Hongkong Land ratings bolstered by soaring revenues

2013 revenues soared to $1.857 billion.

Moody's Investors Service says Hongkong Land Holdings Limited's (HKLH) strong results for 2013 robustly support its A3 issuer rating and the A2 issuer rating of The Hongkong Land Company Ltd.

The outlook for all ratings remains stable.

Here’s more from Moody’s:

"HKLH's 2013 strong results and credit metrics were driven by higher recognition of revenues from sales of properties and its stable rental income, mainly from its Central portfolio in Hong Kong," says Kaven Tsang, a Moody's Vice President and Senior Analyst.

HKLH's 2013 revenues soared 67% year-on-year to USD1.857 billion as the company showed more development projects for recognition in Singapore and China.

Meanwhile, its rental income grew 9% year-on-year, benefitting from positive rental revisions for its Central office portfolio.

Its office vacancy rate further remained low at 5% as Hong Kong continues to demonstrate a limited new supply of grade-A offices in its central business district.

The company's retail portfolio remained fully let, similar to 2012, with a healthy 18% increase in average net rent year-on-year.

This limited supply situation, which is expected to persist, will support the Central portfolio's rental and occupancy rates in the near-to-medium term.

But Moody's expects positive rental revisions for its Central office portfolio will slow in 2014.