Slide 1: 2022 Interim Results Investor Presentation
2022 INTERIM RESULTS INVESTOR PRESENTATION 1 8 A U G U S T 2 0 2 2
Slide 2: Key Summary
KEY SUMMARY Revenue Gross Profit Underlying Profit N1 Interim Dividend HK$4.6B HK$2.5B HK$2.8B HK$0.40/share -27% YoY -30% YoY +18% YoY Maintained Property Sales -42% YoY Property Sales -54% YoY Profit Attributable HK$ 2.8B -27% YoY Payout ratio 20.8% Property Rental -6% YoY Property Rental -7% YoY
Slide 3: 2022 Interim Results Highlights
2022 INTERIM RESULTS HIGHLIGHTS HONG KONG PROPERTY Key Properties Sales ✓ 10 LaSalle, La Marina and Mont Rouge Non-core Asset Disposal ✓ Shatin and Chai Wan warehouses (June 2022) 2022 2H Major DP Projects ✓ Mont Verra, La Marina, Mont Rouge For-Sale DP Pipeline ✓ Accumulated attributable GFA for up
Slide 4: 1st Half: COVID Support to Our Tenants, Colleagues & Community
1ST HALF : COVID SUPPORT TO OUR TENANTS, COLLEAGUES & COMMUNITY • In Hong Kong: o The Group provided rental relief to our retail tenants that were affected by weak foot traffic during the fifth wave. o In March, as the city was facing temporary food and supplies shortages, our HK team set-up a pop-u
Slide 5: 1H 2022 Results Snapshot: Revenue by Segment
1H 2022 RESULTS SNAPSHOT Revenue by Segment Stable Rental Business Supports Improving Development Property Sales Property Sales -42% YoY Property Rental -6% YoY Hotel Operations -46% YoY HK$ billion YoY HK$ billion YoY HK$ billion YoY Mainland Variance Mainland Variance Mainland Variance HK HK 2.7B
Slide 6: 1H 2022 Results Snapshot: Gross Profit Margins
1H 2022 RESULTS SNAPSHOT Gross Profit Margins Resilient Performance amid Challenging Period Gross Profit Margin Performance 1H 2021 1H 2022 77% 76% 57% 55% 46% 36% 34% 5% Property Sales Property Rental Hotel Operations Total • The overall gross profit margin (GPM) for the Group’s development propert
Slide 7: Development Properties: Contracted Sales Performance
DEVELOPMENT PROPERTIES Contracted Sales Performance (excluding warehouse) Achieved 44% of Full-Year 2022 Sales Target of HK$7B 1H 2022 Full Year Net Order DP Contracted Sales Sales Snapshot to Book HK$ billion YoY HK$ billion 2022 Sales HK$ billion YoY Mainland Variance Mainland Progress Mainland Va
Slide 8: Development Properties – 2022 Sales Pipeline
DEVELOPMENT PROPERTIES – 2022 SALES PIPELINE 2H 2022 Contracted Sales Pipeline HONG KONG MAINLAND Shenyang Phase III Qinhuangdao Phase II Zhengzhou Fuzhou To be launched in 2H 2022 Kunming Hangzhou Tianjin Phase II To be launched in 2H 2022 KERRY PROPERTIES LIMITED • 2022 INTERIM RESULTS 8
Slide 9: Investment Properties Portfolio Performance
INVESTMENT PROPERTIES Investment Properties Portfolio Performance Retail offset by Resilient Office and Apartment Occupancy Total Property Rental Revenue Property Rental Revenue Hotel Operations Revenue (Including attributable rental income from associates) HK$ million HK$ million HK$ million YoY Ma
Slide 10: Investment Properties Portfolio Performance: Occupancy
INVESTMENT PROPERTIES Investment Properties Portfolio Performance Retail offset by Resilient Office and Apartment Occupancy, Hotels remained challenging Investment Properties Occupancy Rate Hotel Operations Occupancy Rate Hong Kong IP As at 30 Jun 2022 As at 31 Dec 2021 Mainland Major Hotels – Avera
Slide 11: Strong IP Portfolio Delivered Stable Margins and Steady Recurrent Profit
INVESTMENT PROPERTIES Strong IP Portfolio delivered Stable Margins and Steady Recurrent Profit 1H 2022 Total Gross Profit Breakdown By Segment By Region Property 25% Sales 37% Recurrent Mainland 75% 63% Property Rental 63% & 75% Hotel Operations Recurrent Non-recurrent Mainland HK HK$ million Gross
Slide 12: Land Banking Update – Investment Properties Pipeline
LAND BANKING UPDATE – INVESTMENT PROPERTIES (IP) PIPELINE Strong IP Pipeline to Grow Recurrent Income Base 10.4 M s.f. GFA of Additional Major Mixed-Use Projects to Launch by 2028 onwards Mainland IP Completion Pipeline Million s.f. 19.8 20.3 0.6 Shanghai Huangpu 17.4 1.0 1.0 Qianhai 1.8 1.8 Wuhan 1
Slide 13: Land Banking Update – Development Properties Pipeline
LAND BANKING UPDATE – DEVELOPMENT PROPERTIES (DP) PIPELINE Robust DP Pipeline in the Mainland and Hong Kong Total Attributable GFA of 14.2M s.f. of Major DP due for Completion in the Next 5 Years and Beyond Development Properties Completion Pipeline Attributable Attributable Equity Equity Mainland P
Slide 14: Non-Core Assets: Disposal of Hong Kong Warehouses
NON-CORE ASSETS Disposal of Hong Kong Warehouses One-off Gain of HK$877 million for Total Attributable GFA of 0.97M s.f. GFA Chai Wan Kerry Warehouse Shatin Kerry Warehouse Total consideration: HK$2.29 billion Total consideration: HK$2.33 billion • In June 2022, the Group sold two wholly-owned wareh
Slide 15: Financial Position
FINANCIAL POSITION Strong and Sustainable Financial Position • Total debt increased to HK$57.6B mainly on the strategic acquisition of the Shanghai Huangpu project, which utilized part of our total capital resources, leading to a 30% decline to HK$36.7B. The Group continues to replenish banking faci
Slide 16: Sustainability at a Glance: ESG Ratings & Performance
SUSTAINABILITY AT A GLANCE ESG RATINGS & PERFORMANCE 5-star rating AA+ BBB Constituent Rating C Low Risk Ranked Top 10 Ranked 12th • We would like to highlight a few key ESG ratings we have achieved: • GRESB (Global Real Estate Sustainability Benchmark). 5-star rating and ranked 1st in Public Disclo
Slide 17: 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,