Causeway Bay landlord Hysan posts 2pc drop in recurring underlying profit last year

Hysan Development (0014) said its recurring underlying profit dipped 1.9 percent to HK$1.9 billion last year and kept the final dividend unchanged at 81 HK cents. 

Reported profit, which includes fair value changes of investment properties and non-core property investment business, jumped 8 times to HK$315 million.

Shares of Hysan slumped nearly 7 percent after results.

Turnover increased 1.6 percent year-on-year to HK$3.5 billion, of which, retail turnover rose 2.6 percent to HK$1.7 billion. 

New and expanded luxury flagships, together with a diverse selection of exciting, curated tenants, continue to enhance rental income, the company, Causeway Bay’s biggest landlord said.

Overall retail rental reversion stayed positive in the period and occupancy improved from 92 percent to 95 percent, Hysan said. 

Office turnover was flat at HK$1.5 billion, as occupancy rose 4 percentage points to 94 percent, helping to alleviate the impact of negative rental reversions

Lee Garden Eight, a one-million-square-foot commercial development slated for completion in the third quarter, will expand its Lee Gardens leasable portfolio by around 30 percent, it said.