1h2007 results - keppel corporation · 2q07, up from $8.73 psfat end-06 –grade a occupancy stood...
TRANSCRIPT
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1H2007 Results24 July 2007
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Highlights
� Financial Performance
� Operations Review
� Market Outlook
� Going Forward
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3
Financial Performance
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Financial Performance – 1H07
55.780.6125.5PATMI
37.1121.5166.6Pre-tax Profit
0.9113.6114.6Operating Profit
0.7118.9119.7EBITDA
86.8350.5654.6Turnover
% Chg1H061H07$m
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Financial Performance – 2Q07
42.2
10.0
(20.6)
(19.9)
55.1
% Chg
44.363.0PATMI
Higher due largely to contributions from
Reflections at Keppel Bay and higher
profits from other current trading projects75.382.8Pre-tax Profit
Comments2Q062Q07$m
75.159.6Operating Profit
Lower due to one-off profit from sale of a
property subsidiary in Tianjin by Evergro
Properties in 2Q06
77.862.3EBITDA
Higher due to strong performance of
Singapore and overseas trading projects231.6359.2Turnover
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Key Ratios
51.010.215.4Annualised ROE (%)
9.21.091.19Net Debt / Equity Ratio
8.72.062.24NTA / Share ($)
55.411.217.4EPS (¢)
% Chg1H061H07$m
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Net Profit – By Business Segment
Higher due to maiden profits from Marina
Bay Residences, Reflections at Keppel Bay,
The Sixth Avenue Residences, and higher
contribution from The Seasons in China
72.264.8111.6Trading
Higher due largely to higher contributions
from associated companies48.614.221.1Investment
Lower losses due to improvement in hotels
and resorts businessnm(2.4)(0.8)Hotels / Resorts
Losses due to a revaluation loss for the
Group’s interest rate hedging instruments for
1H07 compared with a gain for 1H06nm4.0(6.4)Others
Comments% Chg
1H06
$m
1H07
$m
Business Segment
55.780.6125.5PATMI
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Net Profit – By Geographical Location
Comments% Chg
1H061H07
125.5
47.3
78.2
$m
100.0
37.7
62.3
%
Higher due to strong contributions
from Marina Bay Residences, The
Sixth Avenue Residences and
Reflections at Keppel Bay
178.334.928.1Singapore
Lower due to one-off profit from
sale of a property subsidiary in
Tianjin by Evergro Properties in
2Q06
(9.9)65.152.5Other Countries
55.7100.080.6PATMI
%$m
Geographical
Location
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Notes on Profit Recognition
5.65629Villa Riviera, Shanghai, China (168 units)
10.0 ^421Reflections at Keppel Bay (1,129 units)
11.4100100Urbana (126 units)
Overseas
The Seasons, Beijing, China (1,859 units)
15.98899Ph 1 (990 units)7991Ph 2 (869 units)
Singapore
29.8 ^7100Marina Bay Residences (428 units)
12.15883Park Infina at Wee Nam (486 units)
Profit Recognisedin 1H07 ($m)
% of Completion *
% of Sales *
Project
* Recognition as of 30 Jun 07
^ 20% of estimated profit has been recognised
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Operations Review
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Launched Reflections at Keppel Bay− 1,129 units
− 97% of 493 launched units sold
Good Sales in Park Infinia at Wee Nam− 486 units
− 89% sold
Info updated as of 24 Jul 07
Reflections at Keppel Bay
Singapore ResidentialRobust Singapore Sales
Sold about 600 units in 1H07
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The Linc
The Suites at Central
Urbana
The Suites at Central (157 units)
Freesia Woods (129 units)
The Linc(51 units)
The Elysia(40 units)
Freesia WoodsThe Elysia
Urbana (126 units)
Singapore ResidentialSold Out Five Projects
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� Exercised option for Marina Bay Financial Centre (MBFC) Ph 2− Land price : $907.7m or $435 psf ppr
− Office & Retail : 1.6m sf GFA
− Residential : About 250 units
� MBFC Ph 1 : About 40% pre-committed by Standard Chartered Bank and other financial institutions
MBFC Ph 1
MBFC Ph 2
Singapore CommercialMBFC Ph 2 to Ride on Strong Market
MBFC Total GFA : 438,000 sm
Ph 2
Residential
Ph 1 Office
& Retail
Ph 1
Residential
Ph 2 Office
& Retail
Ph 1 : 244,000 sm
Office & Retail : 189,000 sm
Residential : 55,000 sm
Ph 2 : 194,000 sm
Office & Retail : 150,000 sm
Residential : 44,000 sm
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• Distributable income of $9.5m in 1H07, up 36.8% from 1H06
• Annualised Distribution Per Unit of 7.88 cents for 1H07
• Total return of 183.2% since listing
• 99.6% committed occupancy as at 30 Jun 07, higher than Core CBD occupancy of 97.3%
Bugis Junction Towers
Prudential Tower
Singapore CommercialK-REIT Asia Continues to Outperform
Keppel Towers GE Tower
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Sold about 1,000 units mainly in China and India
The WaterfrontChengdu
The BotanicaPh 2 Chengdu
China
India
OverseasStrong Residential Sales
Villa Riviera Shanghai
- 168 units
- 89% of 64 launched units sold
- 1,143 units - 1,476 units
- 99% sold
The Seasons Beijing
- 1,859 units
- 98% sold
Elita PromenadeBangalore
- 1,573 units
- 81% of 1,300 launched units sold
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The Estella
Condos – Ca Cam RiverCondos – Saigon River
Dong Naitownship
- An Phu Ward, District 2, HCMC
- 1,600 prime condo units
- Launch : 2008
- Dong Nai Province, near HCMC
- 14,000 waterfront township units
- Ph 1 launch : 2009
- Binh Thanh District, HCMC
- About 500 luxury condo units
- Launch : 2008
- District 7, HCMC
- 2,400 luxury condo units
- Launch : 2008
Secured four new residential sites within four months
OverseasCapitalising on Rising Vietnam Market
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Gegu Precinct (MOU)
Xin Li Zhen township (MOU)
Palmdale Heights
- 6.26 sq km township precinct
- Ph 1 : 8,300 units
SM-KL Residential Devt.
- 44.1 sq km waterfront precinct
- Ph 1 : 15,000 units
- Pasig City, Metro Manila
- Ph 2 : 1,264 apartments
- Launch : 2008
- Ortigas CBD, Manila
- 430 apartments
- Launch : 2008
Pursuing township precincts in Tianjin, China
Capitalising on stronger Philippines residential market
OverseasExpanding in Existing Markets
18 * When fully leveraged and invested
Alpha Core Plus Real Estate Fund• Equity of US$437m (S$720m)• 85% invested in 21 assets in 4 countries
Asia No. 1 Property Fund• Equity of US$243m (S$400m)• 100% invested in 10 assets in 4 countries
Islamic Shariah fund
• Current portfolio of US$119m (S$180m)
K-REIT Asia• Four prime office buildings in Singapore
• Portfolio value of S$0.677 bn (end-06)
Total Assets Under Management Close to S$5 bn *
US$0.6
(S$1.0) bn
US$1.4
(S$2.3) bn
US$2.9
(S$4.7) bn
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2004 2005 2006 1H07
Total Assets Under Management *
Alpha K-REIT Asia
US$2.3
(S$3.7) bn
Set Up AIB Alpha Japan Fund in 1H07
• Closed with equity of US$172m (S$258m)
Fund Management Grows
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� Business Times Corporate Transparency Index
– Ranked 5th out of 665 companies for FY 2006 results
� FinanceAsia’s Best Managed Companies Poll 2007
– Among Top Five in Singapore for :
� Best Managed Company (5th)
�Most Committed to Corporate Governance (4th)
� Best Investor Relations (4th)
Recent Corporate Awards
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� FIABCI Prix d’Excellence 2006
– Caribbean at Keppel Bay
�Winner in residential category
– Harbourfront Office Towers
� 2nd Runner-up in office / industrial category
� Green Mark Awards
– Gold Award for Marina Bay Residences (2007)
– Gold Award for The Tresor (2006)
� 2008 Graphics International Design Annual
– Gold Award for One Raffles Quay
Recent Awards for Product Excellence
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Market Outlook
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• Price index up 13.1% in 1H07 to 147.3
• Estimated new take-up (CBRE) :
– Over 9,000 units in 1H07
– 14,000 units for 2007
• Supply expected to be steady
• Prices and rentals expected to continue trending upwards in 2007
Singapore Residential Market
Private Residential Demand,
Price and Rental Index
0
5,000
10,000
15,000
20,000
25,000
30,000
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
1H07
Units
80
100
120
140
160
180
Index
Secondary Take-up
Primary Take-up
Price Index
Source : URA, REALIS, CBRE estimate for 2Q07 take-up
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Singapore Office Market
• Robust office market
– Grade A rental of $12.40 psf in 2Q07, up from $8.73 psf at end-06
– Grade A occupancy stood at 99.5% in 2Q07
• Broad based demand
– Apart from financial firms, shipping, energy, oil-trading, legal and I.T. companies are taking up space in Core CBD area
• Limited short term supply of about 0.75m sf p.a. from 2007 to 2010
• More medium term supply
– Government Land Sales Programme for 2H07 to provide 1.5m sf supply (CBRE)
Office SupplyPositive Market
Capital values and rents continue to increase steadily
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Home OwnershipAspirations
EconomicGrowth
FavourableDemographics
GrowingMiddle Class
UrbanisationTrends
Overseas Residential Market
Strong fundamentals continue to support home purchase in China, India, Vietnam and Indonesia
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Going Forward
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Going Forward
Singapore
• Selectively acquire commercial and residential sites
• Divest remaining investment buildings
Overseas
• Continue to pursue residential and township developments
Fund Management
• Grow funds under management
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SingaporeCapitalise on Waterfront Living
• Launch more luxury waterfront lifestyle homes
-First residential showcase in Asia of world celebrated master architect Daniel Libeskind
-Launch more units in Reflections
-Ph 1 (428 units) sold out
-Ph 2 : About 250 units
Reflections at Keppel Bay (1,129 units) Marina Bay Residences Ph 1 (428 units)
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250Marina BayMarina Bay Residences Ph 2 (33.3% stake)
56Bukit Timah RdNaga Court
34Duchess RdThe Tresor *
15Cairnhill CircleThe Crest @ Cairnhill
52Wee Nam RdPark Infinia at Wee Nam *
151Keppel BayReflections at Keppel Bay (30% stake) *
Units to Launch
LocationProject
* Balance planned units
Info updated as of 24 Jul 07
Reflections at Keppel Bay
SingaporePossible Residential Launches 2H07 / 2008
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Launch more condo and villa projects in 2H07
OverseasBuilding on Reputation as Developer of Quality Home
China
India
The ArcadiaTianjin
- 168 units
Elita HorizonBangalore
- 1,160 units
Elita Garden VistaKolkata
- 1,376 units
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China Vietnam Indonesia
OverseasIntensify Township Expansion
The Botanica, Chengdu
- 5,800 units
Central Park City, Wuxi
- 4,700 units
Dong Nai township
- 14,000 units
Saigon Sports City, HCMC
- 3,000 units
Jakarta Garden City
- 7,000 units
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1,2441,166524The Botanica (future phases), Chengdu ^
--15The Botanica (Ph 2), Chengdu *
--39The Seasons, Beijing *
354--Park Avenue Central, Shanghai ^
-5160Villa Riviera, Shanghai *
67260968 Park Avenue, Shanghai *
Units to LaunchProject Launch Schedule
600600-Jiangyin Mixed Development, Jiangyin ^
801720728Central Park City, Wuxi ^
-8682The Arcadia, Tianjin ^
China
200920082007
* Balance units
^ New launches
Info updated as of 24 Jul 07
OverseasResidential Launches
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Indonesia
376600400Elita Garden Vista, Kolkata ^140600420Elita Horizon, Bangalore ^--520Elita Promenade, Bangalore *
India
959578Villa Arcadia at Watcharapol, Bangkok ^6710096Villa Arcadia at Srinakarin, Bangkok *
Thailand
1,0001,000200Jakarta Garden City, Jakarta ^
300--Waterfront township (Ph 1), Dong Nai Province ^350350-Condominiums fronting Ca Cam River, HCMC ^ 200300-Condominiums fronting Saigon River, HCMC ^ 350350-The Estella, HCMC ^288288100Saigon Sports City (Ph 1), HCMC ^
Units to LaunchProject Launch Schedule
-430-SM-KL residential devt., Manila ^948316-Palmdale Heights (Ph 2), Pasig City ^
Phlippines
Vietnam
200920082007
* Balance units
^ New launches
Info updated as of 24 Jul 07
OverseasResidential Launches
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Thank You
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Additional Slides
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Singapore Residential Landbank
• About 1.3 mil sf of attributable GFA
* Including units and area sold
Attributable Attributable
Land Area GFA(%) (sf) (sf)
The Tresor * Duchess Rd 100% 999-yr 80,504 112,689 62
Reflections at Keppel Bay * Keppel Bay 30% 99-yr 269,930 624,521 1,129
The Crest @ Cairnhill Cairnhill Circle 100% Freehold 11,183 31,310 15
Naga Court Bukit Timah Rd 100% Freehold 49,168 110,807 56
Marina Bay Residences (Ph 2) Marina Bay 33.3% 99-yr 19,015 157,870 250
Keppel Bay Plot 3 Keppel Bay 30% 99-yr 125,366 152,999 307
Keppel Bay Plot 4 Keppel Bay 11.7% 99-yr 36,114 40,300 234
Keppel Bay Plot 6 Keppel Bay 30% 99-yr 141,429 67,813 101
Total 732,709 1,298,309 2,154
Site Location Tenure Total
Units
KLL's
Stake
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China Residential Landbank
• KLL’s China landbank : about 1.9 mil sm of saleable area
* Excluding area and units sold^ Excluding commercial space
Site Location KLL's Total Total Remaining Remaining
Stake Land Area GFA Area For Sale Units (%) (sm) (sm) (sm) For Sale
8 Park Avenue Shanghai 99% 33,432 133,393 78,256 * 490 *
Park Avenue Central Shanghai 99% 28,488 99,708 99,708 708
Villa Riviera Shanghai 99% 153,726 53,796 31,698 * 111 *
The Arcadia Tianjin 100% 133,400 61,687 61,687 168
Central Park City Wuxi 49.7% 352,534 670,460 659,360^
4,700
The Botanica Chengdu 44.1% 417,139 1,035,542^
781,542^
5,800 *
Mixed development Jiangyin 70.6% 82,987 235,786^
235,786^
2,161
Total 1,201,706 2,290,372 1,948,037 14,138
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Country Site KLL's Total Land Total GFA Total
Stake Area (sm) (sm) Units
India Elita Promenade, Bangalore * 51% 96,618 193,237 1,573
Elita Horizon, Bangalore 51% 79,177 158,354 1,160
Elita Garden Vista, Kolkata 37.7% 99,998 199,497 1,376
Sub-total 275,793 551,088 4,109
Indonesia Jakarta Garden City, Jakarta 51% 2,700,000 1,050,000 7,000
Sub-total 2,700,000 1,050,000 7,000
Thailand Villa Arcadia at Srinakarin, Bangkok * 45.5% 159,706 84,440 367
Villa Arcadia at Watcharapol, Bangkok 66.7% 124,912 68,314 270
Sub-total 284,618 152,754 637
Vietnam Saigon Sports City, HCMC 90% 640,476 788,180 ^ 3,000
The Estella, HCMC 55% 47,906 275,371 ^ 1,600
Condominium fronting Saigon River, HCMC 60% 17,428 87,140 500
Condominium fronting Ca Cam River, HCMC 75% 85,118 408,500 ^ 2,400
Waterfront township (Ph 1), Dong Nai Province 45% 1,930,000 1,040,077 5,300Sub-total 2,720,928 2,599,268 12,800
PhilippinesPalmdale Heights (Ph 2), Pasig City 30.9% 15,976 62,751 1,264
SM-KL residential devt., Manila 24.2% 7,068 56,000 430
Sub-total 23,044 118,751 1,694
Total 6,004,383 4,471,861 26,240
Other Overseas Residential Landbank
• About 4.5 mil sm of total GFA overseas (excluding China)
* Including area and units sold
^ Including commercial space
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Rising Occupancy for KLL’s Buildings
KLL's Office Occupancy Rates
71%
90% 88%
98% *
0%
20%
40%
60%
80%
100%
1H04 1H05 1H06 1H07
Including Ocean Tow ers, Equity Plaza and Keppel Bay Tow er
* 1H07 figure also includes One Raff les Quay w hich received TOP in 2006
20
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Office Market on Uptrend
Office Rental and Occupancy
80
84
88
92
96
100
4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07
0
2
4
6
8
10
12
Islandwide Occupancy
Grade A Occupancy
Prime Rental
Grade A Rental
Source : URA and CBRE
% S$psf/mth
40
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.