Hongkong Land Holdings (H78) H2 2025 earnings summary

Executive summary

• Strategic Vision 2035 advanced through $3.6bn of capital recycling, reaching 90% of the 2027 target; major disposals completed at NAV.

• Launched SCPREF, Singapore’s largest private real estate fund, with S$8.2bn AUM and $1.8bn third-party capital.

• Restructured China operations and exited build-to-sell in Singapore and Malaysia.

• Implemented an organisational redesign and new leadership structure to strengthen accountability and execution.

Financial highlights

• Profit attributable to shareholders was $1,263m, versus a $1,385m loss in 2024, driven by valuation gains.

• Underlying profit was $458m, down 8% year over year, mainly reflecting lower Hong Kong office contributions and renovations.

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

• Net debt fell ~30% to $3.6bn, with gearing at 12%; debt declined further to $3bn after SCPREF formation.

• Full-year dividend rose 9% to $0.25 per share; $340m of buybacks reduced share capital by ~2.5%.

Outlook and guidance

• Hong Kong office expected to see positive net absorption and narrowing negative rental reversions in 2026; retail outlook supported by positive reversions and UHNW spending.

• Singapore office outlook remains positive, supported by limited supply and low vacancy.

• Continue monetising Chinese mainland build-to-sell assets; Westbund Phase 2 expected to contribute earnings over time.

• 2027 capital recycling target remains $4–6bn; 80% of recycled capital is allocated to growth and 20% to buybacks.

• Long-term ambitions include doubling dividends per share by 2035 and growing AUM to $100bn across Asian gateway cities.