Hongkong Land’s Q1 2025 underlying profit ‘in line’ YoY

The group’s net debt reduced to US$4.9b.

Hongkong Land Holdings Limited said that its underlying profit for the first quarter of 2025 was in line with the same period last year.

According to its interim management statement, contributions from its Central Portfolio in Hong Kong declined, but this was offset by stronger returns from the build-to-sell business, mainly due to the timing of sales completions on the Chinese mainland.

Prime Properties Investments in Hong Kong experienced negative rental reversions in the office portfolio and temporary disruption to retail income from the ongoing Tomorrow’s CENTRAL transformation, impacting overall rental income.

The group’s net debt reduced to US$4.9b as of 31 March 2025 and net gearing at 16%. Committed liquidity stood at US$3.2b, supported by 68% of debt at fixed interest rates.

Leasing activity in the Central office portfolio improved, maintaining vacancy rates broadly stable at 8.3% physical vacancy and 7.3% committed vacancy, compared to 11.5% market-wide for Grade A offices.

Hongkong Land continues to progress with its Strategic Vision 2035, aiming to recycle up to US$10 billion of capital over 10 years to support new investments and shareholder returns.

In line with this, the group recently sold office and retail space in One Exchange Square to the Hong Kong Stock Exchange for HK$6.3b (US$810m), moving closer to its capital recycling target.

The group also launched a US$200m share buyback program, financed by proceeds from capital recycling.