Metro Holdings Ltd · SGX:M01
Metro — FY2020 Earnings Presentation
59 slides from Metro's earnings presentation, Jun 25, 2020
Slide 1: Metro Holdings Limited FY2020 Results Presentation
METRO HOLDINGS LIMITED FY2020 RESULTS PRESENTATION 25 JUNE 2020
Slide 2: Contents
CONTENTS ● About Metro ● Property Investment & Development ● Investment Properties ● Trading Properties ● Investments In FY2020 ● Retail Operations ● Financial Highlights ● Growth Strategies ● Market Outlook 2
Slide 3: About Metro
About Metro
Slide 4: Who We Are
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 retail
Slide 5: Our International Presence
Our International Presence China Shanghai Metro City Metro Tower United Kingdom Bay Valley London Shanghai Shama Century Park 5 Chancery Lane Shanghai Plaza Manchester Guangzhou Middlewood Locks GIE Tower Milliners Wharf The Hat Box Chengdu Sheffield The Atrium Mall Sheffield Digital Campus Singapor
Slide 6: Property Investment & Development
Property Investment & Development
Slide 7: Investment Properties
Investment Properties GIE Tower, 5 Chancery 7&9 Tampines Metro City, Metro Tower, Guangzhou, Lane, London, Grande, Shanghai, China Shanghai, China UK China Singapore Type of Commercial Retail Commercial Commercial Commercial Development Lifestyle Grade-A office Office building Two blocks of Part of
Slide 8: Investment Properties
Investment Properties Tenant Mix by Total Leased Area: (as at 31 March 2020) GIE Tower, Guangzhou, Metro City, Metro Tower, China Shanghai, China Shanghai, China FY2020 93.8% 94.8% 94.3% Occupancy Rate FY2019 94.2% 99.7% 98.3% 1HFY2021 20.9% 18.4% 5.6% Expiry Profile 2HFY2021 10.3% 14.3% 3.0% GIE To
Slide 9: Investment Properties
Investment Properties Tenant Mix by Total Leased Area: (as at 31 March 2020) 5 Chancery Lane, 7&9 Tampines London, UK Grande, Singapore FY2020 100.0% 88.6% Occupancy Rate FY2019 100.0% 90.6%(1) 1HFY2021 0.0% 15.7% Expiry Profile 2HFY2021 0.0% 29.1% 5 Chancery Lane, London 7&9 Tampines Grande, Singap
Slide 10: Investment Properties
Investment Properties Bay Valley, Shanghai Plaza, Shanghai, China Shanghai, China Type of Commercial Mixed-use Development Office buildings (C7 and 48% Retail mall, centrally located Key Project of A4) located in New at Huai Hai Zhong Road, Description Jiangwan City, Yangpu District Huang Pu distric
Slide 11: Investment Properties
Investment Properties Office building at 100 Edward Street, Brisbane The Atrium Mall, Portfolio of 14 Office & Retail Chengdu, China Properties, Australia(1) Type of Retail Commercial & Retail Development Portfolio of 14 quality freehold properties comprising 4 office LEED® Gold certified buildings
Slide 12: Trading Properties
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 % owned by 40% 90% 90% Group 5,622 units with total GFA(1) of 2 residential towers comprising
Slide 13: Trading Properties
Trading Properties Shanghai Shama Century Bay Valley, Park, Shanghai, China Shanghai, China Type of Residential Commercial Development % owned by 30% 30% Group 284 units with total GFA(1) of Office buildings (C4 and 52% Key Project 49,357 sqm and 240 car park of A4) with total GFA(1) of Description
Slide 14: Trading Properties
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 % owned by Group 25% 25% 50% Phase 1 sold 2,215 units and commercial Key Project (144 apartments); space includ
Slide 15: Investments In FY2020
Investments In FY2020
Slide 16: 7 & 9 Tampines Grande, Singapore
7 & 9 Tampines Grande, Singapore Two blocks of premium Grade-A eight- storey office towers with retail and F&B Description on the ground floor, BCA Green Mark Platinum and LEED® Gold Certified % owned by Group 50% Site Area (sqm) 8,000 Total GFA (sqm) 33,599 Land Tenure 99 years from 2007 (86 years
Slide 17: The Atrium Mall, Chengdu, China
The Atrium Mall, Chengdu, China LEED® Gold certified commercial mall, Description which is part of a landmark mixed-use development % owned by Group 25% Site Area (sqm) 123,170 Total GFA (sqm) 45,352 NLA (sqm) 26,078 with 387 carpark lots Total Consideration RMB800 million(1) (100%) Acquisition Date
Slide 18: Portfolio of 14 Office & Retail Properties, Australia
Portfolio of 14 Office & Retail Properties, Australia Office building at 100 Edward Street, Brisbane Portfolio of 14 quality freehold properties(1) comprising 4 office buildings and 10 retail centres that span Description across 4 key states in Australia, namely New South Wales, Victoria, Queensland
Slide 19: Retail Operations
Retail Operations
Slide 20: Retail Operations
Retail Operations • Retail division continues to operate amidst difficult trading conditions; • Metro Centrepoint ceased operations in October 2019 upon lease expiry; • In December 2019, Metro divested its Indonesian retail business to our existing partner for a profit whilst retaining a licensing f
Slide 21: Financial Highlights
Financial Highlights
Slide 22: FY2020 Key Financial Highlights
FY2020 Key Financial Highlights Group Revenue for FY2020 increased to S$210.3 million from S$172.0 million in FY2019 − Property division recognised higher revenue of S$95.2 million in FY2020 as compared to S$34.5 million in FY2019 from the sale of property rights of the residential development prope
Slide 23: FY2020 Key Financial Highlights
FY2020 Key Financial Highlights Retail division – Registered Net Gain before Tax of S$9.8 million, up from Net Loss before Tax of S$6.4 million in FY2019 − Divestment gain of S$10.6 million from the disposal of the Group’s 50% equity interest in its associate in Indonesia; and − Excluding the divest
Slide 24: Key Financial Highlights – 2HFY2020
Key Financial Highlights – 2HFY2020 Revenue PBT S$81.5 million S$14.0 million 14.6% YoY 80.3% YoY 2HFY2019 2HFY2019 S$95.5 million S$71.1 million Remarks: (1) Revenue from the sale of property rights of the residential development properties in Bekasi and Bintaro, Jakarta, improved by S$11.0 million
Slide 25: Key Financial Highlights – FY2020
Key Financial Highlights – FY2020 Revenue PBT Basic EPS S$210.3 million S$39.7 million 3.9 cents 22.3% YoY 63.2% YoY 66.4% YoY FY2019 FY2019 FY2019 S$172.0 million S$108.0 million 11.6 cents NAV Per Return on Return on Share Total Assets(1) Equity(1) S$1.81 1.6 % 2.1% 0.5% YoY 70.4% YoY 67.7% YoY FY
Slide 26: Key Financial Highlights – FY2020 Proposed Dividend
Key Financial Highlights – FY2020 Proposed Dividend(1) S$16.6 million Comprises: • Ordinary Dividend 55.6% YoY - 2.0 cents FY2019 S$37.3 million Dividend Cover 1.95x 24.4% YoY FY2019 2.58x Remarks: (1) FY2020’s proposed dividend subject to shareholders’ approval at the AGM 26
Slide 27: Consolidated Income Statement
Consolidated Income Statement 2nd Half Year Ended Full Year Ended (S$ ‘000) 31-Mar-20 31-Mar-19 Change 31-Mar-20 31-Mar-19 Change Revenue 81,533 95,467 (14.6%) 210,254 171,964 22.3% Profit Before Tax 14,030 71,061 (80.3%) 39,731 108,033 (63.2%) Comprising: Metro City, Metro Tower, GIE Tower, 5 Chanc
Slide 28: Balance Sheet Highlights
Balance Sheet Highlights As at (S$ million) Change 31-Mar-20 31-Mar-19 Investment Property 109.0 112.0 (2.7%) Associates 795.6 758.1 4.9% Joint Ventures 337.3 232.8 44.9% Other Non-current Assets 165.0 103.3 59.7% Current Assets 829.4 693.5 19.6% Total Assets 2,236.3 1,899.7 17.7% Current Liabilitie
Slide 29: Dividend Payout
Dividend Payout Cents per Share Payout Ratio 8 100% 75% 6 5 51.3% 51.4% 4 4 4 38.7% 50% 51.2% 3 3 46.5% 2.5 34.8% 2 25% 26.0% 2 2 2 2 2 2 2 0% 0 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020* Payout rate Special Ordinary * FY2020’s proposed dividend subject to shareholders’ approval at the AGM 29
Slide 30: Growth Strategies
Growth Strategies
Slide 31: Growth Strategies (Property)
Growth Strategies (Property) 1 Continue to grow presence in Singapore, China, Indonesia, the United Kingdom and Australia 2 Explore regional countries for diversification 3 Balanced portfolio of investment and development assets China • Commercial assets with retrofitting upside potential Singapore
Slide 32: Growth Strategies (Property)
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 facili
Slide 33: Growth Strategies (Retail)
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 33
Slide 34: Thank You
Thank You
Slide 35: Outlook
Market Outlook
Slide 36: Market Outlook: Singapore, Office
Market Outlook: Singapore, Office Market effects from the COVID-19 pandemic to be more apparent in 2Q2020 Colliers, Singapore Office 1Q2020 • According to Colliers, the impact of COVID-19 on rents was not apparent in 1Q2020. Growth of CBD Grade A rents remained flat QoQ at SGD10.09 per sq foot, whil
Slide 37: Market Outlook: Singapore, Residential
Market Outlook: Singapore, Residential The impact of Covid-19 intensified in March Savills, Singapore Residential Sales – May 2020 • Developers launched a total of 2,093 uncompleted private residential units for sale in the first quarter of 2020 • A total of 10 non-landed private residential project
Slide 38: Market Outlook: Singapore, Retail
Market Outlook: Singapore, Retail COVID-19 severely disrupted the global economy • The Singapore economy contracted by 0.7% on a YoY basis in the first quarter, a reversal from the 1.0% growth in the previous quarter. GDP growth forecast for 2020 is downgraded to -7.0% to -4.0%(1) • Singapore’s reta
Slide 39: Market Outlook: China, Office
Market Outlook: China, Office COVID-19 pandemic weighs on leasing and investment demand, but the market shows signs of recovery CBRE, China 1Q2020 • The spread of COVID-19 exerted a severe impact on nationwide economic and business activity in 1Q2020 as the government applied travel and transportati
Slide 40: Market Outlook: Shanghai, Office
Market Outlook: Shanghai, Office Online sectors to lead demand recovery Colliers, Shanghai Office 1Q2020 • In 1Q2020, the COVID-19 epidemic caused a low net take-up. However, benefiting from legions of people staying at home, online sectors, including education and entertainment businesses are growi
Slide 41: Market Outlook: Shanghai, Retail
Market Outlook: Shanghai, Retail On the road to recovery Shanghai Citywide Vacancy Rates Savills, Shanghai Retail – April 2020 • Retail sales fell 20.3% YoY in the first two months of 2020 on the back of the city lockdown and temporary store closures in response to COVID-19 • No new projects launche
Slide 42: Market Outlook: Chengdu, Office
Market Outlook: Chengdu, Office Office transactions decrease Chengdu Grade A Office Supply, Savills, Chengdu Office – April 2020 Take-Up And Vacancy Rate • Chengdu’s GDP reached RMB1.7 trillion in 2019, an increase of 7.8% YoY. The citywide total investment in fixed assets expanded by 10.0% YoY • Du
Slide 43: Market Outlook: Chengdu, Retail
Market Outlook: Chengdu, Retail Retail market demand weakens Savills, Chengdu Retail – April 2020 • Retail sales of consumer goods in Chengdu reached RMB105.77 billion from January 2020 to February 2020, down 16.9% YoY • One new shopping mall, Chengdu Hongtang, located in the Dayuan submarket, enter
Slide 44: Market Outlook: Guangzhou, Office
Market Outlook: Guangzhou, Office Leasing market slows down Guangzhou Grade A Office Supply, Savills, Guangzhou April 2020 Net Take-Up And Vacancy Rate • Due to the strict COVID-19 epidemic prevention and control measures imposed by the central and local governments, landlords of new projects had to
Slide 45: Market Outlook: Indonesia, Residential
Market Outlook: Indonesia, Residential Smaller, cheaper units remain the most desirable unit types JLL, Jakarta Property Market Review 4Q2019 • 2019 was another year of relatively slow sales although there were several bright spots. Developers attempted to make unit prices more affordable by compres
Slide 46: Market Outlook: Indonesia, Retail
Market Outlook: Indonesia, Retail COVID-19 disrupts operations JLL, The Retail Index: 1Q2020 • COVID-19 related issues appeared to take hold in Indonesia later than in other markets, nonetheless, footfall in several malls noticeably weakened during the quarter; even before many of Jakarta’s shopping
Slide 47: Market Outlook: UK, Office
Market Outlook: UK, Office UK Offices: Adapting to a new normal UK Cities Office Take-up Knight Frank, COVID-19 Commercial Research - May 2020 • In the major UK cities outside of London, office take-up in the first quarter was 10% below the long-term average at 1.5 million sqft • Encouragingly, the
Slide 48: Market Outlook: UK, Residential
Market Outlook: UK, Residential JLL forecasts UK house prices to fall by 8% in 2020 JLL, Residential Market Forecasts May 2020 • The housing market has re-opened for business and there may be a small bounce in sales due to pent- up demand. But there remains continued uncertainty as well and this is
Slide 49: Market Outlook: Central London, Office
Market Outlook: Central London, Office London: Activity starting to slow Knight Frank, COVID-19 Commercial Research - May 2020 • The depth of market activity sustained throughout 2019 persisted well into 1Q2020, however the unravelling of global growth due to COVID-19 began to erode market sentiment
Slide 50: Market Outlook: Sheffield, Office
Market Outlook: Sheffield, Office Occupier Headlines Knight Frank, Sheffield Office Market 2019 Review • Despite political headwinds, office take-up in 2019 was almost twice the 5 year average. The market for 2020 is looking equally promising. • The biggest challenge will be placement of demand. Gra
Slide 51: Market Outlook: Manchester, Office
Market Outlook: Manchester, Office Occupier Headlines JLL, Living with 2020 Vision, March 2020 • The appeal of living in Manchester’s city centre continues to increase strongly as the local economy and population grows • This has led to an exciting pipeline of residential development both for sale a
Slide 52: Market Outlook: Sydney, Office
Market Outlook: Sydney, Office Growing tech sector drives new demand Knight Frank, Sydney CBD Office Market Overview March 2020 • Coming into 2020, investment volumes in Sydney have been at record highs, reflecting the strength and breadth of investor appetite. This led to further yield compression
Slide 53: Market Outlook: Sydney, Retail
Market Outlook: Sydney, Retail Considerable uncertainty towards the outlook for Average Gross Rents by Sub-sector income and vacancy JLL, Australia National Retail Market Overview 1Q20 • Enclosed centres has been recording mild rental declines prior to COVID-19. This was reflected by A-REITs, with m
Slide 54: Market Outlook: Melbourne, Office
Market Outlook: Melbourne, Office Melbourne CBD now the tightest office market nationally Knight Frank, Melbourne CBD Office Market Overview March 2020 • The Melbourne CBD office market has virtually run out of office space. In the second half of 2019 calendar year vacancy declined again to now reac
Slide 55: Market Outlook: Melbourne, Retail
Market Outlook: Melbourne, Retail Considerable uncertainty towards the outlook for Average Gross Rents by Sub-sector income and vacancy JLL, Australia National Retail Market Overview 1Q20 • Enclosed centre gross rents declined in 1Q20, reflective of challenging leasing conditions prior to the crisis
Slide 56: Market Outlook: Queensland, Office
Market Outlook: Queensland, Office National CBD market office vacancy remained relatively stable at 8.4% with limited supply-side activity JLL, Australia National Office Market Overview 1Q20 • The Brisbane CBD continued to recover and gain positive momentum. Gross take up from major occupier moves t
Slide 57: Market Outlook: Queensland, Retail
Market Outlook: Queensland, Retail Considerable uncertainty towards the outlook for Average Gross Rents by Sub-sector income and vacancy JLL, Australia National Retail Market Overview 1Q20 • While Queensland’s retail turnover growth is strong, consumer sentiment remains subdued nationally • Rents co
Slide 58: Market Outlook: Western Australia, Office
Market Outlook: Western Australia, Office National CBD market office vacancy remained Perth CBD Gross Office Rents relatively stable at 8.4% with limited supply-side activity JLL, Australia National Office Market Overview 1Q20 • The supply pipeline for the Perth CBD is minimal. No new supply has bee
Slide 59: Market Outlook: Western Australia, Retail
Market Outlook: Western Australia, Retail Considerable uncertainty towards the outlook for Average Gross Rents by Sub-sector income and vacancy JLL, Australia National Retail Market Overview 1Q20 • Retail leasing demand is expected to remain slow given the impacts of COVID-19, which include social d