Hang Lung Properties : Continued Growth in Hang Lung’s Property Leasing Business

　
(Hong Kong, January 28, 2016) Hang Lung Properties Limited (HKSE Stock Code: 00101) and Hang Lung Group Limited (HKSE Stock Code: 00010) today announced financial results for the year ended December 31, 2015.

2015 Annual Performance at a Glance:

Growth in property leasing business has moderated. Rental revenue of Hang Lung Properties and Hang Lung Group both increased by 7% to HK$7,751 million and HK$8,330 million, respectively, and rental operating profit was both up 2% year-on-year.

Mr. Ronnie C. Chan, Chairman of Hang Lung Group and Hang Lung Properties, said, 'Mainland China's economy was weak and retail growth, especially for high-end goods, has slowed further. Our rental performance was encouraging in the face of a difficult economic environment. This could not be achieved without the steadfast management efforts to capture new market niches and consumer appeal.'

'The asset enhancement initiatives for our mature Hong Kong and mainland China investment properties are going ahead. The programs are progressing well for our two flagship properties in Shanghai, where Plaza 66 started its enhancement work last June, while work for Grand Gateway 66 will start in late 2016. In Hong Kong, more enhancement programs are being planned after Grand Plaza and Fashion Walk. These initiatives will further boost our competitiveness and allow us to fare better than the overall industry amidst the weak market condition.' Mr. Chan added.

Rental revenue of our Mainland leasing portfolio for Hang Lung Properties and Hang Lung Group grew 7% and 6% to HK$4,194 million and HK$4,625 million, respectively. Benefitting from asset enhancement initiatives and ensuing rent increases, revenue of our Hong Kong leasing portfolio of Hang Lung Properties and Hang Lung Group both advanced 8% year-on-year.

We continued to adopt prudent and comprehensive financial management strategies to maintain a strong financial position with a high degree of flexibility to meet Hang Lung's capital commitments and long-term expansion.

The Boards of Directors of Hang Lung Properties and Hang Lung Group have proposed a final dividend of HK58 cents per share and HK61 cents per share, respectively, to be paid on May 18, 2016, to shareholders registered as at May 5, 2016.