Hongkong Land's H1 earnings soar 147%

SINGAPORE - A sizeable gain from the revaluation of investment properties saw earnings at Hongkong Land Holdings rocket 147 per cent in the first half of this year.

The property group reported a net profit of US$3.13 billion (S$4.26 billion) for the six months ended June 30, well up from the US$1.26 billion in the same period a year earlier. This was after taking into account a net gain of US$2.61 billion arising from the revaluation of its investment properties.

Revenue came in at US$1.3 billion, higher than the US$782.8 million previously, while underlying profit jumped 32 per cent to US$517 million.

Hongkong Land said on Thursday that the group's investment properties produced a higher contribution due to increased average rents in Hong Kong.

Increased sales at its development properties - residential and mixed-use projects - brought improved profits in mainland China and Singapore.

Earnings per share was 132.83 US cents, more than double the 53.70 US cents previously. Net asset value per share jumped 9 per cent to US$14.54 as at June 30, compared with the US$13.30 as at Dec 31 last year.

The group has recommended an interim dividend of six US cents per share.

Hongkong Land shares closed up 0.7 per cent or five US cents to US$7.59 on Thursday, before the results were announced.