CHINA'S LEADING
OFFICE LANDLORD
2024 INTERIM RESULTS PRESENTATION
September 2024
China's Leading Office Landlord
- High Quality Assets - Holding 1.22 million sqmof prime location commercial properties in Beijing and Shanghai
- Robust Operating Cash Flow - All projects under mature operating with diverse tenant mix providing a stable rental income
- Outstanding Value Protection - Flexible leasing strategies adapt to market changes, maintaining a robustly stable occupancy rate and evidencing the anti-risk resilience of our assets
- Stable Financial Position - No pressure on ongoing projects, low gearing ratio, healthy debt maturity profile and stable financing cost
- Fulfilling green commitment - Committed to building a sustainable enterprise, it has released the first climate action report, advocated green leasing, and has been repeatedly recognized by authoritative institutions
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Interim Results Summary of 2024
- As affected by the increasingly challenging commercial property leasing markets under soft economic sentiment, revenue income was approximately RMB799 million for the Period.
- Gross profit margin fromproperty leasing remained stable at approximately 82% for the Period.
- The Group's average occupancy rate stabilized at approximately 76% as at 30 June 2024.
- Underlying profit attributable to owners of the Company from operating activities (excluding valuation changes on investment properties and one-off tax fees) was approximately RMB104 million for the Period. Loss attributable to owners of the Company was approximately RMB108 million for the Period.
- Net gearing ratio of the Group was approximately 41% and average funding cost was approximately 4.5% as at 30 June 2024.
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Occupancy stabilized，Outstanding Value Protection
Occupancy stabilized and recovered to 76% | Projects completed and stabilized ,offers greater |
value protection with low uncertainty | |
Investment properties demonstrate stable value and | |
resilient anti-risk ability in the downward trend of the | |
market. |
Average Occupancy[1]
79% | 78% | 76% | ||||||
2023H1 | 2023 | 2024H1 |
Value of Investment Properties[1]
Unit: RMB bn
63.2 | 63.2 | 63.1 |
2023H1 | 2023 | 2024H1 |
Note [1]: Occupancy rate for office and retail areas at the end of relevant year | Note [1]:The fair value changes of sold properties have been excluded from the comparative |
data of previous years |
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Diverse tenant mix
- Revenue from each single project accounts for less than 20% of total rental income
- Tenants are from diverse industries，Top sectors included TMT, Professional Services and Catering
Rental income by projects[1]
3% 4% | Wangjing SOHO | ||
12% | Gubei SOHO | ||
11% | |||
SOHO Fuxing Plaza | |||
6% | 15% | Bund SOHO | |
SOHO Tianshan Plaza | |||
12% | 14% | GHL SOHO2 | |
Qianmen Avenue Project | |||
11% | 12% | Leeza SOHO | |
Galaxy/Chaoyangmen SOHO | |||
Other
Note [1] : asof 30 June 2024
Leased areas by tenant industries [1]
1% | TMT | |
5% 5% | ||
Professional Service | ||
5% | Catering | |
32% | Financial | |
6% | ||
Retail | ||
6% | Trade | |
Media | ||
7% | 10% | Biomedicine |
7% | Comprehensive service | |
8% | Hotel | |
8% | ||
Medical beauty | ||
Manufacturing
Note [1] : asof 30 June 2024
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Industry leaders becoming SOHO China's tenants
Diverse tenant mix includes multiple industry leaders
TMT
Financial &
Professional
services
Food
Retail
Service &
Manufacturing
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Stable gearing ratio
- Net gearing ratio and average funding cost remained low and stable at 41% and 4.5% respectively
RMB mn | 30 June 2024 | 31 December 2023 |
Cash and bank deposits | 795 | 830 |
Interest-bearing debts | 15,691 | 15,885 |
Equity attributable to | 36,145 | 36,267 |
Shareholders | ||
Net gearing ratio | 41% | 41% |
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Consolidating the Green Background：Environmental Stewardship Goal and Achievements
Green Targets | 60k+ | 300k+ |
Green Achievements | Energy Consumption of 2024 |
Jan.2021 to Jun.2024
24 Projects
1,009.66 Million kWh
Cumulative saving(cf. with GB) | Energy Saving rate | EQUIV to carbon reduction of |
382.83Million kWh | 27.5% | 317k tonnes |
Jan. to Jun.2024
24 Projects
148.75 Million kWh
Cumulative saving(cf. with GB) Energy Saving rate | EQUIV to carbon reduction of | ||
37.14Million kWh | % | 31k | tonnes |
20 |
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Leading Green Transition: the Science Based Targets Approved
On June 18, 2024, the Science Based Targets initiative (SBTi) approved the Science Based Targets submitted by SOHO, and the approval was officially announced by SBTi on July 18.
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Leading Green Transition: the first TCFD Report Released
In April 2024, SOHO China took a crucial step towards a green and low-carbon transition in the commercial real estate sector by releasing its first 2023 SOHO China Climate Action Report.
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