Prosperity Real Estate Investment Trust · HKEX:808
Prosperity Real Estate Investment Trust — FY2015 Earnings Presentation
26 slides from Prosperity Real Estate Investment Trust's earnings presentation, March 2016
Slide 1: Final Results
Final Results For the year ended 31 Dec 2015 March 2016
Slide 2: Disclaimer
Disclaimer This document was prepared by ARA Asset Management (Prosperity) Limited, in its capacity as the manager (“REIT Manager”) of Prosperity Real Estate Investment Trust (“Prosperity REIT”) solely for use at the presentation to analysts in relation to the announcement of the results of Prosperi
Slide 3: Table of Contents
Table of Contents Results Highlights Financial Review Operations Review Outlook & Strategies Appendix Prosperity REIT 2015 Final Results Presentation 3
Slide 4: Results Highlights
Results Highlights
Slide 5: Results Highlights
Results Highlights Revenue Net Property Distributable Distribution Income Income Per Unit 8.8% 10.7% 9.8% 8.5% HK$438.7m HK$345.5m HK$254.1m HK$0.1768 HK$403.4m HK$231.4m HK$0.1630 HK$312.1m FY14 FY15 FY14 FY15 FY14 FY15 FY14 FY15 Rental Occupancy Cost-to- Average Reversion Rate revenue Effective Ra
Slide 6: FY15 Key Takeaways
FY15 Key Takeaways 9 Chong Yip Street ● Net property income increased by 17.7% Y-o-Y ● Strong revenue uplift from an expiry profile of 55.2% in FY2014 Harbourfront Landmark ● Net property income increased by 55.6% Y-o-Y ● Strong revenue uplift from an expiry profile of 100.0% in 4Q2014 Defensive inv
Slide 7: Financial Review
Financial Review
Slide 8: Income Statement
Income Statement (HK$’000) FY15 FY14 Change 1. Outstanding performance in both occupancy and Revenue 438,723 403,413 +8.8% rental income in 9 Chong (93,244) (91,357) Yip Street Total property operating expenses +2.1% 2. Strong rental uplift in Net property income 345,479 312,056 +10.7% Harbourfront
Slide 9: Financial Position
Financial Position As at 31 Dec As at 31 Dec Change 2015 2014 Out of HK$10,419m investment properties5, Total assets (HK$m) 10,492.7 9,965.2 +5.3% HK$6,527m was pledged Borrowings1 (HK$m) 2,813.3 2,800.6 +0.5% Interest Rate6 Other liabilities (HK$m) 523.7 495.9 +5.6% Fixed : Floating 55% : 45% Net a
Slide 10: Debt Maturity Profile
Debt Maturity Profile No major refinancing needs until 2019 3,000 2,500 430 2,000 HK$ million 1,500 1,000 2,070 500 380 404 0 Jan 2017 2018 Jan 2019 Nov 2019 Unsecured 3-yr term loan @ HIBOR+150 bps Secured 5-yr term loan @ HIBOR+135 bps Secured 5-yr term loan @ HIBOR+145 bps Secured RCF @ HIBOR+135
Slide 11: Portfolio Valuation
Portfolio Valuation (HK$m) 31 Dec 2015 31 Dec 2014 Change The Metropolis Tower 3,122 3,042 +2.6% Prosperity Millennia Plaza 1,971 1,824 +8.1% 9 Chong Yip Street 1,088 1,079 +0.8% Harbourfront Landmark (portion) 514 461 +11.5% Prosperity Place 1,544 1,436 +7.5% Trendy Centre 1,010 955 +5.8% Prosperit
Slide 12: Operations Review
Operations Review Prosperity REIT 2015 Final Results Presentation 12
Slide 13: Property Income
Property Income Revenue Net Property Income Trendy Centre Trendy Centre Prosperity Prosperity HK$47.2m HK$35.4m Place Place Prosperity Center Prosperity Center HK$61.7m HK$46.7m HK$36.4m HK$27.6m 10.7% 10.2% 14.1% New Treasure 13.5% New Treasure Harbourfront 8.3% Harbourfront 8.0% Centre Centre Land
Slide 14: Occupancy Rates
Occupancy Rates Portfolio Occupancy Rates Above 95% Since 2006 (As at 31 Dec 2015) The Metropolis Tower 93.9% Prosperity Millennia Plaza 98.0% 9 Chong Yip Street 97.6% Harbourfront Landmark (portion) 100.0% Prosperity Place 93.7% Trendy Centre 95.7% Prosperity Center (portion) 98.2% New Treasure Cen
Slide 15: Commercial Tenants at Prosperity Place
Commercial Tenants at Prosperity Place As at 31 Dec 2015, retail/service trade tenants accounted for around 38.1% of gross rentable area of Prosperity Place. 5th Floor 11th Floor Ground Floor 6th Floor 13th Floor 7th Floor 18th Floor 23rd Floor 9th Floor 27th Floor Prosperity REIT 2015 Final Results
Slide 16: Marketing Campaigns for Prosperity Place
Marketing Campaigns for Prosperity Place Mid‐Autumn Festival Summer Education Prosperity REIT 2015 Final Results Presentation 16
Slide 17: Marketing Campaigns for Prosperity Place
Marketing Campaigns for Prosperity Place Chinese New Year Christmas Prosperity REIT 2015 Final Results Presentation 17
Slide 18: AEIs – Prosperity Millennia Plaza & Trendy Centre
AEIs – Prosperity Millennia Plaza & Trendy Centre ● Replaced an existing chiller set with a more energy-efficient model in both Prosperity Millennia Plaza and Trendy Centre, enabling about 15% in energy cost savings for air conditioning consumption Prosperity Millennia Plaza Before After Trendy Cent
Slide 19: AEIs – Chong Yip Street
AEIs – 9 Chong Yip Street Roof garden was set up in order to provide green building facilities for tenants’ enjoyment After Before After Prosperity REIT 2015 Final Results Presentation 19
Slide 20: Outlook & Strategies
Outlook & Strategies Prosperity REIT 2015 Final Results Presentation 20
Slide 21: Outlook & Strategies
Outlook & Strategies Stable and sustainable distribution to continue ● 100% payout ratio ● Defensive investment as proven in economic cycles ● 166.3%* total return since IPO DPU (HK$) 0.0871 0.0897 0.0815 0.0815 0.0744 0.0751 0.0660 0.0694 0.0555 0.0595 0.0607 0.0554 0.0544 0.0546 1H09 2H09 1H10 2H1
Slide 22: Outlook & Strategies
Outlook & Strategies Kowloon East (accounting for 33.1% of NPI) on track to become “CBD2” 9 Chong Yip Street – Completed AEIs to increase rental level Prosperity Place – Retail tenants driving up income 2016 AEIs focus in upgrading the facilities in The Metropolis Tower Prosperity REIT 2015 Final Re
Slide 23: Appendix
Appendix Prosperity REIT 2015 Final Results Presentation 23
Slide 24: Portfolio Map
Portfolio Map The Metropolis 1 Prosperity 5 Total Gross Rentable Area: 1.35m sq.ft. Tower Place GRA: 271,418 sq. ft. GRA: 240,000 sq. ft. Prosperity Trendy 2 6 Millennia Plaza Centre 6 GRA: 217,955 sq. ft. GRA: 173,764 sq. ft. 8 9 Chong Yip Prosperity Street 3 Center Property 7 GRA: 136,595 sq. ft.
Slide 25: Key Facts
Key Facts Key Facts as at 31 Dec 2015 IPO Date 16 Dec 2005 IPO Price HK$2.16 6.34% Indicative Yield (based on FY15 DPU of HK$0.1768 and closing unit price of HK$2.79 as at 31 December 2015) Number of Issued Units 1,436,853,915 Market Capitalization HK$4.01 billion (US$514.0 million) Average Daily Tr
Slide 26: Contacts
Contacts ARA Asset Management (Prosperity) Limited (as manager of Prosperity REIT) Ms. Mavis Wong Chief Executive Officer maviswong@ara.com.hk Mr. Vicho Chung Manager, Investments & Investor Relations vichochung@ara.com.hk Units 5508-10, 55/F, The Center 99 Queen’s Road Central Hong Kong Tel: +852 2
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