Kerry Properties H1 revenue falls on lower unit handovers

Kerry Properties

24/08/2026 05:28

Overview
Hong Kong property developer's H1 revenue fell 31% yr/yr on lower property sales
Profit attributable to shareholders rose 20% yr/yr, aided by lower interest costs
Company maintained interim dividend at HK$0.40 per share

Outlook
Company remains positive on long-term prospects for Hong Kong and Chinese Mainland
Company cites heightened geopolitical and macroeconomic uncertainty impacting short- and medium-term outlook
Company sees opportunities for well-positioned assets in major urban centres over the longer term
Kerry Properties expects HK$29.8 bln of contracted sales to be recognised mainly in 2027 and 2028, with the balance in H2 2026

Result Drivers
HONG KONG HANDOVER TIMING – Combined revenue fell 33% as Hong Kong development-property revenue recognition declined on lower unit handovers
LOWER INTEREST COSTS - Profit attributable to shareholders rose mainly due to lower interest cost capitalization following the launch of Jinling Residences in Shanghai
IMPROVED RENTAL PERFORMANCE - Rental apartments achieved full occupancy and retail mall sales posted double-digit tenant sales growth, offsetting some weakness in other segments

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
HK$5.56 bln
 
H1 Dividend
 
HK$0.40
 
H1 Net Income Attributable
 
HK$735 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the real estate rental, development & operations peer group is "buy"
Wall Street's median 12-month price target for Kerry Properties Ltd is HK$25.55, about 29.1% above its August 21 closing price of HK$19.79
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Aug 21 - Hong Kong's Tian An China Investments H1 revenue falls sharply amid lack of project handover
Aug 21 - Hong Kong property investor S E A Holdings' H1 revenue rises, net loss narrows
Aug 23 - China's property crisis grinds on after Evergrande sentencing

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)