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Sandy Li

Hysan Development saw its interim profit jump 412.98 per cent to $882.18 million in the six months to June 30 due to the absence of provisions and better property sales.

 Last year, the property-investment company reported first-half earnings of $171.97 million after booking $450 million in provisions for the fall in value of securities investments.

 Despite the surge in earnings, chairman Lee Hon-chiu expressed caution about the leasing sector.

 'The overall property leasing market remains slow although it appears that downward pressures have begun to ease,' he said.

 The office leasing market had seen keen competition among developers with weak demand, he said.

 In the retail market, rents remained stagnant although the sector was showing more resilience than last year.

 Mr Lee, also chairman of the stock exchange, said Hysan was continuing to strengthen its financial position by further reducing debt and maximising the return on its property portfolio.

 The company declared an interim dividend of 10 cents, unchanged from last year.

 Hysan also announced a scrip dividend-alternative plan aimed at enhancing cash-flow.

 GK Goh Securities property analyst Roger Luk said the result was in line with market expectations.

 He said Hysan's strong earnings growth was mainly boosted by the sale of 36 units at No 3 Garden Terrace in Mid-Levels.

 Hysan said it had generated $620.81 million from the sales, which analysts estimated had yielded a net profit of $450 million.

 During the period, Mr Luk estimated Hysan's interest expenses had dropped to $200 million - about 25 per cent lower than a year earlier - amid efforts to reduce debts.

 He said Hysan had cut debt to about $6 billion from $7 billion last year.

 Mr Luk forecast Hysan's full-year profit would be about $1.2 billion.

 Earnings per share were 85.43 cents, up 410.94 per cent from 16.72 cents.

 Turnover was down 22.43 per cent to $2 billion while operating profit rose 30.39 per cent to $953.26 million.

 Hysan said demand for luxury residential accommodation remained soft. Its residential portfolio had an occupancy rate of 87 per cent.

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Profits in 412pc leap for Hysan