Kerry Properties Limited · HKEX:683
Kerry Properties — H1 2021 Earnings Presentation
36 slides from Kerry Properties's earnings presentation, Aug 19, 2021
Slide 1: FY 2021 Interim Results Analyst Briefing
FY 2021 INTERIM RESULTS ANALYST BRIEFING 19 AUGUST 2021
Slide 2: Key Summary
KEY SUMMARY Profit Attributable to Revenue Gross Profit Shareholders Interim Dividend HK$6.4B HK$3.7B HK$3.8B HK$0.40/share +63% YoY +53% YoY +251% YoY Maintained YoY Property Sales +133% YoY Property Sales +164% YoY Underlying Profit HK$ 2.4B +113% YoY Payout ratio 24.7% Property Rental +14% YoY Pr
Slide 3: 2021 Interim Results Highlights
2021 INTERIM RESULTS HIGHLIGHTS HONG KONG PROPERTY Key Properties Sales ✓ Mont Rouge, The Bloomsway, Mantin Heights, 10 LaSalle Land Acquisition ✓ Yuen Long Shap Pat Heung Sites (June 2021) 2021 2H Major DP Launches ✓ LA MARINA, No.3 Lung Kui Road ✓ Accumulated attributable GFA for upcoming 5 projec
Slide 4: 1H 2021 Results Snapshot: Gross Profit Margin
1H 2021 RESULTS SNAPSHOT Gross Profit Margin Higher margins on property sales and hotel operations • Property Sales margins of 46% were Gross Profit Margin Performance supported by luxury projects in Hong Kong and the Mainland. 80% 77% • Property rental margins were 77% on 61% 57% higher operating c
Slide 5: Development Properties: Strong Contracted Sales Performance
DEVELOPMENT PROPERTIES Strong Contracted Sales Performance Achieved 61% of Full-Year 2021 Sales Target of HK$13.5B • Our contracted sales on the Mainland achieved 1H 2021 Contracted Sales +76% YoY HK$6.17B, or 78% of the division’s full-year target of HK$7.9B. This was driven by the Group’s growing
Slide 6: Development Properties – Overseas: Pasir Ris Singapore JV Project
DEVELOPMENT PROPERTIES – OVERSEAS Pasir Ris 8 – Singapore JV Project 85% Sell-through on Launch Weekend Project Particulars Acquisition Date 2019 Residential GFA (s.m) 42,000 Residential Units 487 units KPL’s Interest 30% Completion 2026 • Pasir Ris 8, the joint venture project between Allgreen and
Slide 7: Development Properties – New Acquisition: Yuen Long Shap Pat Heung
DEVELOPMENT PROPERTIES – NEW ACQUISITION Yuen Long Shap Pat Heung Agricultural Land projects Yuen Long – Shap Pat Heung Yuen Long – Tai Tong Road Project Particulars • In June, we invested in two sites in Yuen Long and intend to co- develop a residential project with around 500 units. It is Acquisit
Slide 8: Development Properties – 2H 2021 Pipeline
DEVELOPMENT PROPERTIES – 2H 2021 PIPELINE 2H 2021 Contracted Sales Pipeline HONG KONG MAINLAND MAJOR NEW PROJECT SALES LAUNCHES LA MARINA NO.3 LUNG KUI ROAD, THE ARCADIA HABITAT WONG CHUK HANG BEACON HILL SHENYANG PHASE 3A QINHUANGDAO PHASE 2 Q3 Launch Target Q4 Launch New Phases Q3 Launch June 2021
Slide 9: Investment Properties: Resilient Results from Portfolio
INVESTMENT PROPERTIES Resilient Results from Investment Properties Portfolio Strong Growth and Recovery in Property Rental and Hotel Operations Property Rental Revenue Hong Kong IP – Occupancy rate As at 30 Jun 21 As at 31 Dec 2020 HK$ million YoY Residential 94% 83% Variance +14% Retail 94% 100% 2,
Slide 10: Investment Properties
INVESTMENT PROPERTIES Total Property Rental Revenue Mainland - Eight Completed Mixed-Use Properties in Major Cities (Including attributable rental income from associates) HK$ million Shanghai Shanghai YoY Beijing Shenzhen Pudong JingAn Variance 1998 2008 2011 2013 +14% 2,885 Qianhai Tianjin Hangzhou
Slide 11: Growth in IP Asset Base with Stable Margin
INVESTMENT PROPERTIES Growth in IP Asset Base with Stable Margin Enables Recurrent Income Growth 1H 2021 Gross Profit Breakdown Property Sales 37% Recurrent 35% Mainland 63% 65% 63% Property Rental 65% & Hotel Operations Recurrent Non-recurrent Mainland HK HK$ million Gross Profit Gross Margin Recur
Slide 12: Financial Position: Continuing to Strengthen our Balance Sheet
FINANCIAL POSITION Continuing to Strengthen our Balance Sheet Cash and Bank Balance and Undrawn Bank Loan Facilities increased 14%; Gearing improved by 120bp HK$ million As at 30 Jun 2021 As at 31 Dec 2020 Change Total Debt 42,951 44,534 -4% Cash and Bank Balance 15,957 16,995 -6% Net Debt 26,994 27
Slide 13: Financial Position: Debt Maturity Profile
FINANCIAL POSITION Debt Maturity Profile Continuing to Lengthen our Debt Maturity to Match our Assets and Investments Debt Maturity Profile as at 30 June 2021 HK$ million 13,542 12,675 7,819 3,860 3,143 1,912 Within 1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years Over 5 Years HK$ million As at 30 Jun
Slide 14: Update on Partial Offer & Disposal of Kerry Logistics Network Shares
UPDATE ON PARTIAL OFFER & DISPOSAL OF KERRY LOGISTICS NETWORK SHARES • The Company entered into six placing agreements on 9 August 2021 in relation to the proposed placing of the Proposed Placing Mandate at a sale price of HK$16.92 per share. • Following the entering into of the Placing Agreements,
Slide 15: Q&A
15 Q&A KERRY PROPERTIES LIMITED • 2021 INTERIM RESULTS 15
Slide 16: Appendix
16 APPENDIX A. Financial Summary and Group Operating Segments B. 1H 2021 Contracted Sales – HK / Mainland C. Investment Properties – HK / Mainland D. Major Properties Under Development – HK / Mainland E. Land Bank – Overview / HK / Mainland KERRY PROPERTIES LIMITED • 2021 INTERIM RESULTS 16
Slide 17: A. Financial Summary
A. FINANCIAL SUMMARY HK$ million 1H 2021 1H 2020 Change Revenue 6,374 3,918 +63% Gross profit 3,659 2,395 +53% Share of results of associates and joint ventures * 1,583 559 +183% Underlying profit 2,358 1,106 +113% Net increase in fair value in investment properties 1,415 (32) +4522% Reported profit
Slide 18: A. Group Operating Segments
A. GROUP OPERATING SEGMENTS HK$ million Revenue Gross Profit Gross Margin 1H 2021 1H 2020 Change 1H 2021 1H 2020 Change 1H 2021 1H 2020 Property sales 2,931 1,259 +133% 1,356 513 +164% 46% 41% HK 2,008 883 +127% 767 327 +135% 38% 37% Mainland 923 376 +145% 589 186 +217% 64% 49% Property rental * 2,6
Slide 19: B. 1H 2021 Contracted Sales – HK
B. 1H 2021 CONTRACTED SALES – HK Projects on sale KPL’s Total Units Accumulative units Inventory ASP achieved Sales proceeds in interest project sold in sold as at as at 30 Jun 2021 in 1H 2021 1H 2021^ (%) units 1H 2021 30 Jun 2021 (units) HK$ psf HK$ bn MAJOR PROJECTS Resi: 49,100 1 Mont Rouge 100%
Slide 20: B. 1H 2021 Contracted Sales – Mainland
B. 1H 2021 CONTRACTED SALES – MAINLAND Major projects on sale Product Contracted GFA Sold ASP KPL’s (100% subsidiaries + KPL’s interest for type sales ^ s.m achieved interest associates) RMB’M in 1H 2021 RMB psm 1 Zhengzhou - residential 鄭州雅頌居 R 1,343 42,770 31,400 55% 2 Qianhai 1 - residential 深圳前海
Slide 21: C. Investment Properties – HK
C. INVESTMENT PROPERTIES – HK HK Property Rental ▪ Occupancy at 30 Jun 2021 : 94% Gross rental revenue: HK$0.7B Retail ▪ Megabox’s average unit rent of $30 psf (includes attributable rental income from associates) 1.2M s.f Attributable GFA 4.1M s.f Occupancy @ 30 Jun 2021 ▪ Occupancy at 30 Jun 2021
Slide 22: C. Investment Properties – Mainland
C. INVESTMENT PROPERTIES – MAINLAND Mainland Property Rental • GFA(100%)* 1.5M s.f Beijing • Occupancy (@ 30 Jun 2021) * 89% Gross rental revenue: HK$2.2B Kerry Centre • Yield on Cost * 20% (Revenue includes attributable rental income from associates. Occupancy excludes • Completion 1998 offices and
Slide 23: C. Investment Properties – Mainland GFA & Occupancy by Project
C. INVESTMENT PROPERTIES – MAINLAND GFA & OCCUPANCY BY PROJECT 30 Jun 2021 GFA & Occupancy Attributable GFA Beijing Shanghai Shenzhen Hangzhou Others Total Occupancy (000s s.f.) Office 711 1,388 2,839 102 549 5,589 92% ^ Retail 98 1,096 327 798 955 3,274 92% ^ Residential 277 774 - - - 1,051 88% Tot
Slide 24: C. Investment Properties – Mainland Occupancy by Segment
C. INVESTMENT PROPERTIES – MAINLAND OCCUPANCY BY SEGMENT Occupancy rates (by segment) As at 30 Jun 2021 As at 31 Dec 2020 Residential 91% 92% Office 87% 88% 1 Beijing Kerry Centre Retail 95% 87% Average 89% 89% Residential 97% 96% Office 97% 95% 2 Jing An Kerry Centre Retail 96% 91% Average 97% 94%
Slide 25: C. Investment Properties – Mainland Major Mixed Use Portfolio
C. INVESTMENT PROPERTIES – MAINLAND MAJOR MIXED USE PORTFOLIO Jing An Kerry Centre, Shanghai Puxi GFA ( million s.f.) 3.7M s.f Retail 1.0 • Located in the heart of Shanghai’s Nanjing Road business district Office 1.7 • A pre-eminent shopping venue and exclusive office address in Residential 0.2 Shan
Slide 26: C. Investment Properties – Mainland Major Mixed Use Portfolio
C. INVESTMENT PROPERTIES – MAINLAND MAJOR MIXED USE PORTFOLIO Beijing Kerry Centre 2.2M s.f GFA ( million s.f.) Retail 0.1 • Continues to be an iconic presence at the heart of Beijing Office 1.0 • Located in the Chaoyang district, the city's commercial and financial Residential 0.4 center and within
Slide 27: C. Investment Properties – Mainland Major Mixed Use Portfolio
C. INVESTMENT PROPERTIES – MAINLAND MAJOR MIXED USE PORTFOLIO Tianjin Kerry Centre Ph 1 1.7M s.f GFA ( million s.f.) Retail 0.9 • Mixed-use development located on the east bank of the Haihe CBD in Hotel 0.8 Hedong District Total 1.7 • Phase I of the development includes a hotel, upscale residences f
Slide 28: C. Investment Properties – Mainland Major Mixed Use Portfolio
C. INVESTMENT PROPERTIES – MAINLAND MAJOR MIXED USE PORTFOLIO Shenyang Kerry Centre Ph 1 & 2 2.1M s.f GFA ( million s.f.) Retail 0.8 • Mixed-use development located at the east side of Qingnian Street Office 0.6 • Include a hotel, offices, a shopping mall and residences Hotel 0.7 • Phase I of the de
Slide 29: D. Major Properties Under Development – HK
D. MAJOR PROPERTIES UNDER DEVELOPMENT – HK Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) 1 No. 3 Lung Kui Road Beacon Hill R Fitting-out work 2021 100 342,769 in progress 2 LA MARINA, Wong Chuk Hang R Superstructure work 2023 50 246,496 P
Slide 30: D. Major Properties Under Development – Mainland
D. MAJOR PROPERTIES UNDER DEVELOPMENT – MAINLAND Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) MAJOR MIXED-USE DEVELOPMENT 1 Shenyang Kerry Centre Phase III Shenyang R /O/ RT Residential: Superstructure work topped In phases from 60 2,938
Slide 31: D. Major Properties Under Development – Mainland
D. MAJOR PROPERTIES UNDER DEVELOPMENT – MAINLAND Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest (%) Attributable GFA (s.f.) OTHER PROPERTIES UNDER DEVELOPMENT (CON’T) 7 Shenzhen Qianhai Kerry Centre Shenzhen H/O/RT Office: Curtain wall installation 2022 25 322,830 Ph
Slide 32: D. Qianhai Phase 1 partially completed in 2H 2020
D. MAJOR PROPERTIES UNDER DEVELOPMENT – MAINLAND Qianhai Phase 1 partially completed in 2H 2020 Site #3 T2 Office T1 Office T8 Office T6 Residential T9 Hotel T5 Residential T3 Residential Project Summary Site #1 Site #2 Site#3 T7 Office (Bank of East Asia) Land acquisition Jan-2015 Dec-2016 Dec-2018
Slide 33: E. Land Bank – Overview
E. LAND BANK – OVERVIEW Total Property Portfolio Attributable GFA: Approx. 48.8M s.f. (as of 30 Jun 2021) Held for sale 3% Hotel Macau 10% PUD 4% 54% Overall – Overseas Overall – Mainland 9% 75% By Type By Location HK 12% Completed IP 33% Hotel Retail 4% Residential for lease 20% 1% Macau 8% Oversea
Slide 34: E. Land Bank – HK
E. LAND BANK – HK HK Land bank Attributable GFA (‘000 s.f) Hotel Residential 1% for lease 15% Warehouse Completed Investment Properties 4,128 22% Warehouse 1,266 Office 13% 5.9M s.f in Retail 1,213 attributable Office 778 GFA Residential 871 Retail 21% Properties under development & others 1,436 Res
Slide 35: E. Land Bank – Mainland
E. LAND BANK – MAINLAND Mainland Land bank Attributable GFA (‘000 s.f) Hotel 14% Completed Investment Properties 9,914 Retail 22% Retail 3,274 Residential 36.5M s.f for sale Office 5,589 30% attributable Residential 1,051 GFA Properties under development ^ 20,922 Office 30% Completed properties held
Slide 36: Disclaimer
DISCLAIMER The information in this presentation is for personal, non-commercial reference and general information purposes only and should not be relied upon for investment decision purposes. The information in this presentation, including without limitation any stock price, market data information,