Slide 1: Kerry Properties Limited 2015 Annual Results Presentation
Kerry PRopertiés LIMITED oe HE Be A OB A a] 2015 Annual Results Presentation 18th March 2016
Slide 2: 1. Results Highlights 2. Hong Kong Portfolio 3. PRC Portfolio
1. Results Highlights 2. Hong Kong Portfolio 3. PRC Portfolio 4. Financial Position 5. Appendix 2
Slide 3: 1. Results Highlights
1. Results Highlights 3
Slide 4: Results Highlights
Results Highlights 1. Total contracted sales $12.6B (HK 7. Premium investment projects will $5.8B ; PRC $6.8B), exceeded target continue… of $12.0B 2016 – 2020 • Enterprise Centre, Shanghai 2. PRC contracted sales nearly doubled YoY • Hangzhou Kerry Central • Qianhai project , Shenzhen 3. PRC recurr
Slide 5: Results Highlights
Results Highlights HK$ million FY 2015 FY 2014 Change Turnover 10,393 14,664 -29% Gross profit 3,911 6,208 -37% Share of results of associates 2,018 1,303 +55% Underlying profit 3,481 4,384 -21% Net increase in fair value in investment properties 2,049 2,390 -14% Reported profit 5,530 6,774 -18% Ear
Slide 6: Results Highlights – continue to expand recurrent revenue, +21% YoY
Results Highlights – continue to expand recurrent revenue, +21% YoY HK$ million Turnover Gross Profit Gross Margin * Recurrent revenue FY 2015 FY 2014 Change FY 2015 FY 2014 Change FY 2015 FY 2014 Property sales 5,085 10,274 -51% 1,210 3,659 -67% 24% 36% HK N1 1,727 7,132 -76% 608 2,900 -79% 35% 41%
Slide 7: 2. Hong Kong Portfolio
2. Hong Kong Portfolio Kerry Properties Lien RRRRARAA
Slide 8: HK Property Sales Overview
HK Property Sales Overview FY 2015 Overview The Bloomsway High-rise Contracted Low-rise $5.8B Sales Villa Saleable Area Approx. 346,000 s.f Sold • The Bloomsway ($2.1B) Key Properties • Dragons Range ($2.0B*) Sold • 1 & 3 Ede Road ($1.0B) • 8 LaSalle ($0.3B) Subsidiaries: • 1 & 3 Ede Road ($1.
Slide 9: HK Property Sales – Resilient Portfolio
HK Property Sales – Resilient Portfolio Solid Sales Performance Since Launch The Bloomsway, So Kwun Wat, Tuen Mun 1 & 3 Ede Road, Kowloon Tong KPL’s interest: 100% KPL’s interest: 100% Sold 389 units Sold 38 units Total units: 1,057 Total units: 41 1st launch: Nov-2015 Sales Proceeds $2.3B 1st launc
Slide 10: Launching soon!
Launching soon! Mantin Heights, No. 28 Sheung Shing Street, Ho Man Tin Project Summary KPL’s interest: 100% • Located in the traditional luxury residential area and the core of Kowloon GFA: 1.1 million s.f • Largest residential property in Ho Man Tin 1,429 units, Total units: • Offering a variety of
Slide 11: HK Investment Properties – Steady cash flow
HK Investment Properties – Steady cash flow Gross rental revenue: Asset enhancement to drive rental growth $995M (includes attributable rental income from major property from associate) Apartment Office Commercial Prop mgmt, carparks and others HK$ million 995M 965M Branksome Grande, No. 3 Tregunter
Slide 12: Branksome Grande's renovation works Apr-2014 ~ Aug-2015
Branksome Grande’s renovation works Apr-2014 ~ Aug-2015 12
Slide 13: 3. PRC Portfolio
3. PRC Portfolio 13 £ Kerry Properties Lien RRRRARAA
Slide 14: PRC Major Completed Investment Properties Performance
PRC Major Completed Investment Properties Performance Flagships in first-tier cities Gross rental revenue: $3.1B (includes attributable rental income from associates) Yield on cost in high-teens to 20s HK$ million Occupancy stabilizing above 95% for commercial & office Prop mgmt, carparks and
Slide 15: Next in the pipeline - Kerry Central, Hangzhou
Next in the pipeline - Kerry Central, Hangzhou Prime location in the heart of the city’s traditional CBD in Xiacheng District Offices at Kerry Central Project Summary Up to Feb-2016: Total gross Total: 340,000 s.m • Commitment rate: Retail area 74% ; Office area 68% development area (including basem
Slide 16: Kerry Central, Hangzhou – overview of the complex
Kerry Central, Hangzhou – overview of the complex 6-level mall (93,000 s.m) on Yan‘an Road 延安路, major shopping street Grade-A Office on Qingchun Road 庆春路, “Wall Street”of the city Premium apartments with West Lake view <Soft opened 12 Mar 2016> Midtown Shangri-La Hotel (417 rooms) HANGZHOU PURCHASIN
Slide 17: Qianhai project – major mixed-use in 1st tier city
Qianhai project – major mixed-use in 1st tier city Qianhai project’s ground breaking ceremony on 17 Sep 2015 Project Summary Total gross development area Total: 202,000 s.m (s. m) Office: 120,000 s.m Residential: 60,000 s.m Commercial: 22,000 s.m Land cost Rmb 3.9 B Acquisition date Jan-2015 KPL’s I
Slide 18: PRC Property Sales – FY 2015 contracted sales +97% YoY
PRC Property Sales – FY 2015 contracted sales +97% YoY FY 2015 FY 2014 RMB 5.7B RMB 2.9B Contracted Sales (or $6.8B) (or $3.6B) GFA Sold 361,000 s.m 227,000 s.m • Recognized sales of subsidiaries were mainly contributed by: FY 2015 – Shenyang and Putian Arcadia Court and Avg. Selling Price RMB 15,60
Slide 19: 4. Financial Position
4. Financial Position 19 £ Kerry Properties RRRRARAA es LimiTeD
Slide 20: Financial Position
Financial Position As at 30 As at 31 RMB devaluation HK$ million Dec 2015 Dec 2014 Change • RMB devalued approx. 5.4% (comparing 12/2015 vs. Total Debt 37,046 34,239 +8% 12/2014) Cash and bank balance ^ 10,865 11,392 -5% • Resulted in non-cash exchange loss of approx. HK$2.6B, or 3% of NAV recognize
Slide 21: 5. Appendix
5. Appendix a. HK Property – FY 2015 Contracted Sales b. PRC Property – FY 2015 Contracted Sales c. PRC Property – Completed Mix Use Property Portfolio d. HK Properties Under Development e. PRC Major Properties Under Development f. Total Land Bank 21
Slide 22: a. HK Property – FY 2015 Contracted Sales
a. HK Property – FY 2015 Contracted Sales Projects on sale KPL’s Total Units Remaining ASP achieved Attri sales Completion interest project sold in stock* in FY 2015 proceeds* ^ (%) units FY 2015 (units) HK$ psf HK$ bn EXISTING PROJECTS 1 The Bloomsway 100% 1,100 354 746 11,000 2.1 Target in Q4 2016
Slide 23: b. PRC Property – FY 2015 Contracted Sales
b. PRC Property – FY 2015 Contracted Sales Name Product Attributable Attributable Avg. Selling KPL’s type Contracted GFA Sold Price achieved interest Sales s.m RMB psm RMB’M KEY PROJECTS SOLD 1 Hangzhou Castalia Court * 杭州云荷廷 R 1,082 48,200 22,000 100% 2 Putian Arcadia Court 莆田雅頌居 R 829 88,000 9,400
Slide 24: c. PRC Property – Completed Investment Property Portfolio
c. PRC Property – Completed Investment Property Portfolio FY2015 GFA & Occupancy Attri GFA (000s s.f.) Beijing Shanghai Shenzhen Tianjin Fuzhou Total Weighting % Office 711 1,503 1,552 --- --- 3,766 56% Commercial 98 1,099 212 428 64 1,901 28% Apartment 277 774 --- --- --- 1,051 16% Total 1,086 3,37
Slide 25: c. PRC Property – Completed Investment Property Portfolio (con't)
c. PRC Property – Completed Investment Property Portfolio (con’t) Beijing Kerry Centre, Total GFA 2.2M s.f. • Continues to be an iconic presence at the heart of Beijing • Located in the Chaoyang district, the city's commercial and financial center and within the 2nd ring road • Combines prime office
Slide 26: c. PRC Property – Completed Investment Property Portfolio (con't)
c. PRC Property – Completed Investment Property Portfolio (con’t) Shenzhen Kerry Plaza Total GFA 1.7M s.f. • 3 Grade-A office towers located at the core of Futian CBD • Conveniently connected to Futian railway station on the Guangzhou-Shenzhen-Hong Kong Express Rail Link now under construction Tianj
Slide 27: d. HK Major Properties Under Development
d. HK Major Properties Under Development Currently, KPL has approximately 2.7 M s.f of major properties under development in HK Name Location Type Stage of Completion Expected KPL’s Buildable Completion Interest GFA** (%) (s.f.) FOR SALE PROPERTIES 1 The Bloomsway So Kwun Wat R Superstructure work i
Slide 28: e. PRC Major Properties Under Development
e. PRC Major Properties Under Development Currently, KPL has approximately 28.8 M s.f of major properties under development in PRC Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) MIXED USED DEVELOPMENT 1 Nanchang Arcadia Court Towers 1, 3 N
Slide 29: e. PRC Major Properties Under Development (con't)
e. PRC Major Properties Under Development (con’t) Currently, KPL has approximately 28.8 M s.f of major properties under development in PRC Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) PRIMARILY FOR SALE PROPERTIES 9 Qinhuangdao Habitat Q
Slide 30: f. Total Land Bank - Overview
f. Total Land Bank - Overview Total Property Portfolio Attributable GFA: Approx. 54.4M s.f. (as of 31 Dec 2015) PUD 67% Held for Macau sale 6% 4% Overall – Overseas Overall – Hotel 6% 7% PRC By Type By Location 79% HK 10% Completed IP 21% Macau 7% Hotel 7% Overseas Apartment 6% PUD – 1% PRC PUD – Re
Slide 31: f. Total Land Bank - HK
f. Total Land Bank - HK Hotel HK Land bank Attributable 1% GFA Commercial (‘000 s.f) 24% Residential 45% Completed Investment Properties 2,785 5.2M s.f in Commercial 1,223 attributable Office 840 GFA Apartment 722 Office 16% Residential properties under development 2,336 Service apartment 14% Comple
Slide 32: f. Total Land Bank - PRC
f. Total Land Bank - PRC PRC Land bank Attributable Hotel GFA 12% (‘000 s.f) Commerical 14% Completed investment properties 6,718 43.0M s.f Commercial 1,901 attributable Residential GFA 50% Office 3,766 Office Apartment 1,051 20% Service Properties under development 29,672 apartment 4% Completed pro
Slide 33: Disclaimer
Disclaimer The information in this presentation is for personal, non-commercial reference and general information purposes only and should not be relied upon for investment decision purposes. The information in this presentation, including without limitation any stock price, market data information,