Wing Tai Properties Limited · HKEX:369
Wing Tai Properties — H1 2018 Earnings Presentation
42 slides from Wing Tai Properties's earnings presentation, 2018
Slide 1: Wing Tai Properties Limited Interim Results 2018
WING TAI PROPERTIES LIMITED 永泰地產有限公司 INTERIM RESULTS 2018
Slide 2: Agenda
Agenda A Snapshot of 1H 2018 • Key Achievements • Sustainable Growth • Land Bank Business Review • Property Development • Property Investment & Management • Hospitality Investment & Management • Strengthened Capital Structure Future Plans & Strategies 2018 Interim Results Highlights 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 similar words that express an
Slide 4: A Snapshot of 1H 2018
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Slide 5: Key Achievements
Key Achievements • We focus on growing a portfolio that offers a solid base of predictable, recurring revenue from the investment/hospitality properties we own and manage, balanced by our premium residential developments that provide outperformance driven by dedicated management. This consistent str
Slide 6: Key Achievements – cont’d
Key Achievements – cont’d • With a view to strategically repositioning and expanding our asset portfolio, we have established a good presence in both the traditional CBD and the growing CBD2 in Kowloon East. Regarding our prime commercial complex site at Gage Street/Graham Street in Central, master
Slide 7: Sustainable Growth
Sustainable Growth HK$’M Total Equity 29,000 27,000 25,000 23,000 21,000 19,000 17,000 15,000 2012 2013 2014 2015 2016 2017 1H 2018 • To further grow and diversify our asset portfolio to create long-term value for our stakeholders 7
Slide 8: Balanced and Diversified Land Bank in Hong Kong
Balanced and Diversified Land Bank in Hong Kong 1 2 3 14 4 3 5 Shau Kei Wan 7 4 6 So Kwun Wat Road, 6 Tuen Mun Castle Peak Road, Tai Lam, 7 Tuen Mun 10 2 9 Gage Street/Graham Street, 8 Central 11 8 5 9 Landmark East 10 Shui Hing Centre 11 Development properties Investment properties 8
Slide 9: Land Bank (as at 30 June 2018)
Land Bank (as at 30 june 2018) Strategic land bank with focus on Hong Kong Land Bank Overview (sq. ft.) Prope rty De ve lopment 37% Inve stment Property 63% Valuation as at Attributable Hong Kong Mainland China Others Total 30 June 2018 Gross Floor Area / Saleable Area (’000 sq. ft.) (’000 sq. ft.)
Slide 10: Business Review
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Slide 11: Property Development
Property Development 11
Slide 12: Sales and Development Pipeline (as at 30 June 2018)
Sales and Development Pipeline (as at 30 june 2018) A sustainable and scalable project pipeline Available Estimated Completion Gross Property Development Portfolio 2020 – Beyond Group’s Floor Area 2018 2019 (’000 sq. ft.) 2022 2022 Interest Hong Kong Providence Bay* 6 15% Completed Providence Peak*
Slide 13: Completed Development in Hong Kong
Completed Development in Hong Kong Providence Bay, Providence Peak, The Graces, Pak Shek Kok, Tai Po • Providence Bay (482 units) and Providence Peak (548 units): approximately 99% of the residential units have been sold • The Graces (193 units): all the residential units have been sold 13
Slide 14: Completed Development in Hong Kong – cont’d
Completed Development in Hong Kong – cont’d Homantin Hillside (173 units), 8 Wai Yin Path, Hung Hom • Saleable area of approximately 128,000 sq. ft. • Approximately 99% of the residential units have been sold, including all typical units at the development 14
Slide 15: Completed Development in Hong Kong – cont’d
Completed Development in Hong Kong – cont’d Le Cap, Kau To, Shatin • Low-density luxury residential project at peak of Kau To Shan • Saleable area of approximately 142,800 sq. ft. • Certificate of compliance obtained in March 2018 • In 1H 2018, approximately 12% of the residential units were sold si
Slide 16: Project Under Development in Hong Kong
Project Under Development in Hong Kong La Vetta, Kau To, Shatin • Low-density luxury residential project • Gross floor area of approximately 318,000 sq. ft. • Occupation permit obtained in March 2018 • Pre-sale consent obtained in November 2017 • Scheduled for completion in 2018 16
Slide 17: Project Under Development in Hong Kong – cont’d
Project Under Development in Hong Kong – cont’d Shau Kei Wan • Prime harbour-front residential site • Gross floor area of approximately 46,000 sq. ft. • Occupation permit obtained in August 2018 • Pre-sale consent obtained in July 2017 • Superstructure work in progress • Project scheduled for comple
Slide 18: Project Under Development in Hong Kong – cont’d
Project Under Development in Hong Kong – cont’d The Carmel, Siu Sau, Tai Lam, Tuen Mun • Gross floor area of approximately 159,000 sq. ft. • Earmarked for low-density residential development • Superstructure work underway • Project scheduled for completion in 2019 18
Slide 19: Project Under Development in Hong Kong – cont’d
Project Under Development in Hong Kong – cont’d So Kwun Wat Road, Tuen Mun • Gross floor area of approximately 264,000 sq. ft. • Earmarked for medium-density residential development • Foundation work and site formation work in progress • Project scheduled for completion in 2021 19
Slide 20: Project Under Development in Hong Kong – cont’d
Project Under Development in Hong Kong – cont’d Castle Peak Road, Tai Lam, Tuen Mun • Gross floor area of approximately 294,000 sq. ft. • Earmarked for medium-density residential development • Foundation work and site formation work in progress • Project scheduled for completion in 2022 20
Slide 21: Project Under Development in Hong Kong – cont’d
Project Under Development in Hong Kong – cont’d Commercial Complex at Gage Street/Graham Street, Central • Combined gross floor area up to 460,000 sq. ft. • Earmarked for commercial complex development encompassing a Grade A office tower, a hotel, retail shops and public open space • Forming part of
Slide 22: Property Investment & Management
Property Investment & Management 22
Slide 23: Investment Portfolio in Hong Kong
Investment Portfolio in Hong Kong Gross floor area Occupancy as at (’000 sq. ft.) 30 June 2018 Landmark East Grade A (AIA Kowloon Tower/ 1,338 98% Offices AXA Tower) Industrial Shui Hing Centre 187 96% Properties • In January 2018, the Group disposed of its entire interest in W Square, an office and
Slide 24: Investment Portfolio in London
Investment Portfolio in London Commercial Property at Savile Row/Vigo Street, West End • Net internal area of approximately 14,000 sq. ft. of Grade A office and retail space Commercial Property on Brook Street, West End • Net internal area of approximately 19,000 sq. ft. of Grade A office and retail
Slide 25: Investment Portfolio in London – cont’d
Investment Portfolio in London – cont’d Commercial Property on Fleet Place, the City • Group’s interest of 25% • Net internal area of approximately 186,000 sq. ft. of Grade A office and retail space • Achieved 94% occupancy Commercial Property at Cavendish Square, West End • Group’s interest of 33%
Slide 26: Investment Portfolio in Beijing
Investment Portfolio in BEIJING Central Park, 6 Chaoyangmenwai Avenue, Chaoyang District • 33 units • Gross floor area of approximately 6,200 sq. m. • As at 30 June 2018, approximately 91% of the units were leased 26
Slide 27: Hospitality Investment & Management
Hospitality Investment & Management 27
Slide 28: Hospitality Portfolio
Hospitality Portfolio Strong brand recognition in HK & key gateway cities in Asia by customers and property owners Lanson Place Properties – Investment & Management Lanson Place Hotel • Group’s interest: 100% • No. of rooms: 194 Shanghai • Location: Hong Kong Chengdu Lanson Place Lifestyle Services
Slide 29: Hospitality Portfolio – cont’d
Hospitality Portfolio – cont’d Strong brand recognition in HK & key gateway cities in Asia by customers and property owners Lanson Place Properties – Management Tianfu Square Serviced Suites Lanson Place Jin Qiao by Lanson Place Serviced Residences • No. of units: 162 • No. of units: 102 • Location:
Slide 30: Hospitality Investment and Management
Hospitality Investment and Management • Lanson Place has signed a new 10-year management contract to manage a brand new luxurious serviced apartment project in Melbourne, which is scheduled for completion in 2022. This marks Lanson Place’s first property in Australia. • Lanson Place currently manage
Slide 31: Strengthened Capital Structure
Strengthened Capital Structure November January 2013 May 2013 August 2014 October 2014 November August 2017 November 2012 2014 2017 Second Third Fourth Fifth Sixth Seventh Eighth First drawdown of drawdown of drawdown of drawdown of drawdown of drawdown of drawdown of drawdown of HK$480 HK$100 HK$10
Slide 32: Future Plans & Strategies
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Slide 33: Future Plans & Strategies
Future Plans & Strategies In near term In mid-to-long term Property • Focus on the second phase of sales • Taking advantage of public land tender Development launch of Le Cap while making full programme and private treaty for preparation for the launch of La Vetta at development properties, be they
Slide 34: 2018 Interim Results Highlights
2018 Interim Results highlights
Slide 35: Financial Results Summary
Financial Results Summary For the six months ended 30 June (HK$’M) 2018 2017 Revenue 469.5 545.8 14% Gross profit 370.1 407.4 9% Change in fair value of investment properties and 232.5 254.1 9% financial instruments Profit from operations 1,090.1 480.9 127% Share of results of joint ventures/associa
Slide 36: Segment Results Overview
Segment Results Overview For the six months ended 30 June (HK$’M) 2018 2017 Property Development Revenue 16.4 94.0 83% (Loss)/profit before taxation (68.9) 9.4 833% Property Investment & Management Revenue 373.1 381.2 2% Fair value changes in investment properties and financial 298.7 229.9 3
Slide 37: Balance Sheet Summary
Balance Sheet Summary 30 June 31 December (HK$’M) 2018 2017 Total assets 35,420.5 35,496.1 - Net assets 28,543.0 27,809.9 3% Equity attributable to shareholders of the 3% company 27,023.3 26,289.9 Investment properties (including assets 19,638.4 21,442.1 8% classified as held for sale) Properties fo
Slide 38: Balance Sheet Summary – cont’d
Balance Sheet Summary – cont’d 30 June 31 December (HK$’M) 2018 2017 Total borrowings 5,320.6 6,184.1 14% Net borrowings 1,331.2 5,529.9 76% Gearing ratio 4.7% 19.9% (net borrowings to net assets) Maturity profile of borrowings Repayable: Within one year 513 10% 1,402 23% Between one and two years 1
Slide 39: Appendix
appendix
Slide 40: Investment Thesis
Investment Thesis A credible and integrated property player in Hong Kong with a balanced and well-diversified 1 development and investment portfolio spanning the region and beyond Strong track record in developing luxury and quality residential properties 2 at premium values Owns a diversified portf
Slide 41: Five Years’ Financial Summary
Five Years’ Financial summarY Interim Results Full Year Results 1H 2018 1H 2017 2017 2016 2015 2014 2013 (HK$’M) RESULTS Continuing operations revenue 469.5 545.8 1,064.3 1,103.3 1,009.2 1,783.5 1,736.2 Profit before taxation from continuing operations 1,112.2 504.3 2,101.0 1,260.4 1,182.3 2,033.1 2
Slide 42: Five Years’ Financial Summary – cont’d
Five Years’ Financial summarY – cont’d As at 30 June As at 31 December 1H 2018 2017 2016 2015 2014 2013 (HK$’M) ASSETS AND LIABILITIES Total assets 35,420.5 35,496.1 30,776.1 28,220.9 27,527.8 26,705.1 Total liabilities (6,877.5) (7,686.2) (6,464.0) (4,873.6) (4,847.6) (5,809.9) Equity attributable