Sun Hung Kai Properties Limited · HKEX:16
Sun Hung Kai Properties — H1 FY2009 Earnings Presentation
22 slides from Sun Hung Kai Properties's earnings presentation, Mar 11, 2009
Slide 1: Sun Hung Kai Properties Limited FY2009 Interim Results
Sun Hung Kai Properties Limited FY2009 Interim Results 11 March 2009 1 Sun Hung Kai Properties Limited
Slide 2: Agenda
Agenda Interim Results Highlights Business Review Hong Kong Mainland Prospects 2 Sun Hung Kai Properties Limited
Slide 3: Interim Results Highlights
Interim Results Highlights 3 Sun Hung Kai Properties Limited
Slide 4: Interim Results Highlights
Interim Results Highlights Six months ended 31 December 2008 2007 Change Underlying net profit* (HK$m) 4,535 6,200 27% Underlying earnings per share* (HK$) 1.77 2.47 28% Reported net profit (HK$m) 692 13,626 95% Reported earnings per share (HK$) 0.27 5.42 95% Interim dividend per share (HK$) 0.80 0.
Slide 5: Profit Breakdown
Profit Breakdown 6 months ended 31 December (HK$m) 2008 2007 Change Property sales 1,782 3,735 52% Net rental income 3,522 2,839 24% Hotel operation 193 244 21% Telecommunications 93 191 51% Other businesses 834 697 20% Other (losses)/income (23) 322 n/a Unallocated administrative expenses (420) (35
Slide 6: Review of FY2009 Interim Results
Review of FY2009 Interim Results Property sales and presales of HK$7,513m during the period, versus HK$8,505m in the previous period 83% of sales (HK$6,208m) were from Hong Kong, mainly from Peak One in Sha Tin and La Grove in Yuen Long Mainland sales were HK$1,305m, mainly from MIXC Residence
Slide 7: Review of FY2009 Interim Results
Review of FY2009 Interim Results Net rental income rose 24% YoY Positive rental reversion for all sectors New rental income from Phase 1 of International Commerce Centre (ICC), HarbourView Place and Millennium City 6 Relatively stable occupancy and room rates for the hotel operation on avera
Slide 8: Business Review: Hong Kong
Business Review Hong Kong 8 Sun Hung Kai Properties Limited
Slide 9: Land Bank – Hong Kong
Land Bank – Hong Kong Attributable GFA (m sq ft) Properties under development 17.0 Completed investment properties 25.6 42.6 No major acquisitions in 1H FY2009 Over 24m sq ft (site area) of agricultural land Majority under conversion to residential use 9 Sun Hung Kai Properties Limited
Slide 10: Property Sales - Hong Kong
Property Sales - Hong Kong Maintain pipeline of launches despite short- term market volatilities Market sentiment affected by global financial turmoil Signs of stabilization for both volume and price seen in recent months Peak One in Sha Tin and La Grove in Yuen Long launched in 4Q2008 Ove
Slide 11: Property Sales - Hong Kong
Property Sales - Hong Kong The Cullinan at Kowloon Station was launched in February 2009 About 300 units were sold so far, and sales proceeds exceeded HK$6bn The Latitude is expected to be the next key project launch Urban Kowloon project with over 1,100 units More focus on time and cost e
Slide 12: Property Investment – Hong Kong
Property Investment – Hong Kong Gross Rental Income for 1H FY2009* Diversified rental (HK$4,800m) income base Residential Positive rental reversion 8% overall despite slowdown of leasing activities Occupancy remains high Shopping Office Centre at 94% 53% 30% Retail sector Rental income rel
Slide 13: Property Investment – Hong Kong
Property Investment – Hong Kong Office sector Vacancy remains low at IFC About 90% of ICC has been leased or pre-leased Morgan Stanley has already moved into Phase 1 of ICC and other major tenants of remaining phases will move in as planned Pre-leasing of Kowloon Commerce Centre is progres
Slide 14: Business Review: Mainland
Business Review Mainland 14 Sun Hung Kai Properties Limited
Slide 15: Land Bank – Mainland
Land Bank – Mainland Attributable GFA (m sq ft) Properties under development 52.3 Completed investment properties 3.0 55.3 No major acquisitions after FY2008 final results announcement in September 2008 Majority under development Expect gradual growth in completion in the next few years 15 Sun
Slide 16: Property Sales - Mainland
Property Sales - Mainland Sentiment has shown signs of improvement since late 2008 Pre-sales response of MIXC Residence in Hangzhou has been encouraging About 600 units were sold since its launch in August 2008 Completion of these residential units is scheduled in the middle of 2010 Other
Slide 17: Property Investment - Mainland
Property Investment - Mainland High occupancy at Shanghai Central Plaza offices with over 97% of space let Significant improvement in rental income at the renovated Beijing APM Construction of Shanghai IFC and Huai Hai Zhong Road project progressing smoothly The HSBC Tower at Shanghai IFC wa
Slide 18: Prospects
Prospects 18 Sun Hung Kai Properties Limited
Slide 19: Prospects – Hong Kong
Prospects – Hong Kong Confident to deal with current challenging business environment, as in previous downturns Economic fundamentals for Hong Kong residential market remain intact Continue to launch projects when ready Sizeable land bank adequate for next 5 years Recycled capital from pro
Slide 20: Prospects – Hong Kong
Prospects – Hong Kong Recurrent rental income from current balanced investment properties portfolio Rental income from regional retail malls should remain relatively resilient Continue to refine tenant mix and do regular refurbishments to make rental properties more attractive Rental portfol
Slide 21: Prospects – Mainland
Prospects – Mainland Long-term prospects remain promising Maintain consistent and disciplined approach to investments on the Mainland Focusing on prime cities including Beijing, Shanghai, Guangzhou and Shenzhen Completion of landmark commercial complexes will substantially boost rental incom
Slide 22: Q & A session
Sun Hung Kai Properties Limited Q & A session 22 Sun Hung Kai Properties Limited
Sun Hung Kai Properties — H1 FY2009 Earnings Presentation on 6ix