Hongkong Land reports 2021 net loss narrowed

The Jardine House building in Central in Hong Kong, part of Hongkong Land's investment portfolio. Photo by Red John on UnsplashThe Jardine House building in Central in Hong Kong, part of Hongkong Land's investment portfolio. Photo by Red John on Unsplash

Hongkong Land reported Thursday its 2021 net loss narrowed to US$349.2 million, compared with 2020’s net loss of US$2.65 billion, weighed by the impact of the pandemic and lower valuations of investment properties.

Revenue for the 12 months ended 31 December grew to US$2.38 billion from US$2.09 billion in 2020, the property developer and investor said in a filing to SGX.

The company said it posted an underlying net profit, which excludes non-trading items, of US$966 million for 2021, up slightly from 2020’s US$963 million. Hongkong Land said it had 2021 net losses of US$1.32 billion due to lower valuations of its investment properties. 

Hongkong Land recommended a final dividend of 16 U.S. cents a share, for a total dividend of 22 U.S. cents for the year, unchanged from 2020. 

“Hongkong Land’s performance remained resilient in 2021 despite the continued impact of the pandemic and related travel restrictions. Profits from the group’s investment properties business were in line with the prior year. Retail rental income increased during the year, although this was offset by lower office rents in Hong Kong. Increased residential sales completions in China resulted in a higher contribution from the development properties business. Good progress was made on replenishing the group’s land bank, with nine new projects secured in China and three in Singapore,” Hongkong Land said.  

In the investment property segment, the office portfolio in Central in Hong Kong performed well overall, with rents declining less than the broader market, to an average office rent of HK$117 a square foot in 2021, compared with HK$120 in 2020, the company said. 

At year-end, committed vacancy was at 4.9 percent, compared with 5.9 percent at end-2020, the filing said.

The Central Landmark retail portfolio remained effectively fully occupied, with tenant sales improving modestly and average retail rents rising to HK$190 a square foot in 2021 from HK$164 in 2020 as temporary rent relief measures to tenants were reduced, Hongkong Land said.

In its outlook, Hongkong Land said it expected the prime investment properties portfolio would deliver a stable profit contribution in 2022, the development properties business was projected to post lower profits, mainly on the timing of sales completions in China. 

Read more details of Hongkong Land’s results.