Sun Hung Kai Properties Limited · HKEX:16
Sun Hung Kai Properties — 1H FY2025 Earnings Presentation
48 slides from Sun Hung Kai Properties's earnings presentation, Feb 27, 2025
Slide 1: FY2025 Interim Results
Cover 2 FY2025 Interim Results 27 February 2025 24 February 2022 FY2025 Interim Results
Slide 2: Contents
Contents Page Financial Review – 1H FY2025 4 Property Business – Hong Kong Land Bank 10 Property Development 14 Property Investment 18 Property Business – Mainland Land Bank 26 Property Development 28 Property Investment 31 Hotel Business 36 Sustainability 38 Market and Business Prospect
Slide 3: Disclaimer
Disclaimer The information contained in these materials is intended for reference and general information purposes only. Neither the information nor any opinion contained in these materials constitutes an offer or advice, or a solicitation, recommendation or suggestion by Sun Hung Kai Properties Lim
Slide 4: Financial Review – 1H FY2025
ICC and IFC, Hong Kong FINANCIAL REVIEW – 1H FY2025 FY2025 Interim Results
Slide 5: Financial Highlights
Financial Highlights 1H 1H Change FY2025 FY2024 Profit attributable to the Company’s shareholders - Underlying(1) (HK$ mn) 10,463 8,906 +17.5% - Reported (HK$ mn) 7,523 9,145 -17.7% Basic earnings per share - Underlying(1) (HK$) 3.61 3.07 +17.5% - Reported (HK$) 2.60 3.16 -17.7% Interim dividend per
Slide 6: Profit Breakdown by Segment
Profit Breakdown by Segment Profit Breakdown by Segment(1) 1H 1H Change (in HK$ mn) FY2025 FY2024 (I) Property sales - Hong Kong 2,325 1,235 - Mainland 181 805 Sub-total 2,506 2,040 +22.8% (II) Property rental - Hong Kong 6,339 6,574 - Mainland 2,377 2,473 - Singapore 288 279 Sub-total 9,004 9,326 -
Slide 7: Financial Position
Financial Position 31 Dec 30 Jun 31 Dec As at 2024 2024 2023 Shareholders’ equity (HK$ mn) 605,046 606,717 602,330 - Shareholders’ equity per share (HK$) 208.8 209.4 207.9 Net debt (HK$ mn) 107,828 110,866 127,786 Gearing ratio(1) 17.8% 18.3% 21.2% 1H 1H FY2025 FY2024 Interest cover(2) 5.0x 3.8x (1)
Slide 8: Prudent Financial Management
Prudent Financial Management Gearing Ratio HK$128,786m 25% 21.2% HK$110,866m Ongoing measures of cash-flow 20% 19.2% 18.2% 18.3% HK$107,828m management: 17.5% 17.4% 17.8% Strictly control construction capex and adhere 15% to highly selective approach in land bank replenishment 10% Strengthen rec
Slide 9: Prudent Financial Management (Cont'd)
Prudent Financial Management (Cont’d) A better alignment of RMB- denominated assets and liabilities via additional borrowings in RMB Debt Maturity Profile Debt (HK$bn) As at 31 Dec 24 As at 30 Jun 24 <1 year, 11% HKD 30.51 (25%) 32.86 (26%) >5 years, Fixed 18% RMB 10.61 (9%) 6.80 (5%) Between 1 20%
Slide 10: Property Business – Hong Kong Land Bank
SIERRA SEA and GO PARK Sai Sha PROPERTY BUSINESS – HONG KONG LAND BANK FY2025 Interim Results
Slide 11: Land Bank in Hong Kong
Land Bank in Hong Kong Total land bank as at 31 December 2024: 56.9 mn sq.ft.(1) Completed Properties Properties under Development (3) Data Centre Industrial Data Centre Industrial (3) 4% Residential 1% 3% 9% 12% Office 17% Hotel 13% Residential 67% Retail Retail 33% 12% Office 29% (2) Total: 37.6
Slide 12: Land Bank in Hong Kong (Cont'd)
Land Bank in Hong Kong (Cont’d) Added two sites during the period Location Usage Stake Gross Floor Area (%) (square feet) (1) Fanling Sheung Shui Town Lot No. 307, Fanling North Residential/Shops 100 308,000 (2) Sha Tin Town Lot No. 623, Sha Tin Residential 100 157,000 Total 465,000 Added anothe
Slide 13: Latest Land Acquisitions
Latest Land Acquisitions Sha Tin Town Lot No. 651 (100% stake) Awarded in January 2025 Residential GFA: 194,000 sq.ft Located in a mature community in Tai Wai, 5-6 mins drive from MTR station Sha Tin Heung Fan Liu Project Easy access to public transport Proximity to neighbourhood facilities
Slide 14: Property Business – Hong Kong Property Development
The YOHO Hub II, Yuen Long PROPERTY BUSINESS – HONG KONG PROPERTY DEVELOPMENT FY2025 Interim Results
Slide 15: Recognized Property Sales in Hong Kong
Recognized Property Sales in Hong Kong (1) Property Sales 1H FY2025 1H FY2024 Change Revenue (HK$ mn) 16,031 3,612 344% Operating profit (HK$ mn) 2,325 1,235 88% Major contributors: YOHO WEST Phase 1, The YOHO Hub II, St. Barths and Grand Jeté Phase 2 Completed 0.85mn sq.ft. of attri. resident
Slide 16: Contracted Sales in Hong Kong for 1H FY2025
Contracted Sales in Hong Kong for 1H FY2025 Hong Kong’s primary residential market saw solid activity driven by lower mortgage interest rates and relaxation of mortgage rules in the second half of 2024 The Group achieved contracted sales of about HK$24.8bn, major contributors include: Stake Attr
Slide 17: New Projects to be launched in the Next 10 Months
New Projects to be launched in the Next 10 Months Stake Attri. GFA Project (%) (sq.ft.) SIERRA SEA, Sai Sha Development (1) 100 862,000 Ph.1A & 1B (2) Cullinan Sky Ph.2, Kai Tak 100 495,000 Fanling Sheung Shui Town Lot No. 279 (3) 100 317,000 Ph.1, Kwu Tung (4) NOVO LAND Ph.3A, Tuen Mun 100 312,000
Slide 18: Property Business – Hong Kong Property Investment
New Town Plaza, Sha Tin PROPERTY BUSINESS – HONG KONG PROPERTY INVESTMENT FY2025 Interim Results
Slide 19: Rental Income – Hong Kong
Rental Income – Hong Kong Gross rental income registered a modest decrease in 1H FY2025 Gross Rental Income by Sector in Hong Kong(1) Rental performance of retail portfolio HK$ mn 10,000 was resilient but challenges for office 9,181 8,928 8,772 8,941 8,813 (-1.4% yoy) portfolio remain 8,000 Retail
Slide 20: Hong Kong Retail Portfolio
Hong Kong Retail Portfolio Registered resilient rental performance with overall occupancy of 93% Adopt multi-pronged approach to strengthen competitive edge Leverage omnichannel Develop close and long-term marketing (e.g. KOLs, relationships with tenants Xiaohongshu) and shoppers Enjoy synergy f
Slide 21: Initiatives to Enhance Shoppers' Experience
Initiatives to Enhance Shoppers’ Experience YOHO Mall APM Park Central V Walk Attracted mainland and overseas brands to open their debut stores in the Group’s malls across populous districts Regularly refined the malls’ tenant mix and store layouts, enriching their offerings Continued to upgra
Slide 22: Initiatives to Enhance Shoppers' Experience (Cont'd)
Initiatives to Enhance Shoppers’ Experience (Cont’d) The Point New Interface Design New VIP Programme Easy access to events and offers from favourite malls Stay updated on the latest tenant promotions The Point – Business Highlights Over 3mn Resilient membership member sales Instant Point Earn
Slide 23: Hong Kong Office Portfolio
Hong Kong Office Portfolio Maintained an average occupancy of about 90% Remained competitive under the trend of flight-to-quality Differentiate itself with high green- 1. IFC 2. ICC building standards and professional (Attr. GFA: 1.0mn sq.ft.) (GFA: 2.5mn sq.ft.) property management Continue
Slide 24: Expanding Portfolio to Strengthen Recurring Income Base
Expanding Portfolio to Strengthen Recurring Income Base Recurrent income base will be further expanded in the next two to three years as new investment properties are coming on stream (Rendering) High Speed Rail West Kowloon (Rendering) Mong Kok Terminus Development (JV) - Commercial Complex Inter
Slide 25: Expanding Portfolio to Strengthen Recurring Income Base (Cont'd)
Expanding Portfolio to Strengthen Recurring Income Base (Cont’d) (Rendering) Named the World’s Best Real Estate Development in Euromoney’s Real Estate Awards 2024 Incorporated plenty of greenery and human-centric designs Premium grade-A office towers, namely International Gateway Centre (IGC)
Slide 26: Property Business – Mainland Land Bank
Hangzhou IFC, Hangzhou (Rendering) PROPERTY BUSINESS – MAINLAND LAND BANK FY2025 Interim Results
Slide 27: Land Bank on the Mainland
Land Bank on the Mainland Total land bank as at 31 December 2024: 66.4 mn sq.ft.(1) Completed Properties Properties under Development Hotel Hotel, Residential 9% 3% 10% Residential 42% Office 35% Office 38% Retail 43% Retail 20% (2) Total: 21.2 mn sq.ft. Total: 45.2mn sq.ft. (1) In attributable te
Slide 28: Property Business – Mainland Property Development
Lake Genève, Suzhou PROPERTY BUSINESS – MAINLAND PROPERTY DEVELOPMENT FY2025 Interim Results
Slide 29: Recognized Property Sales on the Mainland
Recognized Property Sales on the Mainland (1) Property Sales 1H FY2025 1H FY2024 Change Revenue (HK$ mn) 617 1,594 61% Operating profit (HK$ mn) 181 805 78% The decline was mainly due to lower sales volume of residential units Satisfactory development margins About RMB12.5bn(2) contracted sale
Slide 30: Contracted Sales on the Mainland for 1H FY2025
Contracted Sales on the Mainland for 1H FY2025 Achieved attributable contracted sales of over RMB660 mn(1) on the mainland In January 2025, the Group launched the first batch of the second phase at Lake Genève in Suzhou with encouraging response Over the next 10 months, the Group plans to laun
Slide 31: Property Business – Mainland Property Investment
Shanghai IFC Mall, Shanghai PROPERTY BUSINESS – MAINLAND PROPERTY INVESTMENT FY2025 Interim Results
Slide 32: Rental Income on the Mainland
Rental Income on the Mainland The mild decrease was mainly due to a decline in turnover rent of its retail portfolio Gross Rental Income by Sector on the Mainland(1) HK$ mn 4,000 Office 29% Retail 3,374 65% 3,139 3,089 (-1.6% yoy) 3,000 2,866 2,798 992 (2) 896 895 (-0.2% yoy) Others 927 6% 882 2,0
Slide 33: Existing Mainland Property Investment – Integrated Projects
Existing Mainland Property Investment – Integrated Projects The Group’s integrated projects enjoy complementary benefit within the same complexes and great accessibility to public transportation Office portfolio: Premium building quality and high green building standards Occupancies of landmar
Slide 34: Incremental Contribution from Newly Completed Project
Incremental Contribution from Newly Completed Project Nanjing IFC Mall, Nanjing A one-million-sq.ft. mall with seamless connections to metro lines Replicating the success of Shanghai IFC Mall, Nanjing IFC Mall grand-opened and become a popular shopping destination in Hexi CBD with high occupancy
Slide 35: Expanding Property Investment Portfolio on the Mainland
Expanding Property Investment Portfolio on the Mainland Three ITC – Three ITC (100% owned) Tower B Office Three ITC includes: Three ITC – Tower A office (220-metre-tall) 1.1mn sq.ft. (completed) One ITC Tower A Office Tower B office (370-metre-tall) 2.4mn sq.ft. (to be completed by late 2025) ITC Ma
Slide 36: Hotel Business
The Ritz-Carlton Shanghai, Pudong HOTEL BUSINESS FY2025 Interim Results
Slide 37: Hotel Business
Hotel Business Hotel Operations(1) 1H FY2025 1H FY2024 Change Revenue (HK$ mn) 2,698 2,757 2% Operating profit (HK$ mn) 377 430 12% Occupancy of the Group’s hotels in Hong Kong remained at a high level in 1H FY2025 The decline in operating profit was due to increased operating costs and addition
Slide 38: Sustainability
Major green projects and green initiatives SUSTAINABILITY FY2025 Interim Results
Slide 39: Sustainability Initiatives – Environmental
Sustainability Initiatives – Environmental Greenhouse Gas (GHG) Renewable energy Electric applications Green buildings Emissions Management Developing Hong Kong’s Doubled the number of ICC and High Speed Rail New target set to reduce first privately funded solar super-fast EV chargers in Wes
Slide 40: Sustainability Initiatives – Social
Sustainability Initiatives – Social Mega-event economy Sports for wellness Community care Strong advocate Various outdoor events Spanning 1.3 million sq.ft Ongoing support for the for reading near SHKP’s malls to and grand-opened in Government’s Strive and Organized visits and a revitalize t
Slide 41: Market and Business Prospects
ICC and IFC, Hong Kong MARKET AND BUSINESS PROSPECTS FY2025 Interim Results
Slide 42: Market Prospects
Market Prospects Hong Kong Economic growth is expected to be relatively slow due to a multitude of variables affecting the global environment Lowered expectations for US rate cuts will continue to weigh on business sentiment and activity End-user demand for housing will remain solid, supported
Slide 43: Business Prospects
Business Prospects The Group will adhere to its sound and prudent financial management practices Proactive cash flow management approach: Abide by strong cost discipline on capex and other costs without compromising quality and services Adopt proactive management approach to strengthen recur
Slide 44: Business Prospects (Cont'd)
Business Prospects (Cont’d) Sharpen the competitive edge of property investment portfolio Proactive leasing approach which includes asset enhancement initiatives and maintaining close relationship with tenants and customers New developments will create new sources of recurrent income in the ne
Slide 45: Endowed with Financial and Operational Strengths to Navigate Challenges
Endowed with Financial and Operational Strengths to Navigate Challenges Over the past half-century, the Group’s longstanding strengths, including a strong commitment to quality and excellence, customer-centric philosophy, trusted relationships with stakeholders and flexibility in moving with the tim
Slide 46: Appendix: Sustainability Performance
Appendix: Sustainability Performance Green The Group aims to attain LEED Gold or Platinum ratings for Buildings core commercial projects under development FY2024 10-year Targets for FY2030 (baseline year: FY2020) Progress Energy To reduce the electricity consumption intensity of its EOC-monitore
Slide 47: Appendix: Sustainability Performance (Cont'd)
Appendix: Sustainability Performance (Cont’d) Task Force on Climate-related Financial Disclosures (TCFD) Disclosed Scope 3(1) emissions starting from FY2024 Made reference to the recommendations of the TCFD framework under the four pillars – Governance, Strategy, Risk Management and Metrics and
Slide 48: FY2025 Interim Results
C3 Sun Hung Kai Properties Building Homes with Heart
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