In the first half of 2023, the total rental income of Hang Lung Properties increased by 4% year-on-year, which was the first year-on-year growth of rental income since 2020, among which the rental income in the Mainland hit the highest ever.
On July 31, Hang Lung Properties (00101.HK) and Hang Lung Group (00010.HK) announced their results for the first half of 2023. Among them, the total income of Hang Lung Properties in the first half of the year was approximately HK$5.237 billion, a year-on-year decrease of 1%; the total income of Hang Lung Group in the first half of the year Approximately HK$5.525 billion, a year-on-year decrease of 1%. In the first half of the year, the net profit attributable to shareholders of Hang Lung Properties was approximately HK$2.394 billion, a year-on-year increase of 23%; the net profit attributable to shareholders of Hang Lung Group was approximately HK$1.682 billion, a year-on-year increase of 17%.
Financial data show that in the first half of 2023, Hang Lung Group’s total property leasing revenue was approximately HK$5.523 billion, a year-on-year increase of 4%. Among them, the mainland property leasing income was approximately HK$3.775 billion, a year-on-year increase of 5%; the Hong Kong property leasing income was approximately HK$1.748 billion, a year-on-year increase of 4%.
Hang Lung pointed out that the growth of property rental income was mainly driven by the property portfolio in the Mainland, and the performance of the Hong Kong property portfolio has also begun to pick up. Compared with the same period last year, it recorded the first rental income growth since 2020.
Many high-end shopping malls in the Mainland are nearly fully rented
From the perspective of property leasing types in the Mainland, the leasing income from shopping malls was about 2.496 billion yuan, a year-on-year increase of 13%; the rental income of office buildings was about 701 million yuan, a year-on-year increase of 4%; the rental income of residential and serviced apartments was about 74 million yuan Renminbi, the same as the same period last year; hotel leasing revenue was about 62 million yuan, a year-on-year increase of 130%.
Hang Lung pointed out that during the reporting period, Hang Lung performed steadily in high-end shopping malls in the Mainland. The revenue of Shanghai Hang Lung Plaza and Shanghai Grand Gateway 66 recorded growth of 23% and 11% respectively compared with the same period last year. The leasing income of high-end shopping malls outside Shanghai also increased by 11% compared with the same period last year.
At the same time, the office portfolio continues to bring reliable growth and income sources to the Group. The leasing income of Hang Lung Properties and Hang Lung Group’s mainland office portfolio increased by 6% and 4% respectively, mainly due to the performance of Shanghai Hang Lung Plaza and the business growth of newly completed projects, including office buildings completed in Kunming and Wuhan in recent years. In addition, benefiting from the relaxation of travel restrictions, the Group’s hotel operating income more than doubled year-on-year.
According to the data disclosed by Hang Lung Group, as of the end of the reporting period, the occupancy rate of Shanghai Hang Lung Plaza reached 100%, and the occupancy rate of Shanghai Ganghui Hang Lung Plaza reached 98%. In addition, the occupancy rates of Wuxi Hang Lung Plaza and Kunming Hang Lung Plaza reached 99% and 97% respectively, close to full occupancy.
“Mainland rental income has never declined”
In terms of properties in Hong Kong, Hang Lung Group pointed out that with the resumption of customs clearance between Hong Kong and the Mainland, the Hong Kong economy will recover steadily in the first half of 2023, and the recovery of the retail market will be particularly obvious.
According to the data disclosed by Hang Lung Group, during the reporting period, the rental income of retail properties was approximately HK$1.019 billion, a year-on-year increase of 6%, and the occupancy rate at the end of the period reached 97%. 88%; residential and serviced apartments were approximately HK$122 million, a year-on-year decrease of 1%, and the occupancy rate at the end of the period reached 66%.
In terms of property sales, during the reporting period, Hang Lung Group sold 4 parking spaces and earned HK$2 million in property sales revenue.
As of the end of the reporting period, the total cash and bank deposit balance of Hang Lung Group was approximately HK$6.018 billion.
Chen Qizong, chairman of Hang Lung Group and Hang Lung Properties, said: “In the past six months, our rental income (in RMB terms) in the Mainland has been the highest ever. Despite the slow economic growth, we have been able to continue to achieve good results. In fact, in the past In the past 20 years, our rental income in the Mainland has never declined, and even maintained a steady growth during the past three years of the epidemic. However, there are still many uncertainties at home and abroad. After 2023 The situation is also unpredictable. In this case, we will strive to improve operational efficiency and increase the productivity of various projects. At the same time, we have a series of development projects, including Hangzhou Hang Lung Plaza, as well as some hotel and residential development projects in the Mainland .Our team is working tirelessly to create more value for our shareholders.”
The author of this article: Tang Yingying, the source of this article:surging newsthe original title: “Hang Lung Group’s high-end shopping malls in the Mainland were nearly fully rented in the first half of the year, Chen Qizong: The rental income in the Mainland has never declined in the past 20 years”
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2023-08-01 01:31:00
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