Prosperity Real Estate Investment Trust · HKEX:808
Prosperity Real Estate Investment Trust — FY2024 Earnings Presentation
25 slides from Prosperity Real Estate Investment Trust's earnings presentation, March 2025
Slide 1: Final Results
Final Results For the year ended 31 December 2024 March 2025
Slide 2: Disclaimer
Disclaimer This document was prepared by ESR Asset Management (Prosperity) Limited, in its capacity as the manager (“REIT Manager”) of Prosperity Real Estate Investment Trust (“Prosperity REIT”) solely for use at the presentation to analysts in relation to the announcement of the results of Prosperi
Slide 3: Table of Contents
Table of Contents Results Highlights Financial Review Operations Review Key Takeaways Appendix Prosperity REIT 2024 Annual Results Presentation 3
Slide 4: Results Highlights
Results Highlights The Metropolis Tower Prosperity REIT 2024 Annual Results Presentation 4
Slide 5: Financials
1. Financials Revenue Net Property Distributable Distribution Income Income Per Unit 2.7% 3.9% 13.6% 15.0% HK$437.3m HK$336.4m HK$425.4m HK$214.7m HK$0.1409 HK$323.3m HK$0.1198 HK$185.4m FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 Tenant Occupancy Cost-to- Average Retention Rate revenue Effective (as at
Slide 6: Returns
2. Returns ● 100% payout ratio since listing. ● Resilient investment tool amid challenging markets. Attractive yield 1 9.7% 6.5% 3.6% 3.7% Prosperity REIT's Dividend HS Property Index Dividend HSI Dividend Yield HK 10-year Gov't Yield Yield Bond Yield Note: 1. Based on FY24 DPU of HK$0.1198 and clos
Slide 7: Financial Review
Financial Review Prosperity Millennia Plaza Prosperity REIT 2024 Annual Results Presentation 7
Slide 8: Income Statement
1. Income Statement (HK$’000) FY24 FY23 Revenue 425,368 437,314 Revenue and NPI fell by 2.7% and Total property operating expenses (102,061) (100,932) 3.9% respectively mainly due to the pressure from the vacancy and rental Net property income 323,307 336,382 levels at Prosperity Millennia Plaza and
Slide 9: Financial Position
2. Financial Position As at As at Change 31 Dec 2024 31 Dec 2023 All bank loan facilities are Total assets (HK$’m) 9,628.7 9,808.4 -1.8% unsecured with no investment properties pledged. Borrowings1 (HK$’m) 2,403.3 2,345.8 2.5% Interest Cost4 Other liabilities (HK$’m) 549.2 573.9 -4.3% Fixed : Floati
Slide 10: Capital Management
3. Capital Management • First Hong Kong REIT to achieve 100% sustainability-linked financing. Secured a new HK$60M Green and Transition Loan in 5-year tenor. • Debt maturity profile evenly spread. Debt facilities of HK$1,200M expiring in Nov 2025 are under discussion with banks. • Interest coverage
Slide 11: Portfolio Valuation
4. Portfolio Valuation Valuation by Property Type Industrial As at 31 Dec 2024 HK$356m 3.7% ● Balanced portfolio with Grade A office, Industrial/Office HK$1,956m commercial, industrial/office and industrial 20.5% buildings all in Hong Kong. ● Portfolio valuation at HK$9,547m, down 1.6% Grade A Offic
Slide 12: Operations Review
Operations Review 9 Chong Yip Street Prosperity REIT 2024 Annual Results Presentation 12
Slide 13: Property Income
1. Property Income Revenue Net Property Income (NPI) New Treasure Centre New Treasure Centre HK$18.4m HK$13.6m Prosperity Center Prosperity Center HK$39.4m HK$29.5m The Metropolis Tower 4.3% 4.2% HK$121.5m 9.3% The Metropolis Tower HK$94.4m 9.1% 28.6% 29.2% Trendy Centre Trendy Centre HK$51.8m HK$38
Slide 14: Occupancy Rates
2. Occupancy Rates (As at 31 Dec 2024) The Metropolis Tower 99.3% Prosperity Millennia Plaza 88.9% 9 Chong Yip Street 98.0% Prosperity Place 92.7% Trendy Centre 88.0% Prosperity Center (portion) 96.6% New Treasure Centre (portion) 98.5% Portfolio 94.2% Prosperity REIT 2024 Annual Results Presentatio
Slide 15: Lease Expiry Profile
3. Lease Expiry Profile Portfolio Lease Expiry Profile as at 31 Dec 2024 42.0% 42.1% 35.7% 35.4% 19.4% 19.3% 2.9% 3.2% 31-Dec-24 2025 2026 2027 and beyond By Gross Rental Area (GRA) By Gross Rental Income (GRI) Expiry Profile as at 31 Dec 2024 By Gross Rental Area By Gross Rental Income Period % of
Slide 16: Trade Mix
4. Trade Mix • A well-balanced tenant base spanning across multiple industries. • Low tenant concentration risk with no individual tenant contributed more than 2% of portfolio GRA or GRI. • In FY24, IT / Technology and retail services trades accounted for almost 40% of portfolio trade mix and new le
Slide 17: Sustainability Roadmap 2030
Sustainability Roadmap 2030 Key Initiatives in 2024 Create Long-term Value for Stakeholders ❖ Completed strategic review on ❖ Upgrade air conditioning and building management systems to Sustainability Roadmap 2030. energy-efficient models. ❖ Committed SBTi emissions reduction KPI ❖ Adopt SBTi target
Slide 18: 2024 ESG Achievements
2024 ESG Achievements Global Real Estate Sustainability Sustainalytics ESG Risk Rating upgraded to Benchmark (GRESB) Achievements “Negligible Risk” For the third consecutive year ✓ Highest Five-Star Rating ✓ Green Star ✓ Highest “A” Ranking in Public Disclosure Highest Platinum rating under BEAM Plu
Slide 19: Key Takeaways
Key Takeaways Prosperity Place Prosperity REIT 2024 Annual Results Presentation 19
Slide 20: Key Takeaways
Key Takeaways 1. Full year distribution per unit (DPU) decreased by 15.0% Y-o-Y ● Decline mainly due to the rise in finance costs, given that HIBOR stayed above 4% for most of the year. ● Distribution yield of 9.7%1. ● Maintained 100% payout ratio since listing. 2. Revenue and NPI decreased by 2.7%
Slide 21: Appendix
Appendix Prosperity REIT 2024 Annual Results Presentation 21
Slide 22: Key Milestones since IPO
Key Milestones since IPO Acquired 9 Chong Yip Street Disposed of Harbourfront First Green and Unit buyback to return Listed on Hong Kong Stock for approx. HK$1 billion, Landmark Property for approx. Transition Loan in capital to unitholders Exchange with 7 properties expanding our portfolio size HK$
Slide 23: Portfolio Map
Portfolio Map The Metropolis Trendy Centre (TC) Tower (MT) 1 5 Total Gross Rentable Area: 1.28m sq. ft. GRA: 271,418 sq. ft. GRA: 173,764 sq. ft. Prosperity Millennia Prosperity Center Plaza (PMP) 2 Property (PC) 6 GRA: 217,955 sq. ft. GRA: 149,253 sq. ft. CBD2 9 Chong Yip Street New Treasure Centre
Slide 24: Key Facts
Key Facts Key Facts as at 31 Dec 2024 IPO Date 16 Dec 2005 Unitholder Structure IPO Price HK$2.16 REIT Free CKAH Manager & 9.7% Float Directors Indicative Yield (based on FY24 DPU of HK$0.1198 and closing unit price of HK$1.24 as at 31 Dec 2024) 76.9% 17.8% 5.3% Number of Issued Units 1,547,604,384
Slide 25: Contacts
Contacts ESR Asset Management (Prosperity) Limited (as manager of Prosperity REIT) Ms. Mavis Wong Chief Executive Officer Mavis.Wong@esr.com Mr. Vicho Chung Manager, Investments & Investor Relations Vicho.Chung@esr.com Mr. Kenny Kwong Assistant Manager, Investor Relations & Research Kenny.Kwong@esr.
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