Hongkong Land Holdings has narrowed its losses for FY2021 to US$349 million from US$2.6 billion incurred in the preceding year.
The company’s underlying profit, which it maintains is a more accurate measure of its performance was US$966 million, similarly to US$963 million reported for FY2020.
The losses were largely due to a US$1.3 billion revaluation loss booked for the year.
Its net asset value dipped slightly to US$15.05 per share as at Dec 31 2021, down 2% versus US$15.30 as at Dec 31 2020.
The company plans to pay a final dividend of 16 US cents, which will bring its FY2021 dividend to 22 US cents – the same level as that paid for FY2020.
Ben Keswick, the company’s chairman, describes the FY2021 as “resilient” given the continued macroeconomic challenges in its key markets.
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“While the profit contribution from the group’s prime investment properties portfolio is expected to largely remain stable in 2022, lower profits are anticipated from the development properties business, primarily due to the timing of sales completions in China,” he says.
Hongkong Land’s portfolio of prime offices located at Hong Kong’s Central is seeing tentative signs of improvement. Vacancy rate as at end of 2021 was 5.2%, versus 6.3% as at end of 2020. However, average rental dipped from HK$120 psf to HK$117 psf over the same period.
In Singapore, however, Hongkong Land enjoyed higher rental reversions of $10.3 psf in 2021 verus $9.9 psf for 2020. However, on a committed basis, its vacancy here was 2.9% for 2021 versus 2.1% at end of 2020.
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Hongkong Land shares closed on March 3 at US$5.40, up 0.75% for the day and up 2.66% year to date.
Photo: Red John / Unsplash
