Hongkong Land Holdings has reported an underlying profit 13% y-o-y lower in 3QFY2025 ended Sept 30.
This is primarily due to lower contributions from the Hong Kong office portfolio and pre-opening costs of the group’s prime properties investment pipeline in China.
The group generated net cash inflows in 3QFY2025, combined with proceeds from the sale of MCL Land, and saw net debt and gearing at Oct 31 reduced to US$4.4 billion and 15% respectively.
In Hong Kong, contributions from the group’s central office portfolio in the quarter were lower compared to in the same period a year ago. However, leasing momentum continued to improve with vacancies on a committed basis declining to 6.4% at end Sept.
The group’s LANDMARK retail portfolio remained largely inline with the same period last year, despite over 30% of the lettable space being under renovation.
In Singapore, office rental reversions remain positive, due to favourable supply and demand dynamics. Physical vacancy was 2.9% and committed basis was 2.2% as at end Sept.
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The group no longer pursues investments in its build-to-sell segment. In China, buyer sentiment for the residential sector deteriorated in the quarter as the impact of new stimulus policies were limited.
On Oct 31, the group completed the sale of its Singapore and Malaysia residential developer MCL Land for $739 million. Net proceeds from the divestment amounted to $839 million, which includes cash distributions before completion.
The group has now secured 50% of its target of recycling at least US$4 billion of capital by end 2027.
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Hongkong Land’s outlook on underlying results for the full financial year remains unchanged, with performance excluding provisions, expected to be lower than the prior year.
Shares in Hongkong Land closed 3 US cents lower or 0.474% down at US$6.30 on Nov 20.
