The Road To Richest Person: The Business Mode Of "Selling Rent By Selling"

The impression of "holding property" is different from the average person's mind. Selling rent "Mode", that is, the cash flow from property sales to support property holdings. In 2011, 2012 and 2013, Wanda Commercial real estate revenue was 50 billion 800 million, 59 billion 100 million and 86 billion 800 million respectively, most of which came from real estate development and sales, not property leasing and management. In 2013, property sales accounted for 86.4% of revenue. Administration The proportion of revenue is 9.8%, and the proportion of hotel operating income is 3.7%.

　　 1. Property Sales: in the first 6 months of 2014, the income dropped by 27.2% over the same period last year. What is the problem?

The sale of "rent for sale" is property sales. In 2011, 2012, 2013 and the first half of 2014, the amount of property sales was 24 billion, 25 billion, 44 billion 300 million and 9 billion 930 million respectively. The gross profit margin of this business is about 40%, which means that the net cash inflow of one or twenty billion per year is the source of Wanda's commercial empire.

But in the first six months of 2014, the revenue of this pillar business decreased by 27.2% compared with the same period last year. Is there any situation?

Like all Real Estate Company, Wanda Commercial real estate also has two kinds of "sales": one is "contract sales", which can be solved as actual sales, and the other is "sales", that is, the sales revenue in the earnings report. Because a project may have to sell for a long time, the sales amount before it will be sold out until the whole project is sold out, so that all revenue and cost will be matched to be recognized as revenue. Popularly speaking, revenue should be recognized together with the cost of generating these revenues.

This leaves room for real estate developers to adjust their revenues. If the sales amount is 10 billion according to the plan, it is half sold now. If we want to identify the 5 billion that we have received as revenue, if we say that the project is divided into one phase and two period, we should first conclude the issue. If it has already sold 99.9%, and does not want to confirm the money that has been received as revenue, as long as there are ten Suites not sold out... Whether it is the four major real estate companies - Poly, investment, Vanke, Jindi, or Hengda, Longhu, Greentown are such "adjustment". So what does the revenue growth curve want to paint?

In 2011 and 2012, Wanda Commercial Real Estate recognized half of its sales revenue as revenue. In 2013, it increased to 59.3%, and in the first half of this year, only 28.7% of contract sales were recognized as revenue. Knowing this section, there is no need to make a fuss about the 27.2% decline in the first half of 2014. Wanda may be interested in making room for growth after listing, but on the other hand, it does show that there is growing pressure on property sales.

2. Property leasing and management: the steady rise of income is related to valuation.

"Selling rent for rent", as the name suggests, is based on the huge cash flow generated by the sale of property, holding as many property as possible "rent only".

One of the advantages of the "rent only sale" mode is to facilitate the screening and supervision of tenants to ensure a good user experience. If the property is divided into large or small units sold to retailers, even if strict screening for single buyers, it is difficult to guarantee the "grade" of second-hand buyers. Numerous cases have proved that the aggregation of merchants with different brands, strength and service levels will result in bad money driving out good money. Although property leasing and management revenue account for less than 10% of revenue, it has a great relationship with the image and reputation of Wanda Commercial real estate, and even the valuation to be followed.

In 2011, 2012, 2013 and the first half of 2014, Wanda Commercial real estate leasing and management business revenues were 3 billion 730 million, 5 billion 840 million, 8 billion 480 million and 5 billion 110 million respectively. The income comes from the rental and property management fees of commercial real estate with a total area of 14 million 700 thousand square meters (including 10 million 200 thousand square meters shopping mall, 4 million 300 thousand square meter parking lot and 200 thousand square meter Office), with a gross profit margin of about 70%.

By the end of June 2014, the 89 Wanda Plaza (10 million 200 thousand square meters in total area) had been built, and the rental area was 7 million 706 thousand square meters. And the unit price is not expensive, the rental rate is very high. In 2013, the rental rate reached 99.2%, the average area of 15 thousand shops was 514 square meters, and the annual rent was 430 thousand yuan (equivalent to 2.33 yuan per square meter daily rent). Annual rental income of 6 billion 470 million, property charges, parking management (total area of 4 million 300 thousand square meters) and office rental (total area of 200 thousand square meters) brings about 2 billion yuan in revenue.

In the first half of 2014, property leasing and management revenue increased by more than 5 billion 100 million, an increase of 33.9% over the same period last year.

3. Hotel Management

Wanda Commercial real estate also uses its property to set up high-end hotels. In 2011, 2012, 2013 and the first half of 2014, the operating income of the hotel was 1 billion 450 million, 2 billion 560 million, 3 billion 210 million and 1 billion 770 million respectively, and the gross profit margin was about 30%. By the end of June 2014, there were 48 hotels in the planned 102 years, of which 28 were operated by third party hotel management groups (such as Wanda, Sofitel), and 20 self operated (using three brands such as Jiahua, Wenhua and Ruihua).

Although the quantity is similar to the third party management hotels, the income of self operated hotels is relatively low, and can not be the same as the former. In 2013, 2 billion 640 million of the 3 billion 200 million revenue from the hotel business came from third party management hotels, accounting for 82%. In the first half of 2014, the proportion of self operated hotel revenue increased by more than 30%.