Hongkong Land has reported a higher underlying profit for the 3QFY2024 ended September, as compared to the same period last year. This was due to more build-to-sell completions on the Chinese mainland.
Meanwhile, total contributions from investment properties saw a slight drop in 3QFY2024, following lower contributions from the group’s Hong Kong CENTRAL portfolio. This was partially offset by cost management measures, says the group.
In the group’s investment property segment, Hongkong Land’s central office portfolio vacancy stood at 7.6%, compared to 12.2% for the overall central district grade A office market. Physcial vacancy stood at 9.0%, following the timing of planned tenant movements.
Rental reversions remained negative during the period, despite a slight increase in office enquiries.
In Singapore, the group’s office portfolio remained fully occupied, with positive rental reversions during the period. The group adds that leasing momentum remained “resilient” amid an uncertain business environment, driven by flight-to-quality demand.
As at Sept 30, physical vacancy stood at 1.5%, down from 2.6% as at end-June. On a committed basis, vacancy stood at 1.3%.
See also: Kimly reports higher FY2024 revenue but earnings down on higher depreciation and other costs
For its Singapore portfolio, the group’s attributable interest in contracted sales was at US$60 million ($80.8 million) for the period.
For the period, the group’s net debt saw a decrease to US$5.3 billion from US$5.4 billion as at end-June, with a gearing of 17%. Committed liquidity stood at US$3.2 billion, compared to US$3.0 billion at the end-June.
In October, the group announced a new strategic direction to become a leading real estate business in Asia’s gateway cities, focussed on ultra-premium integrated commercial properties.
See also: LHN reports higher FY2024 earnings on fair value gains and better operations (update)
The group adds: “Our priority is to simplify the business with a focus on Investment Properties, generating growth in long-term recurring income. As a result, we will no longer invest in the build-to-sell segment, but will instead actively recycle capital out from this business segment.”
Shares in Hongkong Land closed 16 US cents higher, or up 3.64%, at US$4.56 on Nov 14.
