Henderson Land’s profit slumps 29 per cent to US$1.2 billion, aims to launch 7,655 flats in Hong Kong this year
- Henderson said it would launch 10 projects comprising 7,655 flats in areas such as Kai Tak, Cheung Sha Wan, Hung Hom and Kowloon City this year
- The company said it has commenced foundation works at Site 3 of New Central Harbourfront, which was acquired in 2021
The developer, founded by billionaire and Hong Kong’s second-wealthiest man Lee Shau-kee, said the drop in profit was partly due to the absence of a one-off gain it booked in 2021 in connection with Miramar Hotel and Investment becoming its subsidiary, according to a filing with the Hong Kong stock exchange on Tuesday.
“The decrease in underlying profit was partly due to an attributable gain of HK$1.8 billion, which was recognised in the previous year,” the filing said.
Property sales were impacted by the “uncertain outlook of the global economy” as monetary authorities across the globe, including the US, raised interest rates to curb surging consumer prices last year, the developer added.
“The global economy is fraught with many uncertainties, such as geopolitical tensions and inflation,” Henderson’s co-chairmen Lee Ka-kit and Lee Ka-shing said in a joint statement.
Hong Kong is benefiting from the relaxation of anti-pandemic measures globally and the reopening of the border with the mainland is expediting the recovery, they said.
With the government rolling out various schemes to revitalise the economy, including another round of consumption vouchers worth HK$5,000 for Hong Kong residents as well as a bid to attract more overseas talent, the economy is likely to benefit further, they added.
Henderson said it plans to sell 7,655 new residential units this year at 10 projects in Kai Tak, Cheung Sha Wan, Hung Hom and Kowloon City among others. Its land bank amounts to 25.2 million sq ft, including 15 million sq ft that has yet to be completed, the company added.
The project’s first phase is expected to be completed in 2026 and the second phase in 2032.
Henderson Land declared a final dividend of HK$1.30 per share, which will be paid to shareholders on June 23.
Henderson Land’s shares closed 0.37 per cent lower at HK$26.60.
Separately, Henderson Investment, which runs department stores in Hong Kong, said profit attributable to equity shareholders fell 85 per cent to HK$5 million last year.
The company said it was hit hard by Hong Kong’s fifth wave of the Covid-19 pandemic.
It added that with the improvement in the Covid-19 situation as well as the government’s launch of a new round of the consumption voucher scheme, retail sales improved.
“However, the stalled inbound tourism, uncertain economic outlook and financial market turmoil continued to weigh on the local retail sector,” Henderson Investment said, noting that the value of total retail sales in Hong Kong decreased by 0.9 per cent year on year in 2022.
Henderson Investment declared a dividend of HK$0.10, which will be paid to shareholders on June 19.
The company’s shares rose 1.82 per cent to HK$0.28.
