Update | Hysan malls shine in weak retail market, core net profit up 7.5 per cent

Hong Kong landlord Hysan Development increased its core net profit by 7.5 per cent in the first half to HK$1.2 billion through events designed to attract new shoppers and spur spending at its Causeway Bay shopping malls.

Profit attributable to shareholders, however, fell 20.7 per cent to HK$2.3 billion as property revaluation gains dipped as property prices appreciated less than last year.

Tenant sales at its core retail portfolio, including Hysan Place, Lee Gardens and Lee Theatre in the Causeway Bay shopping district, rose around 40 per cent in the first half from a year earlier, Hysan said, far outperforming a 1.6 per cent decline in the overall retail sales of Hong Kong as the city suffered slower growth in tourist arrivals and weaker spending.

“The group expects a steady performance for the rest of the year, while being in a good position to explore further investment opportunities,” chairman Irene Lee Yun-lien said.

“Furthermore, as retailers and landlords adapt to the changes in shopping patterns, including that of the rising prominence of e-commerce, we are confident the retail sector will be able to weather the market volatility.”

The company’s shares closed up 0.4 per cent at HK$33.9 yesterday. It said it plans to pay an interim dividend of 25 HK cents per share.

Stripping out strong sales growth at its Apple store, tenant sales growth at Hysan Place would turn slightly negative from 80 per cent growth, said the company’s deputy chairman and chief executive Lau Siu-chuen.