New | Hong Kong developers up interim dividend payouts in sign of confidence in market outlook

Hong Kong’s major developers have raised interim dividend payouts in the first half of this year, a move that underlines their confidence they can meet annual sales targets amid a slowing mainland economy  and an imminent rate rise that could dent home buying demand. Henderson Land Development was the most generous with a 12 per cent higher interim dividend payout to  its shareholders after core profit rose 5.2 per cent year on year to HK$5.29 billion.

Tycoon Lee Shau-kee’s property flagship will pay a first-half dividend of 38 HK cents per share amounting to HK$1.25 billion.

Property and logistics conglomerate Wheelock and Co  proposed to increase its interim dividend payout by 10.38 per cent to 42.5 HK cents per share, or HK$864 million. The firm on Thursday reported its core first-half profit surged 78 per cent to HK$6.3 billon from a year ago.  

Swire Properties increased  its interim dividend 4.5 per cent year on year to 23 HK cents per share, which will cost HK$1.34 billion. Its core interim profit rose 4.3 per cent to HK$3.94 billion for the six months to June.

“We note that most  are willing to raise their interim dividend, signalling that  they remain  optimistic about their business outlook in the second half of this year despite  concerns  over uncertainties in the Chinese economy and potential US rate rises,” said Lee Wee Liat,  managing director, regional head of property research, BNP Paribas.

In the first half, he said developers managed to achieve a surge in sales revenue as most projects had generated strong sales outcome coupled with lesser capital expenditure required in the mainland where the property sector has seen a correction.