Hong Kong commercial property developer Hysan Development (0014) said its first half net profit plunged 82.4 percent from a year earlier to HK$75 million, hit by a revaluation loss on investment properties as the office sector remained under pressure from global economic uncertainties.
The company recorded a HK$964 million fair value loss on investment properties, sharply higher than the HK$197 million loss a year ago.
It posted a 1.2 percent year-on-year rise in first-half underlying profit to HK$1.03 billion, and maintained its first interim dividend at 27 HK cents per share.
Revenue grew 2.2 percent to HK$1.73 billion. Retail revenue rose 2.1 percent to HK$862 million on an optimized tenant mix and new luxury flagship stores, which helped attract high-quality tenants and boost sales.
Retail occupancy in Hysan’s Hong Kong portfolio rose to 94 percent at end-June from 92 percent at end-2024, with rental reversions on renewals, rent reviews and new leases mostly positive in the first half of this year.
Office occupancy improved to 92 percent from 90 percent, helping to cushion the impact of negative rental reversions. Office revenue climbed 0.8 percent to HK$750 million.
Turnover in Hysan’s residential leasing portfolio rose 12.4 percent to HK$118 million in the first half from HK$105 million a year earlier, while occupancy slipped to 70 percent at end-June from 73 percent at end-2024. The average rental reversion in the sector was positive for renewals, rent reviews and new lettings, the company said.
STAFF REPORTER
