analyst briefing...south beach place (1 tower) westside city 7.9 sunny coast residential resort 2...

FY 2019

Analyst Briefing

FY2019 FINANCIAL HIGHLIGHTS

P17.9bn

ATTRIBUTABLE

NET PROFIT

P48.2bn

CAPEX SPENDING

P67.3 bn

TOTAL REVENUES

P75.9bn

GROSS DEBT

P29.6bn

EBITDA

2

26%

NET DEBT/EQUITY

P19.3bn

NET PROFIT

Real EstateP42.6 bn

RentalsP16.8 bn

HotelsP2.5 bn

OthersP5.4 bn

in Pbn FY19 FY18 % Remarks

REVENUES 67.3 57.4 17% Strong core growth

Real Estate Sales 42.6 38.0 12% Project completion of higher-valued projects

Rentals 16.8 14.3 18% Steady occupancy rates; Capacity increases

Hotels 2.5 1.5 67% Increased room capacity

Others 5.4 3.6 48%

COSTS & EXPENSES 48.0 41.4 15% Costs growth from higher sales and rental

Cost of Sales 23.4 20.5 14% Higher project completion

Hotel Costs 1.4 0.8 68% Pre-operating expenses from new hotels

Operating Expenses 13.9 11.3 24% Depreciation (↑20%); Commission (↑48%)

Interest & Other Charges 3.3 3.3 -1%

Income Taxes 6.1 5.5 10%

PRE-ACQUISITION INCOME 0 0.2 -

EBITDA 29.6 25.0 19% Higher contribution from rental segment

NET PROFIT 19.3 15.8 22% Higher contribution from rental segment

ATTRIBUTABLE NET PROFIT 17.9 15.2 18%

FY2019 PERFORMANCE UPDATE

GP

Marg

inEB

ITD

A M

arg

inN

P M

arg

in

45.1%

46.1%

44.0%

43.5%

28.7%

27.6%

2019 2018 3

↓100 bps

↑50 bps

↑ 110 bps

29.9 31.4 31.535.6

41.6

49.1

3.45.4 4.8

6.2

7.5

8.8

4.65.1 4.9

4.9

4.4

5.2

3.1

3.2 3.1

3.5

3.9

4.2

2014 2015 2016 2017 2018 2019

MEG GERI ELI SPI

69%

27%

4%

71%

26%

3%

Real Estate Rentals Hotels

Breakdown **

TOTAL REVENUES (Pbn)

41.045.0 44.3

50.1

57.4

63.7

2019

2018

5-Year CAGR: 10%

*2014 figures exclude non-recurring gains of P12.2bn

**Core Revenues only (Residential, Rentals and Hotels); excludes finance and other income4

12.7 13.815.4

17.3

20.5

24.51.1

1.4

1.8

2.4

2.9

3.4

0.80.8

0.8

1.2

1.2

1.4

0.50.6

0.3

0.3

0.3

0.437% 37%

41%42%

43% 44%

2014 2015 2016 2017 2018 2019

MEG GERI ELI SPI EBITDA Margin

Breakdown**

EBITDA (Pbn)* & MARGIN

15.116.6

18.321.2

25.0

29.6

2019

2018

5-Year CAGR: 14%

45%53%

2%

48%50%

2%

Real Estate Rentals Hotels5*2014 figures exclude non-recurring gains of P12.2bn

**Core Revenues only (Residential, Rentals and Hotels); excludes finance and other income

7.8 8.9 10.111.5

13.516.50.9

0.8

1.1

1.5

1.7

2.1

0.50.6

0.5

0.6

0.5

0.6

0.30.3

0.1

0.1

0.1

0.123% 24%

27%27% 28% 29%

2014 2015 2016 2017 2018 2019

MEG GERI ELI SPI NP Margin

9.410.6

11.8

13.7

15.8

19.3

NET PROFIT (Pbn) & MARGIN

ATTRIBUTABLE NET PROFIT (Pbn) & MARGIN

5-Year CAGR: 15%

6

7.78.9

10.111.4

13.4

16.10.60.6

0.8

1.2

1.2

1.2

0.40.4

0.4

0.5

0.4

0.5

0.30.3

0.1

0.1

0.1

0.1

22%23%

26% 26% 26% 27%

2014 2015 2016 2017 2018 2019

MEG GERI ELI SPI ANP Margin

9.110.2

11.513.1

15.2

17.9

5-Year CAGR: 16%

*2014 figures exclude non-recurring gains of P12.2bn

39.8

50.246.2 44.7

49.3 47.9

4.3

2.8 4.2

5.9

0.4

2014 2015 2016 2017 2018 2019

Project Development Land Acquisition

2020 CAPEX

CAPITAL EXPENDITURES (Pbn)

39.8

54.5

49.0 48.9

55.2

48.2

P36 bn

Investment

Properties

30%

Residential

70%

7

31.1

46.652.1

64.4 64.3 64.70.2

2.0

3.9

5.1 4.1 5.0

0.1

1.5

2.0

2.0 2.1 1.4

2.1

2.5

3.2

3.4 5.3 4.7

2014 2015 2016 2017 2018 2019

MEG GERI ELI SPI

GROSS DEBTS (Pbn)

33.5

52.6

61.2

74.9 75.7 75.9

Fixed

65%

Floating

35%

PH Peso

72%US Dollar

28%

Typ

e o

f D

eb

tIn

tere

st R

ate

Cu

rren

cy

Loans

68%

Bonds

32%

8

10.0

28.4

40.2

53.1 50.745.9

-2.8-0.9

0.8

1.92.3

2.4

0.1

0.9

0.70.2

0.3

1.8

2.2

2.8

2.8 4.9

4.2

7%

22%

31%

36%

31%

26%

2014 2015 2016 2017 2018 2019

MEG GERI ELI SPI Net Debt-to-Equity

NET DEBT (Pbn) & NET DEBT/EQUITY

8.4

29.8

44.8

58.5 58.2

52.8

MEG

GER

IELI

SP

I

8%21% 28% 32% 27% 22%

2014 2015 2016 2017 2018 2019

-11%-3% 3% 6% 7% 7%

2014 2015 2016 2017 2018 2019

-3% 0% 4% 3% 1% 1%

2014 2015 2016 2017 2018 2019

92% 96%115% 108%

184% 154%

2014 2015 2016 2017 2018 20199

10

CORE BUSINESSES

REAL ESTATE OFFICES MALLS HOTELS

FY 2019 OPERATIONAL HIGHLIGHTS

4,300has

LANDBANK

P149bn

RESERVATION SALES

P85bn

PROJECT LAUNCHES

1.3m

OFFICE GLA (SQM)

453k

RETAIL GLA (SQM)

26 TOWNSHIPS(4,284 Hectares)

3,637HOTEL ROOM KEYS

25

31

5

34.5

50

15.4

5

12.4

18.5

72

173

34

53 11

150

30

300

561

1,200

251

62

350

140

640

24

35.6

11

REAL ESTATE

RESERVATION SALES

PROJECT LAUNCHES

P149 bn

REAL ESTATE SALES

P42.6 bn

P85 bn

12

19.721.9

24.7

29.5

3.9

5.3

6.4

6.1

4.0

3.9

3.5

3.5

2.7

3.0

3.4

3.6

2016 2017 2018 2019

MEG GERI ELI SPI

GP

(P

bn

) &

Marg

inEB

ITD

A (

Pb

n)

& M

arg

in 31%32% 32%

31%

9.711.5 12.7 13.6

2016 2017 2018 2019

Residential EBITDA EBITDA Margin

3-Year CAGR: 12%

REAL ESTATE SALES (Pbn) & MARGINS

30.4

34.1

38.0

42.6

9.1 10.6 11.7 13.1

2.22.9

3.43.3

1.51.7

1.51.8

0.80.9

1.01.0

45%47% 46% 45%

2016 2017 2018 2019

MEG GERI ELI SPI GP Margin

13.6

17.5 19.216.1

13

REAL ESTATE SALES MIX

8.4

2.8

10.8

5.6

3.2

6.0

0.5

1.5

1.5

2.0

0.4

Taguig

Makati

Pasay/Parañaque

Quezon City/Pasig

Other MM Areas

CALABARZON

Other Luzon Areas

Iloilo

Cebu

Boracay

Other Vis-Min

Areas

↓11%

↓29%

↑ 155%

↑ 25%

↓31%

↑ 18%

↑ 41%

↓ 3%

↓ 12%

↑ 13%

↑ 61%

By Classification

75%

8%

12%4%1%

78%

5%

14%3%0% Residential Units

Condotels

Residential Lots

Commercial Lots

Industrial Lot

2019

2018

14

RESERVATION SALES (Pbn)

By

Cla

ssif

icati

on

54.2 52.0 53.0

70.5

91.198.3

13.5 14.6 11.0

10.9

14.3

19.2

11.3 11.9 13.0

14.3

17.8

18.4

6.0 6.8 10.2

9.3

12.2

12.8

2014 2015 2016 2017 2018 2019

MEG GERI ELI SPI

85.0 85.387.2

105.0

135.4

148.7

78%

1%

12%

6%3% 0%

Residential Units Office Units

Condotels Residential Lots

Commercial Lots Industrial Lots

Bu

yer’

s P

rofi

le

75%

13%

12%

Local

Asian

OFW

15

PROJECT LAUNCHES (Pbn)PROJECT NAME LOCATION VALUE

MEGAWORLD 63.8

South Beach Place (1 tower) Westside City 7.9

Sunny Coast Residential Resort 2 & 3 Westside City 12.4

Two Regis Upper East 1.6

One Corporate Place Maple Grove 1.5

The Albany Yorkshire Mckinley West 3.0

Saint Mark Residences Mckinley Hill 3.8

Bryant Parklane - West Wing Capital Town 0.9

International Corporate Plaza Iloilo Business Park 2.0

Park McKinley West - Phase 2 - Tower C McKinley West 7.9

Arcovia Palazzo - Towers 1 & 2 Arcovia City 7.4

Kingsquare Residence San Lazaro, Manila 5.2

Arden Botanical Village Arden Botanical Estate 2.7

The Pearl Global Residences Mactan Newtown 2.3

Manhattan Plaza Tower 3 Manhattan Garden City 5.2

GLOBAL-ESTATE 11.0

Countrywoods Cluster 2 Twin Lakes 2.0

Tulip Gardens Towers 2-3 Southwoods City 3.6

The Lindgren Arden Botanical Estate 1.4

Ocean Garden Villas Cluster B Boracay Newcoast 0.8

Chancellor Hotel Boracay Cluster 2&3 Boracay Newcoast 3.2

EMPIRE-EAST 3.1

Highland City – Arcadia T1 Highland City 3.1

SUNTRUST PROPERTIES 6.8

Sofia Terraces Baguio City 1.2

East Park Residences Davao City 3.0

The Arcadia Porac, Pampanga 2.6

TOTAL 84.7

By C

lass

ific

ati

on

By L

oca

tio

n

62%

38%

Provincial

Metro Manila

84%

4%4%

8%

Residential Units Office Units

Condotel Residential Lots

16

KEY LAUNCHES

The Pearl Global Residences

The Mactan Newtown

P 2.3 billion | 37% sold

Highland City – T1

Highland City


Arden Botanical Village

Arden Botanical Estate


The Arcadia

Porac, Pampanga


Kingsquare Residences

San Lazaro, Manila


17

Chancellor Hotel

Boracay Newcoast


RENTALS

MEGAWORLD PREMIER OFFICES

MEGAWORLD LIFESTYLE MALLS

P10.5 bn

RENTAL REVENUES

P16.8 bn

P6.3 bn

18

RENTAL INCOME (Pbn)

RENTAL EBITDA & MARGIN

4.25.1

6.07.3

8.7

10.52.9

3.6

4.0

4.6

5.5

6.3

2014 2015 2016 2017 2018 2019

Prime Offices Lifestyle Malls

7.1

8.7

10.0

11.8

14.3

16.8

5-Year CAGR: 20%

86%85%

87%88%

88% 89%

6.4

9.2 9.2 10.9

13.4 15.9

2014 2015 2016 2017 2018 2019

Rental EBITDA EBITDA Margin

19

RENTAL PORTFOLIO (‘000 sqm)

MEGAWORLD LIFESTYLE MALLS MEGAWORLD PREMIER OFFICES

577659

742829

900

1,07544

78

109

184

219

237

2014 2015 2016 2017 2018 2019

Metro Manila Provincial

621

737

851

1,013

1,119

1,312

181

259 266 279

341 3575

1023

46

9296

2014 2015 2016 2017 2018 2019

Metro Manila Provincial

186

269288

325

433453

20

HOTELS

HOTEL EBITDA

HOTEL ROOM COUNT

P0.6 bn

HOTEL REVENUES

P2.5 bn

3,63721

0.4 0.5

0.81.0

1.3

1.7

0.30.3

0.4

0.3

0.2

0.8

2014 2015 2016 2017 2018 2019

MEG GERI

HOTEL REVENUES (Pbn)

0.7

HO

TEL R

OO

M C

OU

NT

5-Year CAGR: 29%

0.8

1.2

1.3

1.5

2.5

556 556 1,185

1,744

2,554

3,637

2014 2015 2016 2017 2018 2019

EB

ITD

A (

Pm

) &

MA

RG

IN

304 304 364 364 428

643

41% 37%31% 28% 28% 25%

2014 2015 2016 2017 2018 2019

Hotel EBITDA Margins

22

2020

P50bn

RESERVATION SALES

P4 bn

PROJECT LAUNCHES

+110k

OFFICE GLA (SQM)

+26k

RETAIL GLA (SQM)

+526HOTEL ROOM KEYS

P36bn

CAPEX BUDGET

2020 TARGETS

23

MEGAWORLD PREMIER OFFICES

PROJECT TOWNSHIP GLA

2020

Two Fintech Place Iloilo Business Park 17,600

Worldwide Plaza Uptown Bonifacio 69,200

One Fintech Tower Westside City 17,500

Mactan World Museum The Mactan Newtown 5,400

Total GLA 109,700 sqm

2021

Enterprise 1 (IBP BPO 11) Iloilo Business Park 36,700

Suntrust Finance Center Westside City 20,800

1 Upper East Avenue Upper East 8,600


2022

International Finance Center Uptown Bonifacio 69,000

Two McWest McKinley West 54,400

Two Fintech Tower Westside City 17,600

IBP BPO 10 Iloilo Business Park 39,000

Pasudeco Tower 1 Capital Town 9,000

TMN BPO 6 The Mactan Newtown 10,600

Lapu Lapu Civic Square The Mactan Newtown 11,000

The Upper East BPO 2 Upper East 8,600

Total GLA 219, 200 sqm

Worldwide Plaza (2020)Uptown Bonifacio

One (2019) and Two Fintech Towers (2022)Iloilo Business Park

International Finance Center (2022)Uptown Bonifacio

24

MEGAWORLD LIFESTYLE MALLS

PROJECT TOWNSHIP

2020

Lafayette Iloilo Business Park

808 Building Iloilo Business Park

World Commerce Plaza Uptown Bonifacio

The View Deck Arcovia City

One Legrand Tower Mckinley West

Clock Tower Davao Park District

Collonade Davao Park District

Art Deco Davao Park District

Uptown Palazzo Uptown Bonifacio


2021

Clark Cityfront Clark, Pampanga

8 Sunset Blvd and One Fintech Westside City

Clark Parking Square Clark, Pampanga

Highland Skymall Highland City

San Antonio Residences Makati

Boracay Chancellor Boracay Newcoast

The Pad Shaw

Palladium Iloilo Business Park

810 Building Iloilo Business Park


The Pad (2021)Shaw, Pasig City

Skymall (2021)Highland City, Cainta

Uptown Palazzo (2020)Uptown Bonifacio

The View Deck (2020)Arcovia City

25

MEGAWORLD HOTELS

Belmont Hotel

Mactan

Kingsford

Hotel

Grand

Westside

Hotel

HOTEL NAME TOWNSHIP ROOM KEYS2020

Kingsford Hotel Westside City 526

2021

Chancellor Hotel Boracay Boracay Newcoast 554

2022

Grand Westside Hotel Westside City 1,530

Belmont Hotel Mactan The Mactan Newtown 550

Total 2,080

26

IMPACT OF COVID-19 PANDEMIC ON THE BUSINESS

REAL ESTATE

• Work stoppage on construction

sites and slowdown on the

supply chain may potentially

lead to delays on the targeted

completion and turnover of

projects.

• Demand is negatively affected

due to reduced liquidity of

potential customers and

slowdown of construction

progress.

OFFICES

• POGO operations were

temporarily closed.

• BPO offices remain opearational,

while social distancing measures

are implemented

MALLS

• Community quarantine also

requires temporary adjustment

of mall operating hours which

could reduce foot traffic.

• All Megaworld Lifestyle Malls in

Metro Manila have temporarily

closed except for those tenants

that continue to provide the

basic needs of our office tenants,

residents and the neighboring

communities in our townships.

HOTELS

• Occupancy dropped significantly

due to travel restrictions and

cancellation of bookings and

MICE activities.

• Most hotels have limited

operations, with in-city hotels

utilized as lodgings for the BPOs

and repatriated OFWs.

27

ADDRESSING THE IMPACT OF COVID-19 PANDEMIC

28

KEY TAKAWAYS

The township model is the way of the future

as convenience becomes a way of life. Best

model in securing a community.

MEG expects the BPO sector to continue to

drive growth in office space. As the country’s

largest office landlord, MEG has the scale to

take advantage of the expected surge in BPO

office demand.

MEG’s initiatives on digital transformation

should strengthen its business moving

forward.

With cash preservation as a main objective,

MEG has decided to reduce its overall capex

to P36bn as it plans to finish only its ongoing

projects.

MEG has 4,300 hectares of developable land

in prime locations. This is MEG’s most

valuable asset which will be difficult for most

developers to replicate.

MEG has the lowest financial gearing among

the major listed property companies. This

can give it more flexibility in terms of

leveraging once business activity picks up.

29

FY 2019

Analyst Briefing

analyst briefing...south beach place (1 tower) westside city 7.9 sunny coast residential resort 2...

Documents