SINGAPORE (March 2): Hongkong Land, a member of the Jardine Matheson group, reported a 66% rise in FY16 earnings to $3.3 billion from a year ago.
This was due to higher net non-trading gains of US$2.5 billion recorded on the revaluation of the group’s investment property.
Excluding net non-trading gains, underlying profit attributable to shareholders fell 6% to US$848 million.
According to Hongkong Land, results from the group’s commercial portfolio continued to be strong due to largely positive rental reversions in Hong Kong and higher occupancy in both Hong Kong and Singapore.
In FY16, revenue rose to $1.99 billion from $1.93 billion a year ago.
The group’s average office rent in Hong Kong increased to HK$103 psf from HK$101 psf in 2015. The value of the group’s commercial portfolio in Hong Kong also in creased by 12% when compared to the prior year, due to office capitalisation rates compressing on strong investment demand and rental growth.
In Singapore, vacancy in the group’s office portfolio reduced to 0.1% to 3.0% at the end of 2015 as previously committed space was taken up during the year. Average rent decreased slightly to $9.30 psf, compared to $9.50 psf in 2015.
In its outlook, Hongkong Land expects stable performance from its commercial property portfolio in 2017 while the group’s residential business expects higher contribution from mainland China to be offset by lower profits from Singapore.
Hongkong Land has declared a final dividend of 13 US cents.
Shares of Hongkong Land closed 6 cents lower at US$7.02 on Thursday.
