Hongkong Land Holdings (H78) H2 2025 earnings summary

Executive summary

• Achieved strong progress on Strategic Vision 2035, recycling $3.6 billion in capital—90% of the 2027 target—and launching SCPREF, Singapore's largest private real estate fund, with $8.2B AUM.

• Major asset sales, including One Exchange Square, MCL Land, and MBFC Tower 3, were completed at or above NAV, validating asset values.

• Organizational redesign and enhanced leadership structure implemented to drive accountability and performance.

• Exited build-to-sell in Singapore and Malaysia, and restructured China operations.

• Share buybacks exceeded $330 million, reducing share capital by up to 2.5%.

Financial highlights

• Profit attributable to shareholders rebounded to $1,263 million, reversing a $1,385 million loss in the prior year, driven by portfolio revaluation gains.

• Underlying profit was $458 million, down 8% year-over-year, mainly due to lower Hong Kong rental contributions and renovations.

• Net asset value per share rose 5% to $14.30, supported by valuation gains and share buybacks.

• Net debt reduced by $1.5 billion to $3.6 billion, and further to $3 billion post-SCPREF formation; gearing ratio improved to 12%.

• Full-year dividend increased 9% to $0.25 per share.

Outlook and guidance

• Underlying results expected to remain largely unchanged in 2026, with growth anticipated from improved Hong Kong sentiment, expanding Chinese mainland portfolio, and Singapore fund management.

• Hong Kong office and retail expected to see positive rental reversions and growth in ultra-high-net-worth retail spend.

• Singapore office outlook remains strong with limited supply and low vacancy.

• Continued focus on capital recycling, cost management, and new investment opportunities in Asia gateway cities; targeting $6B in capital recycling by 2027, with 80% allocated to growth investments and 20% to buybacks.

• Committed to doubling dividends per share by 2035 and growing AUM to $100B.