Sun Hung Kai Properties Limited · HKEX:16
Sun Hung Kai Properties — H1 FY2010 Earnings Presentation
27 slides from Sun Hung Kai Properties's earnings presentation, Mar 11, 2010
Slide 1: FY2010 Interim Results
Sun Hung Kai Properties Limited FY2010 Interim Results 11 March 2010 1 Sun Hung Kai Properties Limited
Slide 2: Agenda
Agenda Interim Results Highlights Business Review Hong Kong Mainland and Singapore Prospects 2 Sun Hung Kai Properties Limited
Slide 3: Interim Results Highlights
Interim Results Highlights 3 Sun Hung Kai Properties Limited
Slide 4: Interim Results Highlights
Interim Results Highlights Six months ended 31 December 2009 2008 Change Underlying net profit* (HK$m) 6,510 4,535 44% Underlying earnings per share* (HK$) 2.54 1.77 44% Reported net profit (HK$m) 14,338 692 19.7x Reported earnings per share (HK$) 5.59 0.27 19.7x Interim dividend per share (HK$) 0.8
Slide 5: Profit Breakdown
Profit Breakdown 6 months ended 31 December (HK$m) 2009 2008 Change Property sales 2,128 1,782 19% Net rental income 3,963 3,522 13% Hotel operation 186 193 4% Telecommunications 88 93 5% Other businesses 815 834 2% Other income/(losses) 351 (101) n/a Unallocated administrative expenses (430) (420)
Slide 6: Review of FY2010 Interim Results
Review of FY2010 Interim Results Booked property sales of HK$4,607m Increased contribution from improved margins Property sales and presales of HK$9,159m during the period, an increase of 22% from the previous period Sales and presales from: 1H FY2010 1H FY2009 Key projects in 1H FY2010 (HK$m)
Slide 7: Review of FY2010 Interim Results
Review of FY2010 Interim Results Net rental income rose 13% YoY Positive rental reversion for retail and office portfolios, particularly for International Finance Centre (IFC) Increased contributions from International Commerce Centre (ICC) and ION Orchard Positive change in fair value of in
Slide 8: Business Review: Hong Kong
Business Review Hong Kong 8 Sun Hung Kai Properties Limited
Slide 9: Land Bank – Hong Kong
Land Bank – Hong Kong Attributable GFA (m sq ft) Properties under development 18.0 Completed investment properties 26.1 44.1 About 25m sq ft (site area) of agricultural land Majority under conversion to residential use 9 Sun Hung Kai Properties Limited
Slide 10: Major Land Acquisitions - Hong Kong
Major Land Acquisitions - Hong Kong Group’s Site Interest Usage Attributable GFA (%) (sq ft) Yuen Long Town Lot 507 100 R/S 2,319,000 Tseung Kwan O Area 66B 100 R/S 728,000 Total 3,047,000 Key : R=Residential, S=Shopping Centre/Retail 10 Sun Hung Kai Properties Limited
Slide 11: Project Completions - Hong Kong
Project Completions - Hong Kong Group’s Project Interest Usage Attributable GFA (%) (sq ft) Valais I & II 100 R 683,000 Peak House 100 R 33,000 GreenView 100 R 27,000 One Harbour East 100 O 292,000 Total 1,035,000 Key : R=Residential, O=Office 11 Sun Hung Kai Properties Limited
Slide 12: Property Sales - Hong Kong
Property Sales - Hong Kong Major projects sold in 1H FY2010 Aria on Kowloon Peak The Cullinan at Kowloon Station The Latitude in Kowloon Sold or pre-sold properties over HK$7,500m since January this year Mostly from YOHO Midtown with over 1,200 units sold since its launch in February 201
Slide 13: Property Sales - Hong Kong
Property Sales - Hong Kong Continue to strengthen market position and enhance quality which enables premium pricing Key projects to be launched in the near term Larvotto in Island South Valais in Sheung Shui Lime Stardom in Kowloon 13 Sun Hung Kai Properties Limited
Slide 14: Property Investment – Hong Kong
Property Investment – Hong Kong Maintain high overall Gross Rental Income for 1H FY2010* (HK$5,360m) occupancy at 93% Residential 7% Retail sector Pick-up in tenants’ sales Malls in tourist areas Shopping continue to benefit from Centre 54% Office 32% mainland tourists’ spending Office sec
Slide 15: Property Investment – Hong Kong
Property Investment – Hong Kong ICC About 90% has been leased or pre-leased Phase 2 of ICC was completed in 2009 The entire building is scheduled for completion this year An observation deck on the 100th floor of ICC will be opened in 4Q2010 Develop about 4.8m sq ft of new rental propert
Slide 16: Business Review: Mainland & Singapore
Business Review Mainland & Singapore 16 Sun Hung Kai Properties Limited
Slide 17: Land Bank – Mainland
Land Bank – Mainland Attributable GFA (m sq ft) Properties under development 85.0 Completed investment properties 3.3 88.3 Majority under development Residential projects account for over 75% of properties under development Expect gradual growth in completion in the next few years 17 Sun Hung
Slide 18: Major Land Acquisitions - Mainland
Major Land Acquisitions - Mainland Group’s Site City Interest Usage Attributable GFA (%) (sq ft) Chan Cheng Foshan 100 R/S/O 29,720,000 Project Linhe Project Guangzhou 70 R 1,394,000 Total 31,114,000 Key : R=Residential, S=Shopping Centre/Retail, O=Office 18 Sun Hung Kai Properties Limited
Slide 19: Project Completions - Mainland
Project Completions - Mainland Group’s Project City Interest Usage Attributable GFA (%) (sq ft) Shanghai IFC Shanghai 100 O 887,000 Tower 1 Taihu International Wuxi 40 R 362,000 Community Total 1,249,000 Key : R=Residential, O=Office 19 Sun Hung Kai Properties Limited
Slide 20: Property Sales - Mainland
Property Sales - Mainland The Lake Dragon in Guangzhou has been popular since its first launch in April 2009 About 240 houses have been sold at market- premium prices Pre-sale of Jovo Town in Chengdu was also satisfactory Development progress Smooth progress for the luxury Weifong project
Slide 21: Property Investment - Mainland
Property Investment - Mainland Smooth development of Shanghai IFC Tower 1 was completed and is almost fully occupied Pre-leasing of Tower 2 is also progressing well Soft opening of shopping mall expected in 2Q2010 Majority of the mall has been already let Entire project completion by 1H2
Slide 22: Opening of ION Orchard in Singapore
Opening of ION Orchard in Singapore Officially opened in October 2009 900,000 sq ft GFA world-class shopping mall on Orchard Road shopping belt Occupancy is high at 97% Diversified trade mix with leading international outlets and brands Very popular with locals and tourists Orchard Resid
Slide 23: Prospects
Prospects 23 Sun Hung Kai Properties Limited
Slide 24: Prospects – Hong Kong
Prospects – Hong Kong Hong Kong economy to benefit from continuous growth on the Mainland Fundamentals for Hong Kong residential market remain favourable Continue launching projects for sale Actively pursue land acquisition opportunities, particularly through farmland conversion Strong bra
Slide 25: Prospects – Hong Kong
Prospects – Hong Kong Steady growth of rental income from balanced investment properties portfolio Retail portfolio to benefit from improved job conditions Expect demand for office space to show gradual improvement amid mild global recovery Rental portfolio will be expanded by 18% (additiona
Slide 26: Prospects – Mainland
Prospects – Mainland Long-term prospects promising despite short-term market volatility Maintain selective and focused approach to investments Aim to achieve balanced investment between residential and commercial properties Earnings from the mainland business are expected to rise over time
Slide 27: Q & A session
Sun Hung Kai Properties Limited Q & A session 27 Sun Hung Kai Properties Limited
Sun Hung Kai Properties — H1 FY2010 Earnings Presentation on 6ix