Sino Land

Strong home sales, prices lift Sino Land's results

With leasing of office portfolio stable, firm's underlying profit rises 80.5pc in first half

PUBLISHED : Thursday, 28 February, 2013, 12:00am
UPDATED : Thursday, 28 February, 2013, 5:02am

Sino Land's underlying profit jumped 80.5 per cent to HK$4.48 billion in the six months to December due to strong property sales as home prices hit new highs.

Including the property revaluation surplus of HK$3.63 billion, net profit soared 75.8 per cent to HK$8.11 billion from HK$4.61 billion a year ago, the company said yesterday.

It proposed an interim dividend of 12 HK cents per share, up from 10 HK cents previously.

Contributions from property sales, including those of associates, were HK$3.88 billion, up 128 per cent from HK$1.7 billion a year ago, while gross rentals grew 9 per cent to HK$1.56 billion from HK$1.43 billion.

Sino Land's hefty increase in sales came as home prices rose more than 20 per cent last year. Sales comprised mainly residential units at the Coronation in West Kowloon, Park Summit in Mong Kok and Le Sommet in Xiamen. Almost all of the flats at the Coronation and Park Summit units have been sold. Le Sommet's sold out.

Sino Land said it had a land bank of about 40.5 million sq ft, of which 64 per cent was residential, 24.4 per cent commercial, 5.3 per cent industrial, 3.6 per cent car parks and 2.7 per cent hotels.

From July to January, the group acquired seven sites, adding 1.26 million square feet, mainly for residential projects.

The leasing performance of the group's office portfolio was stable during the period, with overall occupancy high and improved rental rates, it said.

As of December, the group had about 11.5 million sq ft of investment properties and hotels.

The group, including its associates' attributable share, had cash resources of about HK$19.52 billion as at December 31.

Sino Hotels' net profit rose 5.1 per cent to HK$134 million for the six months to December from HK$127.4 million a year earlier. Turnover fell 1.08 per cent to HK$174 million from HK$175.9 million. The company proposed an interim dividend of 4 HK cents per share, unchanged from the previous period.

Tsim Sha Tsui Properties said its underlying profit, excluding property revaluation surplus, rose 87.9 per cent to HK$2.27 billion. It proposed an interim dividend of 12 HK cents per share, against 10 HK cents previously.