Slide 1: Annual Results
ANNUAL RESULTS WING TAI PROPERTIES LIMITED 永泰地產有限公司
Slide 2: Agenda
Agenda A Snapshot of 2013 Key Achievements Sustainable Growth Land Bank Business Review Property Development Property Investment & Management Hospitality Investment & Management Strengthened Capital Structure Future Plans & Strategies 2013 Annual Results Highlight Appendix 2
Slide 3: Disclaimer
Disclaimer This presentation contains forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forward- looking terminology such as believe, expect, anticipate, estimate, plan, project, target, may, will or other similar words that expre
Slide 4: A Snapshot of 2013
A Snapshot of 2013 | J a y (s!
Slide 5: 2013 Key Achievements
2013 Key Achievements Although 2013 was a challenging year for Hong Kong residential market, our investment properties continued to report a strong growth in rental reversion and recurring income, as well as good fair market value gains Achieved consolidated revenue of HK$1,736 million and net profi
Slide 6: 2013 – Sustainable Growth
2013 – Sustainable Growth Shareholders’ Equity (HK$’M) 20,894 18,360 12,928 10,910 8,980 2009 2010 2011 2012 2013 Disciplined execution of the Group’s strategies and expansion plans over the past few years Our core competencies – a fully integrated business platform, balanced asset portfolio and a h
Slide 7: Balance and Diversified Land Bank in Hong Kong
Balance and Diversified Land Bank in Hong Kong 1 2 3 4 4 5 Hung Hom 6 6 Kau To, Shatin (two plots) 7 12 7 Siu Sau, Tuen Mun 8 Shau Kei Wan 11 5 9 9 1 3 13 8 10 2 10 11 Shui Hing Centre (Industrial property) 12 Winner Godown Building (Industrial property) 13 Development properties Investment properti
Slide 8: Land Bank (as at 23 April 2014)
Land Bank (as at 23 April 2014) Strategic land bank with focus on Hong Kong Attributable Hong Kong China Others Total Valuation# Gross Floor Area (’000 sq. ft.) (’000 sq. ft.) (’000 sq. ft.) (’000 sq. ft.) (HK$’M) Residential Development 600* 105 — 705 N/A Investment Property Office/Retail 1,467 —
Slide 9: Property Development
Property Development
Slide 10: Sales and Development Pipeline (as at April 2014)
Sales and Development Pipeline (as at 23 April 2014) A sustainable and scalable residential project pipeline Aggregate Presold/Sold Expected occupation permit date Property Gross Gross 2017 Development Group’s Floor Area Floor Area 2014 2015 2016 and Portfolio Interest (’000 sq. ft.) (’000 sq. ft.)
Slide 11: Completed Development
Completed Development Seymour, 9 Seymour Road, Mid-Levels 4 units were sold in 2013 Over 96% of the units have been sold to- date Belle Vue Residences, Singapore Completely sold out after the remaining 5% of the units sold in 2013 11
Slide 12: Completed Development – Con’t
Completed Development – Con’t Providence Bay, Providence Peak, The Graces, Pak Shek Kok, Tai Po Providence Bay: approximately 60% of the units were sold as at 31 December 2013 Providence Peak: approximately 81% of the units were sold as at 31 December 2013 The Graces: 48% of the units were sol
Slide 13: Sales and Development Pipeline
Sales and Development Pipeline The Warren, 9 Warren Street, Causeway Bay Over 76% of the units had been pre-sold as at 31 December 2013 Occupation permit has been obtained Approximately HK$1 billion revenue was recognised in 2013 Sold units are expected to be delivered in 2014 The Pierre, 1
Slide 14: Sales and Development Pipeline – Con’t (Hung Hom)
Sales and Development Pipeline – Con’t Hung Hom Right adjacent to the Ho Man Tin district In close proximity to the to-be-completed MTR Shatin-to-Central Link GFA of approximately 153,000 sq. ft. Wing Tai is the lead project manager and lead sales and marketing manager Superstructure works
Slide 15: Sales and Development Pipeline – Con’t (Lujiazui)
Sales and Development Pipeline – Con’t Lujiazui, Shanghai Located along the Huangpu River and in close proximity to central Pudong The property comprises 97 apartment units and a gross floor area of around 210,000 sq. ft. Wing Tai is the lead project manager and lead sales and marketing manage
Slide 16: Recent Acquisitions
Recent Acquisitions Kau To, Shatin The Group has a 35% interest in each of the two sites acquired in August 2012 and January 2013 The sites, with an aggregate gross floor area of approximately 460,000 sq. ft., are earmarked for low-density luxury apartments and houses Wing Tai is the joint lea
Slide 17: Recent Acquisitions – Con’t
Recent Acquisitions – Con’t Siu Sau, Tuen Mun Low-density residential development site at Castle Peak Road - Tai Lam, Siu Sau in Tuen Mun acquired in August 2013 The site, with a gross floor area of approximately 159,000 sq. ft., is earmarked for low-density luxury apartments and houses The pr
Slide 18: Property Investment & Management
Property Investment & Management
Slide 19: Investment Portfolio in Hong Kong
Investment Portfolio in Hong Kong Average rental Leases Gross floor Occupancy Leases reversion expiring/rent area as at renewed upon lease review (‘000 sq. ft.) 31 Dec 2013 in 2013 renewal in 2014 Landmark East 1,338 99% 44% 45% 27% (AIA Kowloon Tower, and Grade-A AXA Tower) Offices/ Retail W Square
Slide 20: Investment Portfolio in London
Investment Portfolio in London Commercial Property at No. 1 Savile Row, West End Redevelopment completed in late 2013 with total net internal area of approximately 14,000 sq. ft. of Grade-A office Retail spaces are fully leased Achieved an occupancy of approximately 66% to-date 8-12 (even) Bro
Slide 21: Hospitality Investment & Management
Hospitality Investment & Management
Slide 22: Hospitality Portfolio
Hospitality Portfolio Strong brand recognition in Asian gateway cities by customers and property owners Lanson Place Properties – Lanson Place Properties – Management Investment & Management Lanson Place Jin Qiao Lanson Place Central Park Serviced Residences Serviced Residences No. of units/rooms: 1
Slide 23: Hospitality Investment and Management
Hospitality Investment and Management Manages 9 properties in Hong Kong, gateway cities of China and South East Asia, with investments in 4 of them Completed refurbishment at wholly-owned Lanson Place Hotel in Hong Kong and Lanson Place Jinlin Tiandi Serviced Residences in Shanghai Lanson Place Cent
Slide 24: Future Plans & Strategies
Future Plans & Strategies
Slide 25: Future Plans & Strategies
Future Plans & Strategies In near term In mid-to-long term Property Launching new projects (e.g. Hung Hom, Capitalising on government’s initiative to Development Shanghai) at the right market window increase land supply, continue to proactively explore acquisition opportunities to replenish land
Slide 26: 2013 Annual Results Highlight
2013 Annual Results Highlight
Slide 27: Financial Results Summary
Financial Results Summary For the year ended 31 December 2012 (HK$’M) 2013 (Restated)* Continuing operations Revenue 1,736 892 95% Gross profit 819 667 23% Change in fair value of investment properties 2,084 3,480 40% Profit from operations 2,723 4,228 36% Share of results of joint ventures/associat
Slide 28: Segment Results Overview
Segment Results Overview For the year ended 31 December 2012 (HK$’M) 2013 (Restated) Property development Revenue 1,010 211 379% Profit before taxation 290 526 45% Property investment & management Revenue 579 539 7% Increase in fair value of investment properties 1,986 3,177 37% Profit before taxati
Slide 29: Balance Sheet Summary
Balance Sheet Summary 31 December 31 December 2012 (HK$’M) 2013 (Restated) Total assets 26,705 23,578 13% Net assets 20,895 18,362 14% Equity attributable to equity holders of the Company 20,894 18,360 14% Investment properties 19,003 16,322 16% Properties for sale 1,425 1,324 8% Bank balances and c
Slide 30: Balance Sheet Summary – Con’t
Balance Sheet Summary – Con’t 31 December 31 December 2012 (HK$’M) 2013 (Restated) Total borrowings 4,687 4,105 14% Net borrowings (total borrowings minus cash) 3,445 3,025 14% Gearing ratio (net borrowings to net assets) 16.5% 16.5% Maturity profile of borrowings Repayable: Within one year 1,740 37
Slide 31: Appendix
Appendix
Slide 32: Investment Thesis
Investment Thesis A credible and integrated property player in Hong Kong 1 with a balanced and growing development and investment portfolio Strong track record in developing luxury and quality residential properties 2 at premium values Owns a portfolio of high-quality Grade-A office and hospitality
Slide 33: Strengthened Capital Structure
Strengthened Capital Structure November 2012 November 2012 January 2013 May 2013 First drawdown of Second drawdown Third drawdown of Established the S$170 million of HK$480 million HK$100 million US$1 billion unrated 10-year unrated 10-year unrated 10-year unsecured MTN fixed rate notes at fixed rat
Slide 34: Five Years Financial Summary
Five Years Financial Summary Year ended 31 December 2012 2011 2010 2009 2013 (Restated) (Restated) (Restated) (Restated) HK$’M HK$’M HK$’M HK$’M HK$’M RESULTS Revenue from continuing operations 1,736.2 891.7 1,191.0 1,416.0 405.1 Profit before taxation from continuing operations 2,746.2 4,612.1 2,84
Slide 35: Five Years Financial Summary – Con’t
Five Years Financial Summary – Con’t As at 31 December 2012 2011 2010 2009 2013 (Restated) (Restated) (Restated) (Restated) HK$’M HK$’M HK$’M HK$’M HK$’M ASSETS AND LIABILITIES Total assets 26,705.1 23,578.1 20,212.5 17,631.2 15,683.2 Total liabilities (5,809.9) (5,216.3) (4,849.8) (4,377.6) (4,874.