Hang Lung Properties Limited · HKEX:101
Hang Lung Properties — H1 2024 Earnings Presentation
42 slides from Hang Lung Properties's earnings presentation, July 2024
Slide 1: 2024 Interim Results Presentation
Spring City 66, Kunming Grand Hyatt Kunming at Spring City 66 opening in 3Q2024 2024 Interim Results Presentation July 2024
Slide 2: Contents
Contents 3 FY2024 Interim Results Highlights 14 ESG Highlights 15 CRM Highlights Please scan or click on the QR codes to view 2024 Interim Results Investor Presentation 18 Mainland China Portfolio 22 Hong Kong Portfolio 27 Development Projects 33 Appendix 2024 Interim Results Announcement 34 HLP – M
Slide 3: FY2024 Interim Results Highlights
FY2024 Interim Results Highlights Hang Lung Properties (101.HK) Hang Lung Group (10.HK) Revenue Rental Sales Revenue Rental Sales HK$4,886mn HK$1,228mn HK$5,151mn HK$1,228mn HK$6,114mn 17% YoY HK$6,379mn 15% YoY 7% YoY (1H23: Nil) 7% YoY (1H23: HK$2mn) Operating Profit Rental Sales Operating Pro
Slide 4: Revenue Contribution by Segments
Revenue Contribution by Segments HLP revenue contribution by segments (HK$mn) Revenue (1H24 RMB/HKD: -2.8% YoY) (HK$mn) 7,000 Mainland Property Sales: RMB22mn / HK$25mn 6,000 - Heartland Residences, Wuhan 5,000 HK Property Sales: HK$1,203mn - The Aperture & Blue Pool Road 4,000 Mainland Rental: RMB3
Slide 5: Mainland China Rental Revenue
Mainland China Rental Revenue HLP Mainland China overall rental revenue (RMB mn) and YoY change (%) Rental revenue YoY change (RMB mn) 1H24 Mainland China rental (%) revenue: RMB3,034mn 3,500 15% 2% (-3% YoY) 3,000 1% 2% 2% 1% 19% 18% 19% 18% 10% 2,500 20% 2,000 5% 1,500 79% 80% 79% 80% 80% 1,000 0%
Slide 6: Mainland China Retail Rental Revenue
Mainland China Retail Rental Revenue HLP Mainland China retail rental revenue (RMB mn) and YoY change (%) YoY change Rental revenue (%) (RMB mn) 1H24 Mainland Retail Rental Revenue: 20% 2,800 RMB2,414mn (-3% YoY) 15% 2,300 10% 1,800 1,300 5% 800 0% 300 -5% 1H22 2H22 1H23 2H23 1H24 Mainland retail re
Slide 7: Tenant Sales YoY Change (%) in Mainland China Retail Portfolio
Tenant Sales YoY Change (%) in Mainland China Retail Portfolio YoY change (in RMB) 80% Overall tenant sales 60% -13% YoY 40% Sub-luxury malls +1% YoY 20% Luxury malls outside Shanghai 0% -6% YoY -20% Luxury malls in Shanghai -20% YoY -40% 1H22 2H22 1H23 2H23 1H24 Hang Lung Properties Limited 7
Slide 8: CRM Highlights
CRM Highlights House 66 hello Total valid members Member sales Total valid members Member sales (Up to Jun 2024) (Jan – Jun 2024) (Up to Jun 2024) (Jan – Jun 2024) +13% (vs end -23) -8% YoY +8% (vs end -23) +30% YoY New members Sales Penetration New members Sales Penetration (Jan – Jun 2024) (Jan –
Slide 9: Mainland China Office Rental Revenue
Mainland China Office Rental Revenue HLP Mainland China office rental revenue (RMB mn) and YoY change (%) Rental revenue YoY change (RMB mn) 1H24 Mainland Office (%) Rental Revenue: 600 RMB556mn (-4% YoY) 20% 550 15% 500 10% 450 5% 400 0% 350 -5% 300 -10% 1H22 2H22 1H23 2H23 1H24 Mainland office ren
Slide 10: Hong Kong Rental Revenue
Hong Kong Rental Revenue HLP HK rental revenue (HK$mn) and YoY change (%) Rental revenue YoY change (HK$mn) (%) 1H24 HK 2,000 Rental Revenue: 8% HK$1,548mn (-8% YoY) 7% 1,600 7% 8% 7% 4% 6% 33% 1,200 33% 33% 33% 0% 34% 800 -4% 60% 61% 59% 59% 60% 400 -8% 0 -12% 1H22 2H22 1H23 2H23 1H24 HK retail ren
Slide 11: Property Sales in Hong Kong and Mainland China
Property Sales in Hong Kong and Mainland China Location Name of project No. of units No. of units pre-sold No. of recognized as and to be recognized unsold units 1H24 sales revenue upon sale completion Hong Kong The Aperture 114 units 12 units 168 units Hong Kong 23-39 Blue Pool Road 1 unit 1 unit 8
Slide 12: Financial Management
Financial Management Net debt Cash and bank deposits Average debt maturity Interest cover HK$46.6bn HK$6.6bn 3.0 years 3.0x (end-2023: HK$45.3bn) (end-2023: HK$5.4bn) (FY2023: 3.0 years) (FY2023: 3.6x) Net Gearing Ratio (%) Average Borrowing Cost (%) 40% 6% 4.3% 4.3% 35% 31.9% 32.9% 3.9% 3.5% 3.5% 3
Slide 13: Ongoing Efforts on Sustainability
Ongoing Efforts on Sustainability Latest Ratings & Awards Recent Achievements Apr Apr Renewable Energy Ongoing Collaboration with LVMH Group 2024 2024 S&P CSA score: 66 “AA” rating “Low” ESG risk rating CITI score: 20.3 CATI score: 30.0 • 5 out of 10 of our Mainland operating • Second Real Estate &
Slide 14: ESG Highlights
ESG Please scan or click on the QR codes to view ESG Highlights Slides Highlights Sustainability ESG Full Report 2023 Presentation (July 2024) Hang Lung Properties Limited 14
Slide 15: CRM Highlights
CRM Highlights Build Hang Lung Branded Experience EXPERIENCE EXCLUSIVENESS ENGAGEMENT Hang Lung Properties Limited 15
Slide 16: HOUSE – Build Hang Lung Branded Experience
HOUSE 66 – Build Hang Lung Branded Experience Spanning 10 Hang Lung projects in eight cities across Mainland China EXPERIENCE EXCLUSIVENESS Exclusive Privilege Highlights • VIC lounge • Valet parking • Hands-free service • Dedicated parking space Celebrity 刘涛 Meet & Greet with • Personalized birthda
Slide 17: hello – Build Hang Lung Branded Experience
hello – Build Hang Lung Branded Experience Offering bespoke shopping experiences to customers in Hong Kong MEMBER ENGAGEMENT PROGRAM OFFERING • Launch of XHS in Jul 2024 • Weekly hello Thursday limited offers • Sales promotions & exclusive privileges with key tenants BOC Hong Kong Tennis Open TUMI s
Slide 18: Mainland China Portfolio
Mainland China Portfolio Hang Lung Properties Limited 18
Slide 19: Mainland China Mall Portfolio
Mainland China Mall Portfolio Shanghai Shanghai Shenyang Wuxi Dalian Plaza 66 Grand Gateway 66 Forum 66 Center 66 Olympia 66 Tenant Sales 23% 14% 20% Flat 2% (YoY) Mall 100% 97% 82% 99% 93% Occupancy (same vs end-23) (2% vs end-23) (1% vs end-23) (1% vs end-23) (3% vs end-23) Kunming Wuhan S
Slide 20: Mainland China Office Portfolio
Mainland China Office Portfolio Shanghai Shenyang Wuxi Kunming Wuhan Plaza 66 Forum 66 Center 66 Spring City 66 Heartland 66 Office 88% 90% 89% 87% 68% Occupancy (8% vs end-23) (1% vs end-23) (4% vs end-23) (1% vs end-23) (8% vs end-23) Other Conrad Shenyang HANGOUT Modular office • HANGOUT Fea
Slide 21: Mainland China Hotel Portfolio
Mainland China Hotel Portfolio Targeted opening 2019 2024 2025 + Conrad Shenyang Grand Hyatt Kunming Curio Collection by Mandarin Oriental (at Forum 66) (at Spring City 66) Hilton Hangzhou (at Center 66) (at Westlake 66) Note: The photographs, images, drawings or sketches shown in this section repre
Slide 22: Hong Kong Portfolio
Hong Kong Portfolio Hang Lung Properties Limited 22
Slide 23: Hong Kong Rental Performance
Hong Kong Rental Performance Hong Kong Rental Revenue (HK$mn) Hong Kong Occupancy Rate (%) Rental Revenue 1H24: Occupancy (HK$mn) HK$1,548mn Rate (%) 2,000 120% Resi.&S.A.: 1,600 7% of total Resi.&S.A.: 100% 97% 6% of total 89% Office: 80% 1,200 33% of total Office: 73% 60% 33% of total 800 Retail:
Slide 24: Hong Kong Investment Properties
Hong Kong Investment Properties Central Business and Tourist District Portfolio Central Peak Portfolio Galleria • Comprising 4 office buildings with a diversified tenant profile • A tourist landmark, with pet-friendly • Form a thriving fine-dining hub in Central features to attract local pet lovers
Slide 25: Hong Kong Investment Properties
Hong Kong Investment Properties Central Business and Tourist District Portfolio Causeway Mongkok Bay Portfolio Portfolio • An elite shopping destination featuring numerous • Continued to solidify the area’s position as the place internationally renowned fashion, beauty, and lifestyle brands “Where T
Slide 26: Hong Kong Investment Properties
Hong Kong Investment Properties Community Mall Portfolio Kornhill Plaza / Amoy Kornhill Plaza Apartments • A community mall in Quarry Bay offering the largest • A one-stop community hub in Kowloon East Japanese department store in Hong Kong Hang LungRetail 26 Properties Limited Office Residential &
Slide 27: Development Projects
Development Projects Hang Lung Properties Limited 27
Slide 28: Launching Pipeline: Serviced Apartments in Mainland China & HK Residential
Launching Pipeline: Serviced Apartments in Mainland China & HK Residential 2025 + 2024 2023 2021-2022 Heartland Residences • Topped-out (2021) • Completion certificates obtained Mainland China Grand Hyatt Residences • Topped-out (2022) • Completion certificates Kunming obtained Center • Topped-out •
Slide 29: Mainland China Serviced Apartments
Mainland China Serviced Apartments Wuhan Kunming Wuxi Residences (28-57/F) Heartland Residences Grand Hyatt Residences Kunming Center Residences Qiaokou district Panlong District Liangxi District o Total: 492 units o Total: 254 apartments including 3 premium o Total: 573 units o 2023 completion pent
Slide 30: Hong Kong Residential at Prime Locations
Hong Kong Residential at Prime Locations For Sale For Sale 23-39 Blue Pool Road The Aperture (Completed) Kowloon (Completed) Bay station For Sale Investment Properties • The Summit o Total: 54 duplex suites o Renovation commenced in Sep 2023 Shouson Hill Road Redevelopment • Burnside Villa (under de
Slide 31: Mainland China Projects Under Development
Mainland China Projects Under Development Kunming Hangzhou Wuxi Shenyang Spring City 66 Westlake 66 Center 66 Forum 66 Location Dongfeng Dong Road, Bai Jing Fang, Renmin Zhong Road & Qingnian Street, Panlong District Gongshu District Jiankang Road, Liangxi District Shenhe District Land use right sig
Slide 32: Westlake 66 in Hangzhou (under development)
Westlake 66 in Hangzhou (under development) Usage A retail podium, five Grade A office towers, and Mandarin Oriental Hangzhou Total GFA Targeted completion 4.2mn sq ft 2025 onwards Retail: 0.8mn sq ft No. of carparking Office: 1.0mn sq ft spaces Hotel: 0.3mn sq ft 2,253 Carparks and others: 2.1mn sq
Slide 33: Appendix
Appendix Hang Lung Properties Limited 33
Slide 34: HLP - Mainland China Rental Revenue Breakdown
HLP - Mainland China Rental Revenue Breakdown 6 months ended June 30, 2024 Luxury Malls Rental Rental Revenue (RMB mn) Revenue (YoY change) Name of project City Mall Office Hotel Total Plaza 66 mall 8% Luxury malls Grand Gateway 66 mall 4% Plaza 66 Shanghai 819 312 - 1,131 Forum 66 mall 14% Grand
Slide 35: Hang Lung Properties – Financial Highlights
Hang Lung Properties – Financial Highlights 1H2024 1H2023 Property Property Property Property Leasing Sales Total Leasing Sales Total (HK$mn) Revenue 4,886 1,228 6,114 5,237 - 5,237 - Mainland China 3,338 25 3,363 3,554 - 3,554 - Hong Kong 1,548 1,203 2,751 1,683 - 1,683 Operating Profit / (Loss) 3,
Slide 36: Hang Lung Properties – Financial Position
Hang Lung Properties – Financial Position (HK$mn) 30/6/2024 31/12/2023 Investment Properties 168,577 169,046 - Mainland China 106,335 107,219 - Hong Kong 62,242 61,827 Investment Properties under development 24,430 23,610 Properties for sale 13,801 14,223 Cash and bank deposits 6,573 5,352 Total Bor
Slide 37: Hang Lung Properties – Gross and Net Interest Expense
Hang Lung Properties – Gross and Net Interest Expense 5,000.00 40.0% 31.9% 32.9% 35.0% 4,000.00 28.1% 30.0% 24.4% 25.0% 21.3% 3,000.00 17.8% 20.0% 2,000.00 1,959 15.0% 1,475 1,470 1,487 1,512 1,267 1,063 10.0% 1,000.00 1,000 1,000 1,429 1,296 608 5.0% 487 512 692 455 - 46 174 0.0% 2019 2020 2021 202
Slide 38: Hang Lung Group – Financial Highlights
Hang Lung Group – Financial Highlights 1H24 1H23 Property Property Property Property Leasing Sales Total Leasing Sales Total (HK$mn) Revenue 5,151 1,228 6,379 5,523 2 5,525 - Mainland China 3,537 25 3,562 3,775 - 3,775 - Hong Kong 1,614 1,203 2,817 1,748 2 1,750 Operating Profit / (Loss) 3,624 (11)
Slide 39: Hang Lung Group – Financial Position
Hang Lung Group – Financial Position (HK$mn) 30/6/2024 31/12/2023 Investment Properties 176,871 177,458 - Mainland China 112,831 113,835 - Hong Kong 64,040 63,623 Investment Properties under development 24,430 23,610 Properties for sale 13,822 14,244 Cash and bank deposits 7,218 6,343 Total Borrowin
Slide 40: Investment Property Portfolio: HLG
Investment Property Portfolio: HLG Note: Properties held via HLP are excluded from this session 9 Wing Hong Street Luen Cheong Can Centre Tai Hing Gardens Grand Gateway 66 Cheung Sha Wan, HK Tuen Mun, HK Tuen Mun, HK Puxi, Shanghai • Office • Office • Retail • Office Tower I & portion Serviced Apart
Slide 41: Grand Gateway 66, Above Xujiahui Subway Station, Puxi, Shanghai
Grand Gateway 66, Above Xujiahui Subway Station, Puxi, Shanghai Rental Revenue Occupancy (6 months ended June 30, 2024) (at June 30, 2024) RMB mn Office Tower I 87% 112 7% YoY RMB mn Residential & Serviced 77% Apartments 68 8% YoY RMB mn Mall (held via HLP) 97% 589 4% YoY Hang Lung Properties Lim
Slide 42: Thank You
Thank You Disclaimer 1. All information and data are provided for information purposes only. All opinions included herein are based on information available as of the date hereof and are subject to change without notice. There is no guarantee, representation or warranty provided for accuracy, timeli