Champion Real Estate Investment Trust · HKEX:2778
Champion Real Estate Investment Trust — H1 2018 Earnings Presentation
15 slides from Champion Real Estate Investment Trust's earnings presentation, Aug 16, 2018
Slide 1: 2018 Interim Results
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Slide 2: Strong Office and Retail Fundamentals Drove Solid Growth
Strong Office and Retail Fundamentals Drove Solid Growth Financial Highlights 1H 2017 1H 2018 Change Y/Y Total Rental Income (HK$mm) 1,183 1,303 ↑ 10.1% Net Property Income (HK$mm) 1,064 1,177 ↑ 10.6% Distributable Income (HK$mm) 758 812 ↑ 7.2% Distribution per Unit (HK$) 0.1171 0.1253 ↑ 7.0% Rental
Slide 3: Steady Growth in Asset Value
Steady Growth in Asset Value Property Valuation: HK$80.7 bn Net Asset Value (HK$) Three Garden Road Valuation: HK$48.5 bn 11.05 Value psf: HK$29,707 10.36 Cap Rate: 3.60% No change in cap rate 9.36 60% Jun-17 Dec-17 Jun-18 Gearing Ratio (%) Langham Place 40% Valuation: HK$32.2 bn 20.5 - Office: HK$9
Slide 4: Proactive Liability Management to Mitigate Interest Rate Risks
Proactive Liability Management to Mitigate Interest Rate Risks Latest Debt Maturity Profile (HK$mm) Bank Loan MTN • Effective interest rate as at 30 June 2018: 3.0% 5,800 • Fixed-rate portion: 54.2% of total debt 3,700 2,998 1,225 643 200 200 275 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 202
Slide 5: Three Garden Road
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Slide 6: Spot Rent of HK$130 Substantially Above Passing Rent
Spot Rent of HK$130 Substantially Above Passing Rent Passing Office Rents as at 30 June 2018 Office Lease Expiry as at 30 June 2018 Effective Rent per sq. ft. (Lettable) (HK$) Vacant Leases Expiring Rent Review 95.87 +3.6% 92.52 22.4% 35.7% 2.8% 20.2% 11.1% 1.2% 4.1% 2.5% Dec-17 Jun-18 Vacant 2018 2
Slide 7: Record High Occupancy for Three Garden Road
Record High Occupancy for Three Garden Road Office Occupancy Rate as at 30 June 2018 Office Tenant Profile as at 30 June 2018 98.8% Others Vacant 5% 1% Media 5% Banking Corporate 37% 94.2% 7% Consultancy 2% Medical 2% Legal 4% Business Centre / Co- working Space 5% Asset Management 32% Dec-17 Jun-18
Slide 8: Langham Place
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Slide 9: Steady Office Performance with Latest Achieved Rents Above $50
Steady Office Performance with Latest Achieved Rents Above $50 • Passing rents improved to HK$41.24 per sq. ft. (gross floor area) Office Tenant Profile as at 30 June 2018 Office Lease Expiry as at 30 June 2018 OthersVacant Medical 3% 2% Vacant Leases Expiring Rent Review Services 5% 1.3% Profession
Slide 10: Outperforming Retail Market with Remarkable Performance
Outperforming Retail Market with Remarkable Performance • All-time high semi-annual rental income of HK$435mm recorded as turnover rent doubled • Rent to sales improved to ~19% 1H18 Retail Sales Growth Outperforming Market Rental Income - HK$mm Base rent Turnover rent 435 +13.0% 385 94 22% 41 11% 23
Slide 11: Fully-occupied Mall with High Footfalls and Ongoing Tenant Rebranding
Fully-occupied Mall with High Footfalls and Ongoing Tenant Rebranding Retail Lease Expiry as at 30 June 2018 Retail Tenant Profile as at 30 June 2018 Leases Expiring Rent Review Health & Beauty 9% Others 14% Fashion & Accessories 40% Entertainment 15% 35.0% Food & Beverage 22% 20.4% 21.0% 21.5% 2.1%
Slide 12: Delivering Exotic Retail Experience with Cutting-edge Technology
Delivering Exotic Retail Experience with Cutting-edge Technology Experiential Technology Retailing Creating unforgettable shopping experiences with the aid of technology Gudetama Chatbot Adidas World Cup #CREATEYOURPITCH 11
Slide 13: Makeover of Food Court
Makeover of Food Court Before After 12
Slide 14: Guidance
Guidance 1 Properties Outlook: Office – favourable supply-demand dynamics continue to support office rent and occupancy levels Retail – RMB depreciation may dampen growth trajectory 2 Interest Rates & Financing: Continue to monitor market movements and grasp opportunities to increase fixed-rat
Slide 15: Important Notice
Important Notice This presentation may contain information which is proprietary, confidential and/or legally privileged and has been prepared by Eagle Asset Management (CP) Limited, in its capacity as the manager (the “REIT Manager”) of Champion Real Estate Investment Trust (the “Trust”). This prese
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