Sun Hung Kai Properties Limited · HKEX:16
Sun Hung Kai Properties — FY2000/01 Earnings Presentation
20 slides from Sun Hung Kai Properties's earnings presentation, Sep 27, 2001
Slide 1: Sun Hung Kai Properties FY 2000/01 Final Results
SUN HUNG KAI PROPERTIES FY 2000/01 FINAL RESULTS 27 September 2001
Slide 2: Contents
Contents ! Result Highlights ! Business Review ! Prospects Sun Hung Kai Properties 2
Slide 3: Business Highlights
Business Highlights ! Completed 4.1 million square feet of development properties - of which 3.6 million square feet are residential properties - sold 85% of residential properties completed during the year - Le Sommet and Chelsea Heights contributed to the high - -average margin of 33.8% ! Modest r
Slide 4: Results Highlights
Results Highlights Year ended 30 June 2001 2000 change Net profit (HK$ m) 8,330 10,822 23.0% Net profit – adjusted for gain from SUNeVision’s listing (HK$ m) 8,330 8,134 2.4% Earnings per share (HK$) 3.47 4.51 23.0% Total dividend per share (HK$) 1.55 1.75 11.4% Dividend payout ratio 44.7% 38.8% Sun
Slide 5: Final Results (HK$ million)
Final Results (HK$ million) Year ended 30 June 2001 2000 change Property sales 3,625 4,078 11% Rental income 4,073 4,059 <1% Property management 252 234 8% Hotel 195 150 30% Other businesses 122 263 54% Other revenue less unallocated expenses 62 (444) N/A Profit from operation 8,329 8,340 <1 % Net f
Slide 6: Financial Highlights
Financial Highlights As at 30 June 2001 2000 change HK$m HK$ per share Cash 9,061 10,414 13% Borrowings (28,992) (28,389) 2% Net debt (19,931) (17,975) 11% Net gearing ratio* 15.8% 14.9% Total assets 178,942 74.5 170,821 5% Shareholders’ funds 126,007 52.5 120,904 4% * Net gearing ratio = net debt t
Slide 7: Projects Completed in FY 2000/01
Projects Completed in FY 2000/01 Project Interest Attributable GFA (square feet) % Residential Retail Data Centre Royal Peninsula 50 739,000 Oscar by the Sea Phase1 JV 447,000 Le Sommet 100 390,000 Villa Premiere 100 217,000 Villa Esplanada Phase 3 22.5 193,000 Grand Villa 100 24,000 6,000 Ocean Sho
Slide 8: Land Bank Added in FY 2000/01
Land Bank Added in FY 2000/01 Project Usage Group’s Attributable Interest GFA % square feet Airport Railway O/S/R/A/H JV 4,698,000 Kowloon Station Development Packages 5, 6 & 7 KIL 11145, Farm Road R/S 100 268,000 New Kowloon Marine R/S 34 376,000 Lot 3, Lai Chi Kok Total 5,342,000 Key – O: Office,
Slide 9: Business Review
Business Review
Slide 10: Total Land Bank By Usage (Hong Kong)
Total Land Bank By Usage (Hong Kong) 54.1 million square feet Completed Investment Properties Properties (19.3 m sq. ft.) Under Industrial/ Office Development 20% (34.8 m sq. ft.) Shopping Centre Residential Hotel 5% 68% 5% Hotel Office Residential 4% 30% 5% Industrial/Office 8% Shopping Office Cent
Slide 11: Total Land Bank By Location (Hong Kong)
Total Land Bank By Location (Hong Kong) 54.1 million square feet Completed Investment Properties Properties (19.3 m sq. ft.) Under Development (34.8 m sq. ft.) New New Territories Kowloon Territories Kowloon 47% 27% 53% 35% Hong Kong Island Hong Kong Island 26% 12% Sun Hung Kai Properties 11
Slide 12: Residential Completions
Residential Completions ! Compound annual growth rate of residential completions over the next 3 years is about 14% (Attributable GFA in million square feet) Residential Financial Year properties Others Total 2001 Actual 3.55 0.50 4.05 2002 4.47 0.12 4.59 2003 Estimates 4.85 0.96 5.81 2004 5.21 1.58
Slide 13: Property Development
Property Development ! Brand name recognition of quality products and services ! Wide-range of flat sizes, substantial majority are small-to-medium sized units ! Increase production volume of residential properties ! 25% of residential development land bank with premium to be finalized ! 75% of resi
Slide 14: Property Investment
Property Investment ! High occupancy rate of 95% ! Maintain an optimal mix of quality portfolio ! Develop 8.0 million square feet of new investment properties, including two 6-star hotels above Hong Kong Station and Kowloon Station on the Airport Railway ! Dispose of non-core rental properties to en
Slide 15: Rental Income by Sector
Rental Income by Sector ! Gross rental income for FY 2000/01, including those from associates and joint ventures, increased by 3.7% to HK$5,877m Shopping Office Centre 25% 53% Car Park Luxury Residential 9% 8% Industrial/Office 5% Sun Hung Kai Properties 15
Slide 16: Prospects
Prospects
Slide 17: Hong Kong Property Market
Hong Kong Property Market ! Negative impact as a result of the tragic events in the US is likely to be short term ! Recent positive government measures on housing should enhance home buyers’ confidence ! Completion of new supply will fall after 2003 ! End-user driven market with sizeable pent up dem
Slide 18: Hong Kong Property Market (Cont'd)
Hong Kong Property Market (Cont’d) ! Strong property market fundamentals: - positive carry on home ownership - lowest mortgage rate on record - property prices back to early 1992 levels - strongest affordability for home buyers in 13 years Sun Hung Kai Properties 18
Slide 19: Strategy and Prospects
Strategy and Prospects ! Focus on Hong Kong property market ! Strengthen brand name ! Build superior quality properties in a cost effective manner ! Increase completion of residential properties for sale ! Develop new landmark investment properties; at the same time, sell non-core rental properties
Slide 20: Thank You
bd Thank You
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