The group attributed the decline to non-cash provisions from the Chinese mainland build-to-sell business. Excluding the Chinese mainland non-cash provisions, the group’s underlying profit is US$724 million for FY2024.
In October, the group announced that it will strategically focus on growth in its ultra-premium integrated commercial assets in cities across Asia.
To fund that growth, Hongkong Land has committed to recycle up to US$10 billion over the next 10 years, from three main sources — winding down existing inventory from the build-to-sell segment, divestment of non-core commercial assets, and recycling mature prime property assets into REITs and other third-party capital vehicles.
The group says that its portfolio in Hong Kong, Shanghai and Singapore are anchors to its new strategy.
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In Hong Kong, physical vacancy was 7.3% as at end Dec 31, 2024. Committed basis vacancy was 7.1%, and the group's average portfolio office rent was HK$101 per sq ft.
The weighted average lease expiry of the office portfolio stood at 3.7 years. Contributions from the group’s luxury retail portfolio were lower in 2024 compared to a year ago.
The value of the group’s investment properties portfolio in Hong Kong declined by 5% to US$22.8 billion as a result of decline in market rent for HK offices.
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In Singapore, the group’s physical vacancy stood at 1.6% as at end Dec, 2024. Average rent increased to $11.1 per sq ft, while weighted average lease expiry stood at 3.3 years.
In China, contributions from the group’s luxury retail mall in Beijing increased y-o-y, while the group’s mega-development in Shanghai on the West Bund were sold at prices among the highest in the Shanghai primary residential market.
For 2025, contributions from the Central Portfolio will be impacted by negative office rental reversions and the ongoing Tomorrow’s Central transformation, the group notes.
Lower margins and substantially lower contributions from the build-to-sell segment are also expected, as the group continues to wind-down residential inventory amidst uncertain market conditions. Overall, the group expects 2025 underlying profits to partially recover from the prior year, although at levels well below that of 2023.
The group has proposed a final dividend of 17 US cents per share.
Shares in Hongkong Land closed 12 US cents lower or 2.62% down at US$4.46 on March 7.
