Hongkong Land narrows H1 loss, declares 6 US cent interim dividend
HONGKONG Land, a member of the Jardine Matheson Group, narrowed its net loss to US$863.2 million for the half-year ended June 30, from US$1.8 billion a year ago.
The loss included net non-cash losses of US$1.3 billion arising from the revaluation of the group's investment properties due to lower open market rents. The year before, H1 net loss included net losses of US$2.2 billion, also due to investment property revaluations.
Underlying profit increased 11.8 per cent to US$394.4 million as revenue rose 8 per cent to US$885.8 million.
Loss per share was 37.06 US cents, compared with 78.31 cents a year ago. Going by underlying profit, earnings per share was 16.9 cents, up from 15.12 cents.
Net asset value per share as at end-June fell to US$14.75 from US$15.30. (amendment note)
The board has declared an interim dividend of 6 US cents per share, unchanged from a year ago. Payment will be made on Oct 13.
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Hongkong Land said results were lifted by higher development properties profits due to the timing of sales completions. Contributions from investment properties remained resilient despite negative rental reversions in Hong Kong.
Vacancy at the group's office portfolio in Hong Kong was 6.4 per cent at the end of June 2021, compared to 6.3 per cent at the end of 2020. On a committed basis it was 5.5 per cent, compared to 5.9 per cent the year before.
Competition to secure sites for development on the Chinese mainland remains fierce, Hongkong Land noted. The group secured three predominantly residential projects during the period, comprising a site in Lishui district, Nanjing and two further sites located in the Qiaokou and Guanggu districts of Wuhan.
"While higher second-half underlying profits are expected from the group's development properties business due to more sales completions on the Chinese mainland, overall conditions are expected to be similar to those of the first-half," said chairman Ben Keswick.
Net gearing was 12 per cent as at end-June, compared with 13 per cent at the end of 2020.
The group had committed liquidity of US$4.4 billion, compared to US$4.3 billion at the end of 2020. The average tenor of debt was 6.4 years, down from 6.6 years at the end of last year.
The counter ended at US$4.57 on Thursday, down US$0.04 or 0.87 per cent.
Amendment note: The article has been amended to reflect the correct NAV per share.
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