Hysan Development Company (14) investor relations material

Executive summary

• Achieved stable turnover at HK$1,728 million for 1H 2026, with Underlying Profit up 7.4% and Recurring Underlying Profit up 1.7% year-over-year, driven by fair value gains on Bamboo Grove unit sales.

• Retail revenue increased 1.4% year-over-year, with tenant sales up 17% and foot traffic up 8%, reflecting strong luxury and experiential retail demand.

• Residential revenue surged 15.3% year-over-year; normalizing for Bamboo Grove sales, residential revenue rose 34%.

• Lee Gardens rejuvenation drove full recovery in sales and prime rent to pre-COVID levels by June 2026, with major projects including Lee Garden Eight and connectivity project on schedule for late 2026 completion.

• Office turnover and occupancy were stable, with negative rental reversions persisting but showing early improvement signs.

Financial highlights

• Retail portfolio occupancy reached 96% (up from 95% at end-2025), with retail revenue up 1.2% year-over-year.

• Office occupancy stood at 93% (down from 94% at end-2025), with office revenue down 1.3% year-over-year; Chinese Mainland office turnover up 27.7%.

• Residential occupancy improved to 90% (from 87% at end-2025), with strong sales supporting capital recycling.

• Shareholders’ fund at HK$65.3B, NAV per share at HK$63.6, and DPS at HK$0.27.

• Gross profit margin at 82.5% and reported profit at HK$73 million, down 2.7% year-over-year.

Outlook and guidance

• Continued focus on business and geographic diversification, including expansion in Shanghai and healthcare investments.

• Lee Garden Eight and integrated pedestrian walkway system on track for Q4 2026 completion, expanding leasable portfolio by 30% and enhancing connectivity.

• Market expected to remain dynamic in H2 2026 amid global uncertainty, regional competition, and evolving consumer behavior.

• Continued focus on deleveraging and capital recycling to support sustainable growth.