REG - Hongkong Land Hldgs Jardine Matheson Hdg - Interim Management Statement

Jardine Matheson HoldingsAnnouncement

11/11/2021 09:40

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RNS Number : 0902S  Hongkong Land Hldgs Ltd  11 November 2021

Announcement

 

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 Management Statement

 

11th November 2021 - Hongkong Land Holdings Limited today issues an Interim
Management Statement for the third quarter of 2021.

 

The Group's underlying profit in the period was higher than the third quarter
of 2020, principally due to more Development Properties completions on the
Chinese mainland, whilst the contribution from Investment Properties was
broadly unchanged.

 

In Hong Kong, the Group's Central office portfolio continued to perform
relatively well due to its high quality and unique positioning, despite rising
office vacancies across the city.  Physical vacancy at 30th September 2021
decreased to 6.1%, compared to 6.4% at the end of June.  On a committed
basis, vacancy was 4.8%.  The modest recovery in new office leasing activity
from the first half of the year continued, although office rental reversions
were negative, reflecting the decrease in rents since the onset of the
pandemic.

 

Although Hong Kong's borders remained closed to visitors, tenant sales at the
Group's Central retail portfolio increased compared to the second quarter of
2021 and were higher than the same period in 2020.  This resulted in a
decline in temporary rent relief which the Group continued to provide to
support its tenants on a case-by-case basis.  Physical and committed vacancy
at 30th September 2021 remained very low at 0.3%.

 

Rental reversions in the Group's Singapore office portfolio were positive in
the period.   Physical vacancy increased to 8.0% at 30th September 2021 from
7.5% at the end of June, although it is expected to decline in the fourth
quarter as tenants take up committed space.  On a committed basis, vacancy
was 1.9%.

 

In Development Properties, market sentiment on the Chinese mainland weakened
in the quarter relative to the first half of the year amidst tightened credit
conditions for the property sector.  Contracted sales at the Group's
projects, however, remained in line with expectations.  The Group's
attributable interest in contracted sales was US$258 million in the third
quarter, compared to US$639 million in the equivalent period in 2020, but this
was due to the timing of sales launches.  In the nine months to 30th
September 2021, the Group's attributable interest in contracted sales was
US$1,618 million, compared to US$1,230 million in the same period last year.

 

In Singapore, residential market sentiment remained stable.  The Group's
attributable interest in contracted sales was US$88 million in the quarter,
compared to US$145 million in the equivalent period in 2020, due to the
1,404-unit Parc Esta project being largely pre-sold.  In the nine months to
30th September 2021, the Group's attributable interest in contracted sales was
US$260 million, compared to US$446 million last year.

 

No new development projects were acquired in the period.

 

The Group's financial position remains strong.  Net debt at 30th September
2021 was US$4.4 billion, compared to US$4.3 billion at the end of June.
Committed liquidity was US$4.7 billion.  The Group issued its inaugural
10-year green bond in the period, raising US$500 million to fund its green
buildings and related initiatives.  Average tenor of debt at 30th September
2021 increased to 6.7 years compared to 6.4 years at the end of June.

 

Hongkong Land is a major listed property investment, management and
development group.  The Group owns and manages more than 850,000 sq. m. of
prime office and luxury retail property in key Asian cities, principally in
Hong Kong, Singapore, Beijing and Jakarta.  The Group also has a number of
high-quality residential, commercial, and mixed-use projects under development
in cities across China and Southeast Asia.  In Singapore, its subsidiary, MCL
Land, is a well-established residential developer.  Hongkong Land Holdings
Limited is incorporated in Bermuda and has a primary listing on the London
Stock Exchange, with secondary listings in Bermuda and Singapore.  The
Group's assets and investments are managed from Hong Kong by Hongkong Land
Limited.  Hongkong Land is a member of the Jardine Matheson Group.

 

- end -

 

For further information, please contact:

 

 Hongkong Land Limited
 Mark Lam               (852) 2842 8211
 Gary Leung             (852) 2842 0601

 

Brunswick Group Limited

 Andrea Ngai  (852) 3512 5093

 

This and other Group announcements can be accessed through the Internet
at 'www.hkland.com'.

 

 

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