SWIREPROPERTIES(HK:01972)2020-04-06 08:31Financial Performance - Total revenue for 2019 was HKD 14,222 million, a decrease of 3% from HKD 14,719 million in 2018[19]. - Basic earnings attributable to shareholders increased by 138% to HKD 24,130 million from HKD 10,148 million in 2018[19]. - Reported profit decreased by 53% to HKD 13,423 million from HKD 28,666 million in 2018[19]. - Cash generated from operations fell by 53% to HKD 5,499 million from HKD 11,619 million in 2018[19]. - Net cash inflow before financing increased by 99% to HKD 20,217 million from HKD 10,144 million in 2018[19]. - Total equity, including non-controlling interests, rose by 3% to HKD 288,911 million from HKD 281,291 million in 2018[19]. - Net debt decreased by 49% to HKD 15,292 million from HKD 29,905 million in 2018[19]. - The net debt to equity ratio improved to 5.3%, down 5.3 percentage points from 10.6% in 2018[19]. - Basic earnings per share increased by 138% to HKD 4.12 from HKD 1.74 in 2018[19]. - The first interim dividend increased by 7% to HKD 0.29 from HKD 0.27 in 2018[19]. - The company's attributable profit from property investment reached HKD 10,061 million in 2019, up 15.2% from HKD 8,732 million in 2018[20]. - The fair value change of investment properties was HKD 3,450 million in 2019, significantly down from HKD 19,876 million in 2018[20]. - The total assets of the company amounted to HKD 304,203 million in 2019, a slight decrease from HKD 311,196 million in 2018[20]. - Earnings per share (EPS) for 2019 was HKD 2.29, a decline from HKD 4.90 in 2018[20]. - The dividend per share increased to HKD 0.88 in 2019, compared to HKD 0.84 in 2018[20]. - The return on equity for shareholders was 4.7% in 2019, down from 10.7% in 2018[20]. - The interest coverage ratio was 28.85 in 2019, a decrease from 33.29 in 2018, indicating a slight increase in financial leverage[20]. - The company's basic profit attributable to shareholders increased to HKD 134.23 billion in 2019 from HKD 128.66 billion in 2018, reflecting a growth of approximately 4.1%[32]. - The second interim dividend declared is HKD 0.59 per share for 2019, compared to HKD 0.57 per share in 2018, representing a 3.5% increase[32]. - The recurring basic profit (excluding gains from the sale of investment properties) for 2019 was HKD 76.33 billion, up from HKD 75.21 billion in 2018, marking a growth of 1.5%[33]. - The total rental income for 2019 reached HKD 12.71 billion, an increase from HKD 12.17 billion in 2018, reflecting a growth of approximately 4.4%[33]. Sustainability Initiatives - Achieved a sustainable development performance-linked loan of HKD 500 million, reflecting commitment to sustainability[9]. - Set long-term carbon reduction targets of 35% by 2025 and 52% by 2030, demonstrating leadership in sustainability[17]. - Ranked as the top real estate developer in Asia for green building leadership, highlighting industry recognition[15]. - Achieved inclusion in multiple sustainability indices, reinforcing the company's commitment to environmental, social, and governance (ESG) standards[13]. - The company has linked a HKD 5 billion revolving credit facility to sustainability performance since July 2019[35]. Market Expansion and Development - Completed the sale of 100% equity in two office buildings in Hong Kong, generating significant capital[9]. - Launched the "UrbanLab" real estate technology accelerator program in Shanghai, marking a strategic move into tech innovation[9]. - Established a joint venture in Jakarta for a residential project, expanding market presence in Indonesia[9]. - The company plans to maintain a strong asset-liability level and manage capital prudently, with a diversified debt portfolio including revolving and term bank loans[39]. - The company aims to continue developing high-end residential properties and is actively seeking suitable sites for development in both Hong Kong and mainland China[38]. - The company plans to selectively expand into other markets while concentrating on its core operations in Hong Kong and mainland China[38]. - The company is focused on enhancing its asset portfolio through continuous improvement, redevelopment, and acquisition of new assets[37]. - The company is focusing on market expansion with multiple new developments across various locations[178]. Retail and Property Performance - Operates over 1,800 retail stores across shopping malls, with an estimated 73,000 employees working in its office buildings[18]. - Celebrated the 30th anniversary of Pacific Place, a key commercial landmark in Hong Kong, showcasing long-term success[10]. - Expanded the East Point City retail complex, enhancing the company's portfolio in Hong Kong[9]. - The retail rental income from properties in Hong Kong and serviced apartments is expected to decline in 2020 due to the adverse impact of the COVID-19 pandemic[35]. - The rental income from the office properties in Guangzhou and Beijing is anticipated to be under pressure due to increased supply and weak demand[35]. - The retail sales at Brickell City Centre in Miami are steadily increasing, although competition in the retail leasing market is expected to intensify[35]. - The rental income from Hong Kong retail properties totaled HKD 2.537 billion in 2019, a decrease of 12% compared to 2018 due to rental support provided to affected tenants[81]. - The total valuation of Hong Kong retail properties was HKD 59.255 billion as of December 31, 2019, with the group's attributable interest valued at HKD 48.414 billion[79]. - The retail sales at Taikoo Place shopping mall decreased by 17% in 2019, reflecting broader market challenges[81]. - The company anticipates a decline in retail property rental income in 2020 due to the impact of the COVID-19 pandemic[86]. Hotel Operations - The company’s hotel business recorded a loss in 2019, mainly due to a downturn in performance in the second half of the year in Hong Kong[33]. - The average room revenue and occupancy rates for hotels managed by the company were negatively impacted by social events, leading to a 16% decline in EBITDA to HKD 168 million[128]. - The hotel market outlook indicates that the COVID-19 pandemic has significantly impacted occupancy rates and revenues in Hong Kong and mainland China, with cost-saving measures being implemented[138]. - The hotel "香港銀樾美憬閣精選酒店" is expected to open in the first half of 2020, which is part of a development project in Hong Kong[138]. - The group anticipates steady growth in its hotel business in Miami despite the challenges posed by the pandemic[138]. Capital Expenditure and Commitments - In 2019, capital expenditure for investment properties and hotels in Hong Kong was HKD 2.46 billion, a decrease from HKD 5.47 billion in 2018[139]. - As of December 31, 2019, capital commitments in Hong Kong amounted to HKD 14.735 billion, down from HKD 15.213 billion in 2018[140]. - Capital expenditure for investment properties and hotels in mainland China was HKD 643 million in 2019, significantly lower than HKD 2.463 billion in 2018[139]. - Capital commitments in mainland China as of December 31, 2019, were HKD 1.865 billion, compared to HKD 2.081 billion in 2018[140]. - The capital expenditure for investment properties and hotels in the US and other regions was HKD 168 million in 2019, unchanged from 2018[139]. - Total capital expenditure across all regions in 2019 was HKD 3.271 billion, with a forecast of HKD 2.325 billion for 2022[140].