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1Q 2010 Results
20 April 2010
Contents
Financial PerformanceFinancial Performance
Operations Review
Market Outlook
2
Going Forward
2
Stronger Earnings
Net profit up 75.3% y‐o‐y to $64.7m
Annualised ROE up 25% y‐o‐y to 7.5%
Highlights
Robust Sales
p y y
Good take‐up for Reflections at Keppel Bay
Strong sales for township project in China
Acquired waterfront township and ill i i HCMC Vi
3
Selective Acquisitions
villa sites in HCMC, Vietnam
K‐REIT Asia took 50% stake in Brisbane office building
Alpha’s fund acquired 77% stake in Katong Mall, Singapore
Financial Performance
4
3
Financial Performance –1Q2010 vs. 1Q2009
Net Profit up by 75.3% y‐o‐y
1Q 2010 1Q 2009 % Chg
Turnover $158.8m $145.7m 9
EBITDA $48.7m $34.3m 42
Operating Profit $46.4m $31.9m 45.5
5
Pre‐tax Profit $88.7m $55.7m 59.2
Net Profit $64.7m $36.9m 75.3
Key Financial Ratios
Gearing down by 53.8% y‐o‐y
1Q 2010 1Q 2009 % Chg
EPS 4.5 cts 3.6 cts* 25
Annualised ROE 7.5% 6% 25
/
6
Net Debt/Equity Ratio 0.24x 0.52x (53.8)
NTA/Share $2.43# $3.50 (30.6)
* Restated to include the effect of the 9‐for‐10 rights issue in 2009# Lower due to the effect of the rights issue
4
Breakdown of Net Profit –Business Segment
Business Segment 1Q 2010 1Q 2009 % Chg Comments
Property Trading $48.7m $31.7m 53.6Higher due mainly to increased contributions from Reflections and Caribbean at Keppel Bay, and Marina Bay Suites in Singapore
Property Investment $12.4m $9.6m 29.2 Higher due mainly to improved earnings of K‐REIT Asia
Fund Management $7.4m $4.6m 60.9 Higher due to higher fee income from Alpha and K‐REIT Asia Management
7
Hotels / Resorts $0.1m $0.1m ‐
Others ($3.9m) ($9.1m) nm Improved as a result of the write back of cost over‐provision
Total $64.7m $36.9m 75.3
Geographical Location
1Q 2010 1Q 2009 Comments
Breakdown of Net Profit‐ Geographical Location
Location
Singapore $44.2m 68.3% $27.5m 74.5%Higher due mainly to higher trading profits, rental income and fee income
Overseas $20.5m 31.7% $9.4m 25.5% Higher due mainly to increased profit contribution from China
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Total $64.7m 100% $36.9m 100%
5
Project% of Sales
% of Completion
Profit Recognised in 1Q 2010
Notes on Profit Recognition
Caribbean at Keppel Bay (168 remaining units) 97.7% 100% $8.8m
Reflections at Keppel Bay (1,129 units) 57.1% 42.4% $7.9m
Marina Bay Residences (428 units) 100% 91.2% $6.8m
Marina Bay Suites (221 units) 39.2% 18.5% $6.4m
The Arcadia, Tianjin (168 units) 54.2% 100% $7m
Villa Riviera Shanghai (168 units)
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Villa Riviera, Shanghai (168 units)
Phase 1 (42 units) 100% 100%
$3.2m Phase 2 (46 units) 74.9% 99.9%
Phase 3 (80 units) 98.7% 95.6%
1Q 2010 1Q 2009
N D b $0 93 b $1 55 b
Healthy Balance Sheet
Net Debt $0.93 bn $1.55 bn
Avg Interest Rate of Borrowings 2.15% 2.44%
% Fixed Rate Debt 34% 17%
Avg Debt Maturity 2.34 years 1.32 years
(1)
Interest Cover Ratio(1)
15.7x 6.11x
(1) Interest Cover Ratio = Profit Before Net Interest and Tax
Net Interest Cost Expensed and Capitalised
10
6
Loan Maturity Profile
24%Due in 2010
6%
22%
19%
18%
Due in 2015
Due in 2013
Due in 2012
Due in 2011
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11%
6%
Rolling
Due in 2015
Total Debt : $1.7 bn
Financial Management
Diversified Funding Base
• Strong cash position : $0.8 billion as at end‐Mar 2010Strong cash position : $0.8 billion as at end Mar 2010
• Funds from operations and related companies
• Credit facilities and MTN programme (unutilised :US$456m)
Prudent Debt Management
• Refinancing on track with improved debt maturity
W ll d d l h d i fil
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‐ Well‐spread and lengthened maturity profile
• Higher proportion of fixed debt in low interest rate environment
‐ Increased from 26% to 34%
• Low cost of funds : 2.15% as at end‐Mar 2010
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Operations Review
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Singapore
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Singapore Residential
Strong take‐up for new release at Reflections at Keppel Bay
Reflections at Keppel Bay
Resorts World Sentosaand Universal Studios
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Capitalise on the opening of Resorts World Sentosa and Universal Studios
Total : 1,129 units
• 97% of 760 launched units sold to date(1)
(1) 98% of 740 units launched sold as at end‐Mar 2010
Singapore Commercial – MBFC and OFC
Phase 1 of MBFC fully leased ahead of completion
Marina Bay Financial Centre
Ocean Financial
Marina Bay Financial Centre (MBFC) Ocean Financial Centre (OFC)
Marina Bay Financial Centre Centre
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New take‐up • Barclays : Additional 250,000 sf• Prudential : Approx. 37,000 sf
Overall commitment : 78%• Phase 1 : 1.6m sf
‐ Towers 1 & 2 : Fully leased*
• Phase 2 : 1.3m sf‐ Tower 3 : 55%
Total commitment : 31%
Total NLA : 850,000 sf
4th generation building to rise at formerOcean Building site
Completion : Mid‐2011
* Except for a small percentage of space reserved for existing tenants’ expansion
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Singapore Commercial – K‐REIT Asia
275 George Street Continued income growth
Stable income growth with selective acquisitions
• Distributable income : Up 13.8% y‐o‐y to $17.8m
• Distribution per unit : 1.33 cents
• Committed occupancy as at 1Q 2010 : 96%
• Average portfolio rent in Mar 2010 : $8.30 psf (1)
• 50% stake in 275 George Street, Grade A
Enlarged portfolio with quality assets
commercial building, Brisbane’s CBD
‐ Portfolio asset size up from $2.1bn to $2.3bn
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Low aggregate leverage of 25.2% provides capacity for acquisitions
(1) The average rental of K‐REIT Asia’s portfolio of properties in Singapore, excluding 275 George Street in Brisbane, Australia
Overseas
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Overseas – China
Strong demand for townships
The Arcadia, TianjinThe Botanica, Chengdu
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Total : 168 units
88% of 115 launched units sold as at end‐Mar 2010
Phase 5 : 1,810 units
All 376 launched units sold in first weekend of April
Overseas – Vietnam
Steady demand for quality homes
Riviera Cove, HCMC The Estella, HCMC
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Total : 96 villas
83% of 82 launched units sold as at end‐Mar 2010
Phase 1 : 719 units
61% of 719 units sold as at end‐Mar 2010
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Overseas – India and Indonesia
Continued sales as market sentiment improves
Elita Promenade, Bangalore Elita Garden Vista, Kolkata Jakarta Garden City
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Total : 1,573 units
90% of 1,495 launched units sold as at end‐Mar 2010
Phase 1 : 688 units
65% of 688 units soldas at end‐Mar 2010
Phase 1 : 994 units
77% of 580 launched units sold as at end‐Mar 2010
Fund Management
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Fund Management
Increased AUM with selective acquisitions
Alpha Investment Partners : Alpha Asia Macro Trends Fund
Total AUM:
Funds under AlphaCommitted
Equity % Invested
No. of Countries Invested In
• Acquired 77% stake in Katong Mall, Singapore
• Actively seeking new acquisitions in core Asia markets
K‐REIT Asia
• Acquired 50% stake in 275 George Street, Brisbane, Australia
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Alpha Investment Partners :
$7.7 bn (1)
K‐REIT Asia : $2.3 bn (2)
$10.0 bnAsia No. 1 Property Fund $400m 100% 4
Alpha Core Plus Real Estate Fund$720m 100% 4
AIB Alpha Japan Fund $259m 46% 1
Alpha Asia Macro Trends Fund $1.7bn 30% 5
(1) When fully leveraged and fully invested(2) Includes asset revaluation, Prudential Tower strata acquisition and 50% stake in 275 George Street, Brisbane, Australia
Awards
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Best Annual Report (Gold) at Singapore Corporate Awards• Market capitalisation of $1 bn and above
Business Times revised Governance and Transparency Index(1)
• Ranked top 2% out of 681 companies
Awards
FIABCI Indonesia – BNI Prix d’Excellence Award 2009 • Jakarta Garden City – Best Middle Class Residential Development
• Shortlisted to represent Indonesia at the FIABCI World Congress
ISO 14001 certification • Singapore property development and property management operations
• Property development operations in China and Vietnam
LEED(2) Award • Ocean Financial Centre – Platinum level LEED‐CS pre‐certification
BCA Green Mark Awards
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• The Promont – Gold• Marina Bay Suites – Gold• Sixth Avenue Residences – Gold• MBFC Phase 2 (Commercial) – Gold Plus• One Raffles Quay – Gold (First building to achieve Green Mark Award under guidelines for existing devts)
• Riviera Cove, HCMC – Gold
• The Arcadia, Tianjin – Gold
• The Springdale, Shanghai (Plots 1 and 3) – Gold
• Spring City (Residential – La Quinta), Kunming – Gold
(1) Replaced Business Times Corporate Transparency Index(2) Leadership in Energy and Environmental Design
Market Outlook
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Residential
Strong buying sentiment continues into 2010
• Higher take‐up of more than 4,400 units(1) in 1Q 2010 compared to 2,596 units sold in 1Q 2009
Prices continue on uptrend for high‐end segment
Market Outlook – Singapore
Office market improving along with economic recovery
• Rental bottoming out and office capital values stabilising
• Increase in Grade A office occupancy to 94.5%(2) in 1Q 2010 from 93.8% in 4Q09
• Positive economic growth forecast of 7% to 9% in 2010
Residential Prices continue on uptrend for high‐end segment
Demand continued as government took measures to stabilise the market
IRs to increase Singapore’s international exposure and foreign buyers demand
• Expansion plans by financial institutions
Deferred construction of some office projects and redevelopment of office buildings to other uses e.g. residential and hotels, help reduce supply
Singapore to emerge as a premier gateway city in the region with focus on key sectors such as bio‐medical and financial services
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Office
(1) URA (2) CBRE
Market Outlook – Overseas
Asia : Demand backed by rising home ownership aspirations
Home
.
Economic Growth
Favourable Demographics
Growing Middle Class
Rising Affluence
Urbanisation Trends
Home Ownership Aspirations
China : Government closely monitoring market and implement measures to curb overheating
Vietnam : Pent‐up demand for quality landed homes and mid‐endsegment shows signs of recovery
India : Prices bottoming out and property market recovering well28
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Going Forward
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Going Forward
Seek acquisitions in Singapore and overseas withSeek acquisitions in Singapore and overseas with continued focus on developing quality residential, office and township projects
K‐REIT Asia and Alpha to seek acquisitions of quality assets in Singapore and overseas
30
Unlock value from non‐core assets at appropriate time
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Singapore Residential
Capitalise on opening of Marina Bay Sands to launch Marina Bay Suites
Continue to time launches and seek selective acquisitions
Leverage on positive sentiments to launch remaining phases of Reflections at Keppel Bay
Remaining 3 plots of land at Keppel Bay to be launched according to market demand
Continue to seek acquisition of new sites
31Marina Bay Suites Reflections at Keppel Bay
Singapore Office
Flight to quality to continue
R ili t i l tf li Resilient commercial portfolio
• MBFC and OFC to benefit from fight to quality with new Grade A office buildings
• Prime location close to major MRT stations and expressways
32Properties held under K‐REIT Asia : Keppel Towers & GE Tower, Bugis Junction Towers, Prudential Tower(73.4% interest) and One Raffles Quay (1/3 interest)
• Continue to attract more pre‐completion commitments and new tenants for existing buildings
17
Overseas Residential – China
The Botanica, Chengdu
Tap on robust demand for townships to launch more units
Central Park City, Wuxi
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Phase 5 launch : 1,810 units in 2Q 2010
• Capitalise on strong sales of 376 units sold in first weekend of April to launch more units
Over 4,500 units sold over four phases since launched in 2005
Phase 2 : 1,627 units
Stage 1 of Phase 2 launch :
• 342 units in 2Q 2010
Capitalise on forthcoming relocation of the municipal offices and proximity to MRT station
Overseas Residential – China
The Springdale, Shanghai
Launch new project and phase of 8 Park Avenue in Shanghai
8 Park Avenue, Shanghai
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Total : 2,667 units
Launch : Phase 1 (180 units) in 2Q 2010
Nanhui designated as part of Pudong
Close to World Expo 2010 and Disneyland
Total : 260 units (2 blocks)
Launch : 2H 2010
Located at prime Jingan District andentertainment shopping belt
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Overseas Residential ‐ China
Keppel’s 35.4 ha site in SUA of Tianjin Eco‐City
Launch first residential project at Tianjin Eco‐City
Total : 4,995 homes plus office and retail
Commenced development for Phase 1 residential :
• Total : 1,678 units
• Launch : 2H 2010
Shareholding structure :
• KLL : 55%, KCL : 45%
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Tianjin Eco‐City Entire Development
Start‐up Area (SUA)
Size 30 sq km 4 sq km
Development period 10‐15 years 3‐5 years
No. of homes > 100,000 >20,000
Population (approx.) 350,000 85,000
Overseas Residential – Vietnam
Expect to launch Riviera Point in HCMC
Riviera PointRiviera Point
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Riviera Point, District 7 in HCMC
• Opposite to the established Phu My Hung township and commercial area
• Total site area : About 9‐ha
• Total : 2,400 waterfront condos
• Launch : 2H 2010
Continue to sell new phases of The Estella and Riviera Cove
19
Thank You
37
Additional Slides
38
20
Singapore Residential Landbank
Attributable Attributable
Land Area GFA
(%) (sf) (sf)
Reflections at Keppel Bay Keppel Bay 30% 99‐yr 269,930 624,521 392
Marina Bay Suites Marina Bay 33.3% 99‐yr 19,015 156,462 129
Keppel Bay Plot 3 Keppel Bay 30% 99‐yr 125,366 152,999 307
Keppel Bay Plot 4 Keppel Bay 11.7% 99‐yr 36,114 40,300 234
Keppel Bay Plot 6 Keppel Bay 30% 99‐yr 141,429 67,813 94
Total 591,854 1,042,095 1,156
Remaining UnitsProject Location KLL's
Stake
Tenure
39
China Residential Launches
Units to Launch 2010 2011 2012
8 Park Avenue, Shanghai(1) 260 134 ‐
Villa Riviera, Shanghai(1) 7 ‐ ‐
The Botanica, Chengdu(1) 742 1,743 1,500
The Arcadia, Tianjin(1) 67 ‐ ‐
Central Park City, Wuxi(1) 877 750 630
The Seasons, Shenyang(2) 270 420 1,293
Waterfront Township Devt, Shenyang(2) ‐ 587 588
The Springdale, Shanghai(2) 666 476 929
Integrated Marina Lifestyle Devt, Zhongshan(2) ‐ 200 342
Stamford City, Jiangyin(1) 183 368 324
Serenity Cove, Tianjin (Ph 3)(1) 139 100 101
Tianjin Eco‐City (35.4 ha within SUA)(2) 888 894 1,284
Total 4,099 5,672 6,991
(1) Balance units(2) New launches 40
21
Other Overseas Residential Launches
Units to launch 2010 2011 2012
VietnamThe Estella, Dist. 2, HCMC (1) 141 145 300Riviera Point, Dist. 7, HCMC (2) 300 400 368
(2)Prime Condo, Dist. 2, HCMC (2) ‐ ‐ 350Riviera Cove (Villa Devt.), Dist. 9, HCMC (1) 28 ‐ ‐Saigon Sports City, HCMC (2) ‐ ‐ 355
Dong Nai Waterfront City (2) ‐ ‐ 100
South Rach Chiec, Dist 2, HCMC(2) ‐ 300 400Riviera Garden, Dist 12, HCMC (2) ‐ 87 87
ThailandVilla Arcadia at Srinakarin, Bangkok (1) 41 50 50Villa Arcadia at Watcharapol, Bangkok (1) 28 30 30IndiaElit P d B l (1) 93 139Elita Promenade, Bangalore (1) 93 139 ‐Elita Horizon, Bangalore (2) ‐ 187 400Elita Garden Vista, Kolkata (1) 149 244 233IndonesiaJakarta Garden City (1) 164 373 1,021Middle EastAl Mada Towers, Jeddah, Saudi Arabia (2) 350 300 300
Total 1,294 2,255 3,994
41
(1) Balance units(2) New launches
China Residential Landbank
Site LocationKLL's Stake
Total Land Area Total GFA Remaining Area
RemainingUnits
(%) (sm) (sm) For Sale (sm) For Sale
8 Park Avenue Shanghai 99% 33 432 133 393 65 233 3948 Park Avenue Shanghai 99% 33,432 133,393 65,233 394
Park Avenue Central Shanghai 99% 28,488 99,708 99,708 708
Villa Riviera Shanghai 99% 153,726 53,796 4,117 7
The Arcadia Tianjin 100% 127,970 74,826 33,808 67
Central Park City Wuxi 49.7% 352,534 670,510 (2) 415,605 (1) 3,537
The Botanica Chengdu 44.1% 419,775 1,042,846 (1) 479,592 (1) 4,961
Stamford City Jiangyin 83.3% 82,987 314,507 (2) 246,549 (2) 871
The Seasons Shenyang 100% 348,312 496,265 487,032 4,748
Waterfront Township Devt Shenyang 100% 302,681 756,580 (2) 756,580 (2) 5,695
The Springdale Shanghai 99% 264,090 328,792 (2) 318,521 (1) 2,667
42
(1) Excludes commercial area(2) Includes commercial area
Integrated Marina Lifestyle Devt Zhongshan 80% 881,638 432,003 427,683 2,855
Serenity Cove P3 Tianjin 100% 128,685 80,000 79,800 340
Tianjin Eco‐City (35.4 ha within SUA) Tianjin 55% 354,174 684,500 684,500 4,995
Mixed Devt Tianjin 100% 1,666,665 1,358,199 1,358,199 8,664
Total 5,145,157 6,525,925 5,456,927 40,509
22
Other Overseas Residential Landbank
Country Site
KLL's Total Land Area Total GFARemaining Area
for SaleRemaining
Units for Sale
Stake (sm) (sm) (sm)
India Elita Promenade , Bangalore 51% 96,618 237,446 36,261 232
Elita Horizon, Bangalore 51% 79,177 150,680 150,680 1,138
Elita Garden Vista Kolkata 37 74% 93 998 195 380 130 561 831Elita Garden Vista, Kolkata 37.74% 93,998 195,380 130,561 831
Sub‐Total 269,793 583,506 317,502 2201
Indonesia Jakarta Garden City ‐ LH phase 1 51% 143,990 148,839 81,550 549
‐ LH remaining phases 827,914 999,890 999,890 7,403
Sub‐Total 971,904 1,148,729 1,081,440 7,952
Thailand Villa Arcadia at Srinakarin 45.5% 159,706 84,440 68,777 216
Villa Arcadia at Watcharapol 66.7% 124,912 68,314 80,614 255
Sub‐Total 284,618 152,754 149,391 471
Vietnam Saigon Sports City, HCMC 90% 640,477 688,180(2) 298,786 (1) 2,318
The Estella, HCMC 55% 47,906 279,851(2) 147,159 (1) 956
Riviera Point (Bridge‐site), Dist. 7, HCMC 75% 89,712 447,079(2) 293,676 (1) 2,400
Dong Nai Waterfront City, Dong Nai Province 50% 3,667,127 1,979,727(2) 1,802,771 (1) 10,156
Prime (Condo), Dist. 2, HCMC 60% 51,000 244,800(2) 166,464 (1) 1,500
Ri i C (Vill ) Di 9 HCMC 60% 97 000 34 711 21 190 28
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(1) Excludes commercial area(2) Includes commercial area
Riviera Cove(Villa), Dist. 9, HCMC 60% 97,000 34,711 21,190 28
South Rach Chiec, Dist 2, HCMC 42% 300,000 995,000(2) 641,750 (1) 4,700
Riviera Garden,Dist. 12, HCMC 60% 113,098 40,715 56,549 174
Sub‐Total 5,006,320 4,710,063 3,428,345 22,232
Middle East Al Mada Towers, Jeddah, Saudi Arabia 51% 36,236 253,652 253,652 993
Sub‐Total 36,236 253,652 253,652 993
Philippines Palmdale Heights(Ph2), Manila 30.9% 15,976 62,751 62,751 1,264
SM‐KL Residential Devt. Manila 24.2% 7,068 56,000 56,000 430
Sub‐Total 23,044 118,751 118,751 1,694
Total 6,591,915 6,967,455 5,349,081 35,543
Geographical Breakdown
Asset Allocation – By Geographical Location(31 March 2010)
Net Profit – By Geographical Location(31 March 2010)
China17%
Indonesia8%
Vietnam9%
India1% Others
4%
China 21%
Vietnam 5%
India 3%
Others 3%
Singapore61%
17%
Singapore 68%
44
23
Singapore Commercial
Tenant Business Sector by Net Lettable Area as at 31 March 2010
Diverse tenant mix reduces exposure to specific sector
Accounting & consultancy services,
3.2%
Banking, insurance & financial services, 16.6%
Conglomerate, 9.4%
Services, 15.9%
Shipping & marine services, 5.6%
Others, 8.0%
Electronic & electrical, 11.1%
Government agency, 0.5%
Hospitality & leisure, 8.1%
IT Services & consultancy, 6.7%
Petrochemical, 10.0%
Pharmaceuticals & healthcare, 0.9%
Real estate & property services, 3.9%
45
Overseas – China
Sino‐Singapore Tianjin Eco‐City
Sale of 10% interests in Singapore Tianjin Eco‐City to Singbridge g p j y g gInternational Singapore(1)
Tianjin Eco-City shareholding structure(2) :
45% 35% 20%
Keppel Integrated EngineeringKeppel Integrated EngineeringKeppel CorporationKeppel Corporation Keppel LandKeppel Land Singbridge Int’l S’poreSingbridge Int’l S’pore
90% 10%
46
(1) A wholly‐owned subsidiary of Temasek Holdings Ltd
(2) Summarised graphical representation and not the legal representation of the shareholding structure
Tianjin Eco-City (JV)
50% 50%
Registered Capital : RMB 4 billion
Singapore ConsortiumChinese Consortium
24
This release may contain statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. You are cautioned not to place undue reliance on
such statements, which are based on the current views of Management on future developments and events.
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