Hang Lung Properties (0101) investor relations material

Executive summary

• Total revenue for the first half of 2026 rose 23% year-over-year to HK$6,113 million, driven by a 548% surge in property sales and steady growth in leasing and hotels.

• Operating profit remained stable at HK$3,255 million, while underlying net profit attributable to shareholders fell 10% to HK$1,436 million due to higher losses from property sales and increased finance costs.

• Net profit attributable to shareholders was HK$758 million, down from HK$912 million, reflecting a revaluation loss of HK$678 million.

• Interim dividend per share was maintained at HK$0.12.

• The period saw the opening of Westlake 66 in Hangzhou, CEO transition, and continued portfolio enhancements in both the Chinese Mainland and Hong Kong.

Financial highlights

• Property leasing revenue increased 5% to HK$4,923 million; operating profit from leasing up 4% to HK$3,471 million.

• Hotel revenue rose 14% to HK$147 million, with Grand Hyatt Kunming showing strong growth.

• Property sales revenue soared to HK$1,043 million (+548% YoY), but the segment posted an operating loss of HK$187 million due to non-cash inventory provisions and market challenges.

• Net debt to equity ratio improved to 31.6% (from 32.7%); net debt at HK$47,053 million.

• Cash and bank balances totaled HK$6,505 million; available liquidity HK$18.0 billion.

Outlook and guidance

• Chinese Mainland retail leasing expected to remain competitive, with focus on experience-led and lifestyle offerings.

• Westlake 66 projected to contribute more to recurring income as occupancy builds; Plaza 66 Pavilion Extension and Center 66 Expansion Project to open from H2 2026 onwards.

• Hong Kong retail and office markets show signs of stabilization, but inflation and supply risks persist.

• Property sales strategy remains disciplined, with phased launches and premium product focus.

• Management expects high single-digit sales growth in the second half, driven by diversified retail and F&B segments.