Slide 1: Full Year Financial Report 1 Jan – 31 Dec 2014
FULL YEAR FINANCIAL REPORT 1 Jan – 31 Dec 2014 16 February 2015 ANALYST / MEDIA BRIEFING The Quayside Collection at Sentosa Cove 1
Slide 2: Agenda
AGENDA 1. FINANCIAL HIGHLIGHTS 2. SINGAPORE PROPERTY MARKET 3. OPERATIONS REVIEW 4. HOTEL OPERATIONS & CDLHT 5. DIVERSIFICATION STRATEGY
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 4: Quayside Isle
Quayside Isle 15741 hm Rio De Janeiro» 9576km __ CapeTown>
Slide 5: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS • Achieved highest quarter PATMI of $384.9 million since inception in 1963. • Achieved highest full year revenue of $3.8 billion since inception in 1963. • Strong balance sheet with cash and cash equivalents of $3.9 billion as at 31 December 2014, an increase of 43% from las
Slide 6: Summary of Financial Highlights
SUMMARY OF FINANCIAL HIGHLIGHTS Q4 Q4 % FY FY % 2014 2013 Change 2014 2013 Change (Restated)* (Restated)* Revenue ($m) 847 789 7.4 3,764 3,213 17.1 PATMI ($m) 385 222 73.4 770 686 12.2 Basic Earnings Per Share 41.6 23.7 75.5 83.2 74.0 12.4 (cents) NAV Per Share ($) 9.25 8.50 8.8 * Restated due to th
Slide 7: Revenue for the Quarter Ended Dec (2005–2014)
FINANCIAL HIGHLIGHTS Revenue for the Quarter Ended 31 Dec (2005 – 2014) 1,000 922 886 900 847 766 789 800 738 718 722 687 672 700 600 $ million 500 400 300 200 100 0 2005 2006 2007 2008 2009 2010 ^ 2011 2012 2013 * 2014 4th Quarter ^ Restated due to the adoption of INT FRS 115 for 2010 only. * Resta
Slide 8: PATMI for the Quarter Ended 31 Dec (2005–2014)
Highest quarter FINANCIAL HIGHLIGHTS since inception PATMI for the Quarter Ended 31 Dec (2005 – 2014) 400 385 350 300 241 249 250 235 222 $ million 200 177 163 150 137 101 100 100 50 0 2005 2006 2007 2008 2009 2010 ^ 2011 2012 2013 * 2014 4th Quarter ^ Restated due to the adoption of INT FRS 115 for
Slide 9: Revenue for the Year Ended 31 Dec (2005–2014)
FINANCIAL HIGHLIGHTS Highest since Revenue for the Year Ended 31 Dec (2005 – 2014) inception 4,000 3,764 3,500 3,273 3,280 3,354 3,106 3,103 3,213 2,945 3,000 2,547 2,500 2,374 $ million 2,000 1,500 1,000 500 0 2005 2006 2007 2008 2009 2010 ^ 2011 2012 2013 * 2014 Year ^ Restated due to the adoption
Slide 10: PATMI for the Year Ended Dec (2005–2014)
FINANCIAL HIGHLIGHTS PATMI for the Year Ended 31 Dec (2005 – 2014) 900 784 799 800 770 725 678 686 700 581 593 600 $ million 500 400 352 300 200 200 100 0 2005 2006 2007 2008 2009 2010 ^ 2011 2012 2013 * 2014 Year ^ Restated due to the adoption of INT FRS 115 for 2010 only. * Restated due to the ado
Slide 11: Revenue by Segment – FY 2014 vs FY 2013 & FY 2012
FINANCIAL HIGHLIGHTS Revenue by Segment – FY 2014 vs FY 2013 & FY 2012 1,800 1,678 FY 2012 1,581 1,536 1,529 1,600 1,415 FY 2013 * 1,400 FY 2014 1,198 1,200 $ million 1,000 800 600 379 385 400 304 200 99 107 120 0 Property Hotel Operations Rental Properties Others Development FY 2014 FY 2013 FY 2012
Slide 12: Profit Before Tax by Segment – FY 2014 vs FY 2013 & FY 2012
FINANCIAL HIGHLIGHTS Profit Before Tax by Segment – FY 2014 vs FY 2013 & FY 2012 532 FY 2012 550 500 468 FY 2013 * 450 413 FY 2014 400 333 350 283 $ million 300 250 232 250 200 178 146 150 100 64 50 20 0 (50) (7) Property Hotel Operations Rental Properties Others Development FY 2014 FY 2013 FY 2012
Slide 13: Hotel Revenue by Region – FY 2014 vs FY 2013
HOTEL OPERATIONS Hotel Revenue by Region – FY 2014 vs FY 2013 FY 2014 FY 2013 * 5% 5% 42% Asia 24% 87 44% 409 United States 23% 80 699 355 663 Europe New Zealand 483 431 29% 28% $1,678m $1,529m * Restated due to the adoption of FRS 110. 13
Slide 14: Hotel Occupancy by Region
HOTEL OPERATIONS Hotel Occupancy by Region 80.0 77.8 77.4 76.5 76.1 73.7 Hotel Occupancy Rate (%) 70.0 68.5 67.7 65.9 FY 2013 FY 2014 60.0 50.0 Asia United States Europe New Zealand 14
Slide 15: Hotel RevPAR at Constant Currency
HOTEL OPERATIONS Hotel Revenue Per Available Room at Constant Currency 167 170 153 152 155 152 140 135 Hotel RevPAR ($) 110 FY 2013* FY 2014 88 80 76 50 Asia United States Europe New Zealand * For comparability, FY 2013 RevPAR had been translated at constant exchange rates (31 Dec 2014). 15
Slide 16: Capital Management
FINANCIAL HIGHLIGHTS Capital Management As at As at 31/12/14 31/12/13 Incr / (Decr) (Restated) * Cash and cash equivalents $3,898m $2,720m 43% Net borrowings $2,820m $2,589m 9% Net gearing ratio without taking in fair 26% 25% value gains on investment properties Net gearing ratio after taking in fai
Slide 17: CDL's Net Gearing (2009–2014)
FINANCIAL HIGHLIGHTS CDL’s Net Gearing (%) (2009 – 2014) 70 Net Gearing (%) 50 40 After taking in fair value gains 29 on investment 30 25 25 26 21 properties 19 10 2009 2010 ^ 2011 2012 2013 * 2014 Maturity Period FY 2014 Within 1 year 31% 1 to 2 years 18% 2 to 3 years 19% More than 3 years 32% ^ Re
Slide 18: Singapore Property Market
SINGAPORE PROPERTY MARKET
Slide 19: Property Price Index – Residential (2010–2014)
SINGAPORE PROPERTY MARKET Property Price Index – Residential (2010 – 2014) All Residential Q3 14 220 207.9 200 Q4 14 180 205.7 160 140 120 100 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 Source : URA, Q4 2014 19
Slide 20: New Private Residential Units Launched vs Sold
SINGAPORE PROPERTY MARKET No. of New Private Residential Units Launched vs Units Sold (Projects under Construction) (2010 – 2014) New Units Launched New Units Sold (Projects Under Construction) 24,000 22,000 20,000 New Units New Units 18,000 Launched Sold Directly (excl. EC units) By Developers 16,0
Slide 21: Uncompleted Private Residential Units Available
SINGAPORE PROPERTY MARKET No. of Uncompleted Private Residential Units Available (2010 – 2014) Not Launched Launched & Unsold 20,000 17,084 17,467 16,587 16,000 Launched Not Total 13,928 13,944 & Unsold Launched 2010 3,528 10,400 13,928 12,000 2011 5,584 11,500 17,084 Number of Units 2012 5,137 8,80
Slide 22: Property Price Index – Commercial (2010–2014)
SINGAPORE PROPERTY MARKET Property Price Index – Commercial (2010 – 2014) 160 Q4 14 Q3 14 138.8 135.6 140 120 Q3 14 Q4 14 128.8 130.7 100 80 60 Office Shop 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 Source : URA, Q4
Slide 23: Average Office Rental in CBD (2010–2014)
SINGAPORE PROPERTY MARKET Average Office Rental in CBD (2010 – 2014) 14.00 $11.14 $12.04 12.00 $10.21 $10.51 $9.74 10.00 $9.26 $8.44 $7.90 $8.37 8.00 $7.70 Marina Bay/ Raffles Place (Grade A) 6.00 Whole Island 4.00 2.00 0.00 2010 2011 2012 2013 2014 Source : JLL Research, Q4 2014 23
Slide 24: Operations Review
OPERATIONS REVIEW
Slide 25: Property Development – Units Booked / Sold
OPERATIONS REVIEW Property Development – Units Booked / Sold Sales Value* No. of Total $’000 Units* Floor Area* (sq ft) FY 2014 $ 1,392,773 1,378 1,183,478 FY 2013 $ 3,319,298 3,210 3,055,305 * Includes share of JV partners & ECs 25
Slide 26: Coco Palms
Coco Palms For Illustration Only
Slide 27: Commonwealth Towers
Commonwealth Towers Artist’s Impression
Slide 28: Completed Residential Projects Handed Over in 2014
OPERATIONS REVIEW Completed Residential Projects Handed Over to Purchasers in 2014 Buckley Classique Blossom Residences Location: Buckley Road Location: Segar Road Number of units: 64 Number of units: 602 368 Thomson Location: Thomson Road Number of units: 157 28
Slide 29: Upcoming Residential Project Launches – Canberra Drive EC
OPERATIONS REVIEW Upcoming Residential Project Launches (subject to market conditions) Executive Condominium Location: Canberra Drive Number of units: 638 • Located within Sembawang New Town • Next to future Canberra MRT station • Likely the world’s largest application of Prefabricated Prefinished V
Slide 30: Upcoming Residential Project Launches – Gramercy Park
OPERATIONS REVIEW Upcoming Residential Project Launches (subject to market conditions) Gramercy Park Location: Grange Road Number of units: 174 • Freehold project, located in prime District 10 • Designed by world renowned architecture firm NBBJ of New York • Minutes away from Orchard Road and the CB
Slide 31: Integrated Development – South Beach
OPERATIONS REVIEW Integrated Development – South Beach Artist’s Impression HOTEL: The South Beach 654 rooms COMMERCIAL: South Beach Tower About 500,000 sq ft CLUB: South Beach Club 29,000 sq ft RESIDENTIAL South Beach Residences 190 units RETAIL: South Beach Avenue Artist’s Impression About 37,000 s
Slide 32: South Beach – Milestones for 1H 2015
OPERATIONS REVIEW South Beach – Milestones for 1H 2015 South Beach Tower (Offices) • 500,000 sq ft of Grade A office space • 80% of the leases secured • First tenant expected to commence operations in Q1 2015 Artist’s Impression Artist’s Impression The South Beach (Hotel) • Interior design by Philip
Slide 33: South Beach
South Beach For Illustration Only
Slide 34: South Beach
South Beach Artist’s Impression
Slide 35: Land Bank by Sector
OPERATIONS REVIEW Land Bank by Sector (as at 31 December 2014) – CDL’s Attributable Share Land Area (Sq ft) Type of Development Local Overseas Total % (Local & Overseas) Residential 1,030,395 1,200,166 2,230,561 82.0% Commercial / Hotel 193,971 294,619 488,590 18.0% Total 1,224,366 1,494,785 2,719,1
Slide 36: Rental Revenue by Sector for Year Ended Dec
OPERATIONS REVIEW Rental Revenue by Sector for Year Ended 31 Dec $379m $385m 400 350 300 Rental Revenue ($m) 172 176 Office 250 Retail 200 Industrial REIT 150 103 111 Others * 100 12 8 50 66 63 26 27 0 2013 ^ 2014 ^ Restated due to the adoption of FRS 110. * Including car park, serviced apartment, r
Slide 37: Hotel Operations & CDLHT
HOTEL OPERATIONS & CDLHT
Slide 38: Millennium Mitsui Garden Hotel Tokyo
Millennium Mitsui Garden Hotel Tokyo
Slide 39: M&C Group – Good Trading Performance
HOTEL OPERATIONS M&C Group Good Trading Performance Increase in hotel revenue due to improvement in RevPAR (in constant currency) driven mainly by acquisitions and the positive impact of the refurbishment programme. RevPAR FY 2014 £71.55 6.9% Q4 2014 £76.48 8.9% RevPAR growth for 2014 driven by:
Slide 40: M&C Group – Hotel Room Count and Pipeline
HOTEL OPERATIONS M&C Group – Hotel Room Count and Pipeline Hotels Rooms 31 Dec 31 Dec 31 Dec 31 Dec Hotel and Room Count 2014 2013 2014 2013 By region: ● New York 4 3 2,238 1,758 ● Regional US 15 16 4,463 4,938 ● London 8 7 2,651 2,493 ● Rest of Europe 16 16 2,560 2,695 ● Middle East * 17 16 5,123 4
Slide 41: M&C Group – New Acquisitions
HOTEL OPERATIONS M&C Group – New Acquisitions The Chelsea Harbour Hotel 154 suites and 4 penthouses. Completed on 25 March 2014. Acquisition price £65m. Novotel New York Times Square 4-star hotel with 480 rooms. Completed on 12 June 2014. Acquisition price £161m. Grand Hotel Palace Rome
Slide 42: M&C Group – Asset Enhancement
HOTEL OPERATIONS M&C Group – Asset Enhancement (on-going) £42m was spent under the programme in 2014. The bulk of this expenditure was accounted for by the continuing refurbishment of Grand Hyatt Taipei. On 1 October 2014, the former Millennium Resort and Villas Scottsdale was re-opened as The M
Slide 43: CDL Hospitality Trusts – Trading Performance
CDL HOSPITALITY TRUSTS (CDLHT) Trading Performance S$’000 FY 2014 FY 2013 Change Gross Revenue 166,812 148,782 12.1% Net Property 140,526 137,389 2.3% Income Grand Copthorne Waterfront Hotel Gross revenue and net property income increase mainly due to revenue generated by Jumeirah Dhevanafushi acqui
Slide 44: CDLHT – Acquisitions
CDL HOSPITALITY TRUSTS (CDLHT) Acquisitions Acquisition of Hotel MyStays Asakusabashi and Hotel MyStays Kamata in Tokyo was completed on 19 December 2014. Purchase consideration: ¥5.8 billion. Hotel MyStays Asakusabashi Business (economy) hotel with 138 rooms and 1 convenience store. Hotel MyS
Slide 45: Diversification Strategy
SSS TS Sy SSS DIVERSIFICATION STRATEGY
Slide 46: Diversification Strategies
DIVERSIFICATION STRATEGIES New Geographies • Accelerate expansion initiatives to supplement existing operations • Focus remains on US, UK, Japan, China and Australia Results: Acquired approximately $1.3 billion worth of assets in US, UK, Italy, Japan and China over the past 12 months (2014) New Plat
Slide 47: New Geographies
NEW GEOGRAPHIES Growth & Accommodative Central Bank Policy – To drive investment prospects in 5 target markets • Continued economic recovery in 2014 and early 2015 to support Fed rate hike in mid-2015 • However, benign inflation outlook to keep medium term interest rate expectations low US • Healthy
Slide 48: Japan – Prime Freehold Tokyo Land Site
JAPAN – Prime Freehold Tokyo Land Site
Slide 49: Landmark Development Site – Tokyo, Japan
JAPAN Landmark Development Site – Tokyo, Japan Acquired in September 2014 – ¥30.5 billion • Freehold 16,815 sqm land site in Tokyo’s affluent Minato ward • Sizeable land parcel includes a 1,340 sqm mansion, the former residence of Seiko Holdings Corporation’s founder, Mr Kintaro Hattori • Acquisitio
Slide 50: Japan – Millennium Mitsui Garden Hotel Tokyo
JAPAN – Millennium Mitsui Garden Hotel Tokyo
Slide 51: Flagship Hotel in Japan – Millennium Mitsui Garden Hotel Tokyo
JAPAN Flagship Hotel in Japan – Millennium Mitsui Garden Hotel Tokyo Opened on 17 December 2014 • M&C’s first hotel in Japan with 329 well-appointed rooms • Strategically located in the heart of Tokyo’s Ginza 4-Chome district • CDL and Mitsui Fudosan Group collaboration • Site was acquired by M&C in
Slide 52: UK Real Estate Development Platform – Established in 2013
UK UK Real Estate Development Platform – Established in 2013 Up to £300 million set aside for UK investment • 6 freehold properties in UK acquired to date for £157 million 28 Pavilion Road, 32 Hans Road, 15 Lansdowne Artist’s Impression Road, Knightsbridge Knightsbridge Croydon 31/35 Chesham Street,
Slide 53: UK – Prime Freehold Riverside Site
UK – Prime Freehold Riverside Site
Slide 54: Proposed Acquisition – February 2015
UK Proposed Acquisition – February 2015 Freehold Riverside Site in Teddington • 18,211 sqm freehold site in a prime residential area in Greater London for £85 million • Exclusive riverside location; along the banks of the River Thames in south-west London • Expected purchase completion in 2H 2015, u
Slide 55: Eling Residences – Chongqing, China
CHINA Eling Residences 鹅岭峰 – Chongqing, China Soft Launch – Targeted in Q2 2015 • Exclusive 126-unit luxury residence • Sited at the peak of Eling Hill in Yuzhong district • All structural works completed • 1st BCA Green Mark Platinum Award* for residential project in China Artist’s Impression *Conf
Slide 56: Huang Huayuan project – Chongqing, China
CHINA Huang Huayuan project – Chongqing, China Good Construction Progress Achieved • Mixed-use riverside development with 3 high-rise residential towers, 150-room hotel and mall • Located beside Jialing River in Yuzhong district • Good progress made in excavation and retaining wall works Artist’s Im
Slide 57: Hong Leong City Center – Suzhou, China
CHINA Hong Leong City Center 丰隆城市中心 – Suzhou, China Sales Permits for Phase 1 Obtained • Mixed-use waterfront development at Jinji Lake, in Suzhou Industrial Park Phase 1 – 462-unit residential tower & 899-unit SOHO tower Phase 2 – 362-unit residential tower, office tower, retail mall & hotel (a
Slide 58: Established foothold in Shanghai, China
CHINA Established foothold in Shanghai, China Via Corporate Acquisition in December 2014 – RMB 799 million • Acquired residential developer Shanghai Jingwen Zhaoxiang Real Estate Limited in Shanghai • Completed luxury residential project in 2013 with 120 residences built on 163,837 sqm land parcel •
Slide 59: Profit Participation Securities (PPS)
NEW PLATFORMS Profit Participation Securities (PPS) Completed in December 2014 – $1.5 Billion Strategic Platform • Strategic partners: Blackstone’s Tactical Opportunities Fund CIMB Bank Berhad, Labuan Offshore Branch • PPS provides: Fixed payment of 5% interest per annum for a period of 5 year
Slide 60: Profit Participation Securities – First-of-its-kind in Singapore
NEW PLATFORMS Profit Participation Securities (PPS) First-of-its-kind in Singapore • Total of $1.5 billion raised for global capital deployment: $750 million : Total aggregated value of PPS by investors $750 million : Senior loan facilities from two banks • Leverages on the solid cashflows of th
Slide 61: 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 62: www.cdl.com.sg
Option 1 Option 1 www.cdl.com.sg www.cdl.com.sg