4th Quarter (2015 – 2017) 450 $239m $332m $471m 400 349 350 300 243 250 $ million 193 200 150 101 116 100 40 50 1 5 9 0 (50) (9) (3) (3) Q4 2017 Q4 2016 Q4 2015 Property Development Hotel Operations Rental Properties Others Q4 2017 Q4 2016 Q4 201
Slide 24: Revenue by Segment for Full Year (2015–2017)
Financial Highlights Revenue by Segment for Full Year (2015 – 2017) $3,829m $3,905m $3,304m 2,000 1,745 1,698 1,800 1,653 1,694 1,633 1,600 1,400 1,200 1,037 $ million 1,000 800 600 406 347 367 400 135 160 163 200 0 FY 2017 FY 2016 FY 2015 Property Development Hotel Operations Rental Properties Othe
Slide 25: Profit Before Tax by Segment for Full Year (2015–2017)
Financial Highlights Profit Before Tax by Segment for Full Year (2015 – 2017) 700 $780m $914m $985m 600 520 500 445 460 400 356 $ million 300 207 200 148 168 171 116 100 71 19 0 (2) (100) FY 2017 FY 2016 FY 2015 Property Development Hotel Operations Rental Properties Others FY 2017 FY 2016 FY 2015 P
Slide 26: EBITDA by Segment for Full Year (2015–2017)
Financial Highlights EBITDA by Segment for Full Year (2015 – 2017) 700 $1,061m $1,216m $1,272m 587 600 550 500 462 400 364 $ million 324 304 298 277 300 264 200 100 78 24 17 0 FY 2017 FY 2016 FY 2015 Property Development Hotel Operations Rental Properties Others FY 2017 FY 2016 FY 2015 Property Deve
Slide 27: Capital Management
Financial Highlights Capital Management As at 31/12/17 As at 31/12/16 Gross borrowings $5,036m $5,752m Cash and cash equivalents (include restricted deposits of $214m classified in other non-current $3,989m $3,887m assets) Net borrowings $1,047m $1,865m Net gearing ratio without taking in fair value
Slide 28: Prudent Capital Management
Financial Highlights Prudent Capital Management Debt Expiry Profile Debt Maturity Within 1 year 2,000 Debt $ million Bond Bank Loan 25% 35% 1 to 2 years 1,500 320 2 to 3 years 1,000 421 15% 249 More than 3 384 25% years 500 947 839 684 540 353 100 199 0 2018 2019 2020 2021 2022 2023 onwards Debt Cur
Slide 29: Singapore Operations – Project Development
Singapore Operations Project Development
Slide 30: Singapore Property Market
Singapore Property Market Property Price Index – Residential (2013 – 2017) All Residential Beginning of 180 Residential Market Recovery 160 Q3 17 Q4 17 137.6 138.7 140 120 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 Source :
Slide 31: Singapore Property Market
Singapore Property Market Developers’ Sales came in at 10,566 units – Far exceeding the annual average demand of 7,600 new homes from 2014 - 2016 Strong developers’ sales of 10,566 units in 2017 22,197 but still far from peak of 22,197 units in 2012 16,292 15,904 14,948 14,688 4,264 Source : URA and
Slide 32: Singapore Property Development
Singapore Property Development Residential Units Sold FY 2017 FY 2016 1,269,641 1,171 $1,928,112 974,666 1,017 Sales Value $1,245,726 55% yoy Units Sold 15% yoy No. of Units* Sales Value* Total Floor Area* (#039;000) (sq ft) * Includes share of JV partners 32
Slide 33: New Futura – Private Preview
Singapore Property Development New Futura – Private Preview commenced on 18 Jan 2018 Project Location Tenure Equity Total Total Units % Total Saleable Stake Units Sold* Sold* Area (sq ft) New Futura Leonie Hill Road Freehold 100% 124 48 39 248,199 Strong Response for Private Preview: Private previ
Slide 34: Continued Healthy Uptake for Launched Projects
Singapore Property Development Continued Healthy Uptake for Launched Projects Project Location Tenure Equity Total Total Units % Total Saleable Stake Units Sold* Sold* Area (sq ft) Gramercy Park Grange Road Freehold 100% 174 168 97 368,743 97% sold to date Phase 1 (North Tower) – 100% sold Pha
Slide 35: Completed Residential Projects in 2017
Singapore Property Development Completed Residential Projects in 2017 – Total of 2,785 apartments Project Location Equity Total % Sold* TOP Obtained Stake Units The Venue Residences Tai Thong Crescent 60% 266 99 Apr 2017 D’Nest Pasir Ris Grove 51% 912 100 Phase 1 – Jul 2017 Phase 2 – Oct 2017 New Fu
Slide 36: Residential Projects Available for Launch
Singapore Property Development Residential Projects Available for Launch – Pipeline of around 2,750 units Project Location Tenure Equity Total Gross Floor Expected Stake Units Area (sq ft) Launch 99-year The Tapestry Tampines Ave 10 100% 861 654,553 Mar 2018 leasehold 99-year South Beach Residences
Slide 37: The Tapestry – Upcoming Project Launch in March 2018
Singapore Property Development The Tapestry – Upcoming Project Launch in March 2018 Location Tenure Equity Total Gross Floor Stake Units Area (sq ft) 99-year Tampines Ave 10 100% 861 654,553 leasehold Located minutes to the established Tampines Regional Centre and newly-completed Our Tampines Hub
Slide 38: Inventory of Launched Residential Projects
Singapore Property Development Inventory of Launched Residential Projects – As of 31 Dec 2017 Total Unsold CDL’s Share of Project Equity Stake Total Units Units Sold % Sold Inventory Unsold Inventory St. Regis Residences 33% 173 161 93% 12 4.0 The Oceanfront @ Sentosa Cove 50% 264 263 99% 1 0.5 One
Slide 39: Singapore Operations – Asset Management
Singapore Operations Asset Management
Slide 40: Singapore Commercial Market
Singapore Commercial Market Property Price Index – Commercial (2013– 2017) 150 Office Retail 140 Q4 17 Q3 17 131.4 128.0 130 120 Q3 17 Q4 17 112.9 111.8 110 100 90 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 Source : URA,
Slide 41: Singapore Commercial Market
Singapore Commercial Market Property Rental Index – Commercial (2013– 2017) 250 Office Retail 200 Q4 17 Q3 17 163.4 159.3 150 Q3 17 Q4 17 99.7 99.2 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 Source : URA, Q4 2017 4
Slide 42: Rental Properties – Office Portfolio
Rental Properties Office Portfolio – Lease Expiry 2018 – 2020 As of 31 Dec 2017 NLA: 16 94.8% ~2,344,000 sq ft Properties Occupancy* % of NLA Expiring 28.5% 30.5% 16.5% 2018 2019 2020 *National Average: 87.4% 42
Slide 43: Rental Properties – Retail Portfolio
Rental Properties Retail Portfolio – Lease Expiry 2018 – 2020 As of 31 Dec 2017 Retail Portfolio NLA: 19 97.4% 844,000 sq ft Properties Occupancy* % of NLA Expiring 34.5% 35.4% 18.6% 2018 2019 2020 *National Average: 92.6% 43
Slide 44: Rental Properties Revenue by Sector
Rental Properties Revenue by Sector for Full Year (2015 – 2017) $347m $367m $406m 200 187 180 160 152 133 Office 140 S$ million 116 110 113 120 Retail 100 73 74 75 Industrial 80 60 REIT/Hotel 40 24 23 18 Others ^ 20 7 7 7 0 FY 2017 FY 2016 FY 2015 FY 2017 FY 2016 FY 2015 Office 38% 41% 46% Retail 34
Slide 45: Republic Plaza Asset Enhancement Initiative (AEI)
Republic Plaza Asset Enhancement Initiative (AEI) Expected Completion by 1H 2019 $70 million AEI Plan Phased AEI works to commence in 1H 2018 Includes creation of new retail cluster at Level 2 Total NLA (Post AEI): 785,000 sq ft Revamped Main Lobby Artist’s Impression Republic Plaza – Revamped
Slide 46: International Operations
International Operations
Slide 47: International Property Development – Australia & Japan
International Property Development Australia & Japan – Good Progress on Launched Projects Brisbane – Ivy and Eve Tenure Equity Total Total Units % Expected Stake Units Sold* Sold Completion Freehold 33%# 476 463 97 1H 2018 Approx. 97% of project sold to date Ivy and Eve, Brisbane Artist’s Impressi
Slide 48: International Property Development – China
International Property Development China – Good Progress for Launched Projects in Suzhou Suzhou – Hong Leong City Center (丰隆城市中心) Tenure Equity Total Total Units % Sold Expected Completion Stake Units Sold* 70 years 100% 1,804 1,560 86 Completed (Phase 1) (Residential) / Q2 2018 (Phase 2)^ 40 years
Slide 49: International Rental Properties
International Rental Properties China – Good Progress in Tier 1 City Shanghai Hong Leong Plaza Hongqiao Tenure Equity Est. Total GFA Completion Stake (sqm) 50-year lease 100% 32,182 Q4 2017 The project was completed in Q4 2017, comprising five office towers with two levels of basement carparks T
Slide 50: UK – Projects under Construction
International Property Development UK – Projects under Construction Teddington Riverside, Teddington TW11 Tenure Equity Total Est. Total Saleable Expected Stake Units Area (sq ft) Completion Freehold 100% 240 233,552 Q4 2019 Completion of phase 1 expected to be Q4 2018 On-site sales centre opene
Slide 51: UK – Planning Applications: Stag Brewery
International Property Development UK – Good Progress on Planning Applications Stag Brewery, Mortlake, London SW14 Tenure Equity Stake Est. Total Saleable Area (sq ft) Freehold 100% 1,000,000 £1.25 billion Mixed-use Scheme Site Plan: Planning application submitted in Feb 18. Determination targeted
Slide 52: UK – Planning Applications
International Property Development UK – Good Progress on Planning Applications Development House, Leonard Street, Shoreditch Project Tenure Equity Stake Est. Total Saleable Area (sq ft) Leonard Street Freehold 100% 90,000 Planning application for redevelopment submitted in Dec 2017; outcome expect
Slide 53: Residential Projects Launched To Date
International Property Development Residential Projects Launched To Date* Project City Equity Total Total % Sold/ Est. Total Expected Stake Units Units Sold Booked Saleable Completion / Booked Area (sq ft) Australia Ivy and Eve Brisbane 33%# 476 463 97 348,678 1H 2018 China Hong Leong City Center Su
Slide 54: 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 China Huang Huayuan Chongqing 50-year lease 30% >700 1,041,589 2020 UK Belgravia London Freehold 100% 6 12,375 Q2 2
Slide 55: Fund Management
Fund Management
Slide 56: How Big is the Real Estate Industry?
How Big is the Real Estate Industry? A Total Market of US$13.5 trillion, Comprising Mostly of Unlisted Vehicles Private Debt Public Debt 45% 11% US$6 trillion US$1.5 trillion US$5 trillion US$1 trillion Direct Investment/ Listco/ REIT Private fund 7% 37% CDL Fund Management platform will allow CDL
Slide 57: Differentiating Real Estate Investment Classes
Differentiating Real Estate Investment Classes RETURN x Core+ Good Asset @ Good Location, Opportunistic with good rental income Asset that might need to • 7 & 9 Tampines Grande x redevelop or undergo major renovation/ improvements x Value-Add Relatively Good Asset @ Good x Location, with potential r
Slide 58: Route Map to AUM Target – US$5 billion by 2023
Route Map to AUM Target – US$5 billion by 2023 Barbell Strategy CDL will create real estate vehicles with different risk return profile. This is translated on delivering performance to our clients and at the same time generating a stable, constant income stream CORE / CORE+ VALUE ADD / OPPORTUNISTIC
Slide 59: Impact to CDL
Impact to CDL 1. Generate a new business division which will help to provide a stable income stream 2. Diversify and expand CDL customer base to include institutional investors 3. Adopting a balance sheet and asset light strategy which will improve ROE 4. Allows CDL to establish a capital recycling
Slide 60: Innovation
Innovation
Slide 61: Investments into New Economy Businesses
Investments into New Economy Businesses mamahome – China’s Fast-Growing Online Apartment Rental Platform Invested RMB 110 million to date Acquired 20% equity stake for RMB 100 million in Sep 2016 Followed Series A round in Dec 2017 which includes new investor Futureland, dual-listed Chinese de
Slide 62: Inculcate Culture of Innovation to Achieve Growth
Inculcate Culture of Innovation to Achieve Growth Innovation is a strategic lever for change and business transformation, and also a lever that engage, empower and enable business breakthroughs Set up the Enterprise Innovation Committee as an anchor platform comprising of multi-disciplinary team mem
Slide 63: Hospitality
Hospitality
Slide 64: M&C – Lapsed Final Cash Offer
M&C – Lapsed Final Cash Offer Final Cash Offer of 620 pence for each M&C Share lapsed on 26 Jan 2018, 1300 GMT Valid Acceptances of 47.14% as of Final Closing – Did not meet threshold for offer to turn unconditional Lapsed: Recommended Final Cash Offer Cash Consideration 620 pence Comprising 600 pen
Slide 65: M&C Hotel Operations
M&C Hotel Operations Trading Performance Reported Constant Currency Currency FY 2017 FY 2016 Change FY 2016 Change Revenue £1,008m £926m 8.9% £972m 3.7% Revenue (hotel) £880m £814m 8.1% £853m 3.2% Profit before tax £147m £108m 36.1% £114m 28.9% PATMI £124m £78m 59.0% In constant currency, Group Re
Slide 66: M&C Hotel Operations – Trading Performance
M&C Hotel Operations Trading Performance RevPAR in reported currency and constant currency were up by 7.9% and 3.2% respectively for FY 2017 as compared to the same period last year: FY 2017 Reported Currency Constant Currency New York £164.84 ↑ 13.2% ↑ 7.7% Regional US £61.90 ↑ 7.7% ↑ 2.5% Total
Slide 67: M&C Hotel Operations – Group RevPAR
M&C Hotel Operations Group RevPAR Up 3.2% at Constant Rates * Restated at FY 2017 rates New York: Excl One UN, the Singapore: RevPAR down £ Rest of Asia: RevPAR down in RevPAR increase is only 0.2%. due to reduced room rates. most hotels. Seoul 7.5% down 180 Higher occupancy partly compensated by 5.
Slide 68: M&C Hotel Operations – Asset Enhancement
M&C Hotel Operations Asset Enhancement M Social Auckland (former Copthorne Hotel Auckland Harbourcity) Soft opened in Oct 2017 Hua Ting (Orchard Hotel Singapore) – Chairman’s Room Renovation works at Hua Ting completed; M Social Auckland – Lifestyle hotel with 190 guest rooms restaurant reopened
Slide 69: Hotel Room Count and Pipeline
M&C Hotel Operations Hotel Room Count and Pipeline Hotels Rooms 31 Dec 31 Dec 31 Dec 31 Dec Hotel and Room Count 2017 2016 2017 2016 By region: ● New York 4 4 2,238 2,238 ● Regional US 15 15 4,559 4,559 ● London 8 8 2,649 2,651 ● Rest of Europe 21 19 3,528 3,081 ● Middle East * 31 26 10,346 7,805 ●
Slide 70: CDL Hospitality Trusts
CDL Hospitality Trusts Trading Performance S$’000 FY 2017 FY 2016 Change Gross Revenue 204,315 180,857 13.0% Net Property 151,760 137,560 10.3% Income (NPI) The Lowry Hotel Gross revenue and NPI increased mainly due to : Inorganic contribution from both The Lowry Hotel and Pullman Hotel Munich whi
Slide 71: 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 72: www.cdl.com.sg
New Futura, Singapore www.cdl.com.sg