Higher occupancy in both Hong Kong and Singapore continued strengthening HongKong Land Holdings’ commercial portfolio last year.
While preliminary figures show the underlying profit has eased by 6 per cent to US$848 million compared with the previous year, net assets per share were up 9 per cent on higher capital values.
Full-year net profit was $3.3 billion, up 66 per cent and lifted by a $2.5 billion gain on the revaluation of the group’s investment properties. Revenue came in at $2 billion, down 3.2 per cent.
There has been steady residential contribution from Mainland China and Singapore, and a stable performance is anticipated for this year from the group’s commercial property portfolio, says CEO Robert Wong.
In Hong Kong, the group’s Central retail portfolio, which includes the Landmark shopping centre, remains fully occupied and base rental reversions continue to be largely positive. The impact of turnover rent, however, led to the average retail rent reducing to HK$218 (US$28) a sqft, compared with HK$221 in 2015.
The value of the group’s commercial portfolio in Hong Kong increased by 12 per cent thanks to office capitalisation rates compressing on strong investment demand and rental growth.
In China, construction is progressing well with the group’s luxury retail and hotel complex in Beijing, WF Central at Wangfujing. The retail component is scheduled to open late this year.
Hongkong Land says it has seen the value of its commercial property portfolio grow significantly during the year.
A key component of the group’s retail portfolio in Hong Kong is the Landmark. Its tenants include luxury-brand flagship stores as well as Michelin Star restaurants.
In Cambodia, the group’s 30,000 sqm prime mixed-use complex with office and retail components in the heart of Phnom Penh has just been completed.
A member of the Jardine Matheson Group, Hongkong Land owns and manages almost 800,000 sqm of prime office and luxury retail property in key Asian cities, principally Hong Kong and Singapore.
