希慎兴业(00014) - 2024 H2 - 业绩电话会

Financial Data and Key Metrics Changes - The group's turnover improved year on year by 6.2% in 2024, driven by the ramp-up of Lee Gardens Shanghai [17] - Turnover of the Hong Kong retail portfolio increased by 9.5% to HKD 1,680 million, with an occupancy rate of 92% [18] - The Hong Kong office portfolio turnover declined by 1.5% to HKD 440 million, maintaining a stable occupancy rate of 90% [18] - The residential leasing portfolio saw a turnover increase of 6.3% and occupancy rose to 73% [18] - Shareholders' fund and NAV per share declined by 1.7% and 1.8% respectively, mainly due to fair value measurement of investment property [25] - Full year dividend for 2024 remained stable at HKD 1.08 [26] Business Line Data and Key Metrics Changes - The retail segment in Hong Kong experienced a positive rental reversion rate, attributed to asset enhancement work and strong tenant sales potential [19][20] - Lee Gardens Shanghai achieved a strong ramp-up, securing commitments for 70% of office space by quality tenants [15] - The flex office business maintained high occupancy in the Greater Bay Area [15] - The first phase of transformation at Hyacin Place welcomed over 30 international and local brands [21] Market Data and Key Metrics Changes - Daily traffic to Lee Gardens exceeded 100,000 visitors, indicating strong market engagement [9] - The retail sales performance in January showed mid single-digit percentage growth year on year, reflecting improved market sentiment [37][62] - Footfall also increased by mid single-digit percentage year on year [38] Company Strategy and Development Direction - The company is focused on rejuvenating the Lee Gardens precinct, enhancing luxury offerings, and diversifying tenant mix to adapt to changing consumer preferences [7][8][10] - A strategic partnership with the Hong Kong Academy of Performing Arts aims to promote diverse art and cultural experiences [14] - The company plans to complete the integrated pedestrian walkway system by 2026, enhancing connectivity in the Lee Gardens area [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Hong Kong's economic future and the company's strategic direction, emphasizing the importance of innovation in retail [4][6] - The company is cautiously optimistic about future tenant sales growth, despite ongoing market uncertainties [41] - Management highlighted the need for a diversified tenant base to remain resilient in the current market [24] Other Important Information - The company secured an HKD 8 billion syndicated loan from 20 leading banks, providing a healthy buffer for refinancing activities [28] - Green and sustainable finance accounted for 40% of the current debt profile, reflecting the company's commitment to sustainability initiatives [28] Q&A Session Summary Question: Can you comment on tenant sales performance in the second half of last year and the Chinese New Year this year? - Management noted that Hong Kong retail sales were down 7% last year, but the company performed slightly better, with significant improvement in the second half of 2024 [35][36] Question: What is the magnitude of positive retail rental reversion last year? - The average rental reversion was around a high single-digit percentage, with a positive trend throughout 2024 [39] Question: How much of the 35% retail leases expiring have been locked in? - Management did not provide specific figures but indicated ongoing negotiations and expectations for positive reversion [43] Question: What are the company's thoughts on DPS and gearing levels moving forward? - Management expressed a commitment to maintaining stable dividends while managing CapEx and gearing levels cautiously [42][46] Question: Can you elaborate on the types of tenants being introduced? - The company is diversifying its tenant mix to include lifestyle brands, fine dining, and service trades, focusing on younger demographics [50][54] Question: What is the targeted profile of office tenants for Lee Garden 8? - The company aims to attract multinational companies and those seeking high-standard sustainable buildings, with a focus on co-working and service trades [65][66]