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

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RNS Number : 1106M  Hongkong Land Hldgs Ltd  19 May 2022

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

 

19th May 2022 - Hongkong Land Holdings Limited today issues an Interim
Management Statement for the first quarter of 2022.

 

The Group's underlying profit in the period was higher than the first quarter
of 2021, principally due to a higher number of Development Properties
completions on the Chinese mainland, while the contribution from Investment
Properties was broadly unchanged.

 

In Hong Kong, the increase in office leasing activity which was seen since the
second half of 2021 was reversed upon the onset of the fifth wave of the
pandemic.  There have, however, been signs of a recovery in leasing activity
since the partial easing of anti-pandemic measures in late April.  Physical
vacancy at 31st March 2022 was 5.6%, compared to 5.2% at the end of 2021.  On
a committed basis, vacancy was 5.0%, up slightly from 4.9% at the end of last
year.  Rental reversions continued to be negative in the period.

 

The Group's LANDMARK retail portfolio in Hong Kong continued to be negatively
affected by a lack of overseas visitors.  Tenant sales were lower than in the
same period that of 2021, as footfall was significantly impacted by social
distancing measures, which also restricted the operating capacity of F&B
outlets.  As previously announced, the Group is providing temporary rent
relief to support selected tenants in the first half of 2022, including full
waivers of rents for a small number of tenants which have been subject to
mandatory closure of their businesses and turnover-only rents for F&B
tenants.  Physical and committed vacancy at 31st March 2022 remained low at
0.4% and 0.3%, respectively.

 

The Group's office portfolio in Singapore saw a recovery in leasing sentiment,
in part as a result of the gradual easing of travel restrictions.  Rental
reversions were positive in the period.  Physical vacancy decreased to 5.6%
at 31st March 2022 from 6.5% at the end of 2021.  On a committed basis,
vacancy was 3.1%, compared to 2.9% at the end of 2021.

 

In Development Properties, market sentiment on the Chinese mainland for
residential properties remained cautious, despite the gradual relaxation of
cooling measures in a number of the Group's key markets.  The Group's
attributable interest in contracted sales was US$213 million in the first
quarter, compared to US$410 million in the equivalent period in 2021.

 

In Singapore, residential market demand remained satisfactory despite the
introduction of cooling measures in late 2021.  The 407-unit Piccadilly Grand
project, launched for sale in May 2022, has been well-received by the market,
whilst pre-sales at the 638-unit Leedon Green project are performing within
expectations.  The Group's attributable interest in contracted sales was
US$45 million in the first quarter, compared to US$89 million in the
equivalent period in 2021, due to the timing of sales launches.

 

In February, the Group acquired a 49% interest in a residential site in the
Tanjong Katong area in Singapore with a developable area of 590,000 sq. ft.,
which is expected to yield a total of 640 units for sale.

 

As previously announced, the Group's underlying profits for 2022 are expected
to be lower compared to the prior year, primarily due to the timing of sales
completions on the Chinese mainland.  In addition, the recent emergence of
COVID cases and related restrictions in certain parts of the Chinese mainland
have partially curtailed some of the Group's sales and development
activities.  It is too early to forecast with accuracy the impact these
restrictions may have on the Group's full-year results, which will depend on
the degree to which mandatory restrictions remain in place for an extended
period and the extent to which construction progress on development properties
are impacted.

 

The Group's financial position remains strong.  Net debt at 31st March 2022
increased to US$5.5 billion from US$5.1 billion at the end of 2021, primarily
due to the scheduled payments for development sites acquired in the past six
months.  Committed liquidity was US$3.8 billion.

 

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 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, including a 43% interest in a 1.1
million sq. m. mixed-use project in West Bund, Shanghai.  Its subsidiary, MCL
Land, is a well-established residential developer in Singapore.  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

 Nan Dong  (852) 9768 8379

 

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

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