Hongkong Land's Underlying Net Rises

"Hongkong Land's Underlying Net Rises | AboutHK.Com - more information about HK"

Hongkong Land Holdings Ltd. said its underlying first-half net profit rose 16%, helped by higher net rental incomes in spite of weak commercial-property markets in Hong Kong and Singapore. Hongkong Land, one of Hong Kong's biggest commercial landlords, said Thursday that underlying profit was US$281 million for the six months ended June 30, up from $242 million in the year-earlier period. The underlying figure excludes losses or gains from the revaluation of properties. The company, which is a unit of Singapore-listed conglomerate Jardine Matheson Holdings Ltd., booked an interim net loss of $402 million once property revaluation losses of $923 million were included. This was down from a net profit of $1.63 billion in the year-earlier period. The property investor and developer recorded rental income from its commercial properties of $316 million in the first half of the year, up from $251 million last year, helped by average rental increases in a weak market. Average rents, especially those in Hong Kong's Central district, where Hongkong Land dominates, could fall in the second half of the year, as financial firms move to cheaper districts to cut costs amid the downturn, analysts said. "While residential property markets have shown some recent signs of recovery, commercial property conditions are expected to remain challenging for the remainder of 2009," Chairman Simon Keswick said. But Mr. Keswick said he expected Hongkong Land to see rental incomes continue to rise, with profits for the full year getting a boost from the completion of some residential projects. Write to Joyce Li at joyce.li@dowjones.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it Comments Please login to post comments or replies.