TIDMHKLD TIDMJAR
RNS Number : 9439S
Hongkong Land Hldgs Ltd
09 November 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
9th November 2023 - Hongkong Land Holdings Limited today issues
an Interim Management Statement for the third quarter of 2023.
Overall, the Group's underlying profit in the third quarter was
lower than in the same period in 2022. Total contributions from
Investment Properties were broadly in line with the same period
last year, with higher contributions from the Group's luxury retail
portfolio and Singapore office largely offsetting lower
contributions from the Hong Kong office portfolio. There were lower
contributions from Development Properties, due to the timing of
planned sales completions. Net financing charges were higher as a
result of an increase in interest costs.
The Group's Central office portfolio in Hong Kong continued to
outperform the overall market despite difficult macroeconomic
conditions. Physical vacancy at 30th September 2023 was 7.3%,
compared to 6.9% at the end of June 2023. On a committed basis,
vacancy was 6.8%, compared to 6.2% at the end of June 2023. Overall
Central Grade A office market vacancy was 9.7% at the end of
September 2023. Rental reversions continued to be negative, whilst
leasing activity softened further compared to the first half of the
year, as rising interest rates and subdued capital market activity
in Hong Kong negatively impacted office demand.
The Group's LANDMARK retail portfolio in Hong Kong delivered an
improved performance compared to the prior year, extending its
positive momentum from the first half of the year. Flagship
tenants' sales have largely returned to pre-pandemic levels.
Vacancy at 30th September 2023 remained low at 1.7%.
The Group's CENTRAL series luxury malls in Beijing and Macau
delivered positive results on the back of the continued recovery in
tenant sales and footfall, with improved performance compared to
the same period in 2022, which was impacted by anti-pandemic
restrictions.
In Singapore, office rental reversions remained positive during
the period. Leasing momentum has slowed considerably as tenants
adopt a cautious approach in an uncertain macro environment,
although the market position of the Group's office portfolio
remains strong. Physical vacancy was 2.1% at 30th September 2023,
unchanged compared to the end of June 2023. On a committed basis,
vacancy was 0.8%, compared to 1.0% at the end of June 2023.
In Development Properties, market sentiment for residential
properties on the Chinese mainland remained weak despite mild
improvements in top-tier cities following government policy support
during the third quarter. The Group's attributable interest in
contracted sales was US$186 million in the third quarter, compared
to US$346 million in the equivalent period in 2022, due to a
combination of fewer planned sales launches and slower sales. In
the nine months to 30th September 2023, the Group's attributable
interest in contracted sales on the Chinese mainland was US$931
million, compared to US$765 million in the same period last year.
Overall, planned sales completions for 2023 are expected to be
lower than the prior year.
In July, the Group secured a 40% interest in the development of
a mixed-used site in the Guanyinqiao area in Chongqing, with a
total developable area of approximately 301,000 sq. m. The site is
adjacent to the Group's another project currently under
development.
In September, the Group completed the acquisition of a 20%
interest in the development of a mixed-use site in Beijing,
consisting of commercial and residential components. The total
developable area of the site is approximately 191,000 sq. m.
In Singapore, residential demand remained stable, enabling a
satisfactory sales performance by the Group's four residential
projects. The Group's attributable interest in contracted sales in
the city was US$59 million in the third quarter, compared to US$56
million in the equivalent period in 2022. In the nine months to
30th September 2023, the Group's attributable interest in
contracted sales in Singapore was US$546 million, compared to
US$326 million in the same period last year.
In November, the Group secured, subject to final award, two
residential sites in Singapore, both in the Outside Central Region
of Singapore. These sites will be developed in joint ventures with
other developers. The Group's effective interest in these projects
equates to a developable area of 541,000 sq. ft.
The Group's financial position remains strong. Net debt at 30th
September 2023 decreased to US$5.4 billion from US$5.5 billion at
the end of June 2023. Committed liquidity was US$3.9 billion,
compared to US$3.3 billion at the end of June 2023. 60% of the
Group's debt is at fixed interest rates.
The Group's full-year underlying profits are now expected to be
moderately below the prior year. This is primarily due to a change
in the timing of residential sales completions at West Bund,
Shanghai, which will result in the profits from this part of the
project moving to the first half of 2024, and write-downs in the
investment value of two residential projects in Wuhan due to weaker
than expected local market conditions.
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
Kay Lau (852) 6021 7009
This and other Group announcements can be accessed through the
Internet at 'www.hkland.com'.
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