TIDMHKLD TIDMJAR TIDMJDS
RNS Number : 3779E
Hongkong Land Hldgs Ltd
05 November 2020
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 November 2020 - Hongkong Land Holdings Limited today issues
an Interim Management Statement for the third quarter of 2020.
The Group's performance in the period continued to be negatively
impacted by the COVID-19 pandemic, particularly in relation to
retail rent in the Investment Properties business. On the Chinese
mainland, sentiment in the Group's markets has generally recovered
to pre-pandemic levels. The Group's overall financial position
remains strong.
The Group's full-year underlying performance is expected to be
moderately impacted by a reduced contribution from the Investment
Properties portfolio due to the provision of temporary retail rent
relief, and a delay in the timing of profit recognition in respect
of Development Properties on the Chinese mainland, primarily due to
pandemic-related construction delays. The Group also expects there
will be further losses on the revaluation of investment properties
in the second half of the year due to adverse market
conditions.
In Investment Properties, contributions from the office
portfolio in the third quarter remained stable. Rental reversions
in the Group's Hong Kong Central office portfolio were negative in
the period, reflecting subdued market conditions with few leasing
enquiries. In the nine months to 30th September 2020, rental
reversions were broadly neutral. Vacancy increased to 6.9% at 30th
September 2020, compared to 5.0% at the end of June. On a committed
basis, vacancy was 6.5%. Retail market sentiment in Hong Kong
remained weak in the quarter, despite a modest improvement in
September due to an improved outlook as regards to the pandemic.
The Group continued to provide temporary rent relief to support its
tenants on a case-by-case basis. Base rental reversions in the
Group's Central retail portfolio were negative in the period,
reflecting falling retail rents across the city. Vacancy at 30th
September 2020 was 0.7% on both a physical and committed basis,
compared to 0.4% at the end of June.
Rental reversions in the Group's Singapore office portfolio were
positive, reflecting the general increase in rents over the past
few years. Vacancy declined to 1.3% at 30th September 2020 from
1.5% at the end of June. On a committed basis, vacancy remained low
at 1.0%.
In Beijing, WF CENTRAL benefited from global travel restrictions
and the recovery in luxury retail spending on the Chinese mainland,
with tenant sales in the third quarter exceeding those in the same
period last year. As a result of improved trading conditions, no
further rent relief was provided.
In Shanghai, planning of the Group's prime mixed-use development
on the West Bund, secured in February 2020, is proceeding on
schedule. Construction is expected to commence by late 2020, with
completion in multiple phases to 2027. Subject to relevant
approvals by the authorities, the Group's conditional agreements
with two strategic partners to jointly develop the site are
expected to be completed by early 2021.
In Development Properties, the Group's recent sales launches on
the Chinese mainland benefited from a rebound in market sentiment.
In the three months under review, the Group's attributable interest
in contracted sales on the Chinese mainland was US$639 million,
compared to US$566 million in the same period last year. In the
nine months to 30th September 2020, the Group's attributable
interest in contracted sales was US$1,230 million, compared to
US$1,209 million last year.
In Singapore, pre-sales at the 1,404-unit Parc Esta and the
638-unit Leedon Green projects have performed well given current
market conditions, benefiting from the release of pent-up demand
from the first half of the year. The Group's attributable interest
in contracted sales was US$145 million in the quarter, compared to
US$148 million in the equivalent period in 2019. In the nine months
to 30th September 2020, the Group's attributable interest in
contracted sales was US$446 million, compared to US$403 million in
the same period last year. Construction activities have returned to
normal.
In the rest of Southeast Asia, construction activities at the
Group's projects have largely been curtailed by the pandemic and
market sentiment remains subdued.
The Group's financial position remains strong. Net debt at 30th
September 2020 was US$4.7 billion, compared to US$5.6 billion at
the end of June. Committed liquidity was US$4.0 billion, compared
to US$2.7 billion at the end of June. Both measures benefited from
the strong contracted sales performance in the quarter in the
Development Properties business.
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 Greater
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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