Henderson Land Development Co. Ltd. · HKEX:12
Henderson Land Development — H1 2024 Earnings Presentation
53 slides from Henderson Land Development's earnings presentation, August 2024
Slide 1: 2024 Interim Results Presentation
(Stock Code: 12) 2024 Interim Results Presentation August 2024 The Henderson Central, Hong Kong Balloon Swan (Red) sculpture by Jeff Koons at the office lobby of The Henderson Artist’s Impression
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Henderson Land Development Company Limited (the “Company” or “HLD”) solely for information purposes and does not constitute an offer, recommendation or invitation to subscribe for or purchase any securities and nothing contained herein shall form the
Slide 3: Contents
Contents Pages 2024 Interim Results Highlights 4–6 Sales of Property Interests 7 Property Development 8 – 18 Property Investment 19 – 23 Hong Kong and China Gas 24 – 25 Strong Financial Position 26 Prospects 27 Annexes 28 – 52 -3-
Slide 4: 2024 Interim Results Highlights
2024 Interim Results Highlights 1H 2024 1H 2023 Unaudited HK$ mn HK$ mn Change Profit attributable to Shareholders Reported profit 3,174* 5,957 -47% Underlying profit (excluding fair value change on investment properties) 5,441+ 6,073 -10% Major Segmental Performance: Property Development (attribut
Slide 5: 2024 Interim Results Highlights (cont’d)
2024 Interim Results Highlights (cont’d) Unaudited Audited Change 30 Jun 2024 31 Dec 2023 HK$ mn Shareholders’ equity 322,434 326,542 -1% Cash and bank balances 15,079 21,623 -30% Net debt* 71,023 73,869 -4% -0.6 Net debt* to Shareholders’ equity (%) 22.0% 22.6% percentage point Net asset value per
Slide 6: 2024 Interim Results Highlights (cont’d)
2024 Interim Results Highlights (cont’d) Property Development* & Property Leasing* HKCG^ Sales of Property Interestsψ Property Development Revenue: Gross Rental Income: Interim Dividend attributable to HLD: HK$ 7,768 mn +3% p-o-p HK$ 4,446 mn +2% p-o-p HK$ 930 mn Flat p-o-p Pre-tax Profit* Pre-tax N
Slide 7: “Sales of Property Interests” Transaction Highlights
“Sales of Property InterestsΔ” Transaction Highlights Hong Kong Mainland China Golden Centre, Sheung Wan (Transaction Completed in Dec’16) Beijing Henderson Centre (Transaction Completed in Feb’17) ◼ Consideration (as adjusted): HK$4,348 mn ◼ Consideration: HK$3,261 mn ◼ Realized Gain: HK$3,832 mn a
Slide 8: Property Development
Property Development ◼ Sales results are shown below and 4 residential projects were completed in 1H 2024 with total attributable GFA of approx. 0.78mn sq.ft. (1H 2023: 0.40mn sq.ft.) No. of No. of Project units pre-sold & sold No. of Unsold Residential Developments offered for Initial HLD’s Anticip
Slide 9: Property Development (cont’d)
Property Development (cont’d) ◼ Sales pipeline of new projects in Hong Kong for 2H 2024 are shown as follows Attri. GFA No. of HLD’s (sq. ft.) Completion Project Name and Location Usage* Project interest Timing Units C R 8 Castle Road, Mid-Levels 1 R 172 65% - 306,844 Completed (formerly known as pr
Slide 10: Property Developments with Sales commencing in 2H 2024
Property Development (cont’d) ◼ Property Developments with Sales and for Sale/Pre-Sale commencing in 2H 2024 Existing lines Lo Wu Border with Mainland China Lok Ma MTR Chau Airport Express Sheung East Rail Line Shui Tuen Ma Line Fanling Light Rail Harbour Tunnels <Northern Metropolis> Route 3 Yuen L
Slide 11: Property Development (cont’d)
Property Development (cont’d) ◼ As at 30 Jun 2024, the Group had 24 projects with at least 80% ownership secured and expected total attri. GFA of approx. 2.8mn sq.ft. Attributable Gross Floor Area (GFA)/ Saleable Area (mn sq. ft.) Investment 2H 2026 or 2025 – 26 Total (Note *) Property 2024 onwards
Slide 12: Diversified Land-sourcing Strategy
Property Development (cont’d) ◼ Diversified Land-sourcing Strategy with Sustainable Saleable Resources Going Forward To Kwa Wan URA Project ii Market-acquired Urban Sites The Symphonie URA Project 0.36mn sq.ft. of attri. GFA Remaining portions shown 0.03mn sq.ft. of attri. GFA (Completed) Cheung Sha
Slide 13: Good Development Progress in Urban Site Assembly Developments
Property Development (cont’d) ◼ Good Development Progress in Urban Site Assembly Developments The Quinn‧ Aquila‧Square Mile Cetus‧Square Mile Eltanin‧Square Mile Gateway‧ Baker Circle One Baker Circle One The Haddon Square Mile Completed in 2021 Completed in 2019 Completed in 2017 Square Mile (Phase
Slide 14: Reasonable Sale Of Residential Developments
Property Development (cont’d) Reasonable Sale Of Residential Developments • Urban – Hong Kong Island (from Site Assembly): The Holborn, Quarry Bay (100% owned) Total no. of units 420 Presale launched since Sep’21 419 units successfully sold* (Almost sold out ) Avg. Sale Price To-date (Net) Approx. H
Slide 15: New Territories Land Plot Holdings in Northern Metropolis
Property Development (cont’d) iii Group’s New Territories Land Plot Holdings, Majority Situated In “Northern Metropolis”, Representing Valuable Land Resources ◼ At 30 Jun 2024, land plot holdings in New Territories amounted to approx. 45.1 mn sq. ft. (end of 2023: approx. 45.8 mn sq. ft.) in land p
Slide 16: New Territories Land Holdings: Landbank Replenishment and Cashflows
Property Development (cont’d) iii Group’s New Territories Land Plot Holdings, including in “Northern Metropolis”, Provides Source For (i) Landbank Replenishment & (ii) Cashflows From Government Land Resumptions HLD owns largest stock Of “Agricultural Land” in Hong Kong which will generate substantia
Slide 17: HLD Residential Developments In Northern Metropolis
Property Development (cont’d) HLD Residential Developments In Northern Metropolis • Case Study (1) – “One Innovale”, FLN NDA – Successful Sale vs. <COVID> + <Rising Interest Rates> One Innovale (Phases 1-3), Fanling North (100% owned) Attributable Development Area 612,685 sq.ft. in GFA; approx. 537,
Slide 18: Property Development in Mainland China
Property Development (cont’d) Property Development in Mainland China ◼ Properties Sales & Pre-sales contracted for in Mainland China HK$ mn <COVID-19 9,949 outbreak> 6,917 6,616 6,390 3,983 Represents sales and pre-sales contracted for In HK$ terms, -48% p-o-p in the first half of the relevant year
Slide 19: Property Investment
Property Investment Rental Income from Hong Kong & Mainland China Investment Properties ◼ Expected Additions to Investment Property Portfolio: As at 2026 2032 30 Jun 2024 (Estimated) (Estimated) Hong Kong 10.4mn sq.ft. • Site 3 of New Central Harbourfront • Site 3 of New Central Harbourfront Phase 1
Slide 20: Rental Income from Investment Properties in Hong Kong
Property Investment (cont’d) Rental Income from Investment Properties in Hong Kong • Average leasing rate for the Group’s major rental properties in Hong Kong as at 30 June 2024: 93% (end of FY2023: 92%) • At 30 June 2024, the Group had an attributable no. of about 8,400 car parking spaces providing
Slide 21: Recent Completed Investment Properties in Hong Kong
Property Investment (cont’d) Recent Completed Investment Properties in Hong Kong The Henderson Murray Road, Hong Kong (100% Owned) Site Area Approx. 31,000 sq.ft. Total GFA 465,000 sq.ft. (Plot Ratio @ 15x) GFA • 36-storey building with typical floors between breakdown 6/F to 38/F, for a total of 25
Slide 22: Rental Income from Investment Properties in Mainland China
Property Investment (cont’d) Rental Income from Investment Properties in Mainland China • Performance of key and recently completed investment properties on the Mainland Occupancy Gross Rental Income p-o-p Change Recent Rent Rate Property as at 30 Jun 2024 For 1H 2024 RMB HKD# (psm) World Financial
Slide 23: Growing Portfolio Reaching Rental Stabilization
Property Investment (cont’d) Growing Portfolio Reaching Rental Stabilization Note: shows investment properties Will Enhance Group’s Recurrent Income Base under development 2021 2022 2023 2024 2026+ 2032 208 H Zentre The Henderson Site 3 New Central Johnston Harbourfront Total attri. GFA of completed
Slide 24: Hong Kong & China Gas (“HKCG”) 41.53% owned
Hong Kong & China Gas (“HKCG”) 41.53% owned ◼ HKCG’s audited profit after taxation attributable to shareholders for 1H 2024: HK$ 3,040 mn, down 16% p-o-p ◼ Dividend declared for 1H 2024 attributable to HLD: HK$ 930 mn, Flat p-o-p ◼ Total volume of gas sales in Hong Kong for 1H 2024 decreased by 0.2%
Slide 25: Hong Kong & China Gas (“HKCG”) (cont’d)
Hong Kong & China Gas (“HKCG”) (cont’d) 41.53% owned Dividends Declared by HKCG# HKCG Dividends Declared attri. to HLD# HK$ mn HK$ mn 6,220 6,531 6,531 6,531 2,460 2,583 2,712 2,712 2,712 5,924 2,236 5,385 4,896 1,848 2,033 4,451 1,680 4,047 1,527 3,680 2,239 930 2014 2015 2016 2017 2018 2019 2020 2
Slide 26: Strong Financial Position
Strong Financial Position ◼ Exceeding HK$50.0 bn of green credit and sustainability loan facilities have been secured from financial community with favourable terms since 2020. ◼ Financial Gearing Ratio^ recorded at 22.0% as at 30 Jun 2024 (end of 2023: 22.6% ) with abundant banking facilities and f
Slide 27: Prospects
Prospects ◼ With the Group’s ample financial resources and astute management of the following three core businesses by its experienced professional team, HLD is well-placed to tackle the challenges ahead and deliver sustainable business growth. Property Sales 5 development projects are in the pipe
Slide 28: Annexes
Annexes Pages Annex 1: Group Structure, Operating Margin and Other Highlights 29 – 33 Annex 2: Operations in Hong Kong 2.1: Property Development in Hong Kong 34 – 38 2.1.1 : Inventories from major launched projects for sale 2.1.2 : Newly-acquired urban redevelopment projects with 80% or above owners
Slide 29: Annex 1.1: Group Structure
Annex 1.1: Group Structure ◼ Dr. Lee Shau-kee and/ or his family trust owned an equity interest of about 72.82% in Henderson Land as of 30 June 2024 (31 December 2023: 72.82%) Dr. Lee Shau-kee and/or his family trust 72.82% Henderson Land Development Company Limited (“HLD”) (HK stock code: 12) 21.33
Slide 30: Annex 1.2: Operating Margin
Annex 1.2: Operating Margin Hong Kong Hong Kong Property Development Operating Margin* Property Leasing Operating Margin* 74% 75% 74% 47% 72% 73% 32% 27% 22% 22%^ 9%+ 1H 2020 1H 2021 1H 2022 1H 2023 1H 2024 1H 2020 1H 2021 1H 2022 1H 2023 1H 2024 Mainland China Mainland China Property Development Op
Slide 31: Annex 1.3: Strategic Partnership Agreement Signed
Annex 1.3: Strategic Partnership Agreement Signed Henderson Land Signs a Strategic Partnership Agreement with CR Land to Seize Opportunities in the Northern Metropolis and Promote Integration of the Greater Bay Area Press Release (20th October 2022) Henderson Land Development Company Limited ("Hende
Slide 32: Annex 1.4: Land Sharing Pilot Scheme Proposal Highlights
Annex 1.4: Land Sharing Pilot Scheme Proposal Highlights Land Plots of the Group in New Territories proposed to become “Mixed Community” with Public & Private Housing ◼ Land Sharing Pilot Scheme (“LSPS”) proposal was submitted to the Government on 5th August 2021 ◼ In November 2022, the project was
Slide 33: Annex 1.5: Hong Kong Urban Land Bank Highlights
Annex 1.5 Hong Kong Urban Land Bank from Public Tender / Market Acquisition Highlights Urban Residential Site Acquisitions in recent years Acquired Interest (%) Est. attri. GFA Bailey Street/Wing Kwong Street Project, To Kwa Wan Kowloon (URA) 2021 50% 358,732 sq.ft. The Symphonie, 280 Tung Chau Stre
Slide 34: Annex 2.1.1: Inventories from major launched projects for sale
Annex 2.1.1: Inventories from major launched projects for sale HLD No. of unsold units as Saleable area attri. Usage* interest at 30 Jun 2024 to HLD (sq. ft.) 1 The Henley (Phases 1-3), 7 Muk Tai Street, Kai Tak C/R 100% 579 301,283 2 Henley Park, 8 Muk Tai Street, Kai Tak R 100% 315 171,697 3 The H
Slide 35: Annex 2.1.2: Newly-acquired Urban Redevelopment Projects
Annex 2.1.2: Newly-acquired Urban Redevelopment Projects with 80% to 100% ownership secured With 80% or above but < 100% Hong Kong With 100% ownership secured ownership secured Expected attri. GFA Expected attri. GFA Site area Site area Project name and location upon redevelopment upon redevelopment
Slide 36: Annex 2.1.2: Newly-acquired Urban Redevelopment Projects (cont’d)
Annex 2.1.2: Newly-acquired Urban Redevelopment Projects with 80% to 100% ownership secured (cont’d) With 80% or above but < 100% Kowloon and New Territories With 100% ownership secured ownership secured Expected attri. GFA Expected attri. GFA Site area Site area Project name and location upon redev
Slide 37: Annex 2.1.3: Summary of All Development Land Resources in Hong Kong
Annex 2.1.3: Summary of All Development Land Resources in Hong Kong (as of 30 Jun 2024) Attri. GFA/ saleable Summary of all the different categories of area (Note 1) Remarks Development Land Resources in Hong Kong (mn sq. ft.) (A) Area available for sale: 1 Unsold units from major launched projects
Slide 38: Annex 2.1.3 & 2.1.4: Development Land Resources (cont’d)
Annex 2.1.3 & 2.1.4: Summary of All Development Land Resources in Hong Kong (as of 30 Jun 2024) (cont’d) Attri. GFA/ saleable Summary of all the different categories of area (Note1) Remarks Development Land Resources in Hong Kong (Cont’d) (mn sq. ft.) (C) Major development projects in New Territorie
Slide 39: Annex 3.1: Development Landbank in Mainland China
Annex 3.1: Development Landbank in Mainland China Land bank under/held for development as of 30 June 2024 A “Two-pronged” strategy No. of Attributable GFA* Projects (mn sq. ft.) 1. Beijing 1 0.05 2. Shanghai 1 0.42 Prime cities: 3. Guangzhou 2 1.65 2.33 mn sq. ft. 4. Shenzhen 1 0.21 5. Changsha, Hun
Slide 40: Annex 3.2: Residential Project Sales in Mainland China
Annex 3.2: Residential Project Sales in Mainland China ◼ Residential projects with debut launch or new phase launched for sale/ pre-sale and other projects with significant sales / pre-sales in 1H 2024 City Project name and location Interest (%) Chengdu Phase 1 & 2, Xindu Development (江與山府) 50% Chen
Slide 41: Annex 3.3.1: Completion Schedule in Mainland China
Annex 3.3.1: Completion Schedule in Mainland China ◼ As of 30 June 2024, the Group had holding of about 2.0 mn sq. ft. in attributable GFA of completed inventories in Mainland China. ◼ Projects completed in 1H 2024: City Project name and location Project type GFA (sq. ft.)# GFA attributable to HLD (
Slide 42: Annex 3.3.2: Completion Schedule 2H 2024
Annex 3.3.2: Completion Schedule in Mainland China (Cont’d) ◼ Completion schedule for 2H 2024 Estimated GFA Estimated GFA City Project name and location Project type (sq. ft.)# attributable to HLD (sq. ft.)# Beijing Lakeside Mansion (祥雲賦), Shunyi District Commercial 224,000 55,000 Changsha Phase 1,
Slide 43: Annex 3.3.2: Completion Schedule 2025
Annex 3.3.2: Completion Schedule in Mainland China (Cont’d) ◼ Completion schedule for 2025 Estimated GFA Estimated GFA City Project name and location Project type (sq. ft.)# attributable to HLD (sq. ft.)# Chengdu Phase 2, CIFI Centre (旭輝中心) Residential 420,000 210,000 Chongqing Phase 2, Yubei Develo
Slide 44: Annex 3.4: Rental Portfolio in Mainland China
Annex 3.4: Rental Portfolio in Mainland China Major completed investment properties in Mainland China as of 30 June 2024 Project Name World Grand Skycity Centro Greentech Henderson Henderson Lumina Hengbao Lumina Financial Gateway Tower Metropolitan 688 Shanghai Plaza Guangzhou Centre Office (Phase
Slide 45: Annex 4: ESG Highlights
Annex 4: ESG Highlights Henderson Sustainability Strategy • Henderson Land is committed to embedding sustainability as an integral part of our business. The Group strongly believes that the consideration of ESG factors in our decision-making process helps to enhance the sustainability of our busines
Slide 46: Annex 4: ESG Highlights (cont’d)
Annex 4: New Project Achievement The Henderson: ESG Highlights (cont’d) • BEAM Plus Provisional Platinum covers the year ended 31 December 2022 • LEED Platinum Pre-certification (Core & Shell), achieved in 2019 Our cumulative achievements of local, regional and international green building • WELL Pl
Slide 47: Annex 4: ESG Highlights (cont’d)
Annex 4: ESG Highlights (cont’d) • Sustainability Working Group comprises dedicated team members who serve as sustainability champions and ambassadors to lead the planning, execution and evaluation of the sustainability initiatives. - 47 -
Slide 48: Annex 4: ESG Highlights (cont’d)
Annex 4: ESG Highlights (cont’d) • To view these policies, please refer to our website: https://www.hld.com/en/corporate-governance/group-policies REVISED - 48 -
Slide 49: Climate risk assessment and scenario analysis
Annex 4: ESG Highlights (cont’d) Climate risk assessment and scenario analysis Recognising that climate-related risks play a role in our business success and continuity, the Group tested the resilience of our business operations under distinct and plausible climate change scenarios against key clima
Slide 50: Sustainability Advocacy
Annex 4: ESG Highlights (cont’d) • BBC Storyworks Sustainability Advocacy The Spaces That Shape Us • TVB Financial Forum • Philippine Green Building Council (PHILGBC) – Building Green 2023 • Greenbuild International Conference & UNIVERSITY Expo in Washington, DC SHARING “Unleashing the Global Power
Slide 51: 2024 Achievement & Award
Annex 4: ESG Highlights (cont’d) 2024 Achievement & Award Global Most Innovative Knowledge Hong Kong Most Innovative Knowledge Real Estate Asia Awards 2024 S&P Global Enterprise (MIKE) Award 2024 Enterprise (MIKE) Award 2024 Developer of the Year – Hong Kong Sustainability Yearbook (China) 2024 Ming
Slide 52: Recognitions from sustainability indices and ratings 2023
Annex 4: ESG Highlights (cont’d) Recognitions from sustainability indices and ratings 2023 Global Sector Leaders 5-star Low Risk AA+ Diversified - Office/Retail Regional Sector Leaders Diversified - Office/Retail GRESB Sector Leaders are the best performers by sector and region from across the GRESB
Slide 53: Hong Kong Head Office
Hong Kong Head Office Address: 72-76/F, Two International Finance Centre 8 Finance Street, Central Hong Kong Telephone: (852) 2908 8888 Fax: (852) 2908 8838 Website: www.hld.com Investor Contact: Mr. Patrick Kwok Mr. Kelvin Chi Executive Director Assistant General Manager Direct line: (852) 2908 837
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