Hang Lung Properties reported a solid top-line expansion for the six months ended 30 June 2026, with revenue climbing 23.05 % year on year to HK$6.11 billion. Growth was powered by a 548 % surge in property-sales income to HK$1.04 billion following unit handovers at The Aperture (Hong Kong) and selected mainland residences, alongside a 5.23 % rise in core leasing turnover to HK$4.92 billion and a 14.0 % increase in hotel revenue to HK$147 million.

Operating profit held steady at HK$3.26 billion, as stronger leasing and hotel contributions offset a HK$187 million operating loss from property sales—hit by a HK$124 million non-cash inventory write-down on mainland projects. Group EBITDA before fair-value changes rose 3.9 % to HK$2.96 billion.

A HK$503 million revaluation loss on investment properties, broadly in line with last year, and a 11.3 % rise in net finance costs to HK$553 million compressed the bottom line. Net profit attributable to shareholders declined 16.9 % to HK$758 million, translating into basic earnings per share of HK$0.15 (1H 2025: HK$0.19). Underlying profit—excluding property revaluation movements—eased 9.5 % to HK$1.44 billion; underlying EPS was HK$0.28 (1H 2025: HK$0.33).

Segment performance diverged:

• Mainland leasing revenue advanced 7.9 % in Hong Kong-dollar terms to HK$3.44 billion, supported by 6 % mall revenue growth and a 17 % jump in tenant sales. Portfolio occupancy edged up to 96 %. Office income fell 12 % to RMB464 million amid oversupply and rent pressure, though occupancy improved one point to 81 %.

• Hong Kong leasing turnover was broadly flat at HK$1.48 billion; retail occupancy remained high at 95 % while office occupancy climbed three points to 90 %.

• Hotel operations benefited from resumed travel—Grand Hyatt Kunming revenue rose 19 % to RMB68 million, offsetting a 2 % dip at Conrad Shenyang.

Financial leverage stayed conservative: net debt stood at HK$47.05 billion, with a net-debt-to-equity ratio of 31.6 %, down from 32.7 % at end-2025. Average borrowing cost eased to 3.7 %.

Directors declared an unchanged interim dividend of HK$0.12 per share, payable on 25 September 2026.

Strategic milestones included the April inauguration of Westlake 66 in Hangzhou—Hang Lung’s final greenfield project in its current pipeline—achieving 89 % opening occupancy and over three million visitors by end-June. The Plaza 66 Pavilion extension in Shanghai and Xi Zhe Wuxi, Curio Collection by Hilton, are scheduled to open in 2H 2026.

Leadership transition is imminent: outgoing CEO Weber W.P. Lo will retire on 30 September 2026, with Leo Tsoi appointed as successor following a brief hand-over period.

Management expects moderated mainland growth and a gradual Hong Kong recovery, with emphasis on tenant-mix upgrades, disciplined capital management and completion of ongoing V.3 expansion projects to underpin long-term earnings.