Metro Holdings Ltd · SGX:M01
Metro — FY2019 Earnings Presentation
43 slides from Metro's earnings presentation, May 28, 2019
Slide 1: Metro Holdings Limited FY2019 Results Presentation
METRO HOLDINGS LIMITED FY2019 RESULTS PRESENTATION 28 MAY 2019
Slide 2: Contents
CONTENTS ● About Metro ● Property Investment & Development ● Investment Portfolio ● Property Development ● Recent Investments in FY2020 ● Retail Operations ● Financial Highlights ● Growth Strategies ● Market Outlook 2
Slide 3: About Metro
About Metro 2
Slide 4: Who We Are
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 retail
Slide 5: Our International Presence
Our International Presence China Shanghai Metro City United Kingdom Metro Tower London Bay Valley 5 Chancery Lane Shanghai Shama Century Park Shanghai Plaza Manchester Middlewood Locks Guangzhou Milliners Wharf The Hat Box GIE Tower Sheffield Chengdu Sheffield Digital Campus The Mall, part of The At
Slide 6: Property Investment & Development
Property Investment & Development 2
Slide 7: Property Portfolio: Investment Properties
Property Portfolio Investment Properties GIE Tower, Metro City, Metro Tower, 5 Chancery Lane, Guangzhou, China Shanghai, China Shanghai, China London, UK Type of Commercial Retail Commercial Commercial Development Part of a 7-storey Lifestyle entertainment Grade-A office spread Office building Key P
Slide 8: Investment Portfolio: Tenant Mix
Investment Portfolio: Tenant Mix Tenant Mix by Total Leased Area : (as at 31 March 2019) GIE Tower, Metro City, Metro Tower, 5 Chancery Lane, Guangzhou, China Shanghai, China Shanghai, China London, UK Occupancy FY2019 94.2% 99.7% 98.3% 100.0% Rate FY2018 88.6% 97.1% 98.5% 100.0% 1HFY2020 16.8% 16.7
Slide 9: Property Portfolio: Development Properties
Property Portfolio Development 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 residen
Slide 10: Property Portfolio: Development Properties
Property Portfolio Development Properties Shanghai Shama Century Bay Valley, Shanghai Plaza, Park, Shanghai, China Shanghai, China Shanghai, China Type of Residential Commercial Mixed-use Development % owned by 30% 30% 31.5% Group 284 units with total GFA(1) of Retail mall, centrally located at Key
Slide 11: Property Portfolio: Development Properties
Property Portfolio Development 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 ap
Slide 12: Recent Investments in FY2020
Recent Investments In FY2020 (Post March 2019) 2
Slide 13: 7 & 9 Tampines Grande, Singapore
7 & 9 Tampines Grande, Singapore Two blocks of premium Grade-A eight- storey office towers with retail and F&B Description on the ground floor, BCA Green Mark Platinum and LEED® Gold Certified % owned by Group 50% Site Area (sqft) 86,110 Total GFA (sqft) 361,660 Land Tenure 99 years from 2007 (87 ye
Slide 14: The Mall, part of The Atrium, Chengdu, China
The Mall, part of The Atrium, Chengdu, China LEED® Gold certified commercial mall, Description which is part of a landmark mixed-use development % owned by Group 25% Site Area (sqm) 123,170 Total GFA (sqm) 45,352 NLA (sqm) 26,078 with 387 carpark lots Total Consideration RMB800 million(1) (100%) Acq
Slide 15: Retail Operations
Retail Operations 2
Slide 16: Retail Operations
Retail Operations Continue to improve top line with emphasis on margin protection and improving assortment of merchandise while enhancing customers shopping experience Singapore:- Indonesia:- • Metro Woodlands • Metro Pondok Indah • Metro Bandung Supermal • Metro Paragon • Metro Plaza Senayan • Metr
Slide 17: Financial Highlights
Financial Highlights 2
Slide 18: FY2019 Key Financial Highlights
FY2019 Key Financial Highlights Registered Profit Before Tax (PBT) of S$107.0 million in FY2019, as compared to PBT of S$170.7 million in FY2018 that includes a one-off very substantial divestment gain of S$164.5 million from its associate company Property division - PBT decreased by S$59.5 million
Slide 19: Key Financial Highlights - 4QFY2019
Key Financial Highlights- 4QFY2019 Revenue PBT S$40.0 million S$58.1 million 16.6% YoY 554.4% YoY 4QFY2018 4QFY2018 (restated) S$34.3 million S$8.9 million Remarks: (1) Increase in revenue by 16.6% mainly due to the property division recognising revenue of S$6.1 million from the sale of property rig
Slide 20: Key Financial Highlights - FY2019
Key Financial Highlights- FY2019 Revenue PBT Basic EPS S$172.0 million S$107.0 million 11.5 cents 26.1% YoY 37.3% YoY 40.1% YoY FY2018 FY2018 (restated) FY2018 (restated) S$136.3 million S$170.7 million(1) 19.2 cents NAV Per Return on Return on Share Total Assets Equity S$1.83 5.3 % 6.4% 2.8% YoY 45
Slide 21: Key Financial Highlights - FY2019 Proposed Dividend
Key Financial Highlights- FY2019 Proposed Dividend(1) S$37.3 million Comprises: • Ordinary Dividend 10.0% YoY - 2.0 cents • Special Dividend FY 2018 - 2.5 cents S$41.4 million Dividend Cover 2.56x 33.5% YoY FY2018 (restated) 3.85x Remarks: (1) FY2019’s proposed dividend subject to shareholders’ appr
Slide 22: Consolidated Income Statement
Consolidated Income Statement 4th Quarter Ended Full Year Ended (S$ ‘000) 31-Mar-19 31-Mar-18 Change 31-Mar-19 31-Mar-18 Change (restated) (restated) Revenue 40,030 34,327 16.6% 171,964 136,326 26.1% Profit Before Tax 58,122 8,882 554.4% 107,022 170,702 (37.3%) Comprising: Metro City, Metro Tower, G
Slide 23: Balance Sheet Highlights
Balance Sheet Highlights As at (S$ million) Change 31-Mar-19 31-Mar-18 (restated) Investment Property 112.0 100.2 11.8% Associates 758.1 544.2 39.3% Joint Ventures 237.7 419.9 (43.4%) Other Non-current Assets 103.3 84.8 21.8% Current Assets 693.5 552.8 25.5% Total Assets 1,904.6 1,701.9 11.9% Curren
Slide 24: Dividend Payout
Dividend Payout Cents per Share Payout Ratio 8 80% 6 60% 51.2% 51.3% 51.1% 46.5% 5 39.1% 4 4 4 40% 3 3 34.8% 2.5 2 26.0% 2 20% 2 2 2 2 2 2 2 0 0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019* Payout rate Special Ordinary * FY2019’s proposed dividend subject to shareholders’ approval at the AGM in
Slide 25: Growth Strategies
Growth Strategies 2
Slide 26: Growth Strategies (Property)
Growth Strategies (Property) 1 Continue to grow presence in Singapore, China, Indonesia and the United Kingdom 2 Explore regional countries for diversification 3 Balanced portfolio of investment and development assets China • Commercial assets with retrofitting upside potential Singapore United King
Slide 27: Growth Strategies (Property)
Growth Strategies (Property) 4 Strategic alliances with existing and new partners 5 Continue to achieve efficiency in capital recycling 6 Leverage on strong balance sheet and capital market PARTNERS 27
Slide 28: Growth Strategies (Retail)
Growth Strategies (Retail) 1 Capitalise on retail brand name in Singapore and Indonesia 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 28
Slide 29: Thank You
Thank You 2
Slide 30: Market Outlook
Market Outlook 2
Slide 31: Market Outlook: China, Real Estate
Market Outlook: China, Real Estate Market Headwinds Strengthen CBRE, Greater China Real Estate Market Outlook 2019 • Economic headwinds strengthened in 2018 amid deleveraging, supply-side reform and U.S.-China trade conflict • GDP growth weakened to 6.4% in Q4 2018, the lowest rate of growth since Q
Slide 32: Market Outlook: Shanghai, Office
Market Outlook: Shanghai, Office Softer Demand From Subdued Economic Growth Colliers, Shanghai Grade-A Office Market Update Q4 2018 • 7.37 million sqm of new supply is scheduled to be completed over 2019 to 2023, with approximately 2.68 million sqm expected to be completed in 2019 • Vacancy rate is
Slide 33: Market Outlook: Shanghai, Retail
Market Outlook: Shanghai, Retail Leisure and entertainment brands to energise retail spaces Savills, Shanghai Retail – April 2019 Colliers, East China Retail Market Update H2 2018 • Retail sales grew by 6.3% YoY in the first two months of 2019, as Rising Prime Rents compared to 6.7% over the same pe
Slide 34: Market Outlook: Chengdu, Retail
Market Outlook: Chengdu, Retail Chengdu Shopping Mall Supply First-store economy stimulates urban vitality Savills, Chengdu Retail – April 2019 • Retail sales of consumer goods in Chengdu reached RMB117.7 billion, up 8.9% YoY in the first two months of 2019 • One new shopping mall, Ito Plaza, opened
Slide 35: Market Outlook: Guangzhou, Office
Market Outlook: Guangzhou, Office Uncertainty of economy likely to limit rental growth Colliers, Guangzhou Q1 2019 • In Q1 2019, leasing demand came mainly from the technology sector, which accounted for over 50% of newly let office space in the period. Meanwhile, demand from retail and trading grou
Slide 36: Market Outlook: Manchester, Residential
Market Outlook: Manchester, Residential UK’s most significant residential investment market JLL, Northern England Residential Forecasts 2019 • Manchester City Centre recorded over £1.6 billion invested over the past 24 months in new purpose built private rental developments in the city centre, mainl
Slide 37: Market Outlook: Sheffield, Office
Market Outlook: Sheffield, Office Exciting infrastructure, investment and opportunity Knight Frank, Sheffield Office Market 2018 • Occupier take-up reached 363,584 sq ft in 2018, 15% ahead of the 10-year average • During the year, co-working provider Spaces leased c.25,000 sq ft at Acero Works, whic
Slide 38: Market Outlook: Central London, Office
Market Outlook: Central London, Office Remarkable resilience despite political uncertainty Knight Frank, Central London Quarterly Offices Q4 2018 • Central London office take-up reached 14.80 m sqft in 2018, outperforming expectations and marking the highest annual total since 2014 • In Q4 2018, Cen
Slide 39: Market Outlook: Singapore, Residential
Market Outlook: Singapore, Residential Stronger case for readjustment of cooling measures Savills, Singapore Residential Sales – March 2019 • From October to December 2018, developers launched 1,657 uncompleted private residential units while new sales totaled 1,836 • Despite the July 2018 cooling m
Slide 40: Market Outlook: Singapore, Retail
Market Outlook: Singapore, Retail Moderating economic growth, seasonal CNY effects • The Singapore economy grew 1.3% YoY in 1Q2019, moderating from the 1.9% growth in 4Q2018(1); GDP growth is expected to grow 1.5% to 3.5% in 2019(2) • Singapore’s retail sales index for February 2019 decreased 10.0%
Slide 41: Market Outlook: Singapore, Commercial
Market Outlook: Singapore, Commercial Steady rental growth Colliers, Singapore Office Q1 2019 CBRE, Singapore Real Estate Market Outlook 2019 • CBD Grade-A office rental growth remained stable at 2.3% QoQ in Q1 2019, raising monthly rent to S$9.64 (US$7.12). Increasing landlord confidence underpinne
Slide 42: Market Outlook: Indonesia, Residential
Market Outlook: Indonesia, Residential Overall sales remain low; election on the minds of buyers JLL, Jakarta Property Market Review Q4 2018 • The LRT and MRT projects are of particular interest to residential developers and a number of projects with access to these transport corridors are already i
Slide 43: Market Outlook: Indonesia, Retail
Market Outlook: Indonesia, Retail Mobile payment platforms expanding; no new malls completed JLL, Jakarta Property Market Review Q4 2018 • Occupancy levels in Jakarta’s prime malls remained high in 4Q18 and options for expanding tenants remained limited – particularly given the lack of supply. The m