希慎兴业(00014) - 2023 H2 - 业绩电话会

Financial Data and Key Metrics Changes - The company's revenue for 2023 is $3.2 billion, representing a 7% decrease from the previous year [7] - Retail occupancy stands at 97%, office occupancy at 89%, and residential occupancy at 60% [7] - The net gearing ratio is 27.2% with an effective interest rate of 4.2% [17] - The dividend per share for the year is $1.08 [16] Business Line Data and Key Metrics Changes - Retail turnover increased slightly despite 10% of retail space being closed for renovations [5] - The turnover rent grew by 45%, indicating a positive trend in retail performance [10] - The office sector remains under pressure, with occupancy stabilizing at 89% amidst a slow economic recovery [8] Market Data and Key Metrics Changes - The retail sector is experiencing a transformation, with a shift in tourist focus from shopping to experience-based tourism [9] - The demand for high-end retail and medical services has increased, now comprising over 12% of the portfolio [9] Company Strategy and Development Direction - The company is focusing on strategic rejuvenation and diversification of its tenant mix, particularly in high-end retail and service trades [5] - Investments in flexible workspaces are being made to complement the office portfolio [5] - The company is committed to sustainability, achieving a 38% reduction in carbon intensity and maintaining a significant portion of its buildings as green stratified [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the ongoing challenges in the external environment but remains optimistic about retail recovery and tenant demand [4][22] - The luxury retail segment is showing resilience, with increased inquiries from high-end brands for office space [23] - The company aims to reset its dividend policy to conserve cash for future growth opportunities [36][38] Other Important Information - The company has a minimal level of debt maturing in the next year, reducing refinancing pressure [17] - The Lee Garden renovations are expected to enhance rental income significantly, with anticipated increases in rental rates post-renovation [29] Q&A Session Summary Question: What is the retail sales recovery rate in the second half of the year compared to pre-COVID levels? - Management indicated that retail sales growth is positive but not yet back to 2018 levels, with expectations for continued improvement as renovations are completed [21][22] Question: What are the plans regarding a tenant moving out from the office side? - Management noted an increase in inquiries from high-end brands for office space, indicating a positive outlook for tenant demand [23] Question: What is the rationale behind the dividend cut and future dividend policy? - Management explained the need for a conservative approach to conserve cash for future growth opportunities while maintaining a stable and progressive dividend policy [34][36] Question: What is the occupancy cost and rental recovery for Lee Gardens 1 and 5? - The overall occupancy cost is around mid-teens, and management expects a mid-single-digit increase in revenue from the newly renovated areas [52][53] Question: Update on Shanghai's occupancy and future prospects? - Management reported a current occupancy of 30% in Shanghai, with ongoing discussions for an additional 30% to 40% of space, indicating potential for increased occupancy [60][61]