Sino Land's underlying profit rose 25 per cent in the past financial year but the company expects challenges ahead amid a fall in home sales.
The developer said underlying profit, excluding revaluation gains, was HK$6.64 billion for the year to June, against HK$5.31 billion in the previous year.
The results are in line with market forecasts but analysts said the company's earnings growth would fall substantially this year, reflecting slower residential sales and the weakened property market.
Sino Land chairman Robert Ng Chee Siong said the city's property market had been undergoing changes as a result of economic and property-related policies.
"The group is mindful of the upcoming uncertainties in a challenging market and management will be responsive to market changes," Ng said.
His remarks came as home sales fell sharply in response to a series of government measures to curb rising housing prices since October last year.
Home sales last month fell to 3,986 deals from 8,714 in October last year, according to the Land Registry. In the circumstances, developers have started competing for buyers by offering more price incentives on new property releases.
International property consultant DTZ expects that mass housing market will drop 5 to 10 per cent this year, while prices of luxury flats will fall 10 to 15 per cent.
"The earnings growth of Sino Land will drop significantly this financial year as property sales slow," said Kenny Tang Sing-hing, a general manager at AMTD Financial Planning.
Sino Land said net profit, including property revaluation gains, was HK$11.69 billion in the past fiscal year, compared with HK$10.67 billion previously.
Profit contributors included the Coronation in West Kowloon, Providence Bay and Providence Peak in Tai Po, Park Summit in Mong Kok and Le Sommet in Xiamen.
Revenue from property sales, including property sales of associates recognised by the company, was HK$14.13 billion, against HK$7.15 billion in the previous year.
Net rental income increased 9 per cent to HK$2.77 billion, helped by higher rental rates on renewals, as well as improvements in occupancy levels of the existing rental portfolio.
The company said it had a land bank of 40.1 million square feet at the end of June, covering Hong Kong, mainland China and Singapore.
Directors declared a final dividend of 38 HK cents per share. Together with the interim dividend of 12 HK cents per share, the total dividend for the financial year is 50 HK cents per share, up from 46 HK cents previously.
Meanwhile, Sino Hotels' net profit rose 2.5 per cent to HK$240.8 million in the year to June, from HK$235 million in the previous year.
Turnover fell to HK$331.41 million from HK$339.41 million.
Tsim Sha Tsui Properties, the parent company of Sino Land, said underlying profit, excluding property revaluation surplus, increased 27.3 per cent to HK$3.42 billion in the year to June.
Net profit climbed to HK$5.98 billion from HK$5.38 billion.
It will pay a final dividend of 38 HK cents per share, raising the payout for the year to 50 HK cents per share.