Hang Lung Properties : Achieves Healthy Growth in Core Leasing Business Read More

Rental revenue from our leasing portfolio for Hang Lung Properties and Hang Lung Group increased to HK$4,118 million and HK$4,425 million, respectively, as a result of progressive tenant remixing and wide-ranging asset enhancement initiatives in Shanghai and Hong Kong to further heighten the competitiveness and attractiveness of our malls. The favorable business and consumption sentiment in both Hong Kong and the Mainland has boosted our results. Total operating profit of our leasing properties both increased by 8% to HK$3,117 million and HK$3,337 million for Hang Lung Properties and Hang Lung Group, respectively.

Commenting on the performance, Mr. Ronnie C. Chan, Chairman of Hang Lung Group and Hang Lung Properties, said, 'In the first half of 2018, our leasing performance was satisfactory as our projects were able to seize opportunities arising from the favorable economic environment. Our recent acquisition of a prime site for commercial development in Hangzhou has marked a new milestone for the Company. This, together with more projects coming on stream later this year and the next, will provide us with further impetus for sustainable growth.'

With a proactive approach in optimizing our trade mix and offerings, our Mainland portfolio has been able to capture these positive factors to produce favorable results in both revenue and retail sales. Rental revenue of our Mainland leasing portfolio for Hang Lung Properties and Hang Lung Group both increased 2% to RMB1,764 million and RMB1,948 million, respectively.

Mr. Chan added, 'Our second office tower in Wuxi was topped out recently and this will give us momentum for our expanding office leasing portfolio as the demand for premium office leasing in China intensifies. While expanding our footprint on the Mainland, it also goes beyond doubt that we will continue to invest in our home market. We shall continuously review and upgrade our assets in Hong Kong so as to optimize the value of, and returns on, our investments.'

In Hong Kong, rental revenue of the Hong Kong commercial portfolio for Hang Lung Properties and Hang Lung Group both increased 3% to HK$1,155 million and HK$1,166 million, respectively. This was brought about by the steady rental uplift across the portfolio and the rental contribution from Kingston in the Causeway Bay portfolio after completion of its asset enhancement initiative.

On financial management, the Company issued its first architecture-related Green Panda Bond on the Mainland this month. The move laid down a solid financial position for Hang Lung, enabling it to take full advantage of appropriate opportunities in the capital market as they arise and support its long-term growth to meet its capital commitments and continue its program of expansion.

The Boards of Directors of Hang Lung Properties and Hang Lung Group have declared an interim dividend of HK17 cents per share and HK19 cents per share, respectively, to be paid on September 27, 2018, to shareholders registered as at September 13, 2018.