Hongkong Land Holdings (H78) Q1 2023 TU earnings summary

Executive summary

• Q1 underlying profit was lower YoY, as fewer planned mainland China sales completions reduced Development Properties’ contribution; Investment Properties’ contribution was marginally higher.

• Hong Kong retail and mainland China and Macau retail trading rebounded as travel and anti-pandemic restrictions lifted; net debt fell and committed liquidity increased.

Financial highlights

• Underlying profit declined YoY in Q1 2023, reflecting fewer planned mainland China sales completions.

• Attributable contracted sales were US$408m on the Chinese mainland, versus US$213m in Q1 2022, and US$171m in Singapore, versus US$45m.

Outlook and guidance

• Planned mainland China sales completions for 2023 are expected to exceed the prior year; sales activity continued to recover in April.

• Singapore office rental reversions are expected to moderate during the rest of 2023 amid global technology and banking sector uncertainty.