Hongkong Land Holdings is in the red again - as it booked more revaluation losses on its properties.
For 1HFY2021 ended June 30, the landlord reported losses of US$865 million, down from US$1.83 billion in the year earlier.
It booked revaluation losses of some US$1.26 billion, versus US$1.83 billion booked in the same period last year.
As such, underlying profit attributable to shareholders during the first half was US$394 million, compared with US$353 million in the equivalent period in 2020.
Revenue in the same period was US$885.8 million, versus US$820.2 million.
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According to Hongkong Land, its office portfolio had a vacancy rate of 6.4% as of end June, versus 6.3% at end of 2020. It enjoyed a negative office rental reversion with an average rate of HK$118 psf in the first half of this year, versus HK$119 for the second half of 2020.
“New office leasing activity saw a modest increase in the period as a result of improved sentiment and a narrowing rental gap between Central and other parts of the city,” the company notes.
As for its retail properties, including those in Hong Kong’s prime Central district, there was a “modest recovery” in the luxury segment which benefited business of the retailers. However, Hongkong Land’s vacancy rate as at end of June was 0.9%, versus 0.3% as at end of 2020.
It enjoyed an average rental rate of HK$180 psf for 1H2021 versus HK$177 for 2H2020.
“Base retail rental reversions were negative in the period and the Group continued to provide temporary rent relief on a case-by-case basis,” the company notes.
Its Singapore office portfolio, meanwhile, suffered a big drop in vacancy rate. As at end June, it was 7.5%, from just 2.1% as at end of 2020. Yet, average rental was $10.20 psf, versus $9.9 throughout whole of 2020.
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The property firm is keeping its interim dividend at 6 US cents per share – same as last year.
As at June 30 2021, its book value was US$14.75 per share, down from US$15.30 as at June 2020.
Hongkong Land closed July 29 at US$4.57, down 0.87%.
