Singapore Exchange Ltd. · SGX:S68

Singapore Exchange — Perennial Real Estate Holdings — FY2017 Earnings Presentation

60 slides from Singapore Exchange's earnings presentation, Feb 8, 2018

  1. Slide 1: Financial Results for Fourth Quarter and Financial Year Ended 31 December 2017

    PERENNIAL REAL ESTATE HOLDINGS LTD FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FINANCIAL YEAR ENDED 31 DECEMBER 2017 PF ERENNIAL

  2. Slide 2: Disclaimer

    Disclaimer All statements contained in this presentation which are not statements of historical fact constitute “forward looking statements”. These forward-looking statements, including without limitation, those regarding Perennial Real Estate Holding Limited’s financial position and results, busine

  3. Slide 3: Financial Highlights - FY2017 vs FY2016

    Financial Highlights - FY2017 vs FY2016  Declined by 32.4% mainly due to the absence  Increased by 97.4% mainly due to the of revenue from TripleOne Somerset in divestment gain and remeasurement gain of $110.2m S$74.5m Singapore as a result of its deconsolidation following the divestment of a 20.2

  4. Slide 4: Proposed FY2017 Dividend

    Proposed FY2017 Dividend Proposed Dividend Details First and Final Name of Dividend Tax-Exempt Type of Dividend Cash Dividend per Share 1.0 cent Books Closure Date 4 May 2018 Date Payable 18 May 2018 4

  5. Slide 5: Portfolio Highlights

    7, 6, 24,2] g ERENNIAL PORTFOLIO HIGHLIGHTS

  6. Slide 6: Total Asset Composition – By Business

    Total Asset Composition – By Business (As at 31 December 2017) Real Estate Business Complemented by Asset-Light Healthcare Business; China Healthcare Effective Stake Grew From 0.6% (FY2016) to 3.3% (FY2017) TOTAL ASSETS1 BY EFFECTIVE STAKE2 2.1% 2.5% 2.8% 3.3% 0.4% 0.6% 2.4% 1.3% 2.9% 1.1% 20.9% 22.

  7. Slide 7: Total Asset Composition – By Country

    Total Asset Composition – By Country (As at 31 December 2017) China & Singapore Remained as Core Markets with Slightly Higher Weightage on China; Effective Stake China (~72%:FY2017 / ~68%:FY2016) and Singapore (~26%:FY2017 / ~30%:FY2016) TOTAL ASSETS1 BY EFFECTIVE STAKE2 0.4% 0.6% 1.3% 1.1% 26.2% 24

  8. Slide 8: Total Real Estate Portfolio Composition – By Property Value and GFA

    Total Real Estate Portfolio Composition – By Total Property Value and By Total GFA Completed Assets which Account for ~70% of Property Value Provide Income Stability China Developments Account for ~25% of Property Value & ~60% of GFA Present Significant Growth Potential TOTAL PROPERTY VALUE TOTAL GR

  9. Slide 9: China Real Estate Portfolio Composition – Completed Vs Development

    China Real Estate Portfolio Composition – Completed Vs Development China Development Projects To Spur Net Asset Value Growth on Completion CHINA Completed Assets vs. Development Assets (Attributable GFA Basis) 29.9% 52.2% Completed Completed 17.9% Non-Healthcare Development1 Non-Healthcare Completed

  10. Slide 10: China Healthcare Business – Total Operating Beds Composition

    China Healthcare Business – Total Operating Beds Composition Scaling Up the Owner and Operator Model, with Eldercare and Senior Housing Leading the Way CHINA No. of No. of Suite of Total Operating Beds Operating Operating Medical and (By Business Segments) Beds Beds Healthcare- Change (As at (As at

  11. Slide 11: Valuation of Investment Properties

    Valuation of Investment Properties Valuation Valuation Properties FY 20171 FY 20162 CHIJMES, Singapore S$334.03 million S$334.04 million Capitol Singapore5 S$758.34 million S$740.84 million Chinatown Point, Singapore S$429.04 million S$428.04 million Perennial International Health and RMB3,332.06 mi

  12. Slide 12: Perennial's Reputable and Committed Sponsors

    Perennial’s Reputable and Committed Sponsors Perennial’s Four Key Sponsors Own an Aggregate Effective Ownership of 81.3%1 Wilmar Mr Kuok Khoon Hong Mr Ron Sim Mr Pua Seck Guan International Limited • Chairman of the Group • Vice Chairman of the • Asia’s leading agribusiness • Chief Executive Officer

  13. Slide 13: Financial Highlights for Fourth Quarter and Financial Year

    57 66, 14,2) Gg ERENNIAL FINANCIAL HIGHLIGHTS FOR THE FOURTH QUARTER AND FINANCIAL YEAR ENDED 31 DECEMBER 2017

  14. Slide 14: Income Statement (4Q 2017 vs 4Q 2016)

    Income Statement (4Q 2017 vs 4Q 2016) – Explanation of Key Income Line Items 4Q 2017 4Q 2016 Change 1 Oct 2017 to 1 Oct 2016 to S$’000 % 31 Dec 2017 31 Dec 2016 Revenue 15,982 21,512 (25.7) Earnings Before Interest & Tax 63,551 50,740 25.2 (“EBIT”) Profit After Tax less Minority 27,594 25,562 7.9 In

  15. Slide 15: Income Statement (FY2017 vs FY2016)

    Income Statement (FY2017 vs FY2016) – Explanation of Key Income Line Items FY2017 FY2016 Change 1 Jan 2017 to 1 Jan 2016 to S$’000 % 31 Dec 2017 31 Dec 2016 Revenue 74,505 110,191 (32.4) Earnings Before Interest & Tax 219,611 111,231 97.4 (“EBIT”) Profit After Tax less Minority 100,299 35,053 186.1

  16. Slide 16: Income Statement (FY2017 vs FY2016) – Key Income Line Items

    Income Statement (FY2017 vs FY2016) – Explanation of Key Income Line Items Revenue  FY2017’s revenue was mainly contributed by CHIJMES, Perennial Jihua Mall and Perennial Qingyang Mall and the first 3 months of TripleOne Somerset’s revenue. The decrease in revenue in FY2017 versus FY2016 was mainly

  17. Slide 17: Income Statement – Revenue and EBIT by Segment

    Income Statement (FY2017 vs FY2016) – Revenue and EBIT by Segment REVENUE EBIT FY2017 FY2016 Change FY2017 FY2016 Change Note S$’000 S$’000 % S$’000 S$’000 % Singapore 20,206 58,998 (65.8) 105,431 17,631 498.0 1 China 33,014 30,904 6.8 116,115 81,988 41.6 2 Management 29,227 34,863 (16.2) 15,527 21,

  18. Slide 18: Capital Management & Key Financial Indicators

    7, 68, 34,2] g ERENNIAL CAPITAL MANAGEMENT & KEY FINANCIAL INDICATORS

  19. Slide 19: Capital Management and Key Financial Indicators

    Capital Management and Key Financial Indicators Key Financial Ratios As at As at 31 Dec 2017 31 Dec 2016 Net Debt (S$’ 000) 2,233,083 2,489,275 Total Equity (S$’ 000) 3,915,878 3,781,916 Net Debt to Equity Ratio 0.571 0.66 NAV per Share (S$) 1.663 1.631 Debt-Weighted Average Term to Expiry (years) 2

  20. Slide 20: Debt Maturity Profile – As at 31 December 2017

    Debt Maturity Profile – As at 31 December 2017 $’M 2,400 2,356 2,200 2,000 1,800 1,600 1,400 1,200 978 1,000 800 600 455 425 400 256 195 200 47 - Total * 2018 2019 2020 2021 2022 >2023 Singapore Loan China Loan Retail Bond MTN * Being gross amount, without amortised transaction costs 1. The borrowin

  21. Slide 21: Loans and Interest Rates

    Loans and Interest Rates Loan Portfolio Balanced between Secured and Unsecured Loans; Close to 40% of Total Borrowings are on Fixed Interest Rates Loans Interest Rates 47.7% 38.5% 52.3% 61.5% Unsecured Secured Floating Fixed 21

  22. Slide 22: FY2017 Business Review

    G OE 22") SF ERENNIAL FY2017 BUSINESS REVIEW

  23. Slide 23: Business Review – Real Estate, Healthcare and Strategic Initiatives

    Business Review – Real Estate, Healthcare and Strategic Initiatives REAL ESTATE HEALTHCARE Singapore China Other Markets China • Active portfolio • Manage progressive • Secure necessary • Build healthcare business reconstitution opening of various regulatory approvals by focusing on two key • Balanc

  24. Slide 24: Business Review – Real Estate (Singapore)

    G #144] “FA ERENNIAL BUSINESS REVIEW - REAL ESTATE (SINGAPORE)

  25. Slide 25: Singapore: Active Portfolio Reconstitution

    Singapore: Active Portfolio Reconstitution Recycled Capital to Maximise Recurring Income Stream and Enjoy Partial Capital Appreciation Gain  In March 2017, completed the divestment of a 20.2% stake in TripleOne Somerset at a consideration of ~S$101 million, translating to a divestment price of S$2,

  26. Slide 26: TripleOne Somerset – Balanced Strata Sales and Leasing Strategy

    TripleOne Somerset, Singapore – Balanced Strata Sales and Leasing Strategy Gourmet Marketplace Concept for New Retail Podium; FY2017 Total Strata Sales at ~S$41M Artist’s Impressions of Retail Podium  S$120M asset enhancement initiative ongoing with the new two-level retail podium expected to recei

  27. Slide 27: AXA Tower – Balanced Strata Sales and Leasing Strategy

    AXA Tower – Balanced Strata Sales and Leasing Strategy Good Leasing Interest with Strong Renewal Rate and Multiple Requests for Expansions  S$140M asset enhancement initiative ongoing. Completed the implementation of the Destination Control System which is integrated with the security turnstiles fo

  28. Slide 28: CHIJMES – A Popular Destination for Dining and Entertainment

    CHIJMES – A Popular Destination for Dining and Entertainment Year-on-Year Committed Occupancy Increased from 90.3% to 95.9% WTA Courtside@CHIJMES Fringe Event CHIJMES’ Christmas Market Newly-Installed Ambient Lighting Newly-Installed Air Coolers New Tenant – Salon Shun Sakurai  Year-on-year, total

  29. Slide 29: Business Review – Real Estate (China)

    ©} AE th “AF ERENNIAL BUSINESS REVIEW — REAL ESTATE (CHINA)

  30. Slide 30: Chengdu East HSR Integrated Development – Signature Showcase

    Chengdu East HSR Integrated Development – First Integrated Real Estate & Healthcare Signature Showcase Regional Healthcare Hub Located At Key Transportation Nexus of Southwest China 3/4/5-Star Hotels & Serviced Perennial International Apartments Plot C – Health and Medical Hub Offices & Plot D1 – Pl

  31. Slide 31: Perennial International Health and Medical Hub – Development Progress Update

    Perennial International Health and Medical Hub, Chengdu – Development Progress Update To-Date Committed Occupancy stands at 84.6% for the 280,000 sqm Healthcare-centric Development Block A1 Block A1 Block A2  Total to-date committed occupancy stands at 84.6%, with the development registering a year

  32. Slide 32: Perennial International Health and Medical Hub – Medical and Healthcare Offerings

    Perennial International Health and Medical Hub, Chengdu – Holistic Medical and Healthcare-Related Offerings Anchor and Mini-Anchor Medical Tenants will Progressively Commence Operations in 2018 Mini-Anchor Tenants Operator Target Opening Care Alliance Rehabilitation Hospital of Chengdu Care Alliance

  33. Slide 33: Care Alliance Rehabilitation Hospital of Chengdu

    Perennial International Health and Medical Hub – Care Alliance Rehabilitation Hospital of Chengdu Care Alliance’s Largest Hospital in Southwest China Soft-Opened in 4Q 2017 Lobby Wards Rehabilitation Area Rehabilitation Area Rehabilitation Area Rehabilitation Area 33

  34. Slide 34: Chengdu East HSR Plot D2 – Development Progress Update

    Chengdu East HSR Integrated Development Plot D2 – — Development Progress Update Completed External Façade Works for All Six Towers Plot D2 Plot D1 Artist’s Impression may differ from the actual view of the completed property. On-Site Photo  External façade works for all six towers on plot D2 have b

  35. Slide 35: Beijing Tongzhou Integrated Development – Development Progress Update

    Beijing Tongzhou Integrated Development – Development Progress Update Construction Permits Obtained for Four out of Six Plots Artist’s Impression may differ from the actual view of the completed property. Artist’s Impression may differ from the actual view of the completed property.  Construction p

  36. Slide 36: Beijing Tongzhou District – Set to Become a Bustling 'Sub-Centre'

    Beijing Tongzhou District – Set to Become a Bustling ‘Sub-Centre’ of Beijing Source: Beijing Tongzhou District Website Zoned for Administration, Positioned as a Commercial Services and Enhanced Connectivity World-Class Liveable City Cultural Tourism  0.4 million people projected to move  To be dev

  37. Slide 37: Xi'an North HSR Integrated Development – Development Progress Update

    Xi’an North HSR Integrated Development – Development Progress Update Three Towers on Plot 4 have Topped Out; Written Approval Obtained for Healthcare Usage for Plot 5 Artist’s Impression may differ from the actual view of the completed property. Artist’s Impression may differ from the actual view of

  38. Slide 38: Zhuhai Hengqin Integrated Development – Development Progress Update

    Zhuhai Hengqin Integrated Development – Development Progress Update Construction Works Continued to Make Good Progress Hotel/Serviced Apartments Office Tower Cross-border Facilities Building Retail Podium Artist’s Impression may differ from the actual view of the completed property.  Construction o

  39. Slide 39: Shenyang Longemont and Suburban Shopping Malls in Foshan and Chengdu

    Shenyang Longemont Integrated Development and Suburban Shopping Malls in Foshan and Chengdu Operational Retail Portfolio and Overall Portfolio Committed Occupancy at 70.8%2; Overall Portfolio Committed Occupancy at 69.5%2 Occupancy Shopper Traffic Assets Remarks 1 2 1 2 FY2016 FY 2017 Change FY2016

  40. Slide 40: Business Review – Real Estate (Other Markets)

    G AE th “FA ERENNIAL BUSINESS REVIEW — REAL ESTATE (OTHER MARKETS)

  41. Slide 41: The Light City and Accra Integrated Development – Progress Update

    The Light City and Accra Integrated Development – Development Progress Update The Light City, Penang, Malaysia Accra Integrated Development, Ghana Secured Building Plan Approvals Land Tenure Extended to 50 Years Office Hotels Mezzo The Light City The Essence Penang Waterfront Convention Centre and R

  42. Slide 42: Business Review – Healthcare

    G OE 22") SF ERENNIAL BUSINESS REVIEW — HEALTHCARE

  43. Slide 43: Overview of Medical and Healthcare-related Services Platform in China

    Overview of Medical and Healthcare-related Services Platform in China Existing Suite of Medical and Healthcare-related Services Hospitals / Medical Centres Eldercare & Senior Housing Supporting Specialties Perennial International BGI Perennial Genomics St. Stamford International Medical Renshoutang

  44. Slide 44: St. Stamford Modern Hospital, Guangzhou – Facilities Enhancement

    St. Stamford Modern Hospital, Guangzhou – Facilities Enhancement To Elevate Treatment Standards Committed to Remain at the Forefront of Medical Treatment  In line with St. Stamford Modern Hospital’s focus on elevating the standard of medical care and services offered to patients, the hospital compl

  45. Slide 45: St. Stamford Plastic Surgery and Aesthetic Hospital

    Perennial International Health and Medical Hub, Chengdu – St. Stamford Plastic Surgery and Aesthetic Hospital First Specialised Facility in Plastic Surgery and Aesthetics by St. Stamford  The new facility will comprise 36 beds in a 8,400 sqm area located within the Chengdu East High Speed Railway I

  46. Slide 46: Perennial International Specialist Medical Centre

    Perennial International Health and Medical Hub, Chengdu – Perennial International Specialist Medical Centre First Perennial-Owned and Managed Specialist Medical Centre Concept in China  Comprising 60 consultation rooms, the new facility is located within the Chengdu East High Speed Railway Integrat

  47. Slide 47: BGI Perennial Genomics Diagnostic Imaging Centre

    Perennial International Health and Medical Hub, Chengdu - BGI Perennial Genomics Diagnostic Imaging Centre First Joint Venture Facility Between BGI Genomics and Perennial  BGI Genomics (“BGI”) is one of the world’s largest genome sequencing organisations headquartered in Shenzhen.  Positioned as a

  48. Slide 48: Renshoutang – Perennial's Fastest Growing Healthcare Business Line

    Renshoutang – Perennial’s Fastest Growing Healthcare Business Line Capacity Expanded Significantly from 2,425 beds at end-2016 to 3,577 beds at end-2017  Renshoutang, the largest private integrated eldercare services operator in Shanghai, currently operates 3,577 beds. It also has a committed pipel

  49. Slide 49: Renshoutang – Strategic Three-Pronged Approach To Achieve Scale

    Renshoutang – Strategic Three-Pronged Approach To Achieve Scale Set to Become The Largest Integrated Eldercare Operator in the Yangtze River Delta Region 1 Leasing Model 2 PPP Model 3 Acquisition Model • Lease and operate • Partner local • Operate facilities that are facilities owned by local govern

  50. Slide 50: Renshoutang – Set to Become One of The Largest Eldercare Operators

    Renshoutang – Set to Become One of The Largest Eldercare Operators Opened Three New Facilities in FY2017, With Another Three Commencing Operations in FY2018 In FY2017, Newly-Opened Facilities Grew Capacity by 1,152 Beds to 3,577 Zhenjiang Jurong Yixian Zhenjiang Yixian Eldercare and Yixian Baoshan E

  51. Slide 51: Renshoutang – Pioneering a Seamlessly Integrated Senior Living Experience

    Renshoutang – Pioneering a Seamlessly Integrated Senior Living Experience Offering the Elderly a Comfortable Living Environment in Retirement Hongqiao Xiehe Eldercare and Retirement Home, Shanghai Wuhan Jiuzhoutong Xiehe Eldercare and Retirement Home Chengdu Xiehe Home 51

  52. Slide 52: Aidigong – Maternal and Child Health Business Growing Steadily

    Aidigong – Maternal and Child Health Business Growing Steadily Currently Operating 290 Beds with a Committed Pipeline of 72 Beds; Stronghold in Shenzhen, Presence in Beijing and Upcoming Centre in Chengdu SHENZHEN AND Maternal & Child Health Centre, Xiangmihu 爱帝宫国际母婴月子会所 ，香蜜湖 81 beds AND Maternal &

  53. Slide 53: AND Maternal and Child Health Centre, Chengdu

    Perennial International Health and Medical Hub, Chengdu – AND Maternal and Child Health Centre Set to Become the Largest Maternal and Child Health Centre in Chengdu  The new facility will comprise 72 beds in a 8,300 sqm facility located within the Chengdu East High Speed Railway Integrated Developm

  54. Slide 54: Envision to Become an International Healthcare and Medical Services Provider

    Envision to Become an International Healthcare and Medical Services Provider in China HEALTHCARE BUSINESS Main Business Segments Hospitals / Medical Centres Eldercare & Senior Housing Independent Living Traditional Specialist Women and Geriatric and General Chinese Medical Children Rehabilitation As

  55. Slide 55: Strategic Initiatives

    G fe 12] SF ERENNIAL STRATEGIC INITIATIVES

  56. Slide 56: Strategic Investment in United Engineers

    Strategic Investment in United Engineers Investment Strengthens Perennial’s Position in the Core Markets of Singapore and China  On 13 July 2017, Perennial led a consortium with Yanlord Land Group Limited (“Yanlord”) to acquire a 33.5% stake in United Engineers Limited (“United Engineers”) at S$2.6

  57. Slide 57: US$1.2 Billion JV Vehicle to Invest in HSR Healthcare Developments

    US$1.2 Billion JV Vehicle to Invest in HSR Healthcare Integrated Mixed-use Developments in China Potentially Grow Perennial’s HSR Portfolio to Up to Eight Projects with Total GFA of Over 4 Million sqm Chengdu East HSR Xi’an North HSR Integrated Development Integrated Development  On 3 Jan 2018, Per

  58. Slide 58: Looking Forward

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  59. Slide 59: Looking Forward

    Looking Forward  Launch Perennial’s signature integrated real estate and healthcare showcase, Chengdu East High Speed Railway Integrated Development, which comprises the upcoming Perennial International Health and Medical Hub and the Chengdu Xiehe Home on Plot D2.  Build on our integrated real est

  60. Slide 60: Investor Relations and Media Contact

    Investor Relations and Media Contact Ms. Tong Ka-Pin DID : (65) 6602 6828 HP : (65) 9862 2435 Email: tong.ka-pin@perennialrealestate.com.sg Website: www.perennialrealestate.com.sg 60

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