Kerry Properties' contracted sales jump 23% to HK$14.7bn in FY 2014

It's 23% more than the company's target.

It has been noted that in terms of contracted sales, Kerry Properties achieved HK$ 11.1bn from projects in HK, and HK$ 3.6bn from projects in the PRC, totalling HK$14.7bn in FY 2014.

According to a release from Kerry Properties, this represents a 23% overachievement of the full year sales target of HK$ 12bn.

In HK, key projects sold include The Summa (launched at the beginning of the year and was 100% sold by the year end), Three Ede Road, 8 LaSalle and Dragons Range which were successfully launched in the second half of the year. Total contracted sales also includes the disposal of Lion Rise Mall for HK$1.4 bn during 2014

In the PRC, key projects sold include new project launches at Putian Arcadia Court Ph 1 and Nanchang Arcadia Court Ph 1, and other inventory units of our Hangzhou, Chengdu, Tianjin, Tangshan, Shenyang, Changsha and Ningbo residential projects.

Here's more from Kerry Properties:

In pursuance of the Group’s strategy to develop and operate large scale mixed-use investment properties in prime locations of major cities in the PRC, property rental and hotel revenue increased 99% YoY to HK$ 3.5 bn and gross profit increased 128% YoY to HK$1.9 bn in FY 2014.

Property rental increase was mainly from Jing An Kerry Centre, Beijing Kerry Centre and Shenzhen Kerry Plaza Ph II in PRC.

In particular, Jing An Kerry Centre’s Phase II office units were delivered and the retail mall was opened in 2013. As at 31 December 2014, 88% of the office (2013: 43%) and 94% of the retail space (2013: 83%) were occupied . Together with Ph I, total annual rental revenue of Jingan Kerry Centre, excluding hotel, reached HK$1.0 bn.

Hotel revenue increase mainly came from two new Shangri-La Hotels in Shanghai Jing An and Shenyang with operations commencing in 2H 2013, and the newly renovated Kerry Hotel in Beijing.

The Group’s underlying profit dropped slightly to HK$4.4 bn in FY 2014. A smaller valuation gain on the Group’s investment properties was recorded in FY 2014 as FY 2013 reflected a higher valuation for Jing An Kerry Centre upon its full completion.

Coupled with the absence of the one-off gain of HK$4.3 bn arising from the spin-off of Kerry Logistics Network Limited (“Kerry Logistics”) recorded in the year ended 31 December 2013, profit attributable to shareholders for the year ended 31 December 2014 decreased 49% to HK$6.8 bn.

Net asset value increased by 5.7% from beginning of the year to HK$ 55.43 per share as of December 31, 2014.

Balance sheet position is solid, with HK$ 11.4bn in cash and bank balances and HK$ 13.8bn in available undrawn bank loan facilities, making up a total of HK$ 25.2bn in available funds as of December 31, 2014. Gearing lowered to 28.5% as of December 31, 2014 from 31.0% as of December 31, 2013.

Final dividend per share rose 9% to HK$ 0.60 with full year payout ratio being 29.6%.

Subsequent to the reporting period, the Group increased its land bank by acquiring a site in Qianhai, Shenzhen, PRC, for RMB3.9 bn in January 2015 and a site in Beacon Hill, Kowloon, HK, for HK$2.4 bn in February 2015 through public land sales.