Buoyed by the revaluation of its property assets and foreign-exchange hedging contracts last year, Jardine Matheson Holdings expects a better period ahead for its property business, especially with its mainland forays. 'The property division may be quieter this year but we have a strong pipeline of works,' said Percy Weatherall, in his last annual results media briefing as Jardines managing director yesterday. The British hong, which is engaged in property development, finance, retail and hotel operations, said it had strengthened its ability to invest in Asian property, particularly in high-end residential projects in China. Excluding one-off items, the firm made underlying profits of US$463 million last year, up 17 per cent from 2004 - representing a 19 per cent jump in earnings per share to US$1.33. The company said earnings were buoyed by certain mark-to-market foreign exchange hedging contracts, which yielded gains after losses in 2004. Without this, the group's underlying annual profit growth would have been closer to 10 per cent. Another major profit driver was the revaluation of the investment properties held by Hongkong Land Holdings, which is 34 per cent held by Jardines. Net asset value per share rose 36 per cent to US$14.33 while net gearing dropped from 30 per cent to 20 per cent, or US$1.8 billion, excluding the US$2 billion in car loans shouldered by wholly owned subsidiary Astra, which is engaged in car-financing. Mr Weatherall expects group profitability this year to be affected by a lack of new residential projects, a lag in the rental cycle, and the eight-month US$140 million renovation of its flagship Mandarin Oriental hotel in Central. Still, he sees good prospects for the group in the medium term, largely due to its strong office portfolio. About 44 per cent of the underlying earnings came from Southeast Asia last year, but Jardines sees good potential in north Asia this year, especially in China. 'We have a good start in China with the completion of a Beijing property project,' Mr Weatherall said, adding that Jardines had secured development rights for a low-rise property project in Chongqing with a gross site area of 450,000 square metres. Mr Weatherall, who joined the board in 1999, has been with the Jardines Group since 1976. He said he might still spend two or three months in Hong Kong each year after relinquishing all senior positions in the group's member companies at the end of this month. Mr Weatherall, who owns 5.39 per cent of Jardines, will be spending more time in Scotland to serve as a director of Matheson & Co. All his positions will be taken over by Anthony Nightingale, one of the group's executive directors. Jardine Strategic Holdings also delivered a similar increase in underlying profit over the same period. Jardine Matheson holds 80 per cent of Jardine Strategic, which in turn controls 52 per cent of Jardine Matheson.