Hongkong Land Holdings Limited swung to a net profit of US$1.26 billion for the year ended 31 Dec 2025 from a loss of US$1.39 billion a year earlier, as fair-value gains on investment properties and disposals outweighed weaker rental income from Hong Kong.
Revenue fell 28 % year-on-year (YoY) to US$1.45 billion, while basic earnings per share rebounded to 57.85 US cents from a 62.76-US-cent loss. The board recommended a final dividend of 19 US cents per share, bringing the full-year payout to 25 US cents, up 9 % YoY. The final dividend is slated for payment on 13 May 2026 to shareholders on record as at 20 Mar 2026; the shares trade ex-dividend on 19 Mar 2026.
Underlying profit, the group’s preferred measure that strips out non-trading items, slipped 8 % YoY to US$458 million as negative office rental reversions in Central and renovation works at LANDMARK offset higher contributions from Singapore. Prime Properties Investment generated US$621 million of operating profit, down 10 %, while corporate costs held broadly steady.
Segmentally, Hong Kong office vacancy narrowed to 6.0 % but average rent declined 7 % to HK$94 per sq ft. Retail revenue at LANDMARK eased 8 % due to the ongoing “Tomorrow’s CENTRAL” revamp, though top-tier luxury spending rose 8 %. In Singapore, office occupancy stayed near full and average rent rose to S$11.5 per sq ft, supporting segment earnings. Build-to-sell profits fell 44 % to US$127 million before a US$372 million mainland China inventory provision, reflecting the group’s decision to exit that business.
Fair-value gains of US$901 million, mainly from higher valuations in Hong Kong and Singapore and the reclassification of certain mainland assets to investment properties, lifted reported earnings. Net debt dropped 30 % to US$3.58 billion after US$3.6 billion of capital recycling, including the sale of floors at One Exchange Square and the disposal of a one-third stake in Marina Bay Financial Centre Tower 3 into the newly formed US$6.4 billion Singapore Central Private Real Estate Fund (SCPREF).
Management said the fund launch marks a key step in building a third-party capital platform as part of its “Strategic Vision 2035”. The group has already achieved 90 % of its US$4 billion asset-sale target set for end-2027 and has repurchased US$330 million of shares since April 2025.
Chief Executive Michael T. Smith noted that underlying earnings are likely to remain “largely unchanged” in 2026 as Hong Kong office rents stabilise and the retail revamp progresses, while momentum in Singapore and fee income from SCPREF provide support. He added that the balance sheet is “well positioned” to pursue prime mixed-use opportunities in Asian gateway cities.
Chairman John Witt said total shareholder return exceeded 60 % in 2025, attributing the performance to swift execution of the capital-recycling plan and early progress toward the 10-year goal of lifting assets under management to US$100 billion.
Looking ahead, management will continue winding down the build-to-sell portfolio, seek acquisitions for SCPREF and monitor macro headwinds on the Chinese mainland. The group reaffirmed its commitment to fund growth with at least 80 % of recycling proceeds while using up to 20 % for additional buybacks when valuations are attractive.