Hysan Development hit by revaluation
A revaluation of investment properties has led to a profit slide for Hysan Development for the first six months of this year.
Chairman Irene Yun Lien Lee says the revaluation loss reflects a “challenging retail rental outlook”.
Hysan’s net income fell 60.7 per cent to HK$899 million (US$115.87 million). Excluding valuation loss, its underlying profit edged up 1.3 per cent to HK$1.18 billion.
The developer says the total turnover from its retail portfolio, including its flagship Hysan Place, Lee Gardens and Lee Theatre in the Causeway Bay shopping district, went up 3.8 per cent to HK$986 million from a year ago, with the retail segment making up 56 per cent of overall turnover.
Hong Kong’s first-quarter retail sales tumbled 12.5 per cent in the biggest quarterly decline in 17 years, as mainland tourists abandoned the city’s shopping malls, Disney resort and other theme parks. However, Hysan says it plans to spruce up its properties to attract visitors.
Hysan’s full-year results will be “steady”, as most leases that expire this year have already been recommitted, says Lee.