Megaworld Corp. · PSE:MEG
Megaworld — 9M 2021 Earnings Presentation
36 slides from Megaworld's earnings presentation, Nov 10, 2021
Slide 1: 9M 2021 Results Analyst Presentation
9M 2021 RESULTS ANALYST PRESENTATION (10 NOVEMBER 2021)
Slide 2: Performance Update
PERFORMANCE UPDATE In Php Billions 2Q21 3Q21 QoQ% 3Q20 YoY% 9M21 9M20 YoY% QoQ Remarks REVENUES 12.2 14.5 18% 9.6 50% 36.9 33.4 9% Improved performance of core revenues COSTS & EXPENSES 9.4 11.2 20% 7.4 52% 28.3 25.3 10% Increase in sales-related expenses with the uptick in construction activities G
Slide 3: Total Revenues
TOTAL REVENUES In Pbn 2Q21 3Q21 QoQ% 3Q20 YoY% 9M21 9M20 YoY% QoQ Remarks REAL ESTATE 7.6 9.6 26% 4.8 102% 23.1 19.1 21% Improved construction activity RENTALS 3.2 3.3 3% 3.4 -1% 9.6 10.6 -9% Stable occupancy rate at 90%; Limited mall operations HOTELS 0.4 0.6 42% 0.3 121% 1.3 1.2 9% Higher occupanc
Slide 4: Strong Balance Sheet
STRONG BALANCE SHEET Floating USD P88.8bn Bond 47% TYPE OF Loans INTEREST 35% 39% DEBT RATE CURRENCY 53% PHP GROSS DEBT Fixed 61% 65% P59.9bn 28 % P27.4bn NET DEBT/EQUITY NET DEBT CAPEX SPENDING 4
Slide 5: MEG Dividend Policy
MEG DIVIDEND POLICY • In line with the improving performance, the Company has restored its dividend policy. • Annual cash dividend payment ratio of 20% of the Company’s net income from the preceding year. Dividend per Share : P0.0425 Declaration Date : 10 Nov 2021 Record Date : 23 Nov 2021 Payment D
Slide 6: Real Estate Sales, Reservation Sales, Project Launches
P23bn REAL ESTATE SALES P54bn RESERVATION SALES (77% of P70.0bn target for FY2021) P16bn PROJECT LAUNCHES (90% of P17.8bn target for FY2021) 6
Slide 7: Real Estate Sales
REAL ESTATE SALES By Classification Real Estate Sales 13% 0% P23.1bn 7% ↑ 21% YoY 4% Residential Units Commercial Units 76% Condotels Residential Lots Commercial Lots Industrial Lots By Location 4.2 106% Uptown Parksuites Towers 1 & 2 Taguig City Uptown Bonifacio Metro Manila (ex- 11.5 4% Taguig) Lu
Slide 8: Reservation Sales
RESERVATION SALES P54.3 bn RESERVATION SALES Horizontal 32% Vertical By Classification 68% Provincial 44% Metro Manila By Location 56% Eastland Heights Village Eastland Heights Foreign 13% Buyers’ Profile Local 8 87%
Slide 9: Project Launches (% Sold)
PROJECT LAUNCHES (% SOLD) % Sold : 85% Saleable Units : 238 Unit Size Range : 26-88 sqm Launch Date : January 2021 Project Value : P1.4 bn ASP per SQM : P180 k 9
Slide 10: Project Launches (% Sold)
PROJECT LAUNCHES (% SOLD) % Sold : 94% Saleable Lots : 68 Unit Size Range : 300-520 sqm Launch Date : February 2021 Project Value : P536.72 m ASP per SQM : P23 k 10
Slide 11: Project Launches (% Sold)
PROJECT LAUNCHES (% SOLD) % Sold : 60% Saleable Units : 182 Unit Size Range : 200-350 sqm Launch Date : March 2021 Project Value : P2.6 bn ASP per SQM : P65 k 11
Slide 12: Project Launches (% Sold)
PROJECT LAUNCHES (% SOLD) % Sold : 74% Saleable Units : 221 Unit Size Range : 280-530 sqm Launch Date : May 2021 Project Value : P2.3 bn ASP per SQM : P33 k 12
Slide 13: Project Launches (% Sold)
PROJECT LAUNCHES (% SOLD) Alabang West Commercial Lots (Rodeo Drive) % Sold : 67% Saleable Lots :3 Lot Size Range : 950-1,200 sqm Launch Date : August 2021 Project Value : P584 m ASP per SQM : P179 k 13
Slide 14: Project Launches (% Sold)
PROJECT LAUNCHES (% SOLD) Alabang West Village (Expansion) % Sold : 96% Saleable Lots : 25 Lot Size Range : 950-1,200 sqm Launch Date : August 2021 Project Value : P665 m ASP per SQM : P80 k 14
Slide 15: Project Launches (% Sold)
PROJECT LAUNCHES (% SOLD) Tower D % Sold : 13% Saleable Units : 478 Unit Size Range : 70 – 336 sqm Launch Date : September 2021 Project Value : P8.1bn ASP per SQM : P289k 15
Slide 16: Office Revenue and Occupancy
P8.1bn Office Revenue 1.4m Office GLA (sqm) 90% Occupancy Rate 16
Slide 17: New Leases and Occupancy Rate
NEW LEASES AND OCCUPANCY RATE New Leases (Jan-Sep 2021) and Occupancy Rate 90% 86% 83% 83% 83% 425 383 336 303 77 New Leases ('000 sqm) Occupancy Rate • Total transactions reached 214,000 sqm, 12% higher than same period last year. • Megaworld Premier Offices captured up to 25% of the reported new l
Slide 18: Office Pipeline
OFFICE PIPELINE Completion Project Name Township GLA Year No. 1 Upper East Avenue The Upper East 8,600 2023 International Finance Center Uptown Bonifacio 69,000 2024 Enterprise 1 Iloilo Business 34,000 2024 Park Enterprise 2 Iloilo Business 32,000 2025 Park TOTAL 143,600 18
Slide 19: Office Pipeline
OFFICE PIPELINE Completion Project Name Township GLA Year No. 1 Upper East Avenue The Upper East 8,600 2023 International Finance Center Uptown Bonifacio 69,000 2024 Enterprise 1 Iloilo Business 34,000 2024 Park Enterprise 2 Iloilo Business 32,000 2025 Park TOTAL 143,600
Slide 20: Offices Pipeline
OFFICES PIPELINE Completion Project Name Township GLA Year No. 1 Upper East Avenue The Upper East 8,600 2023 International Finance Center Uptown Bonifacio 69,000 2024 Enterprise 1 Iloilo Business 34,000 2024 Park Enterprise 2 Iloilo Business 32,000 2025 Park TOTAL 143,600 ENTERPRISE 1& 2 20
Slide 21: Offices Under Planning Phase
OFFICES UNDER PLANNING PHASE Office - Taguig Project Name Township Office – Taguig McKinley West Office - Bacolod The Upper East Office – Cavite Maple Grove Office – Capital Town Capital Town Office - Bacolod
Slide 22: Offices Under Planning Phase
OFFICES UNDER PLANNING PHASE Project Name Township Office – Taguig McKinley West Office - Bacolod The Upper East Office – Cavite Maple Grove Office – Maple Grove Office – Capital Town Capital Town Office – Capital Town
Slide 23: Lifestyle Malls Revenue and Occupancy
P1.5bn Lifestyle Malls Revenue 462k Malls GLA (sqm) 82% Occupancy Rate 23
Slide 24: Mall Foot Traffic
MALL FOOT TRAFFIC Mall Initiatives Improving Foot Traffic Average Weekend Foot Traffic Planting ceremony at Greenhouse at Village Square Alabang Sunset Market by MERCATO End Sep 22-24 Oct 29-31 Oct 05-07 Nov Activities dedicated to pets 24
Slide 25: Hotel Revenues and Occupancy
P1.3bn Hotel Revenues 4,163 Hotel Room Keys 74% Occupancy Rate (Metro Manila)
Slide 26: Improving Hotel Margins
IMPROVING HOTEL MARGINS Hotel Revenues (Pm) vs EBITDA Margin 21% 15% 13% 7% 8% Quarantine Hotel Package -13% -18% 551 552 367 389 314 336 250 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Hotel Revenues Hotel EBITDA Margin 26
Slide 27: Hotels Pipeline
HOTELS PIPELINE GRAND WESTSIDE HOTEL Hotel Name Township Room Keys 94% SOLD CHANCELLOR HOTEL BORACAY Boracay Newcoast 554 BELMONT HOTEL MACTAN The Mactan Newtown 551 GRAND WESTSIDE HOTEL Westside City 1,530 BELMONT HOTEL ILOILO Iloilo Business Park 405 TOTAL 3,040 CHANCELLOR HOTEL BORACAY 92% SOLD 2
Slide 28: Hotels Pipeline
HOTELS PIPELINE Hotel Name Township Room Keys CHANCELLOR HOTEL BORACAY Boracay Newcoast 554 BELMONT HOTEL MACTAN The Mactan Newtown 551 GRAND WESTSIDE HOTEL Westside City 1,530 BELMONT HOTEL ILOILO Iloilo Business Park 405 TOTAL 3,040 BELMONT HOTEL MACTAN 90% SOLD GRAND WESTSIDE HOTEL BELMONT HOTEL
Slide 29: Township & Landbank Updates
TOWNSHIP & LANDBANK UPDATES 28 TOWNSHIPS 5,000 Hectares of Developable Land (from 4,300 hectares in FY2020) (4,829 Hectares) • Quality land sufficient to support the next 10 to 15 years of development Metro Manila 5% 4% Luzon (ex-MM) 1% Visayas 90% Mindanao • Diverse source of land including directl
Slide 30: New Township: P98bn Capex
85 Total Area (in Hectares) P98bn CAPEX (15-20 years) 30
Slide 31: Prime Location
PRIME LOCATION EXIT Located in Marilao- 20 mins. from the Accessible via Will host one of the Positioned to be the Bocaue, Bulacan, proposed New Manila Marilao Exit in NLEX stations of the Manila- Global Business District the country’s GATEWAY International Airport Clark Railway Project in Bulacan t
Slide 32: Township Features
TOWNSHIP FEATURES • 40% of the development will be Commercial dedicated to green and open spaces Lots 23% • Solar-powered and LED streetlights Open Space • Underground cabling 40% • Bike lanes and intermodal transport terminal • Storm water detention facility Mixed-use Hotels Development 37% Office
Slide 33: New Township: P40bn Capex
462 Total Area (in Hectares) P40bn CAPEX (10-15 years) 33
Slide 34: Township Features
TOWNSHIP FEATURES Located in Near the famous Port Barton San Vicente, Palawan Country’s longest and Southeast Asia's 2nd longest coastline Commercial Lots 12% Open Space Eco tourism community 40% Mixed-use Development 48% 10 to 15 minutes away from the San Vicente Airport 34
Slide 35: Key Takeaways
KEY TAKEAWAYS REAL ESTATE • Real Estate Revenues grew by 102% on the back of increased construction activity. OFFICE • Quarterly performance affirms improved outlook in office demand. MALLS & HOTELS • Significant improvement in consumer confidence points to enhanced outlook for malls and hotel busin
Slide 36: 9M 2021 Results Analyst Presentation
9M 2021 RESULTS ANALYST PRESENTATION (10 NOVEMBER 2021)