Capland AR2010 FA PDF 22032011

272 Pages·2011·6.9 MB·English

CAPITALAND LIMITED
ANNUAL REPORT 2010
FIRM
FOUNDATION
LEADING EDGE INNOVATION
IN THE FIRST
READY
FOR THE NEXT
YEARS
ACHIEVED TOTAL NET PROFIT
OF S$7.4 BILLION IN THE
LAST FIVE YEARS
UNIQUE MULTI-SECTOR
AND MULTI-GEOGRAPHY
REAL ESTATE COMPANY WITH
COMPLETE VALUE CHAIN
COMPETENCY
MANAGES S$50.6 BILLION
OF REAL ESTATE ASSETS
MORE THAN 110 CITIES
IN OVER 20 COUNTRIES
CORPORATE
PROFILE
CapitaLand is one of Asia’s largest real estate companies. Headquartered and listed
in Singapore, the multi-local company's core businesses in real estate, hospitality and
real estate financial services are focused in growth cities in Asia Pacific and Europe.
The company’s real estate and hospitality portfolio, which includes homes, offices,
shopping malls, serviced residences and mixed developments, spans more than
110 cities in over 20 countries. CapitaLand also leverages on its significant asset
base, real estate domain knowledge, financial skills and extensive market network
to develop real estate financial products and services in Singapore and the region.
The listed entities of the CapitaLand Group include Australand,CapitaMalls Asia,
CapitaMall Trust, CapitaCommercial Trust, Ascott Residence Trust,
CapitaRetail China Trust, CapitaMalls Malaysia Trust and Quill Capita Trust.
CREDO Building for People to Build People
Building People to Build for People
MISSION Our mission is to build a world-class company with
international presence that
• Creates sustainable shareholder value
• Delivers quality products and services
• Attracts and develops quality human capital
VISION A world-class entrepreneurial, prosperous and
lasting real estate company led and managed by
people with core values respected by the business
and social community.
A leading real estate company in Asia, reputed for its
innovative and quality real estate products and services.
A company with a strong global network of long-term
investors and blue-chip partners.
A company which attracts, develops and retains
a diversity of talents regardless of nationality,
race or age.
A company which consistently creates value
for shareholders.
CONTENTS
Financial Highlights Australand Property Group
2 68
5-Year Financial Summary Human Resource
3 70
M Letter to Shareholders Corporate Social Responsibility
A 8 72
N
A
G Board of Directors IN Corporate Directory
EM 18 VE 74
E S
N Council of CEOs T Financial Calendar
T RE 26 OR R 75
P Corporate Office E 10-Year Share Price Performance
OR 34 SO 76
T U
Global Presence R Year In Brief
C
36 E 77
Performance Overview Corporate Governance
38 81
Awards & Accolades Risk Assessment and Management
48 94
B Group Businesses Stakeholder Communications
U
S 51 96
IN
E CapitaLand Residential Singapore Economic Value Added Statements
SS 52 98
R
E CapitaLand China Value Added Statements
VIE 54 99
W
CapitaLand Commercial Shareholding Statistics
56 100
CapitaMalls Asia Other Information
58 102
The Ascott Limited Statutory Accounts
60 105
CapitaLand Integrated Developments Notice of Annual General Meeting
62 216
CapitaValue Homes Appendix
64 223 PA
G
CapitaLand Financial Services 66 Proxy Form 239 1E
FINANCIAL
HIGHLIGHTS
5th Consecutive Year of
Above S$1 Billion Net Profit
SS$$11..2277 bbiilllliioonn
Profit attributable
to Shareholders
S$2.38 billion
Earnings Before
Interest and Tax
9.2%
Return on
Shareholders' Funds
7.1%
Return on
Total Assets
S$50.6 billion
Group Managed
Real Estate Assets
S$7.2 billion
Revenue Under
Management
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2
5-YEAR
FINANCIAL SUMMARY
2006 2007 2008 2009 2010
(A) INCOME STATEMENT (S$ million)
Revenue by SBUs
CapitaLand Residential Limited (1) 2,356.0
CapitaLand Residential Singapore 548.7 400.2 673.8 843.2
CapitaLand China Holdings 985.3 330.3 647.0 573.5
CapitaLand Commercial 139.2 165.7 227.9 144.9 337.8
The Ascott Limited 478.1 459.5 441.8 393.7 407.4
CapitaLand Financial 101.2 119.2 182.2 162.2 116.2
CapitaMalls Asia 94.6 124.2 206.7 228.9 245.4
Australand 1,406.7 984.3 732.5 879.8
Others (21.4) (16.6) (21.1) (25.6) (20.6)
Total 3,147.7 3,792.7 2,752.3 2,957.4 3,382.7
Earnings Before Interest and Tax (EBIT) by SBUs
CapitaLand Residential Limited (1) 692.2
CapitaLand Residential Singapore 308.6 175.0 371.7 351.5
CapitaLand China Holdings 403.4 883.4 551.2 682.4
CapitaLand Commercial 372.4 1,876.7 395.6 (497.4) 264.2
The Ascott Limited 202.5 337.2 132.2 31.4 173.0
CapitaLand Financial 61.6 69.7 90.4 98.0 103.0
CapitaMalls Asia 221.1 297.9 298.6 449.1 472.4
Australand 470.0 169.6 (240.8) 311.9
Others 264.3 60.5 68.7 785.8 25.8
Total 1,814.1 3,824.0 2,213.5 1,549.0 2,384.2
Net Profit attributable to Shareholders 1,012.7 2,759.3 1,260.1 1,053.0 1,273.1
(B) BALANCE SHEETS (S$ million)
Investment Properties 5,668.3 6,777.4 4,848.9 5,058.5 4,732.9
Development Properties for Sale and Stock 3,622.7 3,540.8 3,347.2 3,590.2 5,419.4
Associates and Joint Ventures 4,749.9 6,450.7 7,864.6 8,684.2 10,110.4
Cash and Cash Equivalents 2,684.9 4,356.0 4,228.4 8,729.7 7,190.1
Other Assets 3,866.4 4,716.4 4,794.5 4,103.4 4,247.4
Total Assets 20,592.2 25,841.3 25,083.6 30,166.0 31,700.2
Equity attributable to owners of the Company 7,367.7 9,940.9 10,681.7 13,408.3 14,170.7
Total Borrowings 8,129.8 9,916.1 9,829.3 10,312.6 10,358.0
Non-Controlling Interests and Other Liabilities 5,094.7 5,984.3 4,572.6 6,445.1 7,171.5
Total Equities & Liabilities 20,592.2 25,841.3 25,083.6 30,166.0 31,700.2
(C) FINANCIAL RATIOS
Earnings per share (cents) 36.6 98.6 37.0 26.2 29.9
Net Tangible Assets per share (S$) 2.64 3.53 3.57 3.03 3.22
Return on Shareholders’ Funds (%) 14.5 31.9 12.2 8.7 9.2
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Return on Total Assets (%) 8.7 15.7 7.9 5.5 7.1 NN
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Dividend R
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First & final dividend per share (cents) 7.0 8.0 5.5 5.5 6.0 PO
Special dividend per share (cents) 5.0 7.0 1.5 5.0 - RT
2
Total dividend per share (cents) 12.0 15.0 7.0 10.5 6.0 01
0
Dividend cover (times) 3.2 6.5 4.2 2.4 5.0
Debt Equity Ratio (net of cash) (times) 0.58 0.47 0.47 0.09 0.18
Interest Cover (times) 9.73 13.64 5.50 4.54 7.00
Note:
For changes in accounting policies, adoption of new and/or revised accounting standards, as well as changes in the presentation
of financial statements for the respective financial year under review, only the comparative figures for the previous year were
restated to conform with the requirements arising from the said changes or adoption. PA
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(1) With effect from 1 April 2008, CapitaLand Residential Limited SBU was reorganised into 3 main components, namely, 3
CapitaLand Residential Singapore, CapitaLand China Holdings and CapitaLand's holding in Australand.
FIRM
FOUNDATION
LEADING EDGE INNOVATION
CAPITAL TOWER
SINGAPORE
Pioneered the REIT
market in Asia
excluding Japan
with a total of six
REITs to-date
NUMBER OF
SHOPPING MALLS
5 to
91
JINNIU MALL
CHENGDU
CHINA
Early-mover advantage
for shopping malls
in China
ASSETS UNDER
MANAGEMENT
S$0.27B to
S$30.4B
OVERSEAS ASSETS
25% to
56%
RIVERGATE
SINGAPORE
First residential
development in
Singapore to be
accorded landmark
status by Urban
Redevelopment
Authority
THE LOFT
CHENGDU
CHINA
First earthquake-proof
high-rise condominium
community in China
FIRST
10 YEARS
THE PONDS ION ORCHARD AND
NEW SOUTH WALES THE ORCHARD
AUSTRALIA RESIDENCES
SINGAPORE
Australand is one of
the most successful Transformed the
diversified property retail landscape and
groups in Australia set new benchmarks
for super-luxury
residential
developments
in Singapore
UNITS OF
SERVICED RESIDENCES
6,000 to
OVER 26,000
RAFFLES CITY SHANGHAI ASCOTT RAFFLES PLACE SINGAPORE
CHINA
Transformed prime
Exported Singapore’s national heritage
‘Raffles City’ brand building into
globally (seven premium serviced
Raffles City residence property
developments
in China)
READY
THE STRATEGY GOING FORWARD
ASCOTT GUANGZHOU IFC
CAPACITY:
CHINA
CASH OF S$7.2B AND
NET GEARING OF 0.18
GROW CHINA BUSINESS
TARGET 45% OF CAPITALAND’S BUSINESS
THE PINNACLE
SHANGHAI
CHINA
JCUBE
SINGAPORE
BUILD ASCOTT’S
GLOBAL DOMINANCE
GROW TO 40,000 UNITS BY 2015
RAFFLES CITY HANGZHOU
CHINA
EXPAND IN
VIETNAM
GROW TOTAL ASSETS
FROM S$400M TO S$2B
OVER NEXT 3-5 YEARS
NEXT
10 YEARS
BEDOK TOWN LA FORET
CENTRE SITE BEIJING
SINGAPORE CGHINAROW FINANCIAL
SERVICES FRANCHISE
ORIGINATE NEW REAL ESTATE FUNDS AND
FINANCIAL PRODUCTS IN SINGAPORE,
CHINA, VIETNAM AND MALAYSIA
RAFFLES CITY CHENGDU
CHINA
INCREASE PRESENCE
IN SINGAPORE
SINGAPORE, A GLOBAL CITY
EXTEND LEADERSHIP IN
PAN-ASIAN SHOPPING
MALL BUSINESS
TARGET TO GROW CHINA TO 40%
OF CAPITAMALLS ASIA’S BUSINESS
HONGKOU PLAZA
SHANGHAI
CHINA
SITE AT MO LAO WARD
HANOI
VIETNAM
GROW
CAPITAVALUE HOMES
BUSINESS
BUILD 10,000-15,000 AFFORDABLE HOMES
ANNUALLY OVER NEXT 3-5 YEARS
LETTER TO
SHAREHOLDERS
DR HU TSU TAU LIEW MUN LEONG
CHAIRMAN PRESIDENT & CEO
For the fifth consecutive year, CapitaLand has recorded net
profit after tax and minority interests exceeding S$1 billion.
S$7.4b Over the last five years, CapitaLand has achieved total net
profit of S$7.4 billion. The sustained profitability is the result
Over the last five years, of the Group’s aggressive growth strategy, financial discipline
CapitaLand has and focus on capital productivity. During the year, the Group
continued to invest for future growth by committing over
achieved total net profit
S$6 billion of new investments. It entered 2011 with a strong
of S$7.4 billion
cash position of S$7.19 billion and healthy net debt-to-equity
ratio of 0.18 as a result of its successful capital recycling strategy.
This provides the Group with the flexibility and capacity to
seize opportunities quickly in a global economic environment
that experiences increasingly shorter cycles.
The achievements in FY2010 are the result of the solid
foundation laid since the inception of CapitaLand 10 years ago.
In November 2000, pursuant to the merger between Pidemco
Land and DBS Land, the newly-formed CapitaLand was largely
a Singapore-centric real estate developer with overseas assets
accounting for just 25% of its asset base. Overseas assets have
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IT
AL net debt-to-equity ratio was relatively high at 0.92 (compared
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N to 0.18 today).
D
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IM Multi-sector and
IT BUILDING THE FOUNDATION
ED multi-geography real
After a decade of transformation, CapitaLand is now one of
estate company with
Asia’s largest real estate companies, with a total group market
operations across
capitalisation of almost S$40 billion. We have grown into a
110 cities in over
multi-sector and multi-geography real estate company with
20 countries operations which span across 110 cities in over 20 countries,
largely in Asia Pacific and Europe. We have established
PAG leadership positions in various real estate sectors, namely
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homes, shopping malls, offices, serviced residences and