2012 Half-Yearly Results - Hongkong Land - Home · Hanoi, Bangkok and Phnom Penh . 22 . Gaysorn (49%-owned) Central Building (71%-owned) 2012 Half -Yearly R esults Background Image

2012 Half-Yearly Results

US$, except as noted

2

2011 June ’12 June ’11

703m Underlying profit attributable 318m 365m to shareholders

30.29¢ Underlying earnings per share 13.59¢ 15.83¢

4,603m Non-trading items 308m 3,440m

5,306m Profit attributable to shareholders 626m 3,805m

228.48¢ Earnings per share 26.73¢ 164.82¢

10.58 NAV per share 10.77 10.08

n/a Interim dividend per share 6.00¢ 6.00¢


2012 Half-Yearly Results Highlights

Commercial Property

Commercial Portfolio (’000 sq. ft NFA)

Office Retail Hotel Total Hong Kong 4,109 591 143 4,843 Macau - 94 151 245 Singapore 1,640 134 - 1,774 Jakarta 350 62 - 412 Hanoi 105 11 - 116

Bangkok 27 62 - 89 Others 70 - 312 382 6,301 954 606 7,861 Under Development: Hong Kong 41 - - 41 Jakarta 309 22 - 331 Total 6,651 976 606 8,233

4 2012 Half-Yearly Results

Hong Kong

5

1. One Exchange Square 2. Two Exchange Square 3. Three Exchange Square 4. The Forum – under redevelopment 5. Jardine House 6. Chater House 7. Alexandra House 8. Gloucester Tower 9. Edinburgh Tower

10. York House 11. Landmark Atrium 12. Prince’s Building


Hongkong Land Central Portfolio: Office

6

Average Rent (psf) Vacancy

2012 1H HK$89.3 June 3.1%

2011 2H HK$88.4 Dec 2.0% 1H HK$85.6 June 2.5%


80

100

120

140

160

180

2007 2008 2009 2010 2011 1H'12

Index

Hong Kong Central Grade “A” Office Rental Index


Source: Jones Lang LaSalle

-1

-0.5

0

0.5

1

1.5

2

2.5

'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16

Vacancy % m sq. ft

New supply Net take up Vacancy


0

4

8

12

16

20

Hong Kong Central Grade “A” Office Market

8

Disclaimer: The above forecast shall be regarded solely as general guide, no representation is made nor responsibility accepted by Jones Lang LaSalle for the accuracy of the whole or any part whatsoever.


-2

0

2

4

6

8

'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16

m sq. ft Vacancy %



0

4

8

12

16

Hong Kong Grade “A” Office Market

9



Banks and other financial

services 37%

Legal 28%

Accounting 9%

Government 5%

Trading 3%

Property 5%

Others 13%

10

By Business, 30 June 2012

Hong Kong: Office Tenant Profile


Hong Kong: Expiration and Interim Rent Revisions

2012 2013 2014

Total lettable office area subject to expiration/rent revisions (‘000 sq. ft)

538 951 1,285

% of area subject to expiration/rent revisions 13% 23% 31%

Average expiring rent (HK$ psf/month) 79.3 78.9 108.4


The Forum Redevelopment

• Iconic office development

• 48,000 sq. ft GFA

• 40,700 sq. ft NFA

• Completion in early 2014

• Pedestrian Plaza to be significantly enhanced


Hongkong Land Central Portfolio: Retail

13

2012 1H HK$165.3

2011 2H* HK$159.1 1H* HK$148.5

• Retail occupancy was 100%

• Average retail rent at:


* excluding The Forum

• Retail - flagship luxury shopping centre - 200,800 sq. ft - 95% let • Hotel, Mandarin Oriental - 213 rooms - 92 Residences and Apartments launched for individual sale Dec 2010

One Central (47%-owned)

Macau


Singapore

15

Background Image from Google EarthBackground Image from Google Earth

Singapore

One Raffles Link Marina Bay Financial Centre

(33%-owned)

One Raffles Quay (33%-owned)


CBD – Raffles Place, Shenton Way & Marina Bay

Singapore CBD Grade “A” Office Market

16

-1

0

1

2

3

4

'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16

Vacancy % m sq. ft



0

10

20

30

40



• Towers 1 & 2 - 1.7m sq. ft - completed in 2010 - larger tenants: SCB, Barclays

Capital & BHP Billiton

• Tower 3 - 1.3m sq. ft - completed March 2012 - 70% committed - largest tenant: DBS Bank

Marina Bay Financial Centre (33%-owned)

Singapore


Attributable HKL Office Retail Total Interest

One Raffles Link 237 73 310 310

One Raffles Quay 1,332 4 1,336 445

Marina Bay Financial Centre Tower 1 620 17 637 212 Tower 2 1,029 78 1,107 369 Tower 3 1,230 83 1,313 438 Total 4,448 255 4,703 1,774

Commercial Portfolio (’000 sq. ft NFA)


Banks and other financial

services 81%

Legal 4%

Accounting 3%

Property 1%

Other 11%

19

By Business, 30 June 2012

Singapore: Office Tenant Profile


Singapore: Expiration and Interim Rent Revisions

2012 2013 2014

HKL Share: Total lettable office area subject to expiration/rent revisions (‘000 sq. ft)

4 213 255

% of area subject to expiration/rent revisions 0% 14% 17%

Average expiring rent (S$ psf/month) 8.5 7.9 8.5

Note: The analysis excludes the unlet 30% of MBFC Tower 3


Jakarta Land (50%-owned)

Jakarta


Jakarta

• Existing commercial space of 80,000 sq. m

• Fourth Tower of 61,000 sq. m nearing completion

- approx. 88% committed - key tenants: Bank Permata,

SCB and Total


63 Ly Thai To (74%-owned)

Hanoi, Bangkok and Phnom Penh

22

Gaysorn (49%-owned)

Central Building (71%-owned)



Hanoi

Bangkok Phnom Penh

Embassy Site (100%-owned)

Beijing

23

• Total GFA: 131,000 sq. m

• Prestigious retail-led centre, including small luxury hotel

• Completion: - retail Q1 2015 - hotel Q3 2015

Wangfujing (95%-owned)


Beijing

24

• Total project cost: US$800m

• HKL interest: 30%

• Total GFA: 120,000 sq. m

• Prime Grade “A” office

• Completion: mid-2016


CBD (30%-owned)

Residential Property

• 140,000 sq. ft

• Two 47-storey towers

• 97 units

• 18 units sold of which 8 units handed over in 1H 2012

• 23 units remaining for future sale

Serenade


Hong Kong

• 13 units sold in 1H 2012, mostly for hand over in 2H

- 8 MO branded residences - 5 residential units

• 4 units remaining - 2 MO branded residences - 2 residential units

One Central Macau (47%-owned)

Macau


• Parvis (50% JV)

- completion 2H 2012

- 248 apartments

- 100% pre-sold

MCL Land (100%-owned)

Singapore


• D’Mira

- now scheduled for 2012

- 65 apartments

- 100% pre-sold


Singapore


• Ripple Bay

- completion 2015

- 679 apartments

- 81% pre-sold


Singapore


Singapore

Project No. of Units

Estimated Completion Date % Pre-sold

Parvis (50% JV) 248 2012 100% D’Mira 65 2012 100% Este Villa 121 2013 100% The Estuary 608 2013 100% Terrasse 414 2014 100% Uber 388 95 2014 82% Ripple Bay 679 2015 81%

• Launched projects

31



Singapore

• Development sites

32



Nob Hill 75 Units

111k sq. ft NSA

Palms@Sixth Avenue 32 Units

150k sq. ft NSA

Boon Lay Way 600 Units

545k sq. ft NSA

D’Mira

Uber 388

Este Villa

Parvis

The Estuary

Terrasse

Ripple Bay

• Boon Lay Way

- acquired May 2012

- cost: US$300m

- total GFA: 550,000 sq. ft

- adjacent to Jurong MRT station

- 600 apartments


Singapore


• Marina Bay Suites

- 221 units, 0.47m sq. ft

- 76% sold

- completion 2013

Marina Bay (33%-owned)

Singapore


Mainland China

Shenyang

Beijing

Chongqing Chengdu

Background Image from Google Earth


Bamboo Grove (50%-owned)

China, Chongqing

No. of Units

Total Sold Handed Over

Estimated Completion

Date Phase 4B High rise 784* 728* 474* Completed Phase 5A Low rise 640 443 - 2012 Phase 5B High rise 1,297 180 - 2014


* Excluding 579 units handed over in 2011

• JV with China Merchants Group

• Site area: 34 ha

• Total GFA: 1.5m sq. m

• Phase 1 – 1,255 townhouses and high rise apartments, completion 2013/2014

Landmark Riverside, DZS (50%-owned)

China, Chongqing

37


Bamboo Grove

Jialing River

Landmark Riverside




• Phase 1 – 324 townhouses, completion 2013,

38% pre-sold

Yorkville South (100%-owned)

China, Chongqing

38


Bamboo Grove

Jialing River

Yorkville South Landmark Riverside


• Second wholly owned site

• Site cost: US$600m



Yorkville North (100%-owned)

China, Chongqing

39

Yorkville South

Yorkville North

Light Rail Station (Under Planning)



• Site cost: US$600m



• Phase 1 – 1,300 high rise apartments, completion from 2014 onwards

Chengdu (50%-owned)

China, Chengdu

Chengdu



China, Shenyang

41

• Phase 2A & 2B

• 374 townhouses and low rise apartments

• 59% sold

• Completion: 2012

• Construction at Phase 2C commenced

Park Life (50%-owned)


China, Shenyang

42

• Phase 1A

• 236 townhouses and low rise apartments

• 67% sold

• Completion: 2012

One Capitol (50%-owned)


China, Shenyang

43

One Island

Background Image from Google Map

Hi-Speed Train Stn

One Capitol

Metro L#1

Hi-Speed Train Stn

To Airport

Metro L#2

City Downtown

Park Life

One Island (50%-owned)


• 72 units • Operating as serviced apartments

• 6 units handed over in 1H 2012 • 103 units currently leased

Maple Place (90%-owned)

China, Beijing

Central Park (40%-owned)


Results

1.

2011 Full Year

2012 Half-Year

2011 Half-Year

1,224 Revenue 478 755 (392) Net operating costs (120) (300) 832 Operating profit 358 455 76 Share of results of joint ventures 42 22 (67) Net financing charges (29) (36) (134) Tax (51) (74) (4) Non-controlling interests (2) (2) 703 Underlying profit 318 365 4,603 Non-trading items 308 3,440 5,306 Profit attributable to shareholders 626 3,805


Consolidated Profit and Loss Account (US$m)

Revenue (US$m)


1.

2011 Full Year

2012 Half-Year

2011 Half-Year

804 Commercial revenue 421 399 420 Residential revenue 57 356 1,224 Total 478 755

Operating Profit (US$m)


1.

2011 Full Year

2012 Half-Year

2011 Half-Year

By business 674 - Commercial 358 342 209 - Residential 27 135 (51) - Corporate expenses (27) (22)

832 Operating profit 358 455

Share of Results of Joint Ventures (US$m)


1.

2011 Full Year

2012 Half-Year

2011 Half-Year

85 Commercial property 45 38 79 Residential property 29 7 164 Operating profit 74 45 (30) Net financing charges (17) (17) (58) Tax and non-controlling interests (15) (6) 76 Total 42 22

Underlying Profit by Business (US$m)


1.

2011 Full Year

2012 Half-Year

2011 Half-Year

759 Commercial property 403 380 288 Residential property 56 142 (51) Corporate expenses (27) (22) 996 432 500 (97) Net financing charges (46) (53) (190) Tax (66) (80) (6) Non-controlling interests (2) (2) 703 Underlying profit 318 365

Consolidated Cash Flow (US$m)


1.

2011 Full Year

2012 Half-Year

2011 Half-Year

336 Operating activities (68) 286 (235) Investing activities (503) (97) (59) Financing activities (190) 35 (43) Others (28) (42) (1) Movement in net debt (789) 182 (2,358) Net debt at beginning of period (2,359) (2,358) (2,359) Net debt at end of period (3,148) (2,176)

Operating Activities (US$m)


1.

2011 Full Year

2012 Half-Year

2011 Half-Year

832 Operating profit excl. non-trading items 358 455 (57) Net interest paid (8) (32) (118) Tax paid (51) (41) 58 Dividends received from joint ventures 47 23 (373) Purchase of residential sites (380) (56) (6) Others (34) (63) 336 (68) 286

Investing Activities (US$m)


1.

2011 Full Year

2012 Half-Year

2011 Half-Year

(51) Major renovations capex (22) (21) (257) Funding of joint ventures (41) (157) Development expenditure - - Wangfujing, China (483) - (34) - Phnom Penh, Cambodia - - 111 Loan repayments from joint ventures 49 82 (4) Others (6) (1) (235) (503) (97)

Consolidated Cash Flow (US$m)


1.

2011 Full Year

2012 Half-Year

2011 Half-Year

336 Operating activities (68) 286 (235) Investing activities (503) (97) Financing activities (371) - Dividends paid by the Company (234) (231) 336 - Conversion of convertible bonds 21 285 (24) - Others 23 (19) (59) (190) 35 (43) Others (28) (42) (1) Movement in net debt (789) 182 (2,358) Net debt at beginning of period (2,359) (2,358) (2,359) Net debt at end of period (3,148) (2,176)

Consolidated Balance Sheet (US$m)


2011 Full Year

2012 Half-Year

2011 Half-Year

Investment properties 22,623 - Subsidiaries 23,333 21,380 3,132 - Joint ventures 3,294 3,095 25,755 26,627 24,475 Properties held for sale 1,521 - Subsidiaries 1,910 1,085 1,007 - Joint ventures 1,108 781 2,528 3,018 1,866 (1,160) Others (1,221) (716) 27,123 Gross assets (excl. cash) 28,424 25,625

Financed by: 24,764 - Total equity 25,276 23,449 2,359 - Net debt 3,148 2,176 27,123 28,424 25,625

Hongkong Land Cap Rates

31 June 2012 30 Dec 2011

• Hong Kong Office One & Two Exchange Square 4.20% 4.50%

• Hong Kong Retail Landmark Atrium 4.50% 4.50%

• Singapore Office MBFC 4.00% 4.00%


Residential 9%

By Activity

South East Asia 14%

Mainland China 7%

By Location

Commercial 91% Hong Kong 78%

Gross Assets at 30 June 2012

Macau 1%


• Gearing: 12%

• US$770m issued in Medium Term Notes, including US$500 million from 10-year public note issue

• Average tenor of debt: 7.3 years

• Average tenor of bank lines and bonds: 5.8 years

• Credit ratings at investment grade: - S & P: A-, outlook stable - Moody’s: A3, outlook stable

Treasury Management


2011 HK$ S$ US$ RMB Total

5.2 Committed lines 4.1 1.8 - - 5.9

3.3 Gross debt 2.9 1.0 - - 3.9

1.9 Available lines 1.2 0.8 - - 2.0

1.0 Cash - 0.1 0.6 0.1 0.8

2.9 Available liquidity 1.2 0.9 0.6 0.1 2.8

Note: (1) HK$ debt include US$ debt swapped into HK$ (2) S$ debt include HK$ debt swapped into S$

Liquidity at 30 June 2012 (All figures US$bn)

(1) (2)


Outlook

60

• Hong Kong portfolio well-positioned, with limited new supply

• 2nd half residential contribution will include profits from the completion of two projects in Singapore and from Serenade completions in Hong Kong

• Prime assets, market experience and strong balance sheet provide firm foundation



Documents

2012 Half-Yearly Results - Hongkong Land - Home · Hanoi, Bangkok and Phnom Penh . 22 . Gaysorn (49%-owned) Central Building (71%-owned) 2012 Half -Yearly R esults Background Image