Focused Communication with Shareholders and Investors

2003 was an active year for investor relations activities. Keppel Land’s communication efforts centred mainly on the Company’s strategy in the region, in particular its focus in China, Thailand and Vietnam, and the demand growth drivers for residential housing in the three countries.

With more than 40% free float, it is estimated that 20-30% of Keppel Land’s shares are held by institutional investors. Hence, management continued to invest time to meet up with fund managers regularly in Singapore and overseas. As part of the Keppel Group, senior management went on a sevencity European roadshow in early 2003 to articulate the growth prospects of the Group.

Working with different broking houses, Keppel Land also participated in two other roadshows in Europe after the announcement of its full year and interim results. To broaden its shareholder base, the Company visited European and Scandinavian cities which were not on the usual roadshow circuit.

In November 2003, the Company also participated in Morgan Stanley’s Asia Pacific Summit in Singapore where it held one-on-one meetings with existing shareholders and potential investors from US, United Kingdom, Hong Kong and Singapore.

Keppel Land’s successful maiden residential project in China, One Park Avenue (OPA) in Shanghai received many visits at its 1,200-sm show gallery from fund managers and analysts from Europe, US and Asia. These visits helped to convince the international investor community of the successful execution of the Company’s China strategy.

In July 2003, Keppel Land hosted a familiarisation tour of its OPA show gallery for a group of 13 analysts and several fund managers from investment houses based in Singapore and Hong Kong. More recently in February 2004, Keppel Land hosted a similar visit to the 8 Park Avenue show gallery for interested investors from US, Europe and Asia who were attending a major China conference organised by Deutsche Bank.

Locally-stationed staff provided the investment community with insights into the Company’s China strategy, and the market environment for its upcoming residential projects in Shanghai, Beijing and Chengdu. Visits of this nature allowed analysts and fund managers to appreciate the Company’s focus on developing quality residential projects in China’s gateway cities and promising second-tier cities.

In Singapore, management continued to meet up with local analysts and fund managers regularly through group and one-on-one meetings. Luncheons with local fund managers and conference calls with overseas fund managers were conducted post-results announcements. The Company also hosted a lunch for local analysts to help them understand the Company’s key corporate developments.

Strengthening Corporate Governance

During the year, two new independent Directors were appointed to the Board. Seven of the 11 directors on the Board are independent. This allows for the Audit, Nominating and Remuneration Committees to be fully-constituted with independent Directors.

The new Directors Mr Tan Yam Pin and Mr Niam Chiang Meng were given a thorough induction to bring them up to speed on the Company’s developments. As part of professional development, two independent Directors were sent for courses at INSEAD. The Company has also embarked on Board and individual Director appraisals for its Directors.

An off-site meeting for the Board has been planned for in the second half of 2004. This will allow for greater interaction among Board members and senior management, and provide an opportunity to discuss the Company’s directions within the setting of a retreat, away from daily operations.

The bio-data of the Board and the Company’s key managers are detailed in the annual report. Apart from the Managing Director, the top five senior managers in terms of remuneration are also identified.

The Company’s share option scheme has also undergone a revamp as part of the review of its total compensation policy. Henceforth, only senior management will be entitled to share options. This change is based on the rationale that share options do not serve their role of motivating staff whose performance do not directly co-relate to the Company’s share price.

Increasing Shareholder Return

The Company will be paying a final gross dividend of 8% or 4 cents per share less tax for 2003 (2002: 7% or 3.5 cents; 2001: 6% or 3 cents). The dividend payout amounting to $22.7 million net of tax for 2003 is 17.6% higher than the $19.3 million for 2002.

In 2003, Keppel Land was the best performing stock in the EPRA/NAREIT index. The EPRA/NAREIT index is compiled jointly by the European Public Real Estate Association (EPRA) and the National Association of Real Estate Investment Trust (NAREIT).

The Company’s stock was also one of the top-performing property stocks in Singapore, offering a total return to shareholders of 65%. Total return to shareholders is computed by adding dividend to the share price at the end of the year, and dividing the sum by the share price at the beginning of the year.