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LONDON - Hongkong Land Holdings Limited has announced an Interim Management Statement for the first quarter of 2025, detailing its strategic progress and financial performance. The company is advancing its Strategic Vision 2035, which includes the development of high-end commercial assets in key Asian cities and a capital recycling goal of $10 billion over a decade.
In a notable move, Hongkong Land sold parts of One Exchange Square to the Hong Kong Stock Exchange for HK$6.3 billion ($810 million). The transaction, part of the company’s capital recycling initiative, is expected to be completed in stages within 18 months, contributing to the company’s target of recycling at least $4 billion by the end of 2027.
The company also launched a $200 million share buyback program, funded by this sale and other capital recycling efforts from 2024. These strategic actions aim to drive sustainable growth and enhance shareholder returns.
Financially, Hongkong Land’s underlying profit for the quarter remained consistent with the previous year, despite lower contributions from its Central Portfolio in Hong Kong. This was offset by higher earnings from its build-to-sell business, particularly from sales completions in mainland China.
The company reported a strong financial position with net cash inflows in the first quarter, reducing net debt to $4.9 billion as of March 31, 2025. Net gearing stood at 16%, with committed liquidity at $3.2 billion.
In terms of property investments, the Central office portfolio in Hong Kong showed improved leasing momentum, with physical vacancy at 8.3% and committed vacancy at 7.3%. However, the LANDMARK retail portfolio in Hong Kong saw lower contributions due to disruptions from ongoing renovations. In Singapore, positive rental reversions were driven by tight supply and high demand, resulting in low vacancy rates.
The Group has ceased investing in the build-to-sell segment, focusing on completing existing projects and returning capital. Sales on the Chinese mainland and in Singapore remained robust.
Looking ahead, Hongkong Land anticipates lower contributions from its Hong Kong Central Portfolio due to negative office rental reversions and a significant renovation of the LANDMARK retail space. However, the company’s full-year underlying earnings guidance for 2025 remains unchanged.
This information is based on a press release statement issued by Hongkong Land Holdings Limited.
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