Hongkong Land Holdings (H78) investor relations material

Executive summary

• Underlying EPS rose 14% year-over-year to $0.12, and underlying profit increased 11% to $259 million, driven by lower net financing charges and stable portfolio performance.

• Profit attributable to shareholders surged to $1.3 billion from $221 million, mainly due to portfolio revaluation gains.

• NAV per share increased 3% to $14.71, supported by valuation gains and share buybacks.

• Assets under management reached $51.8 billion, up 12% since the new strategy launch.

• Interim dividend raised to $0.08 per share, reflecting a rebalanced dividend profile and commitment to long-term growth.

Financial highlights

• Rental income grew 3% year-over-year, led by strong growth in China Integrated Properties and Hong Kong retail.

• Adjusted free cash flow was $253 million in H1 2026, excluding major capital recycling proceeds.

• Net revaluation gain of $916 million, driven by lower cap rates and higher market rents in Hong Kong and Shanghai.

• Net debt reduced to $3.4 billion, with gearing at 11%.

• $150 million invested in share buybacks, $407 million paid in dividends for 2025 final dividend.

Outlook and guidance

• Full-year earnings growth expected to be in line with H1 (~11%), with further growth anticipated into 2027.

• Hong Kong office rental reversions to trend neutral in 2027, with positive reversions likely in 2028.

• Luxury retail in Hong Kong expected to outperform, with continued strong demand from ultra-high-net-worth segment.

• Singapore office market outlook remains positive due to robust demand and tight supply.

• Chinese mainland market conditions remain mixed, but new openings and asset optimizations should support contributions.