Shui On Land (0272) said its debt payment has passed its peak and saw signs that mainalnd property market is recovering gradually.

Shui On said it has about 8.3 billion yuan worth of loans due this year, and so far has already repaid 5.6 billion yuan, or about 70 percent of the total, so the company has confidence in its overall liquidity.

Chiarman Vincent Lo Hong-sui expects the Chinese property sector will recover in a gradual manner under the supportive measures rolled by mainland governments and positive signals from the top policymakers in Beijing. But there will be adjustments from time to time in the process, Lo said, adding that Shui On will invest prudently and continue to pursue its light asset strategy.

Vice chairman Stephanie Lo Bo-yue is optimistic about the performance of the high-end residential market in Shanghai, noting that although retail sales in the city have declined slightly, consumers are inclined towards experiential or emotional fulfillment-related spiritual spending, which has brought opportunities to its two commercial projects Panlong Tiandi and Hong Shou Fang

But she also noted that office buildings are facing pressure on rents as tenants are relatively cautious in controlling costs.

Shui On Land posted a net profit of 180 million yuan (HK$192.8 million) last year, slumping by 78 percent from one year ago, as property sales remained sluggish.

The developer focusing on mainland China declared a final cash dividend of 3.6 HK cents, 38 percent lower than one year earlier.

Total rental and related income, including joint ventures and associates, increased 9 percent year-on-year to 3.55 billion yuan, thanks to the additional contributions from two Shanghai projects — Panlong Tiandi and Hong Shou Fang. Both opened in 2023 and continued to achieve high foot traffic and strong sales growth, the firm said.

For Shui On itself, the revenue for last year dipped 16 percent to 8.17 billion yuan, as the income from property sales shrank 26 percent to 4.36 billion yuan.

STAFF REPORTER

Shui On's commercial project Hong Shou Fang in Shanghai.

Shui On Land rental rises due to two Shanghai projects