Metro Holdings Ltd · SGX:M01
Metro — FY2018 Earnings Presentation
48 slides from Metro's earnings presentation, May 25, 2018
Slide 1: Metro Holdings Limited FY2018 Results Presentation
METRO HOLDINGS LIMITED FY2018 RESULTS PRESENTATION
Slide 2: Contents
CONTENTS • About Metro • Property Investment & Development o Divested Project in FY2018 o Investment Portfolio o Property Development o Investments in FY2018 o Recent Investments in FY2019 • Retail Operations • Financial Highlights • Growth Strategies • Market Outlook 2
Slide 3: Who We Are
WHO WE ARE A property investment and development group, backed by an established retail track record, with strong presence in China, Indonesia, Singapore and the United Kingdom. 3
Slide 4: Our International Presence
OUR INTERNATIONAL PRESENCE United Kingdom China London Shanghai 5 Chancery Lane Metro City Metro Tower Manchester Bay Valley Middlewood Locks Shanghai Shama Century Park Sheffield Guangzhou Sheffield Digital Campus GIE Tower Singapore The Crest 3 Metro Stores Indonesia Legend Transpark Bekasi Proper
Slide 5: Property Investment & Development
PROPERTY INVESTMENT & DEVELOPMENT 5
Slide 6: Divested Project in FY2018: Nanchang Fashion Mark
DIVESTED PROJECT IN FY2018: Nanchang Fashion Mark Key Statistics • Joint-venture project with a Hong Kong-listed company, Top Spring International Holdings Limited • Mixed-use development located at Hong Gu Tan CBD, Nanchang City of Jiangxi Province in the PRC • Divested our 30% to H-Change Real Est
Slide 7: Investment Portfolio: Overview
INVESTMENT PORTFOLIO: OVERVIEW Investment Properties as at 31 March 2018: GIE Tower, Guangzhou Metro City, Shanghai Metro Tower, Shanghai GIE Tower Metro City, Metro Tower, Guangzhou Shanghai Shanghai % owned by Group 100% 60% 60% Tenure 50 yr term from 1994 36 yr term from 1993 50 yr term from 1993
Slide 8: Investment Portfolio: Tenant Mix
INVESTMENT PORTFOLIO: TENANT MIX Tenant Mix by Total Leased Area : (as at 31 March 2018) GIE Tower, Metro City, Metro Tower, Guangzhou Shanghai Shanghai 2018 88.6% 97.1% 98.5% Occupancy Rate 2017 86.4% 95.5% 92.7% 1H2018 4.0% 7.0% 7.7% Expiry Profile 2H2018 15.0% 11.7% 6.5% GIE Tower, Guangzhou Metr
Slide 9: Property Development
PROPERTY DEVELOPMENT Development Properties (Associates/Joint Ventures): The Crest, Singapore Middlewood Locks, Manchester Sheffield DC, Sheffield The Crest at Prince Charles Middlewood Locks, Sheffield Digital Crescent, Singapore Manchester, UK Campus, Sheffield, UK % owned by 40% 25% 50% Group Key
Slide 10: The Crest, Singapore
THE CREST, SINGAPORE 469 units over 4 blocks of 5-storey Description and 3 blocks of 24-storey residential buildings % owned by Group 40% Site Area 23,785 sqm Land Tenure 99 years from 2012 Total Estimated 50,854 sqm Saleable GFA Land Cost S$ 516.3 mil Located near commercial/shopping Connectivity n
Slide 11: Middlewood Locks, Manchester
MIDDLEWOOD LOCKS, MANCHESTER 2,215 residential units and 750,000 sqft Description of commercial space % owned by Group 25% Site Area ~24 acres Land Tenure Freehold Total Estimated ~2.55 mil sqft Saleable/lettable GFA Estimated Gross £ 700 mil Development Value Acquisition Date July 2014 Western boun
Slide 12: Sheffield Digital Campus
SHEFFIELD DIGITAL CAMPUS 2 Grade A Office Buildings (Acero Description Works and Vidrio House) % owned by Group 50% Site Area 1.03 acres Land Tenure Freehold Total Estimated 131,226 sqft Saleable GFA Estimated Gross £ 40 mil Development Value Acquisition Date February 2016 Centrally located on Sheaf
Slide 13: Shanghai Shama Century Park
SHANGHAI SHAMA CENTURY PARK Description 284 residential units % owned by the Group 30% Total GFA 49,357 sqm Land Tenure Expiry 30 December 2072 Estimated 1,715 sqm* Saleable/Leasable GFA Total Consideration RMB 1.75 bil Acquisition Date 27 December 2013 Easily accessible from the subway station and
Slide 14: Investments in FY2018
INVESTMENTS IN FY2018 (April 2017 to March 2018) 14
Slide 15: 5 Chancery Lane, London
5 CHANCERY LANE, LONDON Office building located in Midtown Description Central London % owned by Group 50% Total GFA 84,836 sqft Land Tenure Freehold Total Consideration £ 76 mil Acquisition Date 23 January 2018 Located in close proximity to Chancery Connectivity Lane and Temple stations Status Buil
Slide 16: Bay Valley, Shanghai
BAY VALLEY, SHANGHAI 3 office buildings situated at New Description Jiangwan City, an established industrial area % owned by Group 30% Land Tenure Expiry 2 November 2058 Saleable/Leasable GFA 97,854 sqm Total Consideration RMB 2.5 bil Acquisition Date 27 September 2017 Located within close proximity
Slide 17: Transpark Bekasi, Jakarta
TRANSPARK BEKASI, JAKARTA 5 residential towers comprising 5,622 units situated within a mixed Description development comprising retail, school, office and hotel % owned by Group 90% Land Tenure Leasehold Total Saleable GFA 162,754 sqm Total Consideration IDR 1.99 trillion Acquisition Date 3 Novembe
Slide 18: Recent Investments in FY2019
RECENT INVESTMENTS IN FY2019 (Post 31 March 2018) 18
Slide 19: Shanghai Plaza
SHANGHAI PLAZA Retail mall, centrally located at Huai Hai Zhong Road, Huang Pu district to Description undergo repositioning and conversion for office and retail use % owned by Group 35% Total GFA (sqm) 40,693 Land Tenure 50 years from 1992 Total Consideration RMB 2.25 bil (90%) Capex etc. RMB 657 m
Slide 20: Transpark Bintaro, Jakarta
TRANSPARK BINTARO, JAKARTA 2 residential towers comprising 1,400 apartment and 170 SoHo units Description situated within a mixed development in a mature township % owned by Group 90% Total Saleable GFA 61,618 sqm Land Tenure Leasehold Total Consideration IDR 1.33 trillion Acquisition Date 16 April
Slide 21: Retail Operations
Re RETAIL a OPERATIONS
Slide 22: Retail Operations
RETAIL OPERATIONS Continue to strive on the top line as well as improve assortment of merchandise and customers shopping experience Singapore:- Indonesia:- • Metro Woodlands • Metro Pondok Indah • Metro Gandaria City • Metro Paragon • Metro Plaza Senayan • Metro Ciputra World Surabaya • Metro Centre
Slide 23: Financial Highlights
FINANCIAL HIGHLIGHTS 23
Slide 24: FY2018 Key Financial Highlights
FY2018 KEY FINANCIAL HIGHLIGHTS Achieved Higher Profit Before Tax (PBT) of $168.0 mil in FY 2018, grew by $85.5 mil against PBT of $82.5 mil in FY 2017 Property division - PBT grew by $89.0 mil from $81.2 mil in FY 2017 to $170.2mil in FY 2018 − Higher contribution from associates, mainly from Top S
Slide 25: Key Financial Highlights - Q4 2018
KEY FINANCIAL HIGHLIGHTS- Q4 2018 Turnover PBT S$ 34.3 mil S$ 6.0 mil 1.8% YoY 81.4% YoY Q4 2017 Q4 2017 S$ 33.7 mil S$ 32.5 mil Remarks: (1) Increase in turnover by 1.8% mainly attributable to the retail division (2) Profit Before Tax decreased by $26.5 mil, mainly attributable to: – $41.2 mil lowe
Slide 26: Key Financial Highlights - FY2018
KEY FINANCIAL HIGHLIGHTS- FY2018 Turnover PBT Basic EPS S$ 136.3 mil S$ 168.0 mil 18.9 cents 3.9% YoY 103.5% YoY 94.8% YoY FY 2017 FY 2017 FY 2017 S$ 131.2 mil S$ 82.5 mil 9.7 cents NAV Per Return on Return on Debt/ Share Equity Total Assets Equity S$ 1.78 11.1% 9.6 % 0.09 Maintained 9.2% YoY 88.1%
Slide 27: Key Financial Highlights - FY2018 Proposed Dividend
KEY FINANCIAL HIGHLIGHTS- FY2018 Proposed Dividend S$ 41.4 mil Comprises: • Ordinary Dividend Unchanged from - 2 cents FY 2017 • Special Dividend S$ 41.4 mil - 3 cents Dividend Cover 3.78x 93.8% YoY FY 2017 1.95x 27
Slide 28: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT 4th Quarter Ended Full Year Ended (S$ ‘000) 31-Mar-18 31-Mar-17 Change 31-Mar-18 31-Mar-17 Change Turnover 34,327 33,716 1.8% 136,326 131,224 3.9% Profit Before Tax 6,033 32,489 (81.4%) 167,981 82,541 103.5% Comprising: Metro City, Metro Tower, GIE Tower, 5 Chancery Lan
Slide 29: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS As at (S$ mil) Change 31-Mar-18 31-Mar-17 Investment Properties 100.2 104.4 (4.0%) Associates 544.2 507.7 7.2% Joint Ventures 419.9 382.7 9.7% Other Non-current Assets 84.8 101.0 (16.0%) Current Assets 552.8 460.2 20.1% Total Assets 1,701.9 1,556.0 9.4% Current Liabilities 1
Slide 30: Dividend Payout
DIVIDEND PAYOUT Cents per Share Payout Ratio 80% 8 60% 6 51.3% 51.1% 51.2% 46.5% 5 40% 4 4 4 34.8% 3 3 2 26.5% 20% 2 2 2 2 2 2 2 0 0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018* Payout rate Ordinary Special * FY2018’s proposed dividend subject to shareholders’ approval at the AGM in July 2018 30
Slide 31: Growth Strategies
GROWTH STRATEGIES 31
Slide 32: Growth Strategies (Retail)
GROWTH STRATEGIES (RETAIL) 1 Capitalise on retail brand name in Singapore and Indonesia 2 Increase market share 3 Improve assortment of merchandise 32
Slide 33: Growth Strategies (Retail)
GROWTH STRATEGIES (RETAIL) 4 Consolidate operational efforts to achieve higher efficiency and productivity 5 Continue focus on multi-media strategy 6 Enhance customer shopping experience 33
Slide 34: Growth Strategies (Property)
GROWTH STRATEGIES (PROPERTY) 1 Continue to grow presence in China, UK and Indonesia 2 Explore regional countries for diversification 3 Balanced portfolio of investment and development assets China • Commercial assets with retrofitting upside potential United Kingdom • Residential/commercial projects
Slide 35: Growth Strategies (Property)
GROWTH STRATEGIES (PROPERTY) 4 Strategic alliances with existing and new partners 5 Continue to achieve efficiency in capital recycling 6 Leverage on strong balance sheet and capital market PARTNERS 35
Slide 36: Thank You
THANK YOU 36
Slide 37: Market Outlook
MARKET OUTLOOK 37
Slide 38: Market Outlook: China
MARKET OUTLOOK: CHINA Stable and better quality growth in 2018 UBS, Chief Investment Office Monthly Base, May 2018 • China 1Q18 GDP growth stabilised at 6.8% YoY driven by resilient consumption, while investment evidently slowed • Growth should moderate on cooling property, slowing infrastructure in
Slide 39: Market Outlook: Shanghai, Office
MARKET OUTLOOK: SHANGHAI, OFFICE Steady economic growth • Shanghai, underpinned by steady 6.9% GDP growth in 2017, remains as the gateway city for most financial institutions and technology companies(1) • China pushes to open its financial sector, Shanghai should continue to attract foreign and dome
Slide 40: Market Outlook: Shanghai, Retail
MARKET OUTLOOK: SHANGHAI, RETAIL Retail sector bolstered by rising consumer demand Rising Prime Rents Savills, Shanghai Retail Market Report, Q1 2018 Colliers, Shanghai Property Market 2017 Review and 2018 Outlook, Q1 2018 Knight Frank, Shanghai Retail Market Report, Q4 2017 • Shanghai has robust gr
Slide 41: Market Outlook: Guangzhou, Office
MARKET OUTLOOK: GUANGZHOU, OFFICE Resilient Investment Interests Limited Supply; Declining Vacancies Knight Frank, Greater China Property Market Report, Q4 2017 • A number of major office sales transactions were recorded in emerging business areas, signalling demand – e.g. R&F Yingkai Plaza and Top
Slide 42: Market Outlook: Manchester, Residential
MARKET OUTLOOK: MANCHESTER, RESIDENTIAL UK’s most attractive city centre residential investment market JLL, Residential Forecasts-Northern England, Q1 2018 • The rapid growth of the city centre population has seen the emergence of distinct submarkets including a prime market around St John’s Deansga
Slide 43: Market Outlook: Sheffield, Office
MARKET OUTLOOK: SHEFFIELD, OFFICE A worthy investment: Strong occupancy with tight supply Knight Frank, UK Regional Cities Office Market Review,2018 • Prime rent has risen 4% from 2016 to 2017 as is forecasted to grow a further 4% in 2018, reaching £25.00 per sq ft • Prime office yields have hardene
Slide 44: Market Outlook: Central London, Office
MARKET OUTLOOK: CENTRAL LONDON, OFFICE Remarkable resilience despite Brexit Knight Frank, Central London, Quarterly Offices Research ,2018 Q1 CBRE, Central London Office, Q1 2018 • Brexit uncertainty has caused sterling to fall nearly 4.0% against the euro since last year and thus provides the maxim
Slide 45: Market Outlook: Singapore, Residential
MARKET OUTLOOK: SINGAPORE, RESIDENTIAL A Strong Recovery Savills, World Research-Singapore, 1Q2018 • Prices are expected to increase 12-15% in 2018 with much of the increase loaded into 2H/2018 – After a 0.7% increase in Q3/2017, the URA price index for private residential properties island-wide rec
Slide 46: Market Outlook: Singapore, Retail
MARKET OUTLOOK: SINGAPORE, RETAIL Resilient economic growth, rising sales • The Singapore economy grew 4.3% YoY in 1Q2018, continuing the 3.6% growth in 4Q2017(1); GDP growth is expected to grow 1.3% to 3.5% in 2018(2) • Singapore’s retail sales index for March 2018 rise 2.6% YoY (excluding motor ve
Slide 47: Market Outlook: Indonesia, Residential
MARKET OUTLOOK: INDONESIA, RESIDENTIAL Strong demand to mitigate rising supply Projected growth in prices JLL, Jakarta Property Market Review, Q1 2018 Savills, Asian Cities Report: Jakarta Residential, 2H 2017 • JLL maintains a cautiously optimistic view of the high-rise condo market in 2018, expect
Slide 48: Market Outlook: Indonesia, Retail
MARKET OUTLOOK: INDONESIA, RETAIL Resilient Growth • 2017 GDP rose 5.1% from 5.0% in 2016, marking the highest growth in four years due to stronger investment and net exports; Real GDP growth for 2018 projected at 5.3% (1) • Indonesian retail sales grew 2.5% in March 2018 YoY compared to February’s