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Hong Kong’s Henderson Land reports lower first-half profit, says global headwinds, Covid-19 curbs make for sombre outlook
- Lower underlying profit mainly because of the absence of a one-off gain developer recognised last year
- Firm hopes that Hong Kong will soon resume quarantine-free travel, which will bode well for economy, property market, chairmen say
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Henderson Land Development, one of Hong Kong’s biggest property developers, reported a 34 per cent year-on-year decline in first-half profit to HK$5.1 billion (US$654.6 million) on Tuesday.
The lower underlying profit was mainly because of the absence of a one-off gain it recognised last year from Miramar Hotel and Investment Company becoming a Henderson Land subsidiary in 2020, according to a filing with the Hong Kong stock exchange.
The developer founded by billionaire Lee Shau-kee, Hong Kong’s second-wealthiest man with a net worth of US$30.6 billion according to Forbes, also saw gross rental income decline by 2 per cent to HK$3.2 billion in this period, as tough Covid-19 curbs implemented in the early part of the year dampened retail sales in Hong Kong. As of the end of June, 93 per cent of the company’s major rental properties were occupied.
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Henderson Land has proposed a dividend of HK$0.50 per share to be payable on September 20. Its shares closed 1.6 per cent lower at HK$27.25 apiece on Tuesday.
Amid the coronavirus pandemic, Russia’s invasion of Ukraine, geopolitical tensions between China and the US, and interest rate increases caused by widespread inflation in various major economies, “there is increasing fear that a worldwide recession is imminent”, Lee Ka Kit and Lee Ka Shing, Lee Shau-kee’s sons and Henderson Land’s chairmen, said in a statement on Tuesday.
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“The group hopes that Hong Kong will soon resume quarantine-free travel, which will bode well for the overall economy, as well as the property market in Hong Kong,” they added.
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