wheelock and company wharf (holdings) · pdf filewheelock and company limited the wharf...

WheelockandCompanyLimitedTheWharf(Holdings)Limited
Established 1886
2010InterimResults30August2010

22010 Interim Results
1H2010(HK$M)
%Change
1H2010(HK$M)
%Change
Turnover 12,516 +38% 8,622 +0.1%
OperatingProfit 6,020 +31% 4,516 +7%
Financecosts (569) 2,745% (544) 5,045%
Taxation* (416) +61% (197) +81%
Netotherincome 537 +166% 522 +220%
ProfitbeforenetIPsurplus 2,826 +61% 4,204 +28%
IPrevaluationsurplus(netofTax&NCI) 3,143 +70% 5,684 +54%
Profitattributabletoshareholders 5,969 +66% 9,888 +42%
EPS $2.94 +66% $3.59 +42%
DPS 2.50 36.00
ResultsHighlights
* deferredtaxonIPrevaluationsurplusexcluded

WHEELOCK
2010InterimResultsHighlights
Focus on Development Projects in HK as Core Business sharpened after WPL privatization
Focus on Development Projects in HK Focus on Development Projects in HK as Core Business sharpened after as Core Business sharpened after WPL privatizationWPL privatization
2010 Interim Results 3

4
Highlights
WPLprivatizationenabledWharf(50.02%)tobeconsolidatedinoneblock
WPL,nowwhollyowned,willspearheadthegroupsdevelopmentprojectsinHKwith
thefullbackingoftheGroupscapitalbase,startingwithacurrentattributable
landbank of1.6Ms.f.
WPSLcontributedHK$3.4BturnoverandHK$1.2BOPoncompletionofArdmoreII
andOrchardView
Subjecttolegalcompliances,suitableconsiderationmaybegiventoconsolidating
underWharfthenonWharfChinaprojects
FundingforWPLprivatizationin2010andWharfsrightsissuein2008haveraisednet
Groupdebt(excl.nonwhollyownedsubsidiaries)fromHK$0.9Bin2008toHK$8.2B
Wheelock

16%
84%
Wheelock
69%
31%
AttributableBusinessAssetsasat30June2010
AttributableProfit* beforenetIPsurplusasat30June2010
AssetsandProfitSplit
HK$104.3B HK$2.6BWheelock(ExWharf)
Wharf
* oneoffdeemedprofitonHactl excluded

Wheelock
12%4%
84%
HongKong
China
Singapore
AttributableBusinessAssetsasat30June2010
AttributableProfitbeforenetIPsurplusasat30June2010
AssetsandProfitSplit(ExWharf)
10%
37%53%
6
HK$16.3B HK$799M

HongKong
1. MTRAustinStation
CloseproximitytoAirportExpressLineandfutureterminusforHighSpeedRailtoGuangzhou,andeasyaccessibilitytothefutureWestKowloonCulturalDistrict
Totalsitearea:295,000s.f.;GFA:1,282,000s.f.
Landpremium:HK$11.7B(AV:~HK$9,100psf GFA)
50/50JVwithNewWorldDevelopmentbears66.7%oflandcostand 100%ofconstructioncost
MTRCbears33.3%oflandcostandtakesashareofdevelopmentprofit
Masterlayoutplanunderway,scheduledcompletionin2014
PropertyDevelopment
7

8
4. SalesUpdate
TheBabington,MidLevels
87%of47luxuryapartmentssoldforHK$570M17%profitbookedin1H2010,83%pre2010
46BelchersStreet,WesternDistrict
Residentialdevelopmentof91,400s.f.GFA Propertytitlefullyacquired
211215CPrinceEdwardRdWest,HoManTin Residentialdevelopmentof91,700s.f.GFA
PropertyDevelopment
3. Otherdevelopmentprojects
HongKong
2. HeungYipRoad,Aberdeen
Commercialdevelopment:GFAof737,200s.f.(ofwhich224,900s.f.presold)
AV:HK$1,050psf
Completion:4Q2010;tobelaunchedin2011

Wheelock
Outlook
CommittedtospearheadHKdevelopmentprojects,
capitalizingonitsextensiveexperienceinlargescale
projects(e.g.Bellagio,Sorrentoetc.)

PropertyDevelopment
SalesUpdate
Project No.ofUnits
Sold/Presold(asat30.6.2010)
ASP(SGDpsf)
Completion
ArdmoreII (condominiumat1&2ArdmorePark) 118 100% ~2,300+ 6/2010
5/2010
2011
OrchardView (36storeyresidentialprojectinAnguillaPark) 30 20% 3,200+
ScottsSquare (Residential&retailprojectat6&8ScottsRd.) 338 77% ~4,000
AninternationalstandardluxuryresidentialdevelopmentintheprestigiousArdmorePark,nexttoArdmoreII
ArdmoreThree
Pilingworksscheduledtocommencein3Q2010
PropertyDevelopment
Singapore
10

China
Project ProjectNature AttributableGFA(s.m.)
AV(RMBpsm)
Completion
EvianTown Residential
Residential
NewAcquisition
Residential
Residential
~2,000 2014
EvianUptown
229,000
133,000
155,000
112,000
~5,600 2013
629,000
Shishan Town(1/2010)
~2,200 2015
FirstRingRd,Nanhai(7/2010)
~4,900 2014
Total:
AllFoshan projectsthrough50:50JVwithChinaMerchants
PropertyDevelopment
11

Project Launchedin1H2010
Soldupto12.8.2010
Salesproceeds(RMBM)
AveragePrice(RMBpsm)
EvianTown4highrisetowers
(360units)86%
3highrisetowers(340units)
12,200+
EvianUptown
580
20676% ~9,000
Note:Allunitslaunchedpriorto2010werefullysold
PropertyDevelopment
China
SalesUpdate
12

PropertyInvestment
Wheelock
Place
GFA:464,900s.f.;valuation:SGD795M
AcommercialdevelopmentatOrchardRoad
100%leased,averagerentals:SGD10psf (office);SGD14psf (retail)
Crawford
House
GFA:191,300s.f.;valuation:HK$3.2B
96%(office)&100%(retail)leasedatsatisfactoryrentalrates
H&M,theanchorretailtenant,performedsolidly
Wheelock
House
GFA:197,900s.f.;valuation:HK$2.9B
97%leasedatsatisfactoryrentalrates
HongKong
Singapore
13

WHARF
2010InterimResultsHighlights
Full Steam Ahead for Propertiesin Hong Kong and ChinaFull Steam Ahead for PropertiesFull Steam Ahead for Propertiesin Hong Kong and Chinain Hong Kong and China
14

1. Retailsalesgrowthwellexceededthemarketandallexpectations
2. Strongretailrentalmorethancompensatedfortheweakrentalfromoffices
18%
24%
34%
0%
10%
20%
30%
40%
HarbourCity TimesSquare HKRetailMarket
Outperformedmarketby16% Outperformed
marketby6%
HC&TS RevenueGrowth OperatingProfitGrowth
Retail +18% +21%
Office 7% 7%
Wharf
Highlights
15

Highlights
3. PropertysalesinChinamaintaineddespitecontrolmeasuresbutrecognitioninthe
perioddeclined
161,000s.m.sold/presoldin1H2010,forproceedsofoverRMB1.7B
Furthersalessince1H10metwithfavorableresponses
Salestargetfor2010wasreviseddownwardtoRMB67B
1H2010profitmainlyfromShanghaiXinHua RdandDalianTimesNo.1&8
Over70%ofthebudgetedturnoverfor2010hasbeenlockedin
Wharf
16

4. LogisticsandHotelreportedvibrantrecovery
Logistics:OP+30%
Hotels:OP+80%
5. CMEresultsdistortedbyamajorrevenueandcosttimingmismatch
iCABLEs revenue&costtimingmismatchonWorldCup2010
WharfT&Treportedsustainableearningandcashflow
6. Nonrecurrentitemsinflated financecostsandothernetincomebutdeflated
taxation
Wharf
Highlights
17

2010InterimResults
%ofGroupOperatingProfit%ofGroupTotalBusinessAssets
1%
18%
15%66%
HKPropertyInvestment(excl.Hotels)ChinaPropertiesLogisticsCME&Others
4%
60%26%
10%
*Chinaassets(Properties+Logistics):33%asat30.6.2010
Wharf
18

AnalysisofOperatingProfit
1H10(HK$M)
YoYGrowth
PropertyInvestment 3,258
561
(15)
811
Investment&Others 90 +260%
(189)
4,516
PropertyDevelopment
+9%
5%
112%
+30%
29%
(Note)
CME
Logistics
+7.2%
CorporateExpenses
TotalOperatingProfit
Note:Lowerpropertysalesduetofewerprojectscompletedduring1H2010vs.1H2009
Wharf
19

HC and TS accounts for an exceptional 8% share of HK
Retail Sales for 1H2010, beating the market by over 16%
points and 6% points respectively
Shanghai Wheelock Square, the Groups new landmark
office tower in Puxi, was completed in May. 65% of the
leasing area launched committed at satisfactory rates
PropertyInvestment
Wharf
20

SegmentPerformanceRevenue
1H2010(HK$M)
1H2009(HK$M)
%Change
Retail 1,437 1,197 +20%
Office 774 842 8%
ServicedApartments 132 134 1%
Hotel 488 410 +19%
Total: 2,831 2,583 +10%
HarbourCity
21

RetailSales+34%to$9B,arecord;growthrateoutperformedmarketby16%points
Accountsforcloseto6%oftotalHKretailsales unmatchedbyanyothermall
Turnover:+20%;Operatingprofit:+22%
Successfactors premiumlocation,diversifiedtrademix,wellroundedancillary
services&innovativemarketingcampaigns
Retail
HarbourCity
22

Turnoverdroppedby8%reflectingthesoftnessinthe
marketsince2H08,whichhasstartedtofirmagain
Occupancyat92%
Trendofdecentralizationcontinuedwithtenants
relocatingfromCentral
Leaserenewalretentionrate:67%
Occupancyat90%
Office
ServicedApartments
HarbourCity
23

TimesSquare

wheelock and company wharf (holdings) · pdf filewheelock and company limited the wharf...

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