Investor Meetings February 2006 1 Highlights Introduction - - PowerPoint PPT Presentation

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Investor Meetings

February 2006

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Highlights

• Introduction
• Highlights
• Operations Review
• Market Outlook
• Going Forward

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Introduction

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Introduction

• One of the largest listed property companies in

Singapore by total assets ($5.5 bil @ 31 Dec 2005)

• Established

developer

• f

quality housing and investment­grade offices

• Diversified in Asia with focus in Singapore, China,

India, Vietnam, Indonesia and Thailand

• Current focus on property development for sale in

growth cities in Asia and property fund management

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• Gain foothold in new countries, cities and segments

Secured residential site in Bangalore Secured villa site in Tianjin and township site in Wuxi

• Developing residential townships in the region

Over 20,000 units in the pipeline :

• Chengdu, China
• Ho Chi Minh City, Vietnam
• Jakarta, Indonesia
• Wuxi, China

Expansion Drive

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Highlights of FY05

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Snapshot

Financial

• PATMI

17.3% to $155.7m

• ROE

from 8.6% to 9.5%

• Overseas earnings

from 43% to 59% of PATMI Operations

• Awarded BFC site at New Downtown
• One Raffles Quay 70% pre­committed
• Homes sold : 2,700 overseas

(including Ph1 ­ 970 units of township in China)

600 in Singapore

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$m FY2005 FY2004 % Chg

Turnover 586.4 476.2 23.1 EBITDA 163.9 124.5 31.6 Operating Profit 146.6 111.1 32.0 Pre­tax Profit 183.4 139.9 31.1 PATMI before EI 154.5 132.7 16.4 EI 1.2 * ­ nm PATMI after EI 155.7 132.7 17.3 Overseas Earnings (% of PATMI) 59.0 43.3 58.6 EPS (¢) 21.8 18.7 16.6 NTA/Share ($) 2.35 2.26 4.0 Debt/Equity Ratio 1.14 0.96 18.8 Annualised ROE (%) 9.5 8.6 10.5

* Being the Group’s share of $37.8m gain from Bugis Junction transactions less $36.6m provision for diminution in value of the Group’s investment in associated companies ($14.9m) and hotels in Myanmar ($21.7m)

Financial Performance

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Recognition for Corporate Transparency

• Business Times ­ Corporate Transparency Index 2005

–

Only property developer in Top 20 list

• SIAS Investors’ Choice Awards 2005

–

Runner­up for Most Transparent Company under Properties category

–

Merit Award for Singapore Corporate Governance Award

• Storebrand’s “Best In Class” Status

–

For environmental and social performance reporting

Recent Awards

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Recent Awards

Recognition for Product Excellence

The Waterfront, Chengdu

­ Most Popular Residential Development with Foreigners by China City Property Exposition

8 Park Avenue, Shanghai

­ Top 10 Foreign Developers by Shanghai Real Estate Trade Association

The Botanica, Chengdu

­ Model Residential Development for International Community by Chengdu Real Estate Brand Promotion Centre

Tianjin Merryfield

­ Company with the Most Potential Property Development Co. by Jinnan District Government

Saigon Centre, HCMC

­ Gold Medal Vietnam Quality Award by Ministry of Science, Technology and Environment

Royal Park, Hanoi

­ Golden Dragon Prize from Vietnam Ministry of Planning and Investment

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Operations Review

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Singapore Residential

• About 600 units sold
• Good sales at new launches:

Park Infinia at Wee Nam : 192 (96%) of 200 launched

units sold

The Belvedere : 116 (97%) of 120 launched units sold

• Sold two Cluny Hill bungalow plots

Operations Review

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• Blue chip tenants include :

ABN AMRO Deutsche Bank UBS Ernst & Young Soc Gen Private Banking Barclays Capital

• 90% pre­commitment

targeted by TOP (2H2006)

Singapore Office

• One Raffles Quay : 70% pre­committed

Operations Review

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Singapore Office

• Awarded Business & Financial Centre

(BFC) site (Total GFA : 438,000 sm)

• Embarking on Ph 1 (GFA : 244,000 sm)

> 70% for office Rest or 64,000 sm mainly for

residential

Marketing Ph 1 residential end­2006 Ready by 2010

• 8 years option for the rest

Bayfront MRT Station Landmark MRT Station Integrated Resort & Casino One Marina Boulevard One Raffles Quay The Sail @ Marina Bay

Operations Review

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Singapore

• Set up K­REIT Asia

Initial portfolio of 4 prime office buildings

Value

: S$630m

Total NLA

: 73,300 sm

Avg occupancy

: 95%

Distribution in specie : One unit for every five KLL shares Retention by KLL

: 40%

Listed by

: End­1Q06

Prudential Tower (10 floors) Keppel Towers / GE Tower Bugis Junction Towers

Operations Review

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Overseas

• About 2,700 units sold, mostly in China (2,400 units) and

India (328 units)

• Gained control of Dragon Land with current 67% stake

Additional platform for middle­income housing in China

Operations Review

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Fund Management

• Strong interest in Asia from investors
• Assets Under Management (AUM) about US$1.4 bil when two

funds are fully invested

Asia No. 1 Property Fund (US$243m equity)

85% of fund invested in Hong Kong, Singapore, Malaysia, South Korea and Japan

Alpha Core Plus Real Estate Fund (US$165m equity in 1st

closing)

44% of fund invested in Japan and Singapore Second closing in early 2006 meeting with good response

Operations Review

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Market Outlook

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• Strong market recovery in 2005

Almost 9,000 new units sold, up 74% from 2003 Price index up 3.9%, highest since 1999 Good demand and price increase for higher­end properties with unique qualities

• Sales to improve with economic growth

Singapore Residential Market

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Residential Demand and Prices

• n the Uptrend

181.4 * Data includes completed new units sold from Year 2000 onwards

URA Private Residential Demand and Price Index

5,785 8,955 9,565 5,520 6,096 8,171 5,406 7,189 9,485 5,156 173.1 151.6 100 134.2 132.8 117.2 115.1 112.8 113.8 118.2

2,000 4,000 6,000 8,000 10,000 12,000 1996 1997 1998 1999 2000* 2001 2002 2003 2004 2005

Units

80 100 120 140 160 180

Index Total Primary Demand Price Index

Source : URA

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• Highest take­up (almost 2 mil sf) in 5 years

Grade A office occupancy : 92.5% (Source : CBRE) Avg Grade A office rentals : $5.70 psf, up 23.3% (Source : CBRE)

• Continued demand for prime office space

Singapore Office Market

• Limited new supply of

< 1 mil sf p.a. for next few years

Future Supply of Office Space

2.00 0.59 1.65 0.7 1.4 2.1 2006 2007 2008 2009 2010 mil sf

10­15 yr average annual take­up Pre­committed space at ORQ

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Further Upside for Office Rentals and Occupancy

78 80 82 84 86 88 90 92 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1 2 3 4 5 6 7 8 Islandwide Occupancy Prime Rentals % S$psf/mth 87.2%

Source : URA, CBRE

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• Sustainable genuine demand for quality housing and

townships in Asia

• Housing demand underpinned by economic growth,

urbanisation, favourable demographics trends and positive government policies

Market Outlook ­ Overseas

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Going Forward

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• Launch residential units including

waterfront projects

Keppel Bay Phase 2 (designed by Daniel Libeskind) BFC Phase 1 residential homes

Going Forward ­ Singapore

• Develop and market BFC to capitalise on transformation of

Marina Bay

• List K­REIT Asia in 1Q06
• Submit competitive bid for IRs with Harrah’s

Keppel Bay Phase 2 Caribbean at Keppel Bay

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• Jointly in bid with Harrah’s for both IR sites at Marina Bay

and Sentosa

Forged alliances with some of the finest industry players :

MICE specialists SMG, CEMS and Suntec Singapore Live entertainment company AEG Live High­end retail and shopping mall developers Gordon

Group and Taubman Asia

Cultural Institution Centre Pompidou

• Renowned architect Daniel Libeskind to design Marina Bay IR

Going Forward ­ Integrated Resort

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Land price :

$1.2 bil

Site area

: 20.6 ha

GFA

: 270,000 ­ 570,000 sm

Going Forward ­ Integrated Resort

Source : URA

BFC Marina Bay IR ORQ

The Esplanade

“Necklace of attractions" in the Marina Bay ­ the IR, the Business Financial Centre and The Esplanade.

Marina Bay IR

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Units to Project Location Launch Devonshire Rd (60% stake) Devonshire Rd 100 BFC (Ph1) Residential (33.3% stake) Marina Blvd/Central Blvd 200 Keppel Bay Phase 2 (30% stake) Keppel Bay Drive 200 Avenue Park (52% stake) Sixth Avenue 100 Caribbean at Keppel Bay * Keppel Bay Drive 126

#

Park Infinia at Wee Nam * Wee Nam Rd 294 Urbana * River Valley Rd 35 The Belvedere * Meyer Rd 51

* Existing launches

Possible Residential Launches

­ Singapore 2006

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• Launch new residential projects including :

Villas in Shanghai and Tianjin, China Townships in Chengdu, China and Jakarta, Indonesia

• Keep up expansion drive in promising markets in Asia
• Continue

to pursue residential and township developments

Going Forward ­ Overseas

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Units to Launch Project 2006 2007 2008

China 8 Park Avenue, Shanghai * 499 ­ ­ Villa Riviera, Shanghai ^ 168 ­ ­ Park Avenue Central, Shanghai ^ ­ ­ 708 The Seasons, Beijing * 742 ­ ­ The Waterfront, Chengdu * 305 ­ ­ The Botanica (Phase 2), Chengdu ^ 1,479 ­ ­ The Botanica (Phase 3), Chengdu ^ ­ 950 ­ The Botanica (Phase 4), Chengdu ^ ­ ­ 1,000 Tianjin Villas, Tianjin ^ 40 120 ­ Wuxi Township, Wuxi (Phase 1) ^ ­ 800 800

* Balance units

Overseas Residential Projects

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Units to Launch Project 2006 2007 2008

Vietnam Villa Riviera, Ho Chi Minh City # * 85 ­ ­ Saigon Sports City (Phase 1), HCMC ^ ­ 214 284 Thailand Villa Arcadia at Srinakarin, Bangkok * 104 215 ­ Villa Arcadia at Watcharapol, Bangkok ^ 100 170 ­ India Elita Promenade in JP Nagar , Bangalore * 519 550 170 Condominium in Kanakapura, Bangalore ^ 200 500 364 Indonesia Cakung Township (Phase 1), Jakarta ^ 300 856 ­

* Balance units

Overseas Residential Projects

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Thank You

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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.

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Additional Info

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2003 2004 2005 PATMI before EI ($m) 126.4 132.7 154.5 PATMI after EI ($m) 100.6 132.7 155.7 % of Overseas PATMI b/f EI 31.6 43.3 59.0 NTA/Share ($) 2.09 2.26 2.35 Debt/Equity Ratio 0.95 0.96 1.14 ROE (%) 6.8 8.6 9.5 Dividend per share (cts) 4 5 5*

* After tax

Key Financial Indicators

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Geographical FY2005 FY2004 % Location $m % $m % Chg Comments

Singapore 63.3 41.0 75.2 56.7 (15.8)

• Lower profit from sale of two Cluny Hill

bungalow plots in 2005 compared with four in 2004 Other Countries 91.2 59.0 57.5 43.3 58.6

• Higher
• verseas

contributions due mainly to profit from trading projects in China PATMI before EI 154.5 100.0 132.7 100.0 16.4

• Better

contributions from trading projects and investment properties EI 1.2 ­ nm

• Gain of $37.8m from Bugis Junction

transactions less $36.6m provision for diminution in value of investment in associated companies and hotels in Myanmar PATMI after EI 155.7 132.7 17.3

Net Profit ­ by Geographical Location

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Business Segment FY2005 $m FY2004 $m % Chg Comments

Property Trading 111.9 97.2 15.1

• Maiden contributions from Park Infinia at Wee Nam

in Singapore and higher contributions from China’s residential projects Investment 39.7 32.4 22.5

• Higher interest income and write­back of deferred tax

provision for properties in Singapore Hotels / Resorts 0.2 (6.2) nm

• Improvement mainly from recovery of loan provided

to Bintan Lagoon Resort Others 2.7 9.3 (71.0)

• Lower group tax relief compared with 2004

PATMI before EI 154.5 132.7 16.4

• Better contributions from trading projects and

investment properties EI 1.2 ­ nm

• Gain of $37.8m from Bugis Junction transactions

less $36.6m provision for diminution in value of investment in associated companies and hotels in Myanmar PATMI after EI 155.7 132.7 17.3

Net Profit ­ by Business Segment

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% of % of Profit Recognised Project Sales Completion in FY05 ($m) Singapore Cluny Hill ­ ­ 12.7 Park Infinia at Wee Nam 40.9 20.0 5.3 Overseas 8 Park Avenue, Shanghai 38.8 35.3 39.2 The Seasons, Beijing 53.2 39.2 8.2 The Waterfront, Chengdu 67.3 65.9 11.0

Notes on Profit Recognition

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• Caribbean at Keppel Bay

: 84% of 801* units sold Latest achieved price : $780 psf

• Park Infinia at Wee Nam

: 96% of 200 units launched sold Latest achieved price : $930 psf

• The Belvedere

: 97% of 120 units launched sold Latest achieved price : $790 psf

• Urbana

: 72% of 126 units sold Latest achieved price : $950 psf

• The Linc

: 61% of 51 units sold Latest achieved price : $800 psf

• Freesia Woods

: 69% of 129 units sold Latest achieved price : $680 psf

Project Sales Status ­ Singapore

* Excludes 168 units set aside as corporate residences

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• China

8 Park Avenue (Shanghai) : 98% of 456 units launched sold Latest achieved price : RMB 22,000 psm The Seasons (Beijing) : 89% of 1,250 units launched sold Latest achieved price : RMB 8,600 psm The Waterfront (Chengdu) : 82% of 1,023 units launched sold Latest achieved price : RMB 6,700 psm The Botanica Ph1 (Chengdu) : All 970 units fully sold Latest achieved price : RMB 3,900 psm

• India

Elita Promenade (Bangalore) : 80% of 410 units launched sold Latest achieved price : Rs 2,600 psf

• Vietnam

Villa Riviera (Ho Chi Minh City) : 64% of 25 units launched sold Latest achieved price : US$420,000 per unit

• Thailand

Villa Arcadia at Srinakarin, Bangkok : 96% of 50 units launched sold Latest achieved price : Baht 7 ­ 10 mil per unit

Project Sales Status ­ Overseas

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Singapore Office Supply (2005­2010)

Source : URA, CBRE and KLL

Expected Completion Proposed Office Projects NFA (sf) 2005 No new supply ­ 2006 3 Church Street 372,865 Parakou Building 63,723 One Raffles Quay 1,310,000 VisionCrest 144,295 Sinsov Building (A&A) 29,126 SIF Redevelopment 84,390 Sub­ total 2,004,399 2007 No new supply ­ 2008 Central 411,167 Selegie Rd (Hotel/Office/Shopping Ctr) 182,988 Sub­ total 594,155 2009 No new supply ­ Total (2005­2009) 2,598,554 2010 BFC (Phase 1) 1,646,876

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Office Occupancy Costs

• Ranked 77th among 117 cities in 46 countries in cost

competitiveness study

City US$ City US$ London (West End) 18,740 Sydney 7,930 Washington D.C. 15,370 New York City (Downtown) 7,560 Hong Kong 15,000 Moscow 7,550 Paris 13,980 Dubai 7,180 Frankfurt 12,830 New Delhi 6,650 Tokyo (Central 5 Wards) 11,870 Perth 5,440 Munich 10,820 Singapore 4,770 Edinburgh 9,000 Shanghai (Puxi) 4,710 Seoul 9,870 Beijing 4,680 Mumbai 8,490 Taipei 4,600

Source: DTZ (Global Office Occupancy Costs Survery ­ Jan 2006)

Global Office Occupancy Costs (in US$ per workstation per annum)

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• Singapore occupancy cost ranked 63rd worldwide, attractive

compared to other Asian cities

Office Occupancy Costs

Ranking City US$/sf/annum Ranking City US$/sf/annum 1 London (West End), England 178.67 27 New York ­ Midtown Manhattan 53.69 2 Tokyo (Inner Central), Japan 131.10 31 Taipei, Taiwan 48.16 3 Tokyo (Outer Central), Japan 123.39 35 New Delhi, India 43.06 4 London (City), England 119.11 37 Washington DC (CBD) 41.84 5 Paris, France 89.58 39 Ho Chi Minh City, Vietnam 41.69 7 Dublin, Ireland 81.18 41 Amsterdam, Netherlands 40.72 8 Hong Kong 75.85 43 Shanghai (Pudong), China 40.49 9 Edinburgh, Scotland 75.80 44 Sydney, Australia 40.45 15 Frankfurt, Germany 63.57 45 Boston (CBD) 39.65 19 Seoul, South Korea 61.74 47 Shanghai (Puxi), China 38.83 20 Milan, Italy 60.99 50 Ottawa, Canada 37.62 23 Mumbai (Bombay), India 56.43

63 Singapore 33.71(S$4.70psf/mth)

Source: CBRE (Aug 2005) USD:SGD=1.67

Global 50 Index (by occupation cost in US$ psf per annum)

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• About 1.6 mil sf of attributable GFA

Site Location Tenure Attributable Attributable Total Land Area GFA Units (sf) (sf)

The Tresor ^ Duchess Road 999­yr 80,504 112,689 62 Devonshire Road (60%) ^^ * Devonshire Road Freehold 47,793 133,820 157 Avenue Park (52%)* Sixth Avenue Freehold 89,866 125,813 193 The Crest @ Cairnhill Cairnhill Road Freehold 11,183 31,310 15 Naga Court Bukit Timah Road Freehold 49,168 110,628 74 Keppel Bay Plots 1 (30%)* Keppel Bay Drive 99­yr 269,938 624,521 1,100 Keppel Bay Plot 3 & 6 (30%)* Keppel Bay Drive 99­yr 201,413 220,811 408 Keppel Bay Plot 4 (11.7%)* Keppel Bay Drive 99­yr 36,207 40,300 234 BFC (Phase 1) Residential (33.3%)* Marina Blvd/Central Blvd 99­yr n.a. 197,338 421 Total 786,072 1,597,230 2,664

* KLL’s stake

^ Includes 28 units sold ^^ Based on amalgamated site

Singapore Residential Landbank

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Rentals in Asia

• Rising rentals in both residential and office markets

Source : JLL

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• About 2.1 mil sm of total GFA

Site KLL's Stake Total Land Area Total GFA Total (%) (sm) (sm) Units

8 Park Avenue * 99% 33,432 133,393 946 Park Avenue Central 99% 28,488 99,708 708 Villa Riviera 99% 153,726 53,796 168 Tianjin Villas 100% 133,400 56,000 160 Wuxi Township 50% 352,534 671,053

#

5,000 The Botanica ^ 44% 419,775 1,049,438

#

8,166 Total 1,121,355 2,063,388 15,148

* Includes 5 blocks launched

^ Includes Ph 1 launched # Includes commercial space

China Residential Landbank

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• About 1.7 mil sm of total GFA overseas (excluding China)

* Includes units sold (312 units in Elita Promenade, 48 units in Villa Arcadia at Srinakarin and 16 units in Villa Riviera as of 25 Jan)

# Includes commercial space

Country Site KLL's Stake Total Land Area Total GFA Total (%) (sm) (sm) Units

India Elita Promenade * 51% 96,800 193,308 1,573 Condominium in Kanakapura 51% 68,800 148,245 1,064 Sub­total 165,600 341,553 2,637 Indonesia Cakung Township 51% 2,700,000 700,000 7,000 Sub­total 2,700,000 700,000 7,000 Thailand Villa Arcadia at Srinakarin * 45.45% 159,746 84,440 367 Villa Arcadia at Watcharapol 66.72% 124,912 68,314 270 Sub­total 284,658 152,754 637 Vietnam Villa Riviera * 90% 59,934 32,450 101 Saigon Sports City 90% 740,000 441,000

#

3,000 Sub­total 799,934 473,450 3,101 Total 3,950,192 1,667,757 13,375

Other Overseas Residential Landbank