REG - Hongkong Land Hldgs Jardine Matheson Hdg - Half-year Results
29/07/2025 11:15
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RNS Number : 0127T Hongkong Land Hldgs Ltd 29 July 2025
Announcement
29 July 2025
The following announcement was issued today to a Regulatory Information
Service approved by the Financial Conduct Authority in the United Kingdom.
HONGKONG LAND HOLDINGS LIMITED
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025
Highlights
• Underlying profit, excluding China provisions, up 11% to US$320 million
• Contributions from Hong Kong declined due to lower office rents and
ongoing LANDMARK renovations
• Capital recycled reached US$1.3 billion, including landmark transaction
with the HKEX, achieving 33% of 2027 target
• NAV per share higher for first time since 2018 on stable Hong Kong Prime
Properties valuations and share buyback
• Group financial position strong, with net debt declining by US$0.2
billion
• Interim dividend stable at US¢6.00 per share
"The Group delivered a higher underlying profit in the first half of 2025,
although trading in the remainder of the year will continue to be impacted by
lower Hong Kong office contributions and ongoing renovations at the LANDMARK.
While geopolitical uncertainties are likely to persist for the remainder of
the year, the Group remains firmly committed to delivering its Strategic
Vision 2035. Capital recycling continues to be prioritised to reduce net
debt and increase investment capacity, with a number of significant
initiatives currently under way. The Group is also focused on the successful
execution of its portfolio anchor projects in Hong Kong (Tomorrow's CENTRAL)
and Shanghai (Westbund Central)."
Michael Smith
Chief Executive
Results
(unaudited)
Six months ended 30 June
2025 2024 Change
US$m US$m %
Underlying profit/(loss) attributable to shareholders(#) 297 (7) N/A
Underlying profit excl. Chinese mainland non-cash 320 288 +11
provisions^
Profit/(loss) attributable to shareholders 221 (833) N/A
Shareholders' funds 29,727 29,940* -1
Net debt 4,920 5,088* -3
US¢ US¢ %
Underlying earnings/(loss) per share(#) 13.51 (0.31) N/A
Underlying earnings per share excl. Chinese 14.56 13.04 +12
mainland non-cash provisions^
Earnings/(loss) per share 10.04 (37.75) N/A
Interim dividend per share 6.00 6.00 -
US$ US$ %
Net asset value per share 13.62 13.57* -
# The Group uses 'underlying profit attributable to shareholders' in its
internal financial reporting to distinguish between ongoing business
performance and non-trading items, as more fully described in note 8 to the
condensed financial statements. Management considers this to be a key
measure which provides additional information to enhance understanding of the
Group's underlying business performance.
* At 31 December 2024.
^ Excludes net provisions for the Chinese mainland build-to-sell segment.
The interim dividend of US¢6.00 per share will be payable on 15 October 2025
to shareholders on the registers of members at the close of business on 22
August 2025.
CHIEF EXECUTIVE'S REVIEW
STRATEGY IN ACTION
Hongkong Land continues to make good progress in delivering on the initial
phase of its Strategic Vision 2035, which was announced late last year.
The new strategy refocuses our growth in ultra-premium integrated commercial
assets in Asia's gateway cities, including investing in existing markets, as
well as seeking out new opportunities in other regional gateway cities. To
fund future growth, we have set an initial capital recycling target of at
least US$4 billion by the end of 2027, primarily from the sale of existing
inventory from the build-to-sell segment, the divestment of non-core
commercial assets, and the recycling of mature prime property assets,
including through third-party capital vehicles.
As at 30 June 2025, the Group had secured 33% of its US$4 billion capital
recycling target, including the announced sale of certain office floors and
selected retail space in One Exchange Square to the Hong Kong Stock Exchange
for HK$6.3 billion (US$810 million).
The Group also commenced a US$200 million share buyback programme, of which
67% had been invested up to 28 July 2025.
A new Investment Management team was established in the first half of the
year, with a number of initiatives under way, focusing on capital recycling,
new investments and third-party capital fund-raising.
Separately, the Group has embarked on transitioning its Chinese mainland
business towards a more centralised governance model, proactively right-sizing
the business for its strategic pivot towards ultra-premium integrated
commercial assets, as well as streamlining decision-making to accelerate
capital recycling from build-to-sell ('BTS') assets.
BUSINESS AND FINANCIAL PERFORMANCE
The Group's portfolio of Prime Properties Investments delivered a respectable
performance in the first half of the year. Operating profits from the segment
were 12% lower than the first half of 2024, due to lower Hong Kong office
rents and temporary impacts on retail from the Tomorrow's CENTRAL
transformation works.
Contributions from the BTS segment increased significantly in the period.
Excluding the impact of provisions, operating profits were 1.5 times higher
than the prior year, primarily due to higher contributions from projects in
Singapore.
Financial Performance
Underlying profit attributable to shareholders was US$297 million, while
underlying earnings per share were US¢13.51.
Excluding the impact of provisions in the Chinese mainland BTS business,
underlying profit was US$320 million, compared to US$288 million in the first
half of 2024, representing growth of 11%. Earnings per share increased to
US¢14.56, up 12% compared to the same period last year.
As at 30 June 2025, the valuation of the Group's portfolio of investment
properties was broadly unchanged from 31 December 2024. In Hong Kong, the
Central portfolio valuation stabilised for the first time since prime office
and retail market rents began to decline in 2019. Including net non-cash
valuation movements, profit attributable to shareholders was US$221 million in
the first half of 2025, compared to a loss of US$833 million in the first half
of 2024.
Net asset value per share at 30 June 2025 was US$13.62, compared with US$13.57
at the end of 2024. Net debt at 30 June 2025 was US$4.9 billion, a decrease
from US$5.1 billion at the end of 2024. Net gearing was 17%.
As at 30 June 2025, the Group had undrawn committed facilities and cash of
US$3.1 billion, with an average debt tenor of 5.9 years. 70% of the Group's
interest rate on debt is at fixed rates.
The Directors are recommending an interim dividend of US¢6.00 per share,
unchanged from the interim dividend in the prior year.
Prime Properties Investment
Hong Kong
In Hong Kong, the Group's Central office portfolio experienced a healthy
increase in enquiries in the first half of 2025, driven by improvements in
capital market sentiment and the Initial Public Offering pipeline, as well as
a flight to quality. Vacancies on a committed basis declined to 6.9% at the
end of June 2025, compared to 7.1% at the end of 2024. This compares
favourably to 11.8% vacancy in the wider Central Grade A office market.
Physical vacancy for the Group's portfolio stood at 7.5%. Negative rental
reversions resulted in average office rents decreasing to HK$95 per sq. ft.,
compared to HK$103 per sq. ft. for the same period last year.
Contributions from LANDMARK temporarily declined due to planned retail tenant
movements from the ongoing transformation works, with 33% of lettable space
currently under renovation. While tenant sales saw mild declines compared to
the same period last year, the ultra-high net worth segment remained
resilient, with top-tier customer spending increasing by 8%. Average retail
rents were HK$220 per sq. ft., compared with HK$206 per sq. ft. for the same
period last year.
Singapore
In Singapore, the Group's office portfolio continued to perform well and was
effectively fully let, with vacancy across the portfolio of 2.0% at the end of
June 2025. On a committed basis, vacancy was 1.2%. Rental reversions were
positive, with average rents increasing to S$11.4 per sq. ft., compared to
S$11.1 per sq. ft. for the same period last year.
Chinese mainland & Macau
Results from the Group's CENTRAL series luxury retail malls business in China
declined compared to the same period last year, primarily due to lower rental
contributions from Macau where market-wide retail sales were below historical
levels.
Build-to-sell
The Group will no longer deploy capital into new standalone BTS projects and
is focused on winding down its existing inventory. The Group's net investment
in this segment was US$7.3 billion, a decrease of US$0.5 billion from the end
of 2024. During the period, US$0.2 billion in net cash proceeds were recycled
out of the BTS segment.
Chinese mainland
Excluding non-cash provisions, contributions from property sales on the
Chinese mainland were higher than in the same period last year due to timing
of project completions. Sales momentum across the Group's projects was below
expectations, despite extensive government stimulus measures.
The Group's attributable interest in contracted sales was US$362 million,
compared to US$838 million and US$505 million in the first and second halves
of 2024, respectively. At 30 June 2025, the Group had US$1,009 million in sold
but unrecognised contracted sales, compared with US$1,112 million at the end
of 2024.
In the first half of 2025, US$23 million of non-cash provisions were taken in
respect of projects in Wuhan where sales prices were reduced. This compares to
US$295 million of provisions in same period last year following an extensive
review of all China inventory.
Singapore
In Singapore, the profit contribution from residential development projects
was higher compared to the same period in 2024, primarily due to the
completion of a large project which was fully sold. The Group's attributable
interest in contracted sales was US$394 million, compared to US$25 million and
US$435 million in the first and second halves of 2024, respectively.
In the rest of South East Asia, contributions were stable despite the soft
market conditions.
DEVELOPMENT PROGRESS
In Hong Kong, the Group's Tomorrow's CENTRAL transformation is well underway.
Two new luxury retail flagship Maisons, along with several other new brands
and concepts, are expected to open in the second half of 2025, providing a
glimpse of the new LANDMARK and what we believe is the future of luxury
retail.
In Shanghai, the latest phase of our flagship West Bund project is expected to
be completed and launched in stages starting from the second half of 2025.
Building on the momentum from the successful launch of the first phase of the
West Bund Central Residences comprising 183 units, which achieved occupancy of
over 90%, an additional 176 rental apartments will gradually open towards the
end of 2025. In addition, four office buildings with a total GFA of 78,000
sq. m. are being progressively handed over to tenants. Pre-leasing is in
progress for a further 27,000 sq. m. GFA of retail space, focusing on
contemporary fashion and lifestyle offerings.
Separately, the Group continues to progress on its retail-led mixed-use
portfolio pipeline, including three CENTRAL series luxury flagships and
several lifestyle-focused projects from which capital will be recycled, as the
trading performance of the assets stabilises. In April, the Group's
50%-owned retail-led mixed-use development in Nanjing, JLC had its soft
opening, with retail pre-leasing commitments exceeding 80%.
OUTLOOK
While geopolitical uncertainties are likely to persist for the remainder of
the year, the Group remains firmly committed to delivering its Strategic
Vision 2035. Capital recycling continues to be prioritised to reduce net debt
and increase investment capacity, with a number of significant initiatives
currently under way. The Group is also focused on the successful execution of
its portfolio anchor projects in Hong Kong (Tomorrow's CENTRAL) and Shanghai
(Westbund Central).
In the second half of the year, the Group's prime office portfolios are
expected to continue to benefit from flight-to-quality trends, with market
leading occupancy levels. In Hong Kong, there are early signs of stabilisation
of prime office rents in core Central, with positive absorption in the first
half of the year. Rental reversions for the remainder of the year are,
however, expected to remain negative. In Singapore, new prime office supply is
limited, and occupier demand remains robust, supporting positive rental
reversions.
For retail, the LANDMARK will continue to be impacted by ongoing renovations
in the second half of the year, although this is expected to be partially
offset by scheduled re-openings in Q4 2025.
On the Chinese mainland, pre-opening costs relating to the development of West
Bund and other prime projects are expected to be higher, as leasing and
marketing activities intensify ahead of planned openings over the next several
years.
The outlook for the BTS segment is expected to remain challenging with weak
sales levels across most cities on the Chinese mainland. Stimulus measures
have had a limited impact on improving broader market sentiment outside of
Tier 1 cities. Profit contribution is likely to be substantially lower in the
second half of 2025 due to lower profit margins on completed projects.
Overall, we continue to expect full-year underlying profits to be higher, as
2024 results were negatively impacted by non-recurring provisions. However,
full-year trading performance, excluding provisions, are expected to be lower
than the prior year.
Michael Smith
Chief Executive
Hongkong Land Holdings Limited
Consolidated Profit and Loss Account
for the six months ended 30 June 2025
(unaudited)
Six months ended 30 June Year ended 31 December
2025 2024 2024
Underlying Non- Total Underlying Non- Total Underlying Non-
business trading US$m business trading US$m business trading
performance items performance items performance items Total
US$m US$m US$m US$m US$m US$m US$m
Revenue (note 3) 751.2 - 751.2 972.4 - 972.4 2,002.1 - 2,002.1
Net operating costs (452.4) (8.7) (461.1) (758.3) - (758.3) (1,417.9) (8.3) (1,426.2)
(note 4)
Change in fair value of investment properties - (65.9) (65.9) - (864.6) (864.6) - (1,887.6) (1,887.6)
(note 8)
Operating profit/(loss) 298.8 (74.6) 224.2 214.1 (864.6) (650.5) 584.2 (1,895.9) (1,311.7)
(note 5)
Net financing charges
- financing charges (110.3) - (110.3) (123.1) - (123.1) (245.0) - (245.0)
- financing income 29.2 - 29.2 41.6 - 41.6 78.8 - 78.8
(81.1) - (81.1) (81.5) - (81.5) (166.2) - (166.2)
Share of results of associates and joint ventures 133.3 (2.1) 131.2 (78.1) 54.7 (23.4) 115.0 139.2 254.2
(note 6)
Profit/(loss) 351.0 (76.7) 274.3 54.5 (809.9) (755.4) 533.0 (1,756.7) (1,223.7)
before tax
Tax (note 7) (52.3) 0.3 (52.0) (60.2) (12.0) (72.2) (120.7) (31.4) (152.1)
Profit/(loss) after tax 298.7 (76.4) 222.3 (5.7) (821.9) (827.6) 412.3 (1,788.1) (1,375.8)
Attributable to:
Shareholders of 297.2 (76.3) 220.9 (6.9) (826.1) (833.0) 409.6 (1,794.5) (1,384.9)
the Company
(note 9)
Non-controlling interests 1.5 (0.1) 1.4 1.2 4.2 5.4 2.7 6.4 9.1
298.7 (76.4) 222.3 (5.7) (821.9) (827.6) 412.3 (1,788.1) (1,375.8)
US¢ US¢ US¢ US¢ US¢ US¢
Earnings/(loss) per
share (note 9)
- basic 13.51 10.04 (0.31) (37.75) 18.56 (62.76)
- diluted 13.48 10.02 (0.31) (37.75) 18.55 (62.76)
Hongkong Land Holdings Limited
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2025
(unaudited) Year ended
Six months ended 31
30 June December
2025 2024 2024
US$m US$m US$m
Profit/(loss) for the period 222.3 (827.6) (1,375.8)
Other comprehensive income/(expense)
Items that will not be reclassified to
profit or loss:
Remeasurements of defined benefit
plans - - 0.3
Items that may be reclassified
subsequently to profit or loss:
Net exchange translation differences
- net (loss)/gain arising during the period (120.1) (54.2) 75.2
- transfer to profit and loss 0.5 - 3.2
(119.6) (54.2) 78.4
Cash flow hedges
- net (loss)/gain arising during the period (31.4) 9.6 12.2
- transfer to profit and loss (1.4) (2.7) (3.2)
(32.8) 6.9 9.0
Tax relating to items that may be
reclassified 5.4 (1.1) (1.5)
Share of other comprehensive income/
(expense) of associates and joint
ventures 215.3 (229.3) (246.3)
68.3 (277.7) (160.4)
Other comprehensive income/(expense)
for the period, net of tax 68.3 (277.7) (160.1)
Total comprehensive income/(expense)
for the period 290.6 (1,105.3) (1,535.9)
Attributable to:
Shareholders of the Company 287.0 (1,108.8) (1,542.4)
Non-controlling interests 3.6 3.5 6.5
290.6 (1,105.3) (1,535.9)
Hongkong Land Holdings Limited
Consolidated Balance Sheet
at 30 June 2025
2025 (unaudited) At 31
US$m At 30 June 2024 December 2024
US$m US$m
Net operating assets
Fixed assets 200.2 93.8 203.2
Right-of-use assets 103.3 11.0 104.4
Investment properties (note 11) 23,818.9 25,844.8 24,759.9
Associates and joint ventures 10,207.1 10,224.1 10,046.2
(note 12)
Non-current debtors 11.6 14.1 11.5
Deferred tax assets 57.3 70.4 53.5
Pension assets 1.0 1.0 0.9
Non-current assets 34,399.4 36,259.2 35,179.6
Properties for sale 2,194.2 2,422.1 2,359.7
Current debtors 332.3 336.9 349.0
Current tax assets 49.3 48.2 36.4
Bank balances 1,106.3 1,068.9 1,073.4
Assets classified as held for sale 578.3 - 54.3
(note 13)
Current assets 4,260.4 3,876.1 3,872.8
Current creditors (1,358.4) (1,929.1) (1,642.4)
Current borrowings (note 14) (962.3) (677.5) (823.7)
Current tax liabilities (127.2) (132.0) (110.4)
Current liabilities (2,447.9) (2,738.6) (2,576.5)
Net current assets 1,812.5 1,137.5 1,296.3
Long-term borrowings (note 14) (5,067.9) (5,747.9) (5,341.6)
Deferred tax liabilities (252.9) (229.6) (249.9)
Pension liabilities (0.3) (0.5) -
Non-current creditors (1,131.5) (889.8) (915.9)
29,759.3 30,528.9 29,968.5
Total equity
Share capital 218.7 220.7 220.7
Revenue and other reserves 29,508.6 30,282.8 29,719.4
Shareholders' funds 29,727.3 30,503.5 29,940.1
Non-controlling interests 32.0 25.4 28.4
29,759.3 30,528.9 29,968.5
Hongkong Land Holdings Limited
Consolidated Statement of Changes in Equity
for the six months ended 30 June 2025
Share Capital reserves US$m Revenue Hedging Exchange Attributable to Attributable to non-controlling interests Total equity US$m
capital reserves reserves reserves shareholders of the Company US$m US$m
US$m US$m US$m US$m
Six months ended
30 June 2025
(unaudited)
At 1 January 2025 220.7 1.4 30,430.6 (57.8) (654.8) 29,940.1 28.4 29,968.5
Total comprehensive income/(expense) - - 220.9 (41.6) 107.7 287.0 3.6 290.6
Dividends paid by the Company (note 10) - - (375.0) - - (375.0) - (375.0)
Share-based incentives - 2.1 - - - 2.1 - 2.1
Shares purchased for share-based incentives - - (22.1) - - (22.1) - (22.1)
Repurchase of shares (2.0) - (102.8) - - (104.8) - (104.8)
Transfer - (0.9) 0.9 - - - - -
At 30 June 2025 218.7 2.6 30,152.5 (99.4) (547.1) 29,727.3 32.0 29,759.3
Six months ended
30 June 2024
(unaudited)
At 1 January 2024 220.7 - 32,299.5 (57.7) (497.1) 31,965.4 21.9 31,987.3
Total comprehensive (expense)/income - - (833.0) 8.1 (283.9) (1,108.8) 3.5 (1,105.3)
Dividends paid by the Company (note 10) - - (353.1) - - (353.1) - (353.1)
At 30 June 2024 220.7 - 31,113.4 (49.6) (781.0) 30,503.5 25.4 30,528.9
Year ended 31 December 2024
At 1 January 2024 220.7 - 32,299.5 (57.7) (497.1) 31,965.4 21.9 31,987.3
Total comprehensive (expense)/income - - (1,384.6) (0.1) (157.7) (1,542.4) 6.5 (1,535.9)
Dividends paid by the Company - - (485.5) - - (485.5) - (485.5)
Share-based incentives - 1.4 - - - 1.4 - 1.4
Unclaimed dividends forfeited - - 1.2 - - 1.2 - 1.2
At 31 December 2024 220.7 1.4 30,430.6 (57.8) (654.8) 29,940.1 28.4 29,968.5
Hongkong Land Holdings Limited
Consolidated Cash Flow Statement
for the six months ended 30 June 2025
(unaudited) Year ended
Six months ended 30 June 31 December
2025 2024 2024
US$m US$m US$m
Operating activities
Operating profit/(loss) 224.2 (650.5) (1,311.7)
Depreciation 7.2 6.3 12.7
Change in fair value of investment properties 65.9 864.6 1,887.6
Net gain on disposal of joint ventures (1.7) - (9.6)
Loss on disposal of investment properties 5.0 - 10.3
Exchange reserve loss realised on distribution - - 7.6
Loss on measurement of the disposal group 0.3 - 13.5
Decrease in properties for sale 209.6 437.0 752.1
Decrease in debtors 24.8 65.7 86.7
Decrease in creditors (195.5) (254.5) (547.9)
Interest received 22.6 31.4 65.3
Interest and other financing charges paid (109.0) (119.9) (245.8)
Tax paid (45.0) (92.5) (147.3)
Dividends from associates and joint ventures 59.4 32.1 97.1
Cash flows from operating activities 267.8 319.7 670.6
Investing activities
Major renovations expenditure (60.8) (36.9) (78.5)
Repayments from associates and joint ventures 204.8 88.5 259.2
Investments in associates and joint ventures (10.9) (0.7) (16.9)
Advances to associates and joint ventures (16.5) (66.9) (111.5)
Purchase of a subsidiary - - 13.8
Sale of a joint venture 2.2 - -
Proceeds and deposits of sale of investment
properties 293.0 - 15.5
Cash flows from investing activities 411.8 (16.0) 81.6
Financing activities
Drawdown of borrowings 365.8 1,245.6 2,371.0
Repayment of borrowings (538.4) (1,320.7) (2,737.3)
Repayments to associates and joint ventures (15.6) (2.5) (26.6)
Advances from associates and joint ventures 35.2 68.2 95.5
Principal elements of lease payments (1.2) (1.2) (2.7)
Dividends paid by the Company (371.8) (346.2) (478.2)
Purchase of shares for share-based incentives (22.1) - -
Repurchase of shares (103.4) - -
Cash flows from financing activities (651.5) (356.8) (778.3)
Net cash inflow/(outflow) 28.1 (53.1) (26.1)
Cash and cash equivalents at beginning of period 1,067.2 1,112.2 1,112.2
Effect of exchange rate changes 13.2 (18.1) (18.9)
Cash and cash equivalents at end of period 1,108.5 1,041.0 1,067.2
Hongkong Land Holdings Limited
Notes to Condensed Financial Statements
1. ACCOUNTING POLICIES AND BASIS OF PREPARATION
The condensed financial statements have been prepared in accordance with IAS
34 'Interim Financial Reporting' and on a going concern basis. The condensed
financial statements have not been audited or reviewed by the Group's
auditors.
There are no changes to the accounting policies as described in the 2024
annual financial statements. A number of amendments issued by the
International Accounting Standards Board were effective from 1 January 2025
and do not have significant impact on the Group's results, financial position
and accounting policies.
The Group has not early adopted any standards, interpretations or amendments
that have been issued but not yet effective.
2. SEGMENTAL INFORMATION
Six months ended 30 June
2025 Prime Properties Investment US$m Corporate Total Excluding Build-to-sell Total
US$m US$m Build-to- US$m
sell
US$m
Underlying operating profit 425.0 (44.0) 381.0 135.3 516.3
Net financing charges (86.4) (18.6) (105.0) (16.2) (121.2)
Tax (55.5) 6.5 (49.0) (47.5) (96.5)
Non-controlling interests - (1.5) 0.1 (1.4)
(1.5)
Underlying profit attributable to shareholders 281.6 (56.1) 225.5 71.7 297.2
Non-trading items (72.6) - (72.6) (3.7) (76.3)
Profit attributable to shareholders 209.0 (56.1) 152.9 68.0 220.9
2024
Underlying operating profit 482.4 (40.6) 441.8 (260.0) 181.8
Net financing charges (96.2) (24.8) (121.0) (10.9) (131.9)
Tax (63.0) 6.0 (57.0) 1.4 (55.6)
Non-controlling interests (1.2) - (1.2) - (1.2)
Underlying loss attributable 322.0 (59.4) 262.6 (269.5) (6.9)
to shareholders
Non-trading items (826.1) - (826.1) - (826.1)
Loss attributable to shareholders (504.1) (59.4) (563.5) (269.5) (833.0)
3. REVENUE
Six months ended 30 June
2025 2024
US$m US$m
Rental income 415.0 451.4
Service income and others
- recognised at a point in time 15.2 18.5
- recognised over time 86.7 88.7
101.9 107.2
Sales of properties
- recognised at a point in time 222.0 408.9
- recognised over time 12.3 4.9
234.3 413.8
751.2 972.4
By business
Prime Properties Investment 472.6 526.9
Build-to-sell 278.6 445.5
751.2 972.4
4. NET OPERATING COSTS
Six months ended 30 June
2025 2024
US$m US$m
Cost of sales (365.7) (679.8)
Other income 13.4 22.1
Administrative expenses (103.8) (100.6)
Loss on disposal of investment properties (5.0) -
(461.1) (758.3)
Cost of sales included a US$23.2 million provision on the Chinese mainland
properties for sale (2024: US$147.5 million) arising from a deterioration in
market conditions that resulted in projected sales prices being lower than
development cost. No corresponding deferred tax credit (2024: US$4.7 million)
was recognised.
5. OPERATING PROFIT/(LOSS)
Six months ended 30 June
2025 2024
US$m US$m
By business
Prime Properties Investment 349.2 406.4
Build-to-sell (6.4) (151.7)
Corporate (44.0) (40.6)
Underlying business performance 298.8 214.1
Change in fair value of investment properties (65.9) (864.6)
Others (8.7) -
224.2 (650.5)
6. SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
Six months ended 30 June
2025 2024
US$m US$m
By business
Prime Properties Investment
- operating profit 75.8 76.0
- net financing charges (20.1) (26.7)
- tax (9.2) (8.1)
- net profit 46.5 41.2
Build-to-sell
- operating profit/(loss) 141.7 (108.3)
- net financing charges (20.0) (23.7)
- tax (35.0) 12.7
- non-controlling interests 0.1 -
- net profit/(loss) 86.8 (119.3)
Underlying business performance 133.3 (78.1)
Change in fair value of investment properties
(net of tax) (2.1) 54.7
131.2 (23.4)
In 2024, the Build-to-sell business included a US$151.8 million net provision
after including a deferred tax credit. This arose due to a deterioration in
market conditions that resulted in projected sales prices being lower than
development cost. No corresponding net provision was recognised in 2025.
7. TAX
Six months ended 30 June
2025 2024
US$m US$m
Tax charged to profit and loss is analysed as follows:
Current tax (48.6) (49.3)
Deferred tax
- changes in fair value of investment properties 0.3 (12.0)
- other temporary differences (3.7) (10.9)
(52.0) (72.2)
Tax relating to components of other comprehensive income or expense is
analysed as follows:
Cash flow hedges 5.4 (1.1)
Tax on profits has been calculated at the rates of taxation prevailing in the
territories in which the Group operates.
The Group is within the scope of the OECD Pillar Two model rules, and has
applied the exception to recognising and disclosing information about deferred
tax assets and liabilities relating to Pillar Two income taxes. Pillar Two
legislation has been enacted or substantially enacted in certain jurisdictions
in which the Group operates. The Group has assessed that the income tax
expense related to Pillar Two income taxes in the relevant jurisdictions for
the interim period is immaterial.
Share of tax charge of associates and joint ventures of US$43.6 million (2024:
US$1.5 million tax credit) is included in share of results of associates and
joint ventures.
8. NON-TRADING ITEMS
Non-trading items are separately identified to provide greater understanding
of the Group's underlying business performance. Items classified as
non-trading items include fair value gains or losses on revaluation of
investment properties; gains and losses arising from the sale of businesses
and investment properties; impairment of non-depreciable intangible assets;
provisions for the closure of businesses; acquisition-related costs in
business combinations; and other credits and charges of a non-recurring nature
that require inclusion in order to provide additional insight into underlying
business performance.
An analysis of non-trading items after interest, tax and non-controlling
interests is set out below:
Six months ended 30 June
2025 2024
US$m US$m
Change in fair value of investment properties (65.9) (864.6)
Tax on change in fair value of investment properties 0.3 (12.0)
Loss on disposal of investment properties (5.0) -
Restructuring of business (3.7) -
Share of change in fair value of investment properties of
associates and joint ventures (net of tax) (2.1) 54.7
Non-controlling interests 0.1 (4.2)
(76.3) (826.1)
9. EARNINGS/(LOSS) PER SHARE
Basic earnings per share is calculated on profit attributable to shareholders
of US$220.9 million (2024: loss of US$833.0 million) and on the weighted
average number of 2,200.5 million (2024: 2,206.6 million) shares in issue
during the period.
Diluted earnings per share are calculated on profit attributable to
shareholders of US$220.9 million and on the weighted average number of 2,204.0
million shares in issue during the year. For 2024, the inclusion of dilutive
potential shares would be antidilutive and diluted earnings per share were the
same as basic earnings per share.
Additional basic and diluted earnings per share are calculated based on
underlying profit/(loss) attributable to shareholders. A reconciliation of
earnings is set out below:
Six months ended 30 June
2025 2024
US$m Basic earnings per share US¢ Diluted earnings Basic earnings per share US¢ Diluted earnings per share
per share US$m US¢
US¢
Underlying profit/(loss) attributable to shareholders 297.2 13.48 (6.9) (0.31) (0.31)
13.51
Non-trading items (note 8) (76.3) (826.1)
Profit/(loss) attributable to shareholders 220.9 10.02 (833.0) (37.75)
10.04 (37.75)
10. DIVIDENDS
Six months ended 30 June
2025 2024
US$m US$m
Final dividend in respect of 2024 of US¢17.00 375.0 353.1
(2023: US¢16.00) per share
An interim dividend in respect of 2025 of US¢6.00 (2024: US¢6.00) per share
amounting to a total of US$130.9 million (2024: US$132.4 million) is declared
by the Board and will be accounted for as an appropriation of revenue reserves
in the year ending 31 December 2025.
11. INVESTMENT PROPERTIES
Six months ended 30 June Year ended
31
December
2025 2024 2024
US$m US$m US$m
At beginning of period 24,759.9 26,687.2 26,687.2
Exchange differences (196.2) (20.1) 113.2
Additions 73.0 42.3 77.1
Disposal (229.5) - (12.7)
Transfer to fixed assets - - (111.7)
Transfer to right-of-use assets - - (94.2)
Decrease in fair value (65.9) (864.6) (1,887.6)
Classified as held for sale (522.4) - (11.4)
At end of period 23,818.9 25,844.8 24,759.9
12. ASSOCIATES AND JOINT VENTURES
At 30 June At 31
December
2025 2024 2024
US$m US$m US$m
By business
Prime Properties Investment 4,832.1 4,565.8 4,677.7
Build-to-sell 5,375.0 5,658.3 5,368.5
10,207.1 10,224.1 10,046.2
At 31 December 2024, to align with market practice, amounts due to associates
and joint ventures, which were previously reported net against Associates and
Joint ventures based on how these balances were intended to be settled, were
reclassified and presented within Creditors. Accordingly, the previously
reported balances at 30 June 2024 were also reclassified, resulting in an
increase in Current and Non-current creditors of US$506.5 million and US$829.0
million, respectively. The related cash flows for the six months ended 30 June
2024, previously classified under investing activities as repayments
from/advances to associates and joint ventures of US$68.2 million and US$2.5
million respectively, are now represented under financing activities.
13. ASSETS CLASSIFIED AS HELD FOR SALE
The major classes of assets classified as held for sale are set out below:
At 30 June At 31
December
2025 2024 2024
US$m US$m US$m
Investment properties 533.8 - 11.4
Joint ventures 27.0 - 26.1
Current assets* 17.5 - 16.8
578.3 - 54.3
In April 2025, the Group entered into sale and purchase agreements with Hong
Kong Exchanges and Clearing Limited for the sale of the Group's interest in
certain floors of One Exchange Square for a total cash consideration of
approximately US$810 million. The transaction will conclude in stages as
individual floors are handed over, with the full transaction expected to
conclude within 2026. US$293 million cash consideration was received in 1H
2025, with the remaining floors to be sold classified as held for sale at 30
June 2025.
* Included bank balances of US$3.5 million (31 December 2024: US$3.5 million)
14. BORROWINGS
At 30 June At 31 December
2025 2024 2024
US$m US$m US$m
Current
Bank overdrafts 0.2 0.6 0.2
Bank loans 249.2 45.5 6.4
Current portion of long-term borrowings
- bank loans 74.2 631.4 177.2
- medium term notes 638.7 - 639.9
962.3 677.5 823.7
Long-term
Bank loans 1,792.0 1,843.7 2,069.7
Medium term notes
- due 2025 - 640.5 -
- due 2026 223.7 221.0 220.5
- due 2027 185.4 186.2 187.3
- due 2028 181.7 182.6 183.7
- due 2029 120.7 121.3 122.0
- due 2030 698.9 698.9 699.8
- due 2031 569.9 569.8 570.5
- due 2032 139.5 140.1 141.0
- due 2033 524.5 524.9 525.8
- due 2034 114.6 115.1 115.8
- due 2035 252.6 253.7 255.2
- due 2038 115.9 108.7 108.7
- due 2039 116.8 109.5 109.5
- due 2040 31.7 31.9 32.1
3,275.9 3,904.2 3,271.9
5,067.9 5,747.9 5,341.6
6,030.2 6,425.4 6,165.3
15. FINANCIAL INSTRUMENTS
Financial instruments by category
The fair values of financial assets and financial liabilities, together with
carrying amounts at 30 June 2025 and 31 December 2024 are as follows:
Fair value of Financial Total Fair
hedging assets at amortised costs Other carrying amount value
instruments US$m financial liabilities US$m US$m
US$m US$m
30 June 2025
Financial assets measured at fair value
Derivative financial instruments 2.3 - - 2.3 2.3
Financial assets not measured at
fair value
Amounts due from associates and joint
ventures - 1,787.2 - 1,787.2 1,787.2
Debtors - 225.8 - 225.8 225.8
Bank balances - 1,106.3 - 1,106.3 1,106.3
- 3,119.3 - 3,119.3 3,119.3
Financial liabilities measured at
fair value
Derivative financial instruments (77.4) - - (77.4) (77.4)
Financial liabilities not measured at
fair value
Borrowings - - (6,030.2) (6,030.2) (5,932.1)
Creditors - - (2,341.7) (2,341.7) (2,341.7)
- - (8,371.9) (8,371.9) (8,273.8)
31 December 2024
Financial assets measured at fair value
Derivative financial instruments 0.2 - - 0.2 0.2
Financial assets not measured at
fair value
Amounts due from associates and
joint ventures - 1,915.3 - 1,915.3 1,915.3
Debtors - 235.9 - 235.9 235.9
Bank balances - 1,073.4 - 1,073.4 1,073.4
- 3,224.6 - 3,224.6 3,224.6
Financial liabilities measured at
fair value
Derivative financial instruments (65.8) - - (65.8) (65.8)
Financial liabilities not measured at
fair value
Borrowings - - (6,165.3) (6,165.3) (5,935.6)
Creditors - - (2,347.1) (2,347.1) (2,347.1)
- - (8,512.4) (8,512.4) (8,282.7)
Fair value estimation
(a) Financial instruments that are measured at fair value based on observable
current market transactions
At 30 At 31 December
June 2024
2025 US$m
US$m
Assets
Derivative designated at fair value
- through other comprehensive income 2.3 0.2
Liabilities
Derivative designated at fair value
- through other comprehensive income (77.4) (65.8)
The fair values of derivative financial instruments are determined using rates
quoted by the Group's bankers at the balance sheet date. The rates for
interest rate swaps are calculated by reference to market interest rates.
There were no changes in valuation techniques during the six months ended 30
June 2025 and the year ended 31 December 2024.
(b) Financial instruments that are not measured at fair value
The fair values of current debtors, bank balances, current creditors, current
borrowings and current lease liabilities are assumed to approximate their
carrying amounts due to the short-term maturities of these assets and
liabilities.
The fair values of long-term borrowings are based on market prices or are
estimated using the expected future payments discounted at market interest
rates. The fair values of non-current lease liabilities are estimated using
the expected future payments discounted at market interest rates.
16. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
Total capital commitments at 30 June 2025 and 31 December 2024 amounted to
US$1,081.9 million and US$1,155.9 million, respectively.
Various Group companies are involved in litigation arising in the ordinary
course of their respective businesses. Having reviewed outstanding claims
and taking into account legal advice received, the Directors are of the
opinion that adequate provisions have been made in the condensed financial
statements.
17. RELATED PARTY TRANSACTIONS
The parent company of the Group is Jardine Strategic Limited ('JSL') and the
ultimate parent company of the Group is Jardine Matheson Holdings Limited
('JMH'). Both JMH and JSL are incorporated in Bermuda.
In the normal course of business, the Group has entered into a variety of
transactions with the subsidiaries, associates and joint ventures of JMH
('Jardine Matheson group members'). The more significant of these
transactions during the six months ended 30 June 2025 are described below:
Management fee
The management fee payable by the Group, under an agreement entered into in
1995, to Jardine Matheson Limited ('JML') was US$1.4 million (2024: nil),
being 0.5% per annum of the Group's underlying profit in consideration for
management consultancy services provided by JML, a wholly-owned subsidiary of
JMH.
Property and other services
The Group rented properties to Jardine Matheson group members. Gross rents
on such properties amounted to US$9.4 million (2024: US$9.9 million).
The Group provided project management services and property management
services to Jardine Matheson group members amounting to US$5.5 million (2024:
US$2.0 million).
Jardine Matheson group members provided property maintenance and other
services to the Group in aggregate amounting to US$28.3 million (2024: US$26.5
million). In respect of capital expenditure works, Jardine Matheson group
members completed value of works of US$25.4 million (2024: nil) and
commitments related to the works amounted to US$197.7 million (31 December
2024: US$223.4 million).
Hotel management services
Jardine Matheson group members provided hotel management services to the Group
amounting to US$1.2 million (2024: US$1.7 million).
Outstanding balances with associates and joint ventures
Amounts of outstanding balances with associates and joint ventures are
included in associates and joint ventures, debtors and creditors as
appropriate.
Hongkong Land Holdings Limited
Principal Risks and Uncertainties
The Board has overall responsibility for risk management and internal
control. The following have been identified previously as the areas of
principal risk and uncertainty facing the Company, and they remain unchanged:
• Risk Relating to Execution of Strategy
• Economic Risk
• Risks from Customers' Changing Requirements and Market Competition
• Investment Management Risk
• Financial Strength and Reporting
• People and Culture Risk
• Health and Safety Risk
• Environmental and Climate Risk
• Technology and Cybersecurity Risk
• Legal, Regulatory and Compliance Risk
• Risks from Partnerships and Other Third-Party Relationships
For greater detail, please refer to pages 109 to 114 of the Company's Annual
Report for 2024, a copy of which is available on the Company's website
www.hkland.com.
Responsibility Statements
The Directors of the Company confirm that, to the best of their knowledge:
(a) the condensed financial statements prepared in accordance with IAS 34
'Interim Financial Reporting' give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Group; and
(b) the interim management report includes a fair review of all information
required to be disclosed under Rules 4.2.7 and 4.2.8 of the Disclosure
Guidance and Transparency Rules issued by the Financial Conduct Authority in
the United Kingdom.
For and on behalf of the Board
Michael Smith
Craig Beattie
Directors
Dividend Information for Shareholders
The interim dividend of US¢6.00 per share will be payable on 15 October 2025
to shareholders on the registers of members at the close of business on 22
August 2025. The shares will be quoted ex-dividend on 21 August 2025, and the
share registers will be closed from 25 to 29 August 2025, inclusive.
Shareholders will receive cash dividends in United States Dollars, except
where elections are made for alternate currencies in the following
circumstances.
Shareholders on the Jersey branch register
Shareholders registered on the Jersey branch register can elect for their
dividends to be paid in Pounds Sterling. These shareholders may make new
currency elections for the 2025 interim dividend by notifying the United
Kingdom transfer agent in writing by 26 September 2025. The Pounds Sterling
equivalent of dividends declared in United States Dollars will be calculated
based on the exchange rate prevailing on 2 October 2025.
Shareholders holding their shares through the CREST system in the United
Kingdom will receive cash dividends in Pounds Sterling only, as calculated
above.
Shareholders on the Singapore branch register who hold their shares through
The Central Depository (Pte) Limited (CDP)
Shareholders enrolled in CDP's Direct Crediting Service (DCS)
Those shareholders enrolled in CDP's DCS will receive their cash dividends in
Singapore Dollars, unless they opt out of CDP Currency Conversion Service,
through CDP, to receive United States Dollars.
Shareholders not enrolled in CDP's DCS
Those shareholders not enrolled in CDP's DCS will receive their cash dividends
in United States Dollars, unless they elect, through CDP, to receive Singapore
Dollars.
Shareholders on the Singapore branch register who wish to deposit their shares
into the CDP system by the dividend record date, being 22 August 2025, must
submit the relevant documents to Boardroom Corporate & Advisory Services
Pte. Ltd., the Singapore branch registrar, by no later than 5.00 p.m. (local
time) on 21 August 2025.
About Hongkong Land Group
Hongkong Land is a major listed property investment, management and
development group. Founded in 1889, it is a market leader in the development
of experience-led city centres that unlock value for generations by combining
innovation, placemaking, exceptional hospitality and sustainability.
The Group focuses on developing, owning and managing ultra-premium mixed-use
real estate in Asian gateway cities, featuring Grade A office, luxury retail,
residential and hospitality products. Its mixed-use real estate footprint
spans more than 850,000 sq. m., with flagship projects in Hong Kong, Singapore
and Shanghai. Its properties hold industry-leading green building
certifications and attract the world's foremost companies and luxury brands.
The Group's Hong Kong Central portfolio represents some 450,000 sq. m. of
prime property. LANDMARK, the luxury shopping destination of the Hong Kong
Central portfolio, is undergoing a three-year, US$1 billion expansion and
upgrade, which aims to reinforce the portfolio as a world-class destination
for luxury, retail, lifestyle and business. The Group has a further 165,000
sq. m. of prestigious office space in Singapore, mainly held through joint
ventures, and a portfolio of retail centres on the Chinese mainland, including
a luxury retail centre at Wangfujing in Beijing.
In Shanghai, the Group owns a 43% interest in a 1.8 million sq. m. mixed-use
project in West Bund. Due to complete in 2028, it will comprise Grade A
offices, luxury and retail space, high-end waterfront residential apartments,
hotels and convention and cultural facilities. Alongside LANDMARK, it forms
part of the Group's CENTRAL Series of globally-recognised destinations for
luxury and lifestyle experiences.
Hongkong Land Holdings Limited is incorporated in Bermuda and has a primary
listing in the equity shares (transition) category of the London Stock
Exchange, with secondary listings in Bermuda and Singapore. Hongkong Land is a
member of the Jardine Matheson Group.
- end -
For further information, please contact:
Mark Lam (852) 2842 8211
Gary Leung (852) 2842 0601
Kay Lau (Brunswick Group Limited) (852) 6021 7009
As permitted by the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority in the United Kingdom, the Company will not be
posting a printed version of the Half-Year Results announcement for the six
months ended 30 June 2025 to shareholders. This Half-Year Results announcement
will be made available on the Company's website, www.hkland.com, together with
other Group announcements.
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