Hongkong Land Holdings

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#1
To: Business Editor For immediate release

The following announcement was issued today to a Regulatory Information Service approved by the Financial Services Authority in the United Kingdom.

HONGKONG LAND HOLDINGS LIMITED
Interim Management Statement

9th November 2011 – Hongkong Land Holdings Limited has today issued an Interim Management Statement covering the period from 1st July to 8th November 2011 in accordance with the requirements of the Disclosure and Transparency Rules of the Financial Services Authority in the United Kingdom.

The Hong Kong commercial property leasing market was relatively quiet during the period reflecting the general economic uncertainty, although occupancy remained high, with limited new supply. Vacancy in the Group’s office portfolio at the end of October was 2.2%, compared with 2.5% at 30th June 2011. The retail portfolio continued to enjoy full occupancy. Rental reversions were mostly positive. In Singapore, the Group’s existing office portfolio was little changed in stable market conditions. The Group’s construction projects in Singapore and Jakarta are progressing well with good levels of pre-letting. In August, a prime site in Wangfujing in the heart of Beijing was secured for approximately US$455 million, which will be developed as an integrated, luxury retail centre.

In the residential sector, sentiment was affected by government measures to curb price inflation and general market weakness in the region. Despite this, sales activity at the Group’s projects was satisfactory. In Hong Kong, a further seven units at the Serenade development were handed over to buyers. In Singapore, MCL Land launched two additional projects which have been well received. In mainland China, at the 50%-held Bamboo Grove development in Chongqing, two phases are on schedule for completion later this year, and the response has been good to the recent launch of further units. Sales continued at the Park Life development in the south of Shenyang, and the 50%-held joint venture also launched the first phase of its One Capitol project in the north of the city. Development activities are ongoing at the Group’s four other residential projects in China.

Hongkong Land’s balance sheet remains strong with net debt at 31st October 2011 largely unchanged from that reported at the end of June 2011.

Hongkong Land is one of Asia’s leading property investment, management and development groups with premium commercial and residential property interests across the region. The Group owns and manages some 450,000 sq. m. (five million sq. ft) of commercial space in Hong Kong that defines the CBD, while in Singapore it has a number of major developments. Its subsidiary, MCL Land, is a prominent residential developer in Singapore. Hongkong Land Holdings Limited is incorporated in Bermuda. It has a premium listing on the London Stock Exchange, and secondary listings in Bermuda and Singapore. It is a member of the Jardine Matheson Group.

Vested
Specuvestor: Asset - Business - Structure.
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#1
To: Business Editor For immediate release

The following announcement was issued today to a Regulatory Information Service approved by the Financial Services Authority in the United Kingdom.

HONGKONG LAND HOLDINGS LIMITED
Interim Management Statement

9th November 2011 – Hongkong Land Holdings Limited has today issued an Interim Management Statement covering the period from 1st July to 8th November 2011 in accordance with the requirements of the Disclosure and Transparency Rules of the Financial Services Authority in the United Kingdom.

The Hong Kong commercial property leasing market was relatively quiet during the period reflecting the general economic uncertainty, although occupancy remained high, with limited new supply. Vacancy in the Group’s office portfolio at the end of October was 2.2%, compared with 2.5% at 30th June 2011. The retail portfolio continued to enjoy full occupancy. Rental reversions were mostly positive. In Singapore, the Group’s existing office portfolio was little changed in stable market conditions. The Group’s construction projects in Singapore and Jakarta are progressing well with good levels of pre-letting. In August, a prime site in Wangfujing in the heart of Beijing was secured for approximately US$455 million, which will be developed as an integrated, luxury retail centre.

In the residential sector, sentiment was affected by government measures to curb price inflation and general market weakness in the region. Despite this, sales activity at the Group’s projects was satisfactory. In Hong Kong, a further seven units at the Serenade development were handed over to buyers. In Singapore, MCL Land launched two additional projects which have been well received. In mainland China, at the 50%-held Bamboo Grove development in Chongqing, two phases are on schedule for completion later this year, and the response has been good to the recent launch of further units. Sales continued at the Park Life development in the south of Shenyang, and the 50%-held joint venture also launched the first phase of its One Capitol project in the north of the city. Development activities are ongoing at the Group’s four other residential projects in China.

Hongkong Land’s balance sheet remains strong with net debt at 31st October 2011 largely unchanged from that reported at the end of June 2011.

Hongkong Land is one of Asia’s leading property investment, management and development groups with premium commercial and residential property interests across the region. The Group owns and manages some 450,000 sq. m. (five million sq. ft) of commercial space in Hong Kong that defines the CBD, while in Singapore it has a number of major developments. Its subsidiary, MCL Land, is a prominent residential developer in Singapore. Hongkong Land Holdings Limited is incorporated in Bermuda. It has a premium listing on the London Stock Exchange, and secondary listings in Bermuda and Singapore. It is a member of the Jardine Matheson Group.

Vested
Specuvestor: Asset - Business - Structure.
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#2
HongKong Land Holdings Limited seem to satisfy all the criteria of value investing in terms of
1. adequate size with market cap of $13B
2. current ratio > 2
3. net profit in last 10 years except 2 years but cashflow from operations is positive in last 5 years
4. consistently paying out dividend for last 10 years
5. > 30% growth in earnings when comparing total of years 8-10 vs years 1-3
6. P/E ratio of 10
7. P/B ratio is 0.53

Please share thoughts/comments on this stock.

Thank you and regards.
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#2
HongKong Land Holdings Limited seem to satisfy all the criteria of value investing in terms of
1. adequate size with market cap of $13B
2. current ratio > 2
3. net profit in last 10 years except 2 years but cashflow from operations is positive in last 5 years
4. consistently paying out dividend for last 10 years
5. > 30% growth in earnings when comparing total of years 8-10 vs years 1-3
6. P/E ratio of 10
7. P/B ratio is 0.53

Please share thoughts/comments on this stock.

Thank you and regards.
Reply
#3
(25-12-2013, 05:16 PM)HMH Wrote: HongKong Land Holdings Limited seem to satisfy all the criteria of value investing in terms of
1. adequate size with market cap of $13B
2. current ratio > 2
3. net profit in last 10 years except 2 years but cashflow from operations is positive in last 5 years
4. consistently paying out dividend for last 10 years
5. > 30% growth in earnings when comparing total of years 8-10 vs years 1-3
6. P/E ratio of 10
7. P/B ratio is 0.53

Please share thoughts/comments on this stock.

Thank you and regards.

Earnings growth in recent years were propped up by revaluation gains, thanks to cap rate compression - a trend which may reverse, even if valuations tend to be sticky upwards. It may be more meaningful to assess its performance on NAV growth, ex-
revaluations.

-----
www.i3-institute.com
www.i3-institute.blogspot.com
www.facebook.com/i.invest.institute
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#3
(25-12-2013, 05:16 PM)HMH Wrote: HongKong Land Holdings Limited seem to satisfy all the criteria of value investing in terms of
1. adequate size with market cap of $13B
2. current ratio > 2
3. net profit in last 10 years except 2 years but cashflow from operations is positive in last 5 years
4. consistently paying out dividend for last 10 years
5. > 30% growth in earnings when comparing total of years 8-10 vs years 1-3
6. P/E ratio of 10
7. P/B ratio is 0.53

Please share thoughts/comments on this stock.

Thank you and regards.

Earnings growth in recent years were propped up by revaluation gains, thanks to cap rate compression - a trend which may reverse, even if valuations tend to be sticky upwards. It may be more meaningful to assess its performance on NAV growth, ex-
revaluations.

-----
www.i3-institute.com
www.i3-institute.blogspot.com
www.facebook.com/i.invest.institute
Reply
#4
1. A Jardine Company
2. The office assets are the arguably the best in each country they are based
3. Dividends payout from earnings are 50% (recent 3 years) to 80% (2004 to 2007)
4. Rentals for office and retail have held firm despite weak demand
5. Cap rate for office - 4% Cap Rate for Retail: 4.5%
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#4
1. A Jardine Company
2. The office assets are the arguably the best in each country they are based
3. Dividends payout from earnings are 50% (recent 3 years) to 80% (2004 to 2007)
4. Rentals for office and retail have held firm despite weak demand
5. Cap rate for office - 4% Cap Rate for Retail: 4.5%
Reply
#5
(25-12-2013, 06:41 PM)ARC Wrote:
(25-12-2013, 05:16 PM)HMH Wrote: HongKong Land Holdings Limited seem to satisfy all the criteria of value investing in terms of
1. adequate size with market cap of $13B
2. current ratio > 2
3. net profit in last 10 years except 2 years but cashflow from operations is positive in last 5 years
4. consistently paying out dividend for last 10 years
5. > 30% growth in earnings when comparing total of years 8-10 vs years 1-3
6. P/E ratio of 10
7. P/B ratio is 0.53

Please share thoughts/comments on this stock.

Thank you and regards.

Earnings growth in recent years were propped up by revaluation gains, thanks to cap rate compression - a trend which may reverse, even if valuations tend to be sticky upwards. It may be more meaningful to assess its performance on NAV growth, ex-
revaluations.

-----
www.i3-institute.com
www.i3-institute.blogspot.com
www.facebook.com/i.invest.institute

Their rental income are REAL and increasing.. not propped by revaluation gains.

Commercial Property income 665(2009) 686 (2010) 758 (2011) 820mil (2012)

HOWEVER, I do agree that the huge value NAV on the AR is due to cap rate compression but lets not forget for cap rate, its not just the element of treasury yield, you must also factor in the ability for rental revision and with office rentals in HK central in 7 quarters of decline, I think there is polly upside to due recent rental renewal in Central area by UBS at rates >HKD$106psf pm (but key down side risk :HK's central office price going all the way down as it is still 2nd most exp in the world). Also the GFA commercial property over the years also increased significantly due to investment in MBFC and 1 Raffles Quay. IIRC, it increase by 15% from 2009 to this year.

Going forward the GFA is polly going to increase by another 15% due to the commercial office space they going to have up and running in Beijing and also a hotel and retail in Wangfujiing but that would consume cash, given its D/TC level, i think its not overlevered and would do fine.

Based on current market prices, the implied is polly a 50% haircut on all of its investment property, personally I think its cheap and recently vested in the stock but in HK, there are many other property counter for you to pick and choose. ie SHKP, Wharf, Hang Lung Prop all trading at quite a huge discount to NAV but i stick to HKland because of its crown assets ^^
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#5
(25-12-2013, 06:41 PM)ARC Wrote:
(25-12-2013, 05:16 PM)HMH Wrote: HongKong Land Holdings Limited seem to satisfy all the criteria of value investing in terms of
1. adequate size with market cap of $13B
2. current ratio > 2
3. net profit in last 10 years except 2 years but cashflow from operations is positive in last 5 years
4. consistently paying out dividend for last 10 years
5. > 30% growth in earnings when comparing total of years 8-10 vs years 1-3
6. P/E ratio of 10
7. P/B ratio is 0.53

Please share thoughts/comments on this stock.

Thank you and regards.

Earnings growth in recent years were propped up by revaluation gains, thanks to cap rate compression - a trend which may reverse, even if valuations tend to be sticky upwards. It may be more meaningful to assess its performance on NAV growth, ex-
revaluations.

-----
www.i3-institute.com
www.i3-institute.blogspot.com
www.facebook.com/i.invest.institute

Their rental income are REAL and increasing.. not propped by revaluation gains.

Commercial Property income 665(2009) 686 (2010) 758 (2011) 820mil (2012)

HOWEVER, I do agree that the huge value NAV on the AR is due to cap rate compression but lets not forget for cap rate, its not just the element of treasury yield, you must also factor in the ability for rental revision and with office rentals in HK central in 7 quarters of decline, I think there is polly upside to due recent rental renewal in Central area by UBS at rates >HKD$106psf pm (but key down side risk :HK's central office price going all the way down as it is still 2nd most exp in the world). Also the GFA commercial property over the years also increased significantly due to investment in MBFC and 1 Raffles Quay. IIRC, it increase by 15% from 2009 to this year.

Going forward the GFA is polly going to increase by another 15% due to the commercial office space they going to have up and running in Beijing and also a hotel and retail in Wangfujiing but that would consume cash, given its D/TC level, i think its not overlevered and would do fine.

Based on current market prices, the implied is polly a 50% haircut on all of its investment property, personally I think its cheap and recently vested in the stock but in HK, there are many other property counter for you to pick and choose. ie SHKP, Wharf, Hang Lung Prop all trading at quite a huge discount to NAV but i stick to HKland because of its crown assets ^^
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#6
Nice rebound.

I am quite sure some funds loaded up late last year.
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#6
Nice rebound.

I am quite sure some funds loaded up late last year.
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#7
Very good FY 2013 results.

1. Retail rental up 20% against reversions

2. Office rental up 10% against expired rentals

3. Even with $80M provisions for singapore condo price cuts, the NAV is up...

And yet the discount is a whopping > 40%...
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#7
Very good FY 2013 results.

1. Retail rental up 20% against reversions

2. Office rental up 10% against expired rentals

3. Even with $80M provisions for singapore condo price cuts, the NAV is up...

And yet the discount is a whopping > 40%...
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#8
Wah... after price cuts, Hallmark residences sold 26 out of 49 units. Luxury big units still sell so well...

Safe and steady ship...
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#8
Wah... after price cuts, Hallmark residences sold 26 out of 49 units. Luxury big units still sell so well...

Safe and steady ship...
Reply
#9
http://webcast.irasia.com/hkland/annual/...chived.htm [FY 2013 Webcast and Q&A]

http://202.66.146.82/listco/sg/hkland/cp...140307.pdf [PPT Slides]
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#9
http://webcast.irasia.com/hkland/annual/...chived.htm [FY 2013 Webcast and Q&A]

http://202.66.146.82/listco/sg/hkland/cp...140307.pdf [PPT Slides]
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
Reply
#10
A friend attended 8 Investments Talk over the weekend.

He told me HK Land is one of the top picks... :-)
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#10
A friend attended 8 Investments Talk over the weekend.

He told me HK Land is one of the top picks... :-)
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