Themis Qi

Hysan Development's (0014) underlying profit, excluding the property revaluation gains, dipped by 14 percent yearly to HK$1.83 billion.

It blamed the slide on Hong Kong's bumpy recovery and Hongkongers who headed north for shopping.

The largest landlord in Causeway Bay slashed its final dividend by 31 percent to 81 cents per share due to economic uncertainties ahead, with the full-year dividend falling 25 percent to 108 HK cents.

Chairwoman Irene Lee Yun-Lien said that the company is saving funds for development in the next 100 years. Lee said she still has confidence in Hong Kong and saw a lot of investment opportunities but Hysan needs to be cautious now.

Chief financial officer Roger Hao Shu-yan said it would be impractical to maintain the payout ratio, underlining the landlord's prudent cash flow management strategy.

Hysan's celebrated its 100th anniversary last year but paid no special dividend.

For 2023, the net loss narrowed by 24.6 percent yearly to HK$872 million, mainly due to non-cash fair value decrease of investment properties of HK$2.76 billion

Despite China's reopening, the turnover fell by over 7 percent to HK$3.2 billion.

Revenue from offices fell 6.7 percent to HK$1.47 billion and the retail segment reported the same drop to HK$1.5 billion. The residential business, though accounting for a tiny part of total revenue, also slid 14 percent yearly to HK$205 million.

Occupancy for office portfolio stood at 89 percent with the rental of renewals going downward, and that for retail shops reached 97 percent.

Shares of Hysan fell 4 percent yesterday.

Irene Lee, executive director and chief operating office Ricky Lui, left, and Roger Hao. SING TAO

Hysan slashes payout amid uncertainty