Building Real Estate of the Future
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BUILDING REAL ESTATE OF THE FUTURE CapitaLand Limited Annual Report 2016 Vision Core Values To be a leading global enterprise that enriches people and Respect: We believe in mutual trust and respect at all levels. communities through high-quality real estate products and This is fundamental to a high-performance culture that services. embraces diversity and teamwork as One CapitaLand. Integrity: We embrace the highest standards of integrity. Mission We have the courage to do what is right, and earn the trust of all our stakeholders. Customers: We create great customer value and experiences through high-quality products and services. Creativity: We constantly innovate to enhance value and stay ahead. People: We develop high-performing people and teams through rewarding opportunities. Excellence: We pursue excellence and persevere in everything we do. Investors: We deliver sustainable shareholder returns and build a strong global network of capital partners. Communities: We care for and contribute to the economic, environmental and social development of communities. D1MENSION, Ho Chi Minh City, Vietnam BUILDING REAL ESTATE OF THE FUTURE A leading real estate developer in Asia, CapitaLand remains focused on delivering quality developments that enrich people and build communities. Leveraging our deep expertise and vast scale, we have established a global footprint in developed and emerging markets, with a diversified portfolio spanning integrated developments, shopping malls, serviced residences, offices and homes. Our commitment to excellence extends beyond championing sustainability throughout our developments to harnessing technology, as we shape structures that embody the evolving needs of cities in an increasingly urbanised world. Contents Corporate Governance & Overview Transparency Sustainability 02 Global Presence 14 Board of Directors 63 Sustainability Management 04 2016 Highlights 20 Senior Management 05 Significant Scale Achieved 24 Corporate Governance Report 06 5-Year Financial Summary 52 Enterprise Risk Management 07 Group Business Structure 55 Investor & Media Relations 08 Message to Shareholders 58 Awards & Accolades 12 Year in Brief 2016 Financials & Additional Business Review Portfolio Details Information 66 Performance Overview 79 Integrated Developments 97 Statutory Accounts 73 CapitaLand Singapore 81 Shopping Malls 227 Economic Value Added 74 CapitaLand China 84 Serviced Residences Statement 75 CapitaLand Mall Asia 88 Commercial / Car Park 228 Value Added Statement 76 The Ascott Limited 89 Self Storage 229 Supplemental Information 77 Regional Investments 90 Residential 230 Shareholding Statistics 78 CapitaLand Investment 232 Contact Details Management Corporate Information CapitaLand Limited 02 Annual Report 2016 Global Presence Corporate Profile CapitaLand is one of Asia’s largest real estate companies. Headquartered and listed in Singapore, it is an owner and manager of a global portfolio worth more than S$78 billion as at 31 December 2016, comprising integrated developments, United States of America shopping malls, serviced residences, offices, homes, real estate investment trusts (REITs) and funds. Present across more than 130 cities in over 20 countries, the Group focuses on Singapore and China as core markets, while it scales up presence in markets such as Vietnam. CapitaLand’s competitive advantage is its significant asset base and extensive market network. Coupled with extensive design, development and operational capabilities, the Group develops and manages high-quality real estate products and services. It also has one of the largest investment management businesses in Asia and a stable of five REITs listed in Singapore and Malaysia – CapitaLand Mall Trust, CapitaLand Commercial Trust, Ascott Residence Trust, CapitaLand Retail China Trust and CapitaLand Malaysia Mall Trust. America Hefei Suzhou Countries United States of America Hong Kong Taiyuan New York Honghezhou Tianjin Hotan Weifang 28 Asia Pacific Huanggang Wuhan Australia Huhhot Wuhu Hobart Huzhou Wuxi Melbourne Jingmen Xi’an Cities Perth Kunshan Xiamen Sydney Lechang Xuzhou Leshan Yangzhou 138 Cambodia Lishui Yibin Phnom Penh Macau Yinchuan and 20 cities with Macheng Yiyang CapitaLand Hope Schools China Maoming Zhangzhou Anyang Mianyang Zhanjiang Beijing Mianzhu Zhaoqing Changsha Nanchang Zhengzhou Chengdu Nanjing Zibo Chifeng Nantong Zigong Chongqing Ningbo Integrated Developments Dalian Pu’er India Shopping Malls Deyang Qingdao Ahmedabad Dongguan Qingyuan Bangalore Serviced Residences Duolun Quanzhou Chennai Offices Foshan Rizhao Cochin Homes Guangyuan Shanghai Gurgaon Guangzhou Shangluo Hyderabad Investment Fund Management Haikou Shaoxing Jalandhar Raffles City Developments Hangzhou Shenyang Mangalore Schools Harbin Shenzhen Mumbai Overview Corporate Governance & Transparency Sustainability Business Review Portfolio Details Financials & Additional Information 03 United Kingdom Ireland Belgium Germany France Georgia Turkey Spain South Korea Japan Bahrain China Qatar United Arab Emirates Saudi Arabia Oman Myanmar Laos Philippines Thailand Cambodia India Vietnam Malaysia Singapore Indonesia Australia Mysore Kuching Ho Chi Minh City Spain Nagpur Miri Nha Trang Barcelona Sri City Penang Tan An Udaipur Petaling Jaya Viet Tri United Kingdom Putrajaya London Indonesia Shah Alam Europe Bali Belgium Gulf Cooperation Council Bandung Myanmar Brussels Countries and Others Jakarta Yangon Saudi Arabia Surabaya France Al Khobar Yogyakarta Philippines Cannes Jeddah Cebu Ferney-Voltaire Makkah Japan Manila Grenoble Riyadh Fukuoka Lille Hiroshima Singapore Lyon Bahrain Kobe Singapore Marseille Manama Kyoto Montpellier Nagoya South Korea Paris Oman Osaka Busan Strasbourg Muscat Sapporo Seoul Toulouse Sohar Tokyo Thailand Georgia Qatar Laos Bangkok Tbilisi Doha Vientiane Pattaya Sri Racha Germany Turkey Malaysia Berlin Istanbul Cyberjaya Vietnam Frankfurt Iskandar Malaysia Danang Hamburg United Arab Emirates Kota Kinabalu Hai Phong Munich Abu Dhabi Kuala Lumpur Halong City Dubai Kuantan Hanoi Ireland Dublin CapitaLand Limited 04 Annual Report 2016 2016 Highlights Group Managed Real Estate Assets1 Profit Attributable to Shareholders S$78.4 billion S$1,190.3 million S$76.8 billion in 2015 S$1,065.7 million in 2015 Operating PATMI Earnings Before Interest and Tax S$865.3 million S$2,359.5 million S$823.6 million in 2015 S$2,316.0 million in 2015 Return on Equity Net Debt to Equity 6.6% 0.41 times 6.1% in 2015 0.48 times in 2015 Dividend per Share Net Tangible Assets per Share 10.0 cents S$4.05 9.0 cents in 2015 S$4.11 in 2015 1 Refers to value of all real estate managed by CapitaLand Group entities stated at 100% of the property carrying value. Overview Corporate Governance & Transparency Sustainability Business Review Portfolio Details Financials & Additional Information 05 Significant Scale Achieved1 Revenue Under Management Total Home Units Constructed (Since 2000) S$9.1 billion >84,000 of which Rental RUM is S$4.3 billion Office Tenants in Singapore and China Gross Turnover Sales of Retailers >1,000 S$10.9 billion Shopper Traffic Across 5 Countries2 Retail Leases Across 5 Countries2 ~1.1 billion ~17,000 Unique Serviced Residence Customers Raffles City Brand ~1.0 million 30th anniversary 1 Numbers stated as of FY 2016 unless otherwise stated. 2 The five countries are Singapore, China, Malaysia, Japan and India. CapitaLand Limited 06 Annual Report 2016 5-Year Financial Summary 2012 2013 2014 2015 2016 Restated Restated (A) INCOME STATEMENT (S$ million) Revenue 2,648.3 3,511.0 3,924.6 4,761.9 5,252.3 Earnings before interest and tax (EBIT) 2,190.8 2,258.6 2,436.9 2,316.0 2,359.5 Profit attributable to shareholders (PATMI) 908.9 840.2 1,160.8 1,065.7 1,190.3 Operating PATMI 360.2 502.5 705.3 823.6 865.3 (B) BALANCE SHEET (S$ million) Investment properties 17,882.1 15,495.9 17,149.2 19,427.5 18,998.4 Development properties for sale and stocks 7,510.6 7,382.4 7,673.7 6,936.3 4,837.1 Associates and joint ventures 11,109.5 12,673.2 12,780.9 12,858.1 12,617.3 Cash and cash equivalents 5,820.7 6,306.3 2,749.4 4,173.3 4,792.6 Other assets 3,714.1 3,205.3 3,760.3 3,657.4 4,495.4 Total assets 46,037.0 45,063.1 44,113.5 47,052.6 45,740.8 Equity attributable to owners of the Company 15,145.9 16,108.9 16,758.0 17,905.3 17,604.8 Total borrowings 17,454.4 15,936.2 15,985.8 16,058.5 14,852.4 Non-controlling interests and other liabilities 13,436.7 13,018.0 11,369.7 13,088.8 13,283.6 Total equities & liabilities 46,037.0 45,063.1 44,113.5 47,052.6 45,740.8 (C) FINANCIAL RATIOS Earnings per share (cents) 21.4 19.7 27.3 25.0 28.0 Net tangible assets per share (S$) 3.45 3.68 3.83 4.11 4.05 Return on equity (%) 6.1 5.4 7.1 6.1 6.6 Return on total assets (%) 5.2 4.9 5.1 4.4 4.4 Debt equity ratio (net of cash) (times) 0.48 0.39 0.57 0.48 0.41 Net debt/Total assets (net of cash) (times) 0.29 0.25 0.32 0.28 0.25 Interest cover (times) 5.3 5.7 7.2 6.1 6.5 Interest service (times) 3.3 4.6 4.6 6.7 10.3 Dividend Ordinary dividend per share (cents) 7.0 8.0 9.0 9.0 10.0 Dividend cover (times) 3.1 2.5 3.0 2.8 2.8 Comparatives for 2012 and 2013 have been restated to take into account: (i) the retrospective adjustment relating to FRS 110 Consolidated Financial Statements and (ii) re-presentation of Australand’s results under “discontinued operation” in accordance with FRS 105 Non-current Assets Held for Sale and Discontinued Operation. Overview Corporate Governance & Transparency Sustainability Business Review Portfolio Details Financials & Additional Information 07 Group Business Structure1 • Regional Investments2 • CapitaLand Investment Management CapitaLand CapitaLand CapitaLand The Ascott China Mall Asia Singapore3 Limited 1 As of 31 December 2016, CapitaLand is deemed to have an interest of 32.1%, 29.3%, 38.7%, 36.5% and 43.9% in CapitaLand Commercial Trust, CapitaLand Mall Trust, CapitaLand Retail China Trust, CapitaLand Malaysia Mall Trust and Ascott Residence Trust, respectively.