Hongkong Land Holdings reported that its net profit for 2009 had reached US$1.64 billion, compared to its US$109 million net loss in 2008.
According to the property developer, the reasons behind the company’s achievement are the strong contribution from residential developments and continuing high demand for retail and office space in HK’s Central District.
Its directors are recommending US 10 cents final dividend per share for 2009, which will provide a total dividend of US 16 cents per share this year. It has increased 23 percent from the total dividend share in 2008.
HK Land also said that the poor economic conditions and a projected supply surplus drove rental rates in the Singapore office market down during the first nine months of 2009. However, improvement was seen in the final quarter of 2009, and stability of supply has returned to the market.
The two completed commercial investment property interests of the company remained fully let. The joint venture project – Marina Bay Financial Centre – is making good progress with more than 60 percent of its commercial office space now pre-committed. The completion of the two phases is scheduled in 2010 and 2012, respectively, with the first phase now 81 percent fully let.
The company expects its 2010 earnings to continue to benefit from steady rental rates and high occupancy levels, together with the completion of its residential developments. But some uncertainty remains over the durability and strength of the economic recovery.