SF Real Estate Investment Trust · HKEX:2191
SF Real Estate Investment Trust — FY2023 Earnings Presentation
27 slides from SF Real Estate Investment Trust's earnings presentation, Mar 14, 2024
Slide 1: Investor Presentation Annual Results 2023
Investor Presentation Annual Results 2023
Slide 2: Contents
Contents Results Highlights Portfolio Performance Sustainability Achievements Outlook and Strategy
Slide 3: Results Highlights
Results Highlights 2
Slide 4: Revenue NPI DPU
Revenue NPI DPU Persistent growth since IPO 31 Delivered DPU Growth Yearly since IPO 29 27 25 28.66 DPU 27.74 23 HK cents 21 17.24 19 17 15 2021 2022 2023 Dynamic Partnership Operational Proactive Industry with Excellence Risk Management 3
Slide 5: Growth in Revenue, NPI and Distribution
Growth in Revenue, NPI and Distribution Revenue Net Property Income Distribution DPU HK$ 444.9M HK$357.7M HK$230.0M HK 28.66 cents 5.6% 4.1% 3.7% 3.3% 2022 2023 2022 2023 2022 2023 2022 2023 444.9 357.7 230.0 28.66 421.5 343.6 221.9 27.74 0 0 0 0 0 0 HK$M HK$M HK$M HK cents Note: All figures as at 3
Slide 6: Over 70% of Revenue and NPI Generated from Hong Kong
Over 70% of Revenue and NPI Generated from Hong Kong Revenue Net Property Income 76% 73% 77% 74% Tsing Yi Property Foshan Property 11% Changsha Property 11% 12% 13% 7% 11% Wuhu Property 6% 11% 5% 5% 4% 4% 2022 2023 2022 2023 Note: Revenue is presented on a cash basis. Depreciation in property operat
Slide 7: Operations Highlights
Operations Highlights Dynamic Partnership Operational with Industry Excellence Growing Sustainable Efficient Demand Income Operation 2023 express parcel delivery 80% of GLA leased by High occupancy rate at 98% volume in PRC +19.4%2 YoY Full year contribution from Achieved 11% rental reversion 2023 o
Slide 8: Debt Capital Management
Debt Capital Management Stable Portfolio with Managed Financing Costs Total HK Property PRC Property Portfolio Value HK$ 7,388M HK5,987M HK$1,401M 81% 19% Total HK$ Loan RMB Loan Borrowings HK$2,159M1 HK$ 2,565M HK$406M 84% 16% Fixed rate debt 40% 42% 58% 31% 69% Fixed Floating Fixed Floating Overal
Slide 9: Proactive Risk Management
Proactive Risk Management Challenges Our Strategies • Feb 2022 - Fixed 42% HKD loan for 4 years Interest Rate • Jul 2023 - Fixed 58% HKD loan till end 2023 HIBOR to 5.27%1 • Jan 2024 - Fixed 58% HKD loan till Jul 2024 Our Strategy • Short term hedged RMB in 2023 Exchange Rate RMB/HKD 1.45% in 20232
Slide 10: Portfolio Performance
Portfolio Performance 9
Slide 11: Property Portfolio – Prime Location
Property Portfolio – Prime Location Total Value HK$ 7,388M Total GLA 427,893 sq.m. Wuhu Fengtai Industrial Park Changsha Fengtai Industrial Park (Changsha Property) (Wuhu Property) (Acquired in June 2022) Overall Occupancy Rate 98.0% 95.4% 90.0% 98.9% 75.4% Foshan Guicheng Asia Logistics Hub – SF Ce
Slide 12: Stable Portfolio Value
Stable Portfolio Value Capitalisation Rate Valuation (M) Dec 23 Dec 23 June 23 Tsing Yi Property 4.25% HK$ 5,987 HK$ 5,990 0.05% Changsha Property 5.25% RMB 550 RMB 560 1.79% Foshan Property 5.25% RMB 498 RMB 498 Wuhu Property 5.50% RMB 226 RMB 226 Note: 1.No Change in cap rate between June 2023 and
Slide 13: Prime Property Portfolio – Asia Logistics Hub – SF Centre
Prime Property Portfolio Asia Logistics Hub – SF Centre A 15-storey ramp-up modern logistics property comprising warehouses with automatic sorting and supply chain support facilities and ancillary offices Tenants Profile 5 F&B 12% Healthcare 10% Logistics 78% 2 2,3 4 4 4 No Change Notes: 1.All fig
Slide 14: Prime Property Portfolio – Changsha Fengtai Industrial Park
Prime Property Portfolio Changsha Fengtai Industrial Park Three-storey high-standard warehouse, two single-storey warehouses, a two-storey ramp-up distribution centre and ancillary offices Tenants Profile 5 F&B Technology & 11% Others 13% Logistics 76% 2 2,3 4 -0.2p.p. Notes: 1.All figures as at 3
Slide 15: Prime Property Portfolio – Foshan Guicheng Fengtai Industrial Park
Prime Property Portfolio Foshan Guicheng Fengtai Industrial Park A three-storey ramp-up and “built-to-suit” distribution centre Distribution Centre 2 2,3 4 4 4 No Change Notes: 1.All figures as at 31 December 2023, unless stated otherwise. 2.Presented on a cash basis 3.Depreciation is excluded for
Slide 16: Prime Property Portfolio – Wuhu Fengtai Industrial Park
Prime Property Portfolio Wuhu Fengtai Industrial Park Two single-storey high-standard warehouses, a two-storey distribution centre, and ancillary offices Tenants Profile 5 F&B, hygiene Others products 3% 2% Industrial 1% Logistics 94% 2 2,3 4 4 4 1.0p.p. Notes: 1.All figures as at 31 December 2023
Slide 17: Sustainability Achievements
Sustainability Achievements 16
Slide 18: Key Sustainability Achievements
Key Sustainability Achievements Environmental Social & Governance GRESB Sustainable Corporate (Social Green star Rating Responsibility) Outstanding Award Standard Chartered Corporate Achievement Awarded 2nd time in a row Green Building 3 in total (Tsing Yi, Changsha, Foshan) Green Leadership ESG Awa
Slide 19: Key Sustainability Achievements
Key Sustainability Achievements Key Events Highlights Cooperated with NGOs Volunteering work Team building Employees trainings 18
Slide 20: Outlook and Strategy
Outlook and Strategy 19
Slide 21: Logistics Property Market Update - Hong Kong
Logistics Property Market Update - Hong Kong 15 0.1% 5.3% - Stable growth in retail sales and e-commerce Modern Logistics Rental Growth shall support solid logistics demand Warehouses Vacancy Rate2 q-o-q2 - Rental growth (+0.1% q-o-q2) remained Modern Logistics Property Supply, Demand and Vacancy Ra
Slide 22: Logistics Property Market Update - PRC
Logistics Property Market Update - PRC 2024 Q4 Average Occupancy1,2 - With the recent wave of new completions, the oversupply of logistics warehouses in certain regions created a downward pressure on overall 66.6% rental and occupancy (-3.8 pp q-o-q) Beijing-Tianjin-Hebei (BTH) - The lack of sup
Slide 23: Market Outlook
Market Outlook Hong Kong - Hong Kong's pivotal role as a regional logistics hub will boost demand - Action Plan on Modern Logistics Development by the Hong Kong government reflects increased focus on enhancing the quality development of the logistics sector PRC - Dynamic e-commerce market driving de
Slide 24: SF REIT Strategy
SF REIT Strategy 01 Proactively manage assets for stable occupancy and income 02 Mitigate financial market risks through prudent capital management 03 Leverage SF’s support as anchor tenants for yield accretive acquisitions 23
Slide 25: Distribution Details
Distribution Details Closure of Distribution Final Distribution Ex-distribution Register of Distribution Period Per Unit Date Unitholders for Date Distribution 1 July 2023 HK14.02 cents 27 March 2024 2 April 2024 23 April 2024 to to 31 December 2023 3 April 2024 24
Slide 26: Investor Presentation Annual Results 2023
Investor Presentation Annual Results 2023
Slide 27: 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
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