Hang Lung Properties Limited · HKEX:101
Hang Lung Properties — FY2024 Earnings Presentation
59 slides from Hang Lung Properties's earnings presentation, January 2025
Slide 1: 2024 Annual Results Presentation
Westlake 66, Hangzhou Opening in 2025 onwards 2024 Annual Results Presentation January 2025
Slide 2: Contents
Contents 3 FY2024 Annual Results Highlights Please scan or click on the QR codes to view 16 Development Highlights 2024 Annual Results Investor Presentation 23 CRM Highlights 27 ESG Highlights 41 Mainland China Portfolio 45 Hong Kong Portfolio 2024 Annual Results Announcement 50 Appendix 51 HLP – Ma
Slide 3: FY2024 Annual Results Highlights
FY2024 Annual Results Highlights Hang Lung Properties (101.HK) Operating Underlying HLP – Dividends per share Revenue profit /(loss) profit /(loss) 2024 YoY 2024 YoY 2024 YoY Total DPS (HK$mn) change (%) (HK$mn) change (%) (HK$mn) change (%) HK52cents Rental 9,515 6% 6,763 9% 3,422 18% 59 60 60 6
Slide 4: Revenue Contribution by Segments
Revenue Contribution by Segments HLP revenue contribution by segments (HK$mn) (FY24 RMB/HKD: -1.5% YoY) Revenue (HK$mn) 12,000 FY24 Mainland Rental: RMB5,900mn / HK$6,466mn 10,000 Accounts for 68% of total rental - 4% YoY in RMB / - 5% YoY in HKD 8,000 FY24 HK Rental: HK$3,049mn Accounts for 32% of
Slide 5: Mainland China Rental Revenue
Mainland China Rental Revenue HLP Mainland China overall rental revenue (RMB mn) and YoY change (%) Rental revenue YoY change (RMB mn) FY24 Mainland rental revenue: (%) 7,000 RMB5,900mn (- 4% YoY) 25% 1H: 2H: 6,000 - 3% YoY - 4% YoY 20% 19% 19% 5,000 18% 19% 15% 4,000 19% 10% 3,000 82% 81% 81% 5% 2,
Slide 6: Mainland China Retail Rental Revenue
Mainland China Retail Rental Revenue HLP Mainland China retail rental revenue (RMB mn) and YoY change (%) Rental revenue YoY change (RMB mn) FY24 Mainland retail rental revenue: (%) 6,000 RMB4,805mn (- 3% YoY) 30% 1H: 2H: - 3% YoY - 3% YoY 25% 5,000 20% 4,000 15% 3,000 10% 2,000 5% 1,000 0% 0 -5% FY
Slide 7: Tenant Sales YoY Change in Mainland China Retail Portfolio
Tenant Sales YoY Change (%) in Mainland China Retail Portfolio YoY change (in RMB) 10% 7% Sub-luxury malls 5% 3% FY24: +2% YoY -1% 0% -2% Overall tenant sales -5% -7% FY24: -14% YoY -5% -10% Luxury malls outside Shanghai -10% -12% -14% -11% FY24: -9% YoY -14% -15% Luxury malls in Shanghai -19% -14%
Slide 8: Navigating Market Consolidation in Mainland
Navigating Market Consolidation in Mainland • Occupancy rate increased for most of our malls in Mainland during FY24, with net LFA expansion by various trade categories • Amid market consolidation, Hang Lung remains the top choice by the international brands, for store space expansion, new store ope
Slide 9: Navigating Market Consolidation in Mainland
Navigating Market Consolidation in Mainland Examples of LFA expansion in our malls, new store openings, and store consolidation to our malls, by international brands since FY22 Plaza 66 Center 66 Olympia 66 (Store expansion) (Store expansion) (New store opening) (Store expansion) (Store consolidated
Slide 10: Mainland China Office Rental Revenue
Mainland China Office Rental Revenue HLP Mainland China office rental revenue (RMB mn) and YoY change (%) Rental revenue YoY change (RMB mn) (%) FY24 Mainland office rental revenue: 1,500 RMB1,095mn (-6% YoY) 20% 1H: 2H: 15% - 4% YoY - 7% YoY 1,000 10% 5% 500 0% -5% 0 -10% FY20 FY21 FY22 FY23 FY24 M
Slide 11: Hong Kong Rental Revenue
Hong Kong Rental Revenue HLP HK rental revenue (HK$mn) and YoY change (%) YoY change Rental revenue (HK$mn) (%) FY24 HK rental revenue: 4,000 HK$3,049mn (-9% YoY) 4% 1H: 2H: 7% 7% 7% - 8% YoY -10% YoY 8% 3,000 7% 0% 34% 34% 33% 33% 33% 2,000 -4% 1,000 59% 59% 59% 60% -8% 60% 0 -12% FY20 FY21 FY22 FY
Slide 12: Property Sales in Hong Kong and Mainland China in FY24
Property Sales in Hong Kong and Mainland China in FY24 Name of project FY24 sales Contracted sales yet Contracted sales amount of No. of HK$158mn to be revenue to be recognized unsold units recognized upon sale at Dec 31, 2024 completion Hong Kong The Aperture $1,052mn (120 units) $132mn (17 units)
Slide 13: Financial Management
Financial Management Financing highlights: • A HK$10.0bn five-year syndicated loan facilities was signed in Jan 2025 ❑ Support from a consortium of 10+ leading international, Chinese and local banks • RMB4.4bn of offshore fixed rate CNH facilities and bonds had been issued in 2024 (vs. RMB1.0bn in 2
Slide 14: Financial Management
Financial Management • Net debt increased by HK$1.7bn to HK$47.1bn as at end-24, mainly due to HK$4.1bn CAPEX incurred during the year, partially offset by the various cash preservation measures. As a result, net gearing ratio stood at 33.4% as at end-24 • Gross interest expense +8% YoY, at a stable
Slide 15: Key Milestones on Sustainability in 2024
Key Milestones on Sustainability in 2024 • We are on track towards achieving our 2025 targets (set in 2021) Employee Wellbeing Real Estate Decarbonization Transforming our workspaces with sustainability and Plaza 66 pavilion extension in Shanghai is the first wellbeing initiatives. Completed the RES
Slide 16: Development Highlights
DEVELOPMENT HIGHLIGHTS Hang Lung Properties Limited 16
Slide 17: Mainland Property Portfolio
Mainland Property Portfolio Upcoming projects completion pipeline • 11 projects across 9 Mainland cities with the completion Westlake 66, Hangzhou of Westlake 66 in Hangzhou in 2025 GFA: 4.2mn sq ft Shenyang Forum 66 (note 2) 2025+ Tianjin Riverside 66 Palace 66 Center 66 Phase 2, Wuxi Dalian Jinan
Slide 18: Mainland China Projects Under Development
Mainland China Projects Under Development Hangzhou Wuxi Westlake 66 Center 66 Location Bai Jing Fang, Renmin Zhong Road & Gongshu District Jiankang Road, Liangxi District Land use right signed May 2018 Dec 2006 / May 2009 Mall, Office, Hotel, Usage Mall, Office, Hotel Apartments for Sale All-in inve
Slide 19: Westlake 66 in Hangzhou
Westlake 66 in Hangzhou Tower A Expected opening 2Q 2025 onwards Tower D Gongshu Tower E District Hotel Tower C Tower B Location Hangzhou’s busiest commercial street Retail podium An integrated high-end commercial Usage development comprising a retail Artist’s impression podium, five Grade A office
Slide 20: Westlake 66 in Hangzhou
Westlake 66 in Hangzhou Office Towers C, D, E: 2Q 2025 Expected opening Towers A, B: 2H 2025 Towers C, D, E: 37% committed Status Towers A, B: Started negotiations with prospective tenants Retail Expected opening 1H 2026 Status 71% committed Retail podium: Artist’s impression 7% 17% Fashion & access
Slide 21: Mainland China Serviced Apartments
Mainland China Serviced Apartments Wuhan Kunming Wuxi Residences (28-57/F) Heartland Residences Grand Hyatt Residences Kunming Center Residences Qiaokou District Panlong District Liangxi District Total: 492 units Total: 254 apartments including Total: 573 units (including 60 units classified as IP 3
Slide 22: Hong Kong Residential Portfolio at Prime Locations
Hong Kong Residential Portfolio at Prime Locations For Sale For Sale 23-39 Blue Pool Road The Aperture (Completed) (Completed) Kowloon Bay station o 7 unsold houses o 157 unsold units (as of Dec 31, 2024) (as of Dec 31, 2024) For Sale 8-12A Wilson Road (Under planning) o Total GFA of approx. For Sal
Slide 23: CRM Highlights
CRM HIGHLIGHTS Build Hang Lung Branded Experience EXPERIENCE EXCLUSIVENESS ENGAGEMENT Hang Lung Properties Limited 23
Slide 24: CRM Highlights
CRM Highlights House 66 hello Total valid members Member sales Total valid members Member sales (Up to Dec 2024) (Jan – Dec 2024) (Up to Dec 2024) (Jan – Dec 2024) +27% YoY -10% YoY +15% YoY +8% YoY New members Sales Penetration New members Sales Penetration (Jan – Dec 2024) (Jan – Dec 2024) (Jan –
Slide 25: HOUSE – Build Hang Lung Branded Experience
HOUSE 66 – Build Hang Lung Branded Experience Spanning 10 Hang Lung projects in eight cities across Mainland China EXPERIENCE EXCLUSIVENESS Exclusive Privilege Highlights • VIP lounge • Valet parking • Hands-free service • Dedicated parking space 520 SIGNATURE EVENT 爱神夏至 Guerlain skincare salon at F
Slide 26: hello – Build Hang Lung Branded Experience
hello – Build Hang Lung Branded Experience Offering bespoke shopping experiences to customers in Hong Kong MEMBER ENGAGEMENT PROGRAM OFFERING • Branding & “OOTD”-themed campaign for Fashion Walk • Weekly hello Thursday limited offers • Sales promotions & exclusive privileges with key tenants adiClub
Slide 27: ESG Highlights
ESG HIGHLIGHTS A qr code with black squares Description automatically generated Sustainability ESG full report 2023 presentation (Jan 2025) Hang Lung Properties Limited 27
Slide 28: Upcoming Key Initiatives in 2025
Upcoming Key Initiatives in 2025 February 2025 March 2025 April 2025 December 2025 Publish Net Zero Roadmap Event for Changemakers • Examines scenarios on Program Tenants Announce refreshed our journey to net zero Publish Sustainability • Recognize tenant 2030 Sustainability emissions by 2050 Report
Slide 29: Latest Ratings & Awards
Latest Ratings & Awards CSA Score: 64 “AA” rating since 2020 “Low” ESG risk rating S&P Global Sustainability Yearbook 2024 Index component since inception in 2010 (Global and China edition) member ESG score: 3.6 4-star performance rating “AA” rating CITI Score: 28.8 Top 20 in HKBSI (standing investm
Slide 30: Board Engagement and Diversity
Board Engagement and Diversity Highly engaged (as of December 31, 2024) ▪ 6 regular Board meetings/year (100% attendance) ▪ 4 Audit Committee meetings/year (100% attendance) ▪ 4 meetings of Audit Committee members with external auditor without the presence of management Board Diversity of Hang Lung
Slide 31: Five of our Mainland Properties are Powered by Renewable Energy
Five of our Mainland Properties are Powered by Renewable Energy Half of our operating properties in Mainland have been powered by renewable energy (RE), covering both landlord and tenant consumption, through power purchase agreements since April 1, 2024. December 2021 • Support government’s 2030 and
Slide 32: Plaza Pavilion Extension Using Nearly 100% Low Carbon Emissions Steel
Plaza 66 Pavilion Extension is the First Mainland Project Using Nearly 100% Low Carbon Emissions Steel in its Building Structure Carbon emissions from building materials represent real estate sector’s largest challenge for emissions reduction. We therefore focus on engaging suppliers to provide lowe
Slide 33: Green Building Certifications
Green Building Certifications Green Building Certifications ~80% CFA certified to LEED / BEAM Plus Gold or above Including: • Shenyang: Palace 66 & Forum 66 • Dalian: Olympia 66 • Tianjin: Riverside 66 • Jinan: Parc 66 • Shanghai: Grand Gateway 66 & Plaza 66 • Wuxi: Center 66 • Wuhan: Heartland 66 •
Slide 34: Health, Safety & Wellness
Health, Safety & Wellness • Nearly 84% of the total construction floor area (for both existing properties and projects under development) is certified with or has applied for WELL and WELL Health and Safety Rating • The Company has obtained WELL HSR for additional 13 properties in Hong Kong Certifie
Slide 35: Embedded Sustainability in Our Office Rejuvenation Project in Hong Kong
Embedded Sustainability in Our Office Rejuvenation Project in Hong Kong Reclaimed wood from Gala Place’s rooftop We prioritizes We collaborated with Sustainable Office materials with Solutions and Crossroads Foundation Over 4,400 Nearly recycled, reused to implement a holistic resource office resour
Slide 36: Sustainability Partnerships with Tenants
Sustainability Partnerships with Tenants Three-Year Sustainability Partnership with LVMH Changemakers Program for all tenants Image • Launched in Oct 2022 • Launched in Dec 2023 following the partnership with LVMH • Launched Common Charter in 2023 and 2024 • Applicable to all types of tenants in Hon
Slide 37: Sustainable Finance
Sustainable Finance Sustainable finance reached 60% of HLP’s total debts and available facilities in 2024 Sustainable Finance 60% • Accounted for 60% of total debts & available 55% facilities (as of December 31, 2024, for HLP) 60% • 2024 KPI: Achieve 60% of the total debts & available 50% 46% facili
Slide 38: Community Investment
Community Investment Youth Development & Education Hang Lung Hang Lung As One Mathematics Awards Volunteer Team (since 2004) Elderly Services Volunteer Service • Reaffirms HL’s commitment to promoting sustainable growth and enhancing community wellbeing "Love·No·Limit" The Hang Lung Scholarship and
Slide 39: Community Investment
Community Community Investment Investment Honorary Chair Mr. Ronnie Chan awarded Honorary Chair Mr. Ronnie Chan awarded the 2018 the Grand Bauhinia Medal (GBM), the highest Dwight D. Eisenhower Global Leadership Award honor bestowed, by the Government of the Hong Kong by the Business Council for Int
Slide 40: Community Investment
Community Community Investment Investment Rebuilding of Jianfu Palace Garden & Hang Lung Center for Real Estate, The Hall of Rectitude Complex in Beijing Tsinghua University, Beijing • Projects funded by the China Heritage Fund, a non-profit • The Hang Lung Center for Real Estate serves as an organi
Slide 41: Mainland China Portfolio
MAINLAND CHINA PORTFOLIO Hang Lung Properties Limited 41
Slide 42: Mainland China Retail Portfolio
Mainland China Retail Portfolio Shanghai Shanghai Shenyang Wuxi Dalian Plaza 66 Grand Gateway 66 Forum 66 Center 66 Olympia 66 Tenant Sales 22% 12% 25% 3% 3% (YoY change %) Mall 99% 99% 87% 99% 94% Occupancy (1% vs end-23) (same vs end-23) (6% vs end-23) (1% vs end-23) (4% vs end-23) Kunmin
Slide 43: Mainland China Office Portfolio
Mainland China Office Portfolio Shanghai Shenyang Wuxi Kunming Wuhan Plaza 66 Forum 66 Center 66 Spring City 66 Heartland 66 Office 87% 90% 88% 86% 66% Occupancy (9% vs end-23) (1% vs end-23) (3% vs end-23) (2% vs end-23) (10% vs end-23) Other AEI completed in Conrad Shenyang HANGOUT Modular of
Slide 44: Mainland China Hotel Portfolio
Mainland China Hotel Portfolio Opened in Targeted opening 2019 August 2024 2H25 2H26 Conrad Shenyang Grand Hyatt Kunming Curio Collection by Mandarin Oriental (at Forum 66) (at Spring City 66) Hilton Hangzhou (at Center 66) (at Westlake 66) Note: The photographs, images, drawings or sketches shown i
Slide 45: Hong Kong Portfolio
HONG KONG PORTFOLIO Hang Lung Properties Limited 45
Slide 46: Hong Kong Rental Performance
Hong Kong Rental Performance Hong Kong rental revenue (HK$mn) Hong Kong occupancy rate (%) Rental revenue FY24: Occupancy (HK$mn) rate (%) HK$3,049mn 4,000 95% 100% Resi. & S.A.: 7% of total Resi. & S.A.: 88% 3,000 7% of total 80% Office: 88% 33% of total Office: 60% 2,000 33% of total 40% Retail: 1
Slide 47: Hong Kong Investment Properties
Hong Kong Investment Properties Central Portfolio Peak Galleria • Comprising 4 office buildings with a diversified tenant profile • A tourist landmark, with pet-friendly • Form a thriving fine-dining hub in Central features to attract local pet lovers Standard 1 Duddell Chartered Bank Building Stree
Slide 48: Hong Kong Investment Properties
Hong Kong Investment Properties Causeway Bay Portfolio Mongkok Portfolio • An elite shopping destination featuring numerous • Continued to solidify the area’s position as the place internationally renowned fashion, beauty, and lifestyle brands “Where Trends Meet” Gala Fashion Place Walk Hang Lung Gr
Slide 49: Hong Kong Investment Properties
Hong Kong Investment Properties Hong Kong East Portfolio Amoy Plaza • Comprises Kornhill Plaza, Kornhill Apartments, and 228 Electric Road • A one-stop community hub in Kowloon East, comprising extensive casual dining options and business trades like grocery stores, education providers, and entertai
Slide 50: Appendix
APPENDIX Hang Lung Properties Limited 50
Slide 51: HLP - Mainland China Rental Revenue Breakdown
HLP - Mainland China Rental Revenue Breakdown Year ended December 31, 2024 Luxury Malls Rental Rental Revenue (RMB mn) Revenue (YoY change) Name of project City Mall Office Total Plaza 66 mall 6% Luxury malls Grand Gateway 66 mall 3% Plaza 66 Shanghai 1,648 606 2,254 Forum 66 mall 16% Grand Ga
Slide 52: Hang Lung Properties – Financial Highlights
Hang Lung Properties – Financial Highlights 1-12/2024 1-12/2023 Property Property Property Property Hotels Total Leasing Sales Hotels Total (HK$mn) Leasing Sales Revenue 9,515 1,538 189 11,242 10,162 - 154 10,316 - Mainland China 6,466 56 189 6,711 6,813 - 154 6,967 - Hong Kong 3,049 1,482 - 4,531 3
Slide 53: Hang Lung Properties – Financial Position
Hang Lung Properties – Financial Position (HK$mn) 31/12/2024 31/12/2023 Investment Properties 166,519 169,046 - Mainland China 104,043 107,219 - Hong Kong 62,476 61,827 Investment Properties under development 24,001 23,610 Properties for sale 13,489 14,223 Cash and bank deposits 10,303 5,352 Total B
Slide 54: Hang Lung Properties – Gross and Net Interest Expense
Hang Lung Properties – Gross and Net Interest Expense 5.00 40.0% 33.4% 35.0% 31.9% 4.00 28.1% 30.0% 24.4% 25.0% 21.3% 3.00 17.8% 20.0% 2.1 2.00 2.0 15.0% 1.5 1.5 1.5 1.5 1.2 1.3 10.0% 1.00 1.0 1.0 1.4 1.3 5.0% 0.7 0.9 0.05 0.5 0.5 - 0.2 0.0% 2019 2020 2021 2022 2023 2024 Finance costs charged to Pro
Slide 55: Hang Lung Group – Financial Highlights
Hang Lung Group – Financial Highlights 1-12/2024 1-12/2023 Property Property Property Property Hotels Total Leasing Sales Hotels Total (HK$mn) Leasing Sales Revenue 10,033 1,538 189 11,760 10,725 2 154 10,881 - Mainland China 6,851 56 189 7,096 7,245 - 154 7,399 - Hong Kong 3,182 1,482 - 4,664 3,480
Slide 56: Hang Lung Group – Financial Position
Hang Lung Group – Financial Position (HK$mn) 31/12/2024 31/12/2023 Investment Properties 174,558 177,458 - Mainland China 110,280 113,835 - Hong Kong 64,278 63,623 Investment Properties under development 24,001 23,610 Properties for sale 13,510 14,244 Cash and bank deposits 10,817 6,343 Total Borrow
Slide 57: Investment Property Portfolio: HLG
Investment Property Portfolio: HLG Note: Properties held via HLP are excluded from this session 9 Wing Hong Street Luen Cheong Can Centre Tai Hing Gardens Grand Gateway 66 Cheung Sha Wan, HK Tuen Mun, HK Tuen Mun, HK Puxi, Shanghai • Office • Office • Retail portion • Office Tower I & Serviced (Note
Slide 58: Grand Gateway 66, Above Xujiahui Subway Station, Puxi, Shanghai
Grand Gateway 66, Above Xujiahui Subway Station, Puxi, Shanghai Rental Revenue Occupancy (Year ended Dec 31, 2024) (at Dec 31, 2024) Office Tower I RMB 225 mn 91% 6% YoY Residential & Serviced RMB 127 mn 67% Apartments 14% YoY Mall (held via HLP) RMB 1,172 mn 99% 3% YoY To be converted into Kimpt
Slide 59: Thank You
THANK YOU 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 for accuracy, timeli