SIME DARBY PROPERTY BERHAD Investor Presentation
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SIME DARBY PROPERTY BERHAD Investor Presentation UBS Singapore Day – 3rd October 2018 Presentation Outline 1 Sime Darby Property Profile Key Growth Areas and Recent 2 Developments 3 Growth Strategies 4 Financial and Operational Highlights 5 Challenges & Market Outlook 6 Appendices 2 1 Sime Darby Property 3 Shareholding Structure RM1.15 Share Price 55.8% Share Price Movement (RM) 1.78 As at 1st Oct’18 1.11 1.15 Foreign Shareholdings 14.4% 10.9% RM7.8bn 4.6% Market Capitalisation Other Domestic Shareholdings 14.3% 6,800,839 Number of Ordinary and the public Shares (000’) 4 Source: Tricor The Largest Property Developer in Malaysia In terms of land bank size RM2.4bn RM683mn RM640mn 1,584 FY18 Revenue FY18 PBIT FY18 PATAMI Employees UNITED Property Development KINGDOM Active townships, integrated and THAILAND 23 niche developments KEDAH Acres of remaining developable land bank to be Helensvale, 20,572 developed over 10 -25 years Queensland GEORGETOWN, PENINSULA PENANG Estimated Remaining Gross AUSTRALIA MALAYSIA RM89bn Development Value (GDV) Average trading discount to 48% Realised Net Asset Value (RNAV) Property Investment SELANGOR 3,239 acres 2,838 acres Sq. ft. of net commercial space in Malaysia and 2,826 acres 1.4mn NEGERI Singapore SEMBILAN Hospitality & Leisure 1,462 acres JOHOR Assets across 4 countries BANDAR UNIVERSITI PAGOH including 2 golf courses 3,262 acres 6 (36-hole & 18-hole Key Developments respectively) and a North-South Expressway Singapore convention center 5 Sustainable Growth with Remaining Developable Period of 10 to 25 years By Remaining By Remaining Gross Developable Land Development Value (GDV) 1,462 3,398 8.8 20.0 (12%) (28%) (11%) (25%) 338 O (3%) N G O 12,147 28.5 RM80.9 5.4 I (35%) 2,826 acres billion (7%) N (23%) 845 G (7%) 5.7 (7%) 3,278 12.6 (27%) (16%) 0.3 0.1 Legend 2,031 (4%) F (24%) (1%) U 3,092 T 8,425 (37%) RM8.4 U acres billion R E 3,302 8.0 (39%) (96%) Notes: 1. Township categorisation: • Guthrie Corridor: (Ongoing) Elmina West, Elmina East, Denai Alam & Bukit Subang and Bukit Jelutong, (Future) Kota Elmina & Lagong • Negeri Sembilan: (Ongoing) Nilai, Bandar Ainsdale, Planters’ Haven & Chemara, (Future) MVV and others • Johor: Bandar Universiti Pagoh and Taman Pasir Putih • Greater Klang Valley & Others: 6 • (Ongoing) Ara Damansara, ALYA, Putra Heights, KL East, USJ Heights, Taman Melawati, Saujana Impian, SJCC and SJ7 Refer to slide 51 - 52 • (Future) Jalan Acob, Victoria Estate and others 2. Future remaining GDV is preliminary and currently excludes MVV Key Growth Areas & 2 Recent Developments 7 Key Growth Areas (Flagship Developments) With remaining development period of about 25 years Guthrie Corridor Klang South Selangor Johor Expressway Elmina East and West Bandar Bukit Raja Serenia City Bandar Universiti Pagoh Remaining Acreage 3,095 2,826 1,462 3,262 Remaining GDV RM18bn RM13bn RM9bn RM6bn Total Residential Units 26,809 21,857 13,234 5,671 Residential Units 2,394 7,829 302 383 Launched Total Industrial 177 710 196 238 Components Industrial First launch Acreage Sold 152 265 55 in 1H19 • Along the Guthrie • Highly-connected in • Xiamen University, 1st• Pagoh Education Key Corridor Klang, close to Port university branch outside Hub, 1st multi-varsity Catalysts • >3000 acres of Klang and KLIA of China education hub (506 green spaces • Horizon Village Outlet acres) with ~7200 8 to open in 1Q19 students Developments along the Guthrie Corridor Expressway KEY HIGHLIGHTS Lagong 1,552 acres 10,297 acres Total land bank along Guthrie Corridor Expressway 6,490 acres Remaining developable land bank Kota Elmina • 52% of total land bank are on ongoing 1,540 acres developments • 48% on future developments (Kota Elmina and Lagong) Elmina West RM28 billion 2,661 acres Estimated remaining GDV Forest Elmina East Reserve 1,089 acres > 40,000 Total residential units with over 28,400 Denai Alam & Bukit remaining units to be launched Subang 1,250 acres DASH RRI Good connectivity: GCE, DASH, NKVE, LATAR and NSE Mass Rail Transit-1 (MRT 1) and Bukit Jelutong Keretapi Tanah Melayu Line (KTM) 2,205 acres 9 Elmina East and West - A Wellness Hub KEY HIGHLIGHTS FY2018 3,750 acres HIGHLIGHTS (Remaining: 3,095 acres) 2,394 Elmina City Centre straddles both sides of the Total residential units GCE from the Elmina West to Elmina East, launched since 2013 forming a prime integrated development hub (FY2018: 470 units) • 1,680 from Elmina West of RM17.9bn RM587k - RM1,453k Estimated Remaining GDV (RM340 – RM513 psf) • 714 from Elmina East priced between RM600k – 26,809 units RM2,308k (RM307 – RM564 Total estimated residential units psf) 300 acres 152 Elmina Central Park Acres of industrial land sold (RM89 – RM127psf) 2,700 acres Tasik Subang Dam Forest Reserve 853 Delivery of residential units 42 acres from Elmina Valley 1,2 and 3 Wellness Cluster 55 unsold completed units and 90 km 27 unsold ongoing units Combined jogging and cycling track launched prior to FY2018 An Award-Winning Township • Winner in Best Landscape Architectural Design • Highly Commended in Best Township Development • Winner in Best Universal 10 Design Development Bandar Bukit Raja - Highly Connected Township KEY HIGHLIGHTS FY2018 HIGHLIGHTS 4,333 acres (Remaining: 2,826 acres) Close proximity to KLIA and Port Klang RM12.6bn Estimated Remaining GDV 6,023 open market residential 21,857 units units launched since 2011 Total estimated residential units (FY2018: 388 units) 82,000 residents • RM119.8k – RM1,280.3k Expected population at full capacity (RM142 – 459 psf) 710 acres Industrial components 125 acres 84 Town Park delivery of completed High Connectivity detached factories in via major road infrastructure FY2018 New North Klang Straits Bypass (Shapadu Highway) and upcoming West Coast Expressway (WCE) RECENT INDUSTRIAL DEVELOPMENTS 39 50 Acres of industrial land Acres of industrial across 10 plots for built-to- land sold to Vinda suit industrial facilities. Group, one of the Potential tenants include largest producers food manufacturers and of hygiene global logistics services products 11 provider Serenia City - Industrial and High Technology Hub KEY HIGHLIGHTS FY2018 HIGHLIGHTS 2,370 acres (Remaining: 1,462 acres) Close proximity to Kuala Lumpur, Putrajaya, Cyberjaya and KLIA RM8.8bn Estimated Remaining GDV 100% take-up in the first hour 13,234 units of 1st residential launch Total estimated residential units 196 acres Serenia Amani Industrial components (2-storey house) High Connectivity Accessible via ELITE Highway, Federal Road, ERL & KLIA Development Catalysts • Express Rail Link (ERL) 302 units 12 minutes to KLIA and 27 minutes to KL From RM536,888 Central via the Salak Tinggi Station (RM293 – RM 400 psf) • Xiamen University First Chinese university branch campus in Malaysia with a total capacity of 10,000 55 students, with 3,300 current student population. Opened in February 2016. acres of industrial land sold to date • Horizon Village Outlet starting from RM60 One-storey retail lots over total net lettable area of 400,000 sq ft with 2,000 covered psf parking bays. Target to be completed by 1Q 2019. • Sunsuria City An integrated development by Sunsuria which commenced in November 2015 12 Bandar Universiti Pagoh – A University Town KEY HIGHLIGHTS FY2018 4,099 acres HIGHLIGHTS (Remaining: 3,262 acres) Malaysia’s First Integrated Township with an Education Hub 383 Residential units launched to- RM5.5bn date (Harmoni Vista 1) Estimated Remaining GDV 5,671 units Total estimated residential units 35 delivery of completed 238 acres commercial units in FY2018 Industrial components (Sarjana Square) 107 acres Earmarked for affordable housing 2 unsold completed units and 12 506 acres unsold ongoing units launched Pagoh Education Hub prior to FY2018 Launches to date with total GDV of >RM108mn Harmoni Vista Sarjana Square Sarjana Promenade (2-storey house) (Shop Office) (Shop Office) To Pagoh Johor Bahru Toll 383 units 35 units 35 units 13 From RM365,888 From RM888,888 From RM950,000 Pagoh Education Hub (PEH) A strategic decision to retain this Concession Arrangement st 60:40 1 integrated multi- Key Proposition varsity education hub in the Concession Agreement country situated within Bandar Stable Recurring Cash Flow in between Sime Darby 1 the Next 19 Years Property and Tunas Selatan Universiti Pagoh (BUP) Construction Facilities Management 2 4 Services (FM) • Estimated average annual revenue of Major Institutions ~RM30 mil to ~RM50 mil over the 19 years • Potential to grow the FM business as part 10,800 of the recurring income strategy The education hub as a key Maximum student 3 capacity with 7,200 Catalyst to BUP current student population 506 4 Financial Performance FY2018 RM’m Acres of development PBIT 36.5 Accretion of interest 92.6 (availability charges) Interest income 2.5 2017 Finance Costs (65.6) Year of Profit Before Tax 66.0 completion 14 Malaysia Vision Valley (MVV) Sime Darby Property to ride on the State Government’s support 16.8km dual-carriageway MVV Total Area: ~27,000 acres Nilai Parcel A: 2,838 acres Sime Darby Property’s Interest: Owned: Parcel A of 2,838 acres MVV Option Agreements with SD Berhad: 8,796 acres Additional 8,796 acres Key Catalyst: Chemara Hills A new 16.8km dual (44 acres) carriageway linking Nilai and Labu to Bandar Enstek Expected completion by July 2021 State Government’s Support The infrastructure work and construction of the dual carriageway is ONGOING The State Government’s 16.8km NLE Dual Carriageway commitment to spur Existing KTM Rail economic growth is in line with our strategy to accelerate