Champion Real Estate Investment Trust · HKEX:2778

Champion Real Estate Investment Trust — FY2018 Earnings Presentation

15 slides from Champion Real Estate Investment Trust's earnings presentation, February 2019

  1. Slide 1: 2018 Annual Results

    I IAT HII THT Mi 2018 Annual Results ChampionREIT wh 4 rE SE fa GE

  2. Slide 2: Another Record Year of Distributable Income

    Another Record Year of Distributable Income Financial Highlights FY 2017 FY 2018 Change Y/Y Total Rental Income (HK$mm) 2,431 2,677 ↑ 10.1% Net Property Income (HK$mm) 2,166 2,405 ↑ 11.0% Distributable Income (HK$mm) 1,487 1,611 ↑ 8.3% Distribution per Unit (HK$) 0.2424 0.2617 ↑ 8.0% Rental Income (

  3. Slide 3: Steady Growth in Asset Value

    Steady Growth in Asset Value Property Valuation: HK$83.1 bn Net Asset Value per Unit (HK$) 11.42 Three Garden Road + 10.2% Valuation: HK$49.9 bn Office Value psf: HK$30,543 10.36 Cap Rate: 3.60% No change in cap rate 60% Dec-17 Dec-18 Gearing Ratio (%) Langham Place 40% Valuation: HK$33.2 bn - Offic

  4. Slide 4: Proactive Management on Credit Profile

    Proactive Management on Credit Profile • Effective interest rate as at 31 Dec 2018: 3.14%(1) Latest Debt Maturity Profile (HK$mm) Bank Loan MTN • Fixed-rate portion: 54.2% of total debt (2017: 50.0%) 5,800 • Refinancing arrangements with banks in progress for bank loan due in 2019 3,700 2,998 1,225

  5. Slide 5: Three Garden Road

    Three Garden Road ChampionREIT meh 4 EE a III SU Tm ITIL 3

  6. Slide 6: Spot Rent at HK$140+ Substantially Above Passing Rent

    Spot Rent at HK$140+ Substantially Above Passing Rent Passing Office Rents as at 31 Dec 2018 Office Lease Expiry as at 31 Dec 2018 Effective Rent per sq. ft. (Lettable) (HK$) Vacant Leases Expiring Rent Review 98.61 +6.6% 0.1% 92.52 22.4% 37.8% 2.8% 4.1% 13.5% 10.4% 8.2% 0.9% Dec-17 Dec-18 Vacant 20

  7. Slide 7: Three Garden Road Occupancy Reaching Historical High

    Three Garden Road Occupancy Reaching Historical High Office Occupancy Rate as at 31 Dec 2018 Office Tenant Profile as at 31 Dec 2018 99.1% Others Vacant 5% 1% Media 5% Banking Corporate 37% 94.2% 7% Consultancy 2% Medical 2% Legal 4% Business Centre / Co- working Space 5% Asset Management 32% Dec-17

  8. Slide 8: Langham Place Office

    ChampionREIT ree 4 PE SR ta ob Langham Place Office on Tell

  9. Slide 9: Fully-occupied Office Tower Positioned as a Lifestyle Hub

    Fully-occupied Office Tower Positioned as a Lifestyle Hub Office Occupancy Rate as at 31 Dec 2018 Office Tenant Profile as at 31 Dec 2018 Lifestyle-related tenants being location-sensitive Others 100.0% 2% 97.1% Healthcare & Medical Corporate & 25% Sales Services 36% Beauty 23% Business Fitness Cent

  10. Slide 10: Spot Rent at HK$50+ Substantially Above Passing Rent

    Spot Rent at HK$50+ Substantially Above Passing Rent Office Lease Expiry as at 30 Jun 2017 Passing Rents (HK$) Leases Expiring Rent Review 1.3% 42.68 +4.6% 47.5% 20.1% 14.5% 13.4% 40.79 2.5% 0.8% Vacant 2017 2018 2019 2020 2021 & after Office Lease Expiry as at 31 Dec 2018 Leases Expiring Rent Revie

  11. Slide 11: Langham Place Mall

    ChampionREIT ree 4 PE SR ta ob Langham Place Mall

  12. Slide 12: Retail Mall Outperforming Market with Remarkable Performance

    Retail Mall Outperforming Market with Remarkable Performance • Rent to sales remained stable at ~19% FY18 Retail Sales Growth Outperforming Market Rental Income - HK$mm Base rent Turnover rent 879 +9.7% 801 187 21% 116 14% 17.6% 685 86% 691 79% 8.8% Langham Place Mall HK Retail Average FY 2017 FY 20

  13. Slide 13: Fully-occupied Mall with Active Tenant Management

    Fully-occupied Mall with Active Tenant Management Promotion Programmes with Tenants Retail Tenant Profile as at 31 Dec 2018 Health & Beauty 9% Others 14% Fashion & Accessories 40% Entertainment 15% Food & Beverage 22% 12

  14. Slide 14: Guidance

    Guidance 1 Properties Outlook:  Office – sustainable growth given market rents well above passing rents  Retail – potential economic slowdown may dampen consumer confidence 2 Liabilities Management:  Refinancing for bank loan due in 2019 in progress  Continue to monitor market movements aiming t

  15. Slide 15: Important Notice

    Important Notice This presentation may contain information which is proprietary, confidential and/or legally privileged and has been prepared by Eagle Asset Management (CP) Limited, in its capacity as the manager (the “REIT Manager”) of Champion Real Estate Investment Trust (the “Trust”). This prese

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