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1
1H2008 Results1H2008 Results30 July 2008
2
Content
Financial Performance
Operations Review
Market Review and Outlook
Going Forward
2
3
Financial Performance
4
Financial Performance 1H08
(10.0)125.5113Net Profit
(4.6)166.6158.9Pre-tax Profit
15.3114.6132.1Operating Profit
13.3119.7135.6EBITDA
(29.9)654.6459Turnover
% Chg1H071H08$m
3
5
Financial Performance 2Q08
(16.3)
2.3
0.8
% Chg
6352.7Net Profit
Comments2Q072Q08$m
59.661Operating Profit
62.3EBITDA 62.8
359.2185.9Turnover
Lower due largely to completion of various trading projects and lower contributions from associated companies
Higher due to lower operating and administrative costs with the release of cost provisions no longer required for several completed projects and the write-back of over-provision of staff and related costs
(8.3)82.875.9Pre-tax Profit
(48.2)Lower due largely to completion of various trading projects in Singapore and overseas, partly offset by stronger performance from fund management
Lower due mainly to completion of several trading projects and lower contributions from associated companies, partly offset by contributions from newly launched projects and higher fund management income
6
Key Ratios
(36.4)15.49.8Annualised ROE (%)
(54.6)1.190.54Net Debt / Equity Ratio
39.72.243.13NTA / Share ($)
(9.8)17.415.7EPS (¢)
% Chg1H071H08
4
7
Net Profit – By Business Segment
Net Profit 113 125.5 (10.0)
Comments% Chg
1H071H08$m $mBusiness Segment
Property Investment 15.2 21.1 (28.0)
Property Trading 79.1 111.6 (29.1)
Others 3.5 (9.8) nm
Hotels / Resorts (1.6) (0.8) nm
Fund Management 9.4 3.4 176.5
Lower due to completion of several projects and lower contribution from Marina Bay Residences and Reflections at Keppel BayLower due to the cessation of profit contribution from ORQ and write-back of tax provision in 1Q07
Higher due to strong performance by Alpha and higher fees received by K-REIT Asia from an enlarged portfolio
Improvement due to write-back of over-provision of staff and related costs and absence of revaluation loss for the Group’s interest rate hedging instruments
Sub-total 105.6 125.5 (15.9)Gain on purchase of additional interest in an associate 7.3 - nm
8
Net Profit – By Geographical Segment
Comments% Chg
1H071H08$m %
80.2 75.9Higher due mainly to stronger performance from Alpha and K-REIT Asia
2.662.378.2Singapore
25.4 24.1 Lower due largely to completion of several overseas residential projects(46.3)37.747.3Other Countries
%$mGeographicalLocation
Sub-total 105.6 100 125.5 100 (15.9)Gain on purchase of additional interest in an associate
100 (10.0)100125.5Net Profit 113
7.3 - - - nm
5
9
Notes on Profit Recognition - Singapore
Park Infinia at Wee Nam (486 units) Profit recognition of $23.1m in 1H0892% sales, 100% completion as at end-Jun 08
The Suites at Central (157 units) Profit recognition of $16.6m in 1H08100% sales, 66.3% completion as at end-Jun 08
Marina Bay Residences (428 units)Profit recognition of $6.2m in 1H08100% sales, 24.2% completion as at end-Jun 08
The Sixth Avenue Residences (175 units)Profit recognition of $3.7m in 1H08100% sales, 30.1% completion as at end-Jun 08
10
Notes on Profit Recognition - Overseas
Villa Riviera, Shanghai (168 units)• Profit recognition of $3.7m in 1H08
- 100% sales, 97% completion (Ph 1 – 42 units) as at end-Jun 08- 70.5% sales, 94.7% completion (Ph 2 – 46 units) as at end-Jun 08- 2.5% sales, 55.5% completion (Ph 3 – 80 units) as at end-Jun 08
8 Park Avenue, Shanghai (946 units) • Profit recognition of $3.9m in 1H08
- 100% sales, 100% completion (Ph 1 & 2 – 456 units) as at end-Jun 08- 96.3% sales, 89.1% completion (Ph 3 – 96 units) as at end-Jun 08
Elita Promenade, Bangalore (1,573 units) • Profit recognition of $4m in 1H08
- 93.7% sales, 82.8% completion (Ph 1 – 944 units) as at end-Jun 08- 43.6% sales, 36.4% completion (Ph 2 – 629 units) as at end-Jun 08
The Seasons, Beijing (1,859 units)• Profit recognition of $4.8m in 1H08
- 100% sales, 100% completion as at end-Jun 08
6
11
Debt Management
Prudent capital management = Strong balance sheet
85.65.29.65Interest Cover (x)
(20.6)3.42.7Avg Interest Rate of Borrowings (%)(54.6)1.190.54Net Debt / Equity (x)
(38.0)2.291.42Net Debt ($b)
40.41.612.26Equity ($b)% Chg1H071H08
(70.2)4714Fixed Rate Debt (%)
Sources of Funds
Cash ReservesBank Facilities
Central FinancingMTN Programme
Good financing capacity
12
Operations Review
7
13
Singapore Residential
Iconic developments to be launched
Total : 1,129 unitsPhase 1 fully sold
Reflections at Keppel Bay Marina Bay Suites
Total : 221 units
14
Singapore Commercial MBFC continues to attract
pre-commitment ahead of completion
Marina Bay Financial Centre
Marina Bay Financial CentreOverall pre-commitment : 60%
Ph 1 (1.6m sf) completing in 2010 :
- 64% pre-committed
Ph 2 (1.3m sf) completing in 2012 :
- 55% pre-committed
8
15
Singapore Commercial – K-REIT
Annualised DPU :11.1 cents* for 1H08
Aggregate leverage down to 27.7%
Post-rights issue:
647.2m units, up from 250.2m units
KLL’s stake : 43.6%
Committed occupancy : 100% as at
end-Jun 08One Raffles Quay
K-REIT Asia continues to outperform
* Based on weighted average no. of units in issue
16
Overseas Residential
Sold : 93% of 350launched units
Residential sales supported by good underlying demand
Sold : 76% of 111 launched units
Elita Garden VistaKolkata, India
Villa RivieraShanghai, China
The EstellaHCMC, Vietnam
Sold : 283 units
9
17
Overseas Residential
Steady sales for residential township developments
Sold : 91% of 191 launched units
Central Park CityWuxi, China
Jakarta Garden CityJakarta, Indonesia
Sold: 96% of 728 launched units
18
Overseas Residential Acquired adjoining 10-ha land in Shenyang
for integrated township development
Township in Shenyang
Combined land area : 34-ha
Total GFA : 677,000 sm
Total units : 5,600 homes
Phase 1 sales launch : 2009
Foray into first marina lifestyle residential Foray into first marina lifestyle residential development in Zhongshandevelopment in Zhongshan
Waterfront development, Zhongshan
KLL’s stake in JV: 80%Total land area : 82-ha (acquired 20-ha)
Total GFA : 408,000 smTotal Units :
No. of Berths : 550
- 305 villas - 1,350 condos- 1,200 serviced apartments
10
19
Overseas Residential - Evergro
Proceeds from rights issue to expand China’s operations
Rights issue of about 761.8m new shares at 3:2 rights ratio to raise about $137mProceeds to be used to acquire new sites and develop existing projects
Stamford City, JiangyinTotal : 1,213 units
Sold : 57% of 150 launched units
Stamford City, Jiangyin Summer Ville, Changzhou
Steady sales from residential projects :
Summer Ville, ChangzhouTotal : 566 units
Sold : 71% of 566 launched units
20
Fund Management
Total AUM grows to S$9.1 billionTotal AUM grows to S$9.1 billion
Alpha Asia Macro Trends Fund raised S$1.6bn
US$bn
* When fully leveraged and invested
Total Assets Under Management *
0.01.02.03.04.05.06.07.08.0
2004 2005 2006 2007 1H08
Alpha K-ReitUS$6.7
S$9.1
US$4.0
S$6.1US$2.3
S$3.7US$1.4
S$2.3US$0.6
S$1.0
*When fully leveraged and investedFocus on prominent trends in Asia
Target markets :
Developed
- Singapore, Japan, Taiwan, South Korea and Hong Kong
Fastest emerging
- China, India and Vietnam
K-REIT AsiaPortfolio Value : S$2.1bn
Alpha Investment PartnersTotal AUM : S$7bn
11
21
Recent Awards
BT Corporate Transparency Index (12 May 2008)Ranked 3rd out of 703 companies
ACCA Singapore Environmental and Social Reporting Awards 2008Finalist for 3rd year
Finance Asia Best Managed Companies Poll 2008Best Managed Company (5th)Best Corporate Governance (4th)Best Investor Relations (8th)
22
FIABCI Prix d’ Excellence Awards 2008Winner in the Office category : One Raffles Quay
Recent Awards
World Travel Awards 2008Indonesia’s Leading Resort : Hotel Sedona Manado Myanmar’s Leading Hotel :
- Sedona Hotel Yangon - Sedona Hotel Mandalay
The Guide Awards 2008Best Performance Luxury Apartments:
- Sedona Suites Hanoi - Sedona Suites HCMC
12
23
Green Awards
BCA Green Mark Awards (2008) – Platinum
Ocean Financial Centre : First office building in
Singapore to achieve Platinum Award
BCA Green Mark Awards (2008) – Gold
MBFC Phase 1 (Commercial)
Reflections at Keppel Bay
24
Market Review and Outlook
13
25
Singapore Residential Market
Market affected by US subprime problems
High-end price consolidatingMid-tier / mass market stableLow transaction volume
Good fundamentals and economic growth
Market direction substantially influenced by how soon the
US mortgage crisis can be stabilised
Fundamentals support market
26
Singapore Office Market
Balanced demand and supply expected
Source: *CBRE
Moderate rental growth in 1H08
Average 2m sf new supply per
annum over next few years23% pre-committed
2.62m sf 2.60m sf2.42m sf
0.87m sf
Mill
ion
sf 1.53m sf
Annual average demand: 1.62m sf*
Future Supply of Office Space
0.40
1.021.20
2.54
1.72
0.06
0.39 0.39
0.06
0.41
0.12
1.03 0.70
0.09
0.2
0.40.6
0.8
1.0
1.2
1.4
1.6
1.8
2.02.2
2.42.6
2.8
2008 2009 2010 2011 2012
0.39More balanced demand and
supply in the next few years
Rentals and capital values
expected to have steady
growth
14
27
Overseas Residential Market
Strong fundamentals underpin residential market
Underlying market fundamentals remain healthy :
Rising affluence Economic growth Growing middle class
Favourable demographics Urbanisation trends
Home Ownership Aspirations
5.9%7.7%6.9%9.8%FY 08 GDP growth forecasts*6.3%8.8%6.5%10.6%1H 08 GDP growth
IndonesiaIndiaVietnamChina
Economic growth moderating but still strong
Source : * EIU
28
Overseas Residential Market
Government policies support market stability
Countries generally face high inflation, slower growth and weaker property markets
Governments implemented monetary and fiscal measures to fight inflation
Fundamentals of the economies are strong and continue to attract goodFDI inflows
Less well-capitalised developers may run into difficulties
Landbanking opportunities
China
Vietnam
Indonesia
India
15
29
Going Forward
30
Growth Strategy
Closely monitor market conditions to : Look out for new opportunities for acquisitions in Singapore and overseas
Time project launches
Grow township division and pursue lifestyle development projects
Explore new markets such as Middle East and Russia
Presence of 6 township developments in China, Vietnam and Indonesia
Waterfront residential cum marina development in Zhongshan
16
31
Singapore Residential
Monitor market conditions for possible launches in 2H08Monitor market conditions for possible launches in 2H08
Units to LaunchExpected Launch Date Projects
221Marina Bay Suites (33.3% stake)
400Reflections at Keppel Bay (30% stake) *
2H08
2H08Park Infinia at Wee Nam * 2H08 52
33The Tresor *15The Promont 2H08
Total 77756
2H082H08Madison Residences
The Tresor Madison Residences Park Infinia at Wee Nam The Promont
* Planned balance units
32
Singapore Commercial
Draw on robust demand for office spaceDraw on robust demand for office space
KLL's Office Occupancy Rates
81.1%
89.6% 91.3%94.8% 95.0%
70%75%
80%85%90%
95%100%
2004 2005 2006 2007 1H08
Improve pre-commitment
level at MBFC
Resilient portfolio with
potential for positive rent
reversions
17
33
Overseas Residential
TOTAL 1,865 3,705 4,859
Villa Riviera, Shanghai* 84 - -The Botanica, Chengdu* 653 1,000 1,000
Project Launch Schedule - China 2008 2009 20108 Park Avenue, Shanghai * - - 130
The Arcadia, Tianjin* 100 31 -Central Park City , Wuxi – Ph 1*, 2^,3^ 759 801 829Stamford City, Jiangyin* 269 265 594Shenyang Township^ - 1,000 1,322Residential Devt, Nanhui, Shanghai^ - 608 699 Integrated Marina Lifestyle Devt, Zhongshan^ - - 285
* Balance Units ^ New Launches
Stamford City, Jiangyin The Arcadia, Tianjin Villa Riviera, Shanghai
34
Overseas Residential
* Balance Units ^ New Launches
Project Launch Schedule 2008 2009 2010Vietnam
Saigon Sports City (Ph 1), HCMC ^ - - 300The Estella, HCMC * 367 443 300Waterfront condo, Binh Thanh District, HCMC ^ - - 350Waterfront condo, District 7, HCMC ^ - 480 680Waterfront township (Ph 1), Dong Nai Province ^ - - 300Prime condo, District 2, HCMC ^ - 200 410Villa devt., District 9, HCMC ^ - - 90Prime condo, District 9, HCMC ^ - - 300Luxury villa devt., District 9, HCMC ^ - 72 29
ThailandVilla Arcadia at Srinakarin, Bangkok * 41 50 50Villa Arcadia at Watcharapol, Bangkok * 40 40 40
IndiaElita Promenade, Bangalore * 350 - -Elita Horizon, Bangalore ^ 370 401 201Elita Garden Vista, Kolkata * 634 227 90
IndonesiaJakarta Garden City, Jakarta * 448 618 639
Middle EastSeafront condo devt., Jeddah, Saudi Arabia ^ 180 300 300
PhilippinesPalmdale Heights (Ph 2), Pasig City ^ 316 474 474SM-KL residential devt., Manila ^ - 430 -
TOTAL 2,746 3,735 4,553
19
37
(36.4)15.49.8Annualised ROE (%)
(54.6)1.190.54Net Debt / Equity Ratio (x)
39.72.243.13NTA / Share ($)
(9.8)17.415.7EPS (¢)
(36.1)37.724.1Overseas Earnings (% of PATMI)(10.0)125.5113.0*PATMI ($m)
(9.0)166.6151.6Pre-tax Profit ($m)
15.3114.6132.1Operating Profit ($m)
(29.9)654.6459.0Turnover ($m)
% Chg1H20071H2008
1H08 Financial Highlights
* Includes a gain of 7.3m arising from excess subscription of K-REIT Asia’s rights issue
38
Attributable AttributableLand Area GFA
(%) (sf) (sf)
The Tresor * Duchess Rd 100% 999-yr 80,504 112,689 62Reflections at Keppel Bay * Keppel Bay 30% 99-yr 269,930 624,521 1,129Marina Bay Suites Marina Bay 33.3% 99-yr 19,015 156,462 221The Promont Cairnhill Circle 100% Freehold 11,183 31,310 15Madison Residences Bukit Timah Rd 100% Freehold 49,168 110,810 56Keppel Bay Plot 3 Keppel Bay 30% 99-yr 125,366 152,999 307Keppel Bay Plot 4 Keppel Bay 11.7% 99-yr 36,114 40,300 234Keppel Bay Plot 6 Keppel Bay 30% 99-yr 141,429 67,813 94Total 732,709 1,296,904 2,118
Project Location Tenure Total Units
KLL's Stake
* Includes units and area sold
Singapore Residential Landbank
20
39
Project Location Stake Land Area Total GFA Remaining Area Remaining Units (%) (sm) (sm) For Sale (sm) For Sale
8 Park Avenue Shanghai 99% 33,432 133,393 65,565 * 396 *Park Avenue Central Shanghai 99% 28,488 99,708 99,708 708Villa Riviera Shanghai 99% 153,726 53,796 22,808 * 84 *The Arcadia Tianjin 100% 127,970 62,698 57,980 * 131 *Central Park City Wuxi 49.7% 352,534 670,460 # 553,895 ^ 4,259The Botanica Chengdu 44.1% 419,775 1,036,747 ^ 650,030 ^ 5,320 ^Stamford City Jiangyin 70.6% 82,987 245,003 231,296 1,128Shenyang township Shenyang 100% 338,287 675,488 665,953 5,651Residential devt.,Nanhui Shanghai 99% 264,090 332,906 # 314,340 ^ 3,000 ^
Integrated Marina Lifestyle devt. Zhongshan 80% 827,000 408,274 402,774 2,855Total 2,628,289 3,718,473 3,064,349 23,532
Note: * Excludes area and units sold^ Excludes commercial area# Includes commercial area
China Residential Landbank
40
Country Site KLL's Total Land Total GFA Remaining Area Remaining Stake Area (sm) (sm) For Sale (sm) Units For Sale
India Elita Promenade, Bangalore 51% 96,618 193,237 53,873 * 350Elita Horizon, Bangalore 51% 79,177 150,680 150,680 1,138Elita Garden Vista, Kolkata 37.7% 93,998 195,355 149,804 * 951
Sub-total 269,793 539,272 354,357 2,439Indonesia Jakarta Garden City, Jakarta - Ph 1 144,510 173,412 119,719 * 816
Jakarta Garden City - Remaining Phases 758,428 1,283,874 1,068,561 8,186Sub-total 902,938 1,457,286 1,188,280 9,002
Thailand Villa Arcadia at Srinakarin, Bangkok 45.5% 159,706 84,440 76,984 * 242Villa Arcadia at Watcharapol, Bangkok 66.7% 124,912 68,314 82,104 * 261
Sub-total 284,618 152,754 159,088 503Vietnam Saigon Sports City, HCMC 90% 640,476 789,222 ^ 442,042 3,000
The Estella, HCMC 55% 47,906 279,800 ^ 177,230 * 1,110Waterfront condo, Binh Thanh District, HCMC 60% 17,428 87,140 87,140 549Waterfront condo, District 7, HCMC 75% 85,118 408,566 ^ 340,472 2,394Waterfront township, Dong Nai Province 50% 3,667,127 1,979,727 1,576,190 10,434Prime condo, District 2, HCMC 60% 51,000 244,800 ^ 166,464 1,500Villa Devt, District 9, HCMC 55% 129,739 53,510 71,356 204Condo Devt, District 9, HCMC 55% 68,442 273,760 232,702 1,939Luxury villa Devt, District 9, HCMC 60% 97,000 33,950 33,950 101
Sub-total 4,804,236 4,150,475 3,127,546 21,231Middle East Seafront condo devt., Jeddah, Saudi Arabia 51.0% 36,236 253,652 253,652 1,000
Sub-total 36,236 253,652 253,652 1,000Philippines Palmdale Heights (Ph 2), Pasig City 30.9% 15,976 62,751 62,751 1,264
SM-KL residential Devt., Manila 24.2% 7,068 56,000 56,000 430Sub-total 23,044 118,751 118,751 1,694
Total 6,320,865 6,672,190 5,201,674 35,869
51%
*Excludes area and units sold / ^Includes commercial area
Other Overseas Residential Landbank
21
41
* Office tower to be demolished upon completion of Ocean Financial Centre
KLL's TotalStake NLA (sf)
Completed Ocean Towers* 75.7% 229,481Equity Plaza 64.6% 249,165Keppel Bay Tower 11.7% 387,676HarbourFront Tower One 11.7% 370,551HarbourFront Tower Two 11.7% 154,688Subtotal 1,391,561
Under Development Marina Bay Financial Centre (Phase 1) 33.3% 1,620,000Marina Bay Financial Centre (Phase 2) 33.3% 1,300,000Ocean Financial Centre 75.7% 850,000Subtotal 3,770,000
Total 5,161,561
Building
Singapore Commercial Landbank
42
Singapore Residential
New Downtown Line (DTL)Values of properties nearby expected to rise*12 MRT stations for Bukit Timahby 2015
Developments to benefit from new DTL
Source: DTL map from LTA / *JLL
Duchess
Projects Location Station
The Tresor Duchess Rd
Bukit Timah RdMadison Residences
KLL’s developments to benefit from DTL
Park Infinia Wee Nam Rd NewtonInterchange
Botanic Gardens /Stevens
22
43
Singapore Office Market
Healthy take-up at MBFC shows strength of leasing market
Tenant NLA (sf)Phase 1 1,026509Standard Chartered 513,045Natixis 65,165Wellington Inv Mgt 21,786Amex 49,934Barclays 99,998Pictet 24,757Icap 32,399Others 219,425Phase 2 - DBS 690,448
Total pre-commitment 1,716,957 60%
64%
55%
44
Singapore Office Market
Rentals and occupancy continue to rise
Average Grade A rental and occupancy : $18.80 psf and 99.4% (2Q08)*Grade A rents rose moderately at 9.6% in 1H08 Singapore prime office rents cheaper than Hong Kong and Japan
Source: *CBRE
A v e r a g e Pr ime R e n ta ls ( $ p s f p m ) A v e ra g e G r a d e A Re n ta ls ( $ p s f p m ) C o re CB D O c c u p a n c y
30 Sep 31 Dec2006
31 Mar 30 Jun 30 Sep 31 Dec2007
31 Mar 30 Jun 2008
6.90 7.81 8.6010.80
12.6015.00 16.00 16.10 17.00 17.50
15.50
7.608.73
10.6012.40
14.9017.15
18.65 18.80 19.00 20.00 19.00
97.6% 97.1%95.5% 97.6%97.1%97.3%96.8%96.4%
$4
$6
$8
$10
$12
$14
$16
$18
$20
30-Sep-06 31-Dec-06 31-Mar-07 30-Jun-07 30-Sep-07 31-Dec-07 31-Mar-08 30-Jun-08 2008E 2009E 2010E0%10%20%
30%40%50%60%70%80%90%100%
Average Prime Rentals ($psf pm) Average Grade A Rentals ($psf pm) Core CBD Occupancy
Forecast Rents: Prime & Grade A
23
45
Singapore Office Market
Singapore’s transformation into a business hub supports office demand
Greater presence of financial institutions and legal and accounting firms
Wealth management continues to grow
Source : Nomura Singapore
Growth of Singapore’s Asset Management Industry1998 2002 2006 2009E
Assets under management (S$bn) 151.0 344.0 891.0 1,389
Industry share of GDP (%) 1.0 2.0 3.8 4.5
AUM / GDP (%) 109.2 217.7 410.6 489.0
Source : Nomura Singapore
46
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.