Advertisement
Hongkong Land reported a net profit of USD 297 million in H1 2024, reversing its prior-year loss due to reduced valuation losses on investment properties. Despite ongoing high vacancy rates in Hong Kong's office market, the company's Central portfolio remains nearly fully occupied. Underlying profit held steady at USD 384 million, and an interim dividend of 6.5 US cents per share was maintained. The company saw stable performance from development projects in mainland China, Singapore, and Indonesia, supported by resilient demand. With moderate gearing and strong liquidity, Hongkong Land expressed cautious optimism, highlighting disciplined capital management and confidence in long-term recovery.
Hongkong Land, a prominent real estate developer under the Jardine Matheson Group, recorded a net profit of USD 297 million in the first half of the calendar year, signalling a recovery after it faced a loss during the corresponding period previously. The company clarified that this reversal was primarily due to a reduction in valuation losses on investment properties. Advertisement
Although the commercial office market in Hong Kong has continued to experience high vacancy rates and weak leasing activity, the firm remarked that market conditions have shown early signs of stabilisation. Its flagship Central Hong Kong portfolio remained nearly fully occupied, demonstrating resilience amid wider market challenges.
The developer's underlying profit, which excludes property revaluations and other non-recurring items, remained consistent at USD 384 million, compared to the same level in the prior year. It also maintained its interim dividend at 6.5 US cents per share, indicating steady returns for shareholders.
The company noted that while office vacancy levels across Hong Kong remained elevated, the pace of decline in rent had slowed, especially within prime areas such as Central. It also highlighted that demand for high-quality commercial spaces persisted, despite ongoing uncertainties.
Outside Hong Kong, Hongkong Land's development projects in mainland China and Southeast Asia delivered stable returns. While the mainland Chinese market remained under pressure, presales of residential units had held up reasonably well. Projects in Singapore and Indonesia continued to contribute positively, supported by resilient market demand.
In terms of financial strength, the company reported a stable net asset value per share, with gearing levels deemed moderate and liquidity described as healthy. The firm expressed cautious optimism about the remainder of the year, emphasising the strength of its asset base and commitment to disciplined capital management.
The company's ability to uphold occupancy in Central, combined with sustained performance in China and Southeast Asia, underscores its diversified strategy. While the outlook remains tempered by economic headwinds, the firm's reaffirmed dividend and conservative financial positioning signal confidence in long-term recovery and operational resilience.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
