Link Real Estate Investment Trust · HKEX:823
Link Real Estate Investment Trust — The Link Real Estate Investment Trust — FY2013/2014 Earnings Presentation
19 slides from Link Real Estate Investment Trust's earnings presentation, Jun 4, 2014
Slide 1: Annual Results Presentation Press Conference 2013/2014
Annual Results Presentation Press Conference 2013/2014 4 June 2014
Slide 2: Building our Business Model on Sustainability Framework
Building our Business Model on Sustainability Framework Revenue Net property income HK$7,155M HK$5,202M +10.0% yoy +12.7% yoy DPU HK165.74 cents +13.2% yoy 2013/2014 Annual Results P.2 P.2
Slide 3: Key Achievements towards a Sustainable Business
Key Achievements towards a Sustainable Business Strong financial performance Staff engagement Continuous growth in Achieved 48% participation rate performance since IPO in EUPP as at 31 Mar 2014 and over 80% retention Appointment of new independent The Link Together Initiatives director 10 community
Slide 4: 2013/2014 Highlights
2013/2014 Highlights 2013/2014 Annual Results P.4 P.4
Slide 5: Operational Performance – Retail Growth Persisted
Operational Performance – Retail Growth Persisted Retail Income Performance HK$M 7,000 Year Year 6,000 ended ended 5,326 31 Mar 31 Mar 4,872 293 5,000 2014 2013 258 695 640 Occupancy (%) 94.4 94.1 4,000 3,000 Average unit rent ($) 42.1 38.4 2,000 4,338 3,974 NPI margin (%) 73.7 72.3 1,000 Reversion
Slide 6: Operational Performance – Encouraging Tenants’ Performance
Operational Performance – Encouraging Tenants’ Performance (3) Tenants’ Gross Sales (1) Retail Trade Mix by Monthly Rent YoY (%) 17.2% 24.9% 16.0% 14.0% 8.3% 12.1% 12.0% 10.0% 9.6% 10.0% 9.1% 11.1% 8.3% 7.9% 8.0% 6.8% 22.9% 5.6% 1.3% 6.0% 14.3% 4.0% 2.0% Food and Beverage Supermarkets and Foodstuff
Slide 7: Operational Performance – Car Park Growth Continued
Operational Performance – Car Park Growth Continued Car Park Income Performance Car Park Rental Utilisation Rate (HK$’M) (%) Year Year 2,500 100% ended ended 31 Mar 31 Mar 88.1% 2014 2013 90% 2,000 83.5% Utilisation of car park space (%) 88.1 83.5 1,494 80% 1,500 Car park income per space per 1,315
Slide 8: Property Expenses – Maintain at Sustainable Level
Property Expenses – Maintain at Sustainable Level Total Property Expenses Net Property Income Margin (HK$’M) (%) Property managers’ fees increased mainly 3,000 72.7% 80% due to the increase in statutory minimum 70.9% wage in May 2013 2,500 60% 1,890 1,953 2,000 Effective energy management measures t
Slide 9: Asset Management – Revenue Drivers
Asset Management – Revenue Drivers Introduce Improve Refine innovative Support service tenant mix marketing tenants’ sales standards campaigns Selected Newly Joined Tenants Selected Existing Tenants Expanding in Our Portfolio Active asset management to deliver sustainable growth 2013/2014 Annual Res
Slide 10: Asset Enhancement – Projects Completed and Underway
Asset Enhancement – Projects Completed and Underway Completed projects 2013/14 Total CAPEX: HK$724m (3) (3) (1)(3) (1) Chung Fu Sheung Tak Lok Fu Market Choi Wan Sha Kok ROI: (3) 16.8% ROI: (3) 23.6% ROI: 17.2% ROI: 16.7% ROI: 17.0% CAPEX: CAPEX: CAPEX: CAPEX: CAPEX: HK$170M HK$87M HK$120M HK$222M H
Slide 11: Asset Enhancement – Continuous Pipeline
Asset Enhancement – Continuous Pipeline Investment Thesis District strategy Fresh market strategy Further upgrade of assets Beyond top 50 properties Status of Asset Enhancement Projects Completion Date Target Completion Date On or before 2014 2015 2016 2017 2018 2019 31 March 2014 35 projects Comple
Slide 12: Strategy and Outlook
Strategy and Outlook 2013/2014 Annual Results P.12 P.12
Slide 13: Hong Kong Retail Sales Market Remains Strong
Hong Kong Retail Sales Market Remains Strong YoY Change of Retail Sales Value 50% 40% Positive consumer sentiment 30% 20% Tourist arrival showing consistent 10% growth 0% Sales growth in non-discretionary 08 09 10 11 12 13 1Q14 -10% items remains stable All retail outlets Foods & alcoholic drinks Su
Slide 14: Maintaining Successful Growth Momentum
Maintaining Successful Growth Momentum Link to Sustainable Growth Organic Growth Inorganic Growth China HK HK HK Mid-Market Mid-Market Non-Discretionary Non-Discretionary HK Mass Market HK HK Non Mass Market Mass Market Discretionary Non Non Discretionary Discretionary Asset Management and Enhanceme
Slide 15: Opportunities in China
Opportunities in China Economy Emerging Consumer Urbanisation Income growth growth middle class Demand Improving infrastructure in Pearl River Delta facilitates regional integration Benefitted from the fast growing middle class shoppers Large tenants from Hong Kong already operating in Guangdong pro
Slide 16: Capital Recycling Through Asset Portfolio Review
Capital Recycling Through Asset Portfolio Review In May 2014, four properties were sold for a total Asset disposal consideration of HK$1,239.7m, 38.4% premium to aggregate appraised value as at 31 March 2014 Continue to assess performance of individual properties Capital recycling Identify assets in
Slide 17: Summary
Summary Hong Kong economic foundation continues to be strong supporting steady retail sales growth Prudent capital management strategy will minimise impact of any interest rate rise and provide solid base for growth Explore capital recycling opportunities to create value for our unitholders Seek fur
Slide 18: Investor Information
Investor Information Final Distribution Distribution period October 2013 – March 2014 Last day of trading on a “cum” basis 16 June 2014 Ex Distribution date 17 June 2014 19 June –23 June 2014 Distribution book close (both days inclusive) Record date for entitlement to cash distribution (1) 23 June 2
Slide 19: Disclaimer
Disclaimer This document has been prepared by The Link Management Limited in its capacity as the Manager (the “Manager”) of The Link Real Estate Investment Trust (“The Link REIT”) solely for use at the presentations/meetings held in connection with the 2013/2014 Annual Results announcement and may n
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