Hongkong Land Hldgs Ltd Interim Management Statement (6258X)
May 05 2021 - 5:22AM
UK Regulatory
TIDMHKLD TIDMJAR
RNS Number : 6258X
Hongkong Land Hldgs Ltd
05 May 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
5th May 2021 - Hongkong Land Holdings Limited today issues an
Interim Management Statement for the first quarter of 2021.
The Group continues to operate in a challenging environment and
uncertainty remains about the duration of COVID-19 and the impact
it will have on the Group's full-year underlying performance. The
Group's balance sheet remains strong and well-financed.
The Group's Investment Properties portfolio continued to
demonstrate resilience in the period, underpinned by its
high-quality tenant base and active lease management, whilst the
Development Properties business benefited from improving market
conditions on the Chinese mainland and in Singapore.
In Hong Kong, rental reversions in the Group's Hong Kong Central
office portfolio were negative, reflecting the general decrease in
rents since the onset of the pandemic. Physical vacancy at 31st
March 2021 was 7.6%, compared to 6.3% at the end of 2020. On a
committed basis, vacancy was 6.8%, compared to 5.9% at the end of
2020. However, new office leasing activity saw a modest increase in
the period as a result of improved sentiment and a narrowing rental
gap between Central and other parts of the city.
The Group's Central retail portfolio benefited from marginally
better trading conditions in the quarter compared to the prior
year, although luxury retail sentiment remains weak relative to
pre-pandemic levels. Base rental reversions were negative,
reflecting lower retail rents across Hong Kong. The Group continued
to provide temporary rent relief to support its tenants on a
case-by-case basis. Physical vacancy at 31st March 2021 was 1.7%
compared to 0.3% at the end of 2020. On a committed basis, vacancy
was 0.4%, compared to 0.3% at the end of 2020.
Rental reversions in the Group's Singapore office portfolio were
mildly negative in the period, although they are expected to turn
positive before the end of June as tenants take up committed space.
Physical vacancy increased to 7.9% at 31st March 2021 from 2.1% at
the end of 2020 due to the timing of new tenant occupancy. On a
committed basis, however, vacancy remained low at 3.0%, compared to
2.1% at the end of 2020.
In Beijing, the trading performance at WF CENTRAL continued to
benefit from the strength of luxury retail sentiment on the Chinese
mainland, with first quarter tenant sales exceeding those achieved
in the equivalent period in 2020.
In Shanghai, construction has commenced at the Group's prime
mixed-use joint development on the West Bund, with completion in
multiple phases to 2027.
In Development Properties, the Group's attributable interest in
contracted sales on the Chinese mainland was US$410 million in the
first quarter, compared to US$107 million in the equivalent period
in 2020, due to the effect of pandemic-related suspensions of sales
and development activities in the prior year. In Singapore, the
Group's attributable interest in contracted sales was US$89 million
in the quarter, compared to US$170 million in the equivalent period
in 2020, due to the timing of sales launches, although buyer
sentiment improved.
Hongkong Land participated in a number of land auctions on the
Chinese mainland during the first quarter, but it remained
difficult to secure new sites due to a highly competitive primary
land market.
In the rest of Southeast Asia, construction activities at the
Group's Development Properties projects remain partially curtailed
by the pandemic and market sentiment remains subdued.
The Group's financial position remains strong. Net debt at 31st
March 2021 was US$4.2 billion, compared to US$4.6 billion at the
end of 2020. Committed liquidity was US$4.3 billion, unchanged from
the end of 2020.
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 standard 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
Robert Wong (852) 2842 8428
Simon Dixon (852) 2842 8101
Mark Lam (852) 2842 8211
Br unswick 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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