Hang Lung Properties profit slumps 46% on lower leasing profits, higher finance costs
Hong Kong developer Hang Lung Properties experienced a significant decline in earnings for 2024, with profits dropping by 45.8% compared to the previous year. The company's net profit attributable to shareholders fell to HK$2.1 billion, a sharp decrease from HK$3.97 billion, due to reduced operating leasing profits and increased finance costs. This also included a net revaluation loss on some properties, highlighting the financial challenges faced by the developer.
The decline in revenue was driven by a 6% drop in overall rental income, with a 4% decrease from its mainland China portfolio and a more pronounced 9% fall in Hong Kong. Hang Lung Properties attributed part of this downturn to weakened consumer confidence in mainland China, affected by lackluster economic conditions, ongoing geopolitical tensions, and a sluggish global economy. Although the Chinese central government has introduced stimulus measures aimed at improving the economic outlook, the company remains cautious about their potential impact. As a result, both rental revenue and tenant sales from its mainland mall portfolio experienced declines of 3% and 14%, respectively, underscoring the broader challenges in the real estate sector.
via SCMP Full Text Feed
Hong Kong developer Hang Lung Properties experienced a significant decline in earnings for 2024, with profits dropping by 45.8% compared to the previous year. The company's net profit attributable to shareholders fell to HK$2.1 billion, a sharp decrease from HK$3.97 billion, due to reduced operating leasing profits and increased finance costs. This also included a net revaluation loss on some properties, highlighting the financial challenges faced by the developer.
The decline in revenue was driven by a 6% drop in overall rental income, with a 4% decrease from its mainland China portfolio and a more pronounced 9% fall in Hong Kong. Hang Lung Properties attributed part of this downturn to weakened consumer confidence in mainland China, affected by lackluster economic conditions, ongoing geopolitical tensions, and a sluggish global economy. Although the Chinese central government has introduced stimulus measures aimed at improving the economic outlook, the company remains cautious about their potential impact. As a result, both rental revenue and tenant sales from its mainland mall portfolio experienced declines of 3% and 14%, respectively, underscoring the broader challenges in the real estate sector.
via SCMP Full Text Feed
