Re nta l Inc ome Dra g g e d by Sha rp De c line in T urnove r Re - - PowerPoint PPT Presentation
Re nta l Inc ome Dra g g e d by Sha rp De c line in T urnove r Re - - PowerPoint PPT Presentation
Unpre c e de nte d Cha lle ng e s Impa c ting Busine ss Pe rforma nc e 1H 20 F ina nc ia l Hig hlig hts Po sitive re nta l re ve rsio n fo r o ffic e po rtfo lio T otal R ental Inc ome Net Pr oper ty Inc ome F o o tfa ll a nd re
2
Unpre c e de nte d Cha lle ng e s Impa c ting Busine ss Pe rforma nc e
Distr ibutable Inc ome HK$mm
804
↓ 7.5% Y/ Y
Distr ibution per Unit HK$
0.1229
↓ 7.7% Y/ Y
T
- tal R
ental Inc ome HK$mm
1,342
↓ 4.1% Y/ Y
Net Pr
- per
ty Inc ome HK$mm
1,194
↓ 5.4% Y/ Y
1H 20 F ina nc ia l Hig hlig hts
- Po sitive re nta l re ve rsio n fo r o ffic e po rtfo lio
- F
- o tfa ll a nd re ta il sa le s pe rfo rma nc e s a t
L a ng ha m Pla c e dro ppe d sig nific a ntly due to so c ia l dista nc ing me a sure s
- Re nta l re lie f g ra nte d to te na nts o n a
c a se -b y-c a se b a sis
- L
a unc he d o nline e Sto re pla tfo rm to se ll c o upo ns o f o ur te na nts to b o o st sa le s
3
Re nta l Inc ome Dra g g e d by Sha rp De c line in T urnove r Re nt
738 770 185 194 477 378
1H 2019 1H 2020
T hre e Ga rde n Ro a d L a ng ha m Pla c e Offic e L a ng ha m Pla c e Ma ll
1,400 1,342
Re ntal Inc ome by Pr
- pe r
ty (HK$mm) Re ntal Inc ome by Inc ome T ype (HK$mm)
+4.3% +4.8%
- 20.6%
1,258 1,290 90 9 51 43
1H 2019 1H 2020
Ba se Re nt T urno ve r Re nt Ca rpa rk a nd Othe rs
T
- tal: - 4.1%
+2.6%
- 90.2%
- 15.8%
T
- tal: - 4.1%
1,400 1,342
5
T hre e Ga rde n Ro a d Offic e
Positive Re nta l Re ve rsion Ac hie ve d with L
- ng e r L
e a se E xpirie s
107.8 109.5
De c - 2019 Jun- 2020
Passing Re nt as at 30 Jun 2020
E ffe c tive Re nt pe r sq . ft. (L e tta b le ) (HK $)
+1.6% 9.8%
4.7% 16.2% 16.3% 8.0% 3.9% 2.8% 9.5% 28.7%
Vac ant 2020 2021 2022 2023 2024 and afte r
Va c a nt L e a se s E xp iring Re nt Re vie w
L e ase E xpir y as at 30 Jun 2020
- WAUL
T
- f 3.4 ye a rs
Ba nking 33% Asse t Ma na g e me nt 29% Co rpo ra te 6% F le xib le Wo rkspa c e 6% Me d ia 6% L e g a l 3% Me d ic a l 2% Co nsulta nc y 2% Othe rs 3% Va c a nt 10%
6
Offic e T e nant Pr
- file as at
30 Jun 2020
T hre e Ga rde n Ro a d Offic e
Slig ht Drop in Oc c upa nc y on We a k Offic e De ma nd
93.0% 90.2%
De c - 2019 Jun- 2020
Oc c upanc y Rate as at 30 Jun 2020
T hr e e Gar de n Road Offic e Valuation Cap Rate
- HK$42.3bn (~HK
$26,772 pe r sq . ft.)
- 3.70%
8
L a ng ha m Pla c e Offic e
E xte nde d L e a se Profile with Slig ht Inc re a se in Re nta l L e ve l
46.5 47.1
De c - 2019 Jun- 2020
Passing Re nt as at 30 Jun 2020
E ffe c tive Re nt pe r sq . ft. (Gro ss) (HK $)
+1.3%
2.2% 12.6% 12.2% 17.7% 34.0% 18.9% 2.5%
Vac ant 2020 2021 2022 2023 2024 and afte r
Va c a nt L e a se s E xp iring Re nt Re vie w
L e ase E xpir y as at 30 Jun 2020
- WAUL
T
- f 2.4 ye a rs
Co rpo ra te & Sa le s Se rvic e s 30% He a lthc a re & Me d ic a l 27% Be a uty 23% F itne ss Ce ntre 10% F le xib le Wo rkspa c e 6% Othe rs 2% Va c a nt 2%
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Offic e T e nant Pr
- file as at
30 Jun 2020
L a ng ha m Pla c e Offic e
Hig h Oc c upa nc y Ma inta ine d with Upc oming He a dwind
97.7% 97.8%
De c - 2019 Jun- 2020
Oc c upanc y Rate as at 30 Jun 2020
L ife style -re la te d te na nts: 60%
L angham Plac e Offic e Valuation Cap Rate
- HK$9.6bn (~HK
$13,623 pe r sq . ft.)
- 4.10%
- F
- rme d stra te g ic pa rtne rship with o ur
ma jo r te na nt, Unio n Me dic a l He a lthc a re
- Pro vide d pro mo tio n suppo rt fo r life style
te na nts
11
L a ng ha m Pla c e Ma ll
Soc ia l Dista nc ing a nd Borde r Control Se ve re ly Impa c te d F
- otfa ll
a nd Sa le s Pe rforma nc e s
Unde r pe r for me d Hong Kong Re tail Sale s
- T
he impro ve d fo o tfa ll a nd sa le s pe rfo rma nc e s to wa rds e nd o f se c o nd q ua rte r wa s sub se q ue ntly impa c te d b y ne w wa ve o f COVI D-19 in July
L angham Plac e Mall F
- otfall
Re tail sale s y/ y by se gme nt Hong Kong Re tail L angham Plac e
Me d ic ine s & Co sme tic s
- 55%
- 72%
Clo thing & F
- o twe a r
- 51%
- 58%
F &B
- 29%
- 40%
Supe rma rke ts +11%
- 22%
(25%) (55%) (40%) (44%) (29%) (20%) (35%) (40%)
Jan F e b Mar Apr May Jun 1H Jul
12
L a ng ha m Pla c e Ma ll
Re nta l Inc ome Droppe d Sha rply with Minima l T urnove r Re nt
Br e akdown of Base Re nt and T ur nove r Re nt
(HK $mm)
80%
- Minima l turno ve r re nt re c e ive d in 1H 2020, a nd
e xpe c te d to sta y lo w in 2H 2020
- Ba se re nt will c o ntinue to de c line in 2H 2020
356 347 90 9
1H 2019 1H 2020
Ba se Re nt T urno ve r Re nt
447 356
2% 20%
- 20.4%
190.5 178.9
De c - 2019 Jun- 2020
- 6.1%
Passing Re nt as at 30 Jun 2020
Ba se Re nt pe r sq . ft. (L e tta b le ) (HK $)
- L
- we r pa ssing b a se re nt due to ne g a tive
re ve rsio n, le a se re struc turing a nd re nta l c o nc e ssio n g ra nte d
98%
13
L a ng ha m Pla c e Ma ll
Ma inta ine d F ull Oc c upa nc y by E nte ring into Short- te rm L e a se s
100% 100%
De c - 2019 Jun- 2020
7.2% 28.4% 30.0% 9.8% 24.6%
2H 2020 2021 2022 2023 2024
L e ase E xpir y as at 30 Jun 2020
11.8% 26.0% 29.2% 9.2% 23.8%
2020 2021 2022 2023 2024
- E
nte re d into sho rt-te rm le a se s in o rde r to ma inta in 100% o c c upa nc y fo r the ma ll
- Ma jo rity o f the re ma ining 7.2% le a se s due in 2H 2020 will b e re ne we d o n sho rt-te rm b a sis
- 6.0% o f le a se s we re re struc ture d to turno ve r re nt o nly, a c c o unting fo r 6.9% o f a re a
Oc c upanc y Rate as at 30 Jun 2020 L e ase E xpir y as at 31 De c 2019
14
L a ng ha m Pla c e Ma ll
Ong oing Ac tive T e na nt Ma na g e me nt
Continuous E ffor ts in Br inging Ne w T e nants F &B and Confe c tionar y He alth & Be auty
F a shio n & Ac c e sso rie s 38% F
- o d &
Be ve ra g e 22% He a lth & Be a uty 12% Othe rs 13% E nte rta inme nt 15%
Re tail T e nant Pr
- file as at 30 Jun 2020
L angham Plac e Mall Valuation Cap Rate
- HK$18.0bn (~HK
$30,539 pe r sq . ft.)
- 4.00%
15
L a ng ha m Pla c e Ma ll
Optimiza tion of T e na nt Mix for L
- w Zone
- Be a uty te na nts inc re a se d to 12% fro m 10% in June 2019
- Ne w b e a uty / skinc a re sto re s e xte nde d to b a se me nt flo o rs
16
L a ng ha m Pla c e Ma ll
Ne w T e na nts a nd Ne w Offe ring s by T e na nts Attra c te d F
- otfa ll
L 4 Isaac T
- ast & Soul F
- od T
r uc k
- L
- ng line s q ue ue ing o utside the ne w
K
- re a n re sta ura nt a t fo o d c o urt
L 12 L e go Stor e
- L
- ng q ue ue s o utside L
E GO Sto re a t the la unc h o f L E GO Gra nd Pia no Se t a nd Supe r Ma rio Se rie s
17
L a ng ha m Pla c e Ma ll
Ma rke ting E fforts to Comba t with Cha lle ng ing Se ntime nt
Sale s- dr ive n Pr
- motion Offe r
s to Attr ac t Shoppe r s F r e e Par king Offe r s
- E
njo y up to 5 ho urs fre e pa rking upo n de sig na te d spe nding
Cr
- ss- se lling Offe r
s
- Cro sso ve r-se lling o f
ma ll c o upo ns to c usto me rs a t o ffic e b e a uty te na nts upo n de sig na te d spe nding
- F
irst O2O e Sto re pla tfo rm la unc he d in July
- Se lling c a sh c o upo ns o f o ve r 50 me rc ha nts
- f L
a ng ha m Pla c e Ma ll a nd Offic e
Pop Up E
- stor
e for Coupon Se lling
18
Re sponse s to COVID- 19 – Susta ina bility
Ope r ation Soc ial Hygie nic and Disinfe c tion Me asur e s
- Auto ma tic disinfe c tio n fo r e sc a la to rs
- Ha nds-fre e fo o tste p tha t a llo ws pe o ple to
- pe n do o rs using fo o t inste a d o f ha nds
Digital Solution – Offic e Vir tual T
- ur
- Pio ne e ring 360 de g re e s with live c ha t func tio n
- Addre ss te na nts’ ne e ds a mid so c ia l-dista nc ing
Giving bac k to the Community
- Do na tio n o f ha nd sa nitise rs to kinde rg a rte n
- E
ntre pre ne ur summe r pro g ra mme to pro vide te rtia ry stude nts pra c tic a l le a rning e xpe rie nc e
F
- ste r
We ll- be ing among our E mploye e s
- Ha ndma de Alc o ho l Sa nitise r a nd
Ze nta ng le Wo rksho p
19
Ma inta ining Prude nt F ina nc ia l Position
De bt Matur ity Pr
- file as at 30 Jun 2020
(HK $mm)
3,685 5,814 200 643 2,998 200 1,225 275 2,325
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Ba nk L
- a n (Se c ure d)
Ba nk L
- a n (Unse c ure d )
MT N
(1)
- T
- ta l de b t o f HK
$17,365mm
- I
ssue d a USD300mm MT N 10-ye a r b o nd a t a c o upo n ra te o f 2.95%
- 1H 20 e ffe c tive inte re st ra te : 2.9%
- Curre nt fixe d-ra te po rtio n a t 77.0%
(De c -2019: 64.2%)
- L
e ng the ne d a ve ra g e de b t ma turity pro file to 3.8 ye a rs
- Ne t Asse t Va lue pe r Unit a t HK
$9.44
6.0 6.5
De c - 2019 Jun- 2020
18.0 22.7
De c - 2019 Jun- 2020
Ne t De bt / E BIT DA (x) Ge ar ing Ratio (% )
No te (1): I nc luding HK$850 millio n c o mmitte d re vo lve r with final maturity in June 2024
20
L
- ok at Global Investment
Oppor tunities Ver y Pr udently
- Suffic ie nt war
c he st to we athe r the upc o ming unc e r taintie s afte r the U SD300mm MT N issuanc e
- Co ntinue to mo nito r
mar ke t mo ve me nts and aim to impr
- ve
c r e dit pr
- file ho listic ally
- Offic e – U
nc e r tain o utlo o k fo r bo th Ce ntr al and Mo ngko k o ffic e s
- Re tail – Challe nging e nvir
- nme nt to
c o ntinue due to glo bal e c o no mic slo wdo wn and po litic al te nsio ns
- Pr
- lo nge d impac t fr
- m wo r
ldwide pande mic will lo we r DPU in 2H 2020
Guida nc e
Por tfolio Outlook L iabilities Management
- Cautio usly e xplo r
e ac c r e tive inve stme nts unde r an unc e r tain mac r
21
T his pre se nta tio n ma y c o nta in info rma tio n whic h is pro prie ta ry, c o nfide ntia l a nd/ o r le g a lly privile g e d a nd ha s b e e n pre pa re d b y E a g le Asse t Ma na g e me nt (CP) L imite d, in its c a pa c ity a s the ma na g e r (the “RE I T Ma na g e r”) o f Cha mpio n Re a l E sta te I nve stme nt T rust (the “T rust”). T his pre se nta tio n is b e ing c o mmunic a te d fo r info rma tio n purp o se s o nly a nd its inte nde d re c ipie nts a re pro fe ssio na l inve sto rs in Ho ng K
- ng (a s de fine d
b y Pa rt 1 o f Sc he d ule 1 to the Se c uritie s a nd F uture s Ordina nc e (Ca p .571)) a nd pro fe ssio na l inve sto rs o utside o f Ho ng K
- ng to who m it is la wful to
c o mmunic a te the pre se nta tio n. Any o the r pe rso ns sho uld no t re ly o r a c t upo n this pre se nta tio n o r a ny o f its c o nte nts. T he info rma tio n c o nta ine d in this do c ume nt, inc luding a ny o b ta ine d fro m e xte rna l da ta so urc e s, ha s no t b e e n ve rifie d . T he info rma tio n a nd
- pinio ns in this pre se nta tio n a re sub je c t to c ha ng e witho ut no tic e a nd the RE
I T Ma na g e r is unde r no o b lig a tio n to upda te o r ke e p c urre nt the info rma tio n c o nta ine d in this pre se nta tio n. No re pre se nta tio n o r wa rra nty, e xpre ss o r implie d is ma de a s to , a nd no re lia nc e sho uld b e pla c e d o n, the fa irne ss, a c c ura c y, c o mple te ne ss o r c o rre c tne ss o f the info rma tio n o r o pinio ns c o nta ine d he re in. I t is no t the inte ntio n to pro vide , a nd yo u ma y no t re ly o n this do c ume nt a s pro viding , a c o mple te o r c o mpre he nsive a na lysis o f the T rust’ s fina nc ia l o r o pe ra tio na l po sitio n. Furthe rmo re , this pre se nta tio n sho uld no t b e c o nstrue d a s le g a l, ta x, inve stme nt, o r o the r a dvic e . No ne o f the RE I T Ma na g e r, the T rust, no r a ny o f the ir re spe c tive a ffilia te s, a dviso rs o r re pre se nta tive s sha ll b e he ld lia b le fo r a ny d a ma g e s, lo sse s o r e xpe nse s o f a ny kind, whe the r dire c t, indire c t, spe c ia l, c o nse q ue ntia l o r inc ide nta l, a rising o ut o f o r in c o nne c tio n with the pre se nta tio n. I n this re g a rd , a ll wa rra ntie s o r re pre se nta tio ns o f a ny kind, whe the r e xpre sse d o r implie d b y la w, e q uity o r sta tute s, a re e xc lude d to the e xte nt pe rmissib le und e r the a pplic a b le la w. All lia b ilitie s wha tso e ve r a rising fro m o r inc ide nta l to the do c ume nt a re he re b y e xpre ssly disc la ime d. Ce rta in info rma tio n a nd sta te me nts ma de in this pre se nta tio n c o nta in fo rwa rd-lo o king sta te me nts. All fo rwa rd-lo o king sta te me nts a re b a se d o n c urre nt e xpe c ta tio n o f future e ve nts a nd a re sub je c t to a numb e r o f fa c to rs tha t c o uld c a use a c tua l re sults to diffe r ma te ria lly fro m tho se de sc rib e d in the fo rwa rd-lo o king sta te me nts. Ca utio n sho uld b e ta ke n with re spe c t to suc h sta te me nts a nd yo u sho uld no t pla c e und ue re lia nc e
- n a ny suc h fo rwa rd-lo o king sta te me nts.
T his do c ume nt do e s no t c o nstitute a pro spe c tus, no tic e , c irc ula r, b ro c hure o r a dve rtise me nt o ffe ring to se ll o r inviting o ffe rs to a c q uire , p urc ha se
- r sub sc riptio n fo r a ny units (“Units”) o r o the r se c uritie s o f the T
- rust. T
he va lue o f Units a nd the inc o me fro m the m, if a ny, ma y fa ll a s we ll a s rise fro m time to time . Units a re no t o b lig a tio ns o f, d e po sits in, o r g ua ra nte e d b y the RE I T Ma na g e r, the T rust, no r a ny o f the ir re spe c tive a ffilia te s, a dviso rs o r re pre se nta tive s. An inve stme nt in Units o r o the r se c uritie s o f the T rust is sub je c t to inve stme nt risks, inc luding the po ssib le lo ss o f the princ ipa l a mo unt inve ste d. I t is inte nde d tha t ho lde rs o f Units ma y o nly d e a l in the ir Units thro ug h tra ding o n the Sto c k E xc ha ng e o f Ho ng K
- ng
a nd inve sto rs ha ve no rig ht to re q ue st the RE I TMa na g e r to re de e m the ir Units. L isting sta tus do e s no t g ua ra nte e a liq uid ma rke t fo r the Units. All c o p yrig ht, pa te nt, inte lle c tua l a nd o the r pro pe rty rig hts in info rma tio n c o nta ine d he re in is o wne d b y the RE I TMa na g e r o r o the r third pa rtie s. No rig hts o f a ny kind a re lic e nse d o r a ssig ne d o r sha ll o the rwise pa ss to pe rso ns a c c e ssing suc h info rma tio n. Witho ut the e xpre sse d writte n pe rmissio n o f the RE I T Ma na g e r unde r no c irc umsta nc e s sho uld info rma tio n c o nta ine d he re in o r a ny pa rt o f it b e q uo te d , re pro d uc e d , re distrib ute d o r tra nsmitte d in a ny fo rm, b y a ny me a ns, e le c tro nic o r o the rwise .
Importa nt Notic e
22
Appe ndix: Impa c ts from COVID- 19 Affe c te d Ope ra tions
Var ious Gove r nme nt Re gulations on Soc ial Distanc ing
- Re nta l c o nc e ssio n a nd o the r re lie f we re g ra nte d o n a c a se -b y-c a se b a sis
‒
I nc luding re nt re duc tio n, re nt de fe rra l, le a se re struc turing , pro mo tio n c o upo ns e tc .
- Stra te g ic pa rtne rship with Unio n Me dic a l He a lthc a re e nha nc ing syne rg y with te na nts
Re sta ura nt c a pa c ity / re stric tio ns Ba r c lo sure F itne ss c e ntre c lo sure Be a uty c e ntre c lo sure Ma r 28 Apr Cine ma / Ga me c e ntre c lo sure Ma y
July – Aug Apr – May Mar – May Mar – Jun Mar – May Apr – May
Wor king Shoulde r to Shoulde r with T e nants
July – Aug
S
- urc e :
Ho ng Ko ng Go ve rnme nt, RT HK
Jul
July – Aug July – Aug July – Aug
Jun Aug