Prosperity Real Estate Investment Trust · HKEX:808
Prosperity Real Estate Investment Trust — H1 2024 Earnings Presentation
22 slides from Prosperity Real Estate Investment Trust's earnings presentation, August 2024
Slide 1: Interim Results
Interim Results For the half year ended 30 June 2024 August 2024
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 Interim Results Presentation 3
Slide 4: Results Highlights
Results Highlights The Metropolis Tower Prosperity REIT 2024 Interim Results Presentation 4
Slide 5: Financials
1. Financials Revenue Net Property Distributable Distribution Income Income Per Unit 1.1% 1.7% 13.7% 14.4% HK$217.4m HK$215.0m HK$167.8m HK$0.0745 HK$164.9m HK$113.8m HK$98.2m HK$0.0638 1H23 1H24 1H23 1H24 1H23 1H24 1H23 1H24 Tenant Occupancy Cost-to- Average Retention Rate revenue Effective (as at
Slide 6: Returns
2. Returns ● 100% payout ratio and 126%1 total return since listing. ● Resilient investment tool amid challenging markets. Attractive yield2 9.2% 7.5% 4.2% 3.5% 2.6% Prosperity REIT's HS Property Index HSI Dividend Yield HK 10-year Gov't HK Composite Dividend Yield Dividend Yield Bond Yield Interest
Slide 7: Financial Review
Financial Review Prosperity Millennia Plaza Prosperity REIT 2024 Interim Results Presentation 7
Slide 8: Income Statement
1. Income Statement 1H24 1H23 (HK$’000) (Unaudited) (Unaudited) Revenue 214,955 217,395 Revenue and NPI decreased by 1.1% and 1.7% respectively mainly due to Total property operating expenses (50,052) (49,578) pressure on rental level and vacancy of Net property income 164,903 167,817 our office pro
Slide 9: Financial Position
2. Financial Position As at As at Change 30 Jun 2024 31 Dec 2023 (Unaudited) (Audited) All bank loan facilities are Total assets (HK$’m) 9,642.9 9,808.4 -1.7% unsecured with no investment properties pledged. Borrowings1 (HK$’m) 2,360.3 2,345.8 0.6% Interest Cost2 Other liabilities (HK$’m) 576.5 573.
Slide 10: Capital Management
3. Capital Management • First Hong Kong REIT to achieve 100% sustainability-linked financing. • Debt maturity profile evenly spread. • No refinancing needs till Nov 2025 and no interest rate swap expiry till 2026. Debt Maturity Profile (HK$ million) Interest Coverage Ratio1 262 3.0x 168 938 800 Weig
Slide 11: Portfolio Valuation
4. Portfolio Valuation Valuation by Property Type Industrial As at 30 Jun 2024 HK$354m 3.7% ● Balanced portfolio with Grade A office, Industrial/Office commercial, industrial/office and HK$1,956m 20.5% industrial buildings. ● Portfolio valuation at HK$9,547m, Grade A Office HK$5,539m down 1.6% compa
Slide 12: Operations Review
Operations Review 9 Chong Yip Street Prosperity REIT 2024 Interim Results Presentation 12
Slide 13: Property Income
1. Property Income Revenue Net Property Income (NPI) New Treasure Centre New Treasure Centre HK$9.3m HK$6.9m Prosperity Center Prosperity Center HK$19.7m HK$14.9m The Metropolis Tower 4.3% 4.2% HK$60.9m 9.2% The Metropolis Tower HK$47.5m 9.0% 28.3% 28.8% Trendy Centre Trendy Centre HK$26.3m HK$19.7m
Slide 14: Occupancy Rates
2. Occupancy Rates Portfolio occupancy rate at around 95% (As at 30 Jun 2024) The Metropolis Tower 98.4% Prosperity Millennia Plaza 88.1% 9 Chong Yip Street 99.4% Prosperity Place 94.6% Trendy Centre 91.5% Prosperity Center (portion) 96.2% New Treasure Centre (portion) 100.0% Portfolio 94.9% Prosper
Slide 15: ESG Achievements
ESG Achievements Sustainalytics ESG Risk Rating 100% of Prosperity REIT’s Global Real Estate Sustainability “Low Risk” financing sustainability-linked Benchmark (GRESB) Achievements + For the second consecutive year Increasing sustainability-linked ✓ Highest Five-Star Rating interest rate swaps ✓ Gr
Slide 16: Key Takeaways
Key Takeaways Prosperity Place Prosperity REIT 2024 Interim Results Presentation 16
Slide 17: Key Takeaways
Key Takeaways 1. Distribution per unit (DPU) decreased by 14.4% Y-o-Y ● Decrease mainly due to increase in finance cost Y-o-Y given the expiry of certain interest rate swaps under continuous high interest rate environment. ● Annualized distribution yield of 9.2%1. ● Maintained 100% payout ratio sinc
Slide 18: Appendix
Appendix Prosperity REIT 2024 Interim Results Presentation 18
Slide 19: Key Milestones since IPO
Key Milestones since IPO Acquired 9 Chong Yip Disposed of Harbourfront Listed on Hong Kong Street for approx. HK$1 Landmark Property for approx. Unit buyback to return capital to Stock Exchange with 7 billion, expanding our HK$0.88 billion, 49.1% unitholders and enhance NAV properties portfolio size
Slide 20: 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 21: Key Facts
Key Facts Key Facts as at 30 Jun 2024 IPO Date 16 Dec 2005 Unitholder Structure3 IPO Price HK$2.16 REIT Free CKAH Manager & 9.2% Float Directors Indicative Yield (annualized based on 1H24 DPU of HK$0.0638 and closing unit price of HK$1.38 as at 28 Jun 20241) 77.4% 18.0% 4.6% Number of Issued Units 1
Slide 22: 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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