Champion Real Estate Investment Trust · HKEX:2778
Champion Real Estate Investment Trust — FY2021 Earnings Presentation
19 slides from Champion Real Estate Investment Trust's earnings presentation, May 23, 2022
Slide 1: Champion REIT 2021 Annual Presentation
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Slide 2: Challenging Operating Environment to Continue under Prolonged Pandemic
Challenging Operating Environment to Continue under Prolonged Pandemic FY 21 Financial Highlights Total Rental Income Net Property Income • Market conditions for office and retail leasing remained difficult HK$mm HK$mm 2,495 2,197 • Negative rental reversion recorded across all properties driving do
Slide 3: Rental Income Breakdown
Rental Income Breakdown Rental Income by Property Rental Income by Income Type (HK$mm) (HK$mm) Three Garden Road Langham Place Office Base Rent Turnover Rent Langham Place Mall Carpark and Others Total: -5.2% FY 2020: HK$2,633mm 2,633 2,495 -9.1% 2,539 19 75 738 670 -3.4% 96% 1% 3% 378 365 FY 2021:
Slide 4: Three Garden Road
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Slide 5: Three Garden Road Office Occupancy Rebounded in 2H 2021
Three Garden Road Office Occupancy Rebounded in 2H 2021 Occupancy Rate as at 31 Dec 2021 Asset Banking Management 33% 28% Office Tenant Profile as at 89.0% 31 Dec 2021 85.0% Corporate 6% Legal 6% Vacant 11% Media 6% Others 2% Consultancy 1% Flexible Workspace 5% Medical 2% Jun-2021 Dec-2021 5
Slide 6: Three Garden Road Office Rental Continued to be Under Pressure
Three Garden Road Office Rental Continued to be Under Pressure Passing Rent as at 31 Dec 2021 Lease Expiry as at 31 Dec 2021 Effective Rent per sq. ft. (Lettable) (HK$) • WAULT of 2.9 years Vacant Leases Expiring Rent Review 28.7% 111.1 108.3 9.5% 14.9% 13.6% 11.0% 11.4% 10.8% Jun-2021 Dec-2021 Vaca
Slide 7: Langham Place Office Tower
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Slide 8: Langham Place Office Occupancy Level Recovered on Improving Demand
Langham Place Office Occupancy Level Recovered on Improving Demand Occupancy Rate as at 31 Dec 2021 Office Tenant Profile Jun 2021 3% 29% 26% 10% 21% 9% 2% Dec 2021 3% 30% 30% 10% 21% 4% 2% Healthcare & Medical Beauty 96.3% 91.0% Fitness Centre Flexible Workspace Others Corporate & Sales Services Va
Slide 9: Langham Place Office Flattish Passing Rent
Langham Place Office Flattish Passing Rent Passing Rent as at 31 Dec 2021 Lease Expiry as at 31 Dec 2021 Effective Rent per sq. ft. (Gross) (HK$) • WAULT of 1.7 years Vacant Leases Expiring Rent Review 47.6 47.1 2.5% 38.7% 27.5% 19.9% 0.8% 6.9% 3.7% Jun-2021 Dec-2021 Vacant 2H 2021 2022 2023 2024 20
Slide 10: Langham Place Mall
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Slide 11: Langham Place Mall Maintained Full Occupancy
Langham Place Mall Maintained Full Occupancy Occupancy Rate as at 31 Dec 2021 Lease Expiry as at 31 Dec 2021 • Area with turnover rent only dropped to 12% Leases Expiring Rent Review 3.0% 100% 100% 36.1% 31.8% 21.5% 7.5% Jun-2021 Dec-2021 2022 2023 2024 2025 and after 11
Slide 12: Langham Place Mall Increase in Turnover Rent Insufficient to Offset Drop in Base Rent
Langham Place Mall Increase in Turnover Rent Insufficient to Offset Drop in Base Rent Passing Rent as at 31 Dec 2021 Breakdown of Base Rent and Turnover Rent Total Rent per sq. ft. (Lettable) (HK$) (HK$mm) Base Rent Turnover Rent -11.2% 690 19 3% 613 38 6% -14.3% 167.9 165.9 671 97% 575 94% Jun-2021
Slide 13: Langham Place Mall New Tenants Across Different Categories to Attract Shoppers
Langham Place Mall New Tenants Across Different Categories to Attract Shoppers New Tenants F&B B2 Hand3ag L4 SHA SHA Beauty L2 Fragrance House L2 Givenchy Fashion L5 BBG L6 Porter International 13
Slide 14: Langham Place Mall Continuous Efforts to Draw Footfall and Boost Mall Sales
Langham Place Mall Continuous Efforts to Draw Footfall and Boost Mall Sales MOOV x MIRROR Mask Pop-Up Store Festive Event - Christmas Music Project • Pop-Up Store driving huge traffic to the • Partnered with YouTube mall in Sep-Oct channels and young singers, composed 3 • Members of MIRROR also appe
Slide 15: New Retail Beauty Store - Langham Beauty
New Retail Beauty Store - Langham Beauty • Brand-new beauty store – Langham Beauty was opened in phases, with over 60 global brands offering high quality products, make up and skincare consultation • Direct relationships formed with premium cosmetics and beauty brands, strengthening leasing flexibil
Slide 16: Prudent Financial Position with Comfortable Gearing Ratio
Prudent Financial Position with Comfortable Gearing Ratio Property Valuation: HK$65.3bn Debt Maturity Profile as at 31 Dec 2021(1) (HK$mm) Three Garden Road: HK$39.9bn Bank Loan (Unsecured) MTN HK$ bn HK$ / sqft Cap Rate 5,364 3,903 200 - Office: 38.3 24,230 3.70% 2,337 2,998 5,164 1,654 1,200 643 1
Slide 17: Sustainability
Sustainability Environment Social • Langham Place • Fair Trade coffee Mall is the first tie-dyeing property in HK to workshop to achieve EDGE promote green green building and wellness certification among tenants • Installed over 60 • Charity sale to solar panels at support mothers TGR and LP to whos
Slide 18: Guidance
Guidance Portfolio Outlook Liabilities Management Look at Global Investment Opportunities Very Prudently • Office – Pressure on rental level • Sufficient resources to cater • Explore global investment continues; Social distancing re-financing needs in 2022 opportunities under uncertain measures to d
Slide 19: Important Notice
Important Notice This presentation may contain information which is proprietary, confidential and/or legally privileged and has been prepared by Eagle Asset Management (CP) Limited, in its capacity as the manager (the “REIT Manager”) of Champion Real Estate Investment Trust (the “Trust”). This prese
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