Kerry Properties Limited · HKEX:683
Kerry Properties — H1 2024 Earnings Presentation
20 slides from Kerry Properties's earnings presentation, 2024
Slide 1: FY 2024 Interim Results
Stock Code: 683 FY 2024 INTERIM RESULTS Kerry Properties Limited 2024 Interim Results 11
Slide 2: Results Highlights & Outlook
RESULTS HIGHLIGHTS & OUTLOOK Mr. Kuok Khoon Hua Chairman & Chief Executive Officer Kerry Properties Limited 2024 Interim Results 2
Slide 3: Results Highlights
R E S U LT S H I G H L I G H T S • Our core markets of Hong Kong and select cities on the Mainland continued to face strong headwinds. • Hong Kong residential transactions ticked up significantly in March and April following the removal of property cooling measures, but noticeably slowed down from M
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS Interim dividend maintained 1H 2024 1H 2023 Change Combined revenue Combined revenue (HK$ million) N1 6,039 9,543 -37% 1H 2024 1H 2023 - Hong Kong 2,052 6,194 -67% By region - Mainland 3,987 3,349 +19% 34% 35% Hong Kong Combined revenue (HK$ million) N1 6,039 9,543 -37% Mainland
Slide 5: Outlook
OUTLOOK Ta k i n g c a u t i o u s a p p r o a c h a m i d m a r k e t h e a d w i n d s • We expect the general demand for residential properties in Hong Kong and on the Mainland to remain subdued due to continued softness in business and consumer sentiment, unfavourable supply-and-demand dynamics,
Slide 6: Operational Updates
OPERATIONAL UPDATES Ms. Suzanne Cheng Chief Financial Officer Kerry Properties Limited 2024 Interim Results 6
Slide 7: Development Properties: Contracted Sales
DEVELOPMENT PROPERTIES: CONTRACTED SALES Contracted sales mainly from Hong Kong Properties Contracted sales N1 HONG KONG 1H 2024 1H 2023 (HK$ billion) Contracted sales N1 HK$5.8 billion HK$1.6 billion 8.2 YoY Change % -14% Contracted sales N1 1.6 7.0 83% 19% 19% % as % of total Major projects sold •
Slide 8: Development Properties: Revenue Recognition
DEVELOPMENT PROPERTIES: REVENUE RECOGNITION Majority of property sales booking expected in 2H 2024 and 2025 Recognised revenue N1 Contracted sales yet to be recognised N1 (HK$ billion) (HK$ billion) Hong Kong Projects recognised Saleable resources N2 17.2 (as at 30 Jun 2024) (1H 2024) • La Marina 42
Slide 9: Investment Properties: Mainland Overview
INVESTMENT PROPERTIES: MAINLAND OVERVIEW Stable rental performance with a cautious outlook Mainland Combined Rental Revenue N1 Mainland Occupancy Levels N3 (HK$ million) YoY change -2% By Asset Type 2,086 2,053 92.0% 92.0% 83 73 -13% 181 180 -0.4% Mainland combined 88.0% 88.0% 88.0% 623 +6% rental r
Slide 10: Investment Properties: Hong Kong Overview
I N V EST M E N T P RO P E RT I ES : H O N G KO N G OV E RV I E W Small drop in rental revenue Hong Kong Combined Rental Revenue N1 Hong Kong Occupancy Levels N4 (HK$ million) YoY change 640 By Asset Type 596 -7% 7 94 5 -32% Excluding impact 96.0% 61 -35% 95.0% 95.0% from conversion of 93.0% The Ast
Slide 11: Development Properties: Completion Timeline
DEVELOPMENT PROPERTIES: COMPLETION TIMELINE Decent pipeline over the next four years Attributable GFA Attributable GFA (million s.f.) 0.5 Hong Kong Mainland Group Total ~10 3.0 0.4 million s.f. 2.8 1.4 1.3 0.4 2H 2024 2025 2026 2027 2028 Wong Chuk Hang Tseung Kwan O Yuen Long Hangzhou Shenzhen Qianh
Slide 12: Financial Position & Sustainability Updates
FINANCIAL POSITION & SUSTAINABILITY UPDATES Ms. Suzanne Cheng Chief Financial Officer Kerry Properties Limited 2024 Interim Results 12
Slide 13: Capital & Treasury Management
C A P I TA L & T R E A S U R Y M A N A G E M E N T Remains healthy with conservative interest rate and gearing expectation Undrawn Bank Loan Total Capital Resources Net Debt Average Cash & Bank Deposits HK$48.5 bn Facilities HK$37.4 bn Debt Maturity HK$12.4 bn (31 Dec 2023: HK$44.9 bn) (31 Dec 2023:
Slide 14: Capital & Treasury Management: RMB debt mix
C A P I TA L & T R E A S U R Y M A N A G E M E N T RMB debt mix increased further to 28% Fixed Rate Debt to Interest Rate Swap Contracted Effective Interest Rate N2 Gross Debt N1 HK$19.1 bn 4.6% (31 Dec 2023: HK$19.5 bn) 44% (FY 2023: 4.7%, 1H 2023: 4.3%) (31 Dec 2023: 43%, 30 Jun 2023: 36%) Gross d
Slide 15: Sustainability Updates
S U S TA I N A B I L I T Y U P D AT E S Recent accreditations • Upgraded to AA rating • Inclusion in Sustainability Yearbook (China) 2024 (2023: A) Top 15% of Chinese companies in the Real Estate Management and Development Industry Kerry Properties Limited 2024 Interim Results 15
Slide 16: Q&A Session
Q&A Session Kerry Properties Limited 2024 Interim Results 16
Slide 17: Appendix
Appendix Kerry Properties Limited 2024 Interim Results 17
Slide 18: Consolidated Income Statement
C O N S O L I D AT E D I N C O M E S TAT E M E N T (HK$ million) 1H 2024 1H 2023 Change Revenue 5,040 5,472 -8% Cost of sales and direct expenses (2,570) (2,712) 5% Gross profit 2,470 2,761 -11% Other income and net gains 25 374 -93% Selling, administrative and other operating expenses (871) (904) 4
Slide 19: Disclaimer
DISCLAIMER 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 information,
Slide 20: Thank you
Stock Code : 683 Thank you Kerry Properties Limited 2024 Interim Results 20