Hongkong Land Hldgs Ltd Interim Management Statement (1470L)
April 28 2020 - 5:20AM
UK Regulatory
TIDMHKLD TIDMJAR TIDMJDS
RNS Number : 1470L
Hongkong Land Hldgs Ltd
28 April 2020
The following announcement was issued today to a Regulatory
Information Service approved by the Financial Conduct Authority in
the United Kingdom.
HONGKONG LAND HOLDINGS LIMITED
Interim Management Statement
28th April 2020 - Hongkong Land Holdings Limited has today
issued an Interim Management Statement for the first quarter of
2020.
The Group's performance in the period was negatively impacted by
the COVID-19 pandemic and the measures taken to control it,
particularly in relation to contracted sales in the Development
Properties business, and retail rent in the Investment Properties
business, while the Group's overall financial position remained
strong.
It is too early to forecast with accuracy the impact of COVID-19
on the business, although it is evident that the Group's full year
performance will be impacted by a delay in the timing of profit
recognition in respect of Development Properties on the Chinese
Mainland primarily due to construction delays, and a reduced
contribution from the Group's retail Investment Properties
portfolio due to the provision of temporary rent relief.
The Group's financial position remains strong, with sufficient
liquidity to fund its ongoing commitments, including land payments
for its recently secured project in the West Bund area of Shanghai.
Net debt at 31st March 2019 was US$3.9 billion, US$263 million
higher than the position at the end of 2019. Net debt is expected
to increase as committed land and other payments are made.
Committed liquidity after taking into account the West Bund land
payment is estimated to be approximately US$2.0 billion, compared
to US$3.2 billion at the end of 2019.
The wellbeing of our employees, tenants and customers is a top
priority and we have taken a number of actions to mitigate the
impact of the pandemic, including the adoption of a range of health
and safety measures at the Group's properties.
During these difficult times, the ongoing dedication and
commitment of our colleagues across the Group have been
instrumental in safeguarding the wellbeing of our tenants and
customers. We are grateful for their resilience and
professionalism.
In Investment Properties, there was a stable contribution in the
quarter from the office portfolio. The Hong Kong office leasing
market has, however, become subdued, with few enquiries since the
end of January. Vacancy increased to 4.3% at 31st March 2020,
compared to 2.9% at 31st December 2019. On a committed basis,
vacancy was 3.7%. The Group's Central retail portfolio saw vacancy
increase to 1.4%, compared to 0.3% at the end of 2019. On a
committed basis, vacancy was also 1.4%. Retail sentiment has
deteriorated further and the Hong Kong government's various
anti-pandemic measures have impacted our tenants to varying
degrees, with a small number being required to temporarily close.
As a result, the Group continues to provide temporary rent relief
to support its retail tenants.
Rental reversions in the Group's Singapore office portfolio
continue to be positive, although reversions will likely moderate
during the remainder of the year. Vacancy increased to 5.5% at the
end of March, compared with 5.0% at 31st December 2019. On a
committed basis, vacancy remained low at 1.0%.
In Beijing, WF CENTRAL experienced a significant decline in
tenant sales and footfall during the period, and has provided rent
relief to tenants. In recent weeks, there has been an improvement
in trading.
In Development Properties, on the Chinese Mainland the Group's
sales offices were closed and construction activities were all
suspended for some two months as a result of the impact of the
pandemic, but operations have since resumed. In the first quarter,
the Group's attributable interest in contracted sales on the
Chinese Mainland was US$107 million, compared to US$193 million in
the equivalent period in 2019. Sales activity has continued to
recover during April, although it has not yet normalised.
In Singapore, the Group's attributable interest in contracted
sales was US$170 million in the quarter, compared to US$116 million
in the equivalent period in 2019. Market sentiment has since become
more cautious and construction activities have had to be suspended
temporarily by government measures to contain COVID-19. Contracted
sales levels at the Group's projects in the rest of Southeast Asia
have also been adversely impacted by subdued demand in the
period.
Hongkong Land is a major listed property investment, management
and development group. The Group owns and manages more than 850,000
sq. m. of prime office and luxury retail property in key Asian
cities, principally in Hong Kong, Singapore, Beijing and Jakarta.
The Group also has a number of high quality residential, commercial
and mixed-use projects under development in cities across Greater
China and Southeast Asia. In Singapore, its subsidiary, MCL Land,
is a well-established residential developer. Hongkong Land Holdings
Limited is incorporated in Bermuda and has a standard listing on
the London Stock Exchange, with secondary listings in Bermuda and
Singapore. The Group's assets and investments are managed from Hong
Kong by Hongkong Land Limited. Hongkong Land is a member of the
Jardine Matheson Group.
- end -
For further information, please contact:
Hongkong Land Limited
Robert Wong (852) 2842 8428
Simon Dixon (852) 2842 8101
Brunswick Group Limited
Kate Holgate (852) 3512 5047
This and other Group announcements can be accessed through the
Internet at 'www.hkland.com'.
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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