In the group’s investment property segment, Hongkong Land’s central office portfolio vacancy stood at 7.6%, compared to 12.2% for the overall central district grade A office market. Physcial vacancy stood at 9.0%, following the timing of planned tenant movements.
Rental reversions remained negative during the period, despite a slight increase in office enquiries.
In Singapore, the group’s office portfolio remained fully occupied, with positive rental reversions during the period. The group adds that leasing momentum remained “resilient” amid an uncertain business environment, driven by flight-to-quality demand.
As at Sept 30, physical vacancy stood at 1.5%, down from 2.6% as at end-June. On a committed basis, vacancy stood at 1.3%.
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For its Singapore portfolio, the group’s attributable interest in contracted sales was at US$60 million ($80.8 million) for the period.
For the period, the group’s net debt saw a decrease to US$5.3 billion from US$5.4 billion as at end-June, with a gearing of 17%. Committed liquidity stood at US$3.2 billion, compared to US$3.0 billion at the end-June.
In October, the group announced a new strategic direction to become a leading real estate business in Asia’s gateway cities, focussed on ultra-premium integrated commercial properties.
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The group adds: “Our priority is to simplify the business with a focus on Investment Properties, generating growth in long-term recurring income. As a result, we will no longer invest in the build-to-sell segment, but will instead actively recycle capital out from this business segment.”
Shares in Hongkong Land closed 16 US cents higher, or up 3.64%, at US$4.56 on Nov 14.
