Rec ecor ord R d Reta etail Sale il Sales Dr s Drove R ove Rob - - PowerPoint PPT Presentation
Rec ecor ord R d Reta etail Sale il Sales Dr s Drove R ove Rob obust P ust Perf erformance ormance Wharf Real Estate Investment Company Limited 2018 Interim Results 7 Aug 2018 Ov Overview Ha Harbo bour r City Times s Squ quare
Wharf Real Estate Investment Company Limited 2018 Interim Results 7 Aug 2018
Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
HK HKIP IP & Ho Hotel el – 6 C 6 Core e As Asse sets
Record Revenue
(+9.8%)
Mall lls s – 73% 73% o
HKIP IP Rev even enue ue
Record Retail Sales
(+31.4%) Record Market Share
(Harbour City 7.5%)
Ha Harbour bour Ci City – 11% 11% R Rev evenu enue e Gr Growth th
(OP Margin 89%)
Oc Occu cupancy ancy Co Cost st^ ^ – Ra Rapid d Imp mprove
ment
HC
(1H17: 21.3%) TS
(1H17: 25.2%)
*999-yr Leasehold (Excl. Ocean Terminal & Pacific Club at Harbour City, Plaza Hollywood and The Murray, Hong Kong) ^Occupancy Cost = Retail Rent/Retail Sales
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999 999-yea ear r Land d Lea ease ses s Of Offer er a Di Differ erent entiati iation*
Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
, $255B Valuation*
* Excl. $16B of Hotels, which are Carried at Cost
Retail 73.2% Office 25.1% Serviced Apts 1.7%
HKIP Revenue Split #
HKIP Revenue $7.1B
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#Excl. Hotel
Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
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Unfavourable Currency Movements etc.
(Mainlander +13.4%)
120 139 133 156 194 220 253 250 246 220 218 248 128 134 142 169 211 226 242 244 230 217 228
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
HK Retail Sales (HKD billion) 1H18 $247.8B (+13.4%)
1H 2H
Currency Impact
Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
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20.6% 22.0% 17.7% 14.8% 22.0% 18.3% 16.2% 15.6% 4.8% 4.3% 6.2% 15.3%
12.8% 10.3% 0.6% 18.3% 24.9% 9.8% 11.0%
2.2% 13.4%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H18
HC Total Retail Revenue Growth vs HK Retail Sales Growth
HC Retail Revenue HK Retail Sales Growth
Market Downturn Market Downturn
2007 2007-201 2017 7 CAGR GR 14.0% 6.1%
Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
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Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
Exit from DP of HCDL#
($1.65/Share); IP Core Profit +14%
Profit for 1H18)
HK HKD Million ion
1H 1H18 18 1H 1H17 17 % % Ch Chg Group Revenue 8,154 9,546
Operating Profit 6,352 7,050
Core Profit** 5,022 4,646 +8% Profit Before IP Revaluation Surplus 5,022 4,428 +13% Net IP Revaluation Surplus 5,157 472 +993% Profit After IP Revaluation Surplus 10,179 4,900 +108% Earnings Per Share (HK$)
3.35 1.65 1.61 1.53 +108% +8% Dividend Per Share (HK$) $1.05 NA
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**Excl. IP Revaluation Surplus and Exceptional Items
# 72%-owned Subsidiary
*As of End-Jun18. Incl. Valuation of 3 Marco Polo Hotels & The Murray, Hong Kong; but All Hotels are Booked at Cost in Wharf REIC’s Balance Sheet
Harbour City (HC) Times Square (TS) Central Portfolio Plaza Hollywood (PH) Financial Management
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Times Square (TS) Central Portfolio Plaza Hollywood (PH) Financial Management
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Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
Ret etail il Sa Sale les
+36.1%
Ret etail il Rev even enue ue
+15%
Ret etail il Sa Sale les s psf sf/mth mth
Market ket Sh Share* e*
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HC is a 999-yr Leasehold Property (Excl. Ocean Terminal, Pacific Club) *HK Incl. Wet Market, Motor Vehicles & Parts, but Excl. F&B
Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
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(Historical High)
Peak
*HK Incl. Wet Market, Motor Vehicles & Parts, but Excl. F&B 27.3% 18.3% 15.8% 30.0% 33.8% 13.2% 10.0% 3.3%
9.1% 36.1% 12.8% 10.3% 0.6% 18.3% 24.9% 9.8% 11.0%
2.2% 13.4% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H18 Harbour City Hong Kong
Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
Revenue)
Mid-2019 – New Growth Impetus
2.8 3.0 3.1 3.3 3.8 1.0 1.1 1.2 1.2 1.3 0.2 0.2 0.2 0.2 0.1
1H14 1H15 1H16 1H17 1H18
HC Revenue Breakdown (HKD billion) 1H18 $5.2B (+11%)
Retail Office S.A.
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+30%
Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
Tip
Traffic
Debuts)
Tsukada Nojo HEXA Xihe Ya Yuan Beijing Duck Restaurant Paper Moon ANA Ten A Nu Retrouvez-vous FU-RONG
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Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
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– 4 Consecutive Outstanding Quarters – Total Revenue +16.8% – Total GOP +32.1% – Overall Occupancy 94.2%
Hong Kong Hotel Prince Hotel Gateway Hotel
Har arbou bour Ci City ty (H (HC) C)
Central Portfolio Plaza Hollywood (PH) Financial Management
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Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
Ret etail il Sa Sale les
+21.6%
Ret etail il Rev even enue ue
Stable
Ret etail il Sa Sale les s psf sf/mth mth
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TS is a 999-yr Leasehold Property *HK Incl. Wet Market, Motor Vehicles & Parts, but Excl. F&B
Market ket Sh Share* e*
Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
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0.9 1.0 1.1 1.1 1.1 0.3 0.3 0.3 0.3 0.3
1H14 1H15 1H16 1H17 1H18
TS Revenue Breakdown (HKD billion) $1.4B (Flat)
Retail Office
Har arbou bour Ci City ty (H (HC) C) Times Square (TS)
Plaza Hollywood (PH) Financial Management
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Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
Wh Whee eelock lock Hou
se
Cr Crawfor awford d Ho House use
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Wheelo eelock ck Ho House se Office ce
Spot Rent psf/mth
$108 $108
+20% Rental Reversion
+28% +28%
Crawfo wford d Ho House se Office ce
Spot Rent psf/mth
$69 $69
+12% Rental Reversion
+14% +14%
Wheelock House & Crawford House are 999-yr Leasehold Properties
Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
Central Initiative
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Key ey Aw Awards ds in 1H 1H18 18
Condé Nast Traveller’s ‘The Hot List 2018’, Best New Hotels around the world Nationa
l Ge Geogra raph phic ic Traveller’s “City Sli licker cker - Big Sle leep ep awa wards 2 ds 201 018”
Har arbou bour Ci City ty (H (HC) C) Times Square (TS) Central Portfolio
Financial Management
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Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
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Ret etail il Sa Sale les
+9.5%
Ret etail il Rev even enue ue
+1%
East CBD2
(Interchange for Shatin to Central Link in 2019*)
Draw Tourists & Spending
*Commissioning Date (Tai Wai to Hung Hom via Diamond Hill in 2019); Hung Hom to Admiralty to be Completed in 2021
Har arbou bour Ci City ty (H (HC) C) Times Square (TS) Central Portfolio Plaza Hollywood (PH)
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Ov Overview Ha Harbo bour r City Times s Squ quare Central ral Portfolio tfolio Pl Plaza za Ho Hollyw lywood
Financi cial al Management agement
$277B)
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7.6 2.2 12.0 0.0 14.1 7.1
Jul18-Jun19 Jul19-Jun20 Jul20-Jun21 Jul21-Jun22 Jul22-Jun23 Jul23 & After
Debt Maturity (HKD billion)
(As at 30 Jun 2018)
core option of GRI Standards, and in alignment with HKEX ESG Reporting Guide
(“UNSDGs”).
and over 50,000 students, will be expanded to cover 76 schools by September 2018
GRI Standards stand for Global Reporting Initiative Sustainability Reporting Standards
Recycled 6,200+ tonnes waste
Hang Seng Corporate Sustainability Index Series Member 2017-18
2,853 talent 57,826 training hours* 186+ events and activities supported Donations totalling HK$33 million
The Wharf REIC’s Sustainability Report 2017 is prepared in accordance with the core option of Global Reporting Initiative Sustainability Reporting Standards. *Reporting scope covers operations as identified in the report. http://www.wharfreic.com/en/sustainability_reports.php
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Harbour City Times Square Plaza Hollywood 1H18 (HKD million) Revenue % Chg Revenue % Chg Revenue % Chg Retail 3,755 +15% 1,062 Flat 290 +1% Office 1,281 +4% 368 +5%
706 +15%
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5,863 +11% 1,430 +1% 290 +1% Valuation* as of 30 Jun 2018 $182B $58B $10B Retail Sales Jan-Jun 2018 $18.6B (+36.1%) $4.6B (+21.6%) $1.3B (+9.5%) 1H18 Avg. Retail Passing Rent (HK$ psf per Month) $487 $299 $108
* Incl. Hotels at Valuation as of 30 Jun 2018
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The Above Refers to the 6 Key Properties in Hong Kong *Incl. Valuation of 3 Marco Polo Hotels & The Murray, Hong Kong; but All Hotels are Booked at Cost in Wharf REIC’s Balance Sheet
Central Portfolio: Incl. Crawford House, Wheelock House & The Murray
Revenue
1H18 Revenue $7.1B
Harbour City 72.5% Plaza Hollywood 4.1% Central Portfolio 3.3%
GFA
HKIP & Hotel GFA 11.7M s.f
Harbour City 72.0% Plaza Hollywood 4.8% Central Portfolio 6.3%
Valuation*
Valuation $271B
Harbour City 67.2% Plaza Hollywood 3.6% Central Portfolio 7.8% Times Square 20.1% Times Square 21.4% Times Square 16.9%
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3,681
3,185 2,349 2,200 2,170 1,615 1,595 1,595 1,550 1,475 1,457 1,440 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Harbour City Bal Harbour Times Square The Grove The Mall at Rockingham Park Forum Shop at Caesars Aventura Mall Phesant Lane Mall Woodbury Common Premium Outlets The Village at Corte Madera Century City Ala Moana Centre
2015 Retail Sales (USD psf)
(California) (L.A.) (Honolulu)
Source: CNBC
Average: USD1,828 psf
Thank You
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End of Presentation
Wharf Real Estate Investment Company Limited [HKEx Stock Code: 1997.HK] Disclaimer
All information and data are provided for information purposes only. All opinions included herein constitute our judgment as of the date hereof and are subject to change without notice. The Group, its subsidiaries and affiliates hereby disclaim (i) all express, implied, and statutory warranties of any kind to user and/or any third party including warranties as to accuracy, timeliness, completeness, or fitness for any particular purpose; and (ii) any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information and data contained herein.
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