Henderson Land records $6 billion underlying profit last year with 95pc of The Henderson leased

Hong Kong developer Henderson Land Development (0012) said it recorded an underlying profit, which excluded fair value changes of investment properties, of HK$6.06 billion last year, and its iconic office building The Henderson in Central was 95 percent leased.

The SAR’s continuous efforts to attract enterprises for listing, coupled with the government’s proactive economic promotion efforts, including the accelerated development of the Northern Metropolis, talent admission policies are set to inject new impetus into the economy and provide sustained support for the property market in the future, chairmen Peter Lee Ka-kit and Martin Lee Ka-shing said. 

Despite “satisfactory residential sales” over the past six months, the firm decided to trim the final dividend by 41.5 percent to 76 HK cents for “prudent financial management” amid significant economic uncertainties caused by the Iran war, it said. 

The decrease in underlying earnings was partly due to a smaller gain from land resumption by the government in the year, the developer said.

Revenue rose 2 percent to HK$25.7 billion. Attributable revenue from property development in Hong Kong climbed 23 percent to HK$15.2 billion, and contracted sales in the city soared 71 percent to HK$19.27 billion. 

It plans to launch eight development projects in Hong Kong for sale this year, which, together with the unsold stock, will provide around 4,700 residential unit with 2.3 million square feet in gross floor area, as well as 180,000 sq ft of office/industrial space.

The average leasing rate for the group’s major investment properties was 93 percent last year.

It had a land bank of 40.5 million sq ft in gross floor area in the New Territories, remaining the largest holding among developers in the city.