Hysan Development (Hysan) reported broadly steady financial results for the six months ended 30 June 2026, underscored by solid retail momentum, disciplined cost control and accelerated capital recycling.
Turnover was virtually unchanged at HK$1.73 billion (-0.1% year-on-year). Recurring Underlying Profit edged up 1.7% to HK$1.05 billion, while Underlying Profit, boosted by realised gains from Bamboo Grove unit sales, rose 7.4% to HK$1.11 billion. Reported Profit declined 2.7% to HK$73 million after a HK$920 million fair-value loss on investment properties. Basic earnings per share stood at HK$0.07; the interim dividend remains HK$0.27 per share.
Segment performance was mixed. Retail revenue increased 1.4% to HK$874 million, supported by 17% tenant sales growth, 8% higher footfall and a 96% occupancy rate with positive rental reversions. Office turnover was stable at HK$754 million (+0.5%), as Hong Kong occupancy held at 93% amid continued negative rental reversions; mainland China office revenue climbed 27.7% to HK$60 million on stronger leasing at Lee Gardens Shanghai. Residential income contracted 15.3% to HK$100 million, reflecting disposals of Bamboo Grove units.
The HK$8 billion five-year capital recycling programme, launched in 2025, has generated HK$4.50 billion in proceeds by end-June 2026, achieving 56% of target. Net debt fell to HK$23.54 billion, lowering the net-debt-to-equity ratio to 30.9% from 32.4%. Gross debt decreased to HK$27.48 billion, and the effective interest rate eased to 3.5%. Average debt maturity was 2.4 years; fixed-rate debt accounted for 53% of the total. Moody’s and Fitch maintained investment-grade ratings of Baa2 and BBB (stable), respectively.
Capital expenditure reached HK$1.70 billion, mainly for Lee Garden Eight and the integrated pedestrian walkway. Lee Garden Eight, a one-million-square-foot mixed-use project, and the connectivity network remain on schedule for completion in 2H 2026, with pre-leasing progressing and key anchor tenants secured.
In the residential portfolio, 116 of 124 Bamboo Grove units targeted for disposal were contracted by 30 June. Joint-venture projects VILLA LUCCA and One Victoria Cove had contracted 187 and 654 units respectively. The Group’s mainland expansion, including Lee Gardens Shanghai and investments in Grand Gateway 66 and healthcare operator New Frontier Group, continued to contribute to diversification.
Operating costs declined 1.6% to HK$440 million, preserving a gross profit margin of 82.5%. Finance costs fell 15.6% to HK$244 million due to lower funding costs and reduced borrowings. Cash and bank deposits totalled HK$3.94 billion, while undrawn committed facilities stood at HK$10.58 billion, underpinning liquidity for ongoing developments.
Hysan’s board declared an unchanged first interim dividend of HK$0.27 per share, payable on 11 September 2026 to shareholders on record as of 28 August 2026.