Financial Year 2007 Results Financial Year 2007 Results 29 Jan 2008 - - PowerPoint PPT Presentation

Financial Year 2007 Results Financial Year 2007 Results

29 Jan 2008

2

Content

• Financial Performance
• Operations Review
• Market Outlook
• Going Forward

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Financial Performance

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PATMI more than tripled to $779.7 m

FY07 Financial Achievements

NTA / Share up 44% to $3.18 ROE of 46.2% Net debt to equity ratio falls 60.6% to 0.41

* Excluding revaluation gains on investment properties

ROE of 25.8%* a new high

5

Financial Highlights

$m FY2007 FY2006 % Chg

Turnover 1,407.9 948.0 48.5 EBITDA 321.9 215.3 49.5 Operating Profit 312.3 204.1 53.0 Pre-tax Profit 531.7 263.4 101.9 PATMI 779.7* 200.3 289.3

* Includes corporate restructuring surplus / enbloc property sales ($235.2m) less impairment provision ($78.5m), and net gain on revaluation of investment properties ($343.6m)

6

Key Ratios

$m FY2007 FY2006 % Chg EPS (¢) 108.3 27.9 288.2 NTA Per Share ($) 3.18 2.21 43.9 Net Debt / Equity Ratio (x) 0.41 1.04 (60.6) ROE (%) 46.2 12.8 260.9 ROE (%) 25.8* 12.8 101.6 Dividend Per Share 20 6 233.3

Final Dividend (¢) 8 6 33.3 Special Dividend (¢) 12

• * Excluding revaluation gains on investment properties

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Net Profit – By Business Segment

Business FY2007 FY2006 % Comments Segment $m $m Chg Trading 274.9 150.7 82.4 Investment 30.9 27.6 12.0 Fund Management 14.1 9.6 46.9 Hotels / Resorts (1.1) (4.0) nm Less Interest and Overheads 39.4 29.6 nm Surplus from corporate 156.7 46.0 240.7 restructuring less impairment provision PATMI before revaluation 436.1 200.3 117.7 Net gain on revaluation of 343.6

• nm

investment properties PATMI after revaluation 779.7 200.3 289.3

Higher due mainly to contributions from Reflections at Keppel Bay, Marina Bay Residences and Sixth Avenue Residences in Singapore; Villa Riviera, The Seasons and The Arcadia in China; and Elita Promenade in India Surplus from ownership restructuring

• f One Raffles Quay less diminution

in value of Myanmar hotels and Indonesian Rupiah Higher interest and overhead costs Higher due mainly to write-back of tax provisions Share of revaluation gains from

• ffice portfolio

Smaller loss due to lower depreciation Including contribution from K-REIT Asia

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Net Profit – By Geographical Location

Geographical FY2007 FY2006 % Comments Location $m % $m % Chg Singapore 168.8 60.4 56.2 36.4 200.4 Other countries 110.6 39.6 98.1 63.6 12.7 Surplus from 156.7 46.0 240.7

• corp. restructuring

less impairment provision PATMI before 436.1 200.3 117.7 revaluation Net gain on 343.6

• nm

revaluation of investment properties PATMI after 779.7 200.3 289.3 revaluation

Higher due mainly to contributions from Reflections at Keppel Bay, Marina Bay Residences and Sixth Avenue Residences Higher due to contributions from The Seasons, Villa Riviera and The Arcadia in China and Elita Promenade in India Share of revaluation gains from

• ffice portfolio

Surplus from ownership restructuring of One Raffles Quay less diminution in value of Myanmar hotels and Indonesian Rupiah

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Notes on Profit Recognition

Project % of % of Profit Recognised Sales Completion in FY2007 ($m)

SINGAPORE

Marina Bay Residences (428 units) 100 17.4 30.0 Park Infinia at Wee Nam (486 units) 92 79 69.0 Urbana (126 units) 100 100 15.5 Reflections at Keppel Bay (1,129 units) 51.3 7.3 18.6

OVERSEAS

The Seasons, Beijing, China (1,859 units) Ph 1 (990 units) 100 100 38.2 Ph 2 (869 units) 99.6 93.8 8 Park Avenue, Shanghai, China (946 units) Ph 1 (85 units) 100 100 19.3 Ph 2 (371 units) 100 99.7 Ph 3 (96 units) 89.8 77.1 Villa Riviera, Shanghai, China (168 units) Ph 1 (42 units) 100 96.4 13.4 Ph 2 (46 units) 57.1 93.9 Elita Promenade, Bangalore, India (1,573 units) Ph 1 (944 units) 91.7 71.6 10.2 Ph 2 (629 units) 28.5 20.5

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Operations Review

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Singapore Residential

Sold About 760 Units in 2007

Reflections at Keppel Bay Park Infinia at Wee Nam

Reflections at Keppel Bay

• 1,129 units
• Ph 1 (620 units) fully sold

Park Infinia at Wee Nam

• 486 units
• 100% of 434 launched units sold

Other Projects Fully Sold

• The Suites at Central (157 units)
• Freesia Woods (129 units)
• Urbana (126 units)
• The Linc (51 units)
• The Elysia (40 units)

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Singapore Commercial

3.8m sf NLA Under Development in CBD and New Downtown

• Both phases >50% pre-committed by

major financial institutions

Marina Bay Financial Centre Marina Bay Financial Centre Ocean Financial Centre Ocean Financial Centre

• 43-storey Grade A office building
• 850,000 sf NLA
• Up to 23,000 sf column-free floor plates
• Completion : 2011

Marina Bay Financial Centre Ocean Financial Centre

NLA Anchor Tenant Completion Ph 1 1.6m sf (0.5m sf) 2010 Ph 2 1.3m sf (0.7m sf) 2012

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Singapore Commercial

Completed Sale of 1/3 ORQ Stake to K-REIT Asia

• Unlocking value and recycling

capital into projects with higher returns

• Surplus of $235.2 m from

restructuring of one-third stake in One Raffles Quay

• Gearing reduced substantially

to 0.41

One Raffles Quay

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Singapore Commercial

K-REIT Asia Continues to Outperform

• Distribution Per Unit (DPU) of 8.82 cents, up 30.5% from FY2006
• Asset size up 210% from $677m to $2.1b, with ORQ (1/3 interest)
• Portfolio’s net lettable area up 57% from 73,108 sm to 114,426 sm
• Full committed occupancy as at 31 Dec 2007
• K-REIT to raise up to $700 m through rights issue

– KCL and KLL undertake to take up : respective allocations of the Units and any Units not subscribed for by minority Unitholders

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India India

Overseas

Good Response to New Launches and Releases

China China

• Central Park City, Wuxi (4,700 units)
• 80% of 728 launched units sold
• The Botanica Ph 3, Chengdu (1,048 units)
• 91% of 788 launched units sold
• 8 Park Avenue, Shanghai (946 units)
• 92% of latest 96 units released sold
• Elita Garden Vista, Kolkata (1,376 units)
• 62% of 351 launched units sold

The Botanica (Ph 3), Chengdu Elita Garden Vista, Kolkata Central Park City, Wuxi

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Overseas

Sold About 2,800 Units Overseas in 2007, Mostly in China and India

China China

• Beijing

– The Seasons (1,859 units) : 100% sold

• Chengdu

– The Botanica Ph 2 (1,476 units) : 100% sold – The Waterfront (1,143 units) : 100% sold

• Shanghai

– Villa Riviera (168 units)

• 82 units launched : 90% sold

India India Vietnam Vietnam

• Bangalore

– Elita Promenade (1,573 units)

• 1,437 units launched : 82% sold
• Ho Chi Minh City

– Villa Riviera (101 units) : 100% sold

The Seasons, Beijing The Botanica (Ph 2), Chengdu The Waterfront, Chengdu Villa Riviera, HCMC

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Overseas

Expanded Presence in China

• 26.4-ha site in Xinchang Town
• 3,000 homes comprising terrace

houses and apartment blocks

• Launch : 2009
• 24-ha site in Shenbei New District
• 5,400 units
• Launch : 2009

Residential Development, Nanhui, Shanghai Residential Development, Nanhui, Shanghai Residential Township, Shenbei, Shenyang Residential Township, Shenbei, Shenyang

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Overseas

Secured Eight Residential Projects in Vietnam in 2007

Project Site Location

• No. of

Units Launch

The Estella (prime condo) An Phu Ward, District 2 1,500 2008 Luxury waterfront condo Binh Thanh District 549 2008 Luxury waterfront condo District 7 2,394 2008 Waterfront township Dong Nai Province 14,000 2010 Prime condo District 2 1,500 2009 Villa development District 9 204 2009 Prime condo District 9 1,939 2009 Luxury villa District 9 139 2009

Total No. of New Units 22,225 1 2 3 4 5 6 7 8 2 1 3 5 6 7 4 Dong Nai

township

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HCMC

Sixfold increase in landbank to 53 mil sf GFA Sixfold increase in landbank to 53 mil sf GFA

Existing Keppel Land developments

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Overseas

Entered the Middle East Market

• 3.6-ha waterfront site in

prestigious North Corniche residential precinct

• 1,000 luxury seafront

apartments

• Launch : 2008

Jeddah, Saudi Arabia Jeddah, Saudi Arabia

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Overseas

Scale Up Residential Township Developments

The Botanica

Chengdu, China (8,200 units)

Jakarta Garden City

Jakarta, Indonesia (7,000 units)

Saigon Sports City

HCMC, Vietnam (3,000 units)

Central Park City

Wuxi, China (4,700 units)

Residential Township

Shenyang, China (5,400 units)

Residential Township

Dong Nai, Vietnam (14,000 units)

2003 2003 2004 2004 2005 2005 2007 2007 2006 2006 Spread over 6 cities in 3 countries in the region Spread over 6 cities in 3 countries in the region

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* When fully leveraged and invested ^ Current portfolio

• Portfolio value up to S$2.1 bn with acquisition of
• ne-third stake in One Raffles Quay

Total Assets Under Management of S$6.1 bn * Total Assets Under Management of S$6.1 bn *

Fund Management Growth

K-REIT Asia K-REIT Asia Alpha Alpha

Funds Committed %

• No. of

Equity Invested Countries Invested in AIB Alpha Japan Fund US$172m 26% 1 (set up in 2007) (S$258m) Alpha Core Plus Real US$437m 100% 4 Estate Fund (S$720m) Asia No. 1 Property Fund US$243m 100% 5 (S$400m) Islamic Shariah Fund US$119m ^ 100% 4 (S$180m)

US$0.6bn (S$1.0bn) US$1.4bn (S$2.3bn) US$4.0bn (S$6.1bn) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 2004 2005 2006 2007

Total Assets Under Management *

Alpha K-REIT Asia US$2.3bn (S$3.7bn) b

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Recent Corporate Awards

• BT Corporate Transparency Index (22 Jan 2008)

– Ranked 4th out of 675 companies

• SIAS Investors’ Choice Awards 2007

– Runner-up or Most Transparent Company Award in Property category

• Finance Asia Best Managed Companies

– Among Top Five in Singapore for : Best Managed Company Most Committed to Corporate Governance Best Investor Relations

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• BCA Green Mark Award

– Gold Award for Marina Bay Residences (2007)

• Vietnam Economic Times Golden Dragon Award 2007

– Sedona Suites Hanoi

• The Guide Awards - Suave Choice Apartments 2007

– Sedona Suites Hanoi – Sedona Suites HCMC

• Asian Golf Monthly Awards 2007

– Best Golf Resort in Asia (1st runner-up) - Spring City Golf & Lake Resort, Kunming – Best Golf Course in Indonesia - Ria Bintan (Ocean Course)

Recent Awards for Product Excellence

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Market Outlook

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Singapore Residential Market

• Private residential prices up 31.2% in

2007 (URA)

• Record take-up of 14,826 new units in

2007, up 33% from 2006 (URA)

• High-end prices depend on outcome of

US sub-prime problems

• Middle to mass market prices should

move up gradually

Prices up 31% in 2007 Prices up 31% in 2007

Private Residential Take-up and Price Index

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Units

80 100 120 140 160 180

Index Secondary Take-up Primary Take-up Price Index

Source : URA and CBRE

Looking Ahead Looking Ahead

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Singapore Office Market

• Grade A average rental of $17.15 psf at

end-07, up 96.5% from $8.73 psf at end-06

(CBRE)

• Grade A occupancy of 99.8% at end-07

(CBRE)

• Take-up of 2.07m sf in 2007
• Strong demand from financial institutions,

services and oil & gas companies

Rentals and Occupancy Continue to Rise Rentals and Occupancy Continue to Rise

Office Rental and Occupancy

80 84 88 92 96 100 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 2 4 6 8 10 12 14 16 18 20 Islandwide Occupancy Grade A Occupancy Prime Rental Grade A Rental Source : URA and CBRE

%

S$psf/mth

Looking Ahead Looking Ahead

• With limited supply of 1.7m sf p.a. over

next few years and good demand, rentals should continue to trend upwards

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Home Ownership Aspirati tions

Promising residential markets in Asia and Middle East Promising residential markets in Asia and Middle East

Overseas Residential Market

Economic Growth Rising Affluence Growing Middle Class and Expatriates Favourable Demographics Urbanisation Trends

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Going Forward

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Going Forward

SINGAPORE

Selectively acquire commercial and residential sites

FUND MGT

Grow funds under management through Alpha and K-REIT Asia

OVERSEAS

Continue to pursue residential and township developments

Recycle capital into new projects with higher returns Unlock value from commercial assets in Singapore and overseas

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Singapore

Redefining the Skyline and Waterfront Living

Marina Bay Suites Marina Bay Residences Ocean Financial Centre One Raffles Quay Marina Bay Financial Centre

Marina Bay Suites Marina Bay Suites

• Stunning 65-storey tower
• 221 bay-view luxury

apartments

• Unit sizes : 1,500 - 2,500 sf
• First residential showcase in Asia
• f world celebrated master

architect Daniel Libeskind

• Launch more units at Reflections

Reflections at Keppel Bay Reflections at Keppel Bay

Reflections at Keppel Bay Marina at Keppel Bay

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Project Location Units to Launch

Reflections at Keppel Bay (30% stake) * Keppel Bay 400 Park Infinia at Wee Nam * Wee Nam Rd 52 Marina Bay Suites (33.3% stake) Marina Bay 221 The Crest @ Cairnhill Cairnhill Circle 15 The Tresor * Duchess Rd 34 Madison Residences Bukit Timah Rd 56

* Planned balance units

Singapore

Residential Launches 2008

The Crest @ Cairnhill The Tresor Madison Residences

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* Balance units ^ New launches

Project Launch Schedule Units to Launch 2008 2009 2010

China 8 Park Avenue, Shanghai * 138 197 67 Villa Riviera, Shanghai * 94

• The Botanica, Chengdu *

1360 1000 1000 The Arcadia, Tianjin ^ 138

• Central Park City, Wuxi *

862 801 829 Mixed Development, Jiangyin ^ 458 760

• Residential Township, Shenyang ^
• 1146

572 Residential Devt., Nanhui, Shanghai ^

• 608

699

The Arcadia, Tianjin Mixed Development, Jiangyin Central Park City, Wuxi

Overseas

Residential Launches

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Project Launch Schedule Units to Launch 2008 2009 2010

Vietnam Saigon Sports City (Ph 1), HCMC ^

• 205

300 The Estella, HCMC ^ 900 450 150 Waterfront condo, Binh Thanh District, HCMC ^ 350 199

• Waterfront condo, District 7, HCMC ^

550 275 475 Waterfront township (Ph 1), Dong Nai Province ^

• 300

Prime condo, District 2, HCMC ^

• 410

410 Villa devt., District 9, HCMC ^

• 100

104 Prime condo, District 9, HCMC ^

• 300

350 Luxury villa devt., District 9, HCMC ^

• 100

39 Thailand Villa Arcadia at Srinakarin, Bangkok * 50 50 50 Villa Arcadia at Watcharapol, Bangkok ^ 40 40 40 India Elita Promenade, Bangalore * 388

• Elita Horizon, Bangalore ^

650 492

• Elita Garden Vista, Kolkata *

684 475

• Indonesia

Jakarta Garden City, Jakarta ^ 994 682 787 Middle East Seafront condo devt., Jeddah, Saudi Arabia ^ 180 300 300 Philippines Palmdale Heights (Ph 2), Pasig City ^ 316 474 474 SM-KL residential devt., Manila ^

• 430
• * Balance units

^ New launches

Overseas

Residential Launches

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Launching about 8,200 units in 2008 Launching about 8,200 units in 2008

Seafront Apartments (1,000 units) Jeddah, Saudi Arabia Seafront Apartments (1,000 units) Jeddah, Saudi Arabia The Arcadia, (168 units) Tianjin, China The Arcadia, (168 units) Tianjin, China The Estella (1,500 units) HCMC, Vietnam The Estella (1,500 units) HCMC, Vietnam Elita Horizon (1,142 units) Bangalore, India Elita Horizon (1,142 units) Bangalore, India

Overseas

Residential Launches

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Thank You

36

This release may contain statements which are subject to risks and uncertainties that could cause actual results to differ materially from such

• statements. You are cautioned not to place undue reliance on such

statements, which are based in the current views of Management on future developments and events.