Property sales contracted 56 per cent year on year to HK$2.18 billion from HK$5.01 billion while rental income rose 1 per cent to HK$565 million from HK$558 million a year ago. Contribution from the company's hotel operation increased 25 per cent to HK$87.7 million. Net finance costs fell 31 per cent to HK$158.3 million.

Chairman Robert Ng Chee Siong said the group had replenished its land bank with an additional 2.7 million sq ft attributable gross floor area. This brought its developable land bank to 9.5 million sq ft, enough to meet its development needs for four to five years, he said. About 79 per cent of the land bank was earmarked for residential development.

Major acquisitions during the first half included a 1.4 million sq ft residential redevelopment in Tsuen Wan, a 1.32 million sq ft residential project in Sha Tin and a site in Tsuen Wan. Mr Ng said the global economic slowdown had held back Hong Kong's economic recovery but continuing developments in the mainland were positive for the company.

Sino Land's full-year earnings were forecast to rise 150.19 per cent to HK$657.48 million, according to a Thomson First Call consensus of 20 analysts ahead of the interim results announcement. Earnings per share were expected to increase 157.14 per cent to 18 HK cents.

It is uncertain if analysts will revise forecasts following the disappointing first-half result.

Sino Land shares yesterday rose five HK cents to close at HK$2.20.

Parent company Tsim Sha Tsui Properties plunged into the red due to an unrealised holding loss of HK$214.75 million on investments in securities.

It reported a HK$52.46 million loss compared with a net profit of HK$1.83 million previously. No interim dividend was recommended. Subsidiary Sino Hotels' first-half profit jumped 67.62 per cent to HK$42.71 million from HK$25.48 million. Earnings per share soared 64.7 per cent to 5.32 HK cents. The recommended interim dividend of 1.5 HK cents was up from one HK cent.

Graphic: sino19gbz