Cushman & Wakefield Ltd. · NYSE:CWK
Cushman & Wakefield — Q4 2022 Earnings Presentation
26 slides from Cushman & Wakefield's earnings presentation, 2022
Slide 1: Greater China Logistics Market Q4 2022
Cushman & Wakefield | Greater China Logistics Market Q4 2022 1
Slide 2: Key Trends & Overview
KEY TRENDS & OVERVIEW
Slide 3: Key Trends: Greater China's Logistics Market
KEY TRENDS Greater China’s Logistics Market China’s economy showed a recovery The overall logistics market rental Due to the impact of the COVID-19 In 2022, facing a complex and trend in Q4 2022, with GDP of demand continued to recover in Q4 2022. epidemic, developers have slowed their challenging i
Slide 4: Market Overview: Greater China's Logistics Market Q4 2022
MARKET OVERVIEW Greater China’s Logistics Market – Q4 2022 • The total stock of premium logistics warehouse space • Hong Kong’s total stock of premium logistics space • Total premium logistics stock increased to in mainland China reached 104 million sq m in Q4 was at 31.2 million sq ft (2.90 million
Slide 5: Macro-Economy
MACRO-ECONOMY
Slide 6: The Macro Economy: Major Logistics Indicators Q4 2022
THE MACRO ECONOMY Mainland China Q4 GDP Major Logistics Indicators – Q4 2022 Growth Rate 2.9% Mainland China Industrial Added Value National Fixed Asset Investment Y-o-Y Growth Rate Y-o-Y Growth Rate 2.5% 5.1% Mainland China Logistics Prosperity Index Mainland China Total Retail Sales 48.8% (July) A
Slide 7: The General Market
THE GENERAL MARKET
Slide 8: Mainland China Logistics Land Supply Q4 2022
THE PREMIUM LOGISTICS MARKET Mainland China Logistics Land Supply Q4 2022 Share of primary logistics land by industry 63,000 30% 56,000 25% 49,000 42,000 20% 35,000 15% 28,000 21,000 10% 14,000 5% 7,000 0 0% Jilin Anhui Hubei Yunnan Hebei Henan Sichuan Hunan Guizhou Heilongjiang Jiangsu Fujian Guang
Slide 9: The Premium Logistics Market
THE PREMIUM LOGISTICS MARKET 18 120% 16 100% 14 12 80% 10 60% 8 6 40% 4 20% 2 0 0% • Jiangsu, Guangdong and Zhejiang were the top three locations for total stock in Q4, with each market also slated for a large volume of scheduled future supply. Guangdong and Zhejiang will have more projects complete
Slide 10: Market Overview by Greater China Regions Q4 2022
THE PREMIUM LOGISTICS MARKET Market Overview by Greater China Regions – Q4 2022 North China (Beijing/Tianjin/Hebei/ Shandong/Liaoning/Jilin East China /Heilongjiang/Shaanxi/ Shanxi) Existing Stock New Supply (Shanghai/Jiangsu/Zhejiang/Anhui) Future Pipeline (2023–2025) S=Total Stock (mn sq m) V=Aver
Slide 11: Mainland China: Rent and Vacancy by Province
MAINLAND CHINA PREMIUM LOGISTICS MARKET 60 Beijing Average Asking Rent (RMB/sq Shanghai 45 Guangdong South China East China m/month) Jiangsu Zhejiang Hebei Tianjin Fujian Guizhou Guangxi North China 30 Anhui Yunnan Shanxi Henan Southwest China Hunan Hubei Jiangxi Sichuan Central China Shandong Chong
Slide 12: Mainland China Leasable Breakdown by Operator
THE PREMIUM LOGISTICS MARKET Mainland China Leasable Breakdown by Operator – Q4 2022 Due to the impact of the COVID-19 epidemic, developers have slowed their investment decisions. JD won a 50 mu warehouse site in Haikou, Hainan Province, which will be built according to the standards of the JD First
Slide 13: Investment Transaction Volume in Mainland China 2021 and 2022
THE PREMIUM LOGISTICS MARKET Investment transaction volume in Mainland China – 2021 and 2022 Data Centres, Apartments Data Centres 4% Hotels, 2% Hotels 4% 1% Apartments, 4% 6% Retail Industrial,10 5% % Mixed use Office/R&D Office/R&D, 47% 14% 51% Mixed use, 11% Industrial 21% Retail, 20% When consid
Slide 14: The Regional Markets
THE REGIONAL MARKETS
Slide 15: Premium Logistics Market: North China
PREMIUM LOGISTICS MARKET sq m (million) Q4 2022 New Supply:0.41mn sq m 30 • The premium warehouse market in North China remained stable. North China recorded 0.4 million sq m of new supply in Q4. Average monthly rent dropped 20 0.7% q-o-q to reach RMB30.3 per sq m. The vacancy rate for premium wareh
Slide 16: Premium Logistics Market: East China
PREMIUM LOGISTICS MARKET Current Stock, New & Future Supply sq m (million) 2022 Q4 New Supply: 0.58 mn sq m 40 • The East China premium warehouse market performance was stable in Q4. 30 Overall average monthly rent rose 0.6% q-o-q to reach RMB38.3 per sq m. The overall warehouse vacancy rate dropped
Slide 17: Premium Logistics Market: South China
Current Stock, New & Future Supply PREMIUM LOGISTICS MARKET sq m (million) 2022 Q4 New Supply: 0.56 mn sq m 14 12 • The South China premium warehouse market experienced strong demand in 10 7.9 mn sq m Q4. South China recorded 0.56 million sq m of new supply in Q4. The overall 8 vacancy rate dropped
Slide 18: Premium Logistics Market: Central China
Current Stock, New & Future Supply PREMIUM LOGISTICS MARKET sq m (million) 10 2022 Q4 New Supply: 0.12 mn sq m • The Central China premium warehouse market remained relatively stable. The 5 overall vacancy rate dropped 0.1 pp q-o-q to record 19.2%. Average monthly rent remained at RMB26.5 per sq m.
Slide 19: Premium Logistics Market: Southwest China
Current Stock, New & Future Supply PREMIUM LOGISTICS MARKET sq m (million) 15 2022 Q4 New Supply 百万 0.6 mn sq m 10 • Southwest South China recorded 0.6 million sq m of new supply in Q4. Having said this, but with solid demand, the overall vacancy rate dropped 0.1 pp q-o-q to reach 18.5%. Following t
Slide 20: Mainland China Major Market Logistics Dashboard Q4 2022
MAINLAND CHINA PREMIUM LOGISTICS MARKET Major Market Logistics Dashboard – Q4 2022 Supply to 2025 GFA Vacancy Change City Stock GFA (sq m) Rental Change (q-o-q) (sq m) (q-o-q/pct) Shanghai ↑ ↓ Tianjin ↓ ↑ Chengdu ↑ ↓ Chongqing ↑ ↑ Wuhan ↓ Shenyang ↑ ↓ Xian ↓ ↑ Jiaxing ↑ ↓ Hangzhou ↑ ↓ Guangzhou ↓ ↓
Slide 21: Taiwan: Current Stock, New & Future Supply
PREMIUM LOGISTICS MARKET • Taiwan’s exports decreased by 8.6% q-o-q in Q4 2022, with imports declining 4.1% q-o-q. The export figure in December hit a 20-month low, derived from low economic Current Stock, New & Future Supply growth, under high global inflation and tightening monetary policy. • The
Slide 22: Hong Kong: Current Stock and Future Supply
PREMIUM LOGISTICS MARKET Current Stock and Future Supply 40 35 Area (GFA, sq ft, millions) 30 • Whilst global economic headwind persisted, Hong Kong’s total exports and imports 25 fell further in Q4 by 21.7% and 18.8% y-o-y, respectively. Meanwhile, the city’s Q4 20 2022 GDP also recorded a decline
Slide 23: Premium Logistics Market: Transactions & Outlook
Outlook PREMIUM LOGISTICS MARKET Recent Notable Transactions & Outlook • The high-interest rate environment has prompted investors to stay conservative while investing in industrial assets, as the cost of borrowing has been lifted. Nevertheless, some PE funds are still seeking niche Notable Transact
Slide 24: The General Outlook
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Slide 25: General Outlook – Key Takeaways
THE PREMIUM LOGISTICS MARKET General Outlook – Key Takeaways • With the relaxation of epidemic prevention and control policies, and steady recovery in residential consumption and rapid growth in the manufacturing sector, the prime logistics warehouse market in South and East China is expected to rec
Slide 26: Contacts
Tony Su Ali Xia Head of Industrial & Logistics Property Industrial & Logistics Property Services, China Services, China tony.zy.su@cushwake.com ali.xia@cushwake.com Shaun Brodie Sabrina Wei Xiaoduan Zhang Rosanna Tang Head of Research www.cushmanwakefield.cn Head of Research Head of Research Head of