Slide 1: 2018 Annual Results Presentation
CHINA’S LEADING OFFICE LANDLORD CHINA’S LEADING OFFICE LANDLORD 2018 Annual Results Presentation 2018 Annual 2018 March Annual Results 2019 Results Presentation Presentation March 2019 March 2019
Slide 2: China's Leading Office Landlord
China’s Leading Office Landlord • High Quality Assets - Holding 1.4 million sqm of prime location properties in Beijing and Shanghai • Defensive Commercial Real Estate Player - Value protection in economic downturn • Solid Rental Growth – Completion of two new projects contributing to future rental
Slide 3: Results Summary
Results Summary • Rental Income from retained projects up 18% YoY* • Occupancy robust at 96% across entire portfolio • Gubei SOHO completed in Jan 2019, adding to quality portfolio • Net Gearing and borrowing cost low at 43% and 4.6% respectively • SOHO 3Q average occupancy at 87%, 30,673 seats nati
Slide 4: Rental Income up 18% YoY
Rental Income up 18% YoY 3 3 1 • RMB 1,735 million rental income in 2018, up from RMB 1,669 million in 2017 • Adjusted to exclude effect of the disposals of Hongkou SOHO and Sky SOHO in 2017 and in 2018 respectively, rental income from retained properties in 2018 increased by 18% from 2017, mainly a
Slide 5: Operating Profit up 38.5% YoY
Operating Profit up 38.5% YoY 3 3 1 • Operating profit in 2018 (before adjustment for the current revaluation of investment properties) of RMB 2,335 million vs. RMB 1,689 million 2017, up 38.5% YoY • Valuation gains on investment properties for 2018 was approximately RMB1,093 million, compared with
Slide 6: Operating Profit up 38.5% YoY
Operating Profit up 38.5% YoY RMB million 2018 2017 YoY% Change Turnover 1,721 1,963 -12% -Leasing 1,735 1,669 4% -Sales [1] -14 293 Gross profit 1,285 1,453 -12% Gross margin 75% 74% Operating profit 3,428 8,815 -61% - Operating profit before valuation gains 2,335 [2] 1,689 [3] 38.5% - Valuation ga
Slide 7: Healthy Balance Sheet
Healthy Balance Sheet Net Gearing ratio Average borrowing cost 43% 4.6% Foreign debt Short-term debt percentage* 3.5% 5.3% * After repayment of Wangjing Corporate Bond in Jan 2019 6
Slide 8: Rolling out 5G in all SOHO Buildings
Rolling out 5G in all SOHO Buildings • 16 SOHO China properties buildings in Beijing will be equipped with 5G service • Equipment installment in all Beijing projects has been nearly completed 7
Slide 9: New Projects Boost Future Rental Income
New Projects Boost Future Rental Income • Gubei SOHO and SOHO Leeza in prime locations of Shanghai and Beijing slated for completion in 2019 • Total completed leasable GFA to increase by 30% 1,500,000 1,200,000 Completion of Gubei SOHO and SOHO Leeza in 2019 900,000 Completion of SOHO Tianshan Plaza
Slide 10: Newly Completed Project January 2019 GUBEI SOHO
Newly Completed Project January 2019 GUBEI SOHO 9
Slide 11: Newly Completed Project January 2019 GUBEI SOHO
Newly Completed Project January 2019 GUBEI SOHO 10
Slide 12: Newly Completed Project GUBEI SOHO
Newly Completed Project GUBEI SOHO Total leasable GFA: 112,154 sqm Completion Year: Jan 2019 Located in the core area of the Hongqiao Foreign Trade Center in Shanghai’s Changning District Right above Subway Line 10, and neighboring Gubei Takashimaya Shopping Mall and Gubei Fortune Plaza 11
Slide 13: Pipeline Project SOHO Leeza
Pipeline Project SOHO Leeza 12
Slide 14: Pipeline Project SOHO Leeza
Pipeline Project SOHO Leeza 13
Slide 15: Pipeline Project SOHO Leeza
Pipeline Project SOHO Leeza Total leasable GFA: 133,780 sqm Completion Year: Mid 2019 Located in the center of Lize Business District, with five Subway lines converge here: Line 11, 14, and 16, as well as the Airport Express Line, and the Lize Business District Financial Street direct connection Lin
Slide 16: Grand Opening 2019/9/25
.GRAND OPENING 2019/9/25
Slide 17: Property Portfolio
Property Portfolio Status/ Attributable Project Name City Total GFA Office Retail Completion Date Leasable Area sq.m. sq.m. sq.m. sq.m. 1 Qianmen Avenue Completed Beijing 54,691 54,543 - 54,543 2 Galaxy/Chaoyangmen SOHO Completed Beijing 56,341 45,101 15,036 30,065 3 Wangjing SOHO T1&T2 Completed Be
Slide 18: 7 cities 31 centers 30,673 seats
SOHO 3Q’s growing footprint 7 cities Beijing 31 centers Nanjing Shanghai Hangzhou Chengdu 30,673 seats Chongqing Shenzhen 17
Slide 19: SOHO 3Q's Unique Competitive Advantages
SOHO 3Q´s Unique Competitive Advantages One of the Most Recognized Clear Advantage to Gain Household Brand Names Market Awareness Pan Shiyi & Zhang Xin Influential Business Leaders Leveraging SOHO China’s Brand Name • 25 years experience in commercial property operations • SOHO China holds 1.4 milli
Slide 20: High-quality Tenants
High-quality Tenants ots PINGAN RE RT BA alee Dat ees HR RRS Re VV ej SOAR ee > fess str Wh SERS BT SOF wT HUAWEI soHo® YONGHUI SUPERSTORES Mercedes-Benz
Slide 21: Appendix
sot chine Appendix 20
Slide 22: Financial Results Summary – Income Statement
Financial Results Summary – Income Statement RMB million 2018 2017 Turnover 1,721 1,963 -Leasing 1,735 1,669 -Sales [1] -14 293 Gross profit 1,285 1,453 Gross margin 75% 74% Operating profit 3,428 8,815 - Operating profit before valuation gains 2,335 [2] 1,689 [3] - Valuation gains on IPs 1,093 7,12
Slide 23: Financial Results Summary – Balance Sheet
Financial Results Summary – Balance Sheet RMB million 30-Dec-18 31-Dec-17 Investment Properties 58,338 56,276 Total Cash 5,696 4,326 Total Debt 20,694 21,034 Equity Attributable to Shareholders 34,747 32,704 Total Assets 70,099 71,218 Net Gearing Ratio 43% 51% 22
Slide 24: Qianmen Avenue
Qianmen Avenue Location Qianmen ,Tiananmen South, Beijing Transportation Subway lines 1 & 2 All-in Cost RMB 1.86 billion Total GFA Retail 54,691 sq.m. Lettable GFA Retail 54,543 sq.m. Design Firm Fei Chang Jian Zhu 23
Slide 25: Wangjing SOHO Tower 3
Wangjing SOHO Tower 3 Location Wangjing, Beijing Transportation Subway lines 13 & 15; Airport Express Land Cost RMB 1.4 billion Development Cost RMB 2.0 billion Total GFA 157,318 sq.m. Lettable GFA 133,766 sq.m. Office 123,568 sq.m. Retail 10,198 sq.m. Completion Date Sep 2014 Design Firm Zaha Hadid
Slide 26: SOHO Fuxing Plaza
SOHO Fuxing Plaza Location Near Xintiandi, Puxi, Shanghai Transportation Subway lines 10 & 13 Land Cost RMB 2.6 billion Development Cost RMB 1.8 billion Total GFA 124,461 sq.m. Lettable GFA 88,234 sq.m. Office 46,344 sq.m. Retail 41,890 sq.m. Completion Date Sep 2014 Design Firm GMP 25
Slide 27: Guanghualu SOHO II
Guanghualu SOHO II Location Central Business District, Beijing Transportation Subway lines 1 & 10 Land Cost RMB 1.3 billion Development Cost RMB 1.2 billion Total GFA 117,179 sq.m. Lettable GFA 94,279 sq.m. Office 63,308 sq.m. Retail 30,971 sq.m. Completion Date Nov 2014 Design Firm GMP 26
Slide 28: Bund SOHO
Bund SOHO Location Bund, Shanghai Transportation Bund's transportation hub Land Cost RMB 2.3 billion Development Cost RMB 1.5 billion Total GFA 104,208 sq.m. Lettable GFA 72,826 sq.m. Office 51,317 sq.m. Retail 21,509 sq.m. Completion Date Aug 2015 Design Firm GMP 27
Slide 29: SOHO Tianshan Plaza
SOHO Tianshan Plaza Location Hongqiao Foreign Trade Center, Shanghai Transportation Subway line 2 Land Cost RMB 1.9 billion Est. Construction Cost RMB 1.9 billion Total GFA 156,991 sq.m. Leasable GFA 97,751 sq.m. Completion Time Dec 2016 Design Firm KPF 28
Slide 30: Gubei SOHO
Gubei SOHO Location Hongqiao Foreign Trade Center, Shanghai Transportation Subway line 10 Land Cost RMB 3.3 billion Est. Construction Cost RMB 1.7 billion Total GFA 153,505 sq.m. Leasable GFA 112,154 sq.m. Completion Time 2019 Design Firm KPF 29
Slide 31: SOHO Leeza
Investment Properties Under Construction SOHO Leeza Location Between Southwest 2nd & 3rd Ring Road, Beijing Transportation Subway lines 14 & 16 (in planning) Land Cost RMB 1.98 billion Est. Construction Cost RMB 1.8 billion Total GFA 172,800 sq.m. Leasable GFA 133,780 sq.m. Completion Time 2019 Desi
Slide 32: Thank You
sot chine THANK YOU