Slide 1: 2023 Annual Results Analyst Briefing
2023 ANNUAL RESULTS ANALYST BRIEFING Hysan Development Company Limited 22 February 2024 1
Slide 2: Disclaimer
Disclaimer This document has been prepared for general information purposes only, and is not, and should not be construed as an offer to sell, or a solicitation of an offer to buy any securities. Information and estimates contained and opinions expressed herein have been complied in good faith by Hy
Slide 3: Keynote Address
Keynote Address Chairman Ms. Irene Lee 3
Slide 4: 2023: A mix of challenges and opportunities
2023 : A mix of challenges and opportunities A year of global upheaval as the world gradually recovered from the pandemic. Many continuing and new challenges were impediments to recovery Hong Kong was not immune to the impact of external shocks ❖ While there were improvements, especially in tourist
Slide 5: Dual-engine portfolio + Community Business Model provide resilience and strength
Dual-engine portfolio + Community Business Model provide resilience and strength Retail Revenue (HK$M) The demand for expansion by our key retail anchor tenants gave us the confidence and impetus to the strategic rejuvenation Retail turnover slightly increased despite approximately 10% of our retail
Slide 6: Dual-engine portfolio + Community Business Model provide resilience and strength
Dual-engine portfolio + Community Business Model provide resilience and strength Office Portfolio Occupancy Despite the structural changes in the office sector, our office portfolio has demonstrated resilience and settled at a relatively stable occupancy rate of 89% Lee Gardens is a highly desirable
Slide 7: Business and Operation Review
Business and Operation Review Executive Director and Chief Operating Officer Mr. Ricky Lui 7
Slide 8: 2023 Annual Results
2023 Annual Results Revenue (HK$M) Year-end Occupancy Retail 97% (2022 : 99%) YoY -7% Office 89% (2022 : 90%) 3,460 3,210 Residential 60% (2022 : 61%) (47%) 1,643 (48%) 1,533 Approximately 10% of our retail area were taken off for major enhancement which affected the (7%) 239 retail revenue (6%) 205
Slide 9: Office
Office OCCUPANCY Office Tenant Profile by Area (2023 Year-end) 89% Others 15.0% Banking, Wealth Management & Finance Marketing 21.4% With a slower-than-expected economic recovery, 2.5% Hong Kong’s office market remained weak Education 3.2% Retailers 5.5% Landlords defended occupancy with more flexib
Slide 10: Retail
Retail Turnover Rent Trend (2020 - 2023) OCCUPANCY YoY ↑45% 97% Recovery was impeded by a challenging external environment and a strong Hong Kong dollar 2020 2021 2022 2023 Retail sector is undergoing a transformation Hysan Tenant Sales Trend (2020 - 2023) ➢ The focus of tourists has shifted from sh
Slide 11: Connect people and Curate Communities through diverse offerings
Connect people and Curate Communities through diverse offerings Home of Luxury 11
Slide 12: Home of Luxury Flagships
Home of Luxury Flagships LEE GARDEN ONE The arcade was unveiled in late 2023 Renovations of key luxury anchor tenants’ flagship stores will be completed in stages by 2024 and 2025 LEE GARDEN FIVE Entrance and office lobby refurbishment completed in mid-2023 12
Slide 13: Hysan Place #URBANHOOD
HYSAN PLACE #URBANHOOD Unveiled a brand-new lifestyle hub on the basement floors in late 2023 Nearly 40 lifestyle, entertainment and F&B brands from various Asian cities, including some making their debut in Hong Kong Offers an engaging experience that caters to all generations and more… 13
Slide 14: Marketing Initiatives and Loyalty Programmes
Marketing Initiatives and Loyalty Programmes Member Retention Resumed to pre-pandemic retention levels and increased CA sales Unveiling of #UrbanPark and Playdot Skateboarding events at #UrbanPark and family fun at Playdot enhanced retail experience and appeal Festive Boost for Tenants Seasonal déco
Slide 15: Core Expansion and Pillar Updates
Core Expansion and Pillar Updates GBA FLEX Solution in new office ecosystem, showing good performance CAROLINE HILL LEE GARDENS VILLA LUCCA ROAD SHANGHAI NEW FRONTIER Construction works The enhancement ¼ of houses and are on track; work of the office apartments were Progressing as tower was complete
Slide 16: Sustainability
Sustainability 16
Slide 17: Sustainability Performance (as at 31/1/2024)
Sustainability Performance (as at 31/1/2024) Benchmarking & Rating Remained as Low Risk Remained 4-star Remained AA Remained A 2024 ESG Top-Rated Improved to 3.5 / 5 Companies List Awards and Accolades HKMA Hong Kong HKIE The Excellent Building HKICPA Best Corporate HKIRA 9th Investor Relations HKGB
Slide 18: Environment Performance (as at 31/1/2024)
Environment Performance (as at 31/1/2024) 38% 21% Carbon intensity Reduction in purchased (scope of 1 and 2) electricity intensity from baseline from baseline over 2.7 mn sq. ft. Committed by GFA is Science Based Target green building certified Initiative (SBTi) 18
Slide 19: Promotes Green Mobility at Lee Gardens
Promotes Green Mobility at Lee Gardens Leveraging the Community Business Model, Hysan promotes green mobility in the Lee Gardens community The Largest EV Charging Hub on Hong Kong Enhancing Connectivity and Accessibility Island A weather-proof pedestrian link system 160+ EV chargers now available in
Slide 20: Financial Management
Financial Management Chief Financial Officer Mr. Roger Hao 20
Slide 21: Financial & Capital Management
Financial & Capital Management Shareholders’ Fund HK$ 67.2b NAV per share HK$ 65.4 DPS HK$ 1.08 21
Slide 22: Financial & Capital Management
Financial & Capital Management Debt Maturity Profile as at 31 Dec 2023 Key Financial Metrics (HK$ m) Net Gearing* Effective Interest Rate 3,165* 27.2% 4.2% Fixed Rate Debt Ratio Average Debt Maturity 4,747 62% 4.5 years Undrawn Committed Sustainable Finance Facilities 4,655 1,500 3,774 150 1,272 1,6
Slide 23: Indicative Cap Rates
Indicative Cap Rates 31 Dec 2023 31 Dec 2022 Retail 5.25% - 5.50% 5.25% - 5.50% Office 4.25% - 5.00% 4.25% - 5.00% Residential 3.75% 3.75% 23
Slide 24: Thank You
THANK YOU Ww
Slide 25: 2023 Annual Results Analyst Briefing
2023 ANNUAL RESULTS ANALYST BRIEFING Hysan Development Company Limited 22 February 2024 25