Hong Kong developer CK Asset (1113) expects to become a net cash company in the future, giving it greater capacity to pursue further investments.
The company maintained a net gearing ratio of around 4 percent as of end-2024 and is open to investing in quality projects that meet its internal rate of return targets, not limited to infrastructure, chairman Victor Li Tzar-kuoi said at the company’s annual general meeting.
Its infrastructure business has continued to grow in recent years and remains one of the best-performing segments in the developer’s portfolio.
The chairman said Hong Kong’s office market will take time to recover and expressed hope that its office leasing performance will improve when the market rebounds.
"No industry enjoys uninterrupted long-term growth, and demand in Hong Kong’s retail and office property sectors remains sluggish," Li said.
When asked specifically about occupancy rates at Cheung Kong Center II, a commercial office building, Li did not provide a direct response. He instead revealed that the group’s overall office occupancy rate is around 86 percent, adding that "the lower costs of Cheung Kong Center II make it easier to achieve positive returns."
Li emphasized that 88 percent of the group’s earnings come from recurring income items, such as rental properties, global infrastructure operations, and its portfolio of social infrastructure investments – all of which have been performing well. He is also cautiously optimistic about the outlook for its hotel and serviced apartment businesses.
Li said that land purchases were relatively low during the peak price period five to six years ago, so property sales revenue has naturally been lower in the past two years. "It was part of the plan rather than an unexpected outcome," he said.
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