Kerry Properties Limited · HKEX:683
Kerry Properties — H1 2020 Earnings Presentation
35 slides from Kerry Properties's earnings presentation, 2020
Slide 1: Kerry Properties Limited 2020 Interim Results Presentation
1 a i AOR A al KERRY PROPERTIES LIMITED 2020 INTERIM RESULTS PRESENTATION (Incorporated in Bermuda with limited liability)
Slide 2: 1H 2020 RESULTS HIGHLIGHTS DEVELOPMENT PROPERTIES INVESTMENT PROPERTIES
2 2 1 1H 2020 RESULTS HIGHLIGHTS 2 DEVELOPMENT PROPERTIES 3 INVESTMENT PROPERTIES 4 FINANCIAL POSITION 5 APPENDIX KERRY PROPERTIES LIMITED • INTERIM RESULTS 2020
Slide 3: 1H 2020 Results Highlights
3 3 1 1H 2020 RESULTS HIGHLIGHTS KERRY PROPERTIES LIMITED • INTERIM RESULTS 2020
Slide 4: 1H 2020 Results Highlights
1H 2020 RESULTS HIGHLIGHTS 4 Contracted Sales Total Revenue The outbreak of the COVID-19 pandemic at the start of 2020 has Achieved 58% of full year sales target of $8B $3.9B brought significant disruption to -65% YoY business activity • Reached $4.7B of contracted sales ( HK: $3.1B ; Mainland: $1.6
Slide 5: Financial Summary
FINANCIAL SUMMARY 5 HK$ million Note 1H 2020 1H 2019 Change Revenue 3,918 11,225 -65% Gross profit N1 2,395 5,203 -54% Share of results of associates and joint ventures 559 616 -9% Underlying profit 1,106 3,143 -65% Net (decrease)/increase in fair value in investment properties (32) 452 -107% Report
Slide 6: Operating Segments
OPERATING SEGMENTS 6 HK$ million Revenue Gross Profit Gross Margin * Recurrent revenue Note 1H 2020 1H 2019 Change 1H 2020 1H 2019 Change 1H 2020 1H 2019 Property sales 1,259 7,832 -84% 513 2,926 -82% 41% 37% HK N1 883 2,717 -68% 327 1,281 -74% 37% 47% Mainland N2 376 5,115 -93% 186 1,645 -89% 49% 3
Slide 7: Development Properties
7 7 2 DEVELOPMENT PROPERTIES KERRY PROPERTIES LIMITED • INTERIM RESULTS 2020
Slide 8: Development Properties Overview
DEVELOPMENT PROPERTIES OVERVIEW 8 Contracted Sales 1H 2020 1H 2019 HK$ HK Mainland HK Contracted Sales $3.1B $5.2B 6.5B Saleable Area Sold Approx. 162,000 s.f Approx. 159,000 s.f 1.3B Recognized Sales $0.9B $2.7B Subsidiaries 4.7B -28% Mont Rouge ( first Mantin Heights and The launched in Apr-2019 )
Slide 9: Development Properties – Mont Rouge
DEVELOPMENT PROPERTIES – MONT ROUGE 9 As of July 2020, 5 units or 17,700 s.f were sold during May – July 2020 with a total proceeds of $1.1B Villa 2 Villa 3 Tower 2, Apartment 6/F Sold: May 2020 Sold: May 2020 Sold: July 2020 GFA: 5,148 s.f GFA: 5,128 s.f GFA: 1,760 s.f ASP: $71,900 psf ASP: $68,300
Slide 10: Development Properties – HK Upcoming Launches
DEVELOPMENT PROPERTIES – HK UPCOMING LAUNCHES 10 3 Lung Kui Road Wong Chuk Hang Station Package Two Mont Rouge 3 Lung Kui Road P6 P3 P5 P2 P1 P4 Project Particulars Project Particulars Package Two Buildable GFA (s.f) 343,000 Buildable GFA (s.f) 493,000 Total units 64 Total units 600 KPL’s interest 1
Slide 11: Development Properties – 2020 Mainland Pipeline
DEVELOPMENT PROPERTIES – 2020 MAINLAND PIPELINE 11 Fuzhou Rivercity Qianhai Kerry Centre Shenyang Ph 3 Zhengzhou • 222,000 s.m (639 units) • 43,000 s.m (451 units) • 200,000 s.m (1,030 • 94,000 s.m (515 units) saleable residential of saleable serviced units) of saleable of saleable residential and o
Slide 12: Investment Properties
12 12 3 INVESTMENT PROPERTIES KERRY PROPERTIES LIMITED • INTERIM RESULTS 2020
Slide 13: Investment Properties – Overview
INVESTMENT PROPERTIES – OVERVIEW 13 Total Property Rental Revenue Mainland Eight Mixed-Use Properties in Major Cities (includes attributable rental income from associates) HK$ million HK Mainland Shanghai Beijing Shenzhen Pudong 1998 2008 2011 2,648M 2,521M -5% Shanghai Tianjin Hangzhou JingAn 2015
Slide 14: Investment Properties – Mainland Completed Properties
INVESTMENT PROPERTIES – MAINLAND COMPLETED PROPERTIES 14 • GFA(100%)* 1.5M s.f Mainland Property Rental Beijing • Occupancy (@ 30 Jun 2020) * 91% • Yield on Cost * 21% Gross rental revenue: HK$1.8B Kerry Centre • Completion 1998 (includes attributable rental income from associates) • KPL’s interest
Slide 15: Investment Properties – Qianhai Kerry Centre Ph 1-3
INVESTMENT PROPERTIES – QIANHAI KERRY CENTRE PH 1 - 3 15 Completion in 2H 2020 Site #3 T2 Office T1 Office T8 Office T6 Apartment Hotel T5 Apartment T9 T3 Apartment Project Summary Site #1 Site #2 Site#3 T7 Office (Bank of East Asia) Land acquisition Jan-2015 Dec-2016 Dec-2018 No. of Towers 5 (T1 T2
Slide 16: Investment Properties – Qianhai Kerry Centre Ph 1
INVESTMENT PROPERTIES – QIANHAI KERRY CENTRE PH 1 16 In 2018, one apartment tower was launched for pre-sale to a strong response, and September 2019 saw the commencement of the leasing of office and retail spaces. The pre-sale of another apartment tower was launched in July 2020. T1 T2 T3 T5 T6 Qian
Slide 17: Investment Properties – HK
INVESTMENT PROPERTIES – HK 17 HK Property Rental ▪ Occupancy at 30 Jun 2020 : 99% Gross rental revenue: HK$718M Commercial ▪ Megabox’s average unit rent of $29 psf (includes attributable rental income from associates) 1.2M s.f Attributable GFA 4.2M s.f Occupancy @ 30 Jun 2020 ▪ Occupancy at 30 Jun 2
Slide 18: Financial Position
18 18 4 FINANCIAL POSITION KERRY PROPERTIES LIMITED • INTERIM RESULTS 2020
Slide 19: Financial Position
FINANCIAL POSITION 19 As at 30 As at 31 Debt Maturity Profile HK$ million Jun 2020 Dec 2019 Change Total Debt : $42,544M HK$ million Total Debt 42,544 39,541 +8% Cash and bank Fixed Rate Bonds 11,107 12,255 -9% balance Bank Loans Net Debt 31,437 27,286 +15% Undrawn Bank Loan 14,672 12,590 +17% Facil
Slide 20: Appendix
20 20 5 APPENDIX A. 1H 2020 Contracted Sales - HK B. 1H 2020 Contracted Sales - Mainland C. Major Properties Under Development - HK D. Major Properties Under Development - Mainland E. Mainland Major Completed Mixed-Use Properties F. Land Bank – Overview / HK / Mainland KERRY PROPERTIES LIMITED • INT
Slide 21: A. 1H 2020 Contracted Sales – HK
A. 1H 2020 CONTRACTED SALES – HK 21 Projects on sale KPL’s Total Units Accumulative Inventory ASP achieved Sales interest project sold in units sold as at as at 30 Jun in 1H 2020 proceeds in (%) units 1H 2020 30 Jun 2020 2020 (units) HK$ psf 1H 2020^ HK$ bn MAJOR PROJECTS Apt: 18,500 1 The Bloomsway
Slide 22: B. 1H 2020 Contracted Sales – Mainland
B. 1H 2020 CONTRACTED SALES – MAINLAND 22 Major projects on sale Product Contracted GFA Sold ASP KPL’s (100% subsidiaries + KPL’s interest type sales ^ s.m achieved interest for associates) RMB’M in 1H 2020 RMB psm 1 Shenyang Arcadia Height 瀋陽雅頌大苑二期 R 587 16,800 33,100 60% 2 Fuzhou Rivercity * 福州榕城江
Slide 23: C. Major Properties Under Development – HK
C. MAJOR PROPERTIES UNDER DEVELOPMENT – HK 23 Name Location Type Stage of Completion Expected KPL’s Buildable Completion Interest GFA* (%) (s.f.) 1 Beacon Hill Project Beacon Hill R Superstructure work 2021 100 342,769 in progress 2 Wong Chuk Hang Station Wong Chuk R Schematic design in 2025 50 319,
Slide 24: D. Major Properties Under Development – Mainland
D. MAJOR PROPERTIES UNDER DEVELOPMENT – MAINLAND 24 Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) MAJOR MIXED-USE DEVELOPMENT 1 Shenyang Kerry Centre Shenyang R Interior decoration work in progress 2H 2020 60 233,462 Phase II (Arcadia Hei
Slide 25: D. Major Properties Under Development – Mainland (Con't)
D. MAJOR PROPERTIES UNDER DEVELOPMENT – MAINLAND (CON’T)25 Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) OTHER INVESTMENT PROPERTIES (CON’T) 8 Kunming Complex Kunming R/H Basement structural work in 2022 55 382,925 Development progress 9
Slide 26: E. Mainland Major Completed Mixed-Use Properties
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES 26 30 Jun 2020 GFA & Occupancy Attri GFA Beijing Shanghai Shenzhen Hangzhou Others Total Occupancy (000s s.f.) Office 711 1,388 1,552 102 549 4,302 87% Commercial 98 1,096 104 798 955 3,051 89% Apartment 277 774 - - - 1,051 79% Total 1,086 3,258 1,656
Slide 27: E. Mainland Major Completed Mixed-Use Properties (Con't)
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 27 Occupancy rates (by segment) As at 30 Jun 2020 As at 31 Dec 2019 Serviced Apartment 92% 92% Office 93% 98% 1 Beijing Kerry Centre Commercial 74% 94% Average 91% 96% Serviced Apartment 93% 94% Office 90% 97% 2 Jing An Kerry Centre Commercial
Slide 28: E. Mainland Major Completed Mixed-Use Properties
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES 28 Jing An Kerry Centre, Shanghai Puxi GFA ( million s.f.) 3.7M s.f Commercial 1.0 • Located in the heart of Shanghai’s Nanjing Road business Office 1.7 district Apartment 0.2 • A pre-eminent shopping venue and exclusive office Hotel 0.8 address in Sh
Slide 29: E. Mainland Major Completed Mixed-Use Properties (Con't)
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 29 Beijing Kerry Centre 2.2M s.f GFA ( million s.f.) Commercial 0.1 • Continues to be an iconic presence at the heart of Beijing Office 1.0 • Located in the Chaoyang district, the city's commercial Apartment 0.4 and financial center and within
Slide 30: E. Mainland Major Completed Mixed-Use Properties (Con't)
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 30 Tianjin Kerry Centre Ph 1 1.7M s.f GFA ( million s.f.) Commercial 0.9 • Mixed-use development located on the east bank of the Hotel 0.8 Haihe CBD in Hedong District Total 1.7 • Phase I of the development includes a hotel, upscale residences
Slide 31: E. Mainland Major Completed Mixed-Use Properties (Con't)
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 31 Shenyang Kerry Centre Ph 1 & 2 2.1M s.f GFA ( million s.f.) Commercial 0.8 • Mixed-use development located at the east side of Office 0.6 Qingnian Street Hotel 0.7 • Include a hotel, offices, a shopping mall and residences Total 2.1 • Phase
Slide 32: F. Land Bank – Overview
F. LAND BANK – OVERVIEW 32 Total Property Portfolio Attributable GFA: Approx. 47.8M s.f. (as of 30 Jun 2020) Held for sale 4% Hotel Macau 10% 4% PUD 56% Overall – Overseas 9% Overall – Mainland 75% By Type By Location HK 12% Completed IP 30% Commercial 14% Hotel 4% Macau 7% Overseas 8% PUD – Office
Slide 33: F. Land Bank – HK
F. LAND BANK – HK 33 HK Land bank Attributable GFA (‘000 s.f) Hotel 1% Apartment 16% Completed Investment Properties 4,191 Warehouse 23% Warehouse 1,266 Office 5.5M s.f in Commercial 1,220 15% attributable Office 834 GFA Apartment 871 Commercial 22% Properties under development & 953 others Resident
Slide 34: F. Land Bank – Mainland
F. LAND BANK – MAINLAND 34 Mainland Land bank Attributable GFA (‘000 s.f) Hotel 14% Commercial 18% Completed Investment Properties 8,404 Commercial 3,051 35.9M s.f Residential Office 4,302 attributable 33% GFA Apartment 1,051 Office Properties under development 21,795 32% Apartment 3% Completed prop
Slide 35: Disclaimer
DISCLAIMER 35 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 informati