CapitaLand Investor Day 2017investor.capitaland.com/newsroom/20171114_072941_C31_SYH... · 2017....
Transcript of CapitaLand Investor Day 2017investor.capitaland.com/newsroom/20171114_072941_C31_SYH... · 2017....
14 November 2017
CapitaLand Investor Day 2017
Presentation By Mr. Andrew Lim, Group CFO
2
Resilient Financial Performance
Strong Balance Sheet
Active And Prudent Capital Management
Key Highlights
CapitaLand Investor Day 2017
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ION Orchard, Singapore
Resilient Financial Performance
4
YTD September 2017 PATMI Up 69% YOY
Notes:(1) Relates to fair value gain arising from change in use of development projects in China, from construction for sale to leasing as an investment property
729
160
190
173
387
31
579
317
760
0
200
400
600
800
1000
1200
1400
1600
YTD Sep 2016 Revaluations and
impairments
Portfolio gains Operating profits YTD Sep 2017
One-off
21%
(1)
69%25% 23%
1Q17
2Q17
1,283
3Q17
$’M
- Gain from bulk sale of 45
units of The Nassim
(+$161M) and higher
handover from China.
-Higher revaluation gains (+$145M)
mainly from Singapore, China and
Europe properties;
- Lower foreseeable losses and
impairments of $12M (YTD Sep 2016:
$21M mainly relate to China and
Singapore projects).
- Divestment of Innov Tower,
Wilkie Edge, Zenith
Residences, Central Park City
and re-measurement gain
from CMT and CRCT.
Higher PATMI Driven By Portfolio & Revaluation Gains & Improved Operating Performance
Resilient Financial Performance
CapitaLand Investor Day 2017
5
576
(31) 29
175
545
204
0
100
200
300
400
500
600
700
800
900
YTD Sep 2016 FV arising from change
in use
Recurring Income from
IPs
Residential Profits YTD Sep 2017
(5%) 5% 30%
1H17
2Q17
Plan17 = $828M
3Q17
Growth In Operating PATMI Continues
-Contribution from newly acquired
properties, namely 4 office and
retail properties in Japan.
$’M
Notes : (1) One- off items for YTD Sep 2016: $31M relate to fair value gains from change in use of properties.(2) Includes corporate costs.
- Bulk sale of The Nassim ($161M);
- Higher handover from China
projects, namely Dolce Vita,
Beaufort, One iPark, Riverfront and
Summit Era.
8% Increase In Total Operating PATMI
(Excluding Fair Value Gain From Change In Use & Gain From The Nassim)
YTD Sep17S$749million
30%
CapitaLand Investor Day 2017
Resilient Financial Performance
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Divested Assets To Reconstitute Portfolio & Recycle Capital
Divestments SBU/ Consideration
Entity S$ Million
50% stake in One George Street, Singapore CCT 591.6
Ascott Orchard Singapore, Citadines Michel Hamburg and Citadines City Centre Ascott 502.2
Wilkie Edge, Singapore CCT 280.0
Innov Tower, Shanghai CLC 271.0
CapitaMall Anzhen CRCT 232.0
Citadines Biyun Shanghai and Citadines Gaoxin Xi’an ART 174.5 1
Golden Shoe Car Park, Singapore CCT 161.1
Eighteen Japan rental housing properties ART 153.6
Victory SR Trust Units CMT 58.8 2
2,424.8
One George Street, Singapore
Citadines Michel Hamburg
Citadines Biyun Shanghai
Note:The table includes assets divested to unrelated parties and CapitaLand REITs/ fund.
1. Announced on 3 July 2017 and to be completed in 2H 2017.2. Victory SR Trust currently holds certain undivided shares of and in a property in Singapore known as Funan (the “Property”) and will, on completion of
the redevelopment of the Property, hold the strata lot comprised in the Property, which is being developed for serviced residence use.
Resilient Financial Performance
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Investments SBU/ Consideration
Entity S$ Million
Asia Square Tower 2 in Singapore CCT 2,115.7
Office and retail assets in Greater Tokyo CMA 636.3
Ascott Orchard Singapore, Citadines Michel Hamburg and Citadines City ART 502.2
Innov Center (formerly known as Guozheng Center), Shanghai CLC 424.1
Quest Cannon Hill and 60% interest in Quest Apartment Hotels Ascott 216.0
DoubleTree by Hilton Hotel New York – Times Square South ART 148.4
The Domain Hotel, Silicon Valley, California Ascott 81.5 1
Hotel Central Fifth Avenue New York Ascott 68.0 2
Victory SR Trust Units Ascott 58.8 3
80% interest in Synergy Global Housing LLC Ascott 46.7
4,297.7
Future deployment
Redevelopment of Golden Shoe Car Park CL, CCT 1,638.0 4
5,935.7
Asia Square Tower 2, Singapore
Yokohama Blue Avenue, Yokohama
Innov Center, Shanghai
Active Capital Deployment
Note: The table includes assets acquired by - CapitaLand from unrelated parties, and - CapitaLand REITs from CapitaLand or unrelated parties
1. To be rebranded to Citadines Cupertino Sunnyvale in 4Q 2018.2. Including the cost of renovation for rebranding into Citadines Fifth Avenue New York.3. Victory SR Trust currently holds certain undivided shares of and in a property in Singapore known as Funan (the “Property”) and will, on completion of
the redevelopment of the Property, hold the strata lot comprised in the Property, which is being developed for serviced residence use. 4. Based on CapitaLand and CCT’s 90% share of the S$1.82 billion estimated total project cost.
Resilient Financial Performance
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Plaza Singapura, Singapore
Strong Balance Sheet
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Financial Impact Of Consolidating CMT, CRCT and RCSTAs Of 30 Sep 2017
Impact On CapitaLand Group's Balance Sheet
S$ Million Before
Consolidation
Impact After
Consolidation
Total Assets 46,048.5 12,014.3 58,062.8
Total Liabilities 20,630.0 6,182.1 26,812.1
Total Equity 25,418.5 5,832.2 31,250.7
Net Debt To Equity (%) 0.35 0.08 0.43
YTD 30 Sep 2017
Impact On CapitaLand Group's Income Statement
S$ Million Before
Consolidation
Impact After
Consolidation
Revenue 3,228.0 169.2 3,397.2
EBIT 2,285.1 114.8 2,399.9
PATMI 1,271.0 12.0 1,283.0
Basic EPS (cents) 29.9 0.28 30.2
Diluted EPS (cents) 27.8 0.25 28.0
Resilient Financial Performance
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Note:1. Total assets excludes cash2. Interest Coverage Ratio = EBITDA/ Net Interest Expenses; Interest Service Ratio = Operating Cashflow/ Net Interest Paid. EBI TDA includes revaluation gain3. Based on put dates of Convertible Bond holders4. On a run rate basis
Interest Coverage Ratio2
Net Debt/Equity
Net Debt/Total Assets1
Interest Service Ratio2
% Fixed Rate Debt
Balance Sheet Remains Robust
Ave Debt Maturity3 (Yr)
NTA per share ($)
FY 2016
0.25
0.41
6.5
10.3
72%
3.3
4.05
YTD Sep 2017
0.26
0.43
9.14
10.24
72%
3.4
4.16
Leverage Ratios
Coverage Ratios
Others
Strong Balance Sheet
Balance Sheet & Liquidity Position
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Recently Tapped Market For 10-Years S$500 Million At 3.08%
Strong Balance Sheet
Well-Managed Debt Maturity Profile (As At 30 Sep 2017)
Well-Managed Maturity Profile(2)
Note:1. Ascott Residence Trust (ART), CapitaLand Commercial Trust (CCT), CapitaLand Mall Trust (CMT), CapitaLand Malaysia Mall Trust (CMMT), CapitaLand Retail China
Trust (CRCT) and RCS Trust (Raffles City Singapore – directly held by CCT and CMT)2. Based on the put dates of the convertible bonds
0.1
0.10.2
3.0
3.8
4.5
2.02.6
1.2 1.40.9
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
2017 2018 2019 2020 2021 2022 2023 2024 2025+
S$B
Total
Debt to be repaid or refinanced as planned
REIT Level Debt
Total Group cash balances and available undrawn facilities of CL's treasury vehicles = ~S$9.3 billion
On Balance Sheet Debt Due In 2017 (Excl. On B/S REITs(1)) S$’ billion
To be refinanced 0.1
To be repaid 0.0
Total 0.1
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0.43
0.65
3Q 2017
Net D/E
Net D/E
Limit
Capacity To Fund Growth
Focus On Optimising Impact
From Every Dollar Of Invested Capital
Debt headroom of ~$3b
SBU’s committed and special requirements of ~$4b
Strong Balance Sheet
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Raffles City Beijing, China
Active and Prudent Capital Management
14
% of Total Debt
Note:1. Restated balance to take into account the retrospective adjustments arising from FRS 110.
Active and Prudent Capital Management
Strong Ability To Access Capital Markets
32
45
2822 22 21 19 20
14
20
23
1824 24 28 28
3136
48
32
54 54 54 51 53 49 50
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013 2014 2015 2016 Sep-17
Convertible Bonds Capital Markets Bank Loans
1 1
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Good Mix Of Fixed And Floating Interest Rates
Note:1. Restated balance to take into account the retrospective adjustments arising from FRS 110.
Well-Mitigated Against Any Interest Rate Increase
Active and Prudent Capital Management
6.8 7.5 8.0
13.6
11.1 11.9
11.2 10.6
14.1
3.5 2.9
4.2
3.9
4.8 4.1 4.9
4.3
5.4
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
2009 2010 2011 2012 2013 2014 2015 2016 Sep-
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Fixed Floating
S$’ Billion
$10.3b $10.4b $12.2b $17.5b $15.9b $16.0b $16.1b $14.9b $19.5b
34%28%
34%
22%
30%
66%72%
66%
78%
70%
% of Total Debt
25%
75%
1
70% 72%
1
30%
28%
CapitaLand Investor Day 2017
72%
28%
16
5.0
3.7
3.4 3.53.3 3.2
1.0
2.0
3.0
4.0
5.0
6.0
FY 2012 FY 2013 (Restated) FY 2014 FY 2015 FY 2016 YTD Sep 2017
%
Disciplined Interest Cost Management
Implied Interest Rates1 Kept Low at 3.2%
Active and Prudent Capital Management
2
Implied Interest Rate
3 3
Note:1. Implied interest rate for all currencies = Finance costs before capitalisation/Average debt2. Implied interest rate for all currencies before restatement was 4.2%3. Straight annualisation
CapitaLand Investor Day 2017
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One George Street, Singapore
Conclusion
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Conclusion
• Well-balanced portfolio enables the Group to maintain stable recurring income operating PATMI
• Prudent capital management ensures sustainable future
growth
• Ability to tap on diversified sources for funds help to preserve financial flexibility
CapitaLand Investor Day 2017
Thank You