Kerry Properties Limited · HKEX:683
Kerry Properties — H1 2019 Earnings Presentation
37 slides from Kerry Properties's earnings presentation, Aug 20, 2019
Slide 1: 1H 2019 Results Presentation
1 20 AUGUST 2019 Stock Code: 683 (Incorporated in Bermuda with limited liability) 1
Slide 2: Agenda
2 2 1 1H 2019 RESULTS HIGHLIGHTS 2 DEVELOPMENT PROPERTIES 3 INVESTMENT PROPERTIES 4 FINANCIAL POSITION 5 APPENDIX
Slide 3: 1H 2019 Results Highlights
3 3 1 1H 2019 RESULTS HIGHLIGHTS
Slide 4: 1H 2019 Results Highlights
1H 2019 RESULTS HIGHLIGHTS 4 • Total turnover and gross profit in 1H 2019 increased 6% YoY and 17% YoY, to $11.2B and $5.0B, respectively, with the majority of this increase contributed by HK property sales recognition. • Gross profit margin for property sales in HK and Mainland increased to 47% (1H
Slide 5: 2019 Newly Acquired Land
2019 NEWLY ACQUIRED LAND 5 Hong Kong Mainland Sha Tin Chai Wan Total Hangzhou Transaction date May 2019 Transaction date June 2019 Total consideration (Rmb) 6.8 B Total consideration (HK$) $1.3 B $ 2.3 B $ 3.6 B AV (Rmb/s.m) 29,000 AV (HK$/psf) 3,270 4,370 $ 3,720 Site area (s.m) 98,000 Site area (s
Slide 6: 2019 Newly Acquired Land (Con't)
2019 NEWLY ACQUIRED LAND (CON’T) 6 Singapore Pasir Ris Central Transaction Date March 2019 Total Consideration S$ 699 M AV (psf) S$ 841 Site Area (s.f) 409,000 Plot Ratio 2.5 Plot GFA (s.f) 1,023,000 KPL’s interest 30%
Slide 7: Financial Summary
FINANCIAL SUMMARY 7 HK$ million Note 1H 2019 1H 2018 Change Turnover 11,225 10,560 +6% Gross profit 4,995 4,262 +17% Share of results of associates and joint ventures 616 806 -24% Underlying profit ( before provision ) 3,143 2,727 +15% Provision for impairment loss of property under development N1 -
Slide 8: Operating Segments
OPERATING SEGMENTS 8 HK$ million Turnover Gross Profit Gross Margin * Recurrent revenue Note 1H 2019 1H 2018 Change 1H 2019 1H 2018 Change 1H 2019 1H 2018 Property sales 7,832 7,053 +11% 2,926 2,104 +39% 37% 30% HK N1 2,717 1,668 +63% 1,281 505 +154% 47% 30% Mainland N2 5,115 5,385 -5% 1,645 1,599 +
Slide 9: Development Properties
(2. DEVELOPMENT PROPERTIES >» KERRY PROPERTIES LIMITED - INTERIM RESULTS 2019
Slide 10: Development Properties Overview
DEVELOPMENT PROPERTIES OVERVIEW 10 Contracted Sales 1H 2019 1H 2018 HK$ HK Mainland HK Contracted Sales $5.2B $5.2B 7.1B Saleable Area Sold Approx. 159,000 s.f Approx. 194,000 s.f 6.5B -8% Recognized Sales 1.9B Subsidiaries $2.7B $1.7B 1.3B -32% Recognized Projects Mont Rouge ( launched in Mantin He
Slide 11: Development Properties – HK New Launch Mont Rouge
DEVELOPMENT PROPERTIES – HK NEW LAUNCH 11 MONT ROUGE Tower 2, Penthouse Sold: May 2019 GFA: 3,017 s.f ASP: $101,800 psf Cost: $307M House 3 Sold: April 2019 GFA: 2,846 s.f ASP: $82,600 psf Cost: $228M House 5 Sold: April 2019 GFA: 2,846 s.f ASP: $82,600 psf Cost: $228M
Slide 12: Development Properties – HK Projects on Sale
DEVELOPMENT PROPERTIES – HK PROJECTS ON SALE 12 Accumulative sales performance up to 31/7/2019: MONT ROUGE • Total units: 45 • 1st launch in 4/2019 • Construction completed • Contracted sales $0.8B • ASP: $89,000 psf MANTIN HEIGHTS THE BLOOMSWAY • Total units: 1,429 • Total units: 1,100 • 1st launch
Slide 13: Development Properties – Mainland
DEVELOPMENT PROPERTIES – MAINLAND 13 Major projects on sale: Mainland Contracted ASP Rmb psm 1H 2019 +24% YoY Hangzhou Shenyang Castalia Court Arcadia Height 40,800 32,800 26,800 Hangzhou Qinhuangdo Lake Grandeur Habitat 17,800 15,100 Tianjin Nanchang Arcadia Court Arcadia Court 1H 2015 1H 2016 1H 2
Slide 14: Investment Properties
14 14 3 INVESTMENT PROPERTIES
Slide 15: Investment Properties – Overview
INVESTMENT PROPERTIES – OVERVIEW 15 Total Property Rental Mainland Eight Mixed-Use Properties in Major Cities (includes attributable rental income from associates) HK$ million HK Mainland Shanghai Beijing Shenzhen Pudong 1998 2008 2011 2,652M 2,648M -0.2% Shanghai Tianjin Hangzhou JingAn 2015 2016 2
Slide 16: Investment Properties – Mainland Completed Properties
INVESTMENT PROPERTIES – MAINLAND COMPLETED PROPERTIES 16 Mainland Property Rental • GFA(100%)* 1.5M s.f Beijing • Occupancy (@ 30 Jun 2019) * 95% Gross rental revenue: HK$2.0B Kerry Centre • Yield on Cost * 22% (includes attributable rental income from associates) • Completion 1998 • KPL’s interest
Slide 17: Investment Properties – Shenyang Kerry Centre
INVESTMENT PROPERTIES – SHENYANG KERRY CENTRE 17 OFFICE (PH 1) OFFICE (PH 2) Completed in 2014 Completed in 2H 2018 HOTEL (PH 1) Completed in 2014 SHOPPING MALL (PH2) Completed in 2H 2018 PHASE 3 Project Summary Ph 1 Ph 2 Ph 3 Total GFA (s.m) 329,800 233,400 458,800 Lying at the core of the city’s l
Slide 18: Investment Properties – Under Development Qianhai Kerry Centre
INVESTMENT PROPERTIES – UNDER DEVELOPMENT 18 QIANHAI KERRY CENTRE Site #3 T2 Office T1 Office T8 Office T6 Apartment Hotel T5 Apartment T9 T3 Apartment Project Summary Site #1 Site #2 Site#3 T7 Office (Bank of East Asia) Land acquisition Jan-2015 Dec-2016 Dec-2018 No. of Towers 5 (T1 T2 T3 T5 T6) 3
Slide 19: Investment Properties – HK
INVESTMENT PROPERTIES – HK 19 HK Property Rental Occupancy at 30 Jun 2019 : 100% Gross rental revenue: HK$654M Commercial Megabox continues to achieve positive rental (includes attributable rental income from associates) 1.2M s.f reversion with an average unit rent of $32 psf Attributable GFA 4.
Slide 20: Financial Position
“4 FINANCIAL POSITION >» KERRY PROPERTIES LIMITED - INTERIM RESULTS 2019
Slide 21: Financial Position
FINANCIAL POSITION 21 As at 30 As at 31 Debt Maturity Profile HK$ million Jun 2019 Dec 2018 Change Total Debt : $38,309M HK$ million Total Debt 38,309 33,111 +16% Cash and bank Fixed Rate Bonds 14,193 14,384 -1% balance Bank Loans Net Debt 24,116 18,727 +29% Undrawn Bank Loan 10,941 12,325 -11% Faci
Slide 22: Appendix
22 22 5 APPENDIX A. 1H 2019 Contracted Sales - HK B. 1H 2019 Contracted Sales - Mainland C. Major Properties Under Development - HK D. Major Properties Under Development - Mainland E. Mainland Major Completed Mixed-Use Properties F. Land Bank – Overview / HK / Mainland
Slide 23: A. 1H 2019 Contracted Sales – HK
A. 1H 2019 CONTRACTED SALES – HK 23 Projects on sale KPL’s Total Units Accumulative Inventory ASP achieved Sales interest project sold in units sold as at as at 30 Jun in 1H 2019 proceeds in (%) units 1H 2019 1H 2019 2019 (units) HK$ psf 1H 2019^ HK$ bn MAJOR PROJECTS 1 Mantin Heights 100% 1,429 71
Slide 24: B. 1H 2019 Contracted Sales – Mainland
B. 1H 2019 CONTRACTED SALES – MAINLAND 24 Major projects on sale Product Contracted GFA Sold ASP KPL’s (100% subsidiaries + KPL’s interest type sales ^ s.m achieved interest for associates) RMB’M in 1H 2019 RMB psm 1 Lake Grandeur, Hangzhou 逸庐 R 231 2,292 97,700 75% 2 Qianhai 1 前海 1 R 196 1,859 93,9
Slide 25: C. Major Properties Under Development – HK
C. MAJOR PROPERTIES UNDER DEVELOPMENT – HK 25 Name Location Type Stage of Completion Expected KPL’s Buildable Completion Interest GFA* (%) (s.f.) FOR SALE PROPERTIES 1 Beacon Hill Project Beacon Hill R Superstructure work 2020 100 342,769 in progress 2 Wong Chuk Hang Station Wong Chuk R Foundation w
Slide 26: D. Major Properties Under Development – Mainland
D. MAJOR PROPERTIES UNDER DEVELOPMENT – MAINLAND 26 Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributa (%) ble GFA (s.f.) MAJOR MIXED-USE DEVELOPMENT 1 Shenyang Kerry Centre Shenyang R/C Interior decoration work in progress 2020 60 248,206 Phase II Arcadia Heig
Slide 27: D. Major Properties Under Development – Mainland (Con't)
D. MAJOR PROPERTIES UNDER DEVELOPMENT – MAINLAND (CON’T 27 ) Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) OTHER INVESTMENT PROPERTIES (CON’T) 8 Kunming Complex Kunming R/H Earthwork and lateral 2021 55 382,925 Development support work in
Slide 28: E. Mainland Major Completed Mixed-Use Properties
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES 28 30 Jun 2019 GFA & Occupancy Attri GFA Beijing Shanghai Shenzhen Hangzhou Shenyang Tianjin Jinan Total Occupancy (000s s.f.) Office 711 1,391 1,552 102 354 - 195 4,305 87% Commercial 98 1,096 104 798 486 435 34 3,051 92% Apartment 277 774 - - - - -
Slide 29: E. Mainland Major Completed Mixed-Use Properties (Con't)
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T)29 Occupancy rates (by segment) As at 30 Jun 2019 As at 31 Dec 2018 Serviced Apartment 95% 93% Office 96% 99% 1 Beijing Kerry Centre Commercial 93% 85% Average 95% 96% Serviced Apartment 95% 87% Office 100% 99% 2 Jing An Kerry Centre Ph 1 Comme
Slide 30: E. Mainland Major Completed Mixed-Use Properties
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES 30 Jing An Kerry Centre, Shanghai Puxi GFA ( million s.f.) 3.7M s.f Commercial 1.0 • Located in the heart of Shanghai’s Nanjing Road business Office 1.7 district Apartment 0.2 • A pre-eminent shopping venue and exclusive office Hotel 0.8 address in Sh
Slide 31: E. Mainland Major Completed Mixed-Use Properties (Con't)
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T)31 Beijing Kerry Centre 2.2M s.f GFA ( million s.f.) Commercial 0.1 • Continues to be an iconic presence at the heart of Beijing Office 1.0 • Located in the Chaoyang district, the city's commercial Apartment 0.4 and financial center and within
Slide 32: E. Mainland Major Completed Mixed-Use Properties (Con't)
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T)32 Tianjin Kerry Centre Ph 1 1.7M s.f GFA ( million s.f.) Commercial 0.9 • Mixed-use development located on the east bank of the Hotel 0.8 Haihe CBD in Hedong District Total 1.7 • Phase I of the development includes a hotel, upscale residences
Slide 33: E. Mainland Major Completed Mixed-Use Properties (Con't)
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T)33 Shenyang Kerry Centre Ph 1 & 2 2.1M s.f GFA ( million s.f.) Commercial 0.8 • Mixed-use development located at the east side of Office 0.6 Qingnian Street Hotel 0.7 • Include a hotel, offices, a shopping mall and residences Total 2.1 • Phase
Slide 34: F. Land Bank – Overview
F. LAND BANK – OVERVIEW 34 Total Property Portfolio Attributable GFA: Approx. 48.1M s.f. (as of 30 Jun 2019) Held for sale 4% Hotel Macau 10% 4% PUD 56% Overall – Overseas 9% Overall – Mainland 76% By Type By Location HK 11% Completed IP 30% Commercial 14% Hotel 4% Macau 7% Overseas 7% PUD – Office
Slide 35: F. Land Bank – HK
F. LAND BANK – HK 35 HK Land bank Attributable GFA (‘000 s.f) Hotel Apartment 1% 15% Completed Investment Properties 4,129 Warehouse 26% Warehouse 1,266 Office 15% 5.5M s.f in Commercial 1,219 attributable Office 841 GFA Apartment 803 Properties under development & Commercial 884 Residential 22% oth
Slide 36: F. Land Bank – Mainland
F. LAND BANK – MAINLAND 36 Mainland Land bank Attributable GFA (‘000 s.f) Hotel 14% Commercial 17% Completed Investment Properties 8,407 Commercial 3,051 36.4M s.f Residential Office 4,305 attributable 34% GFA Apartment 1,051 Office 32% Properties under development 22,183 Apartment Completed propert
Slide 37: Disclaimer
DISCLAIMER 37 The information in this presentation is for personal, non-commercial reference and general information purposes only and should not be relied upon for investment decision purposes. The information in this presentation, including without limitation any stock price, market data informati