Hongkong Land swings to $1.61b profit after 2024 loss

The company recovered despite lower underlying earnings.

Hongkong Land Holdings Limited reported a profit attributable to shareholders of $1.61b (US$1.26b) for the year ended 31 December 2025, compared to a loss of $1.78b (US$1.39b) in 2024, according to its financial statement.

Earnings per share were 74.05 SG cents (57.85 US cents), compared to a loss of 80.33 SG cents (62.76 US cents) per share in the previous year.

Underlying profit decreased 8% to $586.24m (US$458m), whilst underlying earnings per share fell to 26.85 SG cents (20.98 US cents) from 28.93 SG cents (22.60 US cents) in 2024.

The board recommended a final dividend of 24.32 SG cents (19.00 US cents) per share, bringing the total dividend for the year to 32.00 SG cents (25.00 US cents) per share, an increase of 9% from 2024.

Net debt stood at $4.58b (US$3.58b) at the end of 2025, a 30% reduction from $6.52b (US$5.09b) in 2024. Capital recycling initiatives reached $4.61b (US$3.6b) by February 2026.

These included the disposal of floors at One Exchange Square for $1.02b (US$0.8b) and the sale of a thirty-three and one-third percent interest in Marina Bay Financial Centre Tower 3 for $1.66b (US$1.3b).

The group exited build-to-sell operations in Singapore and Malaysia through a $832m (US$650m) divestment. In the Chinese mainland, it recorded post-tax non-cash provisions of $476.16m (US$372m) on inventory.

Hongkong Land also reclassified its Chinese mainland medium-term lease portfolio, valued at $4.86b (US$3.8b), from build-to-sell assets to investment properties.

Office vacancy was 6.0% at year-end, down from 7.1% in 2024. Average office rents in the Central portfolio were $15.41 (HK$94) per sq ft, a 7% decrease, whilst average retail rents at the Landmark were $38.68 (HK$236) per sq ft, a 12% increase.

In Singapore, office vacancy stood at 2.7%, whilst average office rents were $11.5 per sq ft. The group established the Singapore Central Private Real Estate Fund in February 2026 with $8.19b (US$6.4b) in assets under management.

Total assets under management reached $64b (US$50b) in February 2026. The group reduced shares in issuance by 2.4% through a $422.40m (US$330m) share buyback programme. Capital commitments at year-end were $1.45b (US$1.13b).

(US$1 = SG$1.28)

(HK$1 = SG$0.16)