A Record for Listed Singapore Real Estate Companies Exceeded S$14.3 Billion of REIT and Fund
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Achieved Exceeded Created More Attained 19% Expanded to S$1.02 Billion S$14.3 Billion Than S$17 Billion Annual Growth More Than 90 Profi t – of REIT and of Value for Rate in Total Cities in Over A Record Fund Assets Shareholders Shareholder 20 Countries for Listed of CapitaLand Returns Since Singapore Group Listed Inception Real Estate Entities Companies CapitaLand sees beyond. CapitaLand thinks like an entrepreneur, using its core strengths to great advantage. Cap) Corp—L 16.indd 1 3/21/07 6:44:35 PM enter enterprising We do not merely enter a market but strive to be enterprising in the markets we enter. share shareholders We’re concerned not just with share prices, but share the concerns of our shareholders and stakeholders too. man manage It’s not how many people we put to man the project, but how we effectively manage the business. land CapitaLand We have turned land into a form of capital. CapitaLand capitalises on its considerable real estate asset base to chalk up another sterling year, with a host of activities that bespeaks a spirit of innovation, creativity, and most of all, entrepreneurship. Corporate Profile CapitaLand is one of the largest listed real estate companies in Asia. Headquartered in Singapore, the multinational company’s core businesses in real estate, hospitality and real estate fi nancial services are focused in gateway cities in Asia Pacifi c, Europe and the Middle East. The company’s real estate and hospitality portfolio spans more than 90 cities in over 20 countries. CapitaLand also leverages on its signifi cant real estate asset base and market knowledge to develop real estate fi nancial products and services in Singapore and the region. The listed subsidiaries and associates of CapitaLand include The Ascott Group, Australand, CapitaMall Trust, CapitaCommercial Trust, Ascott Residence Trust, CapitaRetail China Trust and Quill Capita Trust. CONTENTS Our Reach 12 CapitaLand Residential 74 Letter to Shareholders 14 CapitaLand Commercial and Integrated Development 80 6-Year Share Price Performance 23 CapitaLand Retail 86 Financial Highlights 24 CapitaLand Integrated Leisure, Financial Calendar 25 Entertainment and Conventions 92 Board of Directors 26 CapitaLand Financial 94 Corporate Directory 32 The Ascott Group 100 International Advisory Panel 33 Raffl es Holdings 104 Group Businesses 34 Performance Review 106 Council of CEOs 35 Economic Value Added Statements 116 Corporate Offi ce 39 Value Added Statements 117 Corporate Governance 40 Portfolio Details 118 Risk Assessment and Management 50 Portfolio Analysis 127 Innovation, Creativity, Entrepreneurship 52 5-Year Financial Summary 128 Investor & Media Relations 53 Statutory Accounts 129 Human Resource 54 Other Information 244 Corporate Social Responsibility 56 Shareholding Statistics 248 InfoNet 58 Notice of Annual General Meeting 250 Year in Brief 59 Proxy Form 255 Awards & Accolades 2006 72 Notes to Proxy Form 256 10 Cap) Corp—L 16.indd 10 3/27/07 4:17:14 PM VISION 2010 A world-class entrepreneurial, prosperous and lasting real estate company led and managed by people with core values respected by the business and social community. Ranked among the top ¿ ve real estate companies in Asia, reputed for its innovative and quality real estate products and services. A company with a strong global network of long-term investors and blue-chip partners. A company which attracts, develops and retains a diversity of talents. A company which delivers consistently above-market total shareholder returns. MISSION To build a world-class real estate company with international presence that: Creates sustainable shareholder value. Delivers quality products and services. Attracts and develops quality human capital. CREDO Building for People to Build People Building People to Build for People 11 Cap) Corp—L 16.indd 11 3/21/07 8:17:39 PM Our Reach Presence in more than 90 cities in United Kingdom over 20 countries Germany Belgium Global Presence France Spain ASIA Xinxiang Philippines Russia PACIFIC Yangzhou Manila Moscow Yibin St Petersburg Australia Yiyang Singapore Brisbane Zhangzhou Spain Bahrain Hobart Zhanjiang South Korea Barcelona Melbourne Zhaoqing Seoul Qatar Perth Zhengzhou United UAE Sydney Zibo Thailand Kingdom Bangkok London China India Pattaya Anyang Bangalore MIDDLE Beijing Chennai Vietnam EAST Changsha Hyderabad Hanoi Chengdu Mumbai Ho Chi Minh UAE Chongqing City Dubai Dalian Indonesia Deyang Jakarta EUROPE Bahrain Dongguan Surabaya Manama Foshan Belgium Guangzhou Japan Brussels Qatar Hangzhou Fukuoka Doha Hong Kong Hiroshima France Huhehaote Hokkaido Aix-en- Huizhou Kobe Provence Kunshan Kyoto Bordeaux Macau Nagoya Cannes Maoming Nishinomiya Ferney Voltaire Mianyang Osaka Grenoble Nanchang Saga Lille Ningbo Tokyo Lyon Quanzhou Marseille Shanghai Malaysia Montpellier Shenzhen Johor Nice Suzhou Kuala Lumpur Paris Tianjin Kuching Strasbourg Weifang Penang Toulouse Wuhan Wuhu New Zealand Germany Xi’an Auckland Berlin 12 Cap) Corp—L 16(reproof).indd 12-13 3/24/07 5:38:47 AM Russia South China Korea Residential Japan Commercial Retail Financial Services India Serviced Residences Philippines Integrated Leisure, Thailand Vietnam Entertainment and Malaysia Conventions Future Presence SINGAPORE Indonesia Australia New Zealand 13 Cap) Corp—L 16(reproof).indd 12-13 3/24/07 5:38:47 AM Letter to Shareholders OVERVIEW In 2006, the Group achieved a record pro¿ t after tax and minority interests (PATMI) of S$1.02 billion, which represents a 35.6% increase over 2005’s pro¿ t of S$750.5 million. What is more spectacular about 2006’s pro¿ t is that it was achieved despite the absence of gains from strategic divestments. In 2005, divestment gains from the sale of hotel business and property services amounted to S$424.8 million. 15 Cap) Corp—L 16.indd 15 3/21/07 8:32:23 PM Scotts HighPark, Singapore (Expected TOP: 2009) In 2006, our core business units During the year, the Group was active in its capital – residential, commercial and management. Our ownership interest in Hotel Inter-Continental was sold for a gain of S$44.1 million. The Ascott Group integrated development, retail, divested Ascott Mayfair, resulting in a gain of S$52.8 million. ¿ nancial and serviced residences Raffl es Holdings was delisted with additional payouts – recorded strong ¿ nancial results, to its shareholders. The Raffl es City transaction in Singapore was effectively and efficiently managed such that we while at the same time invested extracted strong fi nancial and strategic benefi ts for all in long-term projects, penetrated entities involved. The transaction also positioned the new areas of business, and forged Group’s listed businesses namely, CapitaCommercial Trust and CapitaMall Trust, for future growth. CapitaLand issued partnerships for sustainable growth. a S$430 million 10-year convertible bond, our second convertible bond since 2002. The fi nancial publication, The Directors are pleased to propose a fi rst and fi nal IFR Asia, recognised it as “Singapore’s Equity Deal of the dividend of 12 cents per share comprising an ordinary Year” for both the 10-year period which is the longest dividend of 7 cents and a special dividend of 5 cents tenure in Asia (ex-Japan), and the highest conversion for the fi nancial year ended 31 December 2006. premium by a real estate company in the region. Creating Shareholder Value Pioneering and Setting the Pace For our shareholders, CapitaLand Limited generated In 2006, our core business units – residential, commercial total shareholder returns of S$8.8 billion in 2006, and integrated development, retail, fi nancial and serviced representing a total return of 87% for the year. Since residences – recorded strong fi nancial results, and at the same its formation in 2000, CapitaLand Group has created time invested in long-term projects, penetrated new areas a total value of S$17.5 billion for its shareholders. of business, and forged partnerships for sustainable growth. 16 Cap) Corp—L 16(reproof).indd 16 3/24/07 5:28:18 AM Freshwater Place, Melbourne Residential in Hong Kong-listed Lai Fung Holdings, which has about In Singapore, we sold over 950 homes worth S$1.23 billion, one million sq m of landbank, mainly in Shanghai and the averaging S$1.29 million per unit. We broke new ground in Pearl River Delta. We entered into partnerships that will designing and building homes. We led the market with the enable us to move quickly into China’s second-tier cities to creation of distinctive garden homes. We introduced meet increased demand for local housing. For western the ‘Penthouse Series’ apartments which were designed China, we formed a 50-50 joint venture with Chengdu Zhixin as high-rise tropical ‘black and white’ bungalows with Industrial Co., a leading developer in the Sichuan Province. huge verandas. In addition, we created a series of high-mid We also took a 29.75% stake in Central China Holdings end apartments that feature flexible layouts to cater to Group, an established developer operating in 16 out of 18 the evolving lifestyles of today’s multi-generation families. cities in Central China’s Henan Province. In addition, we Scotts HighPark, The Metropolitan Condominium and continued to expand from Shanghai into Hangzhou, and from the fi nal phase of RiverGate were each pitched at different Guangzhou into Foshan. We also added two residential market segments. The Orchard Residences, a super- development projects to our Beijing portfolio. Since 1994, luxury residential development at Orchard Turn which we have completed more than 8,000 homes across China is a joint venture project between CapitaLand and Hong and currently have a pipeline to build about 35,000 Kong’s Sun Hung Kai Properties Limited, will be completed homes together with our partners. in late 2009. Meanwhile, we stepped up efforts to augment Our listed Australian subsidiary, Australand, remains a our landbank in this high-end segment, one example being key contributor to our business.