CapitaLand Investor Day 2010
Confidence soars as management shares vision
Issue: Nov 2010
CapitaLand Investor Day 2010 received overwhelming response from retail investors with 1,500 shareholders balloted to attend the event at Resorts World Sentosa
It was a day of vision, inspiration and increased confidence.
CapitaLand’s senior management including Mr Liew Mun Leong, President and CEO of CapitaLand Group, Mr Olivier Lim, CFO of CapitaLand Limited, Mr Wen Khai Meng, CIO of CapitaLand Limited and Mr Lim Ming Yan, CEO of The Ascott Limited shed light on the Group’s future growth strategies to about 1,500 CapitaLand shareholders at the CapitaLand Investor Day 2010.
Held at Resorts World Sentosa in Singapore on October 9, the CapitaLand Investor Day was one of the activities organised to celebrate the Group’s 10th anniversary this year. It was also part of the continual efforts to reach out to CapitaLand’s retail investors. Receiving an overwhelming response of more than 13,000 who registered their interest, only 1,500 successfully balloted to attend the event.
At the event, besides giving an insight into the key thrusts of CapitaLand’s financial transformation, CapitaLand’s management shared on the Group’s economic and market outlook for Singapore, Vietnam and China.
Moving forward into the next decade, CapitaLand has a multi-prong growth strategy in place. Asia is powering up the economy in recent years, hence it will be the base from where it grows. CapitaLand will extend its leadership in its Pan-Asian shopping mall business, grow Ascott’s global portfolio to 40,000 units by 2015 and extend its financial services franchise in the region.
Mr Liew shares on CapitaLand’s transformation into Asia’s largest real estate companies today
In particular, CapitaLand targets to grow its assets in Vietnam from the current S$400 million to $2 billion over the next three to five years. While in China, CapitaLand will continue to be a long term investor, growing its portfolio to 35 to 45 per cent of its Group business. There are also plans to expand its portfolio into affordable housing in these two countries.
Though land is scarce in Singapore, it will remain an important market for CapitaLand, accounting for 35 to 40 per cent of the Group’s total assets. In the pipeline are Farrer Court, The Nassim and the mixed development at the newly acquired Bedok Town Centre Site. CapitaLand will replenish its land bank when the right opportunity arises to acquire suitable sites in the market.
(from left) Mr Olivier Lim, CFO of CapitaLand Limited, Mr Liew Mun Leong, President and CEO of CapitaLand Group, Mr Wen Khai Meng, CIO of CapitaLand Limited and Mr Lim Ming Yan, CEO of The Ascott Limited readily gave insightful responses to a wide range of questions from retail investors
Bearing in mind the big picture, Mr Liew ultimately assured shareholders of CapitaLand’s commitment to consistently create sustainable shareholder value. He added, “Over the past decade, we have achieved a total net profit of S$7.5 billion and distributed S$3.2 billion to our loyal shareholders in dividends and an in-specie distribution. Total shareholder return since inception is S$11.9 billion, a 172 per cent gain.”
With such an attractive rate of shareholder return, CapitaLand has had a loyal following of shareholders since its inception. Take retail investor, Leck Kwong Joo for instance.
“I was a shareholder since DBS Land days before the merger,” said the 39-year-old scientist. “I appreciate this kind of investor events especially this being held on a weekend for the convenience of those who are working and unable to attend weekday investor events. One of the key things I use to gauge whether to increase my shareholding in a company is by looking at the quality of management. I’m glad to hear that the management cares a lot about the solvency of the company so this gives me the security to put my hard-earned cash into the company.”
Assurance with Openness
Leck was one of the many investors who eagerly raised questions during the lively Q & A session. It was an engaging session with investors’ queries ranging from the subject of overseas expansion to succession planning, to which Mr Liew responded that he “takes succession planning very seriously”. He shared the view that without proper talent management, the organisation will fail, and assured investors that there are some potential talents in CapitaLand with the mobility to move upwards. He added that the successor will be an insider who has been groomed by the organisation over the years.
“If we need to go to an outsider, my opinion is that we haven’t been successful in the succession plan,” said Mr Liew.
Shareholders engaged in a lively Q & A session with CapitaLand’s senior management at the CapitaLand Investor Day
There was a light-hearted moment when an investor thanked CapitaLand management for their leadership, which has seen the organisation deliver profits of more than $1 billion for four consecutive years. But she went on to say that despite so, share price stayed at half of what it was during the pre-financial crisis days. So it begged the question: Is there a possibility of it rising back to the pre-financial crisis prices?
Mr Liew candidly thanked the investor for the much-awaited opportunity to explain about the current share price and clarified that CapitaLand did a rights issue in 2009 at $1.30 per right share for every two shares held by shareholders. The rights share price was a discount of about 40 per cent, so for shareholders who took hold of that opportunity, the right shares would have converted to about three times profit by now. As such, even though today's share price stays below pre-financial crisis prices, shareholders would still have enjoyed a significant return on investment over the past year.
Mr Liew’s upfront approach to answering the shareholders’ questions has given many increased confidence in the Group.
“Mr Liew is surprisingly forthright when answering the questions,” remarked 47-year-old Tan Boon Leong. “So I was very satisfied and it gave me the confidence in CapitaLand.”
31-year-old Lei Suan also gave the thumbs up for the Q & A session. “It was very nice of them to open up to the audience to ask any questions,” she said. “The management was very insightful and detailed with their answers.”
Celebrating a Decade of Building People
During the event, Mr Liew took everyone down memory lane by sharing about the story of CapitaLand since year 2000. Over the past ten years, CapitaLand has braved the storms of the Asian Financial Crisis, Singapore’s deepest recession, 911, SARs and the recent Global Financial Crisis just to name a few, to emerge as one of Asia’s largest real estate company today.
Celebrating CapitaLand’s transformation in a decade with the launch of the commemorative book “10 Years: Building People” by CapitaLand senior management
The Group’s transformation over the last 10 years from a Singapore-centric company into an international real estate company and a leader in the Asian real estate sector is well detailed in the commemorative book entitled “10 Years: Building People”. The book was launched during the event and given as a door gift for every shareholder present.
As CapitaLand Investor Day 2010 came to a close, shareholders had a chance to freely interact and engage with CapitaLand senior management. They were also given complimentary entry to Universal Studios’ the Hollywood Walk of Fame and New York Street thereafter.
Mr Liew said, “Investor Day has been a great success at increasing investor access to management and helping us connect better with our investors.”
With greater insights comes greater confidence, CapitaLand Investor Day 2010 was certainly worthwhile for both shareholders and CapitaLand.
Shareholders who were not balloted to attend the event may watch the event proceedings of the CapitaLand Investor Day over the web at www.capitaland.com .