capitaland investor day 2017 · 11/14/2017 · jason leow2 • drive economies of scale ......
TRANSCRIPT
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CapitaLand Investor Day 2017
Presentation By Mr. Lim Ming Yan, President & Group CEO
14 November 2017
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Contents
• Recap Of CapitaLand’s Transformation
• Adapting To The New Real Estate Landscape
• Conclusion
Contents
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ION Orchard, Singapore
Recap Of CapitaLand’s
Transformation
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502.5 581.8
653.0
834.8
123.5
170.6
30.5
0
200
400
600
800
1,000
1,200
FY2013 (restated) FY2014 FY2015 FY2016
Operating PATMI Non-operating PATMI
61%
70%
Strengthened Growth In Operating PATMI
Operating PATMI Increased Steadily For The Past 3 Years
Note:
1. Total operating PATMI inclusive of S$16.3 million operating PATMI from discontinued operation in FY 2014 (FY2013 restated: S$108.7 million)
2. Operating PATMI excluding fair value gain arising from change in use of development projects in China in FY2015 (S$170.6 million) and FY2016 (S$30.5 million)
1
Recap of CapitaLand’s Transformation
840.2
1,160.8
1,065.7
1,190.3
50% 61%
70%
60%1
Westgate
Tower Sale
(11%)
Fair Value Gain
From Change In
Use Of Properties
(16%)
Fair Value Gain
From Change In
Use Of A Property
(3%)2
2
S$ Million
2
1
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Underlying Quality Of Operating PATMI Remains Strong
After Excluding One-Off Fair Value Gain From Change In Use Of Property And
Gains From Sale of The Nassim,
YTD Sep 2017 Operating PATMI Grew At 8% Y-o-Y
2
Recap of CapitaLand’s Transformation
2
Fair Value Gain
From Change In
Use Of A Property
759.8
1,283.0
Gain From Sale Of
45 Units Of The
Nassim
+8%
545.7 588.0
30.5
160.9
0
200
400
600
800
1,000
1,200
YTD Sep 2016 YTD Sep 2017
Operating PATMI Non-operating PATMI
S$ Million
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Recurring Income Further Strengthened As More Properties Turn Operational
Stabilised Investment Properties Increased From 68% To 77%
Note:
1. Value of properties held by subsidiaries are reported based on 100%, value of properties held through associates/JV are reported based on CapitaLand’s effective share.
2. Non- stabilised assets comprised properties opened/completed in the last 3 years
3
Recap of CapitaLand’s Transformation
Properties Under Development
7%
Investment Properties (Not
Stabilised) 2
16%As At
30 Sep 2017
Investment Properties (Stabilised)
77%
Properties Under Development
15%
Investment Properties (Not
Stabilised) 2
17%
Investment Properties (Stabilised)
68%
As At 31 Dec
2014
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Suzhou Center MallRecap of CapitaLand’s Transformation
• CapitaLand’s largest mall opened on 11 Nov. 2017 with committed occupancy above 90%
• Attracted >400,000 footfall on the opening day
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Group’s Real Estate AUM Continues To Grow And New Funds Were Set Up
4
Recap of CapitaLand’s Transformation
21.3
20.2
19.7
16.7
15.3
0 10 20 30 40 50 60 70 80 90
Sep-17
2016
2015
2014
2013
Group Real Estate AUM (S$m)
Ye
ars
Funds AUM
16 Funds
16 Funds
16 Funds: Added Ascott-QIA Global Serviced Residence Fund
15 Funds: Added Raffles City China Investment Partners III
15 Funds: Added CapitaLand Vietnam Commercial Fund I
Group Real Estate AUM Number Of Private Equity Funds
64.6
70.6
76.8
78.6
85.0
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Leveraged On Technology Across Various Asset Classes5
Recap of CapitaLand’s Transformation
Inspiring new Live-Work-Play
paradigm
Toong Collective Works UrWork
lyf - by millennials, for
millennials
New trends
in Live,
Work &
Play
Enhancing
customer
stickiness
Leveraging
technolog
y to
enhance
existing
platforms
O2O
Convergence
To Bridge
Services To Our
Customers
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10 CapitaLand Presentation May 2013
Raffles City Beijing, China
Adapting To The New Real Estate Landscape
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The Investment Environment We Face Today
Adapting To The New Real Estate Landscape
Characteristics Of Today’s Market
- Uncertainties Abound
- Asset Prices Are High
- Prospective Returns Are Low
- Pro-Risk Behavior Is Commonplace
1
2
3
4
Signs Of A Boom Present Across Classes
Signs Of A
Boom/
Bubble
High Equity
Valuations
VIX ‘Index Of
Fear At An All-
Time Low
Low Yields On
Low- Rated
Credit
Instruments
Historic Highs For
PE & Tech
Fundraising
We Are In A Low-Return, High-Risk World;
Valuations And Markets Are Elevated
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Three Megatrends Affecting All Businesses
Adapting To The New Real Estate Landscape
Ageing Populations
New Millennial Customers
Demographics
Digital Platforms Scaling
Big Data Analytics
Technology Flow Of Funds
Funds Flowing To
Emerging Markets,
Especially APAC
How Is CapitaLand Responding?
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Strengthen Corporate Level Capabilities1
Adapting To The New Real Estate Landscape
Jason Leow2
• Drive economies of scale
• Provide better corporate
support to businesses
Group Chief Operating Officer
Note:
1. With effect on 1 January 2018
2. To concurrently be Deputy Chair of Retail
3. To be concurrently be Deputy Chair of Service Residence
1
Group Chief Investment Officer
Lee Chee Koon3
• Optimise capital allocation
across the Group
• Drive Group’s growth strategies
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Strengthen CapitaLand’s Operating Platforms
Adapting To The New Real Estate Landscape
Lynette Leong CEO, CapitaLand Commercial
Commercial
To Develop Strategies To Future-Proof Our Businesses
Wilson TanCEO1, CapitaLand Mall Asia
Retail Serviced Residences
Kevin GohCEO1, The Ascott Limited
Future Of Work
O&O PlatformGrow Global
Platform
Note:
1. Appointment to take effect from 1 January 2018
2
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Improve Quality Of CapitaLand’s Asset Portfolio
Adapting To The New Real Estate Landscape
Asset Owners In Respective Geographies
Now Have An Overall Perspective Of Each Portfolio’s Return
Ronald Tay
Singapore, Malaysia,
Indonesia
Lucas Loh
China
Gerald Yong
Rest Of
World/Deputy CIO
Vietnam
Chen Lian Pang
Note: Appointments to take effect from 1 January 2018
3
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Greater Emphasis On PE Fund Business4
• New CEO James Lim In Charge Of PE Fund Business
• Enhanced ROE From Capital Recycling And Acquiring Third
Party Assets
▪ Reduces balance sheet requirements while AUM scales up
▪ Recurring fee income and higher ROE
• On Track To Grow Additional AUM Up To S$10 billion By 2020
▪ Already raised 3 funds –
▪ US$600 Million Ascott-QIA JV (2015)
▪ US$1.5 Billion Raffles City China Investment Partners III (2016)
▪ US$300 Million CapitaLand Vietnam Commercial Fund 1 (2017)
Total ~S$6.5 billion AUM
A
C
B
Adapting To The New Real Estate Landscape
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17 CapitaLand Limited 1Q2014 Results
ION Orchard, Singapore
Conclusion
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Conclusion
• Barring unforeseen circumstances, CapitaLand is likely to achieve
>8% ROE in 2017
• We are well-positioned to deliver a sustainable ROE above our cost
of equity going forward
- More active portfolio recycling
- Growth of recurring fee income
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Thank You