Page 15 - Hang Lung Properties 2012 Annual Report

Total retail rents received on the Mainland rose by 24%. Taking out
the two newer properties with less than two full years of operations,
the increase was 8%. When offices were added in, the year-on-year
growth in overall rental turnover was 18%.
In all projects and in almost all product types, rental margins have
improved. The most marked change came in Shenyang Palace 66 which
more than doubled from 12% to 27%, and in Jinan Parc 66 from 34%
to 51%. Being newer facilities, such an outcome is to be expected, and
numbers will likely get even better.
With the exception of Palace 66, occupancy everywhere approached
100%. In this first mall of ours outside Shanghai, surrounding road
works stopped only for a short period at the beginning of the year,
but digging soon resumed and had continued for the rest of the year.
We took advantage of this slow period to revamp tenant mix as I had
previously written. The process is almost complete and we should
achieve 95-96% occupancy later this year. Like all our other properties,
unit rents have been rising.
In terms of unleveraged gross rental yield on investment cost, the two
Shanghai properties have reached approximately 40%. Shenyang
Palace 66, after almost 2.5 years of operations, stayed at 5%, a level
achieved in the first year of our two Shanghai properties over a decade
ago. The primary reason for the underperformance is no doubt the
aforementioned road works which has been ongoing for the better part
of the past two years.
The picture in our other new facilities was far more positive. Sixteen
months after inauguration, Jinan Parc 66 has achieved an unleveraged
gross rental yield of 8%. This is slightly ahead of our corresponding
experience in Shanghai. Shenyang Forum 66 was even more
encouraging. Barely three months old, the projected full year is about
10%. In Shanghai, only in the fourth year did we see this figure!
ԸІlzήٙཧਯॡږᐼᕘɪʺϵʱʘɚɤ
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lzd዆᜗ॡږϗɝ༰̘ϋᄣڗϵʱʘɤɞf
הϞධͦʿ఻˷הϞيุᗳۨdѩίॡ ږ
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ᄿఙٙʺష௰މ׼ᜑd͟ϵʱʘɤɚ ࠴ʺ
Їϵʱʘɚɤɖd᏶یٙ㛬ඤᄿఙ͵͟ϵ
ʱʘɧɤ̬ɪʺЇϵʱʘʞɤɓf־ഃѩ
༰މ อධͦdՉϓᐶɗจࣘʕԫdϾ͊Ը
Ꮠ༈ึϞһԳڌତf
ৰެ۬㛬ඤᄿఙ̮dהϞධͦٙॡ̈ଟѩ
ટڐϵʱʘɓϵfެ۬㛬ඤᄿఙɗҢࡁί
ɪऎ˸̮ٙ࠯ࡈਠఙdՉմቊ༸༩ʈ೻׵
ϋڋ೹ࢹܝૅуూʈdԨ׵ϋlzɽ௅ʱࣛ
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Ϥᇠላಂࠠ዆ॡ˒ଡ଼ΥfϞᗫʈЪତʊટ
ڐҁϓdʦϋ೹ܝٙॡ̈ଟᏐ̙༺ϵʱʘ
ɘɤʞЇɘɤʬfνණྠՉ˼يุɓᅵd
༈ධͦٙఊЗॡږ͍ܵᚃɪʺf
˸ҳ༟ϓ͉ٙೌ࿳૖ॡږΫజଟ ࠇၑdՇ
ධɪऎ يุٙᅰο ༺ߒ ϵʱʘ̬ɤfᓨජ
ٙެ۬㛬ඤᄿఙ຾ᐄટڐՇϋ̒ ܝdՉᅰ
ኽၪܵίϵʱʘʞdϤɗɤεϋۃҢࡁՇ
ධɪऎ يุ࠯ϋ՟੻ٙ˥̻f૩ೌဲਪd
Չڌତ೹Ⴥٙ˴ࠅࡡΪd݊ɪ˖ ࠑה ཀ̘
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޴ˢʘɨdණྠՉ˼อਠఙٙڌତଣซ੻
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࿳૖ॡ ږΫజଟ༺ϵʱʘɞdவˢҢ ࡁί
ɪऎֻٙᐶ೹௷ɓᘪfᓨජִ̹ٙ㛬ඤᄿ
ఙһ̋˿ɛོႀdකุසසɧࡈ˜dՉཫ
ࠇΌϋΫజଟટڐϵʱʘɤfίɪऎdҢ
ࡁ༶ЪЇୋ̬ϋ˙Ԉவࡈᅰοl
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