roxy-pacific holdings limited€¦ · overview – 2q2016 & 1h2016 2q2016 revenue grows 5% to...

ROXY-PACIFICHOLDINGS LIMITED

Results AnnouncementHalf Year Ended 30 June 201629th July 2016

STRIKINGA BALANCE FORSUSTAINABLE

GROWTH

• Financial Performance

• Business Review

• Group Borrowings

• Outlook

Agenda

Overview – 2Q2016 & 1H2016

2Q2016 Revenue grows 5% to S$98.4 million Hotel revenue increased 11% to S$11.9 million due to contributions from Noku Kyoto Hotel Net profit grows 57% to S$20.6 million, lifted by higher fair value gain on investment

properties in Australia Share of results of associates rise 22% to S$3.6 million

1H2016 Total revenue decreased 31% to S$201.4 million due to the absence of revenue recognition

from completion of Centropod@Changi Net profit decreased 47% to S$31.5 million Total pre-sale revenue of S$363.3 million, the profit of which will be progressively

recognised from 3Q2016 to 2020 Strong cash and cash equivalents of S$238.5 million Net gearing remains healthy at 0.6 time notwithstanding the completion of acquisition of

properties in Australia and Singapore and Maldives resort in 1H2016.

3

Financial Performance

4

Financial Results 2Q2016 2Q2015 % change

Revenue (S$’m) 98.4 93.7 5%

Gross Profit (S$’m) 19.5 16.5 18%

Gross Margin (%) 20% 18% 2 ppt

Share of results of associates(net of tax) (S$'m)

3.6 3.0 22%

Pre-tax profit (S$’m) 27.3 11.8 130%

Net Profit (S$’m) 20.6 13.1 57%

EPS (SGD cents) 1.7 1.1 53%


5

Financial Results 1H2016 1H2015 % change

Revenue (S$’m) 201.4 291.9 -31%

Gross Profit (S$’m) 42.6 86.7 -51%

Gross Margin (%) 21% 30% -9 ppt

Share of results of associates(net of tax) (S$'m)

6.5 5.6 15%

Pre-tax profit (S$’m) 40.8 69.1 -41%

Net Profit (S$’m) 31.5 59.4 -47%

EPS (SGD cents) 2.5 5.0 -50%


$16.6 $23.4 $38.1 $60.9 $50.4 $38.1 $53.7 $79.5 $198.2* $103.0$25.9 $41.7

$43.7

$55.3$46.8

$52.7$68.9

$102.5

$93.7

$98.4

$19.6

$34.9$37.6

$53.1

$44.4 $43.6

$76.7

$67.2

$87.7

$40.6

$30.1

$44.1

$47.6

$42.1 $56.2

$169.7 $68.6

$81.3

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

4Q

3Q

2Q

1Q

$102.7

$163.5$190.6

$369.0

$183.7

$216.9

$317.8

$130.1

$460.9

$201.4

31%

Financial PerformanceTurnover Trend (S$’m)

2Q2016 revenue increased by 5% to S$98.4m1H2016 revenue decreased by 31% to $201.4m mainly due to absence ofrevenue recognition from Centropod@ChangiExcluding Centropod@Changi, revenue increased by 34%.

6* includes revenue recognised from Centropod@Changi amounting to S$141.4 million upon obtaining its TOP in Jan 2015.


$2.7 $4.2 $6.4 $9.0 $10.0 $9.0 $11.8 $15.0 $46.3* $10.9$5.0 $8.9

$9.4$12.9 $16.5 $17.8

$19.5$22.8

$13.1

$20.6

$2.5

$8.7 $6.2

$8.9

$13.4$8.2

$16.1$12.4

$13.3

$9.0

$2.9 $5.9

$12.0

$11.9 $23.3

$44.8$46.6

$12.5

$0

$20

$40

$60

$80

$100

$120

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

4Q

3Q

2Q

1Q

$85.2

$27.9

$19.2

$42.8

$51.8$58.3

$92.2$96.8

$24.7$31.5

Financial PerformanceProfit Trend (S$’m)

2Q2016 net profit increased by 57% to S$20.6m1H2016 net profit decreased by 47% to S$31.5mExcluding Centropod@Changi, net profit increased by more than 2 times in1H2016

7

47%


* includes profit from revenues recognised from Centropod@Changi upon obtaining its TOP in Jan 2015.

PropertyDevelopment,

$83.5 , 85%

HotelOwnership ,$11.9 , 12%

PropertyInvestment,

$6.0, 3%

Segment Results – 2Q2016Revenue (S$’m)

2Q2016 – Total S$98.4m 2Q2015 – Total S$93.7m

8


PropertyDevelopment,

$79.9 , 85%

HotelOwnership$10.7 , 11%

PropertyInvestment,

$3.2 , 4%

Segment Results – 2Q2016Adjusted EBITDA* (S$’m)

2Q2016 – Total S$32.4m 2Q2015 – Total S$18.2m

9

* Adjusted EBITDA excludes corporate expenses, depreciation of property, plant and equipment, finance cost (net) and-- Fair value differences of cross currency swap and available-for-sale financial assets.


PropertyDevelopment$11.7 , 36%

HotelOwnership,$3.2 , 10%

PropertyInvestment -

Rentalincome, $2.0 ,

6%


Fair valuegain, $15.5 ,

48%Property

Development,$11.0 , 60%

HotelOwnership,$2.7 , 15%


Rental income,$2.0 , 11%


Fair value gain,$2.6 , 14%

(1) Cash holdings include project account monies amounting to S$78.8 million as at 30 June 2016 (31 December 2015: S$82.2 million)

10

Financial Position 30 Jun 2016 31 Dec 2015 % change

Total assets (S$m) 1,503.1 1,408.8 7%

Total debt (S$m) 897.4 807.7 11%

Cash & cash equivalents (S$m) (1) (2) 238.5 313.0 -24%

Net debt (S$m) 570.9 412.7 38%

Net asset value (“NAV”) (S$m) 470.4 457.6 3%

Revaluation surplus (S$m) (3) 467.1 463.4 1%

Adjusted net asset value (“ANAV”) 937.5 921.0 2%


(2) Cash holdings decrease mainly due to acquisition of an office building in Australia and development sites in Singapore, Australia and Maldivesresorts in 1H2016

(3) The fair value of the Grand Mercure Roxy Hotel, Noku Hotel in Kyoto, hotel in Phuket, property in Maldives and office premise were estimatedto be S$634.0 million as at 30 June 2016 (31 December 2015: S$588.3 million)

(1) The fair value of the Grand Mercure Roxy Hotel, Noku Hotel in Kyoto, hotel in Phuket, property in Maldives and office premise wereestimated to be S$634.0 million as at 30 June 2016 (31 December 2015: S$588.3 million)

11

Financial Ratios 30 Jun 2016 31 Dec 2015 % change

NAV per share (SGD cents) 39.4 38.3 3%

ANAV per share (SGD cents) (1) 78.6 77.2 2%

Cash holdings per share (SGD cents) (2) 27.4 33.1 -17%

Net debt to ANAV (times) 0.61 0.45 36%

Total debt to ANAV (times) 0.96 0.88 9%

Return on equity (%) 13% 19% -6ppt


(2) Cash holdings include project account monies amounting to S$78.8 million and fixed deposits pledge for working capital loan facilities of$88.0 million as at 30 June 2016 (31 December 2015: S$82.2 million & S$82.0 million respectively)

Business Review

12

Results AnnouncementHalf Year Ended 30 June 2016

29th July 2016

Property Development

Business Review

Property Development Revenue from Property Development (S$’m)1H2016 – Total $ 171.8

1H2015 – Total $ 264.2

13

Decrease in revenue by 35% from S$264.2 million in 1H2015 to S$171.8 million in 1H2016 mainly from the absence ofrevenue recognition of $141.4 million on completion from Centropod@Changi, a commercial development project thatobtained TOP in January 2015.

35%

$3.6

$141.4

$9.9 $9.5

$38.5

$57.6

TOP Jan 15

$10.0

$31.2$30.3 $34.8

$29.6

$35.9

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

Space@Kovan Centropod@Changi

Sunnyvale Trilive LIV on Wilkie LIV on Sophia Whitehaven Jade Residences

Business Review

Property Development – 1H2016Share of results in associates (S$’m)

14

Eon Shenton, 2.0

Eon Shenton, 5.7 Natura@Hillview, 1.8

Millage, 2.0

Millage, 0.5

North Fremantle, 0.2

Peel Street, (0.1)

-0.5

0.5

1.5

2.5

3.5

4.5

5.5

6.5

7.5

1H20151H2016

Peel Street

117 Clarence Street

North Fremantle

Millage

Natura@Hillview

Eon Shenton

S$6.5m

S$5.6m

15%

Business Review

Project name

Type of

development

Group

stake

Total units

in project Unit sold

Attributable

total sale value(i)

Attributable revenue

recognised up to 30

June 2016

Balance

attributable

progress billings

to be recognised

from 3Q2016

% Unit % $'m $'m $'m

Singapore

1 Eon Shenton Office 20% 98 100% $ 60.1 $ 34.3 $ 25.8

Res identia l 20% 132 96% $ 38.4 $ 21.9 $ 16.5

Shop 20% 23 100% $ 4.8 $ 2.7 $ 2.1

2 Jade Resi dences Res identia l 100% 171 100% $ 216.7 $ 195.2 $ 21.5

Shop 100% 2 100% $ 1.7 $ 1.5 $ 0.2

3 Whitehaven Res identia l 100% 120 96% $ 144.5 $ 141.7 $ 2.8

Shop 100% 1 100% $ 1.2 $ 1.2 -

4 LIV on Sophia Res identia l 90% 64 100% $ 78.5 $ 65.5 $ 13.0

5 LIV on Wilkie Res identia l 90% 81 85% $ 89.0 $ 54.4 $ 34.6

6 Sunnyvale Res idences Res identia l 100% 30 60% $ 27.9 $ 15.9 $ 12.0

7 Tri l ive Res identia l 85% 222 64% $ 135.4 $ 31.5 $ 103.9

Shop 85% 2 50% $ 0.7 $ 0.2 $ 0.5

Malaysia

8 Wisma Infini tum Res identia l 47% 423(ii)

53% $ 38.2 - $ 38.2

Australia

Sydney

9 The Hensley, Potts Point Res identia l 100% 44 59% $ 41.1 - $ 41.1

Shop 100% 1 100% $ 1.1 - $ 1.1

10 Octavia , Ki l lara Res identia l 100% 43 79% $ 34.3 - $ 34.3

South Brisbane

11 New World Towers , Peel Street Res identia l 40% 188(iii)

34% $ 15.9 - $ 15.9

Total 1,645 $ 929.4 $ 566.1 $ 363.3

Pre-Sale Revenue to be recognised by projects (S$’m) – 1H2016

(i) Includes Option to Purchase granted up to 21 July 2016(ii) Represents Block A of the development, an additional 331 units in Block B is pending launch(iii) Represents Tower 1 of the development, Tower 2 with an estimated 240 units is pending launch

Business Review

16

Development Land Bank

(1) The properties are currently zoned as “Industrial” by the relevant Australian authorities. A decision to on-sell or redevelop the land will bemade by the joint venture upon successful rezoning of the property for commercial and residential use.

Location / Description Proposed DevelopmentApproximate

Land Area(sq m)

ApproximateGross FloorArea (sq m)

Group’sstake

ApproximateAttributable

Gross Floor Area(sq m)


Land Cost(SGD)


Land Cost(foreign

currency)

Singapore

1 26 Sea Avenue25 units of Residential

Development1,809 2,533 100% 2,533 S$21.5 m NA

2178 & 180AJalan Eunos

32 units of ResidentialDevelopment

1,601 2,242 100% 2,242 S$14.2 m NA

Overseas

1

54 & 85 Bracks Street,North Fremantle,Australia

(1)

Industrial land; to berezoned for commercial

and residential use45,456 TBC 20.2% TBC S$12.8m AUD11.9m

2

14 Cowper & 8 ElgerStreet, Glebe,Australia

248 units of ResidentialDevelopment

7,125 18,960 100% 18,960 S$69.7m AUD67.4m

3Jalan Kramat Raya No110, Jakarta Indonesia

110 units of CommercialDevelopment

1,703 7,152 49% 3,504 S$3.3m IDR33.4b

Total 57,694 S$121.5m

Business Review

Hotel Ownership


29th July 2016

17

Business Review

GMRH RevPar decreased by 4% to S$144.0 in 1H2016 fromS$150.0 in 1H2015Noku Kyoto Hotel RevPar at S$194.2 in 1H2016

Hotel Ownership – 1H2016AOR , ARR & RevPar

18

92.5%

88.0%86.2%

94.2% 94.6%89.9%

86.1%

91.2%89.6%

87.1%89.7%

47.5%

$154

$200

$147$166

$188$200 $191 $185

$169 $172

$160

$409

$143 $176$127 $157

$178 $180$165 $168

$152 $150 $144

$194

$-

$50

$100

$150

$200

$250

$300

$350

$400

$450

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 1H2015 1H2016

AOR - GMRH

AOR - Noku

ARR - GMRH

ARR - Noku

RevPar - GMRH

RevPar - Noku

Business Review

Hotel Ownership – 1H2016Hotel Revenue (S$m) Hotel revenue increased 9% in 1H2016 to $23.6 m from $21.6 m in

1H2015 mainly due to contributions from Noku Kyoto Hotel of $2.6m

19

9%

8.5 11.7 10.0 10.3 11.7 13.1 10.9 12.0 10.9 11.7

9.1

12.68.7 11.0

12.012.4

11.511.5

10.7 11.9

9.8

12.5

9.0

11.8

12.513.1

12.212.5

11.6

9.9

11.7

9.9

11.4

12.311.6

11.811.9

11.3

$0

$10

$20

$30

$40

$50

$60

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Q4

Q3

Q2

Q1

$48.5

$37.6

$44.5

$48.5

$50.2

$46.4 $47.9

$37.3

$23.6

$44.5

Business Review

Hotel Ownership – 1H2016Hotel Net Operating Profits (“NOP”) (S$m) Hotel net operating profit decreased 8%

in 1H2016 to $6.1m from $6.6m in 1H2015

20

3.6 5.3 3.4 3.9 4.8 5.4 3.7 4.5 3.3 3.3

3.9

5.8

3.04.6

5.04.8

4.24.0

3.3 2.8

4.3

5.4

3.2

4.7

5.4 5.2

4.44.7

3.8

5.0

5.1

3.7

4.5

5.2 4.2

4.34.3

3.3

$0

$5

$10

$15

$20

$25

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Q4

Q3

Q2

Q1

$21.6

$13.3

$17.7

$20.4$19.6

$16.6$17.5$16.8

$13.7

$6.1

Hotel Net Operating Profits is defined as the earnings before interest, taxes, depreciation and amortisation.

21

Business Review

Hotel Name LocationGroup's

stakeTenure

Approximate Land area

(sq m)

AttributableGross

Floor Area(sq m)

No. ofrooms

Commencement ofhotel operation/

Estimatedcompletion date

Hotel underdevelopmentin Phuket

48/13 Moo 6, Soi Sai-Namyen, Chaofa Road,Chalong Subdistrict,Mueang District

100% Freehold 46,878 TBCApprox.85 villas

2018

RoxyMaldivesResort

Island of Kudafunafaru,Noonu Atoll, Maldives

100%Remaining40 years

leasehold89,896 TBC 50 villas 2H2017

Total 136,774

Noku Roxy Hotels

Business Review

Property Investment


29th July 2016

22

Business Review

$1.8$1.0

$1.5$1.6

$1.7 $1.6 $1.7 $1.8$0.9 $0.9

$4.9

$10.4

$5.2 $5.1

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 1H2015 1H2016

59 Goulburn Street

Roxy Square

Kovan Centre

$3.3$2.6

$12.2

$6.1 $6.0*

Property Investment – 1H2016Revenue (S$’m)

23

Rental income decreased 2% in 1H2016 to $6.0mfrom $6.1m in 1H2015

*Excludes rental income from 117 Clarence Street as it is equity accounted under share of results of associates

Business Review

(1) Based on latest valuations as of 30 June 2016(2) Excludes 5 units which are for owner-use premises

2459 Goulburn

Street

Location DescriptionGroup’s

stake

Net LettableArea/ FloorArea (sq m)

Occupancy (%)as at 30 Jun 2016

(on lettablearea)

Valuation (1)

($)

Estimated TotalAnnual

Gross Income(S$)

Held by a subsidiary company

150 East Coast Road,Roxy Square,Singapore

47 shopunits (2) 100% 2,352 88% S$70.3 m $1.9 m

259 Goulburn Street,Sydney, Australia

28-Storeycommercial

building100% 19,407 100%

S$121.8 m(A$121.5m)

$10.3 m

Total 21,759 S$192.1 m

Held by an Associate company

1117 Clarence Street,Sydney, Australia

14-Storeycommercial

building50% 12,491 94%

S$88.2 m(A$88.0 m)

$7.3 m

Total 12,491 S$88.2 m

Investment Properties

117 ClarenceStreet

Roxy square

Group Borrowing


29th July 2016

25

Group Borrowing

26

Debt Profile 30 Jun 2016 31 Dec 2015 % change

Total borrowings (S$m) $897.4 $807.7 11%

Fixed rate loans (S$m) $358.0 $384.5 -7%

Fixed rate loans as % of total loans 40% 48% -8ppt

Weighted average term for fixed rateloans

22 months 25 months -3 months

Weighted average interest rate(fixed rate loans)

3.1% 3.1% -

Weighted average interest rate(floating rate loans)

2.7% 2.8% -0.1ppt

Interest coverage ratio (times) 6.7 8.8 -24%

Group Borrowing

27

Debt Profile as at 30 Jun 2016 (S$m)

$60.0 million MTN loan is repayable in July 2018

$396.5mor 44%

Development loans: (soldunits) in launched projects,

$257.8 , 29%

Development loans: (unsoldunits) in launched projects,

$72.7 , 8%

Development loans: projectsyet to be launched, $66.0 ,

7%

Working capital loans,$146.0 , 16%

MTN loan,$60.0 , 7%

Repayable by Jun 2017,$40.1 , 5%

Repayable from Jul 2017 toJun 2021, $199.2 , 22%

Repayable after Jul 2021,$55.6 , 6%

Term Loans (Hotel, shops &office), $294.9 , 33%

Total outstanding debts of $897.4m as of 30 Jun 2016

Outlook1. General− Advance estimates by MTI showed that the Singapore economy grew 2.2% y-o-y in 1H2016, faster than the 2.1% growth in 1Q2016 1

− The Reserve Bank of Australia expects growth to remain steady at between 2.5% and 3.5% to December 2016 2

2. Property Development− Statistics by URA indicated a decrease of 0.4% in private residential property prices in 2Q2016, the smallest q-o-q fall since 1Q2014 3

− The Australia residential property price index (eight capital city, weighted average) rose 6.8% on a y-o-y basis 4

− The Group property development presale revenue was S$363.3 million 5, the profit of which will be progressively recognised from3Q2016 to 2020

− Strong take-up rates of close to 80% for Octavia and 60% for The Hensley

3. Hotel Ownership− Latest statistics from the STB demonstrated a 13.3% y-o-y growth in international visitor arrivals between January to May 2016 6

− Grand Mercure Roxy Hotel continues to see high occupancy whilst Noku Kyoto Hotel has achieved high average room rate sinceopening

− The Group completed acquisition of a hotel and leasehold interest of an island in the Maldives with upgrading works commencing soon− The Group looks forward to continue strengthening recurring income streams

4. Property Investment− In 1H2016, the Group completed the purchase of 117 Clarence Street, Sydney, Australia, with a 50% shareholding interest− The Group’s investment in Goulburn Street has continued to contribute strong recurring income to our Property Investment segment− The Group will continue to actively look for acquisitions and investment opportunities that offer high yield potential

5. Strong cash and cash equivalents of S$238.5 million.

6. Net gearing remains healthy at 0.61 time notwithstanding the completion of acquisition of properties in Australia and Singapore in1Q2016 and Maldives resort in 2Q2016.

7. Barring any unforeseen circumstances, the directors expect the Group to be profitable in 2016.

28

1 Singapore’s GDP Grew by 2.2 Per Cent in the Second Quarter of 2016 – Ministry of Trade and Industry, July 14, 20162 RBA cautiously upbeat on Australian economy given positive economic indicators – ABC News, Feb 5, 20163 Private home prices declined by 0.4% in 2Q2016: URA – The Edge Property, July 1, 20164 Residential Property Price Indexes: Eight Capital Cities – Australian Bureau of Statistics, June 21, 20165 As at July 21, 20166 International Visitor Arrivals Statistics – Singapore Tourism Board, July 13, 2016

ROXY-PACIFICHOLDINGS LIMITED

Results AnnouncementHalf Year Ended 30 June 201629th July 2016

STRIKINGA BALANCE FORSUSTAINABLE

GROWTH

THANK YOU

29

roxy-pacific holdings limited€¦ · overview – 2q2016 & 1h2016 2q2016 revenue grows 5% to...

Documents