Sun Hung Kai Properties Limited · HKEX:16
Sun Hung Kai Properties — FY2020 Earnings Presentation
45 slides from Sun Hung Kai Properties's earnings presentation, Sep 10, 2020
Slide 1: FY2020 Annual Results
FY2020 Annual Results FY2020 Annual Results 10 September 2020
Slide 2: Contents
Contents Page Financial Review – FY2020 4 Property Business – Hong Kong Land Bank 11 Property Development 13 Property Investment 18 Property Business – Mainland China Land Bank 25 Property Development 28 Property Investment 32 Hotel Business 36 Market and Business Prospects 38 FY2020 Ann
Slide 3: Disclaimer
Disclaimer The information contained in these materials is intended for reference and general information purposes only. Neither the information nor any opinion contained in these materials constitutes an offer or advice, or a solicitation, recommendation or suggestion by Sun Hung Kai Properties Lim
Slide 4: Financial Review – FY2020
ICC, Hong Kong FINANCIAL REVIEW – FY2020 FY2020 Annual Results
Slide 5: Financial Highlights
Financial Highlights FY2020 FY2019 Change Profit attributable to the Company’s shareholders - Underlying(1) (HK$ mn) 29,368 32,398 -9.4% - Reported (HK$ mn) 23,521 44,912 -47.6% Basic earnings per share - Underlying(1) (HK$) 10.13 11.18 -9.4% - Reported (HK$) 8.12 15.50 -47.6% Final dividend per sha
Slide 6: Sustainable Dividend
Sustainable Dividend Final Dividend (LHS) Interim Dividend (LHS) Payout Ratio % (RHS) HK$ 6 47.4% 48.9% 50% 46.0% 45.7% 44.3% 44.3% 42.1% 5 4.95 4.95 4.65 40% 4.10 4 3.85 3.35 30% 3.35 3 3.70 3.70 3.45 3.00 2.80 20% 2.40 2.40 2 10% 1 1.05 1.10 1.20 1.25 1.25 0.95 0.95 0 0% FY2014 FY2015 FY2016 FY201
Slide 7: Earnings Drivers
Earnings Drivers Profit Breakdown by Segment(1) FY2020 FY2019 Change (in HK$ mn) (1) Property sales - Hong Kong 16,333 16,395 - Mainland 2,034 2,302 - Singapore 10 0 Sub-total 18,377 18,697 -1.7% (2) Property rental - Hong Kong 14,456 15,373 - Mainland 3,662 3,746 - Singapore 447 559 Sub-total 18,56
Slide 8: Financial Position
Financial Position 30 Jun 31 Dec 30 Jun As at 2020 2019 2019 Shareholders’ equity (HK$ mn) 571,813 569,757 566,405 - Shareholders’ equity per share (HK$) 197.3 196.6 195.5 Net debt (HK$ mn) 80,901 101,309 72,968 Net gearing ratio(1) 14.1% 17.8% 12.9% FY2020 FY2019 Interest cover(2) 11.8x 14.6x (1) C
Slide 9: Financial Position (Cont’d)
Financial Position (Cont’d) Prudent financial policy Balanced debt maturity profile Diversified funding sources Ample liquidity Debt Maturity Profile Net Gearing Ratio 30% >5 years, 25% 26% <1 year, 23% 20% 17.8% 14.1% 15% 11.2% 10.8% 12.1% 12.9% 10% 7.2% Between 1 and 5% 2 years, 14% Betwee
Slide 10: Property Business - Hong Kong Land Bank
Victoria Harbour, North Point, Hong Kong PROPERTY BUSINESS - HONG KONG LAND BANK FY2020 Annual Results
Slide 11: Land Bank in Hong Kong
Land Bank in Hong Kong Total land bank as at 30 June 2020: 57.5mn sq.ft.(1) Residential Office 74% 31% Shopping Centre 35% Properties Completed under (2) Shopping properties development Centre 6% Hotel Office 13% 12% Residential Hotel 10% Industrial 2% Industrial 6% 11% Total:33.4mn sq.ft. Total:2
Slide 12: Mega Commercial Site atop High Speed Rail Terminus, West Kowloon
Mega Commercial Site atop High Speed Rail Terminus, West Kowloon Adjacent to ICC in West Kowloon with excellent transportation connectivity of four railway lines Well-poised to create great synergy with the nearby ICC and evolve into a major business hub in the Greater Bay Area Introduced two
Slide 13: Property Business - Hong Kong Property Development
Wetland Victoria SeasonsHarbour, Park, Tin North ShuiPoint, Wai, Hong Hong Kong Kong PROPERTY BUSINESS - HONG KONG PROPERTY DEVELOPMENT FY2020 Annual Results
Slide 14: Recognized Property Sales in Hong Kong
Recognized Property Sales in Hong Kong (1) Property Sales FY2020 FY2019 Change Revenue (HK$ mn) 36,873 36,541 0.9% Operating profit (HK$ mn) 16,333 16,395 0.4% Major contributors: Wings at Sea & Wings at Sea II, phase 1 of St. Martin, phase 1 of Mount Regency and PARK YOHO Napoli Satisfactory
Slide 15: Completion Schedule for Next 3 Years
Completion Schedule for Next 3 Years Expected average annual completions of around 3.3mn sq.ft. in the next three financial years FY2020 FY2021 FY2022 FY2023 Average Completion (Actual) (Forecast) (Forecast) (Forecast) (FY2021-23) Schedule (1) (Attributable GFA in mn sq.ft.) Attri. GFA 3.5 2.5 2.9
Slide 16: Contracted Sales in Hong Kong
Contracted Sales in Hong Kong Stake Attri. Sales Project (%) Proceeds (HK$ bn) Cullinan West III, West Kowloon JV 10.3 First two phases of Wetland Seasons Park 100 9.0 Crown of St. Barth, Ma On Shan 100 2.8 PARK YOHO Napoli, Yuen Long 100 2.5 Others 9.0 Total 33.6 Home sales activities have been a
Slide 17: Upcoming Launches in Hong Kong in the Next 9 Months
Upcoming Launches in Hong Kong in the Next 9 Months Wetland Seasons Park Phase 3 (Stake: 100%) 252 Texaco Road & Res. GFA: 180,000 sq.ft. 28 Wang Lung Street (Stake: 65.2%) Attri. GFA: 248,000 sq.ft. Yuen Long Station Development Phase 1 (Stake: JV) Res. GFA: 734,000 sq.ft. Project in Sha Tin Mid-le
Slide 18: Property Business - Hong Kong Property Investment
ICC Kong Harbour North, North Point, Hong / IFC Hong Kong PROPERTY BUSINESS - HONG KONG PROPERTY INVESTMENT FY2020 Annual Results
Slide 19: Rental Income from Diversified Portfolio
Rental Income from Diversified Portfolio Gross Rental Income by Sector in Hong Kong(1) HK$ mn (HK$ mn) FY2020 Change 22,000 Gross Rental Income 19,009 -3.5% yoy 20,000 19,698 19,009 (-3.5% yoy) Net Rental Income 14,456 -6.0% yoy 18,000 16,000 6,434 (+3.5% yoy) 6,658 14,000 Shopping 12,000 Centres 52
Slide 20: Hong Kong Retail Portfolio of 12mn sq.ft.
Hong Kong Retail Portfolio of 12mn sq.ft. The Group’s retail portfolio has not been immune to the negative impact IFC Mall brought by a sharp decline in tourist arrivals and mandatory social distancing measures Still recorded healthy occupancy Near term pressure on renewals and new leases Fu
Slide 21: Hong Kong Retail Portfolio of 12mn sq.ft. (Cont’d)
Hong Kong Retail Portfolio of 12mn sq.ft. (Cont’d) Made considerable efforts to retain customers’ appetite for shopping The Point by SHKP to leverage the Group’s extensive business arms and collaborate with tenants and business partners to promote consumption Creative initiatives, such as the
Slide 22: Latest Retail Additions
Latest Retail Additions V Walk, West Kowloon Stake: 100% Total GFA: 298,000 sq.ft. Atop MTR Nam Cheong Station Opened in July 2019 with sustained high occupancy Well connected to nearby major residential developments via indoor walkways and bridges Harbour North, North Point Stake: 100% Total
Slide 23: Hong Kong Office Portfolio of 10mn sq.ft.
Hong Kong Office Portfolio of 10mn sq.ft. Continued to deliver stable performance Millennium City ICC Cluster IFC Wan Chai & Causeway Bay Attri. GFA: 2.5mn sq.ft Attri. GFA: 1.7mn sq.ft Occupancy:99% Occupancy:92%(2) Attri. GFA: 1.0mn sq.ft Occupancy:99% Attri. GFA: 1.9mn sq.ft (1) Occupancies as
Slide 24: Major New Addition in the Pipeline
Major New Addition in the Pipeline 98 How Ming Street, Kwun Tong Stake: 69.8% Total GFA: 1.15mn sq.ft. Two Grade-A office towers: 650,000 sq.ft. Premium shopping mall: 500,000 sq.ft. Create further synergy with the Millennium City cluster Retail Portion of New Kowloon Inland Lot No. 6568 Stake
Slide 25: Property Business - Mainland China Land Bank
One ITC, Shanghai PROPERTY BUSINESS - MAINLAND CHINA LAND BANK FY2020 Annual Results
Slide 26: Land Bank in Mainland China
Land Bank in Mainland China Total land bank as at 30 June 2020: 68.1mn sq.ft.(1) Shopping Residential Centre 18% 51% Shopping Centre 50% Properties Completed under (2) properties development Office 34% Office 28% Residential Hotel Hotel 7% 9% 3% Total: 14.5mn sq.ft. Total: 53.6mn sq.ft. (1) In att
Slide 27: Land Acquisition in Mainland China, Jianghehui Project, Hangzhou
Land Acquisition in Mainland China, Jianghehui Project, Hangzhou A mega JV project in the core area of Qianjian New City CBD, Hangzhou To be developed into an integrated landmark with a total above-ground GFA of ~9mn sq.ft. To be completed in phases starting from 2024 Site formation is under
Slide 28: Property Business - Mainland China Property Development
Shanghai Arch, Shanghai Rendering Rendering PROPERTY BUSINESS - MAINLAND CHINA PROPERTY DEVELOPMENT FY2020 Annual Results
Slide 29: Recognized Property Sales in Mainland China
Recognized Property Sales in Mainland China (1) Property Sales FY2020 FY2019 Change Revenue (HK$ mn) 4,359 4,772 8.7% Operating profit (HK$ mn) 2,034 2,302 11.6% Major contributors: Park Royale, Forest Hill and Grand Waterfront Satisfactory development margins Around HK$9.8bn(2) contracted s
Slide 30: Contracted Sales in Mainland China
Contracted Sales in Mainland China Attri. Sales Stake Project Location Proceeds (%) (RMB bn) Phase 2 of Shanghai Arch Shanghai 100 4.6 Oriental Bund Foshan 50 1.4 The Woodland Zhongshan JV 1.3 Others 2.2 (1) Total 9.5 (1) Contracted sales in terms of HKD amounted to HK$10.5bn FY2020 Annual Results 3
Slide 31: Upcoming Launches in Mainland China in Next 9 Months
Upcoming Launches in Mainland China in Next 9 Months Stake Attri. Res. GFA Project Location (%) (sq.ft.) Grand Waterfront Phase 3A & 3B Dongguan 100 1,103,000 New batches of Oriental Bund Foshan 50 828,000 Phase 4A, 4B & 4C New batches of TODTOWN Shanghai 35 145,000 Phase 2A Total 2,076,000 FY2020 A
Slide 32: Property Business - Mainland China Property Investment
Shanghai Shanghai IFC, Shanghai IFC mall, PROPERTY BUSINESS - MAINLAND CHINA PROPERTY INVESTMENT FY2020 Annual Results
Slide 33: Rental Income from Mainland China
Rental Income from Mainland China Represented ~19% of the Group’s total gross rental income Gross rental income of RMB4,166mn, up 2.4% yoy in RMB terms HK$ mn Gross Rental Income by Sector on the Mainland(2) (HK$ mn) FY2020 Change 5,000 4,666 4,617 (-1.0% yoy) Gross Rental Income 4,617 -1.0% yoy
Slide 34: Existing Property Investment Portfolio
Existing Property Investment Portfolio Made extra efforts to ensure the health and safety of its shoppers, tenants and employees Varied performance according to different city-specific quarantine and social distancing measures since the outbreak of COVID-19 Shanghai IFC, Pudong Shanghai ICC, Pux
Slide 35: Property Investments under Development in Major Mainland Cities
Property Investments under Development in Major Mainland Cities Stake: 100% ITC, Xujiahui Total GFA: 7.6mn sq.ft. One ITC mall: soft opened in December 2019; high committed occupancy One ITC Offices in the first two phases: fully let Remaining phase: Pre-leasing activities have commenced for t
Slide 36: Hotel Business
Hyatt Centric Victoria Harbour, Hong Kong HOTEL BUSINESS FY2020 Annual Results
Slide 37: Hotel Business
Hotel Business Hotel Business(1) FY2020 FY2019 Change (HK$ mn) Revenue 3,075 5,682 45.9% Operating Profit (330) 1,433 n.a. Occupancy and RevPAR of the Group’s hotel portfolio saw a drastic decline mainly due to paralyzed cross-border travels amid the COVID-19 pandemic To mitigate the impacts wit
Slide 38: Market and Business Prospects
ICC and IFC, ICC, HongKong Hong Kong MARKET AND BUSINESS PROSPECTS FY2020 Annual Results
Slide 39: Market Prospects
Market Prospects Hong Kong Both internal and external headwinds, including the disruptions brought by COVID-19, will continue to post downward pressure to the economy The operating environment, in particular the leisure-related businesses, is likely to remain tough and challenging Response to
Slide 40: Market Prospects (Cont’d)
Market Prospects (Cont’d) Key Cities in Mainland China Domestic economic activity is on track to recovery Solid domestic demand and positive stimulus measures should help support a reasonable growth in its economy Primary sales will remain robust with relatively stable home Primary prices resi
Slide 41: Business Prospects
Business Prospects Short- to Medium-term The state of pandemic will highly affect the launch schedule of project sales and certain business segments of the Group such as retail leasing and hotel business in Hong Kong Continue to launch projects for sales when market ready Collaborate with tena
Slide 42: Business Prospects (Cont’d)
Business Prospects (Cont’d) Long-term With the unique strength of ‘One Country, Two Systems’ and favourable international competitiveness, the Group remains highly confident that Hong Kong will once again be able to turn adversity into opportunity The Group will continue to seek land acquisition
Slide 43: Creating Long-term Value for Stakeholders
Creating Long-term Value for Stakeholders Likewise, guided by an indomitable spirit of our late founder, Mr. Kwok Tak-seng, the Group has also gone through ups and downs since its public listing about 50 years ago, during which the management team has accumulated valuable experiences in dealing with
Slide 44: SHKP in Sustainability
SHKP in Sustainability 44 FY2020 Annual Results
Slide 45: Thank you!
Thank you! FY2020 Annual Results
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