REG - Hongkong Land Hldgs Jardine Matheson Hdg - INTERIM MANAGEMENT STATEMENT

Jardine Matheson HoldingsAnnouncement

20/11/2025 09:45

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RNS Number : 3623I  Hongkong Land Hldgs Ltd  20 November 2025

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

 

20 November 2025 - Hongkong Land Holdings Limited (the Company) today issues
an Interim Management Statement for the third quarter of 2025.

 

Strategy Update

The Group continues to deliver on the initial phases of its Strategic Vision
2035, with a focus on ultra-premium integrated commercial assets in Asia's
gateway cities. A key part of the strategy is to recycle up to US$10 billion
of capital over a 10-year period, generating cash for new investments and
enhanced shareholder returns.

 

On 31 October, the Group completed a second significant capital recycling
transaction: selling the Singapore and Malaysia residential developer MCL Land
for S$739 million (US$579 million). Total net proceeds from the divestment,
including cash distributions before completion, amounted to S$839 million
(US$657 million). Including the proceeds from this transaction, the Group has
now secured 50% of its target of recycling at least US$4 billion of capital by
the end of 2027.

 

The US$200 million share buyback programme announced in April 2025 has now
been fully invested, reducing the issued share capital of the Company by 1.6%.
An additional US$150 million, financed by proceeds from the MCL Land
transaction and other recycled capital, was allocated to the share buyback
programme in September, with c.US$40 million invested to date.

 

Prime Properties Investments

In Hong Kong, contributions from the Group's Central office portfolio in the
quarter were lower compared to the same period in 2024; leasing momentum,
however, continued to improve in recent months as a result of recovering
capital market sentiment and a strong Initial Public Offering pipeline.
Vacancies on a committed basis declined to 6.4% at 30 September, compared to
6.9% at the end of June, continuing a steadily improving trend from a peak of
7.6% at the end of September 2023. This also compares favourably to the wider
Central Grade A office market vacancy of 11.0%, improving from 13.0% at the
end of June. Physical vacancy for the portfolio stood at 7.5%.

 

Results from the Group's LANDMARK retail portfolio during the quarter were
largely in line with the same period last year, despite over 30% of the
lettable space being under renovation. Demand from the ultra-high net worth
segment was resilient during the period, with top-tier customer spending
higher than the same period last year.

 

In Singapore, office rental reversions remained positive, largely due to
favourable demand and supply dynamics in the central business district. At 30
September, physical vacancy was 2.9%, while on a committed basis it was 2.2%.

 

Build-to-Sell

Hongkong Land no longer pursues investments in its build-to-sell segment, and
is focused on accelerating the return of capital through inventory sales,
while completing committed projects to its usual high standards. During the
period, the Group exited the Singapore and Malaysia residential markets, while
continuing with ongoing projects in China and a select number of other
Southeast Asian countries.

 

In China, buyer sentiment for the residential sector deteriorated in the
quarter, as the impact of new stimulus policies were limited. A thorough
review of the carrying value of our build-to-sell inventory in China will be
conducted at year-end. The Group has focused on driving sales velocity by
adapting its sales strategies and selectively reducing selling prices to cater
to local market conditions. Further price reductions may be considered in the
remainder of the year, as the Group continues to progress towards its capital
recycling targets. The Group secured attributable contracted sales of US$161
million in the third quarter.

 

Overall Results

Underlying profit in the quarter was 13% lower than the third quarter of 2024,
primarily due to lower contributions from the Hong Kong office portfolio and
pre-opening costs of the Group's Prime Properties Investment pipeline in
China.

 

The Group's financial position remains strong. The Group generated net cash
inflows in the third quarter, which combined with proceeds from the sale of
MCL Land, saw net debt and gearing at 31 October reduce to US$4.4 billion and
15% respectively.

 

For the full financial year, the Group's outlook on underlying results remains
unchanged, with performance, excluding provisions, expected to be lower than
the prior year.

 

Hongkong Land is a major listed property development, investment and
management group. It 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. With over US$40 billion
assets under management, Hongkong Land's ultra-premium mixed-use real estate
footprint spans over 1.28 million sq. m. in operation and 1 million sq.m under
development, with flagship mixed-use 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.  Established in
1889, Hongkong Land takes a long-term view, investing significantly alongside
our capital partners and concentrating our portfolio where we can create the
most value for tenants, customers and investors. Hongkong Land Holdings
Limited has a primary listing on the London Stock Exchange, with secondary
listings in Singapore and Bermuda. 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

 

 

This and other Group announcements can be accessed via the Hongkong Land
corporate website at 'www.hkland.com'.

 

 

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