Hong Kong Land H1 profit tumbles 4%

Caused mainly by a smaller valuation gain.

Hong Kong Land net profit fell to US$598 million in the first half of the year year-on-year. Revenue, however, rose 90.6% to US$912 million in the sameperiod, up from US$478.4 million year-on-year.

The group recorded a net gain of US$79 million following an independent valuation of its investment properties in the first half, including its share of properties in joint ventures. This compares with a US$308 million gain in the first half of 2012.

Hong Kong Land gained from higher rents of its commercial properties and the completion of two large residential projects in Singapore. In Hong Kong, the limited new supply of office and retail space is supporting positive rental reversions.

The company said growth in its key residential markets remains affected by government measures to dampen prices, particularly in the premium sector.

It said conditions in the Hong Kong office leasing market have shown some improvement and positive rental reversions are expected to continue for the remainder of the year.