Henderson Land (00012) reported robust interim results for the six months ended 30 June 2026, with underlying profit attributable to shareholders surging 66.34% year-on-year to HK$5.07 billion. Reported profit, after a HK$0.98 billion fair-value loss on investment properties, rose 40.67% to HK$4.09 billion.

Revenue more than doubled to HK$17.20 billion, powered chiefly by a 212% leap in Hong Kong property development turnover to HK$11.88 billion. The Board declared an interim dividend of HK$0.50 per share, unchanged from the prior year, payable on 17 September 2026 to shareholders on record as of 8 September 2026.

Key operating highlights • Property Development: Segment pre-tax profit in Hong Kong increased to HK$3.30 billion (2025: HK$0.31 billion), boosted by strong sales at projects such as The Legacy (Mid-Levels West) and Henley Park (Kai Tak), and by a HK$1.57 billion pre-tax gain from the Government’s resumption of New Territories land. Contracted sales in Hong Kong reached HK$18.12 billion, up 188%; unrecognised sales stood at HK$17.06 billion, with HK$6.37 billion slated for recognition in 2H 2026. Mainland China contracted sales fell 74% to RMB0.30 billion as market conditions remained weak.

• Property Leasing: Group gross rental income edged down 0.18% to HK$3.36 billion. Net rental income before tax in Hong Kong grew 4% to HK$2.59 billion, driven by 94% average occupancy; mainland rental income slipped 10% to HK$0.59 billion due to softer demand.

• Investment Property Portfolio: Completed lettable area in Hong Kong totalled 10.7 million sq ft, 54% retail and 39% office. Mainland portfolio amounted to 13.9 million sq ft, 69% office-led. Central Yards Phase 1 (1.6 million sq ft) is on track for 2H 2026 completion with 70% of its office space pre-leased to a financial institution.

• Land Bank: Hong Kong attributable land reserves measured 20.3 million sq ft, including 9.1 million sq ft pending sale or under development. New Territories holdings remain the largest among local developers at 38.4 million sq ft.

• Cash Flow & Debt: Net debt fell to HK$58.43 billion from HK$60.22 billion at end-2025, bringing the net gearing ratio down to 17.9% (31 Dec 2025: 18.7%). Average borrowing cost stood at 3.30% with 35% of debt fixed-rate. The group’s HK$8.00 billion 0.5% convertible bonds remain unconverted.

• Segment Contributions: Property development delivered HK$2.88 billion pre-tax profit; property leasing HK$3.19 billion; hotel room operation HK$0.08 billion; department-store and supermarket operations HK$0.04 billion; other businesses HK$0.11 billion. Associates added HK$1.58 billion, led by The Hong Kong & China Gas Company’s advanced-biofuels growth, while joint ventures contributed HK$1.13 billion, fuelled by land-resumption gains.

Outlook Management plans to launch eight Hong Kong projects in 2H 2026, offering 3,400 residential units and 180,000 sq ft of commercial space. Phase 1 of Central Yards and sustained earnings from listed affiliates are expected to enhance recurring income, while the 1.5 million sq ft urban-redevelopment pipeline and 38.4 million sq ft New Territories land bank underpin long-term growth capacity.