Slide 1: FY 2019 Annual Results Investor Presentation
FY 2019 ANNUAL RESULTS INVESTOR PRESENTATION 17 MARCH 2020 1
Slide 2: FY 2019 RESULTS HIGHLIGHTS DEVELOPMENT PROPERTIES INVESTMENT PROPERTIES
2 1 FY 2019 RESULTS HIGHLIGHTS 2 DEVELOPMENT PROPERTIES 3 INVESTMENT PROPERTIES 4 FINANCIAL POSITION 5 APPENDIX
Slide 3: FY 2019 Results Highlights
3 1 FY 2019 RESULTS HIGHLIGHTS KERRY PROPERTIES LIMITED FY 2019 ANNUAL RESULTS
Slide 4: FY 2019 Results Highlights
FY 2019 RESULTS HIGHLIGHTS 4 REVENUE PROPERTY SALES PROPERTY RENTAL HOTEL OPERATIONS -16% -23% +1% -7% HK$ 18.0B HK$ 11.2B HK$ 4.9B HK$ 1.9B UNDERLYING PROFIT UNDERLYING PROFIT FULL YEAR DIVIDEND NET DEBT / TOTAL EQUITY (BEFORE 2018 EXCEPTIONAL ITEMS) (AFTER 2018 EXCEPTIONAL ITEMS) HK$ -10% HK$ +61%
Slide 5: FY 2019 Results Highlights
FY 2019 RESULTS HIGHLIGHTS 5 HONG KONG PROPERTY Key Properties Sold ✓ Mantin Heights, The Bloomsway, Mont Rouge New Investment Property ✓ Resiglow - Bonham (8/2019) ✓ Two warehouses in Sha Tin and Chai Wan (3/2019) Land Acquisition ✓ Wong Chuk Hang Station Package Four Property Development (10/2019)
Slide 6: Financial Summary
FINANCIAL SUMMARY 6 HK$ million Note FY 2019 FY 2018 Change Revenue 18,025 21,433 -16% Gross profit 8,984 9,468 -5% Share of results of associates and joint ventures 1,585 2,142 -26% Underlying profit (before provision) 5,396 6,020 -10% Provision for impairment loss for a project in Macau - (1,175)
Slide 7: Operating Segments
OPERATING SEGMENTS 7 HK$ million Revenue Gross Profit Gross Margin * Recurrent revenue Note FY 2019 FY 2018 Change FY 2019 FY 2018 Change FY 2019 FY 2018 Property sales 11,161 14,475 -23% 4,442 4,780 -7% 40% 33% HK N1 5,011 6,959 -28% 2,334 2,399 -3% 47% 34% Mainland N2 6,150 7,516 -18% 2,108 2,381
Slide 8: Development Properties
8 2 DEVELOPMENT PROPERTIES KERRY PROPERTIES LIMITED FY 2019 ANNUAL RESULTS
Slide 9: Development Properties Overview
DEVELOPMENT PROPERTIES OVERVIEW 9 Contracted Sales FY 2019 FY 2018 HK$ HK Mainland HK Contracted Sales $6.6B $8.4B 15.1B Saleable Area Sold Approx. 194,000 s.f Approx. 278,000 s.f Recognized Sales Subsidiaries $5.0B $7.0B 6.7B Recognized Projects Mont Rouge ( newly launched in Apr-2019 ), Mantin Hei
Slide 10: Development Properties – HK Projects on Sale
DEVELOPMENT PROPERTIES – HK PROJECTS ON SALE 10 Accumulative sales performance up to 29/2/2020: MONT ROUGE • Total units: 45 • 1st launch in 4/2019 • Construction completed • Contracted sales $0.8B • ASP: $89,000 psf MANTIN HEIGHTS THE BLOOMSWAY • Total units: 1,429 • Total units: 1,100 • 1st launch
Slide 11: Development Properties – Mainland
DEVELOPMENT PROPERTIES – MAINLAND 11 Major projects on sale in FY 2019: Mainland saleable resources (as at 31 Dec 2019) Hangzhou Shenyang Hangzhou Castalia Court Arcadia Height Lake Grandeur 87% Completed 13% Properties Residential 76% properties under development Office, retail 11% and others Qinhu
Slide 12: Investment Properties
12 3 INVESTMENT PROPERTIES KERRY PROPERTIES LIMITED FY 2019 ANNUAL RESULTS
Slide 13: Investment Properties – Overview
INVESTMENT PROPERTIES – OVERVIEW 13 Total Property Rental Mainland Eight Mixed-Use Properties in Major Cities (includes attributable rental income from associates) HK$ million HK Mainland Shanghai Beijing Shenzhen Pudong 1998 2008 2011 5,291M 5,345M +1% Shanghai Tianjin Hangzhou JingAn 2015 2016 201
Slide 14: Investment Properties – Mainland Completed Properties
INVESTMENT PROPERTIES – MAINLAND COMPLETED PROPERTIES 14 Mainland Property Rental • GFA(100%)* 1.5M s.f Gross rental revenue: HK$4.0B Beijing • Occupancy (@ 31 Dec 2019) * 96% (includes attributable rental income from associates) Kerry Centre • Yield on Cost * 22% • Completion 1998 Attributable GFA
Slide 15: Investment Properties – Shenyang Kerry Centre
INVESTMENT PROPERTIES – SHENYANG KERRY CENTRE 15 OFFICE (PH 1) OFFICE (PH 2) Completed in 2014 Completed in 2018 HOTEL (PH 1) Completed in 2014 SHOPPING MALL (PH2) Completed in 2018 PHASE 3 Project Summary Ph 1 Ph 2 Ph 3 Total GFA (s.m) 329,800 233,400 458,800 Retail (for sale / lease): 21,800 69,30
Slide 16: Shenyang Kerry Centre
INVESTMENT PROPERTIES – SHENYANG KERRY CENTRE 16 SHENYANG KERRY CENTRE COMMERCIAL & OFFICE Office Ph 2 – Enterprise Square Shopping Mall – Kerry Parkside • Completion 2H 2018 • Completion 2H 2018 • GFA (s.m) 54,800 • GFA (s.m) 75,300 • Committed space • Committed space 51% 88% (as of 2/2020) ( as of
Slide 17: Investment Properties – Under Development Qianhai Kerry Centre
INVESTMENT PROPERTIES – UNDER DEVELOPMENT 17 QIANHAI KERRY CENTRE Site #3 T2 Office T1 Office T8 Office A3 Apartment Hotel A2 Apartment T9 A1 Apartment Project Site #1 Site #2 Site#3 T7 Summary Office (Bank of East Asia) Land acquisition Jan-2015 Dec-2016 Dec-2018 No. of Towers 5 (T1 T2 A1 A2 A3) 3
Slide 18: Qianhai Kerry Centre
INVESTMENT PROPERTIES – UNDER DEVELOPMENT 18 On-site office show flat QIANHAI KERRY CENTRE PH 1 OFFICE - TARGET COMPLETION 2H 2020 Office T2 rooftop KERRY PROPERTIES LIMITED FY 2019 ANNUAL RESULTS
Slide 19: Investment Properties – Hong Kong
INVESTMENT PROPERTIES – HONG KONG 19 HK Property Rental ▪ Megabox continues to achieve positive rental Gross rental revenue: HK$1.4B Commercial reversion with an average unit rent of $32 psf (includes attributable rental income from associates) 1.2M s.f and occupancy nearly 100% as at 31 Dec 2019 At
Slide 20: Resiglow – Bonham
INVESTMENT PROPERTIES – HONG KONG 20 RESIGLOW – BONHAM SAI YING PUN Project Particulars GFA: 68,000 sf Storeys: 28-storey Leasing Progress Total nos. of units: 156 Occupation permit obtained: 7/2019 2BR: 500 sf (26 units) 1BR: 300 sf (104 units) 31 Dec 2019 Occupancy : 59% Studio: 290 sf (26 units)
Slide 21: Financial Position
21 4 FINANCIAL POSITION KERRY PROPERTIES LIMITED FY 2019 ANNUAL RESULTS
Slide 22: Financial Position
FINANCIAL POSITION 22 As at 31 As at 31 Debt Maturity Profile HK$ million Dec 2019 Dec 2018 Change Total Debt : $39,541M HK$ million Total Debt 39,541 33,111 +19% Cash and bank Fixed Rate Bonds 12,255 14,384 -15% balance Bank Loans Net Debt 27,286 18,727 +46% Undrawn Bank Loan 12,590 12,325 +2% Faci
Slide 23: Appendix
23 5 APPENDIX A. FY 2019 Contracted Sales - HK B. FY 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 KERRY PROPERTIES LIMITED FY 2019
Slide 24: A. FY 2019 Contracted Sales – HK
A. FY 2019 CONTRACTED SALES – HK 24 Projects on sale KPL’s Total Units Accumulative Inventory ASP achieved Sales interest project sold in units sold as at as at 31 Dec in FY 2019 proceeds in (%) units FY 2019 31 Dec 2019 2019 (units) HK$ psf FY 2019^ HK$ bn MAJOR PROJECTS 1 Mantin Heights 100% 1,429
Slide 25: B. FY 2019 Contracted Sales – Mainland
B. FY 2019 CONTRACTED SALES – MAINLAND 25 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 FY 2019 RMB psm 1 Lake Grandeur, Hangzhou 逸庐 R 566 5,223 106,300 75% 2 Hangzhou Castalia Court 杭州云荷廷
Slide 26: C. Major Properties Under Development – HK
C. MAJOR PROPERTIES UNDER DEVELOPMENT – HK 26 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 2021 100 342,769 in progress 2 Wong Chuk Hang Station Wong Chuk R Superstructu
Slide 27: D. Major Properties Under Development – Mainland
D. MAJOR PROPERTIES UNDER DEVELOPMENT – MAINLAND 27 Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) MAJOR MIXED-USE DEVELOPMENT 1 Shenyang Kerry Centre Shenyang R Interior decoration work in progress 2H 2020 60 233,462 Phase II - Arcadia He
Slide 28: D. Major Properties Under Development – Mainland (Con't)
D. MAJOR PROPERTIES UNDER DEVELOPMENT – MAINLAND (CON’T) 28 Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interes Attributable t (%) GFA (s.f.) OTHER INVESTMENT PROPERTIES (CON’T) 8 Kunming Complex Kunming R/H Basement structural work in 2022 55 382,925 Development progress
Slide 29: E. Mainland Major Completed Mixed-Use Properties
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES 29 31 Dec 2019 GFA & Occupancy Attri GFA Beijing Shanghai Shenzhen Hangzhou Shenyang Tianjin Jinan Total Occupancy (000s s.f.) Office 711 1,388 1,552 102 354 - 195 4,302 90% Commercial 98 1,096 104 798 486 435 34 3,051 93% Apartment 277 774 - - - - -
Slide 30: E. Mainland Major Completed Mixed-Use Properties (Con't)
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 30 Occupancy rates (by segment) As at 31 Dec 2019 As at 31 Dec 2018 Serviced Apartment 92% 93% Office 98% 99% 1 Beijing Kerry Centre Commercial 94% 85% Average 96% 96% Serviced Apartment 94% 87% Office 97% 99% 2 Jing An Kerry Centre Commercial
Slide 31: E. Mainland Major Completed Mixed-Use Properties (Con't)
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 31 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 addre
Slide 32: E. Mainland Major Completed Mixed-Use Properties (Con't)
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 32 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 33: E. Mainland Major Completed Mixed-Use Properties (Con't)
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 33 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 34: E. Mainland Major Completed Mixed-Use Properties (Con't)
E. MAINLAND MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 34 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 35: F. Land Bank – Overview
F. LAND BANK – OVERVIEW 35 Total Property Portfolio Attributable GFA: Approx. 48.0M s.f. (as of 31 Dec 2019) Held for sale 4% Hotel Macau 10% 4% PUD 56% Overall – Overseas 9% Overall – Mainland 75% By Type By Location HK 12% Completed IP 30% Commercial 14% Hotel 4% Macau 7% Overseas 8% PUD – Office
Slide 36: F. Land Bank – HK
F. LAND BANK – HK 36 HK Land bank Attributable GFA (‘000 s.f) Hotel 1% Apartment 16% Completed Investment Properties 4,196 Warehouse 23% Warehouse 1,266 Office 5.6M s.f in Commercial 1,224 15% attributable Office 835 GFA Apartment 871 Commercial 22% Properties under development 953 Residential 23% C
Slide 37: F. Land Bank – Mainland
F. LAND BANK – MAINLAND 37 Mainland Land bank Attributable GFA (‘000 s.f) Hotel 14% Commercial 18% Completed Investment Properties 8,404 Commercial 3,051 36.0M s.f Residential Office 4,302 attributable 33% GFA Apartment 1,051 Office Properties under development 21,826 32% Apartment 3% Completed prop
Slide 38: Disclaimer
DISCLAIMER 38 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