Themis Qi

Henderson Land Development (0012) said its first-half net profit plunged 47 percent year-on-year to HK$3.17 billion but maintained an interim dividend of HK$0.5 per share.

The underlying profit, after excluding the value loss of HK$2.27 billion caused by the revaluation of its properties, amounted to HK$5.4 billion in the first half, down by 10 percent from one year ago.

The land lots of 1.45 million square feet in Fanling North and Kwu Tung North New Development Area, which were resumed by the government, contributed an underlying profit of nearly HK$1.1 billion.

First-half revenue from property development rose by 14 percent to HK$4.9 billion after contracted sales jumped 33 percent to HK$8.95 billion.

Rentals in Hong Kong inched up 3 percent to HK$3.4 billion. The Henderson, the new landmark office building in Central, posted a committed occupancy rate of close to 60 percent.

In mainland China, property sales saw revenue drop 10 percent to 2.59 billion yuan (HK$2.85 billion) while gross rentals also edged down 1 percent to HK$1.04 billion.

Meanwhile, Kerry Properties' (0683) net profit also slumped 55 percent to HK$788 million in the first six months of the year, partly citing the one-off provision for certain land lots held by the developer in the Kwu Tung North New Development Area.

Underlying net profit, after excluding one-off charges and property revaluation changes, posted a 19 percent drop from one year ago to HK$1.4 billion, for which Kerry blamed lower revenue recognition.

Kerry also kept its interim dividend unchanged at HK$0.4 per share.

Though Kerry remains optimistic in the long run, it expects the general demand for residential properties in Hong Kong and mainland China to remain subdued in the foreseeable future.

The Henderson has a committed occupancy rate of 60 percent. BLOOMBERG

Henderson Land maintains payout as profit plunges