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

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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.