Prosperity Real Estate Investment Trust · HKEX:808
Prosperity Real Estate Investment Trust — H1 2010 Earnings Presentation
17 slides from Prosperity Real Estate Investment Trust's earnings presentation, Jun 30, 2010
Slide 1: Prosperity REIT 2010 Interim Results
Prosperity REIT 2010 Interim Results For the six months ended 30 June 2010
Slide 2: Contents
Contents Portfolio Map 3 Economic Outlook for Hong Kong 4-5 Results Highlights 6 Gearing Ratio 7 Condensed Consolidated Statements 8-9 P tf li Valuation Portfolio V l ti 10 Debt Management 11 Asset Enhancements 12 Property Management Awards 13 Annual Report Awards 14 Growth Strategies 15 Key Facts 1
Slide 3: Portfolio Map
Portfolio Map Source: Prosperity REIT Page 3
Slide 4: Economic Outlook for Hong Kong
Economic Outlook for Hong Kong GDP YoY growth (Quarterly) The Census and Statistics 15% Department expects the 10% GDP to grow by 5 to 6% 5% YoY in 2010. 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -5% 2005 2006 2007 2008 2009 2010 -10% Source: Census and Statistics Department CPI 8%
Slide 5: Employment Outlook for Hong Kong
Employment Outlook for Hong Kong Unemployment Rate 9% 8% The unemployment rate 7% 6% was floating within a narrow 5% range between 4.3% and 4% 3% 4.9% for the past 6 months 2% 1% 0% Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08
Slide 6: Results Highlights
Results Highlights Six months ended 30 Jun 10 (Unaudited) YoY Change Distribution Per Unit ((“DPU”)) HK$0.0555 0.2% Total Revenue HK$133.65 mil 1.8% Net Property Income HK$105.80 mil 2.1% Cost-to-revenue Cost to revenue Ratio 20 8% 20.8% -0 0.2ppt 2ppt Average Effective Unit Rent HK$14.72 psf -1.6%
Slide 7: Gearing Ratio
Gearing Ratio Gearing Ratio 31.7% Improved by 1.6 percentage points (Compared to 31 Dec 09) Gearing Gearing ratio (as at 30 Jun 10): 31.7% 39.0% 38.3% 37.0% 36.0% 35.0% 35.0% 33.5% 33.3% 33.0% Borrowings 31.7% N tA Net Assets t 31.0% 2005 2006 2007 2008 2009 1H10 ¾ Gearing improved to 31.7%, recordi
Slide 8: Condensed Consolidated Statement of Comprehensive Income
Condensed Consolidated Statement of Comprehensive Income 1H10 1H09 unaudited unaudited (HK$’000) (HK$’000) Revenue 133,651 131,230 Total property operating expenses (27 849) (27,849) (27 592) (27,592) Net property income 105,802 103,638 Interest income 10 89 g Manager’s fee ((13,872)) ((12,755)) Tru
Slide 9: Condensed Consolidated Statement of Financial Position
Condensed Consolidated Statement of Financial Position Assets & Liabilities Unaudited as at 30 Jun 10 (HK$’000) Investment p properties p 5,529,000 , , Property Bank balances and cash 52,882 HK$5,529 mil Valuation Other assets 8,566 Total Assets 5,590,448 Borrowings (1,767,971) Gearing Ratio1 31.7%
Slide 10: Portfolio Valuation
Portfolio Valuation Car As at Diff. with Valuation as at 30 Jun 10 GRA (sq.ft.) park 30 Jun 10 31 Dec 09 spaces (HK$ mil) + / (-) Grade A Office 1. The Metropolis Tower 271,418 98 2,055 +6.4% 2. Prosperity Millennia Plaza 217,955 43 1,182 +5.7% 3. Harbourfront Landmark 1 77,021 N/A 326 +2.5% Industr
Slide 11: Debt Management
Debt Management Total Debt 1 HK$1,770 mil Gearing 31.7% Weighted W i ht d Average A 2.96% Cash Finance Cost 2 Ò Term Loan due on 16 Dec 10 Ò Fully hedged at 2.96% with Plain Vanilla swaps Ò Free from financial engineering3 Refinancing Details Tenure 5 years4 Term Loan $1,770 million Revolving Credit
Slide 12: Asset Enhancements
Asset Enhancements The Metropolis Tower – Living Green Roof Before After After Breathtaking panoramic view from the Green Roof Page 12
Slide 13: Property Management Awards
Property Management Awards Prosperity P it Pl Place won th the Best B t Landscape L d Award A d for f Private P i t Development D l t 2010 Gold G ld Award. A d The competition is organized by the HK Government’s Leisure & Cultural Services Department Li i Rooftop Living R ft GGarden d REIT manag
Slide 14: Annual Report Awards
Annual Report Awards ¾More than 4,000 entries with submissions b i i from over 25 countries. Page 14
Slide 15: Growth Strategies
Growth Strategies Growth Focused Strategies Ò Organic Growth ; Proactive leasing efforts ; “Tip top” building management ; Close business relationships with tenants Ò Asset Enhancement Growth ; Aesthetic enhancements and upgrades ; Energy efficiency ; Prudent payback periods Ò Yield Accretive Acquis
Slide 16: Key Facts
Key Facts KEY FACTS As at 30 Jun 10 IPO 16 Dec 05 7.9% % at $ $1.40 as at 30 Jun 10 Indicative Yield (based on the annualized DPU of $0.0555 for 1H10) Total number of units 1 333 550 694 1,333,550,694 Market Capitalization HK$1.87 billion Average daily 1.5 million units ((1H10)) t di trading volume
Slide 17: Disclaimer
Disclaimer This document has been prepared by ARA Asset Management (Prosperity) Limited, in its capacity ARA Asset as the manager (“REIT Manager”) of Prosperity Real Estate Investment Trust (“Prosperity REIT”) Management solely for use at the presentation to analysts in relation to the announcement
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