Prosperity Real Estate Investment Trust · HKEX:808
Prosperity Real Estate Investment Trust — FY2023 Earnings Presentation
24 slides from Prosperity Real Estate Investment Trust's earnings presentation, March 2024
Slide 1: Final Results
Final Results For the year ended 31 December 2023 March 2024
Slide 2: Disclaimer
Disclaimer This document was prepared by ARA 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 2023 Annual Results Presentation 3
Slide 4: Results Highlights
Results Highlights The Metropolis Tower Prosperity REIT 2023 Annual Results Presentation 4
Slide 5: 1. Financials
1. Financials Revenue Net Property Distributable Distribution Income Income Per Unit 0.8% 0.4% 12.4% 13.3% HK$434.0m HK$437.3m HK$337.9m HK$336.4m HK$245.0m HK$0.1625 HK$214.7m HK$0.1409 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 Tenant Occupancy Cost-to- Average Retention Rate revenue Effective (as at
Slide 6: 2. Returns
2. Returns ● 100% payout ratio since IPO. ● Resilient investment tool amid challenging markets. ● Unit buyback returns capital to unitholders and enhances DPU and NAV per unit. FY23 Buyback Execution No. of units bought back 25 million (1.6% of total issued units) Total buyback amount HK$38 million
Slide 7: Financial Review
Financial Review Prosperity Millennia Plaza Prosperity REIT 2023 Annual Results Presentation 7
Slide 8: 1. Income Statement
1. Income Statement (HK$’000) FY23 FY22 Revenue 437,314 434,007 Revenue increased by 0.8% and NPI Total property operating expenses (100,932) (96,102) decreased by 0.4% mainly due to steady income stream and effective Net property income 336,382 337,905 cost control. Other income 1,059 806 Manager’s
Slide 9: 2. Financial Position
2. Financial Position As at As at Change 31 Dec 2023 31 Dec 2022 All bank loan facilities are Total assets (HK$’m) 9,808.4 9,982.5 -1.7% unsecured with no investment properties pledged. Borrowings1 (HK$’m) 2,345.8 2,306.8 1.7% Interest Cost4 Other liabilities (HK$’m) 573.9 577.2 -0.6% Fixed : Floati
Slide 10: 3. Capital Management
3. Capital Management • First Hong Kong REIT to achieve 100% sustainability-linked financing. • Debt maturity profile evenly spread. • No refinancing needs till 2025. Debt Maturity Profile (HK$ million) Interest Coverage Ratio1 262 3.7x 168 938 800 Weighted 602 Average Debt Maturity2 Nov-25 Aug-26 N
Slide 11: 4. Portfolio Valuation
4. Portfolio Valuation Valuation by Property Type Industrial As at 31 Dec 2023 HK$353m ● Balanced portfolio with Grade A 3.6% Industrial/Office office, commercial, industrial/office and HK$1,956m industrial buildings. 20.2% ● Portfolio valuation at HK$9,703m, Grade A Office down 1.0% compared to 31
Slide 12: Operations Review
Operations Review 9 Chong Yip Street Prosperity REIT 2023 Annual Results Presentation 12
Slide 13: 1. Property Income
1. Property Income Revenue Net Property Income (NPI) New Treasure Centre New Treasure Centre HK$17.9m HK$13.4m Prosperity Center Prosperity Center HK$39.0m HK$29.9m The Metropolis Tower 4.1% 4.0% HK$124.4m 8.9% The Metropolis Tower 8.9% HK$96.2m 28.4% 28.6% Trendy Centre Trendy Centre HK$54.5m HK$41
Slide 14: 2. Occupancy Rates
2. Occupancy Rates Portfolio Occupancy Rate Above 95% Since 2006 (As at 31 Dec 2023) The Metropolis Tower 95.6% Prosperity Millennia Plaza 93.2% 9 Chong Yip Street 97.8% Prosperity Place 96.5% Trendy Centre 92.8% Prosperity Center (portion) 99.0% New Treasure Centre (portion) 100.0% Portfolio 95.9%
Slide 15: 3. Lease Expiry Profile
3. Lease Expiry Profile Portfolio Lease Expiry Profile as at 31 Dec 2023 40.5% 41.7% 37.9% 36.6% 18.0% 17.6% 3.6% 4.1% 31-Dec-23 2024 2025 2026 and beyond By Gross Rental Area (GRA) By Gross Rental Income (GRI) Expiry Profile as at 31 Dec 2023 By Gross Rental Area By Gross Rental Income Period % of
Slide 16: 4. Trade Mix of New Letting
4. Trade Mix of New Letting IT / Technology and retail services1 trades accounted for 52% of new letting GRA in FY23. IT / Technology 33% Retail Services 19% Consultancy / New Letting Research By Trade 8% Finance / Investment 9% Others 16% Manufacturing / Trading 15% Note: 1. Retail services trades
Slide 17: 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 18: Key Takeaways
Key Takeaways Prosperity Place Prosperity REIT 2023 Annual Results Presentation 18
Slide 19: Key Takeaways
Key Takeaways 1. Distribution per unit (DPU) decreased by 13.3% Y-o-Y ● Decrease mainly due to the rise in finance cost amid interest rate hike environment. ● Distribution yield of 10.1%1. ● Maintained 100% payout ratio since listing. 2. Revenue increased by 0.8% and NPI decreased by 0.4% Y-o-Y ● Ma
Slide 20: Appendix
Appendix Prosperity REIT 2023 Annual Results Presentation 20
Slide 21: 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 22: 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 23: Key Facts
Key Facts Key Facts as at 29 Dec 20231 IPO Date 16 Dec 2005 Unitholder Structure IPO Price HK$2.16 10.1% Public CKAH3 Indicative Yield (based on FY23 DPU of HK$0.1409 and closing unit price of HK$1.39 as at 29 Dec 20231) 81.8% 18.2% Number of Issued Units 1,510,529,223 Market Capitalization HK$2.1 b
Slide 24: Contacts
Contacts ARA 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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