Kerry Properties Limited · HKEX:683
Kerry Properties — H1 2023 Earnings Presentation
26 slides from Kerry Properties's earnings presentation, Aug 29, 2023
Slide 1: 2023 Interim Results
Stock Code: 683 2023 INTERIM RESULTS 29 AUGUST 2023 1
Slide 2: 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 3: Agenda
AGENDA 1. Results Highlights & Outlook 2. Development Properties 3. Investment Properties & Hotel Operations 4. Landbank 5. Financial Position & Sustainability 6. Q&A 3
Slide 4: Results Highlights & Outlook
R E S U LT S H I G H L I G H T S & O U T L O O K Mr. Kuok Khoon Hua Chairman & Chief Executive Officer 4
Slide 5: Results Highlights & Outlook
ROutlook E S U LT S H I G H L I G H T S • First half 2023 Profit Attributable to Shareholders of HK$1.74 billion (down 37%) year over year. • Underlying profit, excluding exceptional gains, increased 15% year over The Aster, Hong Kong year. • Development properties were well received. • Retail and o
Slide 6: Interim Results – Key Highlights
22022 Final 023 IN Results TERIM R E S U LT S – K E Y H I G H L I G H T S Revenue Contracted IP Revenue Profit Gearing N4 Interim Sales & Hotel Attributable to Dividend Operations Shareholders HK$5.5B HK$8.2B HK$3.4B HK$1.7B 33.3% HK$0.40/share + 18% vs. 1H 2022 +164% vs. 1H 2022 N1 +14% vs. 1H 2022
Slide 7: Outlook
OOutlook UTLOOK • Businesses and investors remain cautious and non-committal. La Montagne, Hong Kong • Positive on the longer-term fundamentals but expect that sentiment and market confidence will need more time to rebuild. • Taking a more cautious approach the focus will be on delivering Wuhan Mixe
Slide 8: Business Updates
B U S I N E S S U P D AT E S Mr. Dennis Au Executive Director & Deputy CEO 8
Slide 9: Development Properties Update
DEVELOPMENT PROPERTIES Mont Verra, Hong Kong UPDATE 9
Slide 10: Development Properties Performance: Property Sales
2022 E V E L OFinal DDevelopmentP M E NResults Properties T P R O P E R T–I EProperty S P E R F Osales RMANCE Property Sales 1H 2023 1H 2022 HK$ 9 HONG KONG HK$8.2B HK$8.2B 8 HK$7.7B Contracted Sales N1 $1.6B $2.3B 1.6B 2.0B 7 Major Projects Sold The Aster N2, Mont Rouge, Mont Rouge, 10 LaSalle, La
Slide 11: Development Properties: Mainland Pipeline
DEVELOPMENT PROPERTIES: MAINLAND PIPELINE Existing projects MAINLAND Major residential projects for pre-sales Shenyang Phase 3 Shenyang Qinhuangdao Pudong Park Towers Qinhuangdao Tianjin MAINLAND Zhengzhou Tianjin Phase 2 Shanghai Pudong Wuhan Hangzhou Wuhan River Mansion Fuzhou Zhengzhou Hangzhou R
Slide 12: Development Properties: Hong Kong Pipeline
D E V E LO P M E N T P RO P E RT I ES : H O N G KO N G P I P E L I N E KOWLOON Mont Verra La Marina Mont Verra The Aster HONG KONG ISLAND La Marina 2 La Montagne La Montagne The Aster 12
Slide 13: Investment Properties & Hotel Operations Update
INVESTMENT PROPERTIES & HOTEL OPERATIONS UPDATE Pudong Jufeng Road Project, Shanghai 13
Slide 14: Investment Properties: Mainland Overview
INVESTMENT PROPERTIES: MAINLAND OVERVIEW 1H2023 Mainland IP combined rental income improved 10% YoY, based on local currency. N1 Mainland Property Rental Overall Occupancy Level Shenzhen Combined rental revenue: HK$ 2.1B of Major Assets N3 Kerry Plaza (includes attributable rental income from associ
Slide 15: 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 Rental Income grew 2% YoY when excluding rental income from the warehouses disposed in 1H22. Hong Kong Property Rental Occupancy Level of Major Assets Combined rental revenue: HK$ 0.6B (includes attributable rental income from associa
Slide 16: Investment Properties & Hotel Operations Overview
IInvestment N V E S T M E NProperties T P R O P E R TOverview I E S : H O T–E LHong O P E Kong R AT I O N S Hotel revenue has returned to close to 90% of pre-covid levels in 2019. 1H 2023 hotel revenue: HK$851 M Occupancy Level of Major Hotels HK$ million Shanghai Shanghai Jing An Shangri-la Pudong
Slide 17: Landbank Update
LANDBANK UPDATE Huangpu Jinling Road Project, Shanghai 17
Slide 18: Hong Kong Landbank Update: Tsuen Wan Project
H O N G KO N G L A N D B A N K U P D AT E : T S U E N WA N P R O J E C T PROJECT SUMMARY Tender award February 2023 Site Details Site Area 89,987 sf (Square feet) PR GFA 314,309 sf Land Cost Total HK$ 1.44 Bn Subject Site * Land cost paid in 1H23 Subject Site Key Dates 2027 Pre-sales 2028 Estimated
Slide 19: Major Landbank Update: Jinling Road Project
Premium Grade A Offices M A J O R L A N D B A N K U P D AT E : J I N L I N G R O A D P R O J E C T Luxury Lifestyle Batch 1 Batch 2 PROJECT SUMMARY Golden Kilometer Connecting to The Bund Tender award Batch 1 January 2022 Batch 2 June 2023 Approximate 506,500 sm Total GFA Office 32% 25% (Square metr
Slide 20: Landbank Update: DP & IP Pipeline
LDevelopment A N D B A N K U PProperties D A T E : D P –& Completion I P P I P E L I N Pipeline E 2023 2024 2025 2026 2027 and onwards and onwards and beyond Attributable GFA ( s.f. Million) ▪ Zhengzhou ▪ Kunming ▪ Tianjin ▪ Shanghai ▪ Qianhai ▪ Wuhan Huangpu Mainland ▪ ▪ Qinhuangdao Shenyang ▪ Shan
Slide 21: Financial Position & Sustainability Updates
F I N A N C I A L P O S I T I O N & S U S TA I N A B I L I T Y U P D AT E S Ms. Suzanne Cheng Chief Financial Officer 21
Slide 22: Financial Position
F2022 I N A N CFinal I A L PResults OSITION Total Capital Green Total NAV Net Resources Financing Equity Per Share Debt HK$39.6B HK$30.7B HK$119.5B HK$73.2 HK$39.8B - 3% vs. 31 Dec 2022 + 6% vs. 31 Dec 2022 -2% vs. 31 Dec 2022 -2% vs. 31 Dec 2022 -3% vs. 31 Dec 2022 Cash & 31 Dec 22 HK$28.9B 31 Dec
Slide 23: Deleveraging Outlook
DDeleveraging E L E V E R A G I NRoadmap G O U T L O O K Properties – Completion Pipeline Development 2023 debt level will increase Proforma Gearing Estimation to mid 40% after the Huangpu payment Normalized Range 35% - 40% 33.6% 33.3% Mid 40% Gearing progressively declines from 2025 onwards 2022 FY
Slide 24: Capital & Treasury Management
CDeleveraging Active A P I T A& L Diligent & T RRoadmap E A SCapital U R Y MManagement Development A N Properties A G E M E N T – Completion Pipeline Key Metrics Interest Rate Swap Fixed Rate Debt to Undrawn Bank Loan Total Capital Resources Net Debt Cash & Bank Deposits Contracts Net Debt Facilitie
Slide 25: Sustainability Updates
SDeleveraging Active U S T A I& N ADiligent B I L Roadmap I T Y Capital U P D A T Management ES 92% Kerry Properties won the Properties obtained sustainable building Regional WELL Leadership Award (Asia) certification (2022: 88%) Sustainable Building Certification 27 LEED Gold or above 7 WELL Health
Slide 26: Q&A with Management
S_ ea = KERRY PROPERTIES Q&A WITH MANAGEMENT Kerry Properties Limited | 2023 Interim Results 26