Boustead Projects Limited FY2018 Annual General Meeting 26 July - PowerPoint PPT Presentation

Boustead Projects Limited FY2018 Annual General Meeting 26 July 2018

Group Financial Performance One-off gains from Ausgroup & Revenue (S$m) PBT (S$m) TripleOne Somerset 50.0 300.0 255.5 45.0 255.4 13.8 250.0 209.2 40.0 228.3 201.3 5.3 35.0 200.0 30.0 11.3 14.4 13.9 25.0 150.0 16.2 15.8 20.0 100.0 15.0 22.7 21.0 10.0 19.5 50.0 14.9 13.9 5.0 0.0 0.0 FY2014 FY2015 FY2016 FY2017 FY2018 D&B Leasing Sale of properties Others Revenue PAGE 2

Design-and-build Review (1) ▪ Public sector continued to dominate total construction demand. (~64% in CY2017) ▪ During CY2017, the Singapore Government awarded ~$1.67bil (1) worth of industrial building construction contracts. Contracts Awarded (1) 27.0 26.4 24.8 13.3 15.4 15.8 13.8 11.0 9.0 2015 2016 2017 Private Public Source: (1) Building & Construction Authority PAGE 3

Design-and-build Review (2) ▪ Revenue fell 13% year-on-year on usually low value of contracts secured during FY2017 for revenue conversion in FY2018, and completion of a project with significant revenue contribution in FY2017 ▪ Profit before income tax (PBT) growth on productivity improvements, unlocking of cost savings and conversion of projects with higher margins ▪ Healthy level of new contracts secured amid challenging market 28.0* 300 30 250 25 21.0 19.5 Revenue 200 20 14.9 13.9 150 15 Contracts 284 Secured 233 228.9 221.1 100 10 195.2 189 187.3 169.9 PBT 158 140 50 5 0 0 FY2014 FY2015 FY2016 FY2017 FY2018 *Includes $5.3m contribution from sale of properties PAGE 4

Construction Contracts Secured by Country S$’million 300 284 43.4 233 250 7.6 189 200 0.7 30.6 140 Vietnam 150 0.2 Malaysia 240.6 Singapore 225.4 100 157.7 139.7 50 0 FY2015 FY2016 FY2017 FY2018 PAGE 5

Leasing Review (1) ▪ Overall market demand for industrial spaces remain soft. (Overall rental index fell 2.0% year-on-year whilst occupancy rates slipped 0.4%.) ▪ Business park space remains a bright spot with rental index increasing 6.9% year-on-year. ▪ Limited government land tender and industrial land allocation opportunities for developers. Property 1Q 2018 Y-o-y Type Change All 91.1 -2.0% Multi-user factory 89.1 -1.8% Rental Single-user factory 97.5 -2.4% Index (1) Business park 111.5 +6.9% Warehouse 85.5 -5.5% Source: (1) JTC 2018 1Q Quarterly Report PAGE 6

Leasing Review (2) ▪ Lower leasing revenue mainly due to AusGroup’s early lease termination (for 36 Tuas Road property) and lease expiry for 85 Tuas South Ave 1 ▪ Lower profit before income tax (PBT) mainly due to AusGroup early lease termination, lease expiry at 85 Tuas South Ave 1 and absence of one-off other gains S$’mil 40 34.4 33.1 31.5 3.7 3.0 30 26.5 Revenue (Others) 3.7 21.9 21.1 Revenue (AusGroup) 1.6 20 4.9 15.8 PBT (Others) 14.4 13.9 1.2 31.5 30.7 1.4 30.1 11.3 0.9 PBT (AusGroup) 22.8 0.6 10 20.3 PBT (AusGroup Compensation) 15.0 14.4 14.4 13.0 10.7 0 FY2014 FY2015 FY2016 FY2017 FY2018 PAGE 7

Development Highlights SINGAPORE MALAYSIA VIETNAM • Under Boustead Development Under THAB: Subleased land for • Partnership: Completed iBP @ Nusajaya development of Boustead • • Completed Continental Completed logistics hub at Industrial Park • Building Phase 3 Port of Tanjung Pelepas Commenced construction • Launched marketing of and marketing of Phase 1 ALICE @ Mediapolis (ready-built factories) PAGE 8

Growth in Leasing Revenue & NPI S$’million Revenue 40 NPI BP's Share of Revenue - JV 34.4 BP's Share of NPI - JV 35 33.1 31.5 30 26.5 24.9 25 23.4 21.9 20.7 19.8 20 17.2 16.6 15 13.2 10 5.3 4.1 3.1 5 2.5 1.7 0.8 0.6 1.3 0 FY13 FY14 FY15 FY16 FY17 FY18 PAGE 9

Portfolio Statistics (FY2018) By Revenue FY17 Wholly-Owned FY18 No. of Properties 14 14 16.3% Property Value ($’million) 351.8 345.9 Total Portfolio GFA (Million sqf) 1.8 1.8 Portfolio Occupancy (by NLA) 87% 83% Weighted Average Lease Expiry (by NLA) 4.3 3.8 83.7% Weighted Average Land Tenure Expiry (by 36.2 35.1 area) Jointly-Owned FY17 FY18 24.1% No. of Properties 3 5 Property Value ($’million) 196.0 236.7 8.6% 67.3% Total Portfolio GFA (Million sqf) 0.3 0.7 Portfolio Occupancy (by NLA) 100% 77% Weighted Average Lease Expiry (by NLA) 10.2 6.9 Light Industrial General Industrial Weighted Average Land Tenure Expiry (by 27.8 31.9 Business Park area) PAGE 10

Joint Venture Projects (FY2018) Completed GSK Asia House Safran Turbomeca Edward Boustead Centre Under Development ALICE @ Mediapolis PTP Warehouse Continental Building Phase 3 PAGE 11

Financial Position (in S$’m ) FY2017 FY2018 93% non-current debt, on floating interest rates with well-staggered maturity profile Total borrowings 88.4 70.5 (over next 5 years) Cash & cash Strong cash position 113.4 111.4 equivalents Net cash/(borrowings) 25.0 40.9 Improved net cash position Total equity 229.4 244.1 Increased on higher retained profits Debt-to-equity ratio 39% 29% Ample gearing headroom Loan to valuation ratio* 25% 20% *For wholly-owned properties PAGE 12

Highlights (FY2018) Financial Position Industrial Portfolio Joint Venture Developments $111.4 mil -5% ~120,028 sqf Cash position Y-O-Y revenue change New development completed in SG for 100%-owned properties 20% ~259,463 sqf +71% Loan-to-valuation ratio New development completed in MY Y-O-Y change in BP’s share of revenue for JV properties Design & Build Accolades 13 Contracts 2 Awards Secured in Singapore and Vietnam Green and Gracious Builder Award (Excellent) Green Mark Platinum for ALICE @ Mediapolis PAGE 13

Strategies ▪ Staying ahead in the industrial built environment through areas of quality / productivity / safety / technology. ▪ Participate in selected GeBIZ industrial construction tender(s). Engineering & ▪ Continuing to tap on Singapore network and capabilities to expand into Construction target countries. ▪ Extend efforts in M&A to increase scalability and competitiveness. ▪ Further opportunities in joint venture development(s). ▪ Proactive asset management – AEI / Redevelopment / Disposal. ▪ Extend efforts to grow the portfolio via acquisition of brownfield sites or completed properties. ▪ Participation in selected multi-user development(s). Real Estate ▪ Extend relations with capital / development partners – Particularly in target countries and land banking opportunities. ▪ Establishment of real estate platform to inject portfolio and augment future growth plans PAGE 14