Hong Kong developer Sino Land to give special dividend after core profit rises by 218 per cent
One-off gain helps Hong Kong developer offset sharp drop in property sales in July to December period
Hong Kong developer Sino Land said on Wednesday it will pay out a special dividend after posting a 218.6 per cent jump in underlying profit for the July to December period. Its earnings were helped by a one-off gain from the disposal of a development in Chengdu, which also offset a sharp decline in property sales.
The special dividend of 45 HK cents will be given on top of an interim dividend of 13 HK cents.
The underlying net profit attributed to shareholders, excluding the effect of fair value charged on investment properties and fair value gains such as the 20 per cent gain retained for The Palazzo in Chengdu, was HK$8.73 billion, compared with HK$2.74 billion in 2016, according to a filing with the Hong Kong stock exchange on Wednesday.
The underlying profit was within the range forecast – HK$8.38 billion and HK$9.61 billion – by Goldman Sachs and Morgan Stanley.
The company’s revenue plunged by 63.8 per cent to HK$3.93 billion while property sales tumbled by 51.9 per cent to HK$4.56 billion.
“The group will continue to maintain a policy of selectively and continuously replenishing its land bank, which will enable it to strengthen earnings and shareholders’ value,” said chairman Robert Ng Chee Siong.