Metro Holdings Ltd · SGX:M01
Metro — FY2022 Earnings Presentation
64 slides from Metro's earnings presentation, May 27, 2022
Slide 1: Metro Holdings Limited FY2022 Results Presentation
METRO HOLDINGS LIMITED FY2022 RESULTS PRESENTATION 27 MAY 2022
Slide 2: Contents
CONTENTS 1. Stronger, Further, Higher 2. Property Investment & Development 3. Investment in FY2022 4. Retail Operations 5. Financial Highlights 6. Vision & Growth Strategies 7. Market Outlook 8. Appendix 2 1
Slide 3: 1. Stronger, Further, Higher
1. Stronger, Further, Higher 3 2
Slide 4: 1. Who We Are
1. 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 reta
Slide 5: 1. Diversification Through Geography & Sector
1. Diversification Through Geography & Sector United Kingdom London 5 Chancery Lane China Shanghai Guangzhou Manchester Metro City GIE Tower Middlewood Locks Metro Tower Milliners Wharf The Hat Box Bay Valley Chengdu Shanghai Plaza The Atrium Mall Sheffield Sheffield Digital Campus Singapore Bristol
Slide 6: 1. Diversification Through Partnerships
1. Diversification Through Partnerships United Kingdom China (2014) (1993) (2018) (2004) (2020) (2007) (2011) Indonesia (2018) (2001) (2019) (2019) (2017) Singapore Australia (2012) (2019) (2019) (2020) Note: Year in brackets refer to year where partnership was established As at 27 May 2022 6
Slide 7: 2. Property Investment & Development
2. Property Investment & Development 7
Slide 8: 2. Investment Properties
2. Investment Properties GIE Tower, 5 Chancery Metro City, Metro Tower, Asia Green, Guangzhou, Lane, London, Shanghai, China Shanghai, China Singapore China UK Type of Commercial Retail Commercial Commercial Commercial Development Lifestyle Grade-A office Office building Two blocks of Part of a 7-st
Slide 9: 2. Investment Properties
2. Investment Properties Tenant Mix by Total Leased Area: (as at 31 March 2022) GIE Tower 广州电子大厦, Metro City美罗城, Metro Tower美罗大厦, Guangzhou, China Shanghai, China Shanghai, China FY2022 92.8% 88.0% 96.5% Occupancy Rate FY2021 92.8% 98.3% 89.4% 1HFY2023 16.5% 15.4% 24.4% Expiry Profile 2HFY2023 20.6%
Slide 10: 2. Investment Properties
2. Investment Properties Tenant Mix by Total Leased Area: (as at 31 March 2022) 5 Chancery Lane, Asia Green, London, UK Singapore FY2022 100.0% 92.2% Occupancy Rate FY2021 100.0% 78.1% 1HFY2023 0.0% 14.9% Expiry Profile 2HFY2023 100.0% 8.1% 5 Chancery Lane, London Asia Green, Singapore 6.7% 2.4% 13.
Slide 11: 2. Investment Properties
2. 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) locate
Slide 12: 2. Investment Properties
2. Investment Properties GSK Asia House Red Queen, Warwick Office building at 100 Edward Street, Brisbane Portfolio of 15 Industrial, Business Purpose-Built Student Portfolio of 16 Office & Retail Park, High-Spec Industrial and Accommodation, UK Properties, Australia(5) Logistics Properties, Singapo
Slide 13: 2. Trading Properties
2. Trading Properties The Crest, Prince Charles Trans Park Juanda, Bekasi, Trans Park Bintaro, Crescent, Singapore Jakarta, Indonesia Jakarta, Indonesia Type of Residential Residential Residential Development 5,660 units with total GFA(1) of 2 residential towers comprising Key Project 469 units with
Slide 14: 2. Trading Properties
2. Trading Properties Bay Valley洋浦, Shanghai, China Type of Commercial Development Office buildings Key Project (0.9% of C4) located in New Description Jiangwan City, Yangpu District with total GFA(1) of 328 sqm % owned by 30% Group Partners GDV(2)/Valuation(3) RMB9m (100% basis) (S$2m) Current Stat
Slide 15: 2. Trading Properties
2. 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 of
Slide 16: 3. Investments In FY2022
x4 DA] METRO 3. Investments In FY2022 16
Slide 17: 3. 351 Braddell Road, Singapore
3. 351 Braddell Road, Singapore 351 Braddell Road Acquires high-spec industrial property at Description 351 Braddell Road via the Boustead Industrial Fund (“BIF”), BIF’s 15th property Partners / Fund Boustead Industrial / Fund Management Manager Pte. Ltd. % owned by Group 26%(1) NLA (sqft) (2) 236,8
Slide 18: 3. Cherrybrook Village Acquisition, Increase Australia Portfolio and SLMC Equity Stake to 30%
3. Cherrybrook Village Acquisition, Increase Australia Portfolio and SLMC Equity Stake to 30% Cherrybrook Village Shopping Centre, NSW, Australia Acquires Cherrybrook Village Shopping Centre in New South Wales (16th Description property in Australia), increases Australia portfolio and SLMC equity st
Slide 19: 3. Daiwa House Logistics Trust (DHLT)
3. Daiwa House Logistics Trust (“DHLT”) DPL Sapporo Higashi Kariki, Sapporo Following Metro’s cornerstone investment in DHLT IPO in Singapore, the Group forms a strategic collaboration Description with Daiwa House Industry Co., Ltd by executing a Memorandum Of Understanding for further collaboration
Slide 20: 4. Retail Operations
x4 DA] METRO 4. Retail Operations 20
Slide 21: 4. Retail Operations
4. Retail Operations • Overall Singapore retail environment will continue to be challenging as retail sales remains about 5.1% below pre-pandemic (2019) levels(1). We expect macro trends and uncertainties to continue to weigh on our two department stores at Paragon and Causeway Point; • Online retai
Slide 22: 5. Financial Highlights
x4 DA] METRO 5, Financial Highlights 22
Slide 23: 5. FY2022 Key Financial Highlights
5. FY2022 Key Financial Highlights Reports FY2022 Net Profit After Tax of S$23.7 million as compared to S$37.0 million in FY2021 − Mainly due to an impairment loss of S$36.3 million on amounts due from associates on co-investments with BentallGreenOak (“BGO”) due to the ongoing China property sector
Slide 24: 5. FY2022 Key Financial Highlights
5. FY2022 Key Financial Highlights Retail division – Reports Net Profit Before Tax of S$2.8 million, from a Net Loss Before Tax of S$2.1 million in FY2021 − Metro’s retail revenue increased to S$86.6 million in FY2022 from S$72.8 million in FY2021 mainly due to closure of the two department stores i
Slide 25: 5. Key Financial Highlights – 2HFY2022
5. Key Financial Highlights – 2HFY2022 Revenue PBT S$59.7 million S$9.3 million 1.5% YoY 60.8% YoY 2HFY2021 2HFY2021 S$60.6 million S$23.8 million Remarks: (1) Revenue from the property division for 2HFY2022 decreased to S$8.4 million from 2HFY2021’s S$13.1 million mainly due to lower contributions
Slide 26: 5. Key Financial Highlights – FY2022
5. Key Financial Highlights – FY2022 Revenue PBT Basic EPS S$100.5 million S$31.7 million(1) 2.9 cents 3.3% YoY 33.4% YoY 34.1% YoY FY2021 FY2021 FY2021 S$97.3 million S$47.6 million 4.4 cents NAV Per Return on Return on Share Total Assets(2) Equity(2) S$1.91 1.0% 1.5% 2.7% YoY 37.5% YoY 37.5% YoY F
Slide 27: 5. Key Financial Highlights – FY2022 Proposed Dividend
5. Key Financial Highlights – FY2022 Proposed Dividend(1) S$24.8 million Comprises: • Ordinary Dividend 33.3% YoY - 2.0 cents • Special Dividend FY2021 - 1.0 cent S$18.6 million Dividend Cover 0.95x 51.8% YoY FY2021 1.97x Remarks: (1) FY2022’s proposed dividend subject to shareholders’ approval at t
Slide 28: 5. Consolidated Income Statement
5. Consolidated Income Statement 2nd Half Year Ended Full Year Ended (S$ ‘000) 31-Mar-22 31-Mar-21 Change 31-Mar-22 31-Mar-21 Change Revenue 59,718 60,606 (1.5%) 100,503 97,323 3.3% Profit Before Tax 9,344 23,815 (60.8%) 31,699 47,562 (33.4%) Comprising: Metro City, Metro Tower, GIE Tower, The Atriu
Slide 29: 5. Balance Sheet Highlights
5. Balance Sheet Highlights As at (S$ million) Change 31-Mar-22 31-Mar-21 Investment Property 115.7 111.7 3.6% Associates 985.7 773.3 27.5% Joint Ventures 394.7 367.9 7.3% Other Non-current Assets 189.9 138.2 37.4% Current Assets 817.3 956.2 (14.5%) Total Assets 2,503.3 2,347.3 6.6% Current Liabilit
Slide 30: 5. Dividend Payout
5. Dividend Payout Cents per Share 104.8% Payout Ratio 8 100% 75% 6 5 4 3 3 51.4% 4 50% 51.2% 51.3% 2.5 50.7% 38.7% 34.8% 26.0% 1 2 0.25 25% 2 2 2 2 2 2 2 2 0% 0 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022* Payout ratio Special Ordinary * FY2022’s proposed dividend subject to shareholder
Slide 31: 6. Vision & Growth Strategies
6. Vision & Growth Strategies 31
Slide 32: 6. Our Vision
6. Our 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, and our strategic partnerships 32
Slide 33: 6. Growth Strategies (Property)
6. Growth Strategies (Property) 1 Continue to grow presence in Singapore, China, Indonesia, the United Kingdom and Australia 2 Further diversify across sector and asset classes for resilience 3 Balanced portfolio of investment and development assets China • Commercial assets with retrofitting upside
Slide 34: 6. Growth Strategies (Property)
6. Growth Strategies (Property) 4 Strategic alliances with existing and new partners 5 Continue to achieve efficiency in capital recycling 6 Strengthen financial position whilst proactive asset management of our investment portfolios, and leveraging on the Group’s resources and unutilized credit fac
Slide 35: 6. Growth Strategies (Retail)
6. Growth Strategies (Retail) 1 Capitalise on retail brand name in Singapore 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 35
Slide 36: Thank You
x4 DA] METRO Thank You 36
Slide 37: 7. Market Outlook
x4 DA] METRO 7. Market Outlook 37
Slide 38: Market Outlook: Singapore, Office
Market Outlook: Singapore, Office Recovery Gains Traction, Led by the CBD Grade A Buildings Colliers, Office Market Outlook 2022, 15 February 2022 • CBD Grade A rents continued to increase in 4Q2021, amid resilient leasing demand mainly supported by occupiers pursuing flight to quality strategies, t
Slide 39: Market Outlook: Singapore, Residential
Market Outlook: Singapore, Residential Cooling Measures to Temper Market Exuberance CBRE, 2022 Market Outlook, 24 February 2022 • According to URA flash estimates, prices for private residential homes rose sharply by 10.6% for 2021, outpacing 2021’s preliminary GDP growth of 7.2%. CBRE Research esti
Slide 40: Market Outlook: Singapore, Retail
Market Outlook: Singapore, Retail Retail at a Turning Point CBRE, 2022 Market Outlook, 24 February 2022 • Positive outlook for retail consumption Online & Offline Spending – Singapore appears to be on the road to recovery, with the economy in the process of opening up, and businesses functioning wit
Slide 41: Market Outlook: Singapore, Logistics
Market Outlook: Singapore, Logistics Logistics Has Remained A Resilient Asset Class Amid The Pandemic JLL, Singapore Property Market Monitor, 18 April 2022 • Logistics/warehouse facilities experienced healthy demand in 1Q2022, supported largely by requirements for general storage and cold/temperatur
Slide 42: Market Outlook: China, Office
Market Outlook: China, Office Tech and Finance to Remain Key Drivers of Office Demand CBRE, 2022 Market Outlook China, 16 February 2022 • Net absorption set to weaken but will remain above 6 million sqm. • Major growth engines remain strong; demand underpinned by several sub-sectors. • Supply peak t
Slide 43: Market Outlook: Shanghai, Office
Market Outlook: Shanghai, Office Strong Demand with Limited Supply Pushed Vacancy Rates to Five-Year Lows Savills, Shanghai Office, 25 April 2022 • Grade A office rents increased 0.7% on an index basis, wit rates averaging RMB7.4 psm/day. Prime markets led the rental growth with 1.7%, followed by no
Slide 44: Market Outlook: Shanghai, Retail
Market Outlook: Shanghai, Retail End-users Fuel Market Savills, Shanghai Investment, 26 January 2022 • Five projects were launched onto the market in 4Q2021, adding a total GFA of 441,000 sqm. 16 projects with a total retail GFA of 1.4 million were launched for the full year. • The citywide shopping
Slide 45: Market Outlook: Chengdu, Retail
Market Outlook: Chengdu, Retail The Suburban Retail Market Surrounding Traditional Urban Areas Heats Up Savills, Chengdu Retail, 14 December 2021 •Three new shopping malls entered Chengdu’s retail market within traditional urban areas during the first three quarters of 2021, with a total GFA of 306,
Slide 46: Market Outlook: Guangzhou, Office
Market Outlook: Guangzhou, Office Leasing Market Rebounds Savills, Guangzhou, January 2022 • According to Guangzhou’s 14th Five-Yar Plan, the city’s Guangzhou Grade A Office Supply, Net Take-Up GDP is set to grow at a CAGR of 6% from 2021 to 2025, & Vacancy Rate, 2017 To 2021 reaching RMB3.5 trillio
Slide 47: Market Outlook: Indonesia, Residential
Market Outlook: Indonesia, Residential Mixed Sentiment This Year Colliers Quarterly, Jakarta, 6 April 2022 • The first quarter of a year usually sees a lull in residential leasing due to low business activities. • During such period this year, occupancy declined 2.85% to 58.2% in the quarter. • Whil
Slide 48: Market Outlook: UK, Office
Market Outlook: UK, Office New Beginnings CBRE, Market Outlook 2022 UK, 9 December 2021 • Office market take-up will return to trend levels in 2022 UK Office-Based Employment Growth Forecasts driven by healthy levels of job growth and the release of pent-up demand. • ESG will take centre stage as oc
Slide 49: Market Outlook: UK, Residential
Market Outlook: UK, Residential New Beginnings CBRE, Market Outlook 2022 UK, 9 December 2021 • The housing market will remain strong in 2022, but activity will UK Residential Sales, 3 month Moving Average be less frenetic than in 2021, particularly towards the end of the year when affordability begi
Slide 50: Market Outlook: UK, PBSA
Market Outlook: UK, PBSA Occupancy And Rent Collection Have Returned To Close To Historic Levels Savills, UK Purpose-Build Student Accommodation, 10 November 2021 • Whilst 2020 saw lower occupancy and rent collection, Purpose-Built Student Accommodation (PBSA) still weathered the pandemic better tha
Slide 51: Market Outlook: Central London, Office
Market Outlook: Central London, Office Strong Quarter In Both Leasing And Capital Markets JLL, Central London Office Market Report, 1Q2022 • Momentum in the leasing market continued into the first three Central London Take-up months of 2022, with 2.4 million sqft let across Central London. This was
Slide 52: Market Outlook: Sheffield, Office
Market Outlook: Sheffield, Office Regional Offices Provide An Attractive Yield Gap To Central London Savills, UK Regional Office Market Report, Summer 2020 Knight Frank, Sheffield Office Market, Q4 2021 • The COVID pandemic and the subsequent lockdown restrictions have resulted in investor caution;
Slide 53: Market Outlook: Manchester, Office
Market Outlook: Manchester, Office Manchester – Strongest Take-Up Of All Big 6 Regional Office Yields January 2022 Regional Office Markets JLL, Property Predictions 2021 Savills, UK Regional Offices, 8 March 2022 • The office market in Manchester once again saw its resilience throughout the year – a
Slide 54: Market Outlook: Sydney, Office
Market Outlook: Sydney, Office Positive Market Momentum Knight Frank, Sydney CBD Office Market, March 2022 • The economy is continuing its recovery, with a booming jobs Vacancy market and a pick up in wage growth pointing to a strong bounce back in business conditions and confidence levels over the
Slide 55: Market Outlook: Sydney, Retail
Market Outlook: Sydney, Retail Average Gross Rents By Sub-sector Retailer Demand Remained Generally Muted JLL, Retail Market Overview, 1Q2022 • In 1Q2022, retailer demand remained generally muted from uncertainty surrounding future trading conditions, footfall and consumer demand. • NSW recorded low
Slide 56: Market Outlook: Melbourne, Office
Market Outlook: Melbourne, Office Melbourne Bounces Back Knight Frank, Melbourne CBD Office Market Report, March 2022 • CBD office vacancy increased further in 2H2021, rising from 10.4% to 11.9%, reflecting a 136,699 sqm increase in net supply. • Demand for office space has rebounded strongly, with
Slide 57: Market Outlook: Melbourne, Retail
Market Outlook: Melbourne, Retail Victoria’s Retail Spending Remains Elevated Average Gross Rents By Sub-sector JLL, Retail Market Overview, 1Q2022 • Victoria’s retail spending remains elevated since the last lockdown. • The subdued leasing demand and declining rents have disrupted the medium-term s
Slide 58: Market Outlook: Queensland, Office
Market Outlook: Queensland, Office Recovery Faster Than Expected Brisbane Prime Gross Effective Rent, Overall Vacancy (6 Monthly) Cushman & Wakefield, Brisbane Marketbeat Reports, 7 April 2022 • CBD Office: Gross effective rents have remained stable in both the Premium and A-grade office markets acr
Slide 59: Market Outlook: Queensland, Retail
Market Outlook: Queensland, Retail Average Gross Rents By Sub-sector Queensland’s Retail Turnover Growth Slowed JLL, Retail Market Overview, 1Q2022 • Queensland’s retail turnover growth slowed to 4.9% (YoY0 in February 2022 (ABS) and has fallen below the national average of 5.3%. • The retail supply
Slide 60: Market Outlook: Western Australia, Office
Market Outlook: Western Australia, Office Demand For Office Space Rises Sharply Knight Frank, Perth CBD Office Market Report, March 2022 • The CBD vacancy rate declined further in 2H2021, falling from 16.8% to 15.0% reflecting strong demand for office space. • Net absorption rose by 47,853 sqm in 2H
Slide 61: Market Outlook: Western Australia, Retail
Market Outlook: Western Australia, Retail Average Gross Rents By Sub-sector WA Retail Spending Continues To Record Strong Growth JLL, Retail Market Overview, 1Q2022 • Western Australia retail spending continues to record strong growth despite weakened consumer sentiment. • No significant completions
Slide 62: 8. Appendix
x4 DA] METRO 8. Appendix 62
Slide 63: 8. Key Milestones
8. Key Milestones 1992 • Launch of Shanghai Roway residential 1982 project in 1995 Transmarco Group Shanghai, China • Launch of The 1957 was created and 1989 Oasis Resort in 2004 • GIE Tower, a First Metro store listed to handle Official launch and Cairns, Australia, Grade-A office Invested in ICT 2
Slide 64: 8. Key Milestones
8. Key Milestones 2021 • Acquired second UK PBSA in Bristol • Invested and exited European 2019 Logistics Fund 2017 • Issued S$200 million 4.30% • Invested into United Hampshire • Acquired three notes due 2024 US REIT office buildings in • Acquired Asia Green in Bay Valley, Singapore • Acquisition o