Henderson Land underlying profit climbs 1.8% to $14.8b

It has nine developmental projects in urban areas planned for sale this year.

Henderson Land Development Company Limited has reported it generated $14.899b in underlying profit, reflecting a 1.8% rise from $14.64b in 2019.

Of this, $3.62b were from the transfer of its equity interests in their land lots in Wo Shang Wai, the New Territories.

The COVID-19 pandemic, however, decreased the value of rent and properties for the year, resulting in a fair value share loss after the revaluation of both its completed and under development investment properties.

This led to a $6.8b, or 40%, decrease in the reported profit attributable to equity shareholders for the year to $10.19b this year. In 2019, the reported profit amounted to $16.99b.

Reported earnings per share this year is $2.11, down from $3.51 in the previous year.

The board also recommended a final dividend of $1.30 per share for shareholders registered as members of the company by 9 June 2021. This is expected to be distributed by 21 June 2021.

Summing this up with the $0.5 interim dividend, the total dividend for 2020 will amount to $1.8 per share.

Despite the pandemic as well as the heightened tensions between the United States and China, the property market in Hong Kong managed to cushion the impact through the lower interest rates.

“Major central banks around the world implemented various easing measures and interest rates were thus kept at a low level. Benefitting from the low interest rate environment, the property market in Hong Kong remained resilient,” the chairmen’s statement read.

Henderson Land is currently led by chairmen Lee Ka Kit and Lee Ka Shing.

Property sales generated a total of $14.04b revenue and a pre-tax profit contribution of $7.7b during the year.

The property developer had launched residential projects, including “The Richmond” in mid-level west, “Two • Artlane” in Sai Ying Pun, “Aquila • Square Mile” in Mong Kok, and “Arbour” in Tsim Sha Tsui—all in urban areas.

The group’s contracted sales reached $8.035b by the end of the year. Meanwhile, contracted sales that have yet to be recognised amounted to $11.3b in Hong Kong and $10.69b in Mainland China.

The group also released the “Skypoint Royale” in Tuen Mun and “The Hampstead Reach” in Yuen Long for sale in February and March this year. After which, nine other development projects will be launched by the company in 2021.