Highly geared Great Eagle Holdings said yesterday it would continue to reduce a debt burden made heavier by recent interest-rate rises.
The property company said it had sold one floor of the Langham Place Office Tower in Mongkok and planned to dispose of six more floors as part of a move to cut its gearing ratio.
The company said it was satisfied with the initial response for its Langham Place office space but did not disclose the latest sales results.
Great Eagle, which owns the Langham Place hotel and commercial complex and Citibank Plaza in Central, yesterday reported net profit of $2.14 billion for the six months to June, up almost 20 times from the $107.91 million recorded in the same period last year.
The result was helped by investment property revaluation gains of $2.5 billion after the adoption of new accounting standards.
Basic earnings per share were $3.64, up from 18 cents in the same period last year. The company will keep the dividend payout at 3.5 cents per share.
Profit before the adoption of the new accounting standards was $120 million - $53 million lower than the previous period. The company said this was mainly because of higher interest expenses. Net finance costs for the six months to June rose 111 per cent to $325 million, compared with $154 million in the same period last year.
