Metro Holdings Ltd · SGX:M01
Metro — FY2023 Earnings Presentation
69 slides from Metro's earnings presentation, May 26, 2023
Slide 1: Metro Holdings Limited FY2023 Results Presentation
METRO HOLDINGS LIMITED FY2023 RESULTS PRESENTATION 26 MAY 2023
Slide 2: Contents
CONTENTS 1. Metro At A Glance 2. Investments In FY2023 3. Positioned For Resilience 4. Financial Highlights 5. Sustainability 6. Appendices 2
Slide 3: 1. Metro At A Glance
xa DA] METRO 1. Metro At A Glance
Slide 4: About Metro
About Metro Listed on the Mainboard of the SGX-ST since 1973 & headquartered in Singapore, Metro is a property investment and development group with a diversified net asset portfolio valued at S$1.5 billion & a turnover of S$117.2 million for the financial year ended 31 March 2023. Founded in 1957 b
Slide 5: Vision Strategy
Vision Metro aims to be a leading property investment and development group in the region, building on the synergies of our rich retail experience, strong foothold in our core markets, & our strategic partnerships. Strategy 1. Continuing to grow in Singapore, China, Indonesia, the UK & Australia 2.
Slide 6: Diversification Through Geography & Sector
Diversification Through Geography & Sector United Kingdom London 5 Chancery Lane China Manchester Shanghai Guangzhou Middlewood Locks Metro City GIE Tower Milliners Wharf The Hat Box Metro Tower Bay Valley Chengdu Sheffield Shanghai Plaza The Atrium Mall Sheffield Digital Campus Bristol Warwick Sing
Slide 7: Diversification Through Partnerships
Diversification Through Partnerships China United Kingdom (1993) (2014) (2004) (2018) (2007) (2011) (2020) (2018) Indonesia (2019) (2001) (2019) (2017) Singapore Australia (2012) (2019) (2019) (2020) Note: Year in brackets refer to year where partnership was established 7
Slide 8: 2. Investments In FY2023
2. Investments In FY2023 8
Slide 9: J'Forte Building, Singapore
J’Forte Building, Singapore J’Forte Building Acquires high-spec industrial property J’Forte Building at 26 Tai Seng Street via Description the Boustead Industrial Fund (“BIF”), BIF’s 16th property in Singapore Boustead Industrial Partners / Fund / Fund Management Manager Pte. Ltd. % owned by Group 2
Slide 10: Shepparton Marketplace, VIC, Australia
Shepparton Marketplace, VIC, Australia Mall Entrance Further expands its existing Australian portfolio with the acquisition of freehold Shepparton Marketplace in Description Victoria (17th property in Australia), allowing a more balanced retail exposure across New South Wales and Queensland Partners
Slide 11: Purpose-Built Student Accommodations (PBSA), UK
4 Purpose-Built Student Accommodations (“PBSA”), UK Grows UK PBSA fund (“Paideia Capital UK Trust”) to 6 freehold properties, adding 4 Description acquisitions in Durham, Exeter, Glasgow & Kingston in May 2022 to existing PBSAs in Warwick (Dec 2020) & Bristol (Jan 2021). 5. Glasgow Partners 3. Durha
Slide 12: DocMed, Singapore
DocMed, Singapore 1. In May 2022, Metro invested S$6.0 million for a 10% stake in DocMed’s Series A fund raising, the digital healthtech unit of Catalist-listed Hyphens Pharma International. 2. Business Overview i. Largest B2B Online Pharma Marketplace in Singapore ii. First & only e-pharma licensed
Slide 13: 3. Positioned For Resilience
3. Positioned For Resilience 13
Slide 14: Investment Properties
Investment Properties GIE Tower Metro City Metro Tower 5 Chancery Lane, Asia Green, 广州国际电子大厦, 美罗城, 美罗大厦, London, UK Singapore Guangzhou, China Shanghai, China Shanghai, China Type of Commercial Retail Commercial Commercial Commercial Development Lifestyle Grade-A office Office building Two blocks of
Slide 15: Investment Properties
Investment Properties Tenant Mix by Total Leased Area: (as at 31 March 2023) GIE Tower 广州国际电子大厦, Metro City美罗城, Metro Tower美罗大厦, 5 Chancery Lane, Asia Green, Guangzhou, China Shanghai, China Shanghai, China London, UK Singapore Expiry 1HFY2024 5.7% 17.2% 8.5% 100.0%1 5.2% Profile 2HFY2024 16.0% 21.2
Slide 16: 25th Anniversary of Metro City, Shanghai, China
25th Anniversary of Metro City, Shanghai, China 16
Slide 17: Investment Properties
Investment Properties Bay Valley 洋浦, Shanghai Plaza 上海广场, The Atrium Mall晶融汇, Shanghai, China Shanghai, China Chengdu, China Type of Commercial Mixed-use Retail Development Office buildings (A4, C7 & 99.1% of Retail mall, centrally located at LEED® Gold certified commercial Key Project C4) located i
Slide 18: Overview of Australian Portfolio
Overview of Australian Portfolio Building Scale Across 13 Defensive Retail Centres & 4 Offices Located in New South Wales, Victoria, Queensland & Western Australia Valuation(2): A$1,205m (S$1,069m) NLA(1): 163,931 sqm 2 30% owned by Metro Ropes Crossing Village, NSW Portfolio WALE by income of
Slide 19: Overview of Boustead Industrial Fund (BIF) Portfolio
Overview of Boustead Industrial Fund (“BIF”) Portfolio Diversified Portfolio Of 16 Properties Across Singapore(1) Comprising 1 Business Park, 6 High-Spec Industrial, 6 Industrial & 3 Logistics Properties Valuation(2): S$747.9m NLA(2): 2,176,995 sqft 26% owned by Metro Portfolio WALE by income
Slide 20: Overview of Purpose-Built Student Accommodation (PBSA)
Overview of Purpose-Built Student Accommodation (“PBSA”) Building Scale In Defensive UK PBSA Segment Grows UK PBSA Fund “Paideia Capital UK Trust” to six freehold properties Valuation(2): £135.5m (S$222.8m) No. of Beds(1): 902 30% owned by Metro Partners/Fund Manager: / (33.3% owned Occupancy(
Slide 21: Trading Properties
Trading Properties Bay Valley洋浦, Trans Park Juanda, Bekasi, Trans Park Bintaro, Shanghai, China Jakarta, Indonesia Jakarta, Indonesia Type of Commercial Residential Residential Development Office buildings 5,660 units with total GFA(1) of 2 residential towers comprising Key Project (0.9% of C4) loca
Slide 22: Trading Properties
Trading Properties Milliners Wharf The Hat Box, Middlewood Locks, Sheffield Digital Campus, Manchester, UK Manchester, UK Sheffield, UK Type of Development Residential Mixed-use Commercial Phase 1 sold 2,215 units and commercial Key Project (144 apartments); space including offices, hotel, Two offic
Slide 23: Overview of Daiwa House Logistics Trust (DHLT)
Overview of Daiwa House Logistics Trust (“DHLT”) Asia-Focused Logistics REIT With High Quality Modern Properties Following Metro’s 26 November 2021 cornerstone investment in DHLT IPO in 7.44% owned by Metro(1) Singapore, the Group formed a strategic collaboration with Daiwa House Industry (51,625,
Slide 24: Retail
Retail • Overall Singapore retail environment will continue to be challenging, as total retail sales dropped by 8.2% MoM in January 2023(1), impacted by the higher inflation-driven costs in raw material, labour and energy amidst a highly competitive trading environment. These factors will continue t
Slide 25: 4. Financial Highlights
4. Financial Highlights 25
Slide 26: Key Financial Highlights – FY2023
Key Financial Highlights – FY2023 S$M Revenue 140 16.7% 117.2 120 100.5 1 • Revenue grew 16.7% to S$117.2m in FY2023, from S$100.5m in FY2022 100 • Higher contribution from retail division driven by higher sales from Metro Paragon & 80 Metro Causeway Point, Singapore 60 104.0 • Partially offset by l
Slide 27: Key Financial Highlights – FY2023
Key Financial Highlights – FY2023 NAV Per Basic EPS Share 3.0 cents S$1.76 3.4% YoY 7.9% YoY FY2022 FY2022 S$1.91 2.9 cents Return on Return on Total Assets(1) Equity(1) 1.0% 1.7% 0.0% YoY 13.3% YoY FY2022 FY2022 1.0% 1.5% Remarks: (1) In calculating return on equity and return on total assets, the
Slide 28: Fiscal Discipline & Resilience
Fiscal Discipline & Resilience(1) Healthy cash balance, available undrawn facilities and disciplined financial management positions us well to weather future economic headwinds and capitalise on opportunities Strong Balance Sheet, S$343.9m S$1.5b Healthy Cash & Banking Lines Cash & Cash Equivalents
Slide 29: Key Financial Highlights – FY2023
Key Financial Highlights – FY2023 Proposed Dividend(1) S$18.6 million Comprises: • Ordinary Dividend 25.0% YoY - 2.0 cents • Special Dividend FY2022 - 0.25 cent S$24.8 million Dividend Cover 1.35x 42.1% YoY FY2022 0.95x Remarks: (1) FY2023’s proposed dividend subject to shareholders’ approval at the
Slide 30: Dividend Payout
Dividend Payout Cents per Share 104.8% Payout Ratio 100% 8 75% 6 74.1% 5 3 3 51.4% 50% 4 51.2% 51.3% 2.5 50.7% 38.7% 26.0% 1 25% 2 0.25 0.25 2 2 2 2 2 2 2 2 0% 0 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023* Payout ratio Special Ordinary * FY2023’s proposed dividend subject to shareholder
Slide 31: Consolidated Income Statement
Consolidated Income Statement 2nd Half Year Ended Full Year Ended (S$ ‘000) 31-Mar-23 31-Mar-22 Change 31-Mar-23 31-Mar-22 Change Revenue 63,350 59,718 6.1% 117,237 100,503 16.7% Profit Before Tax 11,003 9,344 17.8% 31,723 31,699 0.1% Comprising: Metro City, Metro Tower, GIE Tower, The Atrium, 22,77
Slide 32: Balance Sheet Highlights
Balance Sheet Highlights As at (S$ million) Change 31-Mar-23 31-Mar-22 Investment Property 106.2 115.7 (8.2%) Associates 955.9 985.7 (3.0%) Joint Ventures 340.7 394.7 (13.7%) Other Non-current Assets 154.6 189.9 (18.6%) Current Assets 788.4 817.3 (3.5%) Total Assets 2,345.8 2,503.3 (6.3%) Current Li
Slide 33: Key Financial Highlights – 2HFY2023
Key Financial Highlights – 2HFY2023 S$M Revenue 6.1% 70 63.4 60 59.7 50 1 • Revenue increased 6.1% to S$63.4m in 2HFY2023, from S$59.7m in 2HFY2022 40 • Higher contribution from retail division driven by higher sales from Metro Paragon & 30 51.3 56.7 Metro Causeway Point, Singapore • Partially offse
Slide 34: 5. Sustainability
xa DA] METRO 5. Sustainability 34
Slide 35: Our Commitment To Sustainability: Initiatives & Progress
Our Commitment To Sustainability: Initiatives & Progress 24 Feb 2023 – Metro 65 Tree Planting With NParks 16 Dec 2022 – Ben Kheng & Annette Perform @ Paragon Partners NPark’s OneMillionTrees Movement to plant 65 Metro pledges 1.5% of December 2022 retail revenue towards trees on Coney Island to comm
Slide 36: Our Commitment To Sustainability: Initiatives & Progress
Our Commitment To Sustainability: Initiatives & Progress Continuing to build a resilient and resource-efficient real estate portfolio Asia Green, Singapore GSK Asia House, Singapore 85 Tuas South Ave 1, Singapore 50 Margaret Street, NSW, Australia BCA Green Mark Platinum BCA Green Mark Gold Plus BCA
Slide 37: Our Commitment To Sustainability: Initiatives & Progress
Our Commitment To Sustainability: Initiatives & Progress Metro wins Best Retail Sustainability Award 2022 at the SRA Retail Awards 2022(1) (2) (3) Singapore Corporate Awards 2022 Best Chief Financial Officer Award(5) Announced 30 August 2022 (4) A Collaboration Between Ranked 92 of 489 SGX Listcos S
Slide 38: Thank You
xa DA] METRO Thank You 38
Slide 39: 6. Appendices
xa DA] METRO 6. Appendices 39
Slide 40: A. Market Outlook
xa DA] METRO A. Market Outlook 40
Slide 41: Global Outlook
Global Outlook Interest Rates to Remain Higher for Longer to Address Sticky Inflation IMF, World Economic Outlook – A Rocky Recovery, April 2023 • Spurred by pent-up demand, lingering supply disruptions, and commodity price spikes, inflation reached multidecade highs last year in many economies, lea
Slide 42: Market Outlook: SG, Office
Market Outlook: SG, Office Core CBD gross effective rents Premium & Grade A office rents grow but at a slower pace Colliers, Office Q12023: Holding up, April 2023 MTI, Economic Performance In Third Quarter 2022, November 2022 • Core CBD Premium & Grade A office rents continued its eight consecutive
Slide 43: Market Outlook: SG, Residential
Market Outlook: SG, Residential More Launches In 2023 Than 2022 CBRE Research, 2023 Singapore Real Estate Outlook, 2023 MTI, Release of 4th Quarter 2022 Real Estate Statistics, January 2023 • In 2023, there will be more launches compared to 2022, with SG Residential Sales Growth Forecast the bulk of
Slide 44: Market Outlook: SG, Retail
Market Outlook: SG, Retail Return To Growth Even As Risks Looms CBRE Research, 2023 Singapore Real Estate Outlook, 2023 Cushman & Wakefield, Retail Q12023, 2023 • Singapore total retail sales dropped by 8.2% month-on- SG Retails Set to Grow in 2023 month in January 2023, as consumer spending slows p
Slide 45: Market Outlook: SG, Logistics
Market Outlook: SG, Logistics Industrial Demand Sustains Despite Headwinds Cushman & Wakefield, Singapore, Industrial Q12023 JLL, Property Market Monitor Singapore, April 2023 • Prime logistics properties and conventional warehouses outperformed in Q12023 with rents rising by 7.5% and 3.1% respectiv
Slide 46: Market Outlook: China, Office
Market Outlook: China, Office Finance And Tech To Dominate Market Demand CBRE China Research, China Real Estate Market Outlook, February 2023 • Office rental demand is expected to stabilise in Q22023, with net absorption forecasted to reach 5 million sqm, on par with the past five-year average. • Fi
Slide 47: Market Outlook: Shanghai, Office
Market Outlook: Shanghai, Office Improved Market Sentiment Savills, Shanghai Office, April 2023 • The beginning of the year saw the resumption of a number of project construction, as the government’s priorities shifted from zero COVID to economic growth and business resumption. • As business activit
Slide 48: Market Outlook: Shanghai, Retail
Market Outlook: Shanghai, Retail Recovery Expected In Second Half Of 2023 Savills, Shanghai Investment, April 2023 • No new projects within the Outer Ring Road were launched onto the market in the first quarter of 2023. • The total shopping malls and department stores stock was 14.9 million sqm, wit
Slide 49: Market Outlook: Chengdu, Retail
Market Outlook: Chengdu, Retail Consumption Recovery Gains Traction, No New Supply In Q12023 Savills, Chengdu Retail, April 2023 • The consumption market has been recovering, with the pandemic impacts subsiding. • Retail sales of consumer goods in Chengdu reached RMB149 billion from January to Febru
Slide 50: Market Outlook: Guangzhou, Office
Market Outlook: Guangzhou, Office Leasing Sentiment Improves Savills, Guangzhou Office, April 2023 • The market showed signs of recovery in Q12023 with leasing Grade A Office Supply, Net Take-Up and Vacancy sentiment, site visits and closure of deals increasing notably Rate, 2018 to Q12023 compared
Slide 51: Market Outlook: Indonesia, Residential
Market Outlook: Indonesia, Residential Improving Sentiment This Year Colliers, Quarterly, Apartment, Jakarta, 5 April 2023 • Typically, Q1 sees a slowdown in rental market, particularly in January and February due to the New Year and Chinese New Year holidays. • Occupancy level in Q12023 declined du
Slide 52: Market Outlook: UK, Office
Market Outlook: UK, Office Cyclical Slowdown In Aggregate Leasing Activity CBRE, Market Outlook 2023 UK, 7 December 2022 • A slowdown in the UK economy will adversely impact UK Office-Based Employment Growth Forecast demand for office space. Office based employment in the UK is expected to fall by c
Slide 53: Market Outlook: UK, Residential
Market Outlook: UK, Residential Housing Prices To Moderate, Rental Sector To Remain Strong CBRE, Market Outlook 2023 UK, 7 December 2022 Net Tenant Demand and Change in Rent • The housing market will be turbulent in 2023 as borrowers, who already face a significant increase in their cost of living,
Slide 54: Market Outlook: UK, PBSA
Market Outlook: UK, PBSA Strong Operational Performance And Future Growth Prospects Knight Frank, Student Property Report UK, 19 January 2023 Cushman & Wakefield, UK Accommodation Report, 8 August 2022 Projected Increase in full-time Undergraduates • Occupancy within all types of student accommodati
Slide 55: Market Outlook: Central London, Office
Market Outlook: Central London, Office Leasing Activity Dominated By Finance Sector, Tech Sector Favours Quality Office Space Over Total Footprint JLL, Central London Office Market Report, 4Q2022 Central London Quarterly Take-up 2013-2022 • Leasing activity slowed for the second consecutive quarter,
Slide 56: Market Outlook: Sheffield, Office
Market Outlook: Sheffield, Office Continuing Flight-to-quality Trend, Failing Availability Of Prime Space To Put Further Upward Rental Pressure Savills, UK Regional Office Market Report, Spring 2023 Occupier Knight Frank, Sheffield Office Market, Q42022 • The latest office occupancy data shows that
Slide 57: Market Outlook: Manchester, Office
Market Outlook: Manchester, Office Total Take-up Broadly In Line With Five-year Average, Grade A Space Declined At A Faster Rate Savills, Manchester Occupational Office Data Q42022, February 2023 Manchester Office Take-up • Total take-up for the Manchester City Centre market reached 1.2 million sqft
Slide 58: Market Outlook: Sydney, Office
Market Outlook: Sydney, Office Positive Sentiment; Poised For Long-term Recovery Knight Frank, Sydney CBD Office, February 2023 • The Australian economy remains resilient, backed by multiple economic indicators such as a strong labour market, and historically low unemployment. • Lease deal volumes o
Slide 59: Market Outlook: Sydney, Retail
Market Outlook: Sydney, Retail Resilience In Retail Trade And Yields In Q42022; Subdued Outlook For 2023 Colliers, Australian Retail Snapshot, Q42022 • Retail sales in Australia continued its positive trajectory, with monthly growth recorded in 10 of the previous 12 months to November 2022. Overall,
Slide 60: Market Outlook: Melbourne, Office
Market Outlook: Melbourne, Office Market Slows But Good Demand For Quality Space Knight Frank, Melbourne CBD Office Market Report, March 2023 • The Melbourne Premium and Grade A markets remained resilient even as the overall leasing market weakened with the uncertainty in global markets and the slow
Slide 61: Market Outlook: Melbourne, Retail
Market Outlook: Melbourne, Retail Leasing Momentum Slows Despite Resilient Retail Trade JLL, Asia Pacific Retail, Q42022 • Melbourne’ retail spending recorded its highest growth of 13.5% y-o-y across all states in October 2022. • However, the retail leasing market remained subdued as retailers faced
Slide 62: Market Outlook: Queensland, Office
Market Outlook: Queensland, Office Demand Remains Strong For Office CBD, Industrial Assets Cushman & Wakefield Research, Brisbane CBD, Office Q12023 • CBD Office: Gross effective rents have risen across all office grades in Q12023. The Premium grade rose 2.1% in Q12023 to average $985 sqm Brisbane C
Slide 63: Market Outlook: Queensland, Retail
Market Outlook: Queensland, Retail Market Stable, Non-discretionary Assets Highly Valued JLL, Retail Research Asia Pacific Q42022 Financial Indices • Queensland’s retail turnover growth remained positive, and increased by 9.1% YoY in October 2022, though this has fallen below the national average of
Slide 64: Market Outlook: Western Australia, Office
Market Outlook: Western Australia, Office Sustained Positive Sentiment; CBD Office Market Remains Limited Knight Frank, Perth CBD Office, Market Report, March 2023 • Reflecting the sustained strength of economic and employment growth, Perth CBD has recorded a high level of net absorption over the pa
Slide 65: Market Outlook: Western Australia, Retail
Market Outlook: Western Australia, Retail WA Retail Turnover Growth Remains Elevated JLL, Retail Research Asia Pacific, Q42022 • Western Australia retail spending continues to record strong growth in October 2022. • Only two significant completions (>1,000 sqm) were recorded during 4Q2022, with tota
Slide 66: B. Key Milestones
xa DA] METRO B. Key Milestones 66
Slide 67: Key Milestones
Key Milestones 1957 1982 1989 1992 1995 2004 2009 First Metro store Transmarco Group Official launch and • Launch of Shanghai • Launch of The Invested in ICT Opened EC Mall opened on 72 was created and ground-breaking Roway residential project Oasis Resort in Plaza, a retail in Beijing, China High S
Slide 68: Key Milestones
Key Milestones 2011 2013 2015 2017 2019 Invested in Top Acquired a serviced Group invested in • Acquired three office • Issued S$200 million 4.30% notes due 2024 Spring apartment Shama BentallGreenOak buildings in Bay Valley, • Acquired Asia Green in Singapore International Century Park, China Real
Slide 69: Key Milestones
Key Milestones 2021 Dean Street Works, Bristol, UK 2023 J’Forte Building, Singapore • Acquired second UK PBSA in Bristol • Acquires high-spec industrial property • Invested and exited European Logistics Fund J’Forte Building under • Invested into United Hampshire US REIT the Boustead Industrial • Ac