Hongkong Land Holdings reported profit attributable to shareholders of US$1.26 billion for the six months ended Jun 30, up 470% year-on-year, lifted by a US$725 million gain in the fair value of its investment properties and lower financing costs stemming from extensive capital recycling.
The developer’s underlying profit, which strips out non-trading items, rose 11% to US$259 million, driving a 14% rise in underlying earnings per share to 12.07 US cents. Net asset value per share increased 3% to US$14.71, while net debt fell 5% to US$3.40 billion, cutting gearing to 11%. The board declared an interim dividend of 8.0 US cents a share, 33% higher than a year earlier, payable on Oct 14 to shareholders on record as of Aug 21.
Group revenue declined 16% YoY to US$632.7 million as the wind-down of the build-to-sell business and the December 2025 disposal of Marina Bay Financial Centre Tower 3 in Singapore reduced rental contributions. Adjusted free cash flow slid 37% to US$253 million, reflecting fewer asset sales during the period. Profit before tax, buoyed by valuation gains, climbed to US$1.31 billion from US$274 million.
Prime Properties Investment, now the sole contributor to underlying profit following the reclassification of the build-to-sell segment as non-trading, generated US$355 million of operating profit. Hong Kong’s Central portfolio achieved 94.2% occupancy, with average office rents at HK$91 per sq ft and retail rents at HK$240 per sq ft amid strengthening luxury-retail demand. In Singapore, occupancy at the office portfolio stood at 96.3%; lower rental income after the MBFC Tower 3 sale was partly offset by fee income from the newly launched Singapore Central Private Real Estate Fund (SCPREF). Earnings from China Integrated Properties jumped 43% on new openings and tenant-mix optimisation, while the Westbund Central project in Shanghai reported rising occupancy in its latest retail and office phases.
Disposals and the phased sale of floors at One Exchange Square contributed to a cumulative US$3.7 billion of capital recycled since late 2024. Management continues to prioritise asset sales to fund a US$1 billion transformation of Tomorrow’s CENTRAL in Hong Kong, ongoing phases of Westbund Central and other committed developments. The group is also transitioning to a portfolio-led operating model expected to yield at least US$25 million of annual cost savings from 2027.
Group chief executive Michael T. Smith said the first-half performance reflected disciplined capital recycling that reduced interest expenses and provided capacity for growth. He noted that 2026 represents a shift from portfolio optimisation to expansion, supported by third-party capital raised through SCPREF and by a strengthening Hong Kong office market. Smith added that, barring a significant deterioration in operating conditions—particularly on the Chinese mainland—the company now expects full-year underlying profit growth to be broadly in line with the first-half increase.