Presentation
2014 Results
6th March 2015
2014 Review
•
Strong underlying profit
•
Increased contribution from commercial portfolio
•
Moderately reduced residential performance despite strong profits from
Hong Kong and mainland China
•
Stable asset values
2014 Results
1
2014 Results Highlights
2013
2014
US$935m Underlying profit attributable to shareholders
US$930m
US$255m Non-trading items
US$397m
US$1,190m Profit attributable to shareholders
US$1,327m
US¢ 39.73 Underlying earnings per share
US¢ 39.52
US¢ 50.56 Earnings per share
US¢ 56.42
US$11.41 NAV per share
US$11.71
US¢ 12.00 Final dividend per share
US¢ 13.00
US¢ 18.00 Total dividend per share
US¢ 19.00
2014 Results
2
Commercial Property
2014 Results
3
Commercial Portfolio
HKL’s Share
(’000 sq. ft NFA)
Office
Retail
Hotel
Total
4,142
592
143
4,877
-
94
151
245
1,651
134
-
1,785
Jakarta
661
66
-
727
Hanoi
105
11
-
116
Bangkok
27
61
-
88
Others
71
-
312
383
TOTAL
6,657
958
606
8,221
Hong Kong
Macau
Singapore
2014 Results
4
Hong Kong
1.
One Exchange Square
2.
Two Exchange Square
3.
Three Exchange Square
4.
The Forum
5.
Jardine House
6.
Chater House
7.
Alexandra House
8.
Gloucester Tower
9.
Edinburgh Tower
9a.
The Landmark Mandarin Oriental
10.
York House
11.
Landmark Atrium
12.
Prince’s Building
2014 Results
5
Hong Kong Central Grade “A” Office Rental Index
Index
180
160
140
120
100
80
2010
2011
2012
2013
2014
Source: Jones Lang LaSalle
2014 Results
6
Hong Kong Central Grade “A” Office Market
m sq. ft
2.5
New supply
Net take up
Vacancy
Vacancy %
15
2
12
1.5
9
1
6
0.5
3
0
0
-0.5
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19
Source: Jones Lang LaSalle
Disclaimer: The above forecast shall be regarded solely as a general guide. No representation is made nor responsibility
accepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever.
2014 Results
7
Hong Kong Grade “A” Office Market
m sq. ft
10
New supply
Net take up
Vacancy
Vacancy %
15
8
12
6
9
4
6
2
3
0
0
-2
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19
Source: Jones Lang LaSalle
Disclaimer: The above forecast shall be regarded solely as a general guide. No representation is made nor responsibility
accepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever.
2014 Results
8
Hongkong Land Central Portfolio: Office
Average Net Rent (HK$ psf/month)
Year-end Vacancy
Weighted Average Lease Expiry (years)
2014 Results
2012
2013
2014
90
99
102
3.4%
5.0%
5.4%
3.7
3.6
3.4
9
Hong Kong: Office Tenant Profile
Property
6%
Trading
2%
Governments
1%
Accounting
8%
Others
13%
Banks and
other financial
services
39%
Legal
31%
2014 Results
10
Hong Kong: Expiration and Interim Rent Revisions
Total lettable office area subject to
expiration/rent revisions (‘000 sq. ft)
% of area subject to expiration/rent revisions
Average expiring net rent (HK$ psf/month)
2014 Results
2015
2016
2017
1,034
865
1,456
25%
21%
35%
95
105
104
11
Hongkong Land Central Portfolio: Retail
2012
2013
2014
Average Net Rent (HK$ psf/month)
171
201
214
Year-end Vacancy
0%
0%
0%
Weighted Average Lease Expiry (years)
2.5
2.4
2.8
Note: Vacancy excludes areas under renovation.
2014 Results
12
Macau
One Central (47%-owned)
•
Retail component 96% let
•
5% increase in average rent
2014 Results
13
Singapore
One Raffles Link
(100%-owned)
2014 Results
One Raffles Quay
(33%-owned)
Marina Bay Financial Centre
(33%-owned)
14
Singapore CBD Grade “A” Office Market
m sq. ft
5
New supply
Net take up
Vacancy
Vacancy %
15
4
12
3
9
2
6
1
3
0
0
-1
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19
CBD – Raffles Place, Shenton Way, Marina Bay & Marina Centre
Source: Jones Lang LaSalle
Disclaimer: The above forecast shall be regarded solely as a general guide. No representation is made nor responsibility
accepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever.
2014 Results
15
Singapore Commercial Portfolio
(’000 sq. ft NFA)
Office
Retail
Total
HKL’s Share
239
73
312
312
One Raffles Quay
1,330
4
1,334
445
Marina Bay Financial Centre
2,906
179
3,085
1,028
TOTAL
4,475
256
4,731
1,785
One Raffles Link
2014 Results
16
Singapore: Office Tenant Profile
Natural
resources
8%
Accounting
3%
Others
9%
Legal
5%
Banks and
other financial
services
75%
2014 Results
17
Singapore: Office Average Rents and Occupancy
Average Gross Rent (S$ psf/month)
Year-end Vacancy
Weighted Average Lease Expiry (years)
2012
2013
2014
8.7
9.1
9.2
5.6%
1.7%
1.7%
6.6
5.9
5.5
Note: According to local market practice, the average office rent includes management charges.
2014 Results
18
Singapore: Expiration and Interim Rent Revisions
2015
2016
2017
HKL’s Share: Total lettable office area subject
to expiration/rent revisions (‘000 sq. ft)
120
311
317
% of area subject to expiration/rent revisions
7%
19%
19%
Average expiring rent (S$ psf/month)
9.5
11.1
9.2
Note: According to local market practice, the average office rent includes management charges.
2014 Results
19
Jakarta
Jakarta Land (50%-owned)
•
Existing portfolio features 135,000 sq. m.
•
Average gross rent: US$24.0 psm per month
(2013: US$21.6 psm per month)
•
Occupancy: 95.4%
•
Construction begun on new tower, WTC 3
•
Strong demand for office space
2014 Results
WTC 3
20
Hanoi and Bangkok
Central Building
(71%-owned)
Gaysorn
(49%-owned)
63 Ly Thai To
(74%-owned)
2014 Results
21
Phnom Penh
EXCHANGE SQUARE (100%-owned)
•
Mixed-use complex
•
Heart of Phnom Penh
•
Completion: 2017
2014 Results
22
Beijing
WF CENTRAL (90%-owned)
•
Prestigious retail centre, which
includes a small luxury hotel
•
43,000 sq. m. lettable retail area
•
Completion: end-2016
2014 Results
23
Beijing
CBD (30%-owned)
•
Prime Grade “A” office
•
120,000 sq. m. lettable area
•
Completion: 2019
2014 Results
24
Residential Property
2014 Results
25
Hong Kong
Serenade
•
Final 14 units sold and handed over in 2014
2014 Results
26
Macau
One Central (47%-owned)
•
Final five units handed over in 2014
2014 Results
27
Mainland China
Shenyang
Beijing
Chengdu
Chongqing
Background image from Google Earth
Background image from Google Earth
2014 Results
28
Mainland China – Completed Projects, Beijing
Maple Place
Project
Project Type
• 16 units handed over in 2014
Maple Place (90%)
• 64 units available for future sale,
mostly leased
Central Park
Central Park (40%)
2014 Results
• 72 units of serviced apartments
29
Mainland China – Development Projects Summary
Project
Interest
Project Type
Bamboo Grove, Chongqing
50%
Primarily Residential
Landmark Riverside, Chongqing
50%
Residential (76%), Office, Retail & Others
Yorkville South, Chongqing
100%
Primarily Residential
Yorkville North, Chongqing
100%
Residential (74%), Office, Retail & Others
Central Avenue, Chongqing
50%
Residential (66%), Office & Retail
Chengdu Project
50%
Residential (46%), Office (14%), Retail
(17%), Hotel & Serviced Apartments (23%)
Shenyang Projects
50%
Primarily Residential
2014 Results
30
Mainland China – Development Projects Summary
HKL’s Share
Year of
Acquisition
Site Area
(ha)
Developable
Area
(m sq. m.)
Constructed
(m sq. m.)
Under
Construction
(m sq. m.)
Bamboo Grove, Chongqing
2005
39
0.73
0.54
0.09
Landmark Riverside, Chongqing
2009
17
0.75
0.10
0.07
Yorkville South, Chongqing
2010
39
0.88
0.28
0.29
Yorkville North, Chongqing
2011
54
1.09
0.16
0.26
Central Avenue, Chongqing
2013
20
0.55
-
0.04
Chengdu Project
2010
10
0.45
0.03
0.12
Shenyang Projects
2007
58
1.01
0.13
-
237
5.46
1.24
0.87
Project
TOTAL
2014 Results
31
Mainland China – Revenue Recognised
US$m
Chongqing
Chengdu
Shenyang
700
Beijing
$621m
600
500
$451m
400
300
200
$213m
100
0
2012
2013
2014
Note: The above chart includes HKL’s share of Joint Ventures & Associates.
2014 Results
32
Mainland China – Contracted Sales
US$m
Chongqing
700
Chengdu
Shenyang
Beijing
$632m
$635m
2013
2014
600
500
$429m
400
300
200
100
0
2012
Note: The above chart includes HKL’s share of Joint Ventures & Associates.
2014 Results
33
Mainland China – Contracted Sales
US$m
Chongqing
Chengdu
Shenyang
Beijing
500
400
300
200
$373m
$369m
$200m
$229m
$263m
$262m
100
0
1H '12 2H '12
1H '13 2H '13
1H '14 2H '14
Note: The above chart includes HKL’s share of Joint Ventures & Associates.
2014 Results
34
Mainland China – Contracted Sales
•
At 31st December 2014, US$533m (2013: US$534m) in sold but
unrecognised contracted sales
•
Some 80% of contracted sales scheduled to be recognised in 2015
2014 Results
35
Singapore
Choa Chu Kang Grove
Parcels A & B
Terrasse
Ripple Bay
LakeVille
Palms @ Sixth Avenue
J Gateway
Hallmark Residences
Uber 388
Marina Bay Suites
2014 Results
36
Singapore – Completed Project
Marina Bay Suites (33%-owned)
•
221 units, 0.47m sq. ft
•
Completion: 2013
•
Three units handed over in 2014
•
16 units available for sale
2014 Results
37
Singapore – Completions in 2014
Terrasse
Project
Units
GFA
(‘000 sq. ft)
Sold
Terrasse
414
476
100%
95
98
100%
Uber 388
2014 Results
Uber 388
38
Singapore – Projects for Completion from 2015
Units
GFA
(‘000 sq. ft)
Estimated
Completion Date
Pre-Sold
Palms @ Sixth Avenue
32
109
2015 - Completed
56%
Hallmark Residences
75
110
2015 - Completed
88%
Ripple Bay
679
672
2015
100%
J Gateway
738
576
2016
100%
LakeVille
699
741
2016
53%
Choa Chu Kang Grove
1,327
1,240
2018
Not launched
TOTAL
3,550
3,448
Project
2014 Results
39
Indonesia
Nava Park, Greater Jakarta (49%-owned)
•
JV with PT Bumi Serpong Damai
•
Site area: 67 ha
•
Southwest of central Jakarta
•
223 units launched for sale;
59% pre-sold
•
Completion of 1st phase: 2016
2014 Results
40
Indonesia
Anandamaya Residences (40%-owned)
•
JV with Astra International
•
509 units of luxury apartments;
78% pre-sold
•
Completion: 2018
2014 Results
41
Philippines
Roxas Triangle (40%-owned)
•
JV with Ayala Land
•
182 units; 70% pre-sold
•
Completion: 2019
2014 Results
42
Financial Results
2014 Results
43
Consolidated Profit and Loss Account
2013
1,857
(940)
(US$m)
2014
Revenue
Net operating costs
1,876
(809)
917
Operating profit
235
Share of results of joint ventures
123
(64)
Net financing charges
(69)
(149)
(4)
Tax
Non-controlling interests
1,067
(187)
(4)
935
Underlying profit
930
255
Non-trading items
397
1,190
2014 Results
Profit attributable to shareholders
1,327
44
Revenue
(US$m)
2013
2014
925
Commercial revenue
961
932
Residential revenue
915
1,857
2014 Results
Total
1,876
45
Underlying Profit by Business
2013
(US$m)
2014
914
Commercial property
953
413
Residential property
398
(60)
Corporate expenses
(62)
1,267
1,289
(103)
Net financing charges
(103)
(224)
Tax
(247)
(5)
935
2014 Results
Non-controlling interests
Underlying profit
(9)
930
46
Commercial Property Underlying Profit
2013
(US$m)
2014
Greater China
743
29
- Hong Kong
- Mainland China & Macau
772
29
Southeast Asia & Others
122
20
914
2014 Results
- Singapore
- Others
Total
130
22
953
47
Residential Property Underlying Profit
2013
(US$m)
2014
Greater China
19
116
- Hong Kong
- Mainland China & Macau
69
179
Southeast Asia & Others
278
-
413
2014 Results
- Singapore
- Others
Total
149
1
398
48
Consolidated Cash Flow
(US$m)
2013
2014
908
Operating activities
699
(378)
Investing activities
88
(404)
Financing activities
122
248
Others
Decrease in net debt
(426)
7
368
(3,273)
Net debt at beginning of period
(3,025)
(3,025)
Net debt at end of period
(2,657)
2014 Results
49
Operating Activities
(US$m)
2013
917
(77)
2014
Operating profit excluding non-trading items
Net interest paid
1,067
(81)
(139)
Tax paid
(134)
(367)
Payments for residential sites
(429)
(303)
Development expenditure on residential projects
(454)
918
Proceeds from residential sales
962
151
Dividends received from joint ventures
153
(192)
908
2014 Results
Others
(385)
699
50
Investing Activities
(US$m)
2013
(40)
(422)
104
(134)
114
(378)
2014 Results
2014
Major renovations capex
Funding of joint ventures
Loan repayments from joint ventures
Development expenditure
Others
(38)
(216)
479
(137)
88
51
Consolidated Cash Flow
(US$m)
2013
2014
908
Operating activities
699
(378)
Investing activities
88
Financing activities
(397)
(7)
- Dividends paid by the Company
- Dividends paid to minority shareholders
(404)
(5)
(426)
122
Others
248
Decrease in net debt
(3,273)
Net debt at beginning of period
(3,025)
Net debt at end of period
2014 Results
(421)
7
368
(3,025)
(2,657)
52
Consolidated Balance Sheet
2013
23,583
4,167
27,750
2,670
1,247
3,917
(1,743)
29,924
26,899
3,025
29,924
2014 Results
(US$m)
2014
Investment properties
- Subsidiaries
- Joint ventures
Properties held for sale
- Subsidiaries
- Joint ventures
Others
Gross assets (excluding cash)
Financed by:
- Total equity
- Net debt
23,697
4,474
28,171
2,923
1,372
4,295
(2,211)
30,255
27,598
2,657
30,255
53
Investment Property – Basis of Valuation
Capitalisation Rates
2013
1H 2014
2014
Hong Kong Office - Exchange Square 1 & 2
4.00%
4.00%
4.00%
Hong Kong Retail - Landmark Atrium
4.50%
4.50%
4.50%
Singapore Office - MBFC
3.80%
3.80%
3.75%
Note: These capitalisation rates are provided on an indicative basis.
2014 Results
54
Investment Property – Carrying Values
2013
(US$m)
2014
Greater China
22,302
1,368
- Hong Kong
- Mainland China & Macau
22,336
1,650
Southeast Asia & Others
3,603
477
27,750
- Singapore
- Others
Total
3,628
557
28,171
Note: The analysis includes share of Joint Ventures & Associates.
2014 Results
55
Properties Held for Sale – Carrying Values
2013
(US$m)
2014
Greater China
62
2,308
- Hong Kong
- Mainland China & Macau
23
2,435
Southeast Asia & Others
1,456
91
- Singapore
- Others
3,917
(923)
2,994
1,696
141
4,295
Pre-sale proceeds
Net investment
(941)
3,354
Note: The analysis includes share of Joint Ventures & Associates.
2014 Results
56
Gross Assets at 31st Dec 2014
By Activity
By Location
Commercial 88%
Residential 12%
2014 Results
Hong Kong 73%
Mainland China and Macau 11%
Southeast Asia 16%
57
Treasury Management
Summary
2013
2014
Net debt (US$m)
3,025
2,657
11%
10%
6.7
7.3
2.7%
2.9%
-S&P
A-
A
- Moody’s
A3
A3
Gearing
Average tenor of debt (years)
Average interest cost
Credit ratings
2014 Results
58
2014 Financing Activity
•
US$452m notes issued under MTN programme
•
Total of US$1.2bn in banking facilities raised
- US$355m in bilateral facilities
- US$500m project loan for WF CENTRAL
- US$339m project loan for Choa Chu Kang project
2014 Results
59
Maturity Profile of Committed Facilities/Bonds
US$m
Bank Facilities (Drawn & Undrawn)
4,000
(US$m)
Bonds *
$3,263m
3,500
3,000
2,500
2,000
$1,286m
1,500
1,000
500
$785m
$675m
2016
2017
$882m
$310m
0
2015
2018
2019
2020+
* Includes bonds and notes issued under MTN Programme which are at face value.
2014 Results
60
Liquidity at 31st Dec 2014
2013
(All figures in US$bn)
HK$1
S$2
US$
RMB
Total
7.1
Committed lines
4.7
2.0
-
0.5
7.2
4.4
Gross debt
3.1
1.2
-
-
4.3
2.7
Available lines
1.6
0.8
-
0.5
2.9
1.4
Cash
-
0.3
1.0
0.3
1.6
4.1
Available liquidity
1.6
1.1
1.0
0.8
4.5
Notes: (1) HK$ debt includes US$ debt swapped into HK$.
(2) S$ debt includes HK$ debt swapped into S$.
2014 Results
61
Outlook
•
Commercial leasing markets in Hong Kong and Singapore remain stable
in 2015
•
Further strong profits expected from residential development activities
in mainland China
•
No residential profits in Hong Kong and lower contribution from
Singapore
•
The Group continues to seek opportunities in premium commercial and
residential developments in Greater China and Southeast Asia
2014 Results
62
Thank you
Hongkong Land
www.hkland.com