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HONG KONG - Hongkong Land Holdings Ltd reported an 11% increase in underlying profit excluding China provisions to US$320 million for the first half of 2025, as the company makes significant progress on its capital recycling initiatives.
The property developer and investor has secured 33% of its US$4 billion capital recycling target set for 2027, including a landmark transaction with the Hong Kong Stock Exchange involving the sale of office floors and retail space in One Exchange Square for HK$6.3 billion (US$810 million).
The company’s net asset value per share increased to US$13.62 as of June 30, up from US$13.57 at the end of 2024, marking the first increase since 2018. This improvement was attributed to stable valuations of Hong Kong prime properties and the company’s share buyback program.
Contributions from the Hong Kong portfolio declined due to lower office rents and ongoing renovations at the LANDMARK, where 33% of lettable space is currently under renovation. Average office rents in Hong Kong decreased to HK$95 per square foot from HK$103 per square foot in the same period last year.
The group’s Central office portfolio in Hong Kong saw a slight improvement in vacancy rates, declining to 6.9% on a committed basis at the end of June 2025, compared to 7.1% at the end of 2024. This compares favorably to the wider Central Grade A office market vacancy rate of 11.8%.
In Singapore, the office portfolio performed well with a low vacancy rate of 2.0% and positive rental reversions, with average rents increasing to S$11.4 per square foot from S$11.1 per square foot in the prior year.
The company maintained its interim dividend at US¢6.00 per share. Net debt declined by US$0.2 billion to US$4.9 billion, with the group maintaining a strong financial position.
"Capital recycling continues to be prioritised to reduce net debt and increase investment capacity, with a number of significant initiatives currently under way," said Michael Smith, Chief Executive of Hongkong Land, in a statement based on the company’s press release.
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