Flagship development helps power 38.1pc rise in earnings at Hysan Development
Hysan Development said on Monday that first-half turnover and recurring underlying profit both rose almost 40 per cent in the six months to June 30, partly as a result of its new flagship development, Hysan Place.
The company said in a statement that turnover rose 38.1 per cent to HK$1.5 billion, from HK$1.1 billion in the previous corresponding period, and recurring underlying profit also rose by 38.1 per cent to HK$1.03 billion from HK$748 million previously.
“This reflected Hysan Place’s contribution and the increase in revenue generated from our leasing activities,” the company said. Hysan Place’s retail section opened in August last year.
Visitors to its retail portfolio averaged close to 130,000 a day in June, it said. “Hysan Place made a significant contribution to our retail portfolio both in terms of turnover and tenant mix,” the company said.
The company said demand was subdued but the grade A office leasing market continued to see “tight supply, and rental levels in core locations, including Causeway Bay, were stable.
Hysan said the Hong Kong economy remained stable during the first half, with private consumption resilient “despite concerns over the possible tapering of United States quantitative easing measures, slowing growth in China and negative impact on the stock market towards the end of the review period”.
If the rental contribution from Hysan Place was excluded, the like-for-like turnover increase would be 14 per cent, it said.
It said retail sector turnover grew 65.5 per cent to HK$844 million, from HK$510 million in the previous corresponding period, including turnover rent of HK$64 million.
“In addition, strong positive rental reversions on renewals/reviews and new lettings were recorded in the first half of 2013. After completing renovations at Lee Theatre Plaza, the group’s retail portfolio was virtually fully-let as of June 30. As of December 31 last year, it was 93 per cent let.
Visitors to its retail portfolio averaged close to 130,000 a day in June, the company said.
“Hysan Place made a significant contribution to our retail portfolio both in terms of turnover and tenant mix,” the company said.