TIDMHKLD TIDMJAR
RNS Number : 8912Z
Hongkong Land Hldgs Ltd
18 May 2023
Announcement
The following announcement was issued today to a Regulatory
Information Service approved by the Financial Conduct Authority in
the United Kingdom.
HONGKONG LAND HOLDINGS LIMITED
Interim Management Statement
18th May 2023 - Hongkong Land Holdings Limited today issues its
Interim Management Statement for the first quarter of 2023.
The Group's underlying profit in the first quarter was lower
than the same period in 2022. There was a reduced contribution from
the Development Properties business, due to fewer planned sales
completions on the Chinese mainland. The contribution from
Investment Properties was marginally above the same period last
year, with improved performance from the retail segment, partly
offset by lower contributions from the Hong Kong office
portfolio.
In Hong Kong, sentiment has improved in both the office and
retail sectors as a result of the lifting of travel restrictions
and a recovering local economy.
The Group's Central office portfolio continued to deliver a
solid performance, despite competitive market conditions. Physical
vacancy increased to 6.3% at the end of March 2023, compared to
4.9% at the end of 2022. On a committed basis, vacancy was 5.8%. By
comparison, vacancy for the overall Central Grade A office market
was 9.0%. Rental reversions continued to be negative in the period.
Leasing activity has improved in recent months, with a meaningful
increase in enquiries in the first quarter compared to both the
last quarter and the same period last year. Headwinds in global
financial markets, however, have dampened incremental office demand
from the financial services sector.
Trading at the LANDMARK retail portfolio in Hong Kong benefitted
from increased numbers of visitors. This led to a significant
rebound in tenants sales compared to the same period last year,
when sales were severely impacted by the fifth wave of COVID.
The strong recovery also resulted in tenant sales being only
marginally lower than pre-COVID levels. Physical and committed
vacancy at 31st March 2023 remained low at 0.5%.
Tenant sales and footfall at the Group's CENTRAL series luxury
retail malls in Beijing and Macau also experienced a strong
recovery compared to the same period in 2022, due to the lifting of
anti-pandemic restrictions.
Rental reversions in the Group's Singapore office portfolio
continue to be positive, although reversions are likely to moderate
during the remainder of the year, as caution increases amidst
uncertainties in the global technology and banking sectors.
Physical vacancy decreased to 4.6% at 31st March 2023 from 7.5% at
the end of December 2022. On a committed basis, vacancy decreased
further to 1.7%, compared with 2.2% at the end of 2022.
In Development Properties, the first quarter saw a modest
recovery in market sentiment for residential properties on the
Chinese mainland, underpinned by government policy support. The
Group's attributable interest in contracted sales was US$408
million in the period, compared to US$213 million in the first
quarter of 2022, mainly due to more planned sales launches. Sales
activity has continued to recover during April. Overall, planned
sales completions for 2023 are expected to be higher than the prior
year.
In March, the Group acquired a further 15% interest in the
Nanjing Yue City Project from Country Garden. As a result, the
Group's interest in this project is now 48%.
In Singapore, residential market sentiment and demand remained
healthy. In April, the Group commenced sales for the 638-unit
Tembusu Grand, of which 53% was sold on its launch weekend. The
Group's attributable interest in contracted sales in the city was
US$171 million in the period, compared to US$45 million in the
equivalent period in 2022. It is too early to assess the impact of
the increase in additional buyer's stamp duty introduced in late
April 2023, specifically targeted at tempering demand from foreign
investors.
The Group's financial position remains strong. Net debt at 31st
March 2023 decreased to US$5.2 billion, from US$5.8 billion at the
end of 2022. Committed liquidity was US$3.6 billion, compared to
US$3.1 billion at the end of 2022. 54% of the Group's debt interest
is at fixed rates. During the quarter, the Group continued to
invest in its share buyback programme. As at 30th April 2023, the
total amount invested in the buyback programme since it was first
announced was US$598 million.
Hongkong Land is a major listed property investment, management
and development group. The Group owns and manages more than 850,000
sq. m. of prime office and luxury retail assets in key Asian
cities, principally Hong Kong, Singapore, Beijing and Jakarta. Its
properties hold industry leading green building certifications and
attract the world's foremost companies and luxury brands. The Group
also has a number of high-quality residential, commercial, and
mixed-use projects under development in cities across China and
Southeast Asia, including a 43% interest in a 1.1 million sq. m.
mixed-use project in West Bund, Shanghai. Its subsidiary, MCL Land,
is a well-established residential developer in Singapore. Hongkong
Land Holdings Limited is incorporated in Bermuda and has a primary
listing in the standard segment of the London Stock Exchange, with
secondary listings in Bermuda and Singapore. The Group's assets and
investments are managed from Hong Kong by Hongkong Land Limited.
Hongkong Land is a member of the Jardine Matheson Group.
- end -
For further information, please contact:
Hongkong Land Limited
Mark Lam (852) 2842 8211
Gary Leung (852) 2842 0601
Br unswick Group Limited
Nan Dong (852) 9768 8379
This and other Group announcements can be accessed online at
'www.hkland.com'.
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