Swire Properties Limited · HKEX:1972
Swire Properties — Investor Day (September 2017)
59 slides from Swire Properties's investor day presentation, Sep 19, 2017
Slide 1: Swire Properties Investor Day
Swire Properties Investor Day 19th September 2017 | Shanghai © Swire Properties Limited 太古地產有限公司
Slide 2: Agenda
Agenda Welcome by Swire Properties Chief Executive Guy Bradley Hong Kong & Mainland China Office Portfolio Don Taylor Hong Kong & Mainland China Retail Portfolio Alvin Kong HKRI Taikoo Hui Overview Clarence Lee Mainland China Business Strategies Tim Blackburn U.S. Portfolio & Sustainable Development
Slide 3: Management in Attendance
Management in Attendance Guy Bradley Tim Blackburn Alvin Kong Don Taylor Chief Executive Chief Executive Officer, Director, Retail Director, Office Mainland China Michelle Low Han Zhi Clarence Lee Fanny Lung Finance Director Director, Business General Manager, Finance Director Designate Development
Slide 4: Hong Kong & Mainland China Office Portfolio
Hong Kong & Mainland China Office Portfolio Don Taylor Director, Office
Slide 5: Diversified Hong Kong Office Portfolio
Diversified Hong Kong Office Portfolio 5 (1) GFA figures are on 100% basis. (2) The above excludes One Citygate (20% owned), 625 King’s Road (50% owned), Berkshire House (50% owned) and New Kowloon Inland Lot 6312, completion of the sale of which is conditional upon the relevant occupation permit an
Slide 6: Hong Kong Office Portfolio – A Strong Development Pipeline
Hong Kong Office Portfolio – A Strong Development Pipeline 6 (1) At 30th Jun 2017. (2) The second phase of the Taikoo Place redevelopment is expected to be completed in 2021 or 2022.
Slide 7: Completed Investment Properties | Office
Completed Investment Properties | Office Principal Occupancy Area Let Reversion (1) Latest Rentals(4) Properties New and renewed For the Headline tenancies, for the six months ended As at As at six months ended 30th Jun 2017, 31st Dec 2016 30th Jun 2017 30th Jun 2017 including rent reviews Hong Kong
Slide 8: Grade A office rents rose by 0.8% in Q2 2017
Grade A office Rents rose by 0.8% in Q2 2017 Central, WC & CWB Rents are now at an historical high 8 Source: Savills Research & Consultancy Disclaimer: The above information is provided for reference purpose and may be subject to change without prior notice.
Slide 9: Taikoo Place
ibs eTTAlitit HUCTTTITTTT ys i — wunrere Taikoo Place Di SwikRE PROPERTIES
Slide 10: Central-Wanchai Bypass
Central-Wanchai Bypass EASTERN HARBOUR WESTERN HARBOUR CROSSING n CROSSING jstand Easter Corrigg, CROSS HARBOUR TUNNEL 10 Di SwikRE PROPERTIES
Slide 11: Taikoo Place Today
Taikoo Place Today a ¥ ie Y NS y' x Go \ - > S Ve E 3 S, ) i E e dl i a CONSTRUCTION SITE i TONG CHONG STREET a CONSTRUCTION SITE CONSTRUCTION sive i i Sn | *e OVOY SONVILS3M| PAN HOI STREET # TAIKOO SHING ROAD 11 Di SwikRE PROPERTIES
Slide 12: Taikoo Place Redevelopment
Taikoo Place Redevelopment 12
Slide 13: Taikoo Place - Office Tenant Mix
Taikoo Place - Office Tenant Mix 13
Slide 14: Taikoo Place Redevelopment - One Taikoo Place
Taikoo Place Redevelopment - One Taikoo Place Artist impression Artist impression 14
Slide 15: Taikoo Place Redevelopment - One Taikoo Place
Taikoo Place Redevelopment - One Taikoo Place 15
Slide 16: blueprint
blueprint 16 Di SwikRE PROPERTIES
Slide 17: ArtisTree
ArtisTree ArtisTree 17 Di SwikRE PROPERTIES
Slide 18: The Loop
The Loop fe SWIRE PROPERTIES 18 bi SwiRE PROPERTIES
Slide 19: The Refinery
The Refinery Di SwikRE PROPERTIES
Slide 20: Rents are keeping pace with the transformation
Rents are keeping pace with the transformation 20 Source: Savills Research & Consultancy Disclaimer: The above information is provided for reference purpose and may be subject to change without prior notice.
Slide 21: 8-10 Wong Chuk Hang Road
8-10 Wong Chuk Hang Road + 382,500 sq ft NE * Grade A office development { » Expected Completion 2018 We f bf Ch 21 Di SwikRE PROPERTIES
Slide 22: Mainland China Office Portfolio
Mainland China Office Portfolio
Slide 23: Mainland China Existing Office Portfolio
Mainland China Existing Office Portfolio 23 (1) GFA figures are on 100% basis.
Slide 24: Mainland China Office Portfolio Growth
Mainland China Office Portfolio Growth 24 (1) At 30th Jun 2017
Slide 25: Shanghai will overtake Hong Kong in Grade A Office Stock
Shanghai will overtake Hong Kong in terms of Grade A Office Stock this year 25 Source: Savills Research & Consultancy Disclaimer: The above information is provided for reference purpose and may be subject to change without prior notice.
Slide 26: Hong Kong & Mainland China Retail Portfolio
Hong Kong & Mainland China Retail Portfolio Alvin Kong Director, Retail
Slide 27: Our Portfolio
Our Portfolio TaiKoo Hui Sino-Ocean Taikoo Li Taikoo Li Sanlitun INDIGO HKRI Taikoo Hui Chengdu Sales YoY +30.3% +46.8% +6.5% +68.5% - Occupancy 99% 94% 95% 99% 93%(2) GFA (sq ft) 1.5 M 1.2 M 1.3 M 0.9 M 1.1 M Qiantan Project (1.2m sq ft) Tung Chung Town Lot No. 11 Beijing (0.5m sq ft) Pacific Place
Slide 28: Our Brand Structure
Our Brand Structure 13 pan LAL “a ra HKRI TAIKO HUI J SWIRE PROPERTIES
Slide 29: Our Management Strategy
Our Management Strategy • Creative transformation • Active asset management • Unique design and positioning 29
Slide 30: Our Competitive Advantage
Our Competitive Advantage • Swire / Taikoo • Teams • Centres 30
Slide 31: Our Near-Future Action List
Our Near-Future Action List • Tenant mix improvement • Asset enhancement • Customer relationship management 31
Slide 32: HKRI Taikoo Hui Overview
HKRI Taikoo Hui Overview Clarence Lee General Manager, Leasing & Management, HKRI Taikoo Hui
Slide 33: HKRI Taikoo Hui - Prime Location
HKRI Taikoo Hui - Prime Location HKRI TAIKOO HUI Prime downtown location Junction of 2 elevated highways Connections to 3 metro lines (Direct connection to line nos. 2 & 13, line no. 12 nearby) Hongqiao Airport Convenient access by car and public transport Pudong Airport 33
Slide 34: HKRI Taikoo Hui - Total Integration
HKRI Taikoo Hui - Total Integration Sizeable mixed-used development The largest retail mall on Nanjing West Road (1.1M sq ft) 2 office towers (1.8M sq ft) 3 hotels / serviced apartments (414 rooms) With 1,200 car parking spaces The Sukhothai Shanghai 247,669 sf Cha House The Middle House R
Slide 35: HKRI Taikoo Hui - Phases
HKRI Taikoo Hui - Phases Aug 2016 Occupation Permits for shopping mall and HKRI Centre 1 obtained. Dec 2016 HKRI Centre 1 opened. Mar 2017 Occupation Permit for HKRI Centre 2 obtained. May 2017 Shopping mall soft opened. Now Retail: 93% leased (1) and 72% of shops opened. HKRI Centre 1:
Slide 36: HKRI Taikoo Hui – Retail Tenant Mix
HKRI Taikoo Hui – Retail Tenant Mix Key Anchors City Super Space Cycle Jade Garden Starbucks Roastery Shanghai Club First-time tenants in Shanghai / Mainland China F&B Café Theatre Tea Chinese Cuisine Ho Hung Kee Let’s Taipei Cosmetics Atelier Cologne Confectionery Cha Ling Garrett Popcorn Gucci Cos
Slide 37: HKRI Taikoo Hui – Office Tenant Mix
HKRI Taikoo Hui – Office Tenant Mix Tesla Electronic Arts Junhe Bally Riot Games Jones Lang LaSalle H&M The Executive Centre KKR Amore Pacific Lilly Blackstone Clifford Chance Fangda Partners Warburg Pincus Strong and diverse tenant base. Well-balanced lease expiry profile. 37 (1) As at 1st Aug
Slide 38: HKRI Taikoo Hui - Office - Relocation Drivers
HKRI Taikoo Hui - Office - Relocation Drivers • Staff Retention - Location • Corporate Social Responsibility • Staff Protection • Getting to Work - Transportation • Sustainability • Innovation • Staff Lifestyle • Respected Developers • Unique Opportunity • In-House Property Management-Reliability 38
Slide 39: Mainland China Business Strategies
Mainland China Business Strategies Tim Blackburn Chief Executive Officer, Mainland China 39
Slide 40: Property Portfolio
Property Portfolio Investment Props / Hotels Office Retail Hotels(2) Resid./Serviced Under- Total Attributable Investment Props by Attributable GFA (M sq ft)(1) apartments Planning Region (GFA) Completed 10% Hong Kong 9.0 2.5 0.7 0.6 - 12.8 U.S.A. and Elsewhere Mainland China 2.9 4.5 1.0 0.1 - 8.5 2
Slide 41: Mainland China Pipeline Coming to Fruition
Mainland China Pipeline Coming to Fruition Retail Opening TaiKoo Hui, Guangzhou Taikoo Li Sanlitun, Beijing INDIGO, Beijing Sino-Ocean Taikoo Li Chengdu HKRI Taikoo Hui, Shanghai Before Site of Guangzhou Daily Old Embassy area Jiangtai Daci Temple Jing’an Now TaiKoo Hui Taikoo Li Sanlitun INDIGO Sin
Slide 42: Growing Rental Contributions
Growing Rental Contributions Attributable Gross Rental Income Rental Contribution – 1H 2017 HK$’M Attributable Gross Rental Income HK$ 1,531M, 19% almost doubled since 2012 RMB 1,349M, 24% Attributable Gross Rental (1) (1H 2017) 2,614 2,463 2,153 1,751 1,457 * By attributable gross rental income. HK
Slide 43: Mainland China Business Strategies
Mainland China Business Strategies Sustained appetite for more investment in Mainland China. Beijing Continue to follow a patient strategy focusing Shanghai on major cities with existing presence and Chengdu established track records. Guangzhou Continue to develop JV partnership strategy worki
Slide 44: Development Focus
Development Focus Asset Reinforcement Projects Commercial (Investment) Retail-led mixed-use development projects 1st Tier cities Downtown model Other prime locations Taikoo Li Sanlitun Residential (Trading) 1st Tier cities Leveraging strong brand and design capability INDIGO 44
Slide 45: Potential Pipeline - Qiantan Project
Potential Pipeline - Qiantan Project Sino-Ocean Taikoo Li Chengdu 8.8 M sq ft Taikoo Li Sanlitun INDIGO Exp. Attributable Completed GFA Beijing Shanghai HKRI Taikoo Hui TaiKoo Hui Chengdu Guangzhou Qiantan Project, Shanghai Framework Agreement signed. Retail development. 45
Slide 46: U.S. Portfolio
U.S. Portfolio Guy Bradley Chief Executive
Slide 47: Well-established in Miami for over 30 years
Well-established in Miami for over 30 years 1979 Today Transformation of Brickell Key Island through residential development Retail-led mixed use development 1982 1997 1999 2001 2003 2004 2005 2008 2016 Residential Projects Mixed-use Development 47
Slide 48: Strategies in the U.S.
Strategies in the U.S. Focus remains on the Miami market. Leveraging the strong brand established from residential development since early 1980s. Land bank available for development of investment and residential trading properties Brickell City Centre (One Brickell City Centre under planning a
Slide 49: Brickell City Centre, Miami
Brickell City Centre, Miami GFA of Completed Property Portfolio in USA (100%) (1)(2)(3) One Brickell 80-storey tower – retail, office, 2,527 hotel & residential(4) spaces. City Centre Shanghai GFA 263 hotel rooms and 89 serviced (‘000 sq ft) apartments. Revenue per available room is improving.
Slide 50: Brickell City Centre - Major Tenants
Brickell City Centre - Major Tenants Retail Tenants Saks Fifth Avenue Zara CMX The VIP Cinema Apple La Centrale Italian Food Hall Quinto La Huella Office Tenants Akerman WeWork McKinsey&Company 50
Slide 51: Trading Properties in Miami
Trading Properties in Miami Future Residential Development 523,000 sf Future Mixed-use Development 1,444,000 sf Artist Impression *Rise and Reach Condominiums have been developed for trading purpose. Floor area shown represents the unsold portion. Reach and Rise Reach 360 out of 390 units sold since
Slide 52: Sustainable Development Strategies
Sustainable Development Strategies Guy Bradley Chief Executive
Slide 53: OMT, VISION tO DE éading le}
OMT, VISION 15 tO DE éading le} ~ Sus faint felblopft | eal Ly gus sid if Vx 53 Di SwikRE PROPERTIES
Slide 54: SD 2030 Strategy Framework
SD 2030 Strategy Framework In support of our vision, we have developed the Sustainable Development Strategy (SD 2030) that is organised around five strategic pillars. 54
Slide 55: Seamless Integration of Sustainability into Our Design and Businesses
Seamless Integration of Sustainability into Our Design and Businesses Indoor Air Quality Energy consumption Climate Ribbon™ INDIGO, Beijing Hong Kong portfolio Brickell City Centre, Miami INDIGO was rated by a social 18.9% reduction in energy Climate Ribbon™ serves as a media platform as
Slide 56: Global or Regional Sustainability Indices and Rankings
Performance Global or Regional Sustainability Indices and Rankings 2015 2016 2017* *Member of DJSI World Index 2017 (the only company in HK & Mainland 2016 2017 Top 15% globally; 1 of 3 HK China included); 1 of 3 HK developers listed developers listed *87 percentile ranking 2015 2016 2017* 2017 *Top
Slide 57: Closing Remarks
Closing Remarks Guy Bradley Chief Executive © Swire Properties Limited
Slide 58: Business Well-placed for Continuous Growth
Business Well-placed for Continuous Growth Game-changing projects in Shanghai, Miami and Hong Kong (Taikoo Place). A solid project pipeline across all our markets. Mainland China projects bearing fruit. Artist impression 58
Slide 59: Thank you!
Thank you! Di SwiRE PROPERTIES