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PROFIT & LOSS STATEMENTAS AT 30 APRIL 2018
HANDOVER IN LONDON CITY ISLAND & EMBASSY GARDENS WILL ENABLE PROFIT RECOGNITION IN H2 2018
RM’0001ST QUARTER ENDED
31 JAN 2018
2ND QUARTER ENDED
30 APR 2018
PERIOD ENDED
30 APR 2018
Revenue 18 0 18
Direct Expenses (1,668) (846) (2,514)
Gross Loss (1,650) (846) (2,496)
Other Operating Income 6,939 2,932 9,871
Selling & Marketing Expenses (3,099) (3,119) (6,218)
Administrative Expenses (17,192) (17,034) (34,226)
Unrealised gain/(loss) on foreign exchange 4,878 (6,883) (2,005)
Finance Costs - (98) (98)
Share of Results of Joint Ventures (8,631) (4,935) (13,566)
Loss before Taxation (18,755) (29,983) (48,738)
Taxation 2,337 1,108 3,445
Net Profit (16,418) (28,875) (45,293)
Basic Loss per Share (Sen) (0.7) (1.2) (1.9)
BALANCE SHEETAS AT 30 APRIL 2018
• Raised RM180 million via IMTN
Programme in Apr 2018
• Minimal equity contribution needed for
projects jointly-developed with Ballymore
after handovers in LCI and EG commence
in H2 2018
• Lower cash level year to date mainly due
to equity contribution for working capital
needs of existing projects and acquisition
of Stage 1 sites from Willmott Dixon
RM’000
PERIOD ENDED
30 APR 2018 31 OCT 2017
No. of Ordinary Shares 2,400,000 2,400,000
Share Capital 2,592,451 2,592,451
Shareholders’ Funds 2,425,144 2,544,876
NA per Share (RM) 1.01 1.06
Total Cash 460,840 992,388
Total Borrowings 253,510 128,597
Net Cash / (Debt) 207,330 863,791
Gross Debt – Equity Ratio (x) 0.10 0.05
Net Debt – Equity Ratio (x) (0.08 ) (0.35)
PROJECT UPDATEEXISTING LONDON PROJECTS
LONDON CITY ISLAND WARDIAN EMBASSY GARDENS
• BLOCK A&M:
❑ 90% complete as at Apr 2018
❑ Target to commence handover in July
2018
• BLOCK B,C,D,E,F:
❑ Block B&C 61% complete and Block
D&E 54% complete as at Apr 2018
❑ Target handover in H2 2019
EAST & WEST TOWERS
❑ 45% complete as at Apr 2018
❑ Target handover in H2 2020
BLOCK A04:
❑ 91% complete as at Apr 2018
❑ Target to commence handover in Sept 2018
BLOCK A05:
❑ 54% complete as at Apr 2018
❑ Target handover in mid-2019
BLOCK A03:
❑ Yet to be launched
PROJECT UPDATEAUSTRALIAN PROJECTS
• Construction commenced in June 2018
• Target handover in H2 2020
• Basement levels being constructed
• Target handover in mid-2020
YARRA ONE, MELBOURNEWEST VILLAGE, SYDNEY
ECOWORLD LONDONREBRANDED FROM BE LIVING IN JUNE 2018
• EcoWorld International acquired DMco, six Stage 1 sites on 16 Mar 2018 + one stage 2 site on 30 May 2018
• This increased the number of active projects in London from 3 to 7. New sites are 1) Millbrook Park, 2) Kensal Rise & Maida Hill 3) Aberfeldy Village, and 4) Nantly House
• Be Living rebranded as EcoWorld London on 7 June 2018
THE MALAYSIAN-THEMED REBRANDING EVENT TOOK PLACE AT THE INSTITUTE OF DIRECTORS, PALL MALL
ACTIVE PROJECTS – ARTIST’S IMPRESSIONS
KENSAL RISE (M&J PHASE 1) MILLBROOK PARK PHASE 1
ABERFELDY VILLAGE NANTLY HOUSE
ECOWORLD LONDON
ACTIVE PROJECTMILLBROOK PARK PHASE 1
PROJECT OVERVIEW
• 92 townhouses and apartment units
• Average price* of c. £720 psf (upper
mainstream market)
• GDV: £45 million
• Target delivery: 2019
VALUE PROPOSITION
• 5-minute walk to Mill Hill East Station
• 20 minutes to Euston Station from Mill Hill
East Station (via Northern line)
• One of the few development schemes in
Millbrook Park that offers lifestyle
amenities such as gym, games room,
concierge and resident lounge
• Eligible for Help-to-buy
*Average price of private units
ACTIVE PROJECTKENSAL RISE (M&J PHASE 1)
PROJECT OVERVIEW
• 71 townhouses and apartment units
• Average price* of c. £800 psf (upper
mainstream market)
• GDV: £53 million
• Target delivery: 2018
VALUE PROPOSITION
• 7-minute walk to Kensal Rise Station
• 28 minutes to Charing Cross Station from
Kensal Rise Station (via Bakerloo)
• Position on Chamberlayne Road, a great
area for cafes, restaurants and boutiques.
Chamberlayne Road was named as the
“hippest street in Europe” by Vogue
*Average price of private units
ACTIVE PROJECTABERFELDY VILLAGE PHASE 3A
PROJECT OVERVIEW
• 50:50 joint venture with Poplar HARCA, a
housing association
• 121 apartment units
• Average price* of c. £610 psf (mid-
mainstream market)
• GDV: £47 million
• Target delivery: 2019
VALUE PROPOSITION
• 6-minute walk to East India DLR Station
• 12 minutes to Bank Station from East
India DLR Station (via DLR)
*Average price of private units
ACTIVE PROJECTNANTLY HOUSE
PROJECT OVERVIEW
• 50:50 joint venture project with Lampton
360 (London Borough of Hounslow)
• 75 apartment units
• GDV: £24 million
• Target delivery: 2019
VALUE PROPOSITION
• Sold affordable housing comprising 31
units to Octavia Housing, a housing
association
• Potential for en bloc sale of the remaining
OMS and BTR units
• 2-min walk to Hounslow Central Station
• 37 mins to Green Park St from Hounslow
Central St (via Piccadilly line)
UPCOMING PROJECTBARKING WHARF
PROJECT OVERVIEW
• 597 apartment units in Zone 4
• Net internal area (NIA): c. 360,000 sq ft
VALUE PROPOSITION
• 10-minute walk to Barking tube station, 30
minutes train ride to Liverpool St station
(via Hammersmith and City line)
• Situated immediately across an expansive
park (Barking Abbey Park)
• Designed for Build-to-Rent (BTR)
UPCOMING PROJECTKEW BRIDGE
PROJECT OVERVIEW
• 10 blocks of residential developments
surrounding a new football stadium for
Brentford FC in Zone 3
• Construction of football stadium by EW
London in exchange for development land
• GDV: c. £550 million
• Potential for 4 blocks of BTR component
with NIA of c. 310,000 sq ft
VALUE PROPOSITION
• <10-minute walk to Kew Bridge Station,
30 minutes train ride to Waterloo Station
(via South Western Rail)
• Close proximity to large offices such as
Dell, Worley Parsons, GSK & SkyTV
• Well served by road networks and public
transport links.
• Opportunity for cross-selling to tenants of
BTR units
UK PROPERTY MARKETENCOURAGING SIGNS
UNIT SALES OF RESIDENTIAL DEVELOPMENT SCHEME IN LONDON
TAKE-UP OF OFFICE SPACE IN CENTRAL LONDON
Source: Savills, Molior
SALES OF PRIVATE RESIDENTIAL UNITS IN LONDON IN Q1 2018 JUMPED 22% YEAR-ON-YEAR WHILE TAKE-UP FOR OFFICE SPACE IN CENTRAL LONDON ROSE 20% IN THE SAME PERIOD
-
5,000
10,000
15,000
20,000
25,000
30,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 Q12018
AUSTRALIA PROPERTY MARKETSTRONG POPULATION GROWTH KEEPS VACANCY RATE LOW
POPULATION IN SYDNEY AND MELBOURNE
Source: The Australian
2.2%2.1%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Greater Sydney(as at Mar 2018)
Greater Melbourne(as at Jan 2018)
APARTMENT RENTAL VACANCY RATE
Source: JLL Australia
SYDNEY’S POPULATION GREW BY 102,000 (1,960/WEEK) WHILE MELBOURNE’S BY 125,000 (2,400/WEEK) IN 2016-2017**. HIGH POPULATION GROWTH KEEPS VACANCY RATE LOW AND SUPPORTS DEMAND FOR RESIDENTIAL PROPERTIES
3.7 million
5.0 million
6.7 million
3.2 million
4.6 million
6.8 million
1991 2016 2036 forecast*
Sydney Melbourne
**Source: ABC
SALES ACHIEVEDAS AT 31 MAY 2018
PROJECT EWI STAKETOTAL GDV
(MILLION)
CUMULATIVE
SALESSALES VALUE (MILLION)
(MILLION) FY2015-FY2017 FY2018
London City Island 75% £691 £515 £488 £27
Embassy Gardens 75% £933 £321 £297 £24
Wardian London 75% £566 £405 £393 £12
Millbrook Park Ph1 70% £45 £20 £10 £10
Kensal Rise 70% £53 £28 £14 £15
Aberfeldy Village Ph 3A 35% £47 £18 £11 £7
Nantly House 35% £24 £8 £0 £8
SUB-TOTAL UK £2,359 £1,316 £1,213 £103
West Village 100% A$315 A$283 A$272 A$11
Yarra One 80% A$243 A$115 A$76 A$39
SUB-TOTAL AUSTRALIA A$558 A$398 A$348 A$50
GRAND TOTAL RM8,184
• Cumulative sales of RM8.18 billion (1) as at 31 May 2018
• Effective unbilled sales of RM6.08 billion(1) as at 31 May 2018
• Sales of RM698 million (1) in the first seven months of FY2018 (RM551 million (2) in the first six months)
• FY2018 RM3 billion sales target maintained
(1)Based on £1:RM5.3045 & A$1:RM3.0187; (2) Based on £1:RM5.3844 & A$1:RM2.9582
TARGET DELIVERYSUSTAINING EARNINGS VISIBILITY BEYOND 2021
2018 2019 2020 2021 POST - 2021
TARGET HANDOVER TIMELINE
A & M
A04
East &
West Tower
B, C, D, E, F
A05 A03
EcoWorld London
*Subject to change due to potential revision in development plan
EW LONDON PROJECTS
AND MACQUARIE PARK TO
SUSTAIN EARNINGS
BEYOND 2021
Phase 1 Phase 2*
Phase 1 Phase 2*
Phase 3A
Nantly House
CONCLUSIONECOWORLD INTERNATIONAL
➢ BUSINESS OUTLOOK
• London City Island and Embassy Gardens are on track to commence handovers in H2 FY2018
• Remaining units to be marketed to owner-occupiers, capitalising on the high occupancy in first
phases of LCI and EG
• EcoWorld London projects are being brought forward to accelerate sales and earnings recognition
• Target to close 1-2 BTR sales by end-FY2018
➢ FINANCIALS
• Profit recognition in H2 FY2018 on the back of 1st handovers
• Funding needs for development to be met by recycling of handover proceeds and bank borrowings
LAND BANK & PROJECT DETAILSECOWORLD INTERNATIONAL - AS AT 31 MAY 2018
OWNERSHIPLAND SIZE
( ACRES)GDV (MILLION) CUMULATIVE SALES (MILLION)
EFFECTIVE UNBILLED SALES
(MILLION)
United Kingdom
London City Island 75% 6.0 £691 £515 £383
Embassy Gardens 75% 5.4 £933 £321 £226
Wardian London 75% 1.4 £566 £405 £300
Millbrook Park Ph1 70% 2.7 £45* £20 £8
Kensal Rise & Maida Hill (M&J) 70% 1.9 £53* £28 £17
Aberfeldy Village 35% 7.0 £47* £18 £4
Nantly House 35% 1.1 £24 £8 £3
Barking Wharf 70% 3.9
Yet to launchedBarking site 70% 1.1
Woking 70% 3.4
TOTAL UK 33.8 £2,359 £1,316 £941
Australia
West Village 100% 1.2 A$315 A$283 A$281
Yarra One 80% 0.5 A$243 A$115 A$79
TOTAL AUSTRALIA 1.7 A$558 A$398 A$360
*GDV of M&J Ph 1, Millbrook Park Ph 1 and Aberfeldy Phase 3A