SINO Land Co saw its interim profit dip three per cent to $566.13 million in the six months ended December 31. The group was at pains to point out there were significant property gains yet to be booked in the second half to June and rental income was growing steadily, leading to respectable profit growth for the full year. Earnings per share on a fully-diluted basis fell 12 per cent. The dividend was the same at eight cents a share. Sino Land's parent and holding company, Tsim Sha Tsui Properties, saw net profit rise 4.7 per cent to $356.29 million, with earnings per share on a fully-diluted basis falling 5.8 per cent to 28.8 cents. The dividend was a flat eight cents. At Sino Land, it is understood about half of the total issue of convertible bonds late last year have been converted. The issue in October represented a conversion into 225.6 million shares, or 11.49 per cent of the existing issued share capital. Turnover at the company rose 9.77 per cent to $1.15 billion. In the second half, the group is expected to book gains on the wholly owned Avon Park, the 50 per cent-owned Parc Oasis phase five and the 33.3 per cent-owned No 1 Hung To Road. ''Pre-sale activities of initial phases of these projects have been encouraging with satisfactory prices being achieved,'' said chairman Robert Ng Chee Siong. The group yesterday was stressing the growth and importance placed on recurring rental income. Investment property represented 4.4 million sq ft of land bank valued at about $23.4 billion. Rental income is expected to be some 30 to 36 per cent of total income in the future. It is estimated it will be in the $800 million to $900 million range this year. The acquisition of five sites has enlarged the gross floor area at Sino Land by 1.06 million sq ft upon development. The total land bank at the group stands at around 12.5 million sq ft. Redevelopment of No 1 May Road on the Peak into luxury flats and Ahafa Cargo Centre at Kowloon Bay into industrial office space is also planned. Under a revaluation by Chesterton Petty, the group's new consolidated net tangible asset amounted to more than $32 billion or $16.32 a share. Of this, hotels, which are due to be spun off this year by way of introduction to the exchange, amount to about $1.25 a share. On Sino Land's business prospects, Mr Ng said: ''The directors are positive that they will generate significant profits for Sino Land and the company for the whole financial year.'' As a centre for servicing China, the growth in the Hong Kong office and rental market was expected to remain strong. ''With relatively low interest rates and improving income earnings generated by sustained economic growth and deepening of China's market reform, the group is confident about the outlook for the Hong Kong property market,'' he said. The five acquired sites figured in the company's statement were four industrial areas in Kwun Tong and a residential area in Kowloon. ''These well-located sites have good development potential and will ensure the growth of the group's development profits in coming years,'' said Mr Ng. The redevelopment of the Peak and the air cargo sites will add to the investment property portfolio, taking the space available to more than 550,000 sq ft of new gross floor areas. Property development this year is expected to be boosted to $1.39 billion, up 229 per cent. This will represent 65 per cent of profit against 31 per cent from property investment, nothing from equity investment and four per cent from hotels.
