Sun Hung Kai Properties Limited · HKEX:16
Sun Hung Kai Properties — 1H FY2021 Earnings Presentation
45 slides from Sun Hung Kai Properties's earnings presentation, Feb 25, 2021
Slide 1: FY2021 Interim Results
FY2021 Interim Results FY2021 Interim Results 25 February 2021
Slide 2: Contents
Contents Page Financial Review – 1H FY2021 4 Property Business – Hong Kong Land Bank 10 Property Development 13 Property Investment 17 Property Business – Mainland Land Bank 24 Property Development 26 Property Investment 30 Hotel Business 36 Market and Business Prospects 38 FY2021 Interi
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 – 1H FY2021
ITC Remaining Phase, Shanghai Rendering FINANCIAL REVIEW – 1H FY2021 FY2021 Interim Results
Slide 5: Financial Highlights
Financial Highlights 1H 1H Change FY2021 FY2020 Profit attributable to the Company’s shareholders - Underlying(1) (HK$ mn) 17,482 13,422 +30.2% - Reported (HK$ mn) 13,578 15,419 -11.9% Basic earnings per share - Underlying(1) (HK$) 6.03 4.63 +30.2% - Reported (HK$) 4.69 5.32 -11.8% Interim dividend
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 30% 3.35 3.35 3 3.70 3.70 3.45 3.00 2.80 20% 2.40 2.40 2 1.25 10% 1 1.05 1.10 1.20 1.25 1.25 0.95 0.95 0 0% FY2014 FY2015 FY2016
Slide 7: Earnings Drivers
Earnings Drivers Profit Breakdown by Segment(1) 1H 1H Change (in HK$ mn) FY2021 FY2020 (1) Property sales - Hong Kong 10,484 6,335 - Mainland 1,882 515 Sub-total 12,366 6,850 +80.5% (2) Property rental - Hong Kong 6,923 7,539 - Mainland 2,313 1,858 - Singapore 260 272 Sub-total 9,496 9,669 -1.8% (3)
Slide 8: Financial Position
Financial Position 31 Dec 30 Jun 31 Dec As at 2020 2020 2019 Shareholders’ equity (HK$ mn) 583,286 571,813 569,757 - Shareholders’ equity per share (HK$) 201.3 197.3 196.6 Net debt (HK$ mn) 83,955 80,901 101,309 Net gearing ratio(1) 14.4% 14.1% 17.8% 1H 1H FY2021 FY2020 Interest cover(2) 15.3x 11.0x
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, <1 year, 17% 25% 30% 20% 17.8% 14.1% 14.4% 15% 11.2% 10.8% 12.1% 12.9% 10% 7.2% Between 1 and 5% 2 years, 21%
Slide 10: Property Business - Hong Kong: Land Bank
ICC and IFC, Hong Kong PROPERTY BUSINESS - HONG KONG LAND BANK FY2021 Interim Results
Slide 11: Land Bank in Hong Kong
Land Bank in Hong Kong Total land bank as at 31 December 2020: 56.0mn sq.ft.(1) Shopping Residential Centre 77% 36% Office 31% Properties Completed under properties(2) development Shopping Centre 6% Office Residential 9% 10% Hotel Hotel 12% Industrial 2% Industrial 6% 11% Total:33.7mn sq.ft. Total
Slide 12: Land Acquisitions in Hong Kong
Land Acquisitions in Hong Kong Acquired two sites during 1H FY2021 A residential site in So Kwun Wat, Tuen Mun (Tuen Mun Town Lot 496) through the conversion of agricultural land o Stake: 75.2% o Total GFA: 614,000 sq.ft. o Earmarked for the development of a mass residential project with a wide
Slide 13: Property Business - Hong Kong: Property Development
Central Peak, Mid-Levels East, Hong Kong PROPERTY BUSINESS - HONG KONG PROPERTY DEVELOPMENT FY2021 Interim Results
Slide 14: Recognized Property Sales in Hong Kong
Recognized Property Sales in Hong Kong Property Sales(1) 1H FY2021 1H FY2020 Change Revenue (HK$ mn) 23,433 14,678 59.6% Operating profit (HK$ mn) 10,484 6,335 65.5% Major contributors: Cullinan West III, St Martin Phase 2, Mount Regency Phase 2 and W LUXE Satisfactory development margins Co
Slide 15: Contracted Sales in Hong Kong
Contracted Sales in Hong Kong Stake Attri. Sales Project (%) Proceeds (HK$ bn) Wetland Seasons Park, Tin Shui Wai 100 2.0 Cullinan West, West Kowloon JV 2.1 Phase 1 of Regency Bay, Tuen Mun 100 1.4 Grand YOHO, Yuen Long 100 1.3 Phase 1 of Central Peak, Mid-levels East 100 0.8 Others 3.7 Total 11.3
Slide 16: Ample Saleable Resources to be Launched in Hong Kong in the Next 10 Months
Ample Saleable Resources to be Launched in Hong Kong in the Next 10 Months MTR Residential projects Non-residential projects F E D A. Victoria Harbour Phase 2 C Stake: 100% G C. St Michel Phase 1 Res. GFA: 258,000 sq.ft. Stake: 100% B Res. GFA: 260,000 sq.ft. A B. Prince Central Stake: 100% Res. GFA
Slide 17: Property Business - Hong Kong: Property Investment
APM, APM, Hong Hong Kong Kong PROPERTY BUSINESS - HONG KONG PROPERTY INVESTMENT FY2021 Interim Results
Slide 18: Rental Income from Diversified Portfolio
Rental Income from Diversified Portfolio Gross Rental Income by Sector in Hong Kong(1) (HK$ mn) 1H FY2021 Change HK$ mn Gross Rental Income 9,181 7.6% yoy 12,000 Net Rental Income 6,923 8.2% yoy 10,500 9,941 Shopping 9,181 (-7.6% yoy) Centres 9,000 51% 3,281 7,500 3,348 (+2.0% yoy) 6,000 4,500 (-13.
Slide 19: Proactive Approach in Supporting Retail Tenants
Proactive Approach in Supporting Retail Tenants Revitalized outdoor space and introduced sports facilities at selected shopping malls to cater for the growing appetite for outdoor activities Harbour North New Town Plaza YOHO Mall FY2021 Interim Results 19
Slide 20: Proactive Approach in Supporting Retail Tenants (Cont’d)
Proactive Approach in Supporting Retail Tenants (Cont’d) Enhanced hygiene standards by utilizing 5G and advanced technology Provision of smart washroom solutions Introduction of 5G robots Wider application of Internet of Things (IoT) Launch of various contactless facilities Smart washroom
Slide 21: Proactive Approach in Supporting Retail Tenants (Cont’d)
Proactive Approach in Supporting Retail Tenants (Cont’d) The Point by SHKP, the loyalty programme under the SHKP Malls App, with membership surpassing one million managed to drive footfall and boost sales for tenants Online food pre-ordering function available at SHKP Malls App Spending reward
Slide 22: Hong Kong Office Portfolio of 10mn sq.ft.
Hong Kong Office Portfolio of 10mn sq.ft. Continued to be relatively stable amid challenging environment IFC IFC Millennium City Cluster Attri. GFA: 1.0mn sq.ft. Occupancy:98% Attri. GFA: 1.7mn sq.ft. ICC ICC Wan Chai & Occupancy:90% Causeway Bay Attri. GFA: 2.5mn sq.ft. Occupancy:95% Attri. GFA:
Slide 23: Major New Additions in the Pipeline
Major New Additions in the Pipeline Effective stake: 69.9% 98 How Ming Street, Kwun Tong Total GFA: 1.15mn sq.ft. Two Grade-A office towers: 650,000 sq.ft. Preliminary marketing has commenced Premium shopping mall: 500,000 sq.ft. Expected completion: 2023 Mega Commercial Complex atop High To
Slide 24: Property Business - Mainland: Land Bank
Jianghehui One Project, ITC,Hangzhou Shanghai Rendering PROPERTY BUSINESS - MAINLAND LAND BANK FY2021 Interim Results
Slide 25: Land Bank on the Mainland
Land Bank on the Mainland Total land bank as at 31 December 2020: 66.9mn sq.ft.(1) Shopping Residential Centre 51% 19% Shopping Centre Properties 46% Completed under properties(2) development Office 39% Office 26% Residential Hotel Hotel 7% 8% 4% Total: 16.3mn sq.ft. Total: 50.6mn sq.ft. (1) In at
Slide 26: Property Business - Mainland: Property Development
Shanghai Arch, Shanghai Rendering Rendering PROPERTY BUSINESS - MAINLAND PROPERTY DEVELOPMENT FY2021 Interim Results
Slide 27: Recognized Property Sales on the Mainland
Recognized Property Sales on the Mainland Property Sales(1) 1H FY2021 1H FY2020 Change Revenue (HK$ mn) 3,475 1,530 127.1% Operating profit (HK$ mn) 1,882 515 265.4% Major contributors: Forest Hills, The Woodland Phase 5A, Park Royale Phase 2B, Oriental Bund and TODTOWN Phase 1 Satisfactory de
Slide 28: Contracted Sales on the Mainland
Contracted Sales on the Mainland Attri. Sales Stake Project Location Proceeds (%) (RMB bn) Oriental Bund Foshan 50 1.0 Grand Waterfront Dongguan 100 0.6 Forest Hills Guangzhou 70 0.5 Phase 2 of Shanghai Arch Shanghai 100 0.3 Others 0.6 Total 3.0(1) (1) Contracted sales in terms of HKD amounted to HK
Slide 29: Upcoming Launches on the Mainland in the Next 10 Months
Upcoming Launches on the Mainland in the Next 10 Months Stake Attri. Res. GFA Project Location (%) (sq.ft.) New batches of Oriental Bund Foshan 50 1,181,000 Remaining Towers of Grand Dongguan 100 744,000 Waterfront Phase 3B & 3C The Woodland Phase 5B Zhongshan JV 684,000 Total 2,609,000 FY2021 Inter
Slide 30: Property Business - Mainland: Property Investment
Shanghai Shanghai IFC, Shanghai IFCIAPM, Shanghai mall, Shanghai PROPERTY BUSINESS - MAINLAND PROPERTY INVESTMENT FY2021 Interim Results
Slide 31: Rental Income from the Mainland
Rental Income from the Mainland Gross rental income of RMB2,486 million, up 14.7% yoy in RMB terms Represented ~23% of the Group’s total gross rental income Gross Rental Income by Sector on the Mainland(1) 1H (HK$ mn) Change FY2021 HK$ mn 2,866 (+18.8% yoy) Gross Rental Income 2,866 18.8% yoy 2,
Slide 32: Existing Mainland Property Investment – Retail Portfolio
Existing Mainland Property Investment – Retail Portfolio Mainland Retail Portfolio Registered Strong Rental Income Growth Signatures malls in Shanghai and Guangzhou are at the forefront to capture a demand surge in luxury-end retail sales Beijing APM completed a greening project in 2020 and is u
Slide 33: Existing Mainland Property Investment – Office Portfolio
Existing Mainland Property Investment – Office Portfolio Mainland Office Portfolio in Shanghai Continued to Perform Satisfactorily Premium office space at Shanghai IFC and Shanghai ICC remained popular addresses for renowned corporations Offices in the first two phases of ITC in Shanghai were fu
Slide 34: Property Investments under Development in Major Mainland Cities
Property Investments under Development in Major Mainland Cities Remaining Phase ITC, Stake: 100% Shanghai Total GFA: 7.6mn sq.ft. 220-metre office tower: scheduled for completion in mid 2022;pre-leasing activities have commenced 2.5 million sq.ft. mall and another 370-metre skyscraper: construct
Slide 35: Expansion of Mainland Property Investment Portfolio
Expansion of Mainland Property Investment Portfolio Mainland property investment portfolio will be further expanded to ~25 million sq.ft. attributable GFA in the coming 4 years Among the 25 million sq.ft. portfolio, ~46% would be retail spaces Mn sq.ft. (attri. GFA) ~25 25.0 As at 31 Dec 2020, t
Slide 36: Hotel Business
The Ritz-Carlton Shanghai, Pudong HOTEL BUSINESS FY2021 Interim Results
Slide 37: Hotel Business
Hotel Business Hotel Business(1) 1H FY2021 1H FY2020 Change (HK$ mn) Revenue 1,213 2,179 44.3% Operating Profit -228 197 n.a. ALVA Hotel by Royal, Hong Kong The Group’s hotel portfolio in Hong Kong was affected by the pandemic with occupancy and RevPAR have fallen significantly A series of measu
Slide 38: Market and Business Prospects
ICC and IFC, ICC, HongKong Hong Kong MARKET AND BUSINESS PROSPECTS FY2021 Interim Results
Slide 39: Market Prospects
Market Prospects Hong Kong Various challenges brought by COVID-19 will continue to weigh on the economy in the short term The operating environment, in particular the tourism industry, will remain tough Solid end-user demand, the low interest rate environment and Primary the buoyant equity mar
Slide 40: Market Prospects (Cont’d)
Market Prospects (Cont’d) Key Cities on the Mainland The mainland economy will grow at a relatively fast pace this year, backed by its effective containment measures and dual circulation economic strategy Primary Solid end-user demand and the revival of buyer confidence residential will support
Slide 41: Business Prospects
Business Prospects Short-term Hong Kong With ample saleable resources in the pipeline, the Group will launch the projects to drive sale Leasing renewals remain challenging and rents continue to see downward pressure, particularly for shopping malls Hotel business is likely to remain tough as
Slide 42: Business Prospects (Cont’d)
Business Prospects (Cont’d) Medium- to Long-term With the unique strength of the ‘One Country, Two Systems’ and the continuous growth of the Greater Bay Area, the Group has unwavering confidence in the long-term development of Hong Kong The Group continues to develop landmark commercial projects
Slide 43: Creating Long-term Value for All Stakeholders
Creating Long-term Value for All Stakeholders Established for over half a century, the Group has weathered many crises and cycles together with Hong Kong and is adept at turning challenges into opportunities. The Group remains confident in the long-term economic prospects of Hong Kong and the mainla
Slide 44: SHKP in ESG
SHKP in ESG FY2021 Interim Results 44
Slide 45: Thank you!
Thank you! FY2021 Interim Results
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