Hongkong Land Holdings (H78) Q3 2023 TU earnings summary

Executive summary

• Q3 underlying profit declined YoY; investment property contributions were broadly in line, while development property contributions fell due to the timing of planned sales completions and financing charges rose.

• Full-year underlying profit is expected to be moderately below 2022, reflecting delayed Shanghai residential completions and Wuhan project write-downs.

Financial highlights

• Investment property contributions were broadly in line YoY; higher luxury retail and Singapore office contributions largely offset lower Hong Kong office contributions.

• Development property contributions declined due to the timing of planned sales completions; net financing charges increased as interest costs rose.

Outlook and guidance

• FY underlying profit is expected to be moderately below the prior year, as West Bund, Shanghai profits shift to H1 2024 and two Wuhan residential projects are written down.

• Planned Chinese mainland sales completions for 2023 are expected to be lower than in 2022.