Slide 1: 2012 Interim Results | Analyst Briefing
2012 Interim Results | Analyst Briefing 10th Aug 2012
Slide 2: TaiKoo Hui, Guangzhou
TaiKoo Hui, Guangzhou
Slide 3: INDIGO, Beijing
INDIGO, Beijing TEFEN DI4 SwirE PROPERTIES
Slide 4: Financial Summary
Island East, Hong Kong Financial Summary
Slide 5: Financial Summary
Financial Summary HK$M 1H 2011 (excl. FW) 1H 2012 Change (excl. FW) Turnover 4,665 4,159 4,907 +5.2% +18.0% Valuation gains on investment properties 17,553 16,455 7,103 -59.5% -56.8% Operating profit 20,686 19,183 10,364 -49.9% -46.0% Attributable profit 20,023 18,634 9,862 -50.7% -47.1% Underlying
Slide 6: Earnings Reconciliation
Earnings Reconciliation Attributable Profit by Segments Underlying Profit Reconciliation HK$’M $20,023 $9,862 HK$M 1H 2011 1H 2012 Attributable profit 20,023 9,862 Revaluation of investment properties (18,167) (7,905) Deferred tax on revaluation movements 306 357 Depreciation of owner occupied inves
Slide 7: Movement in Underlying Profit
Movement in Underlying Profit Movement in Underlying Profit HK$’M 2,443 + 18 (7) + 217 (6) 2,354 (71) (62) +9 HK Resid. +54 HK Retail (291) Loss of + 229 profit from Increase in Festival Walk +166 profit from HK HK Office property investment Underlying Decrease in Decrease in Increase in Increase in
Slide 8: Movement in Investment Properties
Movement in Investment Properties The increase in the valuation of investment property portfolio principally reflects higher rental income. Movement in Investment Properties * Fair Value Gains Breakdown (excl. Hotels / Investment Properties held under JCE) HK$’M HK$’M 195,041 + 7,103 187,198 (224) +
Slide 9: Investment Portfolio
Sanlitun Village, Beijing Investment Portfolio
Slide 10: Gross Rental Income
Gross Rental Income Gross Rental Income Gross rental income increased by 5.1% (or 19.6% excl. FW) HK$’M $7,433 $7,875 $8,557 Positive rental reversions in HK office portfolio, $4,176 $4,390 notwithstanding a slowdown in leasing activity. (rental + 7.1% in 1H 2012, HK office) (rental + 9.7% in 1H 201
Slide 11: HK Office Occupancy
HK Office Occupancy Completed HK GFA (sq ft) Occupancy Area LFA (sq ft) Reversion(5) Attri. One Pacific Place Office Properties (100% basis) (30th Jun 2012) Renewed / (1H 2012) Interest Concluded (1H 2012) Pacific Place 2,186,433 99% 98,296 + 34% 100% Cityplaza 1,632,930 98% 80,972 + 29% 100% TaiKoo
Slide 12: HK Retail Occupancy
HK Retail Occupancy Completed HK GFA Occupancy Reversion(4) Attri. The Mall, Beauty Gallery Retail Properties (sq.ft.) (30th Jun 2012) (Base Rent) Interest Pacific Place (100% basis) (1H 2012) The Mall, Pacific Place 711,182 100% + 20% 100% Cityplaza Mall 1,105,227 100% + 14% 100% Citygate Outlets 4
Slide 13: HK Investment Properties Under Development
HK Investment Properties Under Development Note: This simplified diagram is not to scale and is for illustration purpose only. New Props to Lease *Redevelopment subject to government approval 28 Hennessy Road – Curtain wall installation completed, and interior fit-out works are progressing. Expected
Slide 14: Property Portfolio – Mainland China
Property Portfolio – Mainland China Expected Attributable GFA of Completed Property Portfolio in Mainland China (1)(2) Exp. Attributable Completed GFA(1) (Entire Portfolio) Attributable 9.1m sq ft Valuation (Inv Props) 9.1 HK$ 30.3 bn Dazhongli Project (Shanghai) 7.4 7.4 Daci Temple Project GFA (mil
Slide 15: Property Portfolio – Mainland China
Property Portfolio – Mainland China Daci Temple Project Sanlitun Village INDIGO Artist Impression Site preparation, Occupancy: Village South Mall: 83% committed. excavation and piling at 93% & North at 92%. ONE INDIGO: 73% works in progress. Retail sales growth (1) at committed. Expected completion
Slide 16: Property Trading
ARGENTA, Mid-Levels West Property Hong Kong Trading Artist Impression
Slide 17: Trading Property Update
Trading Property Update AZURA, Mid-Levels West ARGENTA, Mid-Levels West Showflat Artist Impression A 50-storey residential tower. A 37-storey tower of 30 whole-floor Pre-sold 100 out of 126 available units. residential units. Expected completion in 2H 2012. 4 units pre-sold since May 2012. Handover
Slide 18: HK Trading Portfolio
HK Trading Portfolio Expected Attributable Residential GFA Completions Hong Kong --- Mid-Levels West Portfolio in Hong Kong in 2012 - 2016 GFA (sq ft) 180,518 241,645 165,792 64,412* 195,531 Note: This simplified map is not to scale and is for illustrative purpose only HK Residential Exp. Attributab
Slide 19: Financing
The Mall, Pacific Place Hong Kong Financing
Slide 20: Net Debt and Gearing
Net Debt and Gearing HK$M 1H 2012 Gearing Net debt as at 31st December 2011 (27,700) HK$’M $28,880 $35,196 Net rental and fees receipts 3,741 Proceeds from property trading / development 612 Capex – PP&E and property investment (1,465) Development costs – property trading (1,069) Net investments in
Slide 21: Maturity Profile & Liquidity
Maturity Profile & Liquidity Maturity Profile of Available Committed Facilities HK$M Dec 2011 Jun 2012 HK$’M Cash 1,180 4,661 Total 40,132 10,033 5,013 6,544 2,500 4,658 2,329 5,177 3,878 Undrawn - committed 8,003 6,338 Drawn (33,794) (8,633) (2,922) (6,197) (0) (4,658) (2,329) (5,177) (3,878) 9,183
Slide 22: Capital Commitments
Capital Commitments Profile of Capital Commitments – at 30th Jun 2012 HK$’M Expenditure Forecast Year of Expenditure Commitments 2011 1H 2012 2H 2012 2013 2014 2015 & At 30th beyond Jun 2012 Hong Kong 3,104 852 663 593 663 4,408 6,327 Mainland China 3,180 1,144 1,500 2,862 2,123 1,405 7,890 U.S.A. 9
Slide 23: Prospects
TaiKoo Hui, Guangzhou Prospects
Slide 24: Prospects
Prospects Hong Kong Office Hong Kong Retail Demand for office space has slowed. However, Despite slower growth in the first half, the HK retail market rentals at Pacific Place and Island East are market is expected to continue to benefit from low expected to be relatively resilient due to high unemp
Slide 25: Thank you
TaiKoo Hui Mall, Guangzhou Thank you
Slide 26: Appendix
Appendix Di SwirRE PROPERTIES
Slide 27: Key Business Strategies
Key Business Strategies To enhance Swire Properties’ position as a leading developer, owner and operator of mixed use commercial properties in Mainland China and Hong Kong by continuing to implement the following business strategies 11) Continue to create value through transformational projects 22)
Slide 28: Key Developments
Key Developments Jan 2012 Listed on the Hong Kong Stock Exchange on 18th Jan 2012 by way of introduction. Redevelopment works commenced at 23 Tong Chong Street in Quarry Bay. This property is being redeveloped into serviced apartments and the redevelopment is expected to be completed in late 2014. M
Slide 29: Property Portfolio
Property Portfolio Investment Props / Hotels Office Retail Hotels(3) Resid. Total Attributable Investment Props by Region Attributable GFA (‘m sq ft)(1) Completed 9% Hong Kong 10.5 2.4 0.7 0.6 14.2 U.S.A. Mainland China 2.0 3.0 0.2 0.0 5.2 / U.K. U.S.A. and U.K. 0.0 0.0 0.5 0.0 0.5 2.3m Sub-Total (A
Slide 30: Completed Investment Portfolio
Completed Investment Portfolio Expected Attributable GFA of Completed Investment Portfolio (incl. Hotels) (1) GFA 19,423 19,905 20,852 19,928 20,723 21,772 23,507 23,507 25,142 (‘000 sq ft) Brickell CitiCentre (Phase II) Daci Temple project Dazhongli Somerset redevelopment completes Brickell CitiCen
Slide 31: Turnover Analysis
Turnover Analysis 1H 2012 Turnover Breakdown by Segments 1H 2012 Turnover Breakdown by Segments HK$’M $4,907 HK$’M $4,907 1.1% 2.2% 2.0% 7.6% 0.9% 14.8% 89.5% 81.9% Comparison Comparison 1H 2011 2012 1H 2011 2012 Rental 4,176 4,390 HK 4,252 4,017 Trading 99 99 China 299 728 Hotels 343 374 U.S.A. 62
Slide 32: HK Portfolio – Tenant Mix and Lease Expiry Profile
HK Portfolio – Tenant Mix and Lease Expiry Profile HK Office Tenant Mix(1) Lease Expiry Profile(1)(2) HK Retail Tenant Mix(1) Strong and diverse tenant base. Well-balanced lease expiry profile. Top 10 office tenants occupied approx. 21% of office area in HK. Top 10 retail tenants occupied approx. 29
Slide 33: HK Portfolio Map
HK Portfolio Map Note: - The simplified maps are not to scale and are for illustrative purpose only 33
Slide 34: Pacific Place Reinforcement
Pacific Place Reinforcement HK$2 billion(1) Completion of an office Refurbishment of the Propose to expand Three contemporisation project tower at 28 Hennessy office tower at 8 Queen’s Pacific Place with the substantially completed Road(2) which adds GFA Road East(3) with GFA redevelopment of two in
Slide 35: Pacific Place Reinforcement
Pacific Place Reinforcement Artist’s Impression Artist’s Impression Pacific Place Contemporisation 8 Queen’s Road East Beauty Gallery at The Mall, Pacific Place The Upper House 28 Hennessy Road 35
Slide 36: Island East Reinforcement
Island East Reinforcement Plan to commence first 23 Tong Chong Street Working on long term Have secured planning phase of the project with (about 75,000 sq ft) now plan for Island East with a approvals for the three the redevelopment of under redevelopment view to increasing its size Techno-centres
Slide 37: Sanlitun Village, Beijing
Sanlitun Village, Beijing Ongoing development works to increase footfall and circulation Refining and optimising retail tenant mix Increase in gross rental income reflected improved Project Summary (100% Basis) reversionary rents from Village South and higher GFA 1.47m sq ft occupancy rates at Villa
Slide 38: TaiKoo Hui, Guangzhou
TaiKoo Hui, Guangzhou Retail sales at the shopping mall have been encouraging since the opening in Sep Project Summary (100% Basis) 2011, with close to 100% leased as at Jun 2012. GFA 3.85m sq ft Two office towers with 74% committed(1) as at Jun 2012. HSBC has leased 29 floors Components Shopping Ma
Slide 39: INDIGO, Beijing
INDIGO, Beijing Artist’s Impression Office tower – ONE INDIGO started to open in late 2011, with 73% committed(1) as at Project Summary (100% Basis) Jun 2012. GFA 1.89m sq ft Shopping mall started to open in Mar 2012, with 83% committed(1) as at Jun 2012. Components Shopping Mall Retail and office r
Slide 40: Daci Temple Project, Chengdu
Daci Temple Project, Chengdu Artist’s Impression Artist’s Impression A large-scale urban development comprising a street style retail complex (2-3 Project Summary (100% Basis) storey blocks), a boutique hotel, serviced apartments and a Grade A office tower, GFA 2.75m sq ft served by the planned metr
Slide 41: Dazhongli Project, Shanghai
Dazhongli Project, Shanghai Artist’s Impression Artist’s Impression A large-scale retail-led mixed-use development comprising a retail mall, two Project Summary (100% Basis) office towers and three hotels. GFA 3.47m sq ft Prime location with significant frontage to Nanjing West Road and connections
Slide 42: Brickell CitiCentre, Miami, United States
Brickell CitiCentre, Miami, United States Artist’s Impression Artist’s Impression Located in the centre of the Brickell financial district of Miami. The planned Project Summary (100% Basis) Metromover light rail runs through the site. GFA 2.89m sq ft A mixed-use development of approx. 2,891,000 sq.f
Slide 43: HK Trading Portfolio (Mid-Levels West)
HK Trading Portfolio (Mid-Levels West) AZURA AZURA 33 Seymour Road (Phase I) 33 Seymour Road (Phase II)(1) A 50-storey residential tower. A 48-storey tower of 127 residential A 50-storey tower of 197 residential Pre-sold 100 out of 126 available units. units. units. Expected completion in 2H 2012. C
Slide 44: HK Trading Portfolio
HK Trading Portfolio Sai Wan Terrace 148 Argyle Street Cheung Sha, South Lantau Two 21-storey towers of 92 A 23-storey tower with 53 residential Acquired two adjacent sites in residential units in Quarry Bay. units in Ho Man Tin. Cheung Sha, Lantau Island in Dec Superstructure works in progress. Sup
Slide 45: Hotel Portfolio
Hotel Portfolio Managed Hotels No. of Interest Owned but Non-managed Hotels(1) No. of Interest Rooms Rooms Completed (100% basis) Completed (100% basis) HK The Upper House 117 100% HK Island Shangri-La 565 20% HK EAST, Hong Kong 344 100% HK JW Marriott Hotel 602 20% HK Headland Hotel 501 0% HK Conra
Slide 46: Hotels Update
Hotels Update The House Collection EAST Hotels Chapter Hotels The Upper House EAST, Hong Kong The Montpellier Chapter, Cheltenham, U.K. Artist’s Impression The Opposite House EAST, Beijing (1) The Magdalen Chapter, Exeter, U.K. Hotels in HK performed well in 1H 2012, with growth in profits and reven
Slide 47: Valuation of Completed Investment Properties
Valuation of Completed Investment Properties Consistent value creation through continuous property investment and asset reinforcement. 2002 – 1H 2012 Valuation of Completed Investment Properties (excl. Hotels) * $178,815 $187,198 $195,041 Valuation of investment portfolio tripled in 10 years * Per 2