Hysan 2015 profit up 5.5pc to HK$2.3b
The Causeway Bay landlord cautioned that ‘adjustments’ in high-end retailing will continue
Hysan Development, one of the largest commercial landlords in Causeway Bay, reported underlying profit rose 5.5 per cent last year but warned challenges lie ahead as a downturn in retailing is likely to continue.
The developer, which owns 4.1 million square feet of retail, office and residential investment properties in Hong Kong, announced core profit, excluding the revaluation gain on investment properties, amounted to HK$2.28 billion for the year to December.
“This year will see continued adjustments, particularly in the high-end retail sector, while volatility in the currency and equity markets and slower China growth will contribute to a challenging year,” Hysan chairman Irene Lee Yun-lien said in a filing to the Hong Kong stock exchange on Tuesday.
Turnover from its retail portfolio including Hysan Place, Lee Gardens and Lee Theatre in the Causeway Bay shopping district rose 6.4 per cent to HK$3.43 billion. The retail segment contributed 56 per cent of the group’s overall turnover.
The result was at the low end of market forecasts of 5 per cent to 10 per cent growth.
Hysan said the rise in profit principally reflected higher average occupancy and positive rental reversion. Its retail portfolio has achieved rental renewal, reviews and new lettings with average increase of about 25 per cent last year.
Except residential rental, Hysan recorded growth for its retail and office spaces.