Kerry Properties Limited · HKEX:683
Kerry Properties — FY2017 Earnings Presentation
35 slides from Kerry Properties's earnings presentation, Mar 16, 2018
Slide 1: FY 2017 Annual Results Investor Presentation
FY 2017 ANNUAL RESULTS INVESTOR PRESENTATION 16 MARCH 2018
Slide 2: Agenda
2 RESULTS DEVELOPMENT INVESTMENT FINANCIAL APPENDIX HIGHLIGHTS PROPERTIES PROPERTIES POSITION 1 2 3 4 5
Slide 3: Results Highlights
RESULTS HIGHLIGHTS » KERRY PROPERTIES LIMITED FY 2017 ANNUAL RESULTS
Slide 4: FY 2017 Results Highlights
FY 2017 RESULTS HIGHLIGHTS 4 TURNOVER PROPERTY SALES PROPERTY RENTAL HOTEL OPERATIONS +174% +304% +12% +11% HK$ 35.5B HK$ 29.1B HK$ 4.5B HK$ 1.9B 10-Yr RECURRENT UNDERLYING PROFIT FULL YEAR DIVIDEND NAV GEARING REVENUE HK$ +306% HK$ +81% HK$/Sh +36% HK$/Sh +14% % -7.8% pts Interim + final 6.5B 6.7B
Slide 5: Financial Summary
FINANCIAL SUMMARY 5 HK$ million FY 2017 FY 2016 Change Turnover 35,548 12,991 +174% Gross profit 9,745 5,856 +66% Share of results of associates and joint ventures 2,060 1,801 +14% Underlying profit 6,651 3,671 +81% Net increase in fair value in investment properties 2,591 2,866 -10% Reported profit
Slide 6: Development Properties
6 DEVELOPMENT PROPERTIES 1 2 3 4 5
Slide 7: Operating Segments Overview
OPERATING SEGMENTS OVERVIEW 7 HK$ million Turnover Gross Profit Gross Profit Margin * Recurrent revenue Note FY 2017 FY 2016 Change FY 2017 FY 2016 Change FY 2017 FY 2016 Property sales 29,089 7,204 +304% 5,749 2,463 +133% 20% 34% HK N1 20,626 549 +3,657% 3,090 155 +1,894% 15% 28% PRC N2 8,463 6,655
Slide 8: Development Properties Overview
DEVELOPMENT PROPERTIES OVERVIEW 8 Contracted Sales FY 2017 FY 2016 HK$ HK PRC HK * KPL’s Interest Contracted Sales $9.3B $12.2B 26.4B Saleable Area Sold Approx. 405,000 s.f Approx. 698,000 s.f Recognized Sales Subsidiary $20.6B $0.5B Associate $0.5B* $0.6B* Recognized Projects (major Mantin Heights
Slide 9: Development Properties – HK Projects on Sale: Mantin Heights
DEVELOPMENT PROPERTIES – HK PROJECTS ON SALE 9 MANTIN HEIGHTS 1-2/2018 Contracted Sales : $1.6B ASP: $27,700 psf (+34% vs. first launch in 4/2016) Accumulative sales performance up to end-Feb 2018: • Total units: 1,429 • Sold 1,094 units or 77% of total units • 1st launch in 4/2016 • Contracted sale
Slide 10: Development Properties – HK Projects on Sale: The Bloomsway
DEVELOPMENT PROPERTIES – HK PROJECTS ON SALE 10 THE BLOOMSWAY 1-2/2018 Contracted Sales : $0.2B Accumulative sales performance ASP (apartments): $20,000 psf up to end-Feb 2018: (+82% vs. first launch in 11/2015) • Total units: 1,100 • 1st launch in 11/2015 • Sold 958 units or 87% of total units • Co
Slide 11: Development Properties – HK Upcoming Projects
DEVELOPMENT PROPERTIES – HK UPCOMING PROJECTS 11 BEACON HILL PROJECTS Beacon Hill Project Site #1 Project Summary BH Site 1 BH Site 2 Acquisition date Feb-2015 Oct-2016 Two adjacent sites occupying a total site area of 350,000 s.f and buildable GFA of 459,000 s.f Total gross buildable GFA 116,000 s.
Slide 12: Development Properties – PRC
DEVELOPMENT PROPERTIES – PRC 12 PRC Contracted ASP Sales of residential units will continue in Shenyang, Qinhuangdao, Tianjin and Hangzhou in the coming years… Rmb psm FY 2017 +39% YoY 26,600 Lake Grandeur, Hangzhou Shenyang Arcadia Court Ph 2 19,100 15,600 12,800 FY 2017 ASP: FY2017 ASP: Rmb101,000
Slide 13: Investment Properties
13 INVESTMENT PROPERTIES 1 2 3 4 5
Slide 14: Investment Properties – Overview
INVESTMENT PROPERTIES – OVERVIEW 14 Total Property Rental (includes attributable rental income from associates) PRC Six Mixed-Use Properties in the CBDs of Major Cities HK$ million PRC HK 4,955M +11% 4,444M 1998 2008 2011 2013 2015 2016 Beijing Shenzhen Shanghai Shanghai Tianjin Hangzhou Kerry Centr
Slide 15: Investment Properties – PRC Completed Properties
INVESTMENT PROPERTIES – PRC COMPLETED PROPERTIES 15 PRC Property Rental • GFA(100%)* 1.5Ms.f Beijing • Occupancy (@ 31 Dec 2017) * 97% Gross rental revenue: HK$3.7B Kerry Centre • Yield on Cost * 20% (includes attributable rental income from associates) • Completion 1998 • KPL’s interest 71.25% Attr
Slide 16: Investment Properties – Under Development: Shenyang Kerry Centre
INVESTMENT PROPERTIES – UNDER DEVELOPMENT 16 SHENYANG KERRY CENTRE • Lying at the core of the city’s landmark Golden Corridor development, the site yields a GFA of approx. 13M s.f. • This mixed-use project includes a hotel, offices, a shopping mall and residences. • Phase I of the development has be
Slide 17: Investment Properties – Under Development: Qianhai, Shenzhen
INVESTMENT PROPERTIES – UNDER DEVELOPMENT 17 QIANHAI, SHENZHEN Qianhai Kerry Centre Project Qianhai T9 or Qianhai Summary Site #2 T8 Site #1 T1 Land T2 Jan-2015 Dec-2016 acquisition GFA (s.m) Total 202,000 120,300 T7 Office 120,000 74,500 Residential 60,000 - T6 Commercial 22,000 15,800 Hotel - 30,0
Slide 18: Investment Properties – HK
INVESTMENT PROPERTIES – HK 18 HK Property Rental RESIGLOW, • Completed in 6/2017 Happy Valley • 57% leased as of 12/2017 Gross rental revenue: HK$1.2B (includes attributable rental income from associates) Attributable GFA 2.9M s.f Occupancy 98 % (weighted average) Prop mgmt, carparks and others Apar
Slide 19: Financial Position
FINANCIAL POSITION » KERRY PROPERTIES LIMITED FY 2017 ANNUAL RESULTS
Slide 20: Financial Position
FINANCIAL POSITION 20 As at 31 As at 31 Debt Maturity Profile HK$ million Dec 2017 Dec 2016 Change Total Debt : $38,022M HK$ million Total Debt 38,022 45,333 -16% Fixed Rate Bonds Bank Loans Cash and bank 13,748 16,481 -17% balance Net Debt 24,274 28,852 -16% 8,040 Undrawn Bank Loan 11,665 9,287 +26
Slide 21: Appendix
21 APPENDIX 1 2 3 4 5 A. FY 2017 Contracted Sales - HK B. FY 2017 Contracted Sales - PRC C. Major Properties Under Development - HK D. Major Properties Under Development - PRC E. PRC Major Completed Mixed-Use Properties F. Land Bank – Overview / HK / PRC
Slide 22: A. FY 2017 Contracted Sales – HK
A. FY 2017 CONTRACTED SALES – HK 22 Projects on sale KPL’s Total Units Accumulative Inventory ASP achieved Sales (KPL’s Interest) interest project sold in units sold as at 31 as at 31 Dec in FY 2017 proceeds in FY (%) units FY 2017 Dec 2017 2017 (units) HK$ psf 2017^ HK$ bn MAJOR PROJECTS 1 Mantin H
Slide 23: B. FY 2017 Contracted Sales – PRC
B. FY 2017 CONTRACTED SALES – PRC 23 Major projects on sale Product Contracted GFA Sold ASP KPL’s (KPL’s Interest) type sales ^ s.m achieved interest RMB’M in FY 2017 RMB psm 1 Hangzhou Castalia Court 杭州云荷廷 R 1,871 55,000 32,800 100% 2 Shenyang Arcadia Court Ph 1 瀋陽雅頌居一期 R 949 41,600 20,000 60% 3 La
Slide 24: C. Major Properties Under Development – HK
C. MAJOR PROPERTIES UNDER DEVELOPMENT – HK 24 Name Location Type Stage of Completion Expected KPL’s Buildable Completion Interest GFA* (%) (s.f.) FOR SALE PROPERTIES 1 Beacon Hill Project (NKIL 6532) Beacon Hill R Superstructure work 2H 2018 100 116,380 in progress 2 Beacon Hill Project (NKIL 6533)
Slide 25: D. Major Properties Under Development – PRC
D. MAJOR PROPERTIES UNDER DEVELOPMENT – PRC 25 Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributa (%) ble GFA (s.f.) MAJOR MIXED-USE DEVELOPMENT 1 Shenyang Kerry Centre Shenyang R/O/C Ph II – Residential: Mechanical & Ph II – In 60 5,309,788 Phase II & III engi
Slide 26: D. Major Properties Under Development – PRC (Con't)
D. MAJOR PROPERTIES UNDER DEVELOPMENT – PRC (CON’T) 26 Name Location Type Stage of Completion Expected KPL’s KPL’s Completion Interest Attributable (%) GFA (s.f.) OTHER INVESTMENT PROPERTIES (CON’T) 8 Shenzhen Qianhai Shenzhen H/O/C Piling work in progress 2021 25 322,830 Complex Development SUBTOTA
Slide 27: E. PRC Major Completed Mixed-Use Properties
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES 27 31 Dec 2017 GFA & Occupancy Attri GFA (‘000 s.f.) Beijing Shanghai Shenzhen Tianjin Hangzhou Total Occupancy Office 711 1,436 1,552 - 100 3,799 97% Commercial 98 1,096 104 428 812 2,538 95% Apartment 277 774 - - - 1,051 91% Total 1,086 3,306 1,656 428 9
Slide 28: E. PRC Major Completed Mixed-Use Properties (Con't)
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 28 Occupancy rates (by segment) As at 31 Dec 2017 As at 31 Dec 2016 Serviced Apartment 96% 97% Office 98% 98% 1 Beijing Kerry Centre Commercial 94% 98% Average 97% 98% Serviced Apartment 87% 90% Office 99% 100% 2 Jing An Kerry Centre Ph 1 Commercia
Slide 29: E. PRC Major Completed Mixed-Use Properties (Con't)
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 29 Jing An Kerry Centre, Shanghai Puxi GFA ( million s.f.) 3.7M s.f Commercial 1.0 • Located in the heart of Shanghai’s Nanjing Road business Office 1.7 district Apartment 0.2 • A pre-eminent shopping venue and exclusive office Hotel 0.8 address in
Slide 30: E. PRC Major Completed Mixed-Use Properties (Con't)
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 30 Beijing Kerry Centre 2.2M s.f GFA ( million s.f.) Commercial 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 Apartment 0.4 and financial center and within the
Slide 31: E. PRC Major Completed Mixed-Use Properties (Con't)
E. PRC MAJOR COMPLETED MIXED-USE PROPERTIES (CON’T) 31 Tianjin Kerry Centre Ph 1 1.7M s.f GFA ( million s.f.) Commercial 0.9 • Mixed-use development located on the east bank of the Hotel 0.8 Haihe CBD in Hedong District Total 1.7 • Phase I of the development includes a hotel, upscale residences for
Slide 32: F. Land Bank – Overview
F. LAND BANK – OVERVIEW 32 Total Property Portfolio Attributable GFA: Approx. 39.1M s.f. (as of 31 Dec 2017) Held for sale 9% Macau Hotel PUD 6% 12% 48% Overall – Overseas Overall – PRC 74% 9% By Type By Location HK 11% Completed IP 31% Hotel 5% Macau 13% Residential 58% PUD – PRC PUD – Office Overs
Slide 33: F. Land Bank – HK
F. LAND BANK – HK 33 HK Land bank Attributable GFA (‘000 s.f) Hotel 1% Completed Investment Properties 2,863 Commercial Residential 28% 34% Commercial 1,219 4.4M s.f in Office 841 attributable GFA Apartment 803 Properties under development 818 Office 19% Apartment 18% Completed properties held for s
Slide 34: F. Land Bank – PRC
F. LAND BANK – PRC 34 PRC Land bank Attributable GFA (‘000 s.f) Hotel 17% Completed Investment Properties 7,388 Commercial 17% Residential Commercial 2,538 34% 29.0M s.f Office 3,799 attributable GFA Apartment 1,051 Properties under development 14,752 Office Apartment 28% 4% Completed properties hel
Slide 35: Disclaimer
DISCLAIMER 35 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 informati