Prosperity Real Estate Investment Trust · HKEX:808
Prosperity Real Estate Investment Trust — FY2019 Earnings Presentation
23 slides from Prosperity Real Estate Investment Trust's earnings presentation, Mar 5, 2020
Slide 1: Final Results for the year ended 31 December 2019
INSERT YOUR TITLE HERE Final Results For the year ended 31 December 2019 March 2020
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
Slide 4: Results Highlights
Results Highlights The Metropolis Tower
Slide 5: Financials
1. Financials Revenue Net Property Distributable Distribution Income Income Per Unit 3.5% 4.3% 2.2% 1.0% HK$274.7m HK$462.3m HK$365.9m HK$446.8m HK$0.1810 HK$0.1828 HK$268.9m HK$350.8m FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 Rental Occupancy Cost-to-rev Average Reversion Rate enue Ratio Effective Ra
Slide 6: Share Price Performance By REIT Sector
2. Share Price Performance By REIT Sector Prosperity REIT’s unit price increment tops among all REITs in FY2019. New Langham Yue Xiu The Link Hui Xian Prosperity Fortune Sunlight Champion Jinmao Spring Century Regal Hospitality REIT REIT REIT REIT REIT REIT REIT Investment REIT REIT REIT Trust 10.0%
Slide 7: Share Price Performance By Property Sector
2. Share Price Performance By Property Sector Prosperity REIT’s share price has been resilient during China - US trade talks, local social incidents and coronavirus outbreak. Share Price Performance by Property Sector – China - US Trade Talks, Local Social Incidents (From 28 June 2019 to 31 December
Slide 8: Returns
3. Returns Stable and sustainable distribution to continue ● 100% payout ratio ● Defensive investment as proven in economic cycles ● 212.8%* total return since IPO DPU (HK$) 0.0906 0.0920 0.0933 0.0915 0.08710.0897 0.0871 0.0865 0.0890 0.0895 0.0815 0.0815 0.0744 0.0751 0.0694 0.0660 0.0554 0.0595 0
Slide 9: Financial Review
Financial Review Prosperity Millennia Plaza
Slide 10: Income Statement
Income 1. IncomeStatement Statement (HK$’000) FY19 FY18 Revenue 462,314 446,814 Revenue increased by Total property operating expenses (96,448) (96,003) 3.5% Net property income 365,866 350,811 NPI increased Interest Income 5,773 4,790 by 4.3% Manager’s fee (55,314) (53,610) Trust and other expenses
Slide 11: Financial Position
2. Financial Position As at As at Change All bank loan facilities are 31 Dec 2019 31 Dec 2018 unsecured. Total assets (HK$m) 11,552.2 11,386.0 1.5% None of the investment properties were pledged. Borrowings1 (HK$m) 2,319.9 2,311.9 0.3% Interest Rate 4 Other liabilities (HK$m) 595.5 549.7 8.3% Fixed
Slide 12: Debt Maturity Profile
3. Debt Maturity Profile No major refinancing needs until 2021 2,500 2,000 430 HK$ ’million 1,500 1,000 1,540 500 800 0 Aug 2021 Nov 2022 Year to Maturity Unsecured 5-yr term loan @ HIBOR+105 bps Unsecured 5-yr RCF @ HIBOR+82 bps Unsecured 5-yr term loan @ HIBOR+82 bps Prosperity REIT 2019 Annual Re
Slide 13: Portfolio Valuation
4. Portfolio Valuation Valuation by Property Type As at 31 Dec 2019 Commercial HK$1,889m ● Portfolio valuation at HK$11,126m, up Grade A Office 17.0% 1.2% compared to 31 Dec 2018 HK$6,820m 61.3% 18.5% Industrial/Office HK$2,056m 3.2% Industrial HK$361m (HK$’m) 31 Dec 2019 31 Dec 2018 Change The Metr
Slide 14: Operations Review
Operations Review 9 Chong Yip Street
Slide 15: Property Income
1. Property Income Revenue Net Property Income (“NPI”) Trendy Centre Trendy Centre HK$51.0m HK$37.5m Prosperity Center Prosperity Center Prosperity HK$41.6m HK$32.4m Place Prosperity HK$75.2m 11.0% Place 10.2% New Treasure HK$58.8m New Treasure 9.0% Centre 8.8% Centre 16.1% 16.3% HK$17.4m HK$13.0m 3
Slide 16: Occupancy Rates
2. Occupancy Rates Portfolio Occupancy Rates Above 95% Since 2006 (As at 31 Dec 2019) The Metropolis Tower 99.6% Prosperity Millennia Plaza 99.5% 9 Chong Yip Street 97.9% Prosperity Place 93.4% Trendy Centre 95.1% Prosperity Center (portion) 97.0% New Treasure Centre (portion) 100.0% Portfolio 97.3%
Slide 17: Lease Expiry Profile in 2020 and Beyond
3. Lease Expiry Profile in 2020 and Beyond Portfolio Lease Expiry Profile as at 31 Dec 2019 41.2% 39.0% 37.9% 36.9% 21.9% 23.1% 2020 2021 2022 & Beyond By Gross Rental Area By Gross Rental Income (GRA) (GRI) Expiry Profile as at 31 Dec 2019 By Gross Rental Area By Gross Rental Income Period sq.ft. %
Slide 18: Key Takeaways
Key Takeaways Prosperity Place
Slide 19: Key Takeaways
Key Takeaways 1. Topline Revenue increased by 3.5% Y-o-Y ● The main driver of growth was attributable to robust revenue growth at the Metropolis Tower which was stemmed from renowned enterprises moved in during 2H 2018; ● In addition, Prosperity Millennia Plaza’s occupancy rate and rental reversion
Slide 20: Appendix - Key Milestones since IPO
Appendix - Key Milestones since IPO Listed on Hong Kong Stock Acquired 9 Chong Yip Street Disposed of Harbourfront Exchange with 7 properties. for approx. HK$1 billion, Landmark Property for expanding our portfolio size approx. HK$0.88 billion, by 11.2%. 49.1% premium over valuation. 2005 2006 2007
Slide 21: Appendix - Portfolio Map
Appendix - Portfolio Map The Metropolis Tower 1 Trendy Centre 5 Total Gross Rentable Area: 1.28m sq.ft. GRA: 271,418 sq. ft. GRA: 173,764 sq. ft. Prosperity Prosperity Millennia Plaza 2 Center Property 6 GRA: 217,955 sq. ft. GRA: 149,253 sq. ft. 9 Chong Yip New Treasure Street 3 Centre Property 7 GR
Slide 22: Appendix - Key Facts
Appendix - Key Facts Key Facts as at 31 Dec 2019 IPO Date 16 Dec 2005 Unitholder Structure IPO Price HK$2.16 5.99% Public CKAH2 Indicative Yield (based on FY19 DPU of HK$0.1828 and closing unit price of HK$3.05 as at 31 December 2019) 81.7% 18.3% Number of Issued Units 1,502,622,001 Market Capitaliz
Slide 23: Appendix - Contacts
Appendix - Contacts ARA Asset Management (Prosperity) Limited (as manager of Prosperity REIT) Ms. Mavis Wong Chief Executive Officer maviswong@ara-group.com Mr. Vicho Chung Manager, Investments & Investor Relations vichochung@ara-group.com Mr. Alex Lao Senior Analyst alexlao@ara-group.com Unit 901,
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