Swire Properties Limited · HKEX:1972
Swire Properties — H1 2013 Earnings Presentation
44 slides from Swire Properties's earnings presentation, Aug 15, 2013
Slide 1: 2013 Interim Results | Analyst Briefing
2013 Interim Results | Analyst Briefing 15th August 2013
Slide 2: Financial Summary
Brickell CityCentre, Miami, U.S.A. Financial Summary
Slide 3: Results Highlights
Results Highlights Gross Rental Income Underlying Profit Equity Attri. to Shareholders HK$’M 8,557 9,015 4,390 4,711 HK$’M 6,935 2,435 2,812 HK$’M 176,043 192,434 197,542 + 3% + 7% + 15% -5% +10% +6% 2011 2012 1H 2012 1H 2013 FY12* 1H 2012* 1H 2013 Dec 11 Dec 12* Jun 13 (restated) (restated) (restat
Slide 4: Key Developments
Key Developments 2H 2013 Pinnacle One, Chengdu - Establishing a representative office in Jakarta, Indonesia which is expected to open in 2H 2013. ARGENTA, HK Aug 2013 - A substantial portion (approx. 89%) of Pinnacle One, the office DUNBAR PLACE, HK tower at the Daci Temple Project, was pre-sold. Ju
Slide 5: Financial Summary
Financial Summary HK$M 1H 2012 1H 2013 Change (Restated) Turnover 4,907 5,754 +17.3% Valuation gains on investment properties 7,103 4,068 -42.7% Operating profit 10,354 7,843 -24.3% Reported profit 9,854 6,952 -29.4% Underlying profit 2,435 2,812 + 15.5% Reported Earnings per share (HK$) 1.68 1.19 -
Slide 6: Earnings Reconciliation
Earnings Reconciliation Movement in Underlying Profit Earnings Reconciliation HK$’M HK$M 1H 2012 1H 2013 (Restated) + 208 (85) Attributable profit 9,854 6,952 2,812 + 13 Revaluation of inv. Props (7,905) (4,732) Deferred tax on inv. Props 357 409 + 82 Realised profit on sale of inv. + 159 - 23 props
Slide 7: Movement in Investment Properties
Movement in Investment Properties The increase in the valuation of investment property portfolio principally reflects higher rental income, particularly at the Island East offices in Hong Kong. Movement in Investment Properties * Fair Value Gains Breakdown (excl. Hotels & Investment Properties hel
Slide 8: Investment Portfolio
Taikoo Li Sanlitun, Beijing Investment Portfolio
Slide 9: Gross Rental Income
Gross Rental Income Gross Rental Income Gross rental income increased by 7.3%. HK$’M 7,875 8,557 9,015 Positive rental reversions in HK office portfolio, particularly at the Island East offices. At Island East, rents are expected to remain robust due to high occupancy. 4,390 4,711 ~ (rental +4.6
Slide 10: HK Office Occupancy
HK Office Occupancy Completed HK GFA (sq ft) Occupancy Area Let (sq ft) Reversion(5) Attri. Island East Office Properties (100% basis) (30th Jun 2013) (New and Renewed (incl. Rent Interest Tenancies) Reviews) (1H 2013) (1H 2013) Pacific Place 2,186,433 97% 418,676 + 29% 100% Cityplaza 1,632,930 99%
Slide 11: HK Retail Occupancy
HK Retail Occupancy Completed HK GFA (sq.ft.) Occupancy Retail Sales Attri. Retail Properties (100% basis) (30th Jun 2013) Growth Interest (1H 2013) The Mall, Pacific Place 711,182 100% + 1.9% 100% Cityplaza Mall 1,105,227 100% + 2.9% 100% Citygate Outlets 462,439 100% + 19.2% 20% The Mall, Others(1
Slide 12: HK Investment Properties Update
HK Investment Properties Update Note: This simplified diagram is not to scale and is for illustration purpose only. *Redevelopment subject to government approval 28 Hennessy Road 28 Hennessy Road – Completed in 2H 2012 and approx. 52 % of the space has been leased, attracting interest from busines
Slide 13: HK Portfolio – Tenant Mix and Lease Expiry Profile
HK Portfolio – Tenant Mix and Lease Expiry Profile HK Office Tenant Mix(1) Lease Expiry Profile(1)(2) HK Retail Tenant Mix(1) Strong and diverse tenant base. Well-balanced lease expiry profile. Top 10 office tenants occupied approx. 20% of office area in HK. Top 10 retail tenants occupied ap
Slide 14: Property Portfolio – Mainland China
Property Portfolio – Mainland China Expected Attributable GFA of Completed Property Portfolio in Mainland China (1)(2) Exp. Attributable Completed GFA(1) (Entire Portfolio) Attributable 8.8 M sq ft Valuation 8.8 (Inv Props) HK$ 33.4 bn Dazhongli Project 7.2 7.0 7.0 (Shanghai) Daci Temple Project GFA
Slide 15: Property Portfolio – Mainland China
Property Portfolio – Mainland China Daci Temple Project Superstructure works Taikoo Li Sanlitun Occupancy : South at in progress. 94% & North at 89%. Pre-sale of Pinnacle Retail sales growth (1) : One (GFA: 89%). +15.5% Expected to open in Exercise of Put Option phases from 2014 by NCI.
Slide 16: Brickell CityCentre, Miami, United States
Brickell CityCentre, Miami, United States Land parcels acquired adjacent to Brickell CityCentre, subject to future planning. North Squared Site 700 Brickell Avenue 16 Note: This simplified diagram is not to scale and is for illustration purpose only.
Slide 17: Brickell CityCentre, Miami, United States
Brickell CityCentre, Miami, United States Artist’s Impression Located in the centre of the Brickell financial district of Miami. The planned Metromover Project Summary (100% Basis) light rail runs through the site. GFA 2.94 M sq ft A mixed-use development of approx. 2,935,000 sq.ft. (excluding c
Slide 18: Trading Portfolio
DUNBAR PLACE Artist’s Impression Trading Portfolio
Slide 19: Trading Property Update
Trading Property Update AZURA, Mid-Levels West ARGENTA, Mid-Levels West DUNBAR PLACE Artist’s Impression Artist Impression A 50-storey residential tower. A 37-storey tower of 30 A 23-storey tower of 53 Completed in 2012. whole-floor residential units. residential units. Sales of 111 (1) ou
Slide 20: HK Trading Portfolio
HK Trading Portfolio Finished / Expected Attributable Residential GFA Completions Hong Kong --- Mid-Levels West Portfolio in Hong Kong in 2013 – 2016 GFA (sq ft) 241,646 (1) 165,792 (2) 64,412 (3) 195,531 (2) Note: This simplified map is not to scale and is for illustrative purpose only HK Resid. –
Slide 21: HK Trading Portfolio
HK Trading Portfolio Trading Properties Being Sold or Saleable Area Total Unit Sold Actual / Actual / Development Status Int. Pre-sold (sq ft) Units / Pre- Expected Expected (As at 14th Aug 2013) (100% basis) sold Completion Handover AZURA, 2A Seymour Road 24,480 (1) 126 111(2) 2012 2012 - Completed
Slide 22: Financing
a | TE Be z NINDIGO, Beijing Financing D4 SwirE PROPERTIES
Slide 23: Net Debt and Gearing
Net Debt and Gearing Net Debt Reconciliation (HK$M) Jun 2013 Gearing Net debt as at 31st Dec 2012 (28,921) HK$’M 30,861 32,603 Net rental and fees receipts 4,136 Proceeds from property trading / development 686 Capex- PP&E and property investment (1,437) Development costs – Property Trading (758) Ne
Slide 24: Maturity Profile & Liquidity
Maturity Profile & Liquidity Maturity Profile of Available Committed Facilities (as at 30th Jun 2013) HK$M Dec 2012 Jun 2013 Total 42,004 1,180 6,747 5,252 6,883 7,708 6,177 300 3,878 3,879 Cash 1,940 3,627 Drawn 31,967 1,093 6,742 1,502 6,381 3,015 5,177 300 3,878 3,879 Undrawn - committed 7,338 10
Slide 25: Capital Commitments
Capital Commitments Profile of Capital Commitments – at 30th Jun 2013 HK$’M Expenditure Forecast Year of Expenditure Commitments* 6 mths ended 6 mths ended 2014 2015 2016 & At 30th Jun 2013 30th Jun 2013 31st Dec 2013 beyond Hong Kong 829 528 704 661 3,416 5,309 Mainland China 712 2,235 2,751 1,365
Slide 26: Prospects
28 Hennessy Road Prospects D4 SwirE PROPERTIES
Slide 27: Prospects
Prospects Hong Kong Office Hong Kong Retail Demand for the Group’s office space is likely to be Despite caution from some retailers, demand for affected by continued market weakness, particularly retail space at prime locations and well managed in the Central District of Hong Kong malls continue
Slide 28: Swire Properties in Five Years
Swire Properties in Five Years Expected Attributable GFA by Segments Expected Attributable GFA by Regions Expected Attri. Trading GFA GFA Sales to Complete GFA (‘000 sq ft) 20,870 25,441 + 22% (‘000 sq ft) 20,870 25,441 + 22% (3.3%) + 34% Exp. Units + 353% + 27% (8.8%) HK Residential (1) 667,381 sq
Slide 29: Thank you
TaiKoo Hui, Guangzhou Thank you
Slide 30: Appendix
Sino-Ocean Taikoo Li, Chengdu Artist Impression Artist Impression Appendix
Slide 31: Key Business Strategies
Key Business Strategies To enhance Swire Properties’ position as a leading developer, owner and operator of mixed use commercial properties in Mainland China and Hong Kong by continuing to implement the following business strategies 11) Continue to create value through transformational projects 22)
Slide 32: Property Portfolio
Property Portfolio Investment Props / Hotels Office Retail Hotels(3) Resid. Total Attributable Investment Props by Region (GFA) Attributable GFA (M sq ft)(1) Completed 9% Hong Kong 10.6 2.4 0.7 0.6 14.3 U.S.A. Mainland China 2.0 3.0 0.9 0.1 6.0 and others 2.3 M U.S.A. and Others - - 0.5 - 0.5 Sub-To
Slide 33: Completed Investment Portfolio
Completed Investment Portfolio Expected Attributable GFA of Completed Investment Portfolio (incl. Hotels) (1)(2) GFA 20,843 20,870 20,517 20,974 21,975 23,710 24,699 25,441 (‘000 sq ft) Somerset redevelopment Brickell CityCentre Daci Temple project completes (Phase II) Taikoo Li Sanlitun (20%) Dazho
Slide 34: Turnover Analysis
Turnover Analysis 1H 2013 Turnover Breakdown by Segments 1H 2013 Turnover Breakdown by Region HK$’M 5,754 HK$’M 5,754 44 76 0.8% 1.3% 41 431 0.7% 7.5% 571 881 9.9% 15.3% 4,711 81.9% 4,753 82.6% Comparison Comparison 1H12 1H13 1H12 1H13 Rental 4,390 4,711 HK 4,017 4,753 Trading 99 571 China 728 881 H
Slide 35: HK Portfolio Map
HK Portfolio Map Note: (1) The simplified maps are not to scale and are for illustrative purpose only. (2) GFA figures are for reference only. 35
Slide 36: Pacific Place Reinforcement
Pacific Place Reinforcement HK$2 billion(1) Completion of an office Propose to expand Three Completion of an office contemporisation project tower at 28 Hennessy Pacific Place with the tower at 8 Queen’s Road substantially completed Road which adds GFA redevelopment of two East(with GFA 81,346 sq ft
Slide 37: Island East Reinforcement
Island East Reinforcement Plan to commence first 23 Tong Chong Street Working on long term Have secured planning phase of the project with (about 75,129 sq ft) now plan for Island East with a approvals for the three the redevelopment of under redevelopment view to increasing its size Techno-centres
Slide 38: Taikoo Li Sanlitun, Beijing
Taikoo Li Sanlitun, Beijing Ongoing development works to enhance footfall and circulation Active management of tenant portolfio In April 2013, Sanlitun Village was renamed Taikoo Li Sanlitun. Project Summary (100% Basis) Increase in gross rental income reflected continued GFA 1.47 M sq ft improv
Slide 39: TaiKoo Hui, Guangzhou
TaiKoo Hui, Guangzhou The shopping mall opened in Sep 2011, and approx. 99% of the floor area was leased as at Project Summary (100% Basis) Jun 2013. GFA 3.84 M sq ft Retail sales at TaiKoo Hui Mall continue to be encouraging with retail sales growth of 28.8% Components Shopping Mall in 1H 2013.
Slide 40: INDIGO, Beijing
INDIGO, Beijing The shopping mall at INDIGO officially opened in Sep 2012. Tenants have committed to Project Summary (100% Basis) take 88%(1) of the retail space and approx. 78% of the shops were opened and trading as GFA 1.89 M sq ft at Jun 2013. Components Shopping Mall Footfall and retail sal
Slide 41: Daci Temple Project, Chengdu
Daci Temple Project, Chengdu Artist’s Impression Artist’s Impression A large-scale urban development comprising a street style retail complex (2-3 storey Project Summary (100% Basis) blocks), a boutique hotel, serviced apartments and a Grade A office tower, served by GFA 2.69 M sq ft the metro. Co
Slide 42: Dazhongli Project, Shanghai
Dazhongli Project, Shanghai Artist’s Impression Artist’s Impression A large-scale retail-led mixed-use development comprising a retail mall, two office Project Summary (100% Basis) towers and three hotels. GFA 3.47 M sq ft Prime location with significant frontage to Nanjing West Road and connect
Slide 43: Hotel Portfolio
Hotel Portfolio Managed Hotels No. of Interest Owned but Non-managed Hotels(1) No. of Rooms Interest Rooms Completed (100% basis) Completed (100% basis) HK The Upper House 117 100% HK Island Shangri-La 565 20% HK EAST, Hong Kong 345 100% HK JW Marriott Hotel 602 20% HK Headland Hotel 501 0% HK Conra
Slide 44: Valuation of Completed Investment Properties
Valuation of Completed Investment Properties Consistent value creation through continuous property investment and asset reinforcement. 2003 – June 2013 Valuation of Completed Investment Properties (excl. Hotels) * 187,198 201,981 207,366 Valuation of investment portfolio tripled in 10 years * Per