Hongkong Land Holdings, a member of the Jardine Matheson Group, says it continues to operate in a challenging environment due to the Covid-19 outbreak, and that it will have a negative impact on its full-year underlying performance.
In its interim management statement for the 1QFY2021, the group adds that its balance sheet remains “strong and well-financed”.
The group’s Investment Properties portfolio remains resilient during the 1QFY2021 due to its high-quality tenant base and active lease management.
Its Development Properties business benefitted from improving market conditions in China and Singapore.
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Rental reversions in its Hong Kong Central office portfolio were negative, although its committed vacancy improved 0.9 percentage points q-o-q to 6.8% as at March 31.
The group’s Central retail portfolio benefitted from marginally better trading conditions in the 1QFY2021, though base rental reversions were negative. Committed vacancy stood 0.1 percentage point higher q-o-q at 0.4% as at March 31.
The group’s Singapore office portfolio saw “mildly negative” rental reversions for the 1QFY2021, and are expected to turn positive before the end of June. Committed vacancy increased 0.9 percentage points q-o-q to 3.0% as at March 31.
In Beijing, first quarter tenant sales at WF CENTRAL performed better y-o-y. Its trading performance continued to benefit from the strength of luxury retail sentiment in China.
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In Development Properties, Hongkong Land’s attributable interest in contracted sales in China improved nearly four times y-o-y to US$410 million ($547.3 million) in the 1QFY2021 from US$107 million due to the pandemic-related suspensions of sales and development activities in 1QFY2020.
In Singapore, the group’s attributable interest in contracted sales fell 47.6% y-o-y to US$89 million due to the timing of sales launches, amid improved buyer sentiment.
Shares in Hongkong Land closed 1 US cent lower or 0.2% down at US$4.84 on May 5.
