SINGAPORE (Aug 3): Hongkong Land, a member of the Jardine Group of companies, reported earnings for the 1H17 ended June more than doubled to US$3.1 billion ($4.2 billion) from US$1.3 billion, thanks to a net gain of US$2.6 billion arising on the revaluation of the group’s investment properties.
During the first half of the year, the group’s underlying profit attributable to shareholders was US$517 million, compared with US$393 million a year ago.
The group’s investment properties produced higher contribution due to higher average rents achieved in Hong Kong while Of the higher sales completions of the group’s development properties -- both residential and mixed-use projects -- led to increased profits in both mainland China and Singapore.
In Hong Kong, office rental reversions were positive as market supply remained tight. Vacancy in the group’s Central office portfolio at June 30 was 1.5%, compared with 2.2% at the end of 2016 and 3.1% at end of last June. The group’s average office rent rose to HK$106 psf ($18.4 psf), compared to HK$103 psf in both the first and second halves of 2016.
In Singapore, the average office rent decreased slightly to $9.1 psf, compared with $9.4 psf and $9.2 psf in the first and second halves of 2016, respectively.
In its outlook, the property group says the construction and leasing of the group’s luxury retail and hotel complex in Beijing, WF CENTRAL in Wangfujing, is progressing well, with the retail component scheduled to open in late 2017 and the 74-room Mandarin Oriental hotel in 2018.
In Jakarta, the 73,000 sqm fifth tower at Jakarta Land, the group’s 50%-owned joint venture, is due to complete in early 2018. In Cambodia, space in the group’s 26,000 sqm prime mixed-use complex is being progressively taken up by tenants.
An interim dividend of 6 US cents per share has been declared.
Year to date, shares in Hongkong Land have risen 19.6% to end at US$7.57 on Wednesday.
