SF Real Estate Investment Trust · HKEX:2191
SF Real Estate Investment Trust — H1 2024 Earnings Presentation
32 slides from SF Real Estate Investment Trust's earnings presentation, Aug 15, 2024
Slide 1: Investor Presentation Interim Results 2024
Investor Presentation Interim Results 2024 Sustained Resilient Growth in Volatile Environment, Gearing Up for Opportunities When Market Turns 0
Slide 2: Contents
Contents 02 Key Drivers 01 03 Financial Portfolio Highlights Updates 05 Market Updates 04 06 Outlook and ESG Strategy
Slide 3: Contents
Contents 02 Key Drivers 01 03 Financial Portfolio Highlights Updates 05 Market Updates 04 06 Outlook and ESG Strategy
Slide 4: Revenue NPI DPU
1 1 Revenue NPI DPU Persistent growth since IPO Dynamic Industry Partnership DPU Persistent DPU Growth Since IPO (HK cents) with 30 Interim Full-year 28.66 27.74 25 Operational 20 Excellence 17.24 15 14.64 14.71 13.67 10 Proactive 5 Risk Management 3.34 0 2021 2022 2023 2024 (Listed on 17 May) (1) A
Slide 5: Financial Highlights
Financial Highlights Growth in Revenue, NPI and Distribution Revenue1 Net Property Income1 Distribution DPU HK$ 222.3M HK$181.1M HK$119.3M HK 14.71 cents 1.6% 2.3% 1.9% 0.5% 181.1 14.64 14.71 222.3 177.0 117.1 119.3 218.9 HK$M HK$M HK$M HK cents (1) Adjusted to reflect the step-up rent mechanism in
Slide 6: Financial Highlights
Financial Highlights Resilient Hong Kong Market Supports Stable Income Foshan Foshan Changsha 11% Wuhu Changsha 12% Wuhu 11% 5% 10% 4% 1 1 Revenue NPI HK$ 222.3M HK$181.1M Hong Kong Hong Kong 73% 74% (1) Adjusted to reflect the step-up rent mechanism in leases and excluding depreciations, where appr
Slide 7: Contents
Contents 02 Key Drivers 01 03 Financial Portfolio Highlights Updates 05 Market Updates 04 06 Outlook and ESG Strategy
Slide 8: Operations Highlights
Operations Highlights Solid Demand Dynamic Stable growth in value of exports in Hong Kong Industry Continuous growth in express parcel delivery volume and online retail sales of physical goods in Mainland China Sustainable Income Partnership Occupied 80.2% of GLA with SF Contributed 75.1% of revenue
Slide 9: Debt Capital Management
Debt Capital Management Stable Portfolio with Healthy Debt Structure HK Property Mainland Property Portfolio Value HK$6,000M HK1,252M HK$ 7,252M 83% 17% HK$ Loan RMB Loan Borrowings HK$2,159M HK$374M HK$ 2,533M 85% 15% 100% Fixed 1 Fixed-rate Debt 58% 42% 29% Fixed till Fixed till Fixed till 89% end
Slide 10: Debt Capital Management
Debt Capital Management Financing Costs Effectively Eased Overall weighted average Weighted average HK$ Loan RMB Loan 1H24 4.39% 4.44% 4.15%1 -21 bps -16 bps -38 bps Gearing ratio 33.6% +0.3 p.p. 2H23 4.60% 4.60% 4.53%1 (1) Changsha loan’s margin reduced by 0.65% from LPR+0.2% to LPR-0.45%. Foshan &
Slide 11: Debt Capital Management
Debt Capital Management Proactive Early Refinancing to Reduce Cost 1 Debt Maturity HK$2.4 Billion Credit Facilities HK$ loan Facility A RMB loan Three-year HK$2,159 million sustainability-linked term loan (maturity in September 2027) Total Loan Amount Loan 2,159 Interest rate: HIBOR +0.7% (Reduced 4
Slide 12: Proactive Risk Management
Proactive Risk Management Challenges Strategies 42% HKD loan: Fixed since Feb 2022 for 4 years till 2026 Interest Rate 58% HKD loan: 1-month HIBOR: 4.61% 1 Fixed with short-term IRS contracts of ~6 months on a rolling basis since July 2023 till this year end FX forward contracts to hedge RMB for 2H
Slide 13: Contents
Contents 02 Key Drivers 01 03 Financial Portfolio Highlights Updates 05 Market Updates 04 06 Outlook and ESG Strategy
Slide 14: Property Portfolio - Prime Location
Property Portfolio - Prime Location Total Value Total GLA Overall Occupancy HK$ 7,252M 427,655 sq.m. 98.0% Changsha Fengtai Industrial Park Wuhu Fengtai Industrial Park 98.9% 75.6% 95.5% 90.2% Foshan Guicheng Fengtai Wuhu, Anhui Asia Logistics Hub - SF Centre Industrial Park (Tsing Yi) Changsha, Hun
Slide 15: Property Portfolio - Valuation
Property Portfolio - Valuation Capitalisation Rate Valuation (Million) Property Jun 2024 Dec 2023 Jun 2024 Dec 2023 Hong Kong 4.25% 4.25% - HK$6,000.0 HK$5,987.0 0.2% Changsha 5.55% 5.25% 0.3% RMB 503.3 RMB 550.4 8.6% Foshan 5.45% 5.25% 0.2% RMB 457.9 RMB 498.1 8.1% Wuhu 5.70% 5.50% 0.2% RMB 204.6 R
Slide 16: Property Portfolio - Enhanced Performance
Property Portfolio - Enhanced Performance Hong Kong Property Changsha Property Revenue 1 NPI 1 Revenue 1 NPI 1 HKD 162M HKD 134M RMB 22M RMB 17M Foshan Property Wuhu Property Revenue 1 NPI 1 Revenue 1 NPI 1 RMB 24M RMB 19M RMB 10M RMB 7M (1) Adjusted to reflect the step-up rent mechanism in leases a
Slide 17: Contents
Contents 02 Key Drivers 01 03 Financial Portfolio Highlights Updates 05 Market Updates 04 06 Outlook and ESG Strategy
Slide 18: Sustainability Achievements
Sustainability Achievements Environmental GRESB BOCHK Environmental Leadership Awards Green Star Rating EcoPartner Green Building certificates 3 (Tsing Yi, Changsha, Foshan) Governance 10th Hong Kong Tsing Yi Property Investor Relations Awards LEED BD+C: Core & Shell Best ESG (Governance) Gold Certi
Slide 19: Sustainability Snapshots
Sustainability Snapshots Green Finance Youth Development Employee Training Community Care 18
Slide 20: Contents
Contents 02 Key Drivers 01 03 Financial Portfolio Highlights Updates 05 Market Updates 04 06 Outlook and ESG Strategy
Slide 21: Logistics Property Market Update - Hong Kong
Logistics Property Market Update - Hong Kong Warehouses completion and net absorption (2015 to 2027F) 17 -1.3% 8.1% 500000 Modern Logistics Warehouse Rents Warehouse Vacancy GFA of new completion and net absorption (sq. m.) Warehouses H-o-H 1 +1.5 p.p. (H-o-H 1) 400000 300000 New supply brought cert
Slide 22: Logistics Property Market Update - Mainland
Logistics Property Market Update - Mainland 2024 Q2 Average Occupancy 1 Growth in online retail of physical goods provided a degree of support for the overall rental and occupancy Beijing 76.6% Tianjin 65.0% New logistics supply down 43% y-o-y in 1H242, gradually narrowing the demand-supply gap Nanj
Slide 23: Contents
Contents 02 Key Drivers 01 03 Financial Portfolio Highlights Updates 05 Market Updates 04 06 Outlook and ESG Strategy
Slide 24: Market Outlook
Market Outlook Hong Kong Mainland China World • Consumers’ tendency towards • Market outlook demands a high • Global market still awaiting the likely online shopping is expected to degree of cautiousness as interest rate cut by the U.S. continue boosting demand for e- recoveries take time Federal Re
Slide 25: SF REIT Strategy
SF REIT Strategy Proactive Asset Prudent Capital Swift Response Sustainable Management Management to Market Turn Distribution Manage assets Adopt a cautious Monitor market and Prioritise achieving proactively for stable approach to mitigate act on expansion sustainable occupancy and income financial
Slide 26: Distribution Schedule
Distribution Schedule Ex- Distribution Distribution distribution Period Date Date Closure of Distribution Register of Per Unit Unitholders for Distribution 1 Jan 2024 to 28 Aug 2024 30 Sep 2024 30 Jun 2024 HK14.71 cents 30 Aug 2024 25
Slide 27: Contents
Contents 02 Key Drivers 01 03 Financial Portfolio Highlights Updates 05 Appendix Market Updates 04 06 Outlook and ESG Strategy
Slide 28: Prime Property Portfolio
Prime Property Portfolio Asia Logistics Hub - SF Centre, Hong Kong F&B Healthcare 12.0% 9.8% 3 No Change Tenant Profile 4 Logistics 78.2% • A 15-storey ramp-up modern logistics property comprising warehouses with automatic sorting and supply chain support facilities and ancillary offices (1) Adjuste
Slide 29: Prime Property Portfolio
Prime Property Portfolio Changsha Fengtai Industrial Park Others F&B 0.3% Technology 11.3% 11.8% 3 No Change Tenant Profile 4 Logistics 76.6% • Three-storey high-standard warehouse, two single- storey warehouses, a two-storey ramp-up distribution centre and ancillary offices (1) Adjusted to reflect
Slide 30: Prime Property Portfolio
Prime Property Portfolio Foshan Guicheng Fengtai Industrial Park Retail 0.1% 3 No Change Tenant Profile 4 Logistics 99.9% • A three-storey ramp-up and “built-to-suit” distribution centre (1) Adjusted to reflect the step-up rent mechanism in leases and excluding depreciations, where appropriate (2) A
Slide 31: Prime Property Portfolio
Prime Property Portfolio Wuhu Fengtai Industrial Park Other F&B 2.9% 1.0% Tenant Profile 4 Logistics 96.0% • Two single-storey high-standard warehouses, a two- storey distribution centre, and ancillary offices (1) Adjusted to reflect the step-up rent mechanism in leases and excluding depreciations,
Slide 32: Disclaimer
Disclaimer The distribution of this document in certain jurisdictions may be restricted by law, and the recipients into whose possession this document comes should inform themselves about, and observe, such restrictions. Neither this document nor any part or copy of it may be taken or transmitted in
SF Real Estate Investment Trust — H1 2024 Earnings Presentation on 6ix