Henderson Land Development Company (0012) H2 2025 earnings summary

Executive summary

• Underlying profit attributable to equity shareholders for 2025 was HK$6,063 million, down 38% year-over-year, mainly due to lower gains from property disposals and government land resumptions.

• Reported profit attributable to equity shareholders was HK$5,653 million, a 10% decrease from the previous year.

• Property development pre-tax profit dropped sharply, while property leasing and utility contributions remained relatively stable.

• Revenue increased by 2% to HK$25,741 million, but operating profit fell 36% to HK$6,424 million.

• The group maintains a strong financial position with stable shareholders' equity and improved net debt ratio.

Financial highlights

• Property development revenue declined 9% year-over-year to HK$18,638 million.

• Gross rental income from investment properties was HK$8,742 million, down 2% year-over-year.

• Dividend per share was HK$1.26, down from HK$1.80 in the prior year; final dividend proposed at HK$0.76 per share.

• Net debt reduced to HK$60,219 million (2024: HK$67,989 million); gearing ratio improved to 18.7% from 21.1%.

• Rental income in Hong Kong up 1% to HK$6,916 million; Mainland rental income down 13% to HK$1,826 million.

Outlook and guidance

• Eight new development projects are planned for sales launch in Hong Kong in 2026, with about 2.3 million sq. ft. of residential GFA and 180,000 sq. ft. of industrial/office space available.

• Attributable contracted sales yet to be recognized total HK$12,784 million, with HK$14,830 million expected to be recognized in 2026.

• Investment property portfolio set to grow with Central Yards and The Henderson, supporting future recurrent income.