Hysan Development Company (14) investor relations material

Executive summary

• Turnover remained stable at HK$1,728 million for the six months ended 30 June 2026, with Recurring Underlying Profit up 1.7% and Underlying Profit up 7.4% year-over-year, driven by fair value gains on Bamboo Grove unit sales and strong retail and residential performance.

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

• Lee Gardens rejuvenation and asset enhancement initiatives drove full recovery of tenant sales and prime rents to pre-COVID levels by June 2026.

• Major projects, including Lee Garden Eight and connectivity upgrades, are on schedule for completion in late 2026, expected to expand the leasable portfolio by 30%.

• Tenant sales and traffic growth reflect robust retail momentum and successful luxury positioning.

Financial highlights

• Turnover: HK$1,728 million, down 0.1% year-over-year; Recurring Underlying Profit: HK$1,049 million, up 1.7%; Underlying Profit: HK$1,107 million, up 7.4%.

• Retail portfolio occupancy at 96%, office at 93%, residential at 90%.

• NAV per share at HK$63.6; interim dividend maintained at HK$0.27 per share.

• Net debt ratio improved by 1.5 percentage points to 30.9%; finance costs reduced by 16% year-on-year; effective interest rate at 3.5%.

• Total shareholder return of 28.7% over three years, outperforming sector average of 13.4%.

Outlook and guidance

• Management remains confident but cautious due to market volatility, global uncertainty, and a higher comparison base for retail sales in H2 2026.

• Lee Garden Eight and connectivity project to complete in H2 2026, expected to enhance portfolio and community engagement.

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

• Confident in refinancing HK$10 billion Lee Garden Eight project loan ahead of 2027 maturity.