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Hongkong Land Holdings posts 66% rise in FY16 profit on revaluation gain
HONGKONG Land Holdings on Thursday reported a full-year net profit of US$3.3 billion, up 66 per cent year on year, lifted by a US$2.5 billion gain recorded on the revaluation of the group's investment properties.
This translates to earnings per share of 142.23 US cents, almost double the 85.50 cents a year ago.
Revenue for FY16 came in at US$2 billion, down 3.2 per cent.
Underlying profit for the 12 months as at end December 2016 was down 6 per cent to US$848 million.
Shareholders' funds grew 9 per cent to US$31.3 billion, while net debt was 14 per cent lower at US$2 billion.
The net asset value per share at the end of December 2016 was US$13.30, compared wit US$12.19 at the end of 2015.
A final dividend of 13 US cents per share has been declared, bringing the total dividend for the year 19 cents per share, unchanged from the previous year.
Robert Wong, chief executive of the company noted that Hongkong Land had a good year in 2016 with another strong contribution from its commercial property portfolio and a steady contribution from its residential property projects.
He said there has been a significant increase in the value of the group's commercial property portfolio during 2016 and that it maintains a sound balance sheet with ample liquidity, placing it in a good position in its core markets in Greater China and South-east Asia.
Said Ben Keswick, the group chairman: "A stable performance is anticipated from Hongkong Land's commercial property portfolio in 2017, while in the group's residential business a higher contribution from mainland China is expected to be offset by lower profits from Singapore."
A member of the Jardine Matheson Group, Hongkong Land owns and manages almost 800,000 square metres of prime office and luxury retail property in key Asian cities, principally in Hong Kong and Singapore.