Kerry Properties Limited · HKEX:683
Kerry Properties — H1 2016 Earnings Presentation
32 slides from Kerry Properties's earnings presentation, Aug 22, 2016
Slide 1: 1H 2016 Interim Results Investor Presentation
1H 2016 INTERIM RESULTS INVESTOR PRESENTATION 22 AUGUST 2016 1
Slide 2: Agenda
1. RESULTS HIGHLIGHTS 2. DEVELOPMENT PROPERTIES 3. INVESTMENT PROPERTIES 4. FINANCIAL POSITION 5. APPENDIX 2
Slide 3: 1. Results Highlights
1. RESULTS HIGHLIGHTS 3
Slide 4: Results Highlights
RESULTS HIGHLIGHTS 1H 2016 TOTAL CONTRACTED SALES TOTAL PROPERTY SALES +59% +102% TOTAL +12% $10.1 B RECURRENT REVENUE 78% of full year target GEARING IMPROVED 3.4% PTS 24.4% HK $2.9B | PRC $7.2B DIVIDEND PER SHARE $0.30 PROJECT DISPOSAL HANGZHOU KERRY CENTRE Yingkou |Chengdu Ph 3 88% RETAIL & OFFIC
Slide 5: Results Highlights
RESULTS HIGHLIGHTS HK$ million 1H 2016 1H 2015 Change Turnover 5,537 4,204 +32% Gross profit 2,612 2,158 +21% Share of results of associates 548 1,197 -54% Underlying profit 1,434 2,182 -34% Net increase in fair value in investment properties 607 607 +0% Reported profit 2,041 2,789 -27% Earnings per
Slide 6: Results Highlights
RESULTS HIGHLIGHTS HK$ million Turnover Gross Profit Gross Margin * Recurrent revenue Note 1H 2016 1H 2015 Change 1H 2016 1H 2015 Change 1H 2016 1H 2015 Property sales 2,769 1,739 +59% 949 615 +54% 34% 35% HK N1 203 1,304 -84% 69 552 -88% 34% 42% PRC N2 2,566 435 +490% 880 63 +1,297% 34% 14% Propert
Slide 7: 2. Development Properties
2. DEVELOPMENT PROPERTIES 7
Slide 8: Development Properties Overview
DEVELOPMENT PROPERTIES OVERVIEW Contracted Sales 1H 2016 1H 2015 HK HK$ billion HK PRC Contracted Sales 2.9B 2.4B 10.1 B +102% Saleable Area Sold Approx. 182,000 s.f Approx. 92,000 s.f Recognized Sales Subsidiary projects: $0.2B Subsidiary projects: $1.3B Associate projects: $0.3B* Associate project
Slide 9: Development Properties – HK
DEVELOPMENT PROPERTIES – HK The Bloomsway (Est. Completion: Q1 2017) Mantin Heights (Est. Completion: Q1 2017) Total units: 1,100 Total units: 1,429 1st Launch in 11/2015 1st Launch in 4/2016 Sold 701units or 88% of units launched Sold 106 units or 62% of units launched Sales Proceeds $4.3B Sales Pr
Slide 10: Development Properties – PRC
DEVELOPMENT PROPERTIES – PRC Key Projects Sold in 1H 2016 Saleable Resources 12 Cities 80% Provincial Capital & 1st Tier cities 74% Provincial Capital & 1st Tier cities Contracted Sales in 1H 2016 * Provincial capital & 1st tier city 7 provincial 1.2 Others, 20% capital & 1st tier 80% million s.m Ot
Slide 11: 3. Investment Properties
3. INVESTMENT PROPERTIES 11
Slide 12: Investment Properties - Overview
INVESTMENT PROPERTIES - OVERVIEW Total Property Rental PRC is the main rental contributor and will continue to be (includes attributable rental income from associates the growth driver going forward HK$ million 2.1B +11% 1.9B 1,566 +10% • Beijing Kerry Centre PRC 1,425 HK • JingAn Kerry Centre • Han
Slide 13: Investment Properties - PRC
INVESTMENT PROPERTIES - PRC PRC Property Rental Beijing Kerry Centre GFA(100%): 1.5M s.f * Shenzhen Kerry Plaza Ph 1 & 2 GFA(100%): 1.7M s.f * Gross rental revenue: $1.6B Occupancy * 97% Occupancy 99% (includes attributable rental income from associates) Yield on Cost * 20% Yield on Cost 21% Attribu
Slide 14: Hangzhou Kerry Centre
HANGZHOU KERRY CENTRE Prime location in the heart of the city’s traditional CBD in Xiacheng District Project Summary Total gross development area Total: 200,000 s.m (s. m) Retail: 108,000 s.m Residential: 31,000 s.m Office: 13,000 s.m Hotel: 48,000 s.m (417 rooms) Car park: 1,700 units KPL’s Interes
Slide 15: Hangzhou Kerry Centre
HANGZHOU KERRY CENTRE Hotel soft opened in 3/2016 Office in full operation Commercial & apartments target completion in 2H 2016 As at 8/2016: Office Commercial Hotel • 85% area committed • 88% area committed • Midtown Shangri-La, • Achieved one of the • Handover to tenants Hangzhou soft opened
Slide 16: Qianhai Project – Major Mixed-Use in 1st Tier City
QIANHAI PROJECT – MAJOR MIXED-USE IN 1ST TIER CITY Project Summary Total gross development Total: 202,000 s.m area (s. m) Office: 120,000 s.m Residential: 60,000 s.m Commercial: 22,000 s.m Land cost Rmb 3.9 B Acquisition date Jan-2015 KPL’s Interest 100% Construction progress Piling and excavation w
Slide 17: Investment Properties - HK
INVESTMENT PROPERTIES - HK HK Property Rental Gross rental revenue: $559M (includes attributable rental income from associates) Attributable GFA 2.8M s.f Occupancy 95 % (weighted average) HK$ million Prop mgmt, carparks and others Apartment Commercial Office 559M +16% 483M HK Occupancy Rental Revenu
Slide 18: 4. Financial Position
4. FINANCIAL POSITION 18
Slide 19: Financial Position
FINANCIAL POSITION Debt Maturity Profile As at 30 As at 31 Total Debt : $38,797 M HK$ million Jun 2016 Dec 2015 Change Successfully entered into a HK$10B dual-tranche club loan in early 2016 for refinancing purposes Total Debt 38,797 37,046 +5% HK$ million Cash and bank Fixed Rate Bonds 15,678 10,86
Slide 20: 5. Appendix
5. APPENDIX A. 1H 2016 Contracted Sales - HK B. 1H 2016 Contracted Sales - PRC C. Major Properties Under Development - HK D. Major Properties Under Development - PRC E. PRC Major Completed Mixed-Use Properties F. Land Bank – Overview / HK / PRC 20
Slide 21: A. 1H 2016 Contracted Sales - HK
A. 1H 2016 CONTRACTED SALES - HK Projects on sale KPL’s Total Units Accumulative Inventory ASP Sales Completion (KPL’s Interest) interest project sold in units sold as at as at 30 Jun achieved proceeds in (%) units 1H 2016 30 Jun 2016 2016 (units) in 1H 2016 1H 2016^ HK$ psf HK$ bn NEW LAUNCH DURING
Slide 22: B. 1H 2016 Contracted Sales – PRC
B. 1H 2016 CONTRACTED SALES – PRC Major projects on sale Product Contracted GFA Sold ASP KPL’s (KPL’s Interest) type sales ^ s.m achieved interest RMB’M in 1H 2016 RMB psm 1 Hangzhou Castalia Court 杭州云荷廷 R 1,291 52,000 24,800 100% 2 Nanjing Jinling Arcadia Court 南京金陵‧雅頌居 R 1,054 26,300 40,100 100% 3
Slide 23: C. Major Properties Under Development - HK
C. MAJOR PROPERTIES UNDER DEVELOPMENT - HK Currently, KPL has approximately 2.8 M s.f of major properties under development in HK Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) FOR SALE PROPERTIES 1 The Bloomsway So Kwun Wat R Superstructu
Slide 24: D. Major Properties Under Development - PRC
D. MAJOR PROPERTIES UNDER DEVELOPMENT - PRC Currently, KPL has approximately 19.5 M s.f of major properties under development in PRC Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) MIXED-USE DEVELOPMENT 1 Hangzhou Kerry Centre Hangzhou A/C
Slide 25: D. Major Properties Under Development - PRC (Con't)
D. MAJOR PROPERTIES UNDER DEVELOPMENT - PRC (CON’T) Currently, KPL has approximately 19.5 M s.f of major properties under development in PRC Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) PRIMARILY FOR SALE PROPERTIES 8 Changsha Xiangjiang
Slide 26: E. PRC Major Completed Mixed-Use Properties
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES 30 Jun 2016 GFA & Occupancy Attri GFA (000s s.f.) Beijing Shanghai Shenzhen Tianjin Hangzhou Fuzhou Total Weight Office 711 1,492 1,552 --- 102 --- 3,857 56% Commercial 98 1,099 212 428 47 64 1,948 29% Apartment 277 774 --- --- --- --- 1,051 15% Total 1,08
Slide 27: E. PRC Major Completed Mixed-Use Properties
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES Beijing Kerry Centre, Total GFA 2.2M s.f. * • Continues to be an iconic presence at the heart of Beijing • Located in the Chaoyang district, the city's commercial and financial center and within the 2nd ring road • Combines prime office space, a shopping m
Slide 28: E. PRC Major Completed Mixed-Use Properties
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES Shenzhen Kerry Plaza Total GFA 1.7M s.f. • 3 Grade-A office towers located at the core of Futian CBD • Conveniently connected to Futian railway station on the Guangzhou-Shenzhen-Hong Kong Express Rail Link now under construction • Overall occupancy at 99%
Slide 29: F. Land Bank - Overview
F. LAND BANK - OVERVIEW Total Property Portfolio Attributable GFA: Approx. 49.1M s.f. (as of 30 Jun 2016) PUD 61% Held for sale Macau 8% 5% Overall – Overseas Overall – PRC 8% Hotel 76% 8% By Type By Location HK 11% Completed IP 23% Hotel Residential Macau 8% 6% 61% Apartment PUD – 2% PRC PUD – Over
Slide 30: F. Land Bank - HK
F. LAND BANK - HK HK Land bank Attributable GFA (‘000 s.f) Hotel 1% Commercial 23% Completed Investment Properties 2,785 Commercial 1,223 Residential 5.3M s.f in 46% Office 840 attributable Office GFA Apartment 722 16% Properties under development 2,381 Apartment 14% Completed properties held for sa
Slide 31: F. Land Bank - PRC
F. LAND BANK - PRC PRC Land bank Attributable GFA (‘000 s.f) Hotel 13% Completed Investment Properties 6,856 Commercial Residential Commercial 1,948 15% 45% 37.5M s.f Office 3,857 attributable GFA Apartment 1,051 Properties under development 22,888 Office 23% Apartment 4% Completed properties held f
Slide 32: Disclaimer
DISCLAIMER 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 information,