Csi Properties Limited · HKEX:497
Csi Properties — Investor Presentation (June 2022)
28 slides from Csi Properties's investor presentation, June 2022
Slide 1: Investor Presentation FY 2022
Strictly confidential Investor Presentation FY 2022 June 2022 0
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is provided by CSI Properties Limited (the "Company") based on information available to it and does not constitute a recommendation regarding the securities of the Company and or its subsidiaries The information contained in this presentation
Slide 3: Table of Contents
TABLE OF CONTENTS Section 1 FY2022 Financial Highlights 4 Section 2 Key Strategies Highlights 20 2
Slide 4: Section 1 FY2022 Financial Highlights
Section 1 FY2022 Financial Highlights
Slide 5: FY 2022 Sales Highlights
Key themes FY 2022 Sales Highlights CSI made over HK$4.1 billion of sales and presales for FY 2022 to ensure good cashflow For the period Unrecognised ended Contracted Sales committed 31 Mar 2022 Up to 31 Mar 2022 % HK$'000 HK$'000 Group level Hong Kong residential properties Source: Company informa
Slide 6: FY 2022 Key Disposals
1 Strong recurrent income anchoring EBITDA FY 2022 Key Disposals CSI has recognized a few key disposals this fiscal year to ensure profitability Date completed Projects sold and booked for FY 2022 Location Apr 2021 – Mar 2022 41 units at Knightsbridge residential project in Beijing(CSI-65%) Beijing
Slide 7: FY 2022 Final Results Highlights
Prime Hong Kong properties focused strategy 2 FY 2022 Final Results Highlights FY2022 FY2021 % change (HK$m) (A) (B) (A/B-1) Gross revenue from property business 420 369 +14% Property sale 171 142 Rental income 249 227 Gross profit 31 236 - 87% Profit from property JV/associates 93 247 - 62% Other G
Slide 8: Strong balance sheet and ample liquidity
Visible disposal pipeline to further drive EBITDA – 3 annual target to sell c.HK$5-6 billion+ of prime assets FY 2022 Final Results Highlights (contd.) Strong balance sheet and ample liquidity to ensure financial stability FY 2022 FY 2021 (HK$m) 31st Mar 2022 31st Mar 2021 Properties & related asset
Slide 9: FY 2022 Key Credit Metrics
FY 2022 Key Credit Metrics Key credit metrics FY 2022 FY 2021 FY 2020 (HK$m) (HK$m) (HK$m) EBITDA1 / interest expenses2 2.4x 2.3x 6.3x Net debt / total assets (net gearing ratio) 27.0% 36.4% 31.6% Net debt / adjusted total assets3 22.1% 29.2% 25.5% Net debt plus commitment to JVs /adjusted total ass
Slide 10: Consistent Profitability and Growth
Consistent Profitability and Growth Revenue Gross profit and gross profit margin 4,000 3,710 64% 3,439 2,000 70% 212 60% 302 40% 3,000 1,500 50% (HKDm) (HKDm) 31% 40% 2,000 1,000 3,137 3,498 30% 1,498 1,000 500 1,065 8%* 20% 369 420 10% 227 249 236 31 0 142 171 0 0% FY2019 FY2020 FY2021 FY2022 FY201
Slide 11: FY 2022 Credit Highlights
FY 2022 Credit Highlights Debt / EBITDA1 EBITDA1 / net interest expense2 and cash3 / short-term debt 20 18.2x 8 15.9x 14.8x 6.3x 15 6 9.7x 10.3x (x) 10 8.4x (x) 4 3.0x 5.0x 2.3x 2.4x 5 3.8x 2 1.5x 1.5x 0.7x 0.4x 0 FY2019 FY2020 FY2021 FY2022 0 FY2019 FY2020 FY2021 FY2022 Total debt / EBITDA Net debt
Slide 12: Well managed balance sheet with prudent gearing
Well managed balance sheet to grow asset portfolio with prudent gearing Diversified Funding Sources and Well Managed Bank Borrowing • The Group maintained a conservative approach to its bank borrowings with well balanced and staggered maturities • Bank loans are mostly project loans (land plus const
Slide 13: Successful New Senior Bond Issue in July 2021
Visible disposal pipeline to further drive EBITDA – 3 annual target to sell c.HK$5-6 billion+ of prime assets Successful New Senior Bond Issue in July 2021 Reaffirms Debt Market as a Solid Financing Avenue • The Group successfully completed new 4 year senior bond issue as arranged by HSBC, JP Morgan
Slide 14: Conservative Capital Structure Backed by Prudent Financial Policies
Conservative Capital Structure Backed by Prudent Financial Policies • Prudent funding and treasury policy with regard to overall business operations Prudent funding and treasury policy • Majority HIBOR-based and effective interest rate ranges from 0.6% to 5.9% (inclusive of PRC projects) for the Gro
Slide 15: Pro-forma Balance Sheet Adjusted for Market Valuation
Pro-forma Balance Sheet Adjusted for Market Valuation as at 31 Mar 2022 Most Properties valued at historical cost basis on book with no revaluation surplus*. Even after revaluation adjustment, it still represents significant value in terms of a significant discount to pro forma adjusted NAV of HK$2.
Slide 16: Resourceful Pipeline to Ensure Profitability and Liquidity
Resourceful Pipeline to Ensure Profitability and Liquidity FY 2023 3 out of remaining 6 residential units at Dukes Place, 47 Perkins Road (60% stake) 50% of remaining 6 residential units at the “Infinity”, Peak Road (65% stake) Remaining upper 2 floors of LL Tower, Shelly Street (sold) 20% of remain
Slide 17: Novotel Hotel Kowloon Redevelopment
Novotel Hotel Kowloon Redevelopment Redevelopment to Mixed Commercial/ Residential Tower (CSI-51%) • Site was a 4-star international branded hotel with commercial podium in prime Nathan Road • JV partnership (51% CSI) with world-renowned pension fund MTR Eaton Hotel CPPIB Express Rail Link • Demolit
Slide 18: Kwu Tong Residential Development
Kwu Tong Residential Development Farmland conversion to Residential Development (CSI-40%) • CSI, together with another 60% JV partner, acquired this farmland site with future attributable GFA of c. one million sq. ft. for future residential development upon payment to HK government on land premium i
Slide 19: Yuen Long Industrial Building Redevelopment
Yuen Long Industrial Building Redevelopment Lai Sun Yuen Long Centre (Conversion to Residential) (CSI-50%) • CSI, together with another 50% JV partner, acquired this industrial building in 2017. for revitalization/ redevelopment • The partners have already received the necessary government approvals
Slide 20: Portfolio of Prime Properties in Premier Locations
Portfolio of Prime Properties in Premier Locations (as at 31 Mar 2022) Commercial properties Approximate Market Book 1, 2 1 gross area value value 1 sq.ft. (000s) (HK$m) (HK$m) G/F, 51 carparks of Capital Centre Wan Chai 17 640 150 No. 348 Nathan Road (Redevelopment) (CSI – 51%) at 24/9/2021 Jordan
Slide 21: Section 2 Management Strategies Highlights
Section 2 Management Strategies Highlights
Slide 22: Management Strategy Highlights
Management Strategy Highlights 1 Manage Disposal Pipeline to Recycle Capital & Crystalise Profit 2 High Quality Residential and Commercial Real Estate Portfolio 3 Maintain Prudent Financing for Strong Asset Coverage & Liquidity 21
Slide 23: Disposition Pipeline to Recycle Capital & Crystalize Profit
1 Disposition Pipeline to Recycle Capital & Crystalize Profit • Management prioritizes annual asset sales to recycle capital & crystalize profit • Strict and prudent principle of balanced asset sale first before making new acquisitions to ride out the current market • Good cash recycling with realiz
Slide 24: High Quality Residential Portfolio with Massive Value to be Realized
2 High Quality Residential Portfolio with Massive Value to be Realized • Prime luxury residential portfolio in Hong Kong and China • Additional strong contributions will come from presales of MTR mass residential projects including Wong Chuk Hang and Yau Tong within the next few years Hong Kong —— H
Slide 25: High Quality Commercial Portfolio in Central
Visible disposal pipeline to further drive EBITDA – 3 annual target to sell c.HK$5-6 billion+ of prime assets 2 High Quality Commercial Portfolio in Central • Strong portfolio with steady rental income and material valuation upside upon future sale FOCO, 48 Cochrane St. c.32k sqft GFA Comm’l Develop
Slide 26: High Quality Commercial Portfolio
2 High Quality Commercial Portfolio Strong portfolio with steady rental income and material valuation upside • Hong Kong —— Core Kowloon (TST/Jordan) and Kowloon East Novotel Redevelopment, Hong Kong Health 348 Nathan Rd, Check Tower Jordan Harbourside HQ (previously Everest c. 254K sqft Kowloon Eas
Slide 27: Prudent Financing with Strong Asset Coverage & Liquidity
3 Prudent Financing with Strong Asset Coverage & Liquidity • Strong cash and investment balances of over HK$4.1 billion together with solid commercial bank support via various syndicated loans and credit lines available at 31 Mar 2022 • In July 2021, CSI successfully completed a new 4-year US$300m s
Slide 28: Q&A
Q&A 20132018 & 2014 Best HK Mid-Cap Company