TIDMASPL
RNS Number : 2538X
Aseana Properties Limited
18 November 2014
18 November 2014
Aseana Properties Limited
("Aseana" or "the Company")
Interim Management Statement and Quarterly Investor Update
Aseana Properties Limited (LSE: ASPL), a property developer in
Malaysia and Vietnam, listed on the Main Market of the London Stock
Exchange, today issues the following Interim Management Statement
for the period 1 July 2014 to 17 November 2014.
The Company has also issued its Quarterly Investor Update for
the quarter ended 30 September 2014, a copy of which can be
obtained from Aseana's website at:
http://www.aseanaproperties.com/quarterly.htm.
Operational highlights:
-- The Aloft Kuala Lumpur Sentral Hotel ("Aloft") won the Hotel
category in the FIABCI Malaysia Property Awards. The hotel was
also awarded the Best Short Stay Excellence Award by Expatriate
Lifestyle for the Best of Malaysia Travel Awards. Aloft's average
occupancy rate stood at 64% for the nine-month period ended
30 September 2014.
-- Sale of properties at SENI Mont' Kiara advanced marginally to
92% compared to 91% recorded in August 2014. A further 5% of
properties are reserved with deposits paid.
-- The RuMa Hotel and Residences ("The RuMa") achieved 45% sales
based on sales and purchase agreements signed, with a further
6% reserved with deposit paid.
-- Occupancy rate of 42% was recorded at the Four Points by Sheraton
Sandakan Hotel ("FPSS") for the nine-month period ended 30 September
2014.
Financial highlights:
-- Unaudited revenue of US$46.24 million for the nine-month period
ended 30 September 2014 (30 September 2013 (unaudited): US$21.00
million)
-- Unaudited profit before tax for the nine-month period ended
30 September 2014 of US$12.37 million (30 September 2013 (unaudited):
loss of US$17.21 million)
-- Unaudited profit after tax for the nine-month period ended 30
September 2014 of US$3.48 million (30 September 2013 (unaudited):
loss of US$19.28 million)
-- Unaudited consolidated comprehensive income of US$3.40 million
for the nine months period ended 30 September 2014 (30 September
2013 (unaudited): loss of US$22.42 million)
-- Unaudited net asset value of US$163.86 million at 30 September
2014 (30 June 2014 (unaudited): US$154.63 million) or US$0.773
per share* (30 June 2014 (unaudited): US$0.729 per share)
-- Unaudited realisable net asset value of US$266.64 million at
30 September 2014 (30 June 2014 (unaudited): US$270.82 million)
or US$1.258 per share* (30 June 2014 (unaudited): US$1.277 per
share)
* NAV per share and RNAV per share as at 30 September 2014 are
calculated based on 212,025,000 voting shares (30 June 2014:
212,025,000 voting shares).
The Company has also published its Quarterly Investment Update
(including updates on projects and RNAV figures) for the period to
30 September 2013, which can be obtained on its website at
www.aseanaproperties.com/quarterly.htm.
Following the recent publication of the FCA's Policy Statement
(PS14/15), the requirement for listed companies to produce interim
management statements has been removed. In light of this rule
change, the Company will no longer publish interim management
statements going forward. However, Shareholders will continue to
receive meaningful and timely reporting through the Company's
Quarterly Investment Update and through ad hoc regulatory
announcements as required under the FCA's Disclosure and
Transparency Rules.
For further information:
Aseana Properties Limited Tel: 603 6411 6388
Chan Chee Kian Email: cheekian.chan@ireka.com.my
N+1 Singer Tel: 020 7496 3000
James Maxwell (Corporate Finance) Email: james.maxwell@n1singer.com
/Sam Greatrex (Sales) /sam.greatrex@n1singer.com
Tavistock Communications Tel: 020 7920 3150
Jeremy Carey / James Verstringhe Email: jcarey@tavistock.co.uk
Notes to Editors:
London-listed Aseana Properties Limited (LSE: ASPL) ("Aseana")
is a property developer investing in Malaysia and Vietnam.
Ireka Development Management Sdn Bhd ("IDM") is the exclusive
Development Manager for Aseana. It is a wholly-owned subsidiary of
Ireka Corporation Berhad, a company listed on the Bursa Malaysia
since 1993, which has over 47 years of experience in construction
and property development. IDM is responsible for the day-to-day
management of Aseana's property portfolio and the introduction and
facilitation of new investment opportunities.
Commentary
For the nine months ended 30 September 2014, Aseana and its
group of companies (the "Group") recorded unaudited revenue of
US$46.24 million (30 September 2013 (unaudited): US$21.00 million),
which was mainly attributable to the sale of completed units in
SENI Mont' Kiara and Tiffani. No revenue was recognised for The
RuMa, in accordance with IFRIC 15 - Agreements for Construction of
Real Estate which prescribes that revenue be recognised only when
the properties are completed and occupancy permits are issued.
The unaudited other income of the Group stood at US$38.76
million for the nine months ended 30 September 2014 (30 September
2013 (unaudited): US$9.59 million). This was mainly attributable to
revenues from ASPL's four operating assets totalling US$18.86
million; a gain on disposal of land to AEON Vietnam Co. Ltd. ("AEON
Vietnam") of US$13.52 million; and a gain on the disposal of the
Company's 40% stake in Excellent Bonanza Sdn. Bhd. ("EBSB") of
US$5.54 million.
The Group recorded an unaudited profit before tax for the period
of US$12.37 million (30 September 2013 (unaudited): loss of
US$17.21 million). The Group's unaudited profit after tax for the
nine-months ended 30 September 2014 stood at US$3.48 million (30
September 2013 (unaudited): loss of US$19.28 million). This
includes profit attributable to SENI Mont' Kiara and Tiffani of US$
6.65 million, gains on disposal of land to AEON Vietnam and
disposal of 40% stake in EBSB of US$5.35 million and US$5.07
million respectively; offset by operating losses and financing
costs largely attributable to Four Points by Sheraton Sandakan
Hotel and Harbour Mall Sandakan totalling US$4.24 million, together
with operating losses and financing costs of City International
Hospital of US$7.49 million.
Total other comprehensive expense include a foreign currency
translation loss of US$0.61 million (30 September 2013 (unaudited):
loss of US$5.92 million) which was attributable to the weakening of
Ringgit against the US dollars and an increase in fair value of the
share of investment in Nam Long Investment Corporation of US$0.52
million. This resulted in an unaudited consolidated comprehensive
income for the period of US$3.40 million (30 September 2013
(unaudited): loss of US$22.42 million).
Unaudited net asset value for the Group for the period under
review increased to US$163.86 million (30 June 2014 (unaudited):
US$154.63 million) or US$0.773 per share (30 June 2014: US$0.729
per share) mainly due to gains on the disposal of the 40% stake in
EBSB and on the disposal of land to AEON Vietnam during the period.
However, unaudited realisable net asset value decreased to
US$266.64 million as at 30 September 2014 (30 June 2014
(unaudited): US$270.82 million) or US$1.258 per share (30 June 2014
(unaudited): US$1.277 per share) as a result of the weakening of
the Ringgit against the US Dollars.
The cash and cash equivalent of the Group stood at US$40.91
million as at 30 September 2014 (30 June 2014: US$26.91 million) of
which US$9.14 million was on lien to support the Medium Term Notes
("MTN") programme. The cash placed in fixed deposits and money
market funds (classified under held-for-trading financial
instrument) stood at US$28.34 million as at 30 September 2014,
compared to US$19.17 million as at 30 June 2014. The higher cash
and cash equivalents are mainly attributable to better cash
collections from the sale of properties at SENI Mont' Kiara and
Tiffani, as well as the cash proceeds received from the disposal of
the 40% stake in EBSB.
The borrowings of the Group as at 30 September 2014 have
decreased to US$221.66 million, compared to US$233.25 million as at
30 June 2014, mainly due to repayments of loan facilities utilising
proceeds from sale of land to AEON Vietnam.
Performance Summary
Period ended Period ended
30 September 30 September
2014 2013
(unaudited) (unaudited)
------------------------------------ -------------- --------------
Profit/ (Loss) before tax (US$ m) 12.37 (17.21)
Profit/ (Loss) after tax (US$ m) 3.48 (19.28)
Total comprehensive income/ (loss)
(US$ m) 3.40 (22.42)
------------------------------------ -------------- --------------
Period ended Period ended
30 September 30 June 2014
2014
(unaudited) (unaudited)
---------------------------------------- -------------- --------------
Net asset value ("NAV") (US$ m) 163.86 154.63
NAV per share (US$) (1) 0.773 0.729
Realisable net asset value ("RNAV")
(US$ m)(4) 266.64 270.82
RNAV per share (US$) (1) 1.258 1.277
Cash and bank equivalents (net of bank
overdrafts) (US$ m) 40.91 26.91
Debt-to-equity ratio (%) (2) 126.43 142.31
Net debt-to-equity ratio (%) (3) 102.88 125.65
---------------------------------------- -------------- --------------
Notes: (1) NAV per share and RNAV per share as at 30 September
2014 are calculated based on 212,025,000 voting shares (30 June
2014: 212,025,000 voting shares)
(2) Debt-to-equity ratio = (Total Borrowings ÷ Total Equity) x 100% (3) Net debt-to-equity ratio = (Total Borrowings less Cash and Cash Equivalent and Held-for-trading Financial Instrument ÷ Total Equity) x 100% (4) Aseana has valued each project based on either net asset value (using cost or fair value basis) or market values (using discounted cash flow method or residual/comparison method) for the RNAV calculation. RNAV data is unaudited. NAV and RNAV contribution of
each project are listed below:
Projects Project NAV as Project RNAV
at as at 30 September
30 September 2014
2014 US$ m
US$ m (unaudited)
(unaudited)
---------------------------------- --------------- --------------------
Malaysian projects:
Tiffani by i-ZEN 5.32 5.32 (1)
Sandakan Harbour Square 37.04 45.44 (3)
SENI Mont' Kiara 46.12 68.94 (2)
Aloft Kuala Lumpur Sentral hotel (2.84) 44.50 (3)
The RuMa Hotel & Residences 13.44 13.44 (1)
Kota Kinabalu Seafront Resort
& Residences 12.30 16.04 (3)
Vietnamese projects:
International Hi-Tech Healthcare
Park 15.60 34.77 (3)
City International Hospital 9.77 11.07 (3)
Equity investment in Nam Long 13.22 (4) 13.22 (4)
Waterside Estates 8.75 8.75 (1)
Others 0.03 0.04 (5)
Total Project NAV / RNAV 158.75 261.53
Cash and bank (6) 5.55 5.55
Other assets & liabilities (0.44) (0.44)
---------------------------------- --------------- --------------------
Total NAV / RNAV 163.86 266.64
---------------------------------- --------------- --------------------
NAV / RNAV per share (US$) 0.773 1.258
---------------------------------- --------------- --------------------
Notes:
1 Projects carried at cost.
2 Market value based on the valuation prepared on discounted
cash flows by international independent valuers as at 30 June 2014,
which excludes any taxes; whether corporate, personal, real
property or otherwise, that are payable. These market values are
further adjusted for assumed taxes by the Manager.
3 Market values based on residual/comparison/investment method
of land/property value by international independent valuers.
4 Fair value determined with reference to closing market price as at 30 September 2014.
5 Comprise of projects which have been discontinued.
6 Relating to cash and cash equivalent solely at Aseana company level.
7 Please see Valuation Methodology for further information.
Property Portfolio Highlights
Malaysia
Continuing its positive performance, sale of properties at SENI
Mont' Kiara is progressing well achieving 92% sales to date. A
further 30 units, representing approximately 5% of sales, are
currently reserved by interested buyers, pending execution of the
sales and purchase agreements. The Manager has commenced marketing
efforts on penthouses and plaza units at SENI Mont' Kiara.
Meanwhile, sales at The RuMa Hotel and Residences progressed to
45% to date, based on sales and purchase agreements signed, with a
further 6% being reserved with deposit paid. Sale of units at The
RuMa was affected by cooling measures imposed by the Government and
the Manager continues to explore all opportunities to enhance sales
at The RuMa with renewed marketing efforts which include numerous
marketing events abroad, the latest being at Taipei and Manila.
Construction of the main building is in-progress and completion is
expected in 2017.
The 482-room Aloft hotel was awarded the prestigious FIABCI
Malaysia Property Awards 2014 in the Hotel category in recognition
of its development concept and design, marketing appeal and
sustainability. Occupancy rate at Aloft stood at 64% for the nine
months ended 30 September 2014.
Average occupancy rate at FPSS stood at 42% for the nine months
ended 30 September 2014. Tourism and business environment in Sabah
continue to be adversely impacted by the flight tragedies along
with several kidnapping cases off the east coast of Sabah, over the
last eight months. Adverse travel advisory notices concerning the
coastal area of eastern Sabah, issued by countries such as the
United States of America, United Kingdom, Canada, Australia and New
Zealand are still in place. In Budget 2015, the Malaysian
government announced that RM660 million (US$201 million) will be
allocated to Eastern Sabah Security Command ("ESSCOM") to further
enhance the safety and security conditions of eastern Sabah. The
Management of FPSS continues to look into ways and opportunities to
improve on the efficiency of operations of the hotel, and also to
drive business from local corporates. To date, tenancy rate of
Harbour Mall Sandakan remained unchanged at approximately 47.5% as
at October 2014. The Manager is currently reviewing the tenancy mix
of Harbour Mall Sandakan to improve its performance.
Vietnam
The performance of the City International Hospital ("CIH") to
date has been below expectations largely as a result of lower than
expected patient volumes and challenges in human resources. As at
26 October 2014, CIH registered 2,390 inpatient days with average
revenue per inpatient admission of US$2,138. Outpatient visits as
at 26 October 2014 were 8,649 visits with average revenue per visit
of US$83. The Manager is working closely with Parkway, the operator
of CIH, to improve performance through targeted sales and marketing
campaigns, and introduction of new service lines offered by
CIH.
The International Monetary Fund cut its outlook on the global
economic growth in early October 2014 and cited that the recovery
continues to be uneven. As a result, the equity market experienced
a global sell off and the Vietnam Stock Index ("VN Index") is once
again on a gradual declining trend. However, Fitch Rating has in
November 2014 upgraded Vietnam sovereign rating from "B+" to "BB-"
due to improvement in the country's economy and finances. At the
date of this publication, Nam Long shares closed at VND17,900 per
share, compared to VND18,000 per share as at 30 September 2014.
Sales Update as at 31 October 2014
Projects % sold*
-------------------------------- --------
Tiffani by i-ZEN 99%
SENI Mont' Kiara
* Proceeds received 90%
2%
* Pending completion
The RuMa Hotel and Residences 45%
-------------------------------- --------
* Based on sales and purchase agreements signed. Please see
Snapshot of Property Portfolio below for further information on
existing investments.
Construction Update as at 31 October 2014
The RuMa Hotel and Residences, Kuala Lumpur, Malaysia
Piling works commenced in February 2013 and were completed in
October 2013. Construction of main building works commenced in
October 2013 and is targeted to complete in 2017.
Snapshot of Property Portfolio
Tiffani by i-ZEN, Kuala Lumpur, Malaysia
399 units of luxury condominiums within two 28-storey and a
36-storey block
Expected GDV: US$124 million
Effective Ownership: 100%
Project NAV as at 30/9/2014: US$5.32 million
Project RNAV as at 30/9/2014: US$5.32 million (1)
Status:
- 99% sold based on sales and purchase agreements signed
- Targeted sale: 100% sales by Q2 2015
Sandakan Harbour Square, Sandakan, Sabah, Malaysia
129 retail lots, Harbour Mall Sandakan, 299-room Four Points by
Sheraton Sandakan hotel
Expected GDV: US$157 million
Effective Ownership: 100%
Project NAV as at 30/9/2014: US$37.04 million
Project RNAV as at 30/9/2014: US$45.44 million (3)
Status:
- Retail lots: 100% sold
- Harbour Mall Sandakan and Four Points by Sheraton Sandakan Hotel commenced operation in 2012
- Planned sale in year 2017
SENI Mont' Kiara, Kuala Lumpur, Malaysia
605 units of luxury condominiums within two 12-storey and two
40-storey blocks
Expected GDV: US$490 million
Effective Ownership: 100%
Project NAV as at 30/9/2014: US$46.12 million
Project RNAV as at 30/9/2014: US$68.94 million (2)
Status:
- Winner of FIABCI Malaysia Property Award 2013 for Best High
Rise Residential Development and FIABCI Prix d'Excellence Silver
Award 2014 for High Rise Residential Development
- 92% sold based on sales and purchase agreements signed
- Targeted sales: 97% by end of 2014; 100% in year 2015
Aloft Kuala Lumpur Sentral hotel, Kuala Lumpur, Malaysia
482-room business-class hotel
Effective Ownership: 100%
Project NAV as at 30/9/2014: -US$2.84 million
Project RNAV as at 30/9/2014: US$44.50 million (3)
Status:
- Hotel managed by Starwood
- Opened on 22 March 2013
- Winner of FIABCI Malaysia Property Award 2014 for Hotel category
- Winner of the Best Short Stay Excellence Award by Expatriate
Lifestyle for the Best of Malaysia Travel Awards
- Planned sale in year 2015
The RuMa Hotel and Residences Project, Kuala Lumpur,
Malaysia
199 luxury residences and a 253-room boutique hotel
Expected GDV: US$197 million
Effective Ownership: 70%
Project NAV as at 30/9/2014: US$13.44 million
Project RNAV as at 30/9/2014: US$13.44 million (1)
Status:
- Construction work commenced in February 2013 and opened for sale in March 2013
- Off-plan sales for residences and hotel suites
- 45% sold based on sales and purchase agreements signed
- Completion expected in 2017
Seafront resort & residential development, Kota Kinabalu,
Sabah, Malaysia
Boutique resort hotel, villas and homes on 80 acres
Expected GDV: US$16 million
Effective Ownership (Resort villas and hotel): 100%
Effective Ownership (Resort homes): 80%
Project NAV as at 30/9/2014: US$12.30 million
Project RNAV as at 30/9/2014: US$16.04 million (3)
Status:
- The Board has decided to dispose of the land; buyers are being sought
- Planned sale in year 2015
International Hi-Tech Healthcare Park, Binh Tan District, Ho Chi
Minh City, Vietnam
37 hectares of commercial and residential development with
healthcare theme
Expected GDV: US$670 million
Effective Ownership: 67.2%
Project NAV as at 30/9/2014: IHTHP: US$15.60 million; CIH:
US$9.77 million
Project RNAV as at 30/9/2014: IHTHP: US$34.77 million(3) ; CIH:
US$11.07 million(3)
Status:
- Phase 1: CIH is managed by Parkway Pantai Limited
- Construction of CIH completed in March 2013 and business
commenced in September 2013 with limited services; official opening
in January 2014
- Planned partial divestment of CIH in short term and full divestment in year 2016
- Other parcels of land to be developed or sold on as-is basis
Equity Investment in Nam Long Investment Corporation, Ho Chi
Minh City, Vietnam
Listed equity investment
Effective Ownership: 12.9%
Project NAV as at 30/9/2014: US$13.22 million (4)
Project RNAV as at 30/9/2014: US$13.22 million (4)
Status:
- Listed on Ho Chi Minh Stock Exchange on 8 April 2013
- Share price as at 17 November 2014: VND17,900 per share
Waterside Estates, District 9, Ho Chi Minh City, Vietnam
37 villas and 460 units within high-rise apartments
Expected GDV: US$100 million
Effective Ownership: 55%
Project NAV as at 30/9/2014: US$8.75 million
Project RNAV as at 30/9/2014: US$8.75 million (1)
Status:
- Development plan approved
- Assessing divestment and/or development options
Notes:
1. Projects carried at cost
2. Market value based on the valuation prepared on discounted
cash flows by international independent valuers as at 30 June 2014,
which excludes any taxes; whether corporate, personal, real
property or otherwise, that are payable. These market values are
further adjusted for assumed taxes by the Manager
3. Market values based on residual/comparison/investment method
of land/property value by international independent valuers
4. Fair value determined with reference to closing market price as at 30 September 2014
5. All NAV and RNAV data are unaudited
Exchange rate - 30 September 2014: US$1:3.2808; US$1:VND21,220;
30 June 2014: US$1:RM3.2113; US$1:VND21,315 (Source: Bank Negara
Malaysia, State Bank of Vietnam)
Valuation Methodology
The Realisable Net Asset Value of the Company as at 30 September
2014 has been computed by the Company based on the Company's
management accounts for the period ended 30 September 2014 and the
Market Values of the property portfolio as at 30 June 2014. The
Market Value of the property portfolio is determined on a
discounted cash flow basis, comparison method, residual method or
investment method on land or properties values by an independent
firm of valuers. The Market Values, excluded any taxes; whether
corporate, personal, real property or otherwise, that are
payable.
The valuations by independent firm of valuers have been
performed in accordance with the International Valuation Standards
("IVS") or in accordance with the Royal Institution of Chartered
Surveyor Guidelines ("RICS").
In arriving at the Realisable Net Asset Value of the Company,
the Company has made assumptions on potential taxes deductible from
Market Values, where applicable. These may include corporate income
tax, real property gains tax or any transactional taxes, where
applicable.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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