Metro Holdings Ltd · SGX:M01
Metro — FY2021 Earnings Presentation
65 slides from Metro's earnings presentation, May 25, 2021
Slide 1: Metro Holdings Limited FY2021 Results Presentation
METRO HOLDINGS LIMITED FY2021 RESULTS PRESENTATION 25 MAY 2021 Diversification For Resilience
Slide 2: Contents
CONTENTS 1. Diversification For Resilience 2. Property Investment & Development 3. Investments in FY2021 4. Retail Operations 5. Financial Highlights 6. Vision & Growth Strategies 7. Market Outlook 8. Appendix Diversification For Resilience 2
Slide 3: 1. Diversification For Resilience
1. Diversification For Resilience Diversification For Resilience
Slide 4: Who We Are
1. Who We Are Metro Holdings was founded in 1957 by the late Mr. Ong Tjoe Kim as a textile store and has been listed on SGX-ST since 1973. Over the years, under the leadership of the late Mr. Jopie Ong, Metro has evolved into a property investment and development group, backed by an established reta
Slide 5: Diversification Through Geography & Sector
1. Diversification Through Geography & Sector China United Kingdom Shanghai London Metro City 5 Chancery Lane Metro Tower Bay Valley Manchester Shanghai Plaza Middlewood Locks Milliners Wharf The Hat Box Guangzhou GIE Tower Sheffield Sheffield Digital Campus Chengdu The Atrium Mall Bristol Dean Stre
Slide 6: Diversification Through Partnerships
1. Diversification Through Partnerships China United Kingdom (1993) (2004) (2014) (2007) (2018) (2011) (2020) (2018) (2019) (2019) Indonesia Singapore (2001) (2012) (2017) (2019) Australia (2020) FY 2021 (2019) Note: Year in brackets refer to year where partnership was established As at 25 May 2021
Slide 7: 2. Property Investment & Development
2. Property Investment & Development Diversification For Resilience
Slide 8: Investment Properties
2. Investment Properties GIE Tower, 5 Chancery Metro City, Metro Tower, Asia Green, Guangzhou, Lane, London, Shanghai, China Shanghai, China Singapore China UK Type of Commercial Retail Commercial Commercial Commercial Development Lifestyle Grade-A office Office building Two blocks of Part of a 7-st
Slide 9: Investment Properties
2. Investment Properties Tenant Mix by Total Leased Area: (as at 31 March 2021) GIE Tower 广州电子大厦, Metro City美罗城, Metro Tower美罗大厦, Guangzhou, China Shanghai, China Shanghai, China FY2021 92.8% 98.3% 89.4% Occupancy Rate FY2020 93.8% 94.8% 94.3% 1HFY2022 8.8% 10.9% 5.8% Expiry Profile 2HFY2022 25.4% 1
Slide 10: Investment Properties
2. Investment Properties Tenant Mix by Total Leased Area: (as at 31 March 2021) 5 Chancery Lane, Asia Green, London, UK Singapore FY2021 100.0% 78.1% Occupancy Rate FY2020 100.0% 88.6% 1HFY2022 0.0% 10.7% Expiry Profile 2HFY2022 0.0% 33.9% 5 Chancery Lane, London Asia Green, Singapore 16.7% 6.2% 3.0
Slide 11: Investment Properties
2. Investment Properties Bay Valley 洋浦, Shanghai Plaza 上海广场, Shanghai, China Shanghai, China Type of Commercial Mixed-use Development Office buildings (C7, 87% of A4 Retail mall, centrally located Key Project & 12% of C4) located in New at Huai Hai Zhong Road, Description Jiangwan City, Yangpu Distr
Slide 12: Investment Properties
2. Investment Properties Office building at 100 Edward Street, Brisbane The Atrium Mall晶融汇, Portfolio of 15 Office & Retail Chengdu, China Properties, Australia(3) Type of Retail Commercial & Retail Development Portfolio of 15 quality freehold LEED® Gold certified properties comprising 4 office Key
Slide 13: Trading Properties
2. Trading Properties The Crest, Prince Charles Trans Park Juanda, Bekasi, Trans Park Bintaro, Crescent, Singapore Jakarta, Indonesia Jakarta, Indonesia Type of Residential Residential Residential Development % owned by 40% 90% 90% Group 5,622 units with total GFA(1) of 2 residential towers comprisi
Slide 14: Trading Properties
2. Trading Properties Bay Valley洋浦, Shanghai, China Type of Commercial Development % owned by 30% Group Office buildings Key Project (13% of A4 & 88% of C4) located in New Jiangwan City, Description Yangpu District with total GFA(1) of 39,121 sqm Partners GDV(2)/Valuation(3) RMB1,073m (100% basis) (
Slide 15: Trading Properties
2. Trading Properties Milliners Wharf The Hat Box, Middlewood Locks, Sheffield Digital Campus, Manchester, UK Manchester, UK Sheffield, UK Type of Development Residential Mixed-use Commercial % owned by Group 25% 25% 50% Phase 1 sold 2,215 units and commercial Key Project (144 apartments); space inc
Slide 16: 3. Investments In FY2021
3. Investments In FY2021 Diversification For Resilience
Slide 17: Purpose-Built Student Accommodation, UK
3. Purpose-Built Student Accommodation, UK Red Queen, Warwick Establishes student accommodation Description fund (“Paideia Capital UK Trust”) with seed acquisitions in Warwick & Bristol Partners % owned by Group 30% Paideia Partners Pte. Ltd. Fund Manager (33.3% owned by Metro) Initial Aggregate £60
Slide 18: Portfolio of Industrial, Business Park, High-Spec Industrial And Logistics Properties, Singapore
3. Portfolio of 14 Industrial, Business Park, High-Spec Industrial And Logistics Properties, Singapore GSK Asia House Deepens Singapore presence by investing into a quality portfolio of 5 Description Business Park/High-Spec Industrial, 6 Industrial and 3 Logistics Properties Boustead Industrial Part
Slide 19: 4. Retail Operations
4. Retail Operations Diversification For Resilience
Slide 20: Retail Operations
4. Retail Operations • Retail division continues to operate amidst difficult trading conditions; • During Circuit Breaker from April-June 2020, Metro Causeway Point & Paragon closed but sales continued via Metro Online, LazMall and Shopee Mall. Diversification For Resilience 20
Slide 21: Corporate Social Responsibility
4. Corporate Social Responsibility • Despite COVID-19 headwinds, Metro raised S$250,000 in a month for the “Metro Is Singapore” COVID-19 Initiative; • Metro partners Beyond Social Services to provide more than 300 laptops for low- income Singaporean students’ home-based learning; • Charity drive ran
Slide 22: 5. Financial Highlights
5. Financial Highlights Diversification For Resilience
Slide 23: FY2021 Key Financial Highlights
5. FY2021 Key Financial Highlights Achieves 11.8% Growth in FY2021 Net Profit After Tax to S$37.0 million despite COVID-19 Headwinds − Higher FY2021 Profit After Tax of S$37.0 million, from S$33.1 million in FY2020 that includes a one-off divestment gain of S$10.6 million, mainly due to higher contr
Slide 24: FY2021 Key Financial Highlights
5. FY2021 Key Financial Highlights Retail division – Reports Net Loss before Tax of S$2.1 million, from a Net Profit Before Tax of S$9.8 million in FY2020 that includes a one-off divestment gain of S$10.6 million − Metro’s retail revenue decreased to S$72.8 million in FY2021 from S$108.9 million in
Slide 25: Key Financial Highlights – 2HFY2021
5. Key Financial Highlights – 2HFY2021 Revenue PBT S$60.6 million S$23.8 million 25.7% YoY 69.7% YoY 2HFY2020 2HFY2020 S$81.5 million S$14.0 million Remarks: (1) Revenue from the property division for 2HFY2021 decreased to S$13.1 million from 2HFY2020’s S$34.3 million, mainly due to lower revenue re
Slide 26: Key Financial Highlights – FY2021
5. Key Financial Highlights – FY2021 Revenue PBT Basic EPS S$97.3 million S$47.6 million 4.4 cents 53.7% YoY 19.7% YoY 12.8% YoY FY2020 FY2020 FY2020 S$210.3 million S$39.7 million 3.9 cents NAV Per Return on Return on Share Total Assets(1) Equity(1) S$1.86 1.6 % 2.4% 2.8% YoY 0.0% YoY 14.3% YoY FY2
Slide 27: Key Financial Highlights – FY2021 Proposed Dividend
5. Key Financial Highlights – FY2021 Proposed Dividend(1) S$18.6 million Comprises: • Ordinary Dividend 12.5% YoY - 2.0 cents • Special Dividend FY2020 - 0.25 cents S$16.6 million Dividend Cover 1.97x 1.0% YoY FY2020 1.95x Remarks: (1) FY2021’s proposed dividend subject to shareholders’ approval at
Slide 28: Consolidated Income Statement
5. Consolidated Income Statement 2nd Half Year Ended Full Year Ended (S$ ‘000) 31-Mar-21 31-Mar-20 Change 31-Mar-21 31-Mar-20 Change Revenue 60,606 81,533 (25.7%) 97,323 210,254 (53.7%) Profit Before Tax 23,815 14,030 69.7% 47,562 39,731 19.7% Comprising: Metro City, Metro Tower, GIE Tower, The Atri
Slide 29: Balance Sheet Highlights
5. Balance Sheet Highlights As at (S$ million) Change 31-Mar-21 31-Mar-20 Investment Property 111.7 109.0 2.5% Associates 773.3 795.6 (2.8%) Joint Ventures 367.9 337.3 9.1% Other Non-current Assets 138.2 165.0 (16.2%) Current Assets 956.2 829.4 15.3% Total Assets 2,347.3 2,236.3 5.0% Current Liabili
Slide 30: Dividend Payout
5. Dividend Payout Cents per Share Payout Ratio 8 100% 75% 6 5 51.3% 4 4 38.7% 50% 51.2% 51.4% 50.7% 3 3 2.5 34.8% 2 0.25 25% 26.0% 2 2 2 2 2 2 2 0% 0 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021* Payout rate Special Ordinary * FY2021’s proposed dividend subject to shareholders’ approval at the
Slide 31: 6. Vision & Growth Strategies
6. Vision & Growth Strategies Diversification For Resilience
Slide 32: Our Vision
6. Our Vision Metro aims to be a leading property investment and development group in the region, building on the synergies of our rich retail experience, strong foothold in our core markets, and our strategic partnerships Diversification For Resilience 32
Slide 33: Growth Strategies (Property)
6. Growth Strategies (Property) 1 Continue to grow presence in Singapore, China, Indonesia, the United Kingdom and Australia 2 Further diversify across sector and asset classes for resilience 3 Balanced portfolio of investment and development assets China • Commercial assets with retrofitting upside
Slide 34: Growth Strategies (Property)
6. Growth Strategies (Property) 4 Strategic alliances with existing and new partners 5 Continue to achieve efficiency in capital recycling 6 Strengthen financial position whilst proactive asset management of our investment portfolios, and leveraging on the Group’s resources and unutilized credit fac
Slide 35: Growth Strategies (Retail)
6. Growth Strategies (Retail) 1 Capitalise on retail brand name in Singapore 2 Continue to focus on multi-media strategy and deployment of technology to enhance customers shopping experience 3 Consolidate operational efforts to achieve higher efficiency and productivity Diversification For Resilienc
Slide 36: Thank You
Thank You Diversification For Resilience
Slide 37: 7. Market Outlook
7. Market Outlook Diversification For Resilience
Slide 38: Market Outlook: Singapore, Office
Market Outlook: Singapore, Office Office Rents In 2021 Could Recover To 2019’s Levels Colliers, Office Rents Pivot, 6 April 2021 • The Grade A office market has remained relatively resilient despite Singapore experiencing its worst recession since independence. According to Colliers International re
Slide 39: Market Outlook: Singapore, Residential
Market Outlook: Singapore, Residential Sales & Price Performance To Stay Positive CBRE, Asia Pacific Real Estate Market Outlook, Singapore 2021 • Singapore’s residential market in 2020 performed well, exceeding expectations despite going through a countrywide lockdown and weathering against the rece
Slide 40: Market Outlook: Singapore, Retail
Market Outlook: Singapore, Retail Retail Sales Have Recovered to About 91% of Pre-COVID Levels1 Singapore Department of Statistics, 1Q2021 • Despite continued weakness and seeing its worst performance Online & In-Store Sales (Including Dine-in) Sales since 1986 due to the ongoing COVID-19 pandemic a
Slide 41: Market Outlook: Singapore, Logistics
Market Outlook: Singapore, Logistics Logistics Has Remained A Resilient Asset Class Amid The Pandemic CBRE, Asia Pacific Real Estate Market Outlook, Singapore 2021 • Rents returning to pre-COVID-19 levels at the end of 2020 was mainly driven by the government’s stockpiling, third-party logistics ser
Slide 42: Market Outlook: China, Office
Market Outlook: China, Office Investment Continues To Rebound As Leasing Activity Gathers Momentum CBRE, Marketview China, 4Q2020 • The swift containment of the COVID-19 pandemic in early 2020 supported a quick economic rebound over the remainder of the year. GDP returned to expansionary territory i
Slide 43: Market Outlook: Shanghai, Office
Market Outlook: Shanghai, Office Office Leasing Continued To Recover JLL, Asia Pacific Property Digest, 4Q2020 • CBD rents fell 1.3% QoQ and 6.7% YoY as continued new supply pressured landlords to remain negotiable. Domestic financial and professional services companies jumped at the opportunity to
Slide 44: Market Outlook: Shanghai, Retail
Market Outlook: Shanghai, Retail First Rental Raise In A Year Savills, Shanghai Retail, April 2021 • As the market shakes off the impact of COVID-19, retail sales Shanghai Citywide Vacancy Rates, 2Q2016 have grown by 48.3% YoY in the first two months of 2021, To 1Q2021 compared to a plunge of 20.3%
Slide 45: Market Outlook: Chengdu, Office
Market Outlook: Chengdu, Office Consumer Services See Increasing Demand Savills, Chengdu Office, April 2021 • Chengdu’s GDP has increased by 4.0% YoY, reaching Chengdu Grade A Office Supply, Take-Up & Vacancy RMB 1.7 trillion in 2020; while the tertiary industry Rates From 2016 To 1Q2021 growth valu
Slide 46: Market Outlook: Chengdu, Retail
Market Outlook: Chengdu, Retail Chengdu Shopping Mall Average Vacancy Rate Continues To Decrease In 1Q2021 Savills, Chengdu Retail, April 2021 •Chengdu’s retail sales of consumer goods surged by 30% YoY, reaching RMB 137.46 billion from January to February 2021 •A new shopping mall establishment in
Slide 47: Market Outlook: Guangzhou, Office
Market Outlook: Guangzhou, Office Annual Leasing Demand Eases Off Savills, Guangzhou, February 2021 • Guangzhou has not been spared from the impact of Guangzhou Grade A Office Supply, Net Take-Up COVID-19 as the overall leasing demand market fell to & Vacancy Rate, 2016 To 2020 47,434 sqm. However,
Slide 48: Market Outlook: Indonesia, Residential
Market Outlook: Indonesia, Residential Interest Rate At All-Time Low Colliers Quarterly, Jakarta, 7 April 2021 • Bank Indonesia has cut its benchmark rate aggressively since mid-2019 from 6.0% to 3.5%. To spur the property market, the bank eased the LTV regulations for mortgages up to 100% and eradi
Slide 49: Market Outlook: UK, Office
Market Outlook: UK, Office Office Investment Recovers As Uncertainties Recede CBRE, UK Real Estate Market Outlook, 1Q2021 • Although UK office investment volumes dwindled by Estimated Equity Targeting London Office Investment Stock 56% YoY for Q2 and Q3 2020, a rebound is expected in the final quart
Slide 50: Market Outlook: UK, Residential
Market Outlook: UK, Residential Residential Will Continue To Outperform CBRE, UK Real Estate Market Outlook, December 2020 • The residential sector has remained resilient in the face of UK Residential Investment, 2015 – 2025 (F) the pandemic. Despite COVID-19 restrictions, investment into the reside
Slide 51: Market Outlook: UK, PBSA
Market Outlook: UK, PBSA Rising Demand For Higher Education Is Underpinning The Growth Of Student Accommodation Sector Savills, Outlook 2021 • In the EU, the number of full-time university PBSA Provision Rate % (Proportion Of Beds To Students) students rose by over 1 million between 2013 and 2018. T
Slide 52: Market Outlook: Central London, Office
Market Outlook: Central London, Office Signs Of Recovery For The London Office Market CBRE, Central London Office, 1Q2021 • Despite take-up at below the 10-year quarterly average, Central London Investment Transactions Central London saw an increase in leasing transactions and also the highest take-
Slide 53: Market Outlook: Sheffield, Office
Market Outlook: Sheffield, Office Regional Offices Provide An Attractive Yield Gap To Central London Savills, UK Regional Office Market Report, Summer 2020 • The COVID pandemic and the subsequent lockdown restrictions have resulted in investor caution; reflected by prime yields for regional offices
Slide 54: Market Outlook: Manchester, Office
Market Outlook: Manchester, Office Manchester – Strongest Take-Up Of All Big 6 Regional Office Markets JLL, Property Predictions 2021 Savills, UK Regional Office Market Report, 2020 • In 2020, the office market in Manchester once again saw it resilient throughout the year – a trend experts expect wi
Slide 55: Market Outlook: Sydney, Office
Market Outlook: Sydney, Office Economic Recovery Is Underway... Knight Frank, Sydney CBD Office Market, March 2021 • Growth in business investment, consumer spending and Australian GDP Growth employment had exceeded expectations, suggesting an economic rebound from the pandemic • Australian GDP rose
Slide 56: Market Outlook: Sydney, Retail
Market Outlook: Sydney, Retail Considerable Uncertainty Towards The Outlook For Income & Vacancy JLL, Retail Market Overview, 4Q2020 • All retail categories have rebounded beyond pre- Average Gross Rents By Sub-sector COVID-19 levels, except for cafes, restaurants and takeaway food category • Househ
Slide 57: Market Outlook: Melbourne, Office
Market Outlook: Melbourne, Office Noticeable Decline In 2020 Leasing Activity Knight Frank, Melbourne CBD Office Market Report, March 2021 • The number of new leasing deals recorded in 2020 was 35% less than what was recorded in 2019, while the amount of sqm leased during 2020 (170,000 sqm) represen
Slide 58: Market Outlook: Melbourne, Retail
Market Outlook: Melbourne, Retail Restrictions Ease, Driving A Significant Rebound In Spending JLL, Retail Market Overview, 4Q2020 • The Victorian government began easing restrictions on Average Gross Rents By Sub-sector retails and hospitality sectors in late October, reviving spending over 4Q2020
Slide 59: Market Outlook: Queensland, Office
Market Outlook: Queensland, Office Recovery Faster Than Expected Knight Frank, Brisbane CBD Office Market Report, April 2021 • The market recovery pace exceeded expectations as the economy began to reopen in 3Q. Queensland’s Brisbane CBD Vacancy economy is also set to surpass previous output levels
Slide 60: Market Outlook: Queensland, Retail
Market Outlook: Queensland, Retail Retail Turnover Growth Remains Strong In Queensland JLL, Retail Market Overview, 4Q2020 • As restrictions continue to ease, Queensland’s retail Average Gross Rents by Sub-sector turnover growth remains robust, with household goods (20.7% YoY) being the main driving
Slide 61: Market Outlook: Western Australia, Office
Market Outlook: Western Australia, Office Western Australia Fairs Relatively Well Amidst Pandemic Knight Frank, Perth CBD Office Market Report, October 2020 • The relatively strong performance of WA has been partly driven by stronger household consumption; with retail sales rising by 17.9% over the
Slide 62: Market Outlook: Western Australia, Retail
Market Outlook: Western Australia, Retail WA Retail Spending Growth & Consumer Sentiment Continues To Surge JLL, Retail Market Overview, 4Q2020 • Consumer sentiment continues to accelerate, rising Average Gross Rents By Sub-sector to its highest level in 10 years • 4Q2020 sees the completion of 5 ma
Slide 63: 8. Appendix
8. Appendix Diversification For Resilience
Slide 64: Key Milestones
8. Key Milestones 1992 • Launch of Shanghai Roway residential 1982 project in 1995 Transmarco Group Shanghai, China • Launch of The 1957 was created and 1989 Oasis Resort in 2004 • GIE Tower, a First Metro store listed to handle Official launch and Cairns, Australia, Grade-A office Invested in ICT 2
Slide 65: Key Milestones
8. Key Milestones 2014 2020 2018 2012 • Expanded our • Acquisition of Ropes Crossing Entered London with acquisition • • Acquired a site to geographical Village Shopping Centre in of 5 Chancery Lane, UK develop a boundaries to NSW, Australia residential project, the UK, invested • Invested in Trans