Prosperity Real Estate Investment Trust · HKEX:808

Prosperity Real Estate Investment Trust — FY2011 Earnings Presentation

20 slides from Prosperity Real Estate Investment Trust's earnings presentation, 2012

  1. Slide 1: Prosperity REIT 2011 Final Results

    Prosperity REIT 2011 Final Results

  2. Slide 2: Contents

    Contents Portfolio at a Glance 3-8 2011 Final Results Highlights 9 - 10 Financial Review 11 - 13 Growth Strategies 14 - 17 Key Facts 18 - 19

  3. Slide 3: Portfolio at a Glance

    PROSPERITY REIT SERS Portfolio at a Glance

  4. Slide 4: Portfolio Map

    Portfolio Map  Prime beneficial of the continued decentralization trend in Hong Kong New Treasure Trendy Centre Centre GRA: 6 GRA: 7 173,764 sq. ft. 86,168 sq. ft. No. of carpark 6 No. of carpark spaces: 79 7 spaces: 22 Kowloon East Prosperity Kowloon West Center GRA: 5 149,253 sq. ft. The Metropol

  5. Slide 5: Loyal and Quality Tenant Base

    Loyal and Quality Tenant Base Proactive Lease Management Tenant Retention Rate 2006– 2011 80% 74.9% 70% 66.9% 64.5% 61.8% 59.5% 60% 51.5% 50% 50% 40% 30% 20% 10% 0% 2006 2007 2008 2009 2010 2011  Tenant retention rate stays above 50% since IPO. The retention rate for the year 2011 was 66.9% which i

  6. Slide 6: Tenant Mix

    Tenant Mix Trade Mix by Gross Rental Income Trade Mix by Gross Rentable Area  Our goal is to achieve a mix of multinational firms 12.4% 12.1% 0.1% 0.2% and small-to-medium sized 2.9% 3.6% enterprises to ensure a 33.8% 4.6% 6.2% 30.9% stable stream of rental 2.5% 2.5% 3.5% income. 3.0% 8.7% 11.1% S

  7. Slide 7: Occupancy Rate

    Occupancy Rate Sustainable Occupancy Rate Occupancy Rate as at the year end 2005– 2011 Occupancy rate was 98.8% 99.5% 98.8% 100.0% 98.4% 98.5% as at 31 December 2011. 97.4% 97.4% 98.0% 96.0% This was achieved through 94.0% 92.2% the management’s proactive 92.0% leasing approach and 90.0% 88.0% effe

  8. Slide 8: Portfolio Highlights

    Portfolio Highlights 3.6% Net Property Income 9.1% For the year ended 31 December 2011 The Metropolis Tower 32.7% Prosperity Millennia Plaza 12.8% Harbourfront Landmark  Attractive portfolio of properties Prosperity Place that combines both growth and Trendy Centre stability Prosperity Center 14.1%

  9. Slide 9: 2011 Final Results Highlights

    2011 Final Results Highlights

  10. Slide 10: Results Highlights

    Results Highlights For the year ended 31 December 2011 (Y-o-Y Comparisons) Sustainable Growth Distribution Per Unit HK$0.1202 ↑ 9.2%  DPU increased by 9.2% Property Valuation HK$6,991 mil ↑ 17.8% (as at 31 Dec 2011) Gearing Ratio 25.6% ↓ (4.5%)¹  Valuation increased by 17.8% and gearing ratio Reve

  11. Slide 11: Financial Review

    PROSPERITY REIT SERS Financial Review

  12. Slide 12: Consolidated Statement of Comprehensive Income

    Consolidated Statement of Comprehensive Income  Cost to revenue For the year ended 31 Dec 2011 FY11 FY10 (HK$’000) (HK$’000) ratio increased from 21.3% (31 Revenue 275,627 270,094 Dec 2010) to Total property operating expenses (64,115) (57,563) 23.3% (31 Dec Net property income 211,512 212,531 2011

  13. Slide 13: Debt Management

    Debt Management 2500 Total Debt: HK$ 2,200 mil ² Total Debt: Loan Facilities HK$ 1,900 mil ¹ 2000 Tenure 5 years 4 Interest on 80% of the term loan was hedged at 1500 1.335%3 excluding the HK$ Million interest spread of 81bps 1770 Term Loan $1,770 million 1000 1770 Interest on 20% of the Revolving L

  14. Slide 14: Growth Strategies

    PROSPERITY REIT SERS Growth Strategies

  15. Slide 15: 2011 Asset Enhancement

    2011 Asset Enhancement  Prosperity Millennia Plaza common washroom and corridor renovation  Prosperity Place lift controller system upgrades and lift car renovation  Trendy Centre main lobby renovation  Trendy Centre façade renovation  Prosperity Center main lobby and typical floor lobby renova

  16. Slide 16: 2012 Asset Enhancement

    2012 Asset Enhancement  Wholesale conversion at Prosperity Place from Industrial / Office use to commercial use  Upgrading the roof garden at Prosperity Place by changing portion of the current concrete wall into a tempered glass wall in order to enjoy a better view of the Victoria Harbour as well

  17. Slide 17: Tenant Relations

    Tenant Relations Excellent Tenant Relations 2 February 2012 Prosperity Place Lion Dance The courteous and professional property management staff of Goodwell-Prosperity Property Services Limited create a friendly and caring atmosphere for the tenants, thereby strengthen our tenant relationships. In F

  18. Slide 18: Key Facts

    PROSPERITY REIT SERS Key Facts

  19. Slide 19: Key Facts

    Key Facts Key Facts as at 31 December 2011 IPO 16 December 2005 8.0% at $1.50 as at 30 December Yield 2011 (based on DPU HK$0.1202 for FY11) Total number of units 1,360,442,529 Market Capitalization HK$2.04 billion Average daily 1.6 million units trading volume Free Float 79.8% Portfolio Size 1,215,

  20. Slide 20: Disclaimer

    Disclaimer ARA Asset This document has been prepared by ARA Asset Management (Prosperity) Limited, in its capacity as the Management manager (“REIT Manager”) of Prosperity Real Estate Investment Trust (“Prosperity REIT”) solely for use at the (Prosperity) Limited presentation to analysts in relation

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