Central giant looks to growth in office rentals but says lack of residential completions may be a setback
Hongkong Land Holdings said a lack of residential completions might hold back its results this year, although an era of falling office income was over as leases signed during the downturn in 2003 expired and higher rentals kicked in.
Central district's biggest landlord posted a 5 per cent decline in its core earnings for the year to December.
'2006 won't be terribly different from 2005 in the sense that residential completions will be very low for us, and that would tend to offset improvement in the commercial side of the business,' chief executive Nicholas Sallnow-Smith said yesterday.
In Hong Kong, its residential projects Lai Sing Court and Victoria Road will be started this year, while profits will not be booked until they are completed in 2008.
In Beijing, phase three of Central Park will be completed next year, followed by phase four in 2008.