Megaworld Corp. · PSE:MEG
Megaworld — 9M 2022 Earnings Presentation
44 slides from Megaworld's earnings presentation, Nov 14, 2022
Slide 1: Nine Months 2022 Results
MEGAWORLD CORPORATION NINE MONTHS 2022 RESULTS Analysts' Presentation 14 November 2022
Slide 2: Financial Update
™ a = S39 ——a % » FINANCIAL Je eee te UPDATE Nala
Slide 3: Performance Update
PERFORMANCE UPDATE In PHP Billions 3Q22 2Q22 QoQ 3Q21 YoY 9M22 9M21 YoY Double-digit YoY topline growth across all business REVENUES 15.0 14.3 5% 14.5 4% 42.5 36.9 15% segments driven mainly by resurgence in economic COSTS & EXPENSES 12.1 11.1 9% 11.2 8% 32.8 28.3 16% activity with increased mobilit
Slide 4: Revenue Breakdown P42.5B
REVENUE BREAKDOWN P42.5B 15% TOTAL REVENUES REAL ESTATE SALES 13% P17.0B Improved construction activity, higher completion rate P26.2B OFFICE RENTALS 12% Higher rent from new leases and escalations; stable occupancy P6.0B MALL RENTALS 51% Increased mobility, higher spending and reduced rental conces
Slide 5: Strong Balance Sheet
STRONG BALANCE SHEET P100.5 BILLION P63.3B GROSS DEBT NET DEBT TYPE OF DEBT INTEREST RATE CURRENCY 27% NET DEBT /EQUITY 38% 41% Bond Fixed PHP 47% 53% Loans Floating USD 59% 62% P35.0B CAPEX SPENDING 5
Slide 6: Operating Update
OPERATING UPDATE
Slide 7: Real Estate
REAL ESTATE REAL ESTATE SALES P26.2B ↑13% YoY P85.6B RESERVATION SALES vs P90B FY2022 Target P29.1B PROJECT LAUNCHES vs P30B FY2022 Target Countrywoods 7 Twin Lakes
Slide 8: P26.2 Billion Real Estate Sales
REAL ESTATE SALES P26.2 BILLION REAL ESTATE SALES By Segment By Location By Classification 21% UPPER-MIDDLE 34% TAGUIG CITY 33% RESIDENTIAL 7% 13.2 TO HIGH-END UNITS 78% SEGMENT 71% LOW-MIDDLE 44% METRO MANILA EX-TAGUIG 1% RESIDENTIAL 24% 1% LOTS TO ECONOMIC SEGMENT LUZON CONDOTELS 48% 19% 19% EX-MM
Slide 9: P85.6 Billion Reservation Sales
RESERVATION SALES P85.6 BILLION RESERVATION SALES Buyers’ Profile By Location By Classification LOCAL METRO MANILA VERTICAL 80% 51% 77% FOREIGN PROVINCIAL HORIZONTAL 20% 49% 23% 9 9
Slide 10: Project Launches: Montrose Parkview
PROJECT LAUNCHES MONTROSE PARKVIEW THE CAPITAL TOWN | PAMPANGA P2.8 BILLION PROJECT VALUE P232,000 CURRENT SELLING PRICE 51% PERCENTAGE SOLD SEP 2022 DATE LAUNCHED 10
Slide 11: Project Launches: The Lindgren Ph3
PROJECT LAUNCHES THE LINDGREN – Ph3 ARDEN BOTANICAL ESTATE | CAVITE P2.7 BILLION SALEABLE AREA P99,000 CURRENT SELLING PRICE PER SQM 13% PERCENTAGE SOLD SEP 2022 DATE LAUNCHED 11
Slide 12: Project Launches: Prana Garden Villas
PROJECT LAUNCHES PRANA GARDEN VILLAS TRECE MARTIRES, CAVITE P1.4 BILLION PROJECT VALUE P30,000 CURRENT SELLING PRICE PER SQM 5% PERCENTAGE SOLD SEP 2022 DATE LAUNCHED 12
Slide 13: Offices
OFFICES OFFICE RENTALS P9.1B ↑12% YoY OFFICE GLA 1.4M SQM OCCUPANCY RATE 92% VS 90% IN 9M21 13
Slide 14: New Leases vs Occupancy
NEW LEASES vs OCCUPANCY 92% Total closed transactions 82% 82% reached 230,000 sqm, 7.5% higher than same period last year. 48% of the transactions closed as of 9M2022 are 692 new leases. 641 Megaworld Premier Offices 111 captured up to 17% of the Colliers Leechiu MPO reported new leases in the marke
Slide 15: Office Pipeline: No. 1 Upper East Avenue
OFFICE PIPELINE NO. 1 UPPER EAST AVENUE THE UPPER EAST | BACOLOD CITY 8,600 SQM GROSS LEASABLE AREA 2022 COMPLETION YEAR 15
Slide 16: Office Pipeline: International Finance Center
OFFICE PIPELINE INTERNATIONAL FINANCE CENTER UPTOWN BONIFACIO | TAGUIG CITY 69,000 GROSS LEASABLE AREA 2024 COMPLETION YEAR 50% PRE-LEASING COMMITMENT
Slide 17: Office Pipeline: Enterprise & Iloilo Business Park
OFFICE PIPELINE ENTERPRISE 1 & 2 ILOILO BUSINESS PARK | ILOILO CITY 66,600 SQM GROSS LEASABLE AREA 2024-2025 COMPLETION YEAR 17
Slide 18: Office Pipeline: Pasudeco & The Capital Town
OFFICE PIPELINE PASUDECO 1 & 2 THE CAPITAL TOWN | SAN FERNANDO, PAMPANGA 19,300 SQM GROSS LEASABLE AREA 2024-2025 COMPLETION YEAR
Slide 19: Office Pipeline: Two McWest
OFFICE PIPELINE TWO MCWEST MCKINLEY WEST | TAGUIG CITY 54,400 SQM GROSS LEASABLE AREA 2025-2026 COMPLETION YEAR
Slide 20: Offices Under Planning Phase
OFFICES UNDER PLANNING PHASE 20
Slide 21: Green and Sustainable Certification
GREEN AND SUSTAINABLE 7 GOLD CERTIFICATION 10 SILVER CERTIFICATION 21
Slide 22: MREIT: Operating Highlights
MREIT: OPERATING HIGHLIGHTS Tenant Mix (by GLA) 77% 17% 3% 3% BPO Traditional Retail Hotel Tenant Breakdown (by GLA) 95% Occupancy Rate 8% 6% 5% 3.2 years Weighted Average Lease Expiry 5% (WALE) 52% Top 10 tenants 48% 5% 3% 4% 12,900 SQM 3% 3Q2022 Closed Transactions 3% 3%3% 22
Slide 23: MREIT: Financial Highlights
MREIT: FINANCIAL HIGHLIGHTS In PHP millions 3Q22 2Q22 QoQ 3Q21 YoY 9M22 Revenues 917.0 892.9 2% 711.2 29% 2,711.5 Direct Operating Costs -204.7 -132.2 55% -93.2 119% 469.2 Gen & Admin Expenses -10.4 -9.8 36% -4.7 36% 27.8 CUSA rates were adjusted 702.0 750.9 -8% 613.3 15% 2,214.5 to reflect the curr
Slide 24: Dividend Distribution
DIVIDEND DISTRIBUTION Dividend per Share (P) 0.055 P1.214 0.240 0.243 0.247 0.244 Total dividends per share 0.185 since IPO Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2023 8.2% Annualized Dividend (2022)
Slide 25: Lifestyle Malls
LIFESTYLE MALLS P2.3B MALL RENTALS ↑51% YoY MALL GLA 462K SQM 90% OCCUPANCY RATE VS 82% IN 9M21 Southwoods Mall 25
Slide 26: Improving Retail Performance
IMPROVING RETAIL PERFORMANCE Operational occupancy rate P506 AVERAGE DAILY SPEND 159,00 expected to further increase by the end of the year 0 AVERAGE DAILY FOOT TRAFFIC ( 20% vs PRE-PANDEMIC) ( 41% vs PRE-PANDEMIC) Mall rentals to improve as fixed rent is escalated gradually taking into account tena
Slide 27: Malls Pipeline: McKinley Whisky Park
MALLS PIPELINE MCKINLEY WHISKY PARK MCKINLEY WEST | TAGUIG CITY 5,200 SQM GROSS LEASABLE AREA 2022 COMPLETION YEAR
Slide 28: Malls Pipeline: D' Olive
MALLS PIPELINE D’ OLIVE EASTLAND HEIGHTS | ANTIPOLO, RIZAL 5,400 SQM GROSS LEASABLE AREA 2022 COMPLETION YEAR
Slide 29: Malls Pipeline: Davao Whisky Park
MALLS PIPELINE DAVAO WHISKY PARK DAVAO PARK DISTRICT | DAVAO CITY 3,000 SQM GROSS LEASABLE AREA 2023 COMPLETION YEAR
Slide 30: Malls Pipeline: Park McKinley West
MALLS PIPELINE PARK MCKINLEY WEST MCKINLEY WEST| TAGUIG CITY 7,000 SQM GROSS LEASABLE AREA 2023 COMPLETION YEAR 30
Slide 31: Malls Pipeline: Boracay Newcoast Beachwalk
MALLS PIPELINE BORACAY NEWCOAST BEACHWALK BORACAY NEWCOAST | MALAY, AKLAN 31,500 SQM GROSS LEASABLE AREA 2025 COMPLETION YEAR
Slide 32: Malls Pipeline: The Capital Mall
MALLS PIPELINE THE CAPITAL MALL THE CAPITAL TOWN | PAMPANGA 32,200 SQM GROSS LEASABLE AREA 2025 COMPLETION YEAR
Slide 33: Malls Pipeline: Maple Grove
MALLS PIPELINE MAPLE GROVE MAPLE GROVE | CAVITE 31,700 SQM GROSS LEASABLE AREA 2025 COMPLETION YEAR
Slide 34: Malls Pipeline: Highland Mall and Park
MALLS PIPELINE HIGHLAND MALL AND PARK HIGHLAND CITY | CAINTA, RIZAL 35,000 SQM GROSS LEASABLE AREA 2026 COMPLETION YEAR
Slide 35: Malls Pipeline: Upper East Mall
MALLS PIPELINE UPPER EAST MALL THE UPPER EAST | BACOLOD 13,700 SQM GROSS LEASABLE AREA 2026 COMPLETION YEAR
Slide 36: Hotels
HOTELS HOTEL REVENUES P1.8B ↑38% YoY HOTEL ROOM 4,163 KEYS OCCUPANCY RATE 61% (METRO MANILA) Savoy Hotel Boracay 36
Slide 37: Hotel Performance
HOTEL PERFORMANCE Hotel Revenues (Pm) vs EBITDA 24% Hotel revenues nearing pre- pandemic levels driven by the 12% 13% sustained performance of in- city hotels and the pick-up in 2% leisure-related activities. 1,871 1,757 Cost-management initiatives alleviate the rising costs of 1,277 1,168 hotel ope
Slide 38: Hotels Pipeline: Belmont Hotel Mactan
HOTELS PIPELINE BELMONT HOTEL MACTAN THE MACTAN NEWTOWN | CEBU 551 ROOMS HOTEL ROOM KEYS 2022 COMPLETION YEAR
Slide 39: Hotels Pipeline: Chancellor Hotel Boracay
HOTELS PIPELINE CHANCELLOR HOTEL BORACAY BORACAY NEWCOAST | AKLAN 554 ROOMS HOTEL ROOM KEYS 2023 COMPLETION YEAR
Slide 40: Hotels Pipeline: Grand Westside Hotel
HOTELS PIPELINE GRAND WESTSIDE HOTEL WESTSIDE CITY | PARANAQUE 1,530 ROOMS HOTEL ROOM KEYS 2023 COMPLETION YEAR
Slide 41: 2022-2023 Targets Townships
2022-2023 TARGETS 4 TOWNSHIPS
Slide 42: 2022 Targets (Revised)
2022 TARGETS (REVISED) P35B P50B PROJECT LAUNCHES P110B CAPEX BUDGET ACROSS 14 PROJECTS RESERVATION SALES 42
Slide 43: Key Takeaways
KEY TAKEAWAYS REAL ESTATE Continued improvement of real estate revenues is expected on the back of the increase in construction activities and renewed demand for residential units. OFFICES Improvement in occupancy despite the challenges in the office segment LIFESTYLE MALLS Surge in rental income dr
Slide 44: Nine Months 2022 Results
MEGAWORLD CORPORATION NINE MONTHS 2022 RESULTS Analysts' Presentation 14 November 2022