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Hysan Development Company (14) investor relations material
Hysan Development Company H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Turnover increased by 2.2% year-over-year to HK$1,730 million for H1 2025, with recurring underlying profit up 1.2% to HK$1,031 million, demonstrating resilience in a challenging market.
Retail, office, and residential segments all posted year-over-year growth, with residential turnover up 12.4% and occupancy rates improving to 94% (retail), 92% (office), and 70% (residential).
Lee Gardens Precinct remains a vibrant commercial and cultural hub, with significant tenant sales and traffic growth, supported by ongoing rejuvenation and connectivity projects.
Strategic focus on diversification, prudent financial management, and capital recycling underpins long-term growth, with a HK$8 billion program launched for asset sales and redeployment.
Interim dividend maintained at HK$0.27 per share.
Financial highlights
Group turnover grew by 2.2% year-on-year; recurring underlying profits up 1.2%; reported profit dropped to HK$75 million from HK$427 million due to a HK$964 million fair value loss on investment properties.
Retail, office, and residential portfolio turnover increased by 2.1%, 0.8%, and 12.4% year-on-year, respectively.
Retail tenant sales rose 4% year-on-year, with Q2 retail tenant sales up 8% and traffic up 19% year-on-year.
Net asset value per share decreased by 1.2% to HK$63.5 as at 30 June 2025.
Operating costs to turnover ratio increased to 25.8% (2024: 25.0%).
Outlook and guidance
Management remains optimistic but cautious due to global economic uncertainties and market headwinds, with confidence in Hong Kong’s long-term prospects.
Lee Garden Eight project is on track for 2026 completion, expected to expand leasable area by 30% and increase daily footfall by 20%.
Continued investment in Lee Gardens and a diversified growth strategy to capitalize on emerging opportunities.
Retail rental reversion predominantly positive in H1; office rental reversion remains negative but improved, with increased leasing activity.
Focus on sustainable growth, prudent risk management, and capital discipline.
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