8/3/2018-10

Jiujiao Times Square lost 1% of its rental income and lost to Sogo. Core profit of 9.5 billion for the whole year

Since the retail market in Hong Kong began to bottom out last year, two owners in the core business district, namely Jiucang Real Estate (01997) and Lifelover International (01212), released last year’s results table on the same day yesterday. Their malls and department stores performed very differently. Habitat’s Harbour City in Tsim Sha Tsui recorded a strong rebound, with sales accelerated in the second half of the year, bringing the year’s shopping mall revenue up 7%; however, Times Square in Causeway Bay did not see any improvement, and the annual rental income still fell by 1%. It also underperformed the Sogo Department Store under the broader market and the same district. Nine home management revealed that in January this year, Times Square sales have been growing, but frankly speaking that the year’s income can be flat is already good.

Make 12% more dividend per share of 0.95 yuan

Nine Markets announced its first results after the spin-off and restructuring yesterday. Core profit increased by 11.6% last year to RMB 9.5 billion, of which 94% came from 6 Hong Kong core properties; dividends were paid at RMB 0.95 per share, accounting for core profitability of Hong Kong investment properties in the second half of last year At 65%, the debt ratio was 19.9%.

Revenue from departmental harbor city increased by 7% year-on-year to RMB 6.627 billion last year. The increase was mainly due to the increase in renewal rents and the recovery in operating rents, while retail sales increased by 9.1% during the year, a 2.8% increase over the first half of the year. To improve, and outperform the 2.2% increase in total retail sales in Hong Kong over the same period. However, Times Square was relatively obscure. Last year, mall rental income fell by 1% to 2.112 billion yuan. As a result of adjusting the tenant mix, retail sales also increased by only 1.1%. As for the Sofitel Department store held by Shanghai Lifu, performance far better than that of Times Square, the annual sales rose 4.3%, reversed the decline in the first half of the year.

Analysts said that Times Square has been weak for several years, and its recovery progress has been underperforming the market. He thinks this is related to the design and business model of the mall is relatively old. In recent years, due to changes in customer spending patterns and online shopping challenges, many shopping malls All of them are attracting more people by attracting more catering and lifestyle consumers to enter the market to increase their freshness. “However, because of the early design and fire restrictions, the Times Plaza has separate lifts for restaurants, and the business mix is ​​too low due to the high rental levels. To change."

Adjust business portfolio 冀 this year

Regarding the decline in revenue of Times Square last year, Vice Chairperson Li Yufang of Jiuji Group believes that the worsening of market sentiment in Causeway Bay after 2014 is more severe than that in Kowloon. The performance of Times Square can be held flat; since last year, the business mix has been adjusted to increase the premium brands.冀 Drive performance. The newly introduced catering reputation and business are good, will be more competitive in rent, attracting young people to patronize, expected this year’s performance can be flat. She also said that in January, Times Square’s sales rebounded by nearly 6%, outperforming market performance over the same period.

As for Harbour City continued to win the big market, Li Yufang said that in January this year, it surged by more than 19%. She disclosed that Harbour City will continue to refurbish when it is needed, investing 200 million to 300 million yuan a year to maintain its competitiveness.

Wu Tianhai, chairman and managing director of Nine Lives, stated that the group would use 65% of the core earnings of Hong Kong investment properties each year as a dividend, and the remaining 35% would be used for debt reduction. The current level of liabilities is still within the budget, and it is expected to decline gradually. Ability to make new investments. The goal is a high-quality and representative rental property in Hong Kong. It is also possible to buy land for construction.