Sino Land profit rises 14% as property losses narrow, but core earnings fall
Developer adds to land bank despite pressure on mall rents, as e-commerce and outbound travel reshape Hong Kong’s retail market
Sino Land’s annual profit rose 14 per cent as losses on its investment properties narrowed, although a decline in underlying earnings pointed to continued pressure on its core business.
Net profit attributable to shareholders rose to HK$4.59 billion (US$585 million) in the year ended June 30, from HK$4.02 billion a year earlier, the Hong Kong developer said on Tuesday. Losses from the revaluation of investment properties narrowed to HK$192 million from HK$1.08 billion.
Strip out those valuation changes, however, and the picture was less upbeat. Underlying profit fell 6.4 per cent to HK$4.79 billion.
The divergence was also evident in Sino’s investment property portfolio. Occupancy edged up to 90 per cent from 89.6 per cent a year earlier, while attributable gross rental revenue fell 1.5 per cent to HK$3.43 billion.