Slide 1: FY 2020 Annual Results Investor Presentation
FY 2020 ANNUAL RESULTS INVESTOR PRESENTATION 18 MARCH 2021
Slide 2: Key Summary
KEY SUMMARY Profit Attributable to Revenue Gross Profit Shareholders Full Year Dividend HK$14.5B HK$8.4B HK$5.4B HK$1.35/share -19% YoY -7% YoY -22% YoY Maintained YoY Margin 58% +8% YoY Payout ratio 46.4% Property Sales -24% YoY Property Sales -3% YoY Underlying Profit HK$4.2B -22% YoY Interim HK$0
Slide 3: FY 2020 Results Highlights
FY 2020 RESULTS HIGHLIGHTS HONG KONG PROPERTY Key Properties Sales ✓ The Bloomsway, Mantin Heights, Mont Rouge Land Acquisition ✓ LOHAS Park Package Thirteen (October 2020) 2021 Major DP Launches ✓ 10 LaSalle, THE SOUTHSIDE Package Two, 3 Lung Kui Road MAINLAND PROPERTY ✓ Fuzhou Rivercity, Hangzhou
Slide 4: FY2020 Results Snapshot: Overall Gross Margins Grew 8% YoY to 58%
FY2020 RESULTS SNAPSHOT Overall Gross Margins Grew 8% YoY to 58% Higher margins on property sales, while maintaining IP margins • Strong Property Sales margins of 50% were driven by high-end luxury projects in Gross Profit Margin Performance Hong Kong and the Mainland. 77% 77% • Higher margins were
Slide 5: Development Properties: Strong Contracted Sales Performance
DEVELOPMENT PROPERTIES Strong Contracted Sales Performance Surpassed Full Year sales target of HK$8B by 61% FY 2020 Contracted Sales +45% YoY Surpassed Full Year Sales Target by 61% 2020 Actual vs. 2020 Actual vs. HK$ billion 2019 Actual HK$ billion Target 12.9B + 45% 12.9B + 61% 8.9B + 246% 8.0B 7.
Slide 6: Lohas Park Package Thirteen
DEVELOPMENT PROPERTIES – NEW ACQUISITION Lohas Park Package Thirteen Scenic Tseung Kwan O waterfront MTR development Project Particulars Tender Award Date 30 October 2020 Residential GFA (s.f) 1,546,722 KPL’s Interest 25% Completion 2026 Image tbc LOHAS Park Package 13 KERRY PROPERTIES LIMITED • FY
Slide 7: Major Launches in 2021 (Hong Kong)
DEVELOPMENT PROPERTIES – 2021 HK LAUNCHES Major Launches in 2021 10 LaSalle THE SOUTHSIDE Package Two 3 Lung Kui Road WCH Station sites 3 Lung Kui Road Mont Rouge Launched in 2021 February Upcoming Launch in 2021 2H Upcoming Launch in 2021 2H Ongoing Sales Mont Rouge Mantin Heights The Bloomsway Lau
Slide 8: Major Launches in 2021 (Mainland)
DEVELOPMENT PROPERTIES – 2021 MAINLAND LAUNCHES Major Launches in 2021 Kunming Qinhuangdao Phase 2 Upcoming Launch in 2021 Upcoming Launch in 2021 Fuzhou Apartments Qianhai Phase 1 Shenyang Phase 3a Zhengzhou New Phases New phase in 2021 New phase in 2021 New phase in 2021 New phases in 2021 KERRY P
Slide 9: Resilient Results from Investment Properties Portfolio
INVESTMENT PROPERTIES Resilient Results from Investment Properties Portfolio Robust 2H 2020 performance & recovery despite a challenging environment Property Rental Revenue Hong Kong IP – As at 31 Dec 2019 As at 31 Dec 2020 HK$ million Occupancy rates YoY Variance Residential 81% 83% Retail 100% 100
Slide 10: Investment Properties – Overview
INVESTMENT PROPERTIES – OVERVIEW Total Property Rental Revenue Mainland - Eight Completed Mixed-Use Properties in Major Cities (Including attributable rental income from associates) HK$ million Shanghai Shanghai YoY Beijing Shenzhen Pudong JingAn Variance 1998 2008 2011 2013 5,345 5,246 -2% Qianhai
Slide 11: Shanghai Pudong Mixed-Use Development
INVESTMENT PROPERTIES - NEW ACQUISITION Shanghai Pudong Mixed-Use Development Consortium with GIC Real Estate Project Summary Tender Award Date February 2021 Site Area (s.m) 66,000 Approx. GFA (s.m) Total 390,000 Retail 219,000 Residential 45,000 Office 25,000 Carpark 98,000 Others 2,000 KPL’s Inter
Slide 12: Resilient Asset Base Enables Steady Recurrent Profit
INVESTMENT PROPERTIES Resilient Asset Base Enables Steady Recurrent Profit Property rental margins maintained at 77% FY 2020 Gross Profit Breakdown Recurrent 28% Mainland 72% 51% 49% 49% 72% Mainland HK Recurrent Non-recurrent HK$ million Gross Profit Gross Margin FY 2020 FY 2019 Change FY 2020 FY 2
Slide 13: Non-core Asset Disposal
CAPITAL MANAGEMENT Non-core Asset Disposal - Unlocking asset value to enable recycling of capital FY2020 Non-core Asset Disposals Sales Value • To optimize our portfolio and improve returns for our HK$ mill Total 1,035 shareholders, the Group continuously reviews our assets on an ongoing basis. For
Slide 14: Financial Position: Strengthened Balance Sheet
FINANCIAL POSITION Strengthened Balance Sheet Cash and bank balance improves 39% YoY; Gearing declined by 1.7% HK$ million As at 31 Dec 2020 As at 31 Dec 2019 Change Total Debt 44,534 39,541 +13% Cash and bank balance 16,995 12,255 +39% Net Debt 27,539 27,286 +1% Undrawn Bank Loan Facilities 16,131
Slide 15: Debt Maturity Profile
FINANCIAL POSITION Debt Maturity Profile Enhanced risk management by redistributing & lengthening our funding structure to be more in line with our underlying assets Debt Maturity Profile HK$ million 6,912 2,325 10,681 8,998 7,942 6,606 4,587 3,395 Within 1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Yea
Slide 16: Appendix
16 APPENDIX A. Financial Summary and Group Operating Segments B. FY 2020 Contracted Sales – Overview / HK / Mainland C. Investment Properties – HK / Mainland D. Major Properties Under Development – HK / Mainland E. Land Bank – Overview / HK / Mainland KERRY PROPERTIES LIMITED • FY 2020 ANNUAL RESULT
Slide 17: A. Financial Summary
A. FINANCIAL SUMMARY HK$ million FY 2020 FY 2019 Change Revenue 14,526 18,025 -19% Gross profit 8,387 8,984 -7% Share of results of associates and joint ventures * 1,597 1,585 +1% Underlying profit 4,233 5,396 -22% Net increase in fair value in investment properties 1,170 1,501 -22% Reported profit
Slide 18: A. Group Operating Segments
A. GROUP OPERATING SEGMENTS HK$ million Revenue Gross Profit Gross Margin Note FY 2020 FY 2019 Change FY 2020 FY 2019 Change FY 2020 FY 2019 Property sales 8,519 11,161 -24% 4,300 4,442 -3% 50% 40% HK N1 3,264 5,011 -35% 1,313 2,334 -44% 40% 47% Mainland N2 5,255 6,150 -15% 2,987 2,108 +42% 57% 34%
Slide 19: B. FY 2020 Contracted Sales – HK
B. FY 2020 CONTRACTED SALES – HK Projects on sale KPL’s Total Units Accumulative units Inventory ASP achieved Sales proceeds in interest project sold in sold as at as at 31 Dec 2020 in FY 2020 FY 2020^ (%) units FY 2020 31 Dec 2020 (units) HK$ psf HK$ bn MAJOR PROJECTS Resi: 49,900 1 Mont Rouge 100%
Slide 20: B. FY 2020 Contracted Sales – Mainland
B. FY 2020 CONTRACTED SALES – MAINLAND Major projects on sale Product Contracted GFA Sold ASP KPL’s (100% subsidiaries + KPL’s interest for type sales ^ s.m achieved interest associates) RMB’M in FY 2020 RMB psm 1 Qianhai 1 - residential 深圳前海一期 R 1,564 14,030 111,500 100% 2 Lake Grandeur, Hangzhou 逸
Slide 21: C. Investment Properties – HK
C. INVESTMENT PROPERTIES – HK HK Property Rental ▪ Occupancy at 31 Dec 2020 : 100% Gross rental revenue: HK$1.4B Retail ▪ Megabox’s average unit rent of $28 psf (includes attributable rental income from associates) 1.2M s.f Attributable GFA 4.1M s.f Occupancy @ 31 Dec 2020 ▪ Occupancy at 31 Dec 2020
Slide 22: C. Investment Properties – Mainland
C. INVESTMENT PROPERTIES – MAINLAND Mainland Property Rental • GFA(100%)* 1.5M s.f Beijing • Occupancy (@ 31 Dec 2020) * 89% Gross rental revenue: HK$3.8B Kerry Centre • Yield on Cost * 20% (Revenue includes attributable rental income from associates. Occupancy excludes • Completion 1998 offices and
Slide 23: C. Investment Properties – Mainland GFA & Occupancy by Project
C. INVESTMENT PROPERTIES – MAINLAND GFA & OCCUPANCY BY PROJECT 31 Dec 2020 GFA & Occupancy Attri GFA Beijing Shanghai Shenzhen Hangzhou Others Total Occupancy (000s s.f.) Office 711 1,388 2,839 102 549 5,589 91% ^ Retail 98 1,096 327 798 955 3,274 89% ^ Residential 277 774 - - - 1,051 84% Total 1,08
Slide 24: C. Investment Properties – Mainland Occupancy by Segment
C. INVESTMENT PROPERTIES – MAINLAND OCCUPANCY BY SEGMENT Occupancy rates (by segment) As at 31 Dec 2020 As at 31 Dec 2019 Residential 92% 92% Office 88% 98% 1 Beijing Kerry Centre Retail 87% 94% Average 89% 96% Residential 96% 94% Office 95% 97% 2 Jing An Kerry Centre Retail 91% 95% Average 94% 97%
Slide 25: C. Mainland Major Mixed Use Portfolio
C. INVESTMENT PROPERTIES – MAINLAND MAJOR MIXED USE PORTFOLIO Jing An Kerry Centre, Shanghai Puxi GFA ( million s.f.) 3.7M s.f Retail 1.0 • Located in the heart of Shanghai’s Nanjing Road business district Office 1.7 • A pre-eminent shopping venue and exclusive office address in Residential 0.2 Shan
Slide 26: C. Mainland Major Mixed Use Portfolio
C. INVESTMENT PROPERTIES – MAINLAND MAJOR MIXED USE PORTFOLIO Beijing Kerry Centre 2.2M s.f GFA ( million s.f.) Retail 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 and financial Residential 0.4 center and within
Slide 27: C. Mainland Major Mixed Use Portfolio
C. INVESTMENT PROPERTIES – MAINLAND MAJOR MIXED USE PORTFOLIO Tianjin Kerry Centre Ph 1 1.7M s.f GFA ( million s.f.) Retail 0.9 • Mixed-use development located on the east bank of the Haihe CBD in Hotel 0.8 Hedong District Total 1.7 • Phase I of the development includes a hotel, upscale residences f
Slide 28: C. Mainland Major Mixed Use Portfolio
C. INVESTMENT PROPERTIES – MAINLAND MAJOR MIXED USE PORTFOLIO Shenyang Kerry Centre Ph 1 & 2 2.1M s.f GFA ( million s.f.) Retail 0.8 • Mixed-use development located at the east side of Qingnian Street Office 0.6 • Include a hotel, offices, a shopping mall and residences Hotel 0.7 • Phase I of the de
Slide 29: D. Major Properties Under Development – HK
D. MAJOR PROPERTIES UNDER DEVELOPMENT – HK Name Location Type Stage of Completion Expected KPL’s Buildable Completion Interest GFA* (%) (s.f.) 1 3 Lung Kui Road Beacon Hill R Interior finishing work 1H 2021 100 342,769 in progress 2 THE SOUTHSIDE Wong Chuk Hang R Foundation work 2025 50 319,153 Pack
Slide 30: D. Major Properties Under Development – Mainland
D. MAJOR PROPERTIES UNDER DEVELOPMENT – MAINLAND 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 Phase III Shenyang R /O/ RT Residential: Superstructure work in In phases from 60 2,938,300
Slide 31: D. Major Properties Under Development – Mainland
D. MAJOR PROPERTIES UNDER DEVELOPMENT – MAINLAND Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest (%) Attributable GFA (s.f.) OTHER INVESTMENT PROPERTIES (CON’T) 7 Fuzhou Cangshan Complex Fuzhou R/O/RT Superstructure, curtain wall 2022 100 3,517,492 Development install
Slide 32: D. Qianhai Phase 1 partially completed in 2H 2020
D. MAJOR PROPERTIES UNDER DEVELOPMENT – MAINLAND Qianhai Phase 1 partially completed in 2H 2020 Site #3 T2 Office T1 Office T8 Office T6 Residential T9 Hotel T5 Residential T3 Residential Project Summary Site #1 Site #2 Site#3 T7 Office (Bank of East Asia) Land acquisition Jan-2015 Dec-2016 Dec-2018
Slide 33: E. Land Bank – Overview
E. LAND BANK – OVERVIEW Total Property Portfolio Attributable GFA: Approx. 47.6M s.f. (as of 31 Dec 2020) Held for sale 4% Hotel Macau 10% PUD 4% 53% Overall – Overseas Overall – Mainland 9% 75% By Type By Location HK 12% Completed IP 33% Retail Hotel Residential for lease 16% 5% 1% Macau 8% Oversea
Slide 34: E. Land Bank – HK
E. LAND BANK – HK HK Land bank Attributable GFA (‘000 s.f) Hotel Residential 1% for lease 15% Warehouse Completed Investment Properties 4,128 22% Warehouse 1,266 Office 13% 5.8M s.f in Retail 1,213 attributable Office 778 GFA Residential 871 Retail 21% Properties under development & others 1,295 Res
Slide 35: E. Land Bank – Mainland
E. LAND BANK – MAINLAND Mainland Land bank Attributable GFA (‘000 s.f) Hotel 14% Retail Completed Investment Properties 9,914 20% Retail 3,274 35.4M s.f Residential for sale 31% Office 5,589 attributable GFA Residential 1,051 Properties under development 19,906 Office 31% Residential for lease Compl
Slide 36: Disclaimer
DISCLAIMER 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 information,