China's Leading Office Landlord
• High Quality Asset - Holding 1.3 million sqm of prime location office buildings in Beijing and Shanghai
• Stable Cash Flow - Resilient office leasing business under the background of COVID-19 with stable rental income
• Outstanding Value Protection - The scarcity of asset in background of global monetary easing
• Strong Asset Management - Occupancy stabilized with total leased area of 245,000 sqm in 2020
• Sound Financial Position - Low gearing ratio and healthy debt maturity profile, reducing financial risk
Results Summary
• Revenue up 19% YoY
• Profit before income tax down 17% YoY
• Average occupancy across stabilized properties recovered to 82%
• Leeza SOHO introduced Huawei's China Headquarters as anchor tenant and its occupancy exceeded 60%
• Net gearing ratio and average funding cost remained low at 43% and 4.7% respectively
All projects completed with location scarcity under the background of global monetary easing
• The office buildings in prime locations of Beijing and Shanghai have displayed their scarcity.
Leasable Area by City
Beijing
Shanghai
Note [1] : excluding value of disposed properties and right-of-use assets
• Uncertainty remains low as all projects were completed and in operation in 2020. The value of IPs was increasing steadily along with the completion progress and has potentials of value protection and further appreciation.
Value of Investment Properties[1]
Unit: RMB bn
61.58
2016
63.37
2017
2018
2019
2020
Outstanding asset management - occupancy of stabilized projects firming up
Occupancy of stabilized projects[1] remains high
2016
96%
97%
96%
2017
2018
2019
Note [1] : A project is usually deemed stabilized 12-18 months after its opening
• Occupancy of SOHO's stabilized projects were close to full (>95%) for the years before 2018
• The office leasing market was impacted by the slowdown in GDP growth in 2019, as affected by economic transformation and international trade frictions
• COVID-19 put more pressure on the office leasing sector in 2020. However, the occupancy of SOHO's stabilized projects recovered to 82% and is expected to increase along with the economic recovery
2020
Outstanding asset management - Leeza SOHO introduced anchor tenant
• Huawei's China Headquarters set up base in Leeza SOHO in 2020 by leasing 59,000 sqm
• Remaining areas have attracted multiple prospective tenants
• This largest deal in Beijing's office leasing market in 2020 also contributed to the
development of Lize Business District
Leeza SOHO's Awards on Architecture
2019.12 Best Tall Building - Council on Tall Buildings and Urban Habitat
2010.12 Interior Space Award - Council on Tall Buildings and Urban Habitat
2020.08 Jury Winner and Popular Choice Winner in the office - high rise category - Architizer A+
2020.09 People's Choice in the Buildings over 1000 Square Meters category - AZ awards
2020.10 The Plan Awards in the office & business category - The Plan Awards
2020.10 Excellence in Design in the "Professional - Extra Large Project" category.- THE 2020 AIA UK Chapter
2021.01 Best Tall - The Council on Tall Buildings and Urban Habitat
2021.03 Excellence Winner for Renovation - Council on Tall Buildings and Urban Habitat
Diverse tenant mix
• Revenue from each single project accounts for less than 20% of total rental income
• Tenants are from diverse industries. Top sectors included TMT, Finance, and Professional Service
2020 Rental income by projects
Tenant mix by industry (as at Dec 31, 2021)
Wangjing SOHO
SOHO Fuxing Plaza
Guanghualu SOHO II
SOHO Tianshan Plaza
Gubei SOHO
Bund SOHO
Qianmen Avenue
Galaxy/Chaoyangmen SOHO
Leeza SOO
Others
TMT
Financial
Restaurant
Professional Service
Healthcare
Retail
Hotel
Manufacturing
Others
Industry leaders becoming SOHO China's tenants
Vacant areas were integrated together during COVID-19, which allowed us to introduce industry leaders and further diversify our tenant base
TMT
Financial
Restautrant and Retail
Others
Healthy debt structure and low financial risk
• Long-term asset matched with long-term debt, which accounted for 90% of total debt - low financial risk
• Low pressure from debt repayment in the short term as only 5% of the debt is maturing within one year
Debt Structure
Long-term Debt
Construction Loan
Others
Unit: RMB mn
150
100
50
0
Debt Maturity Profile
within 1 year
1-2 years
2-5 years
after 5 years
Net gearing ratio and average funding cost low at 43% and 4.7% respectively
RMB mn | 31 Dec 2021 |
Total Cash | 2,788 |
Interest-Bearing Debt | 18,470 |
Equity Attributable to Shareholders | 36,629 |
Net Gearing Ratio | 43% |
ESG Practitioner - Yang Zheng Kindergarten opened in Tianshui
The first group of students joined Yang Zheng Kindergarten in Oct 2020
ESG Practitioner - 7 Retained Properties Achieved LEED Gold Rating
• SOHO China's energy management platform achieved remarked progress in 2020 by saving 1,320 kw/h compared with last year
Appendix
Financial Results Summary - Income Statement
RMB million | 2020 | 2019 | YoY Change |
Revenue | 2,192 | 1,847 | 19% |
Gross Profit | 1,390 | 1,510 | -8% |
Operating Profit | 2,452 | 2,522 | -3% |
Profit Before Tax | 1,600 | 1,919 | -17% |
Net Profit | 543 | 1,320 | -59% |
Financial Results Summary - Balance Sheet
RMB million | 31 Dec 2020 | 31 Dec 2019 |
Investment Properties | 63,367 | 61,903 |
Total Cash [1] | 2,788 | 2,430 |
Total Debt [1] | 18,470 | 17,999 |
Total Asset [1] | 70,704 | 69,729 |
Equity Attributable to Shareholders | 36,629 | 36,071 |
Net Gearing Ratio | 43% | 43% |
Property Portfolio
Beijing Beijing Beijing Beijing Beijing Beijing Shanghai Shanghai Shanghai Shanghai Beijing/Shanghai
1 Qianmen Avenue
2 Galaxy/Chaoyangmen SOHO
3 Wangjing SOHO T1&T2
4 Wangjing SOHO T3
5 Guanghualu SOHO II
6 Leeza SOHO
7 SOHO Fuxing Plaza
8 Bund SOHO
9 SOHO Tianshan Plaza
10 Gubei SOHO
Others [1]
Beijing 29,666
12 Hyatt Hotel in SOHO Tianshan Plaza 16,038
13 Boao Canal Village
Total
Hainan 8,6691,262,737 915,196 599,818 315,378
Note [1] : Others include unsold units of projects previously developed by the Company
47,445
15,351
157,318
117,179
157,308
124,068
104,122
139,789
146,692
146,661
- 52,282
45,913
15,542 30,371
15,406
9,686 5,720
133,766
123,568 10,198
94,279
63,308 30,971
134,361
124,738 9,623
88,234
46,344 41,890
74,438
51,977 22,461
97,751
74,497 23,254
112,176
54,749 57,427
66,590
35,409 31,181
915,196
599,818 315,378
Qianmen Avenue | |
Location | Qianmen ,Tiananmen South, Beijing |
Transportation | Subway lines 1 & 2 |
All-in Cost | RMB 1.9 billion |
Total GFA | Retail 52,431 sq.m. |
Leasable GFA | Retail 52,282 sq.m. |
Design Firm | Fei Chang Jian Zhu |
Wangjing SOHO Tower 3
Location
Wangjing, BeijingTransportation Land Cost Development Cost Total GFA Leasable GFASubway lines 13 & 15; Airport Express
Office
Retail
RMB 1.4 billion RMB 2.0 billion 157,318 sq.m. 133,766 sq.m. 123,568 sq.m. 10,198 sq.m.
Completion Date Design Firm
Sep 2014 Zaha Hadid Architects
Guanghualu SOHO II | |
Location | Central Business District, Beijing |
Transportation | Subway lines 1 & 10 |
Land Cost | RMB 1.3 billion |
Development Cost | RMB 1.2 billion |
Total GFA | 117,179 sq.m. |
Leasable GFA | 94,279 sq.m. |
Office | 63,308 sq.m. |
Retail | 30,971 sq.m. |
Completion Date | Nov 2014 |
Design Firm | GMP |
Investment Properties Under Construction
Leeza SOHO
Location
Between Southwest 2nd & 3rd Ring Road, Beijing
Subway lines 11, 14 & 16; New Airport line; Lize Business
Transportation
District Financial Street connection line (in planning)
Land Cost
Est. Construction Cost Total GFA
Leasable GFA Completion Time Design Firm
RMB 2.1 billion RMB 1.8 billion 157,308 sq.m. 134,360 sq.m.
2019
Zaha Hadid Architects
SOHO Fuxing Plaza | |
Location | Near Xintiandi, Puxi, Shanghai |
Transportation | Subway lines 10 & 13 |
Land Cost | RMB 2.6 billion |
Development Cost | RMB 1.8 billion |
Total GFA | 124,068 sq.m. |
Leasable GFA | 88,234 sq.m. |
Office | 46,344 sq.m. |
Retail | 41,890 sq.m. |
Completion Date | Sep 2014 |
Design Firm | GMP |
Bund SOHO | |
Location | Bund, Shanghai |
Transportation | Bund's transportation hub |
Land Cost | RMB 2.3 billion |
Development Cost | RMB 1.5 billion |
Total GFA | 104,122 sq.m. |
Leasable GFA | 74,438 sq.m. |
Office | 51,977 sq.m. |
Retail | 22,461 sq.m. |
Completion Date | Aug 2015 |
Design Firm | GMP |
SOHO Tianshan Plaza
Location Transportation Land CostHongqiao Foreign Trade Center, Shanghai
Est. Construction Cost Total GFA
Leasable GFA Completion Time Design Firm
Subway line 2 RMB 1.9 billion RMB 1.9 billion 155,827 sq.m. 97,751 sq.m.
Dec 2016
KPF
Gubei SOHO
Location Transportation Land CostHongqiao Foreign Trade Center, Shanghai
Est. Construction Cost Total GFA
Leasable GFA Completion Time Design Firm
Subway line 10 RMB 3.3 billion RMB 1.4 billion 146,692 sq.m. 112,176 sq.m.
2019 KPF
THANKS
Attachments
- Original document
- Permalink
Disclaimer
SOHO China Ltd. published this content on 25 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2021 09:36:05 UTC.