Hang Lung Properties Limited · HKEX:101
Hang Lung Properties — H1 2021 Earnings Presentation
45 slides from Hang Lung Properties's earnings presentation, July 2021
Slide 1: 2021 Interim Results Presentation
2021 INTERIM RESULTS PRESENTATION July 2021
Slide 2: Contents
CONTENTS P.2-13 FY2021 Interim Results Highlights P.14-31 ESG Highlights P.32-58 Mainland Portfolio P.50-52 Heartland 66 (opened in Mar 2021) P.59-65 Mainland Projects Pipeline P.66-71 Hong Kong Portfolio P.72-80 Appendix P.73-74 HLP – Financial Highlights and Position P.77-78 HLG – Financial Highli
Slide 3: FY2021 Interim Results Highlights
FY2021 Interim Results Highlights 2
Slide 4: Rental revenue and underlying profit highlights
(Right hand side) (Left hand side) HLP rental revenue and YoY change Rental revenue Hang g Lung g Properties p Rental revenue (HK$M) Mainland (YoY%) 6,000 China 50% ©45%yoy Rental Revenue Record High 5,000 40% HK$4,975M 4,000 34% 30% Overall 47% 49% 48% 46% 46% ©19% yoy 3,000 37% ©19%yoy 20% 10% 2,0
Slide 5: Mainland retail rental revenue and tenant sales
1H21 Retail rental revenue: Luxury / Sub-luxury 86% / 14% ¾ Seven luxury malls • Tenant sales growth further accelerated, and more than (YoY change in RMB Terms) doubled from 1H20 or 1H19 60% • Luxury content, leadership position and CRM drove the 50% ©46% Luxury malls strength 40% ©38% Overall • Ol
Slide 6: Heartland 66 opening and luxury content
Heartland 66 Spring City 66 Olympia 66 (opened in Mar 2021) (opened in Aug 2019) (transformed to luxury in 1H21) ¾ Heartland 66 mall opened in March 2021: bigger GFA and LFA than Spring City 66; reached break even point earlier than Spring City 66 Spring City 66 Heartland 66 Total GFA (sq. f.) 6.7M
Slide 7: Mainland luxury malls and offices performance
NEW Grand Plaza 66 Forum 66 Center 66 Olympia 66 Spring City 66 Heartland 66 Gateway 66 City Shanghai Shanghai Shenyang Wuxi Dalian Kunming Wuhan Rental Revenue (6 months ended Jun 30, 2021) - Mall RMB565M RMB874M RMB51M RMB183M RMB67M RMB127M RMB43M - Office - RMB310M RMB65M RMB53M - RMB35M RMB10M
Slide 8: Sub-luxury malls: Palace 66, Parc 66, Riverside 66
Palace 66 Parc 66 Riverside 66 ¾ 1H21 Rental revenue -12% YoY ¾ Rental relief amount greatly reduced City Shenyang Jinan Tianjin Rental Revenue (6 months ended Jun 30, 2021) - Mall RMB90M RMB150M RMB82M Rental Revenue Change (YoY in RMB) ©6% ©1% ©3% Occupancy (at Jun 30, 2021) - Mall 92% 94% 76% ¾ O
Slide 9: Residential pre-sale plans
Hong Kong g – Former er Amoycan n Industrial Centre ¾ Pre-sale of apartments is planned in 2H 2021 Mainland China a – Heartland Residences ¾ The inaugural project of Hang Lung Residences ¾ Pre-sale will begin in 1H 2022 Artistic impression Artistic impression 13
Slide 10: ESG Highlights
Selected ESG Achievements Key accolades ESG Highlights 3-star performance rating ‘BBB’ rating since 2015 A grade disclosure rating since 2018 36 strategic ESG KPIs assigned to departments Percentile ranking: 82 in 2020 ESG risk rating: Low risk in 2021 to support pursuit of our 2030 ESG targets Co
Slide 11: New Vision, Mission, and Values; Board Diversity
New Vision, Mission, and Values Board Diversity Board diversity of Hang Lung Properties as of June 30, 2021 Launched an updated expression of corporate purpose in Mar 2021 to reaffirm our values and our commitment to sustainability leadership Designation Age group We create compelling spaces 30% 20%
Slide 12: Sustainability Governance and 2030 Goals
Sustainability Governance 2030 Sustainability Goals and Targets Joint Statement on Oversight and Management of Environmental, We aspire to be become one of the most sustainable real estate Social and Governance Issues: approved by the Boards of HLP and companies in the world by 2030. In support
Slide 13: Strategic ESG KPIs for 2021; Climate Resilience
Strategic ESG KPIs for 2021 Climate Resilience The Sustainability Steering Committee endorsed and assigned 36 strategic ESG KPIs to departments in 2021 to support the pursuit of the GHG & Energy Reduction 2030 targets. To reduce Greenhouse Gas (GHG) emissions intensity by 70% The strategic ESG
Slide 14: Resource Management and Green Building
Resource Management Resource Management Green Building Certifications Achievements in 2020 Key Initiatives in 2021 Westlake 66 Energy Reduced our electricity Engaged consultants to intensity by construction enhance the Received our first LEED floor area by 21.5% by measurement and (Building De
Slide 15: Wellbeing
Wellbeing Wellbeing Employee Wellbeing Response to COVID-19 New staff benefits since Apr 2020: Employees Support the health and safety of our Adopted flexible work staff in Hong Kong and encourage arrangements and implemented a them to be vaccinated by offering stringent reporting and self- tw
Slide 16: Sustainable Transactions and Community Investment
Sustainable Transactions Sustainable Community Investment Hang Lung Mathematics Awards Sustainable Finance During 1H21, a total of HK$6billion of sustainability-linked loans and debt facilities were newly raised, bringing the total outstanding balance of sustainable finance to HK$12.3billion as at
Slide 17: Sustainable Community Investment
Sustainable Community Investment Sustainable Community Investment Chair Mr. Ronnie Chan awarded the Chair Mr. Ronnie Chan awarded the 2018 Grand Bauhinia Medal (GBM), the highest honor bestowed, Dwight D. Eisenhower Global Leadership Award by the Government of the Hong Kong Special Administrative Re
Slide 18: Chan Family's Philanthropy
Sustainable Community Investment Chan Family’s Philanthropy Rebuilding of Jianfu Palace Garden & Harvard T.H. Chan School of Public Health The Hall of Rectitude Complex in Beijing The Morningside Foundation, founded by Chair Mr. Ronnie Chan and Non-Executive Director of Hang Lung Group Dr. Gerald
Slide 19: Mainland Portfolio
Mainland Portfolio Overall Rental Revenue RMB2,746M ©33% yoy Rental Revenue (YoY change in RMB) Mall Office Hotel ©38% ©12% ©86% New Rental Revenue Stream Heartland 66 ¾ Mall opened in March 2021 ¾ Office opened in November 2020 Hang Lung Residences ¾ Premium serviced residences brand in Mainland Ch
Slide 20: Landmark Luxury Mall in Shanghai
Landmark Luxury Mall in Shanghai ©116% Tenant Sales 1-6/2021 (YoY change) Selected Tenants Awards Tenant Mix by Leased Area Asia Pacific Property Awards 2021-2022 – Best (at Jun 30, 2021) Commercial Renovation / Redevelopment Project MIPIM Asia Awards 2020 - Best Refurbished Fashion & Building –
Slide 21: Home to Luxury
Home to Luxury ©101% Tenant Sales 1-6/2021 (YoY change) Flagship Stores Awards Tenant Mix by Leased Area (at Jun 30, 2021) The Most Influential Commercial Landmark in Shanghai 2008 No. 1 Shopping Mall in Shanghai 2006 Fashion & Top Ten Fashion Landmark in Shanghai 2005 129 accessories Shangh
Slide 22: Plaza 66 Office Towers
Plaza 66 l Office Towers Selected Tenants ©65% Tenant Sales 1-6/2021 (YoY change) Awards Tenant Mix by Leased Area (at Jun 30, 2021) F&B LEED Certification (Gold Level) – Fashion & 24% accessories Shopping Mall 21% 135 Tenants Lifestyle/ LEED Certification (Gold Level) – Others Entertainment Off
Slide 23: Forum 66 Luxury-led Specialty Mall in Shenyang
Forum 66 l Luxury-led Specialty Mall in Shenyang Office Tower I ¾ 315 guest rooms and suites ¾ 19 floors Summer party Selected Tenants Selected Tenants Office lobby Opened in Dec 2020 Opened in Jan 2021 39 40
Slide 24: The Center of Luxury in Wuxi
The “Center” of Luxury in Wuxi ©190% Tenant Sales 1-6/2021 (YoY change) Opened in Nov 2020 Opened in Dec 2020 Selected Tenants Awards Tenant Mix by Leased Area (at Jun 30, 2021) LEED Certification (Gold Level) - Phase 1 F&B Fashion & MIPIM Asia Awards 2014 - Best Mixed-Use accessories 24% Develo
Slide 25: Center 66 Office Towers
Center 66 l Office Towers Selected Tenants ©80% Tenant Sales 1-6/2021 (YoY change) Awards Tenant Mix by Leased Area 2018 ICSC China Shopping Centre & Retailer (at Jun 30, 2021) Awards - Gold Award for Design & Development Excellence – New Developments Fashion & F&B 2017 ICSC Asia-Pacific Shoppin
Slide 26: Olympia 66 Regional Luxury Hub in Dalian
Olympia 66 Regional Luxury Hub in Dalian Opened in Jul 2021 Opened in Jun 2021 Opened in May 2021 Opened in 2021 Upcoming top-end luxury brands 45 46
Slide 27: Premium Luxury Center in Kunming
Premium Luxury Center in Kunming ©232% Tenant Sales 1-6/2021 (YoY change) Selected Tenants Awards Tenant Mix by Leased Area (at Jun 30, 2021) F&B LEED Certification (Gold Level) - Shopping Fashion & 21% Mall & Office Tower accessories 32% 286 Tenants 2019 China Experience Commercial Real Estate
Slide 28: Spring City 66 Office Tower
Spring City 66 l Office Tower The tallest building in Kunming and Yunnan Province Mall opened on March 25, 2021 ¾ 1.9M sq ft GFA ¾ 66 floors Selected Tenants Awards Tenant Mix by Leased Area (at Jun 30, 2021) 2015 Cityscape Awards for Emerging Fashion & F&B 28% Markets - Mixed-Use Project Award -
Slide 29: Heartland 66 Premium Luxury Center in Wuhan
Heartland 66 l Premium Luxury Center in Wuhan Heartland 66 Office Tower ¾ 1.6M sq ft GFA ¾ 61 floors Selected Tenants First store in Wuhan opened in May 2021 Opened in May 2021 Opened in 1H 2021 ¾ A ready-to-use office to attract different leasing demands ¾ Refurbished with environmentally Top-end l
Slide 30: Young & Trendy Mall in Shenyang
Young & Trendy Mall in Shenyang ©51% Tenant Sales 1-6/2021 (YoY change) Selected Tenants Awards Tenant Mix by Leased Area (at Jun 30, 2021) 2011 ICSC Asia Pacific Shopping Center Awards - Silver Award for Innovative Design and Fashion & F&B Development of a New Retail Project accessories 23% 46% 2
Slide 31: Contemporary Lifestyle Hub in Jinan
Contemporary Lifestyle Hub in Jinan ©48% Tenant Sales 1-6/2021 (YoY change) Disney exhibition Selected Tenants ¾ AEI started in June 2021 to pave the way for a stronger mix of affordable luxury and beauty brands ¾ Completion in phases from 2022 onwards Awards Tenant Mix by Leased Area (at Jun 30, 20
Slide 32: Trend-setting Lifestyle Destination in Tianjin
Trend-setting Lifestyle Destination in Tianjin ©79% Tenant Sales 1-6/2021 (YoY change) Famous figure exhibition Selected Tenants Awards Tenant Mix by Leased Area (at Jun 30, 2021) 2019 Excellence in Carbon Challenge Fashion & F&B MIPIM Asia Awards 2015 - Best Innovative 21% accessories Green Bui
Slide 33: Cost Distribution of 5 Upcoming Projects
Heartland 66 Center 66 Spring City 66 Westlake 66 Forum 66 Jinghan Avenue, Renmin Zhong Road & Dongfeng Dong Road, Bai Jing Fang area, Xiacheng Qingnian Street, Location Qiaokou District, Wuhan Jiankang Road, Panlong District, Kunming District, Hangzhou Shenhe District, Shenyang Liangxi District, Wu
Slide 34: Wuxi and Wuhan projects
@ Wuxi @ Wuhan Awards Awards LEED Pre-certification (Gold Level) - Phase 2 2015 Cityscape Awards for Emerging Markets - LEED Certification (Gold Level) - Phase 1 Mixed-Use Project Award – Future MIPIM Asia Awards 2014 - Best Mixed-Use Development - Silver LEED Pre-certification Award (Gold
Slide 35: Kunming and Hangzhou projects
@ Kunming @ Hangzhou Awards Awards LEED Certification (Gold LEED Pre-certification Level) - Shopping Mall & (Platinum Level) – Office Office Tower Towers 1&2 2019 China Experience Commercial Real Estate LEED Pre-certification (Gold Pilot Award - Popular Level) – Mall & Towers 3 - 6 Experient
Slide 36: Shenyang project
@ Shenyang Awards LEED Certification (Gold Level) - Shopping Mall LEED Certification (Gold Level) - Office Completed 5.3M sq ft Total Gross Floor Area Mall 1.0M sq ft 12.6M sq ft OT I – Office portion 1.4M sq ft OT I – Hotel portion 0.8M sq ft City SHENHE Plaza DISTRICT Shifu Road Subway station
Slide 37: Hong Kong Portfolio
Standard Chartered Bank Building Hong Kong Portfolio @ Central NEW Overall Rental Revenue z HK$1,680M ª12% yoy Rental Revenue (YoY change) Usage: Retail / Office Retail Office Resi. & S.A. ª14% ª8% ª17% Awards BEAM Plus V1.2 Existing Buildings Certification (Platinum Rating) Asia Pacific Intelli
Slide 38: Hong Kong retail and office properties
Fashion Walk Gala Place @ Causeway Bay @ Mongkok NEW Hot Toys Summer Showcase Usage: Retail / Residential Usage: Retail / Office Hang Lung Centre @ Causeway Bay Grand Plaza @ Mongkok Usage: Retail / Office Usage: Retail / Office Kornhill Plaza/ Kornhill Apartments Amoy Plaza @ Kowloon East @ Island
Slide 39: Re-development Projects
Re-development Projects ¾ In June 2021, one Blue Pool Road house was sold. Sales revenue and profit will be recognized upon completion in 1Q 2022 (Re-development project) @ Ngau Tau Kok, Hong Kong ¾ Construction works at the Grade A office tower re-development Usage Residential GFA at 226-240 Electr
Slide 40: Appendix
Appendix Hang Lung Properties - Financial Highlights and Position - Investment Property Portfolio Hang Lung Group - Financial Highlights and Position - Investment Property Portfolio 72
Slide 41: HLP Financial Highlights and Position
1-6/2021 1-6/2020 30/6/2021 31/12/2020 (HK$M) Pty Leasing Pty Sales Total Pty Leasing Pty Sales Total At June 30, 2021 HK$M HK$M Change Revenue 4,975 - 4,975 4,184 - 4,184 Investment Properties 174,248 164,322 © 6% - Mainland China 3,295 - 3,295 2,277 - 2,277 - Mainland China 114,388 103,708 ©10% -
Slide 42: Completed Investment Properties
Completed Investment Properties Completed (M sq ft) GFA GFA by usage Hong Kong Portfolio 7M sq ft Geographical Split (Exclude car parks) of Total GFA: Mainland Portfolio 37.3M sq ft Retail Shanghai Grand Gateway 66 1.8 44M sq ft Plaza 66 2.9 51% Hong Kong Shenyang Palace 66 2.0 Office Residential/ 3
Slide 43: HLG Financial Highlights and Position
1-6/2021 1-6/2020 30/6/2021 31/12/2020 (HK$M) Pty Leasing Pty Sales Total Pty Leasing Pty Sales Total At June 30, 2021 HK$M HK$M Change Revenue 5,275 - 5,275 4,457 - 4,457 Investment Properties 183,232 173,235 © 6% - Mainland China 3,526 - 3,526 2,480 - 2,480 - Mainland China 121,560 110,793 ©10% -
Slide 44: Investment Properties – Mainland China and Hong Kong
(Note) Investment Properties – Hong Kong Investment Properties – Mainland China 9 Wing Hong Street Tai Hing Gardens @ Tuen Mun, Hong Kong Grand Gateway 66 @ Cheung Sha Wan, Hong Kong @ Shanghai Office building Retail portion Office Tower I & Serviced Apartments Luen Cheong Can Centre @ Tuen Mun, Hon
Slide 45: Thank You
Thank You End of Presentation Disclaimer 1. All information and data are provided for information purposes only. All opinions included herein are based on information available as of the date hereof and are subject to change without notice. There is no guarantee, representation or warranty provided