Hang Lung profit hits $3.2b as 'V.3' strategy offsets 83% sales drop

The company maintained its dividends.

Hang Lung Properties Limited expects a gradual recovery in Mainland China’s retail leasing market through 2026, driven by its "Hang Lung V.3" expansion strategy and a rebound in the Mainland’s luxury retail sector.

Whilst the company reported an underlying net profit of $3.2b in 2025—a 3% increase over the previous year—it saw total revenue fall 11% to approximately $10b, due to an 83% decline in property sales, which amounted to $264m.

Property leasing declined 1% to about $9.4b, as rental revenue in Mainland China remained flat in RMB terms.

Malls in the Mainland achieved a 1% increase in revenue, with year-end occupancy at 96%, whilst the office portfolio experienced an 8% decline, as tenants pursued cost-driven relocations amidst high market vacancy.

Portfolio revenue in Hong Kong fell 2% to approximately $3b, whilst retail occupancy remained stable at 95%, and office occupancy rose to 90%, supported by demand from the professional services sector and the "hello" rewards program.

The hotel segment emerged as a high-growth area, with revenue surging 57% to $297m, fuelled by the first full year of operations at Grand Hyatt Kunming.

Property sales fell to $264m in 2025, as developers recognised fewer units from The Aperture in Hong Kong compared to previous project peaks.

The board recommended a final dividend of 40 cents, maintaining the full-year payout at 52 cents per share, Hang Lung stated in its annual report.