Lifted by divestments and fair value gains, Hongkong Land Holdings has reported earnings of US$1.26 billion for FY2025, a swing from a net loss of US$1.39 million in FY2024.
Underlying profit attributable to shareholders, a measurement that is deemed a more accurate report of its ongoing business, is down 8% y-o-y to US$458 million.
Hongkong Land plans to final dividend of 19 US cents per share, which will bring its total FY2025 payout to 25 US cents, an increase of 9%. It maintains its longer-term goal of paying 44 US cents by 2035.
Besides paying out higher dividends, the company has bought back some US$330 milliion worth of shares since last April, reducing the share base by 2.4%.
Its net asset value per share, which has been on a down trend, increased by 5% to US$14.30 per share in FY2025.
Since October 2024, when Hongkong Land embarks on its active capital recycling plan, it has divested some US$3.6 billion worth of assets, or 90% of the 2027 target.
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Assets sold include MCL Land, its Singapore-based property developer.
Hongkong Land's operations were a mixed picture. Its underlying profits dip because of its weaker Hong Kong Central portfolio.
Rental reversions for Hong Kong office were negative during the year, although leasing sentiment saw steady improvement on the back of a recovery in capital market activity.
The company's Hong Kong retail portfolio saw temporary impact to its rental income because of ongoing asset enhancements.
Its Singapore office did well though, driven by effectively full occupancy and positive reversions.
CEO Michael Smith calls 2025 a landmark year for the company, with "significant progress" on the initial phases of execution of its new strategy of portfolio recycling, which includes the setting up of its inaugural private real estate fund.
Hongkong Land continues with its winding down of its build-to-sell business and took impairment on its inventory in mainland China.
"We expect underlying results to remain largely unchanged in 2026, with future growth to come from improved market sentiment in Hong Kong, a growing Chinese mainland portfolio and the Singapore fund management business," says Smith.
Hongkong Land shares closed at US$8.15 on March 5, up 2.52% for the day and 80.31% in the past year.
