Hongkong Land Holdings (H78) Q1 2024 TU earnings summary

Executive summary

• Q1 underlying profit was in line with Q1 2023; Investment and Development Properties contributions were broadly unchanged.

• Luxury retail across the region and Singapore offices offset lower contributions from Hong Kong offices.

Financial highlights

• Attributable contracted sales in China were US$262 million in Q1, down 36% YoY.

• Full-year contracted sales are expected below 2023, with margins pressured by lower prices across several projects.

Outlook and guidance

• An ongoing project review is expected to produce a non-cash impairment charge of US$200–300 million in H1 2024.

• H1 underlying earnings are expected to be significantly lower YoY following the impairment review and China market deterioration.