Megaworld Corp. · PSE:MEG
Megaworld — H1 2022 Earnings Presentation
34 slides from Megaworld's earnings presentation, Aug 11, 2022
Slide 1: First Half 2022 Results
Megaworld Corporation FIRST HALF 2022 RESULTS Analysts' Presentation 11 August 2022
Slide 2: Performance Update
PERFORMANCE UPDATE In PHP Billions 2Q22 1Q22 %QoQ 2Q21 % YoY 1H22 1H21 %YoY Double-digit YoY topline growth across all business REVENUES 14.3 13.1 9% 12.2 17% 27.5 22.4 23% segments driven mainly by resurgence in economic COSTS & EXPENSES 11.1 9.6 15% 9.4 19% 20.7 15.5 34% activity with increased EB
Slide 3: Revenue Breakdown
REVENUE BREAKDOWN P27.5B Total revenues REAL ESTATE SALES 26% Improved construction activity, higher completion rate P17.0B OFFICE RENTALS 15% Resurgence in demand from BPOs/traditionals, stable occupancy MALL RENTALS 41% Increased mobility, revenge mall P6.0B spending HOTEL OPERATIONS 49% Sharp pic
Slide 4: Strong Balance Sheet
STRONG BALANCE SHEET P91.3 BILLION P55.7B GROSS DEBT NET DEBT TYPE OF DEBT INTEREST RATE CURRENCY 24% NET DEBT /EQUITY 36% 40% 40% Bond Fixed PHP Loans Floating USD P23.9B 60% 60% 64% CAPEX SPENDING 4
Slide 5: Real Estate
REAL ESTATE REAL ESTATE SALES P17.0B ↑26% YoY RESERVATION SALES P51.1B vs P90B FY2022 Target PROJECT LAUNCHES P21.1B vs P30B FY2022 Target Arden Botanical 5 Estat
Slide 6: Real Estate Sales P17.0 Billion
REAL ESTATE SALES P17.0 BILLION REAL ESTATE SALES By Segment (Pbn) By Location (Pbn) By Classification (Pbn) UPPER MIDDLE 7.6 METRO MANILA 3% RESIDENTIAL 27% 13.2 CLASS to EX-TAGUIG 12.5 UNITS HIGH-END 34% TAGUIG CITY 78% RESIDENTIAL 90% MID-INCOME LOTS 3.7 to ECONOMIC 4% 3.7 LUZON 28% EX-MM CONDOTE
Slide 7: Reservation Sales P51.1 Billion
RESERVATION SALES P51.1 BILLION RESERVATION SALES 63% VERTICAL DEVELOPMENT 86% LOCAL BUYERS 49% METRO MANILA PROJECTS The Pinnacle Iloilo Business Park 7
Slide 8: Maple Grove Park Village
1H22 PROJECT LAUNCHES MAPLE GROVE PARK VILLAGE Maple Grove, Cavite P6.5 BILLION PROJECT VALUE P50,600 CURRENT SELLING PRICE PER SQM 20% PERCENTAGE SOLD MAY 2022 DATE LAUNCHED 8
Slide 9: Herald Parksuites
1H22 PROJECT LAUNCHES HERALD PARKSUITES The Upper East, Bacolod P1.9 BILLION PROJECT VALUE P189,000 CURRENT SELLING PRICE PER SQM 24% PERCENTAGE SOLD MAY 2022 DATE LAUNCHED 9
Slide 10: ArcoVia Park Place
1H22 PROJECT LAUNCHES ARCOVIA PARK PLACE ArcoVia City P5.1 BILLION PROJECT VALUE P237,000 CURRENT SELLING PRICE PER SQM 12% PERCENTAGE SOLD JUN 2022 DATE LAUNCHED 10
Slide 11: Offices
OFFICES OFFICE RENTALS P6.0B ↑15% YoY OFFICE GLA 1.4M SQM OCCUPANCY RATE 91% VS 90% IN 1H21 11
Slide 12: Office Pipeline: No. 1 Upper East Avenue
OFFICE PIPELINE NO. 1 UPPER EAST AVENUE THE UPPER EAST | BACOLOD CITY 2022 COMPLETION YEAR 8,600 SQM GROSS LEASABLE AREA 12
Slide 13: Office Pipeline: International Finance Center
OFFICE PIPELINE INTERNATIONAL FINANCE CENTER UPTOWN BONIFACIO | TAGUIG CITY 2024 COMPLETION YEAR 69,000 SQM GROSS LEASABLE AREA 50% PRE-LEASING COMMITMENT 13
Slide 14: Office Pipeline: Enterprise 1&2
OFFICE PIPELINE ENTERPRISE 1&2 ILOILO BUSINESS PARK | ILOILO CITY 2024-2025 COMPLETION YEAR 66,600 SQM GROSS LEASABLE AREA 14
Slide 15: Office Pipeline: Pasudeco 1&2
OFFICE PIPELINE PASUDECO 1&2 CAPITAL TOWN | PAMPANGA 2024-2025 COMPLETION YEAR 19,300 SQM GROSS LEASABLE AREA 15
Slide 16: Office Pipeline: Two McWest
OFFICE PIPELINE TWO MCWEST MCKINLEY WEST| TAGUIG CITY 2025-2026 COMPLETION YEAR 54,400 SQM GROSS LEASABLE AREA 16
Slide 17: Offices Under Planning Phase
OFFICES UNDER PLANNING PHASE 17
Slide 18: The state-of-the-art building will feature natural lighting for the interior lobby, and a facade
The state-of-the-art building will feature natural lighting for the interior lobby, and a facade with a cubic sunscreen incorporating the dynamic dots branding over the lobby’s circular curtain wall. Estimated time of completion: 18 – 24 months 18
Slide 19: MREIT: 1H2022 Performance
MREIT: 1H2022 Performance Tenant Mix (by GLA) 76% 18% 3% 3% BPO Traditional Retail Hotel Tenant Breakdown (by GLA) 97% OCCUPANCY RATE 7% 6% 5% 3.4 years 5% Weighted Average Lease Expiry (WALE) 5% 56% Top 11 tenants 44% 9,600 SQM 4% 3% 3% CLOSED TRANSACTIONS 2% 2% 2% 19
Slide 20: MREIT: 1H2022 Performance
MREIT: 1H2022 Performance In PHP millions 2Q22 1Q22 %QoQ 2Q21 % YoY 1H22 1H21 %YoY Revenues 893 902 -1% 227.2 293% 1,794 227.2 689% Direct Operating Costs (132) (132) 0% (21) 546% (264) (21) 1,192% Gen & Admin Expenses (10) (8) 29% (19) -48% (17) (19) -7% Net Operating Income 751 769 -1% 188 299% 1,
Slide 21: MREIT: Maximizing Shareholder Value
MREIT: Maximizing Shareholder Value Dividends Distributable Income (by GLA) 0.055* 639 638 594 0.240 0.243 0.247 0.185 558 Q3 2021 Q4 2021 Q1 2022 Q2 2022 P0.97 6% Total dividend per share since Total return** Q3 2021 Q4 2021 Q1 2022 Q2 2022 IPO since IPO *Bonus dividend (June 2021 Income) 21 **tota
Slide 22: Asia's First Immune-Certified Buildings
ASIA’S FIRST TWO MREIT PROPERTIES IMMUNE-CERTIFIED BUILDINGS HAILED AS FIRST-EVER ‘IMMUNE-CERTIFIED’ BUILDINGS IN ASIA Two MREIT office buildings in Eastwood City, 1800 Eastwood Avenue and 1880 Eastwood Avenue, are the first two office towers in the entire Asian region to receive the IMMUNE - (4 Sta
Slide 23: Lifestyle Malls
LIFESTYLE MALLS MALL RENTALS P1.5B ↑41% YoY MALL GLA 462K SQM OCCUPANCY RATE 89% VS 82% IN 1H21 Southwoods Mall 23
Slide 24: Improving Mall Footfall
IMPROVING MALL FOOTFALL • Entry of new and well-known anchor tenants • Reopening of cinemas • Other various initiatives Landers Uptown Mary Grace Café, Twin Lakes Cinemas 25
Slide 25: Electric vehicle chargers at Uptown Mall
Megaworld Lifestyle Malls established a new set of electric vehicle chargers opened to the public at Uptown Mall with its Pulsar Plus 22kw charging stations. To be installed in these Townships soon: Eastwood City ForbesTown McKinley Hill ArcoVia City 26
Slide 26: Government partnerships and vaccination centers in malls
We continue to partner with Our Lifestyle Malls as Government Offices in order to vaccination centers bring their services into our malls 27
Slide 27: Future Developments
FUTURE DEVELOPMENTS Township Project Target Completion Lot Area Mckinley West MCKINLEY WHISKY PARK 4Q 2022 5,151 Eastland Heights D'OLIVE 4Q 2022 5,399 Davo Park District DAVAO WHISKY PARK 1Q 2023 3,007 Mckinley West PARK MCKINELY WEST 4Q 2023 7,004 Boracay Newcoast BORACAY NEWCOAST BEACHFRONT 2Q 20
Slide 28: Hotels
HOTELS HOTEL REVENUES P1.1B ↑19% YoY HOTEL ROOM 4,163 KEYS OCCUPANCY RATE 60% METRO MANILA Savoy Hotel Boracay 29
Slide 29: Hotel Performance
HOTEL PERFORMANCE Hotel Revenues (Pm) vs EBITDA Margin 21% 18% 13% 15% 13% 12% 7% 8% -13% -18% 551 367 250 314 336 389 552 652 503 579 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Hotel Revenues EBITDA margin 30
Slide 30: Hotels Pipeline
HOTELS PIPELINE 2022 2022 2023 551 rooms 554 rooms 1,530 rooms Belmont Hotel Mactan Chancellor Hotel Boracay Grand Westside Hotel MACTAN NEWTOWN, CEBU BORACAY NEWCOAST WESTSIDE CITY 31
Slide 31: 2022 Targets: 3-4 Townships
2022 TARGETS 3-4 TOWNSHIPS 33
Slide 32: 2022 Targets
2022 TARGETS P30B P50B PROJECT LAUNCHES P90B CAPEX BUDGET ACROSS 14 PROJECTS RESERVATION SALES 34
Slide 33: Key Takeaways
KEY TAKEAWAYS REAL ESTATE Continued rise in real estate sales on the back of an uptick in construction activities and recovery in sales take-up. OFFICES Improvement in occupancy affirms positive outlook on office demand. LIFESTYLE MALLS Surge in rental income driven by increase in operational tenant
Slide 34: First Half 2022 Results
FIRST HALF 2022 RESULTS ANALYST PRESENTATION 11 AUGUST 2022