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Hongkong Land H1 earnings drop 64% to US$1.1b

LOWER net gains from the revaluation of its investment properties eroded results for Hongkong Land in its first half.

Net profit plunged 63.9 per cent to US$1.1 billion from US$3.1 billion the preceding year, the group said in a Singapore Exchange filing on Thursday evening.

Net profit attributable to shareholders from its ongoing business performance was US$455 million in the first half, slightly lower than US$470 million in 2017. For the current fiscal period, the group booked net gains of US$661 million on the revaluation of its investment properties, compared with net gains of US$2.6 billion from revaluations in the first half of 2017.

For the six months ended June 30, revenue nearly doubled to US$1.5 billion from the preceding year. The increase in revenue was due to higher rental and service income as well as higher sales of properties, it said.

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Earnings per share slipped to 47.90 US cents from US$1.3236 in the previous year. Net asset value per share crept up to US$15.93 as at June 30, from US$15.66 six months ago.

The directors have declared an unchanged interim dividend of six US cents per share, similar to a year ago.

Hongkong Land shares finished one US cent or 0.1 per cent up at S$7.15 on Thursday.