REG - Hongkong Land Hldgs Jardine Matheson Hdg - 2025 PRELIMINARY RESULTS
05/03/2026 12:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260305:nRSE5374Va&default-theme=true
RNS Number : 5374V Hongkong Land Hldgs Ltd 05 March 2026
Announcement
5 March 2026
The following announcement was issued today to a Regulatory Information
Service approved by the Financial Conduct Authority in the United Kingdom.
HONGKONG LAND HOLDINGS LIMITED
2025 PRELIMINARY ANNOUNCEMENT OF RESULTS
Highlights
· Strong momentum on Strategic Vision 2035 transformation
· Cumulative capital recycled reached US$3.6 billion, 90% of 2027
target
· Net debt significantly reduced, primed to capture growth
opportunities
· Total Prime Properties portfolio valuation up 3% net of disposals
· Adjusted free cash flow remained strong despite lower contributions
from Hong Kong
· Full-year dividend at US¢25.0 per share, up 9%
"2025 was a landmark year for Hongkong Land. The Group made significant
progress on the initial phases of execution of its new strategy, having
delivered on a number of portfolios recycling initiatives, evolving our
capital allocation framework to focus on creating shareholder value, and
establishing its inaugural private real estate fund.
Overall trading performance for the year was solid despite underlying profits
being impacted by lower contributions from Hong Kong. The Group continues to
wind-down its build-to-sell business with lower profits in 2025 and impairment
of Chinese mainland inventory amidst challenging market conditions. We
expect underlying results to remain largely unchanged in 2026, with future
growth to come from improved market sentiment in Hong Kong, a growing Chinese
mainland portfolio and the Singapore fund management business.
The Group's financial position remains strong and is well positioned to take
advantage of potential new investment opportunities in selected Asia gateway
cities."
Michael T. Smith
Chief Executive
Results
Year ended 31 December
2025 2024 Change
US$m US$m %
Underlying profit attributable to shareholders((1)(2)(3)) 458 499 -8
Adjusted free cash flow((4)) 810 808 -
Profit/(loss) attributable to shareholders 1,263 (1,385) N/A
Shareholders' funds 30,798 29,940 +3
Net debt 3,577 5,088 -30
US¢ US¢ %
Underlying earnings per share((1)(2)(3)) 20.98 22.60 -7
Adjusted free cash flow per share((4)) 37.08 36.62 +1
Profit/(loss) per share 57.85 (62.76) N/A
Dividends per share 25.00 23.00 +9
US$ US$ %
Net asset value per share 14.30 13.57 +5
(1) The Group uses 'underlying profit attributable to shareholders' in its
internal financial reporting to distinguish between ongoing business
performance and non-trading items, as more fully described in Note 30 to the
financial statements.
(2) In light of the Group's announced strategic pivot to exit the
build-to-sell business, contributions from this segment has been reclassified
as non-trading. Underlying Profit represents results from prime properties
investment. Refer to Note 1 of the financial statements for further details
on the impact of this reclassification for FY 2024 and FY 2025.
(3) FY 2025 earnings contributions from prime properties investment and
build-to-sell segments, excluding Chinese mainland inventory provisions,
amounted to US$585 million or US¢26.78 per share.
(4) Cash flows from operating activities adjusted to include maintenance
capital expenditure and net cash flows from build-to-sell segment associates
and joint ventures. The metric excludes net proceeds from capital recycling
via disposals.
The final dividend of US¢19 per share will be payable on 13 May 2026, subject
to approval at the Annual General Meeting to be held on 7 May 2026, to
shareholders on the registers of members at the close of business on 20 March
2026.
HONGKONG LAND HOLDINGS LIMITED
PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Dear Shareholders,
After the Group's announcement in 2024 of a new strategic direction setting
out clear and ambitious 10-year growth objectives and targets to deliver
enhanced shareholder value, 2025 was a year of transformation and building
execution momentum focused on evolving Hongkong Land's business model.
Given the size and diversity of the Group's portfolio, execution of the new
strategy is expected to involve several implementation phases. The initial
phase of execution focusses on the recycling of capital and establishment of
deal sourcing and fundraising capabilities, with further phases involving the
securing third-party capital and deployment of capital into prime properties
investment opportunities.
We are encouraged by the strong endorsement from shareholders on our strategic
execution to date - total shareholder return based on 2025 volume-weighted
average price compared to the prior year was over 60%.
I am pleased with the progress we have made, although there remains more to do
to position the Group to deliver on our long-term growth ambitions.
EXCELLENT PROGRESS in 2025
In October 2024, the Board endorsed a new strategic direction for Hongkong
Land. Since then, the Group has delivered a number of significant
milestones:
· US$3.6 billion in capital recycling initiatives announced or
completed
· Wind down of nearly 40% of the build-to-sell business including
the divestment of the Group's business in Singapore and Malaysia
· Creation of an investment management team
· Establishment of the Group's inaugural private real estate fund -
the Singapore Central Private Real Estate Fund ('SCPREF')
In line with the Group's refreshed capital allocation framework, at least 80%
of net proceeds from its US$10 billion capital recycling program are to be
reinvested in new growth opportunities and subject to market conditions up to
20% in the buy-back and cancellation of its own shares, improving long-term
shareholder returns. Since April 2025, the Group has invested over US$330
million in share buybacks and reduced shares in issuance by 2.4%. The Group
also continues to increase dividends per share from US¢22.0 in 2023 to
US¢25.0 in 2025, with an aim of reaching its long-term goal of US¢44.0 by
2035.
BOARD & GOVERNANCE
The Board and its Committees, and senior management, together play a key role
in delivering against our priorities. The effective delivery of our strategy
depends on high quality debate around the boardroom table. As management
continues to focus on growing shareholder value and returns, the Board aims to
provide both challenge and support, with effective discussion and
decision-making.
We especially value the opportunity to leverage the industry expertise and
experience of the Company's Non-Executive Directors.
In November, we were delighted to welcome Alan Miyasaki as an Independent
Non-Executive Director and as a member of the Investment and Audit Committees.
Alan is a Senior Managing Director and Head of Real Estate Asia Acquisitions
at Blackstone, and has helped drive the establishment and growth of
Blackstone's Real Estate business in Asia since 2007.
We were also delighted to welcome Lincoln Pan, Chief Executive Officer of
Jardine Matheson Holdings Limited, the Company's parent, to the Board as a
Non-Executive Director. Lincoln was previously at PAG, the largest fully
diversified alternative investment business in the Asia Pacific region, where
he was a Partner and co-head of Private Equity and a member of the Group
Executive Committee.
These appointments reflect our ongoing focus on enhancing governance, as we
continue to strengthen the composition of our Board and Committees, improving
decision-making and bringing in relevant expertise to support management as
they execute the Group's strategy and build long-term shareholder value.
Stuart Grant stepped down from the Board and Audit Committee in May to join
Hongkong Land in an executive capacity as Chief Executive, Westbund Central
based in Shanghai. Stuart is well placed to provide dedicated leadership on
the execution of this iconic development, having spent 18 years at Blackstone
as Senior Managing Director of their Asian real estate business.
SUSTAINABILITY
The Group advanced its sustainability leadership, translating this into
tangible business outcomes including responsible investment, enhanced asset
resilience and strategic partnerships with our tenants and supply chain.
We were recognised again by the Global Real Estate Sustainability Benchmark
(GRESB) as Global Sector Leader (Diversified) for Development Benchmark and
Global Listed Sector Leader (Diversified - Office/Retail) for Standing
Investments Benchmark. These independent benchmarks reinforce our competitive
positioning in core Asian gateway markets and support investor demand across
private capital and public markets with positive implications for long-term
shareholder value.
The Group demonstrated its responsible investment commitment by becoming a
signatory to the United Nations Principles for Responsible Investment - an
international organisation that works to promote ESG factors within investment
decision-making. We launched our first private real estate fund - SCPREF which
focuses on ultra‑premium, green‑certified assets in Singapore - aligning
capital allocation with decarbonisation pathways and long‑duration cash
flows.
Execution against our 2030 science‑based targets remained on track in 2025.
Absolute Scope 1 and 2 emissions were reduced by 37% against a 2019 baseline.
Our integrated decarbonisation programme - renewable energy procurement,
targeted efficiency projects, and an AI‑powered Integrated Facility
Management Control Tower - continues to lower operating costs, reduce
volatility, and extend the economic life of our assets.
We also piloted Hong Kong's first tempered and laminated glass recycling
solution at Tomorrow's CENTRAL, supporting a 75% waste diversion target and
reducing embodied‑carbon intensity in future fit‑outs. These initiatives
differentiate our developments for occupiers seeking credible sustainability
solutions.
Tenant engagement deepened through the enhanced Sustainability Partnership
Programme at our Central Portfolio. By driving deeper collaboration and
measurable sustainability outcomes with tenants, we are improving retention
and protecting rental reversion potential across the portfolio.
To embed long‑term, measurable community partnerships into our strategy, we
launched the Hongkong Land Foundation. In 2025, we contributed over 9,800
volunteer hours, benefiting more than 70,000 people. We are deeply saddened by
the tragic fire in Tai Po and extend our heartfelt sympathies to the victims,
their families, and all those affected. Through the Hongkong Land Foundation,
we have donated HK$10 million to the Government announced fund for emergency
relief and HK$800,000 to The Hong Kong Federation of Youth Groups for
assisting affected students with essential supplies to help them resume their
education.
Looking ahead, we will continue to integrate sustainability into investment
decision making, development design, supply chain, and building operations.
This approach supports growth of a high performing, sustainable and resilient
portfolio mix aligned with our 2035 strategy.
OUTLOOK
The successful execution of multiple initiatives over the past year represents
meaningful steps forward in delivering the early phases of our strategy, as we
continue transforming Hongkong Land into a more disciplined, capital efficient
and growth-oriented company. While there remains much to do, I am confident
we will maintain our strong execution momentum and renewed focus on creating
shareholder value into 2026 and beyond.
Despite uncertain macro conditions in a number of the Group's key markets, I
am confident that our strategic focus on ultra-premium integrated commercial
assets in Asia gateway cities will continue to benefit from global flight to
quality trends, and deliver sustainable growth over the long-term.
On behalf of the Board, I would like to express my appreciation to our
shareholders for their continued support and endorsement of the Group's new
strategic direction and execution to date. I would also like to thank our
valued partners and the wider community for your continued trust and
support. Finally, I would like to thank our people for their ongoing
dedication and professionalism in providing high quality services and
offerings to our tenants and customers, as well as for their commitment in
driving the Group's success.
John Witt
Chairman
CHIEF EXECUTIVE'S REVIEW
2025 was a landmark year for Hongkong Land, as we took significant steps to
reshape our business and build investment capacity to advance our ambition to
become the leader in Asia's ultra‑premium integrated commercial property
sector. While operating conditions remained challenging in some market
segments, we delivered on several significant capital recycling initiatives,
established our inaugural private real estate fund, continued to drive
operational excellence across our core portfolios, and proactively managed
costs to further strengthen our financial position.
Building on the strategic clarity outlined in our Strategic Vision 2035, we
focused our efforts on simplifying the Group's portfolio, improving capital
efficiency, and strengthening the foundations for long‑term growth. Our
disciplined execution - ranging from asset divestments to working with
third-party capital partners and re-investing in our portfolio anchors -
demonstrated both the scarcity and resilience of our portfolios and our
commitment to positioning the business for the future.
DELIVERING ON OUR STRATEGIC PRIORITIES
Capital Recycling
We made substantial progress on capital recycling in 2025. Completed or
announced net proceeds recycled as at the end of February 2026 totalled US$3.6
billion, including the disposal of certain floors of One Exchange Square to
the Hong Kong Stock Exchange (US$0.8 billion), the recycling from the
build-to-sell segment and other assets (MCL Land: US$0.7 billion; Chinese
mainland & others: US$0.8 billion), as well as the formation of the
Singapore Central Private Real Estate Fund ('SCPREF') and resulting disposal
of our 33⅓% interest in Marina Bay Financial Centre Tower 3 ('MBFC Tower 3')
in Singapore (US$1.3 billion). This represents 90% of our target to recycle at
least US$4 billion by the end of 2027.
Wind Down of Build-to-Sell Business
In line with its announced strategic pivot, the Group no longer pursues
investments in its build-to-sell segment, and is focused on accelerating the
return of capital via divestments and inventory sales. During the year, the
Group made considerable progress in recycling capital from its build-to-sell
portfolio, realising some US$800 million from inventory sales primarily from
the Chinese mainland.
In October, the Group also completed its exit from the Singapore and Malaysia
build-to-sell business via the divestment of MCL Land to Sunway Group. The
transaction was undertaken at net asset value, with net proceeds recycled
amounting to over US$650 million.
On the Chinese mainland, the Group took proactive steps to accelerate the
return of capital from its build-to-sell portfolio, despite market conditions
remaining difficult during the year. An organisational restructuring was
initiated to optimise resourcing to retain expertise and ensure committed
projects are completed to the Group's usual high standards. The
restructuring has resulted in around US$15 million in cost savings for 2025,
and is expected to result in annual savings of approximately US$50 million by
2028.
As a result of deteriorating market conditions on the Chinese mainland, the
Group undertook a thorough review of the carrying value of its build-to-sell
inventory at year-end. In order to drive sales velocity and align pricing to
accelerate the return of capital, the Group recognised non-cash provisions of
US$372 million (post tax) on selected projects where realisable selling prices
have fallen below development cost.
Shareholder Returns
Net proceeds from capital recycling transactions have improved shareholder
returns and strengthened our balance sheet, building significant capacity for
new potential investment opportunities and investment in share buybacks.
We continued to enhance shareholder value through an active share buyback
programme financed by the proceeds from our capital recycling initiatives.
Total share buyback invested up to the end of February 2026 amounted to over
US$330 million, reducing our issued share capital by 2.4% and delivered
accretive returns to shareholders.
The buybacks together with an increase in dividends per share, from US¢23.0
in 2024 to US¢25.0 in 2025, reflect our confidence in the Group's strategic
direction and long-term prospects, and we expect to continue deploying
recycled capital into buybacks where valuations are attractive.
Third Party Capital
In February 2026, the Group announced the establishment of its first private
real estate fund - SCPREF with US$6.4 billion of assets under management
('AUM') with Qatar Investment Authority and APG Asset Management as founding
investors. SCPREF was seeded with some of Singapore's highest-quality
commercial real estate assets, including equity interests in One Raffles Quay,
Marina Bay Financial Centre Towers 1 and 2, One Raffles Link and Asia Square
Tower 1, representing 2.6 million sq. ft of effective net lettable area.
The fund represents a significant milestone in the execution of the Group's
strategy to build a scalable third-party capital platform, broadening our
investor base, and diversifying income through fee-based revenues. As the
manager of SCPREF, the Group intends to pursue growth opportunities of prime
commercial properties focusing on the Marina Bay and Orchard Road districts.
AN OVERVIEW OF OUR RESULTS
Underlying profits were lower than the prior year, primarily due to lower
contributions from the Hong Kong Central Portfolio. Rental reversions for
Hong Kong office were negative during the year, although leasing sentiment saw
steady improvement on the back of a recovery in capital market activity. The
Hong Kong retail portfolio saw temporary impact to rental income from the
ongoing Tomorrow's CENTRAL transformation. This was partially offset by a
strong performance from Singapore office, driven by effectively full occupancy
and positive reversions.
Hong Kong
The Group's Central office portfolio remains firmly positioned amongst some of
the most sought-after prime office space in the market, having continuing to
benefit from the global flight to quality trend despite subdued market
sentiment in recent years. Leasing momentum improved steadily throughout the
year, with significant increase in enquiry levels driven by the recovering
capital market sentiment and a robust IPO pipeline. Vacancy on a committed
basis declined to 6.0% by year-end, compared to 7.1% at the end of 2024.
Average rents during the year declined by 7% to HK$94 per sq. ft. The
weighted average lease expiry of the office portfolio at the end of 2025
remained healthy at 3.6 years.
The LANDMARK retail portfolio demonstrated strong resilience, with
contributions declining by only 8% compared to the prior year despite over
one-third of lettable space under renovation during the year. Overall customer
spending in 2025 declined marginally compared to the prior year but remained
the fourth highest over the past decade. The ultra-high-net-worth segment also
remained strong, with top-tier customer spending increasing 8% compared to
prior year, reflecting the continued appeal of LANDMARK as Hong Kong's premier
luxury destination. Average rents increased by 12% in 2025 to HK$236 per sq.
ft, due to positive rental reversions and a number of new long-term leases
becoming effective during the year. Excluding the impact of ongoing
renovations, LANDMARK remained effectively fully occupied.
Singapore
The Group's Singapore office portfolio delivered a solid performance during
the year, supported by tight supply dynamics and sustained flight-to-quality
demand in the central business district. Vacancy on a committed basis at the
Group's office portfolio was 2.7% at the end of 2025. Average rents in 2025
increased to S$11.5 per sq. ft from S$11.1 per sq. ft in 2024 due to the
positive rental reversions.
The Group's economic interest in its Singapore portfolio changed in February
2026 with the establishment of SCPREF. MBFC Tower 3 was sold at above its fair
market value with net proceeds of US$0.7 billion received on 31 December 2025.
The Group now has a circa 50% investment in SCPREF and will earn management
fees in its capacity as the fund manager.
Chinese Mainland & Macau
Contributions were lower this year mainly due to pre-opening costs incurred
for a number of pipeline projects on the Chinese mainland expected to launch
from 2027 onwards, and lower rents in Macau due to ongoing renovation works
and planned tenant movements.
Build-to-Sell
As the Group had moderated its pace of land banking since 2022 and no longer
deploys capital into new projects, earnings from the build-to-sell segment is
expected to continue declining as capital is recycled from the portfolio.
Excluding non-cash provisions recognised at year-end, contributions declined
by 44% to US$127 million in 2025.
To improve transparency of the Group's earnings, the build-to-sell segment has
been reclassified as a non-trading item, as the portfolio is no longer an area
of strategic focus for the Group.
Portfolio Valuations
As at 31 December 2025, the total valuation of the Group's portfolio of Prime
Properties Investment increased by 3% from the end of 2024. In Hong Kong,
the Central portfolio valuation increased for the first time since market
rents began to decline in 2019, primarily due to higher market rents for the
LANDMARK, as well as stable cap rates and market rents for office. Valuations
of the Singapore and Westbund Central portfolios also increased in the year,
reflecting improved rental outlooks. Valuations for the Group's investment
properties portfolio across other regions remained broadly unchanged.
In line with its new strategic focus on developing and managing prime
commercial assets, the Group has reclassified its assets previously held for
medium-term lease portfolio from the build-to-sell segment to investment
properties. This portfolio comprises, both existing and under development,
lifestyle retail, office, and residential assets on the Chinese mainland.
The Group's attributable interest in this portfolio amounted to US$3.8 billion
as at year-end. As these assets now form part of investment properties, they
will be fair market valued every six months.
The Group's AUM reflects gross asset values (on a 100% basis) of leasing
assets under the Prime Properties Investment segment in which the Group acts
as asset manager and retains an equity stake. At the end of February 2026,
the Group's AUM reached US$50 billion, benefiting from the establishment of
SCPREF and higher investment properties valuation.
PROGRESS ON MAJOR PORTFOLIO INITIATIVES
The Group's development pipeline reflects our strategic pivot toward
ultra-premium commercial properties in Asia gateway cities and positions us
for significant future rental growth as assets reach completion and
stabilisation.
In Hong Kong, substantial progress was made on the Tomorrow's CENTRAL
transformation of LANDMARK. In addition to the opening of Sotheby's flagship
retail space in 2024, another two of the ten flagship Maisons were opened in
late 2025. The new Prada flagship is the brand's largest Asia Pacific
boutique, spanning three floors and approximately 14,000 sq. ft of retail
space. Saint Laurent has its stunning duplex flagship store prominently
located on Queen's Road Central. These openings provide a glimpse of the
future of luxury retail in LANDMARK. Upon completion, LANDMARK will house 10
world-class multi-storey Maison destinations, over 200 retail stores and
around 100 F&B concepts, meeting luxury tenants' demand for expanded
experiential retail space to serve our deep pool of loyal and discerning
customers. Tomorrow's CENTRAL is just one example of how we work with our
partners - our willingness to invest in our own properties to unlock greater
value for our tenants to ensure we both achieve sustainable growth over the
long-term.
Our flagship Westbund Central development in Shanghai reached several key
milestones in 2025. Phase 2 of the project has a total GFA of 168,000 sq. m.
comprising four Grade-A office towers, rental apartments, and retail space.
The office component with a total GFA of 78,000 sq. m. has been fully
committed, with anchor tenants progressively taking possession - including the
Adidas and lululemon. Over 170 units of rental apartments were launched in
October 2025 and were over 50% occupied by year-end. Finally, the
lifestyle-focused retail component of Phase 2 is on track to open in mid-2026
having already achieved a pre-leasing rate of over 75%.
Other retail-led mixed-use projects in Suzhou and Chongqing also made steady
progress, with openings currently scheduled in 2027. These developments will
introduce new CENTRAL series destinations with integrated luxury retail
offerings, enhancing the Group's long-term presence in key Chinese mainland
markets.
2026 OUTLOOK
While the positive market momentum in Hong Kong and Singapore are likely to
continue into 2026, trading conditions on the Chinese mainland is expected to
remain challenging.
For 2026, the rental reversions for the Hong Kong office portfolio will remain
negative, although the magnitude of decline is expected to narrow as market
rents return to mild growth. While rents for best-in-class buildings in
Central have already stabilised with vacancies on a declining trend, the
positive impact on rental income will unfold steadily as leases expire and
rents revert to market levels. Operations at LANDMARK will continue to be
affected by Tomorrow's CENTRAL transformation, but positive rental reversions
are expected from the phased opening of new Mansions and other new concepts.
The Group also intends to pursue growth opportunities in Singapore via SCPREF,
as well as to manage costs and improve operating efficiency of existing
portfolios. Overall, we expect 2026 underlying profits to remain largely
unchanged compared to the prior year.
LOOKING FORWARD
Looking ahead, the Group remains relentlessly focused on executing its
strategy and progressing towards its long-term objectives. Having
established deal sourcing and fundraising capabilities, as well as its
inaugural private real estate fund, the Group is actively assessing both new
integrated commercial property projects, as well as acquisition opportunities
to grow SCPREF. Efforts to recycle capital from selective parts of the
Group's balance sheet and generate cash from the sale of build-to-sell
inventory will continue, further increasing new investment capacity. As we
enter the next phase of our multi‑year journey, we will continue to ensure
the Group maintains a strong financial position, as well as a disciplined and
consistent approach to capital allocation.
2026 will also be an important year to maintain the strong momentum built on
initiatives to grow our portfolio anchors, including Tomorrow's CENTRAL in
Hong Kong, and progressively launching the Group's pipeline of ultra-premium
properties currently under development - such as Westbund Central in Shanghai.
We take pride in delivering outstanding services and products to our tenants
and customers by upholding the highest quality standards in the design,
operation, and sustainability performance of our properties. These core values
have served as the foundation of Hongkong Land's long-term success. With a
clear strategy, a high-quality portfolio, and a robust financial position, our
focus continues to be fixed on delivering value and growth.
Michael T. Smith
Chief Executive
Hongkong Land Holdings Limited
Consolidated Profit and Loss Account
for the year ended 31 December 2025
2025 2024
Underlying Non- Total Underlying * Non- * Total
business trading US$m business trading US$m
performance items performance items
US$m US$m US$m US$m
re-presented re‑presented
Revenue (note 2) 1,048.3 400.0 1,448.3 1,087.2 914.9 2,002.1
Net operating costs (427.0) (642.8) (1,069.8) (393.3) (1,032.9) (1,426.2)
(note 3)
Change in fair value of investment properties - 514.2 514.2 - (1,887.6) (1,887.6)
(note 10)
Operating profit/(loss) 621.3 271.4 892.7 693.9 (2,005.6) (1,311.7)
(note 4)
Net financing charges
- financing charges (212.5) (5.1) (217.6) (238.5) (6.5) (245.0)
- financing income 41.3 13.3 54.6 44.9 33.9 78.8
(171.2) 8.2 (163.0) (193.6) 27.4 (166.2)
Share of results of associates and joint ventures
(note 5)
- before change in fair value of investment
properties 91.6 231.0 322.6 90.4 24.6 115.0
- change in fair value of
investment properties - 386.6 386.6 - 139.2 139.2
91.6 617.6 709.2 90.4 163.8 254.2
Profit/(loss) before tax 541.7 897.2 1,438.9 590.7 (1,814.4) (1,223.7)
Tax (note 6) (80.8) (92.3) (173.1) (89.4) (62.7) (152.1)
Profit/(loss) after tax 460.9 804.9 1,265.8 501.3 (1,877.1) (1,375.8)
Attributable to:
Shareholders of the Company 458.2 805.2 1,263.4 498.6 (1,883.5) (1,384.9)
Non-controlling interests 2.7 (0.3) 2.4 2.7 6.4 9.1
460.9 804.9 1,265.8 501.3 (1,877.1) (1,375.8)
US¢ US¢ US¢ US¢
Earnings/(loss) per share (note 8)
- basic 20.98 57.85 22.60 (62.76)
- diluted 20.92 57.69 22.58 (62.76)
* Further details are set out in note 1
Hongkong Land Holdings Limited
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2025
2025 2024
US$m US$m
Profit/(loss) for the year 1,265.8 (1,375.8)
Other comprehensive income/(expense)
Items that will not be reclassified to profit
or loss:
Remeasurements of defined benefit plans 0.4 0.3
Tax on items that will not be reclassified (0.1) -
0.3 0.3
Items that may be reclassified subsequently
to profit or loss:
Net exchange translation differences
- net gain arising during the year 64.4 75.2
- transfer to profit and loss (10.4) 3.2
54.0 78.4
Cash flow hedges
- net (loss)/gain arising during the year (7.9) 12.2
- transfer to profit and loss 6.4 (3.2)
(1.5) 9.0
Tax relating to items that may be
reclassified 1.7 (1.5)
Share of other comprehensive income/
(expense) of associates and joint ventures 302.7 (246.3)
356.9 (160.4)
Other comprehensive income/(expense)
for the year, net of tax 357.2 (160.1)
Total comprehensive income/(expense)
for the year 1,623.0 (1,535.9)
Attributable to:
Shareholders of the Company 1,616.6 (1,542.4)
Non-controlling interests 6.4 6.5
1,623.0 (1,535.9)
Hongkong Land Holdings Limited
Consolidated Balance Sheet
at 31 December 2025
2025 2024
US$m US$m
Net operating assets
Fixed assets 255.8 203.2
Right-of-use assets 113.4 104.4
Investment properties (note 10) 24,874.2 24,759.9
Associates and joint ventures (note 11) 7,954.3 10,046.2
Non-current debtors 11.8 11.5
Deferred tax assets 51.2 53.5
Pension assets 1.0 0.9
Non-current assets 33,261.7 35,179.6
Properties for sale 1,014.5 2,359.7
Current debtors 354.0 349.0
Current tax assets 38.6 36.4
Bank balances 2,552.0 1,073.4
Assets classified as held for sale (note 12) 2,836.6 54.3
Current assets 6,795.7 3,872.8
Current creditors (1,420.1) (1,642.4)
Current borrowings (note 13) (305.6) (823.7)
Current tax liabilities (91.2) (110.4)
Liabilities classified as held for sale (note 12) (17.9) -
Current liabilities (1,834.8) (2,576.5)
Net current assets 4,960.9 1,296.3
Long-term borrowings (note 13) (5,836.1) (5,341.6)
Deferred tax liabilities (312.3) (249.9)
Non-current creditors (1,241.0) (915.9)
30,833.2 29,968.5
Total equity
Share capital 215.9 220.7
Revenue and other reserves 30,582.5 29,719.4
Shareholders' funds 30,798.4 29,940.1
Non-controlling interests 34.8 28.4
30,833.2 29,968.5
Hongkong Land Holdings Limited
Consolidated Statement of Changes in Equity
for the year ended 31 December 2025
Share Capital Revenue Hedging Exchange Attributable to Attributable to non- Total
capital reserves reserves US$m reserves reserves shareholders controlling interests US$m equity
US$m US$m US$m US$m of the Company US$m US$m
2025
At 1 January 220.7 1.4 30,430.6 (57.8) (654.8) 29,940.1 28.4 29,968.5
Total comprehensive income - - 1,263.7 (14.2) 367.1 1,616.6 6.4 1,623.0
Dividends paid by the Company (note 9) - - (505.5) - - (505.5) - (505.5)
Share-based incentives - 7.3 - - - 7.3 - 7.3
Shares purchased for share-based incentives - - (22.1) - - (22.1) - (22.1)
Repurchase of shares (4.8) - (277.4) - - (282.2) - (282.2)
Sales of untraceable shares - - 44.2 - - 44.2 - 44.2
At 31 December 215.9 8.7 30,933.5 (72.0) (287.7) 30,798.4 34.8 30,833.2
2024
At 1 January 220.7 - 32,299.5 (57.7) (497.1) 31,965.4 21.9 31,987.3
Total comprehensive expense - - (1,384.6) (0.1) (157.7) (1,542.4) 6.5 (1,535.9)
Dividends paid by the Company (note 9) - - (485.5) - - (485.5) - (485.5)
Share-based incentives - 1.4 - - - 1.4 - 1.4
Unclaimed dividends forfeited - - 1.2 - - 1.2 - 1.2
At 31 December 220.7 1.4 30,430.6 (57.8) (654.8) 29,940.1 28.4 29,968.5
Hongkong Land Holdings Limited
Consolidated Cash Flow Statement
for the year ended 31 December 2025
2025 2024
US$m US$m
Operating activities
Operating profit/(loss) 892.7 (1,311.7)
Change in fair value of investment properties (514.2) 1,887.6
Depreciation 14.1 12.7
Change in fair value of derivatives 65.8 -
Exchange reserve loss realised on distribution 9.0 7.6
Loss on disposal of investment properties 5.1 10.3
Loss on measurement of the disposal group - 13.5
Net gain on disposal of subsidiaries and joint ventures (0.1) (9.6)
Net gain on reclassification from properties for sale to
investment properties (147.9) -
Decrease in properties for sale 618.7 752.1
(Increase)/decrease in debtors (16.4) 86.7
Decrease in creditors (190.9) (547.9)
Interest received 39.9 65.3
Interest and other financing charges paid (217.2) (245.8)
Tax paid (117.9) (147.3)
Dividends from associates and joint ventures 143.7 97.1
Cash flows from operating activities 584.4 670.6
Investing activities
Major renovations expenditure (164.2) (78.5)
Repayments from associates and joint ventures 272.8 259.2
Investments in associates and joint ventures (28.5) (16.9)
Advances to associates and joint ventures (21.6) (111.5)
Disposal of subsidiaries 539.7 -
Disposal of joint ventures 701.1 -
Acquisition of a subsidiary - 13.8
Proceeds and deposits of disposal of investment properties 368.2 15.5
Cash flows from investing activities 1,667.5 81.6
Financing activities
Drawdown of borrowings 1,615.7 2,371.0
Repayment of borrowings (1,739.9) (2,737.3)
Repayments to associates and joint ventures (16.2) (26.6)
Advances from associates and joint ventures 121.9 95.5
Principal elements of lease payments (2.6) (2.7)
Dividends paid by the Company (502.6) (478.2)
Purchase of shares of share-base incentives (22.1) -
Repurchase of shares (279.3) -
Sale of untraceable shares 44.2 -
Cash flows from financing activities (780.9) (778.3)
Net cash inflow/(outflow) 1,471.0 (26.1)
Cash and cash equivalents at 1 January 1,067.2 1,112.2
Effect of exchange rate changes 25.9 (18.9)
Cash and cash equivalents at 31 December 2,564.1 1,067.2
Hongkong Land Holdings Limited
Notes
1. ACCOUNTING POLICIES AND BASIS OF PREPARATION
The financial information contained in this announcement has been based on the
audited results for the year ended 31 December 2025 which have been prepared
in accordance with International Financial Reporting Standards, including
International Accounting Standards ('IAS') and Interpretations as issued by
the International Accounting Standards Board ('IASB').
There are no amendments which are effective in 2025 and relevant to the
Group's operations that have a significant impact on the Group's results,
financial position and accounting policies.
The Group has not early adopted any standard, interpretation or amendment that
has been issued but not yet effective.
Change in accounting policy
Following the strategic shift in the business direction to wind down the
build-to-sell segment, certain operations and assets within this segment have
been identified as non-strategic, while others have been reallocated to the
Prime Properties Investment segment. The profit and loss from these
non-strategic businesses are thereby separated from the principal business
performance and presented within non-trading items ('revised basis'). This
distinction aims at providing a clearer understanding of the group's
underlying performance related to its principal operations. This change has
been accounted for retrospectively with comparative information re-presented.
The effects on the underlying profit attributable to shareholders for the year
ended 31 December 2025 and 2024 are as follows:
2025 2024
US$m US$m
Attributable to shareholders
Underlying profit (revised basis) 458.2 498.6
Non-strategic business (Build-to-sell) business 126.7 225.3
performance
Underlying profit (revised basis) including Build-to-sell 584.9 723.9
business performance
Provisions for properties for sale (371.3) (314.3)
Net gain on reclassification from properties for sale to 246.9 -
investment properties and fixed assets
Underlying profit (previous basis) 460.5 409.6
The effects on the presentation of consolidated profit and loss account for
the year ended 31 December 2024 are as follows:
Underlying Non-
Business trading
performance items Total
Impact US$m US$m US$m
Revenue Increase/(decrease) (914.9) 914.9 -
Operating profit Increase/(decrease) 109.7 (109.7) -
Net financing charges (Increase)/decrease (27.4) 27.4 -
Share of results of Increase/(decrease) (24.6) 24.6 -
associates and joint
ventures
Profit before tax Increase/(decrease) 57.7 (57.7) -
Tax (Increase)/decrease 31.3 (31.3) -
Profit attributable to Increase/(decrease) 89.0 (89.0) -
shareholders of the
Company
2. REVENUE
2025 2024
US$m US$m
Rental income 844.2 887.6
Service income and others
- recognised at a point in time 27.1 35.3
- recognised over time 187.7 177.4
214.8 212.7
Sales of properties
- recognised at a point in time 370.0 881.0
- recognised over time 19.3 20.8
389.3 901.8
1,448.3 2,002.1
Total variable rents included in rental income amounted to US$42.6 million
(2024: US$36.2 million).
3. NET OPERATING COSTS
2025 2024
US$m US$m
Cost of sales (953.5) (1,265.4)
Other income 38.8 70.0
Administrative expenses (223.2) (209.0)
Change in fair value of derivatives (65.8) -
Exchange reserve loss realised on distribution (9.0) (7.6)
Loss on disposal of investment properties (5.1) (10.3)
Loss on measurement of the disposal group - (13.5)
Net gain on disposal of subsidiaries and joint ventures 0.1 9.6
Net gain on reclassification from properties for sale to
investment properties 147.9 -
(1,069.8) (1,426.2)
Cost of sales included a US$313.6 million provision on the Chinese mainland
properties for sale (2024: US$146.9 million) arising from the deterioration in
market conditions that resulted in projected sales prices being lower than
development costs. A corresponding deferred tax credit of US$2.3 million
(2024: US$10.8 million) was recognised.
4. OPERATING PROFIT/(LOSS)
2025 2024
US$m US$m
re-presented
Underlying business performance
Prime Properties Investment 697.3 771.3
Corporate (76.0) (77.4)
621.3 693.9
Non-trading items
Change in fair value of investment properties 514.2 (1,887.6)
Change in fair value of derivatives (65.8) -
Exchange reserve loss realised on distribution (9.0) (7.6)
Loss on disposal of investment properties (5.1) (10.3)
Net gain on disposal of subsidiaries and joint ventures 0.1 9.6
Net gain on reclassification from properties for sale to
investment properties 147.9 -
Non-strategic business (Build-to-sell) (304.2) (109.7)
Others (6.7) -
271.4 (2,005.6)
892.7 (1,311.7)
5. SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
2025 2024
US$m US$m
re-presented
Underlying business performance
Prime Properties Investment
- operating profit 161.5 168.2
- net financing charges (49.2) (59.3)
- tax (20.7) (18.5)
- net profit 91.6 90.4
Non-trading items
Non-strategic business (Build-to-sell)
- operating profit 189.0 212.3
- net financing charges (22.5) (44.8)
- tax (85.7) (143.0)
- non-controlling interest 0.2 0.1
- net profit 81.0 24.6
Change in fair value of investment properties
(net of tax) 386.6 139.2
Net gain on reclassification from properties for sale
to investment properties and fixed assets 150.0 -
617.6 163.8
709.2 254.2
The build-to-sell business included a US$60.0 million net provision after
including a deferred tax credit (2024: US$178.2 million). This arose due to
the deterioration in Chinese mainland market conditions that resulted in
projected sales prices being lower than development costs.
6. TAX
2025 2024
US$m US$m
Tax charged to profit and loss is analysed as follows:
Current tax (98.9) (93.4)
Deferred tax (74.2) (58.7)
(173.1) (152.1)
Tax relating to components of other comprehensive income is analysed as
follows:
2025 2024
US$m US$m
Remeasurements of defined benefit plans (0.1) -
Cash flow hedges 1.7 (1.5)
1.6 (1.5)
Tax on profits has been calculated at the rates of taxation prevailing in the
territories in which the Group operates.
The Group is within the scope of the OECD Pillar Two model rules, and has
applied the exception to recognising and disclosing information about deferred
tax assets and liabilities relating to Pillar Two income taxes.
Pillar Two legislation has been enacted in most jurisdictions in which the
Group operates. The income tax expense related to Pillar Two income taxes in
the relevant jurisdiction is assessed to be immaterial.
Share of tax charge of associates and joint ventures of US$360.7 million
(2024: US$168.4 million) is included in share of results of associates and
joint ventures.
7. NON-TRADING ITEMS
Non-trading items are separately identified to provide greater understanding
of underlying performance from continuing businesses. The Group presents the
profit and loss account in columnar format with analysis of underlying
business performance and items outside of the underlying business performance
(non-trading items). The Group considers the following as non-trading items:
(i) Items that are unrealised valuation changes, infrequent or one-off in
nature. Such items include fair value gains or losses on revaluation of
investment properties, and equity and debt investments which are measured at
fair value through profit and loss; gains and losses arising from the sale of
businesses, investments and properties; impairment of non-depreciable
intangible assets, associates and joint ventures and other investments;
provisions for the restructuring or closure of businesses; acquisition-related
costs in business combinations; and other credits and charges of a
non-recurring nature that require inclusion in order to provide additional
insight into underlying business performance.
(ii) Result of non-strategic business. This relates to the profit or loss of
business not aligned with the Group's strategy and where there is an explicit
and announced intention to exit or wind-down the business.
An analysis of non-trading items after interest, tax, non-controlling
interests and share of results of associates and joint ventures is set out
below:
2025 2024
US$m US$m
re-presented
Change in fair value of investment properties, net 889.7 (1,786.2)
Change in fair value of derivatives (65.8) -
Exchange reserve loss realised on distribution (9.0) (7.6)
Gain on disposal of joint ventures 24.1 9.6
Loss on disposal of investment properties (5.1) (10.3)
Loss on disposal of subsidiaries (24.3) -
Net gain on reclassification from properties for sale
to investment properties and fixed assets* 246.9 -
Non-strategic business (Build-to-sell)
- business performance 126.7 225.3
- provisions for properties for sale (371.3) (314.3)
Non-strategic business (Build-to-sell) total (244.6) (89.0)
Others (6.7) -
805.2 (1,883.5)
* In view of the change of intention and to be in line with the Group's
strategy, the Group reclassified certain properties for sale on the Chinese
mainland to investment properties and fixed assets as at 31 December 2025.
Accordingly, a net gain on reclassification of US$246.9 million was recorded
during the year with reference to valuations performed by an independent
valuer
8. EARNINGS PER SHARE
Basic earnings per share are calculated on profit attributable to shareholders
of US$1,263.4 million (2024: loss of US$1,384.9 million) and on the weighted
average number of 2,183.9 million (2024: 2,206.6 million) shares in issue and
outstanding during the year.
For the year ended 31 December 2025, dilutive earnings per share are
calculated on profit attributable to shareholders of US$1,263.4 million and on
the weighted average number of 2,190.0 million shares in issue and outstanding
during the year.
For the year ended 31 December 2024, the dilutive potential ordinary shares
were not included in the calculation of diluted earnings per share as their
inclusion would be antidilutive. Accordingly, diluted earnings per share were
the same as basic earnings per share.
Additional basic and diluted earnings per share are calculated based on
underlying profit attributable to shareholders. A reconciliation of earnings
is set out below:
2025 2024
Basic earnings Diluted earnings US$m Basic earnings Diluted earnings
US$m per share per share per share per share
US¢ US¢ US¢ US¢
Underlying profit attributable to shareholders 458.2 20.98 20.92 498.6 * 22.60 * 22.58 *
Non-trading items 805.2 (1,883.5) *
(note 7)
Profit/(loss) 1,263.4 57.69 (1,384.9) (62.76) (62.76)
attributable to shareholders
57.85
* Re-presented
9. DIVIDENDS
2025 2024
US$m US$m
Final dividend in respect of 2024 of US¢17.00
(2023: US¢16.00) per share 375.0 353.1
Interim dividend in respect of 2025 of US¢6.00
(2024: US¢6.00) per share 130.5 132.4
505.5 485.5
A final dividend in respect of 2025 of US¢19.00 (2024: US¢17.00) per share
amounting to a total of US$408.9 million (2024: US$375.1 million) is proposed
by the Board. The dividend proposed will not be accounted for until it has
been approved at the 2026 Annual General Meeting. The amount will be
accounted for as an appropriation of revenue reserves in the year ending 31
December 2026.
10. INVESTMENT PROPERTIES
2025 2024
US$m US$m
At 1 January 24,759.9 26,687.2
Exchange differences 16.3 113.2
Additions 150.6 77.1
Disposal (229.5) (12.7)
Transfer from properties for sale 815.8 -
Transfer to fixed assets - (111.7)
Transfer to right-of-use assets - (94.2)
Increase/(decrease) in fair value 514.2 (1,887.6)
Classified as held for sale (1,153.1) (11.4)
At 31 December 24,874.2 24,759.9
11. ASSOCIATES AND JOINT VENTURES
2025 2024
US$m US$m
re-presented
By Business
Prime Properties Investment 5,366.9 6,950.9
Non-strategic business (Build-to-sell) 2,587.4 3,095.3
7,954.3 10,046.2
12. ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE
The major classes of assets and liabilities classified as held for
sale are set out below:
2025 2024
US$m US$m
Investment properties 1,107.4 11.4
Joint ventures 1,710.1 26.1
Current assets 19.1 16.8
Total assets 2,836.6 54.3
Current liabilities (16.5) -
Non-current liabilities (1.4) -
Total liabilities (17.9) -
Current assets included bank balances of US$13.1 million (2024: US$3.5
million).
In April 2025, the Group entered into sale and purchase agreements with Hong
Kong Exchanges and Clearing Limited for the sale of its interest in certain
floors of One Exchange Square for a total cash consideration of approximately
US$810 million. The transaction will conclude in stages as individual floors
are handed over, with the remaining floors to be sold at US$476.7 million
classified as held for sale at 31 December 2025.
In December 2025, the Group entered into a limited partnership agreement with
independent third parties for the launch of its first private real estate fund
- the Singapore Central Private Real Estate Fund ('SCPREF'). The Group also
entered into sale and purchase agreements with SCPREF for the sale of the
Group's interests in its Singapore commercial portfolio. Accordingly, the
interests in its Singapore commercial portfolio were classified as held for
sale at 31 December 2025. The transaction was completed in February 2026.
At 31 December 2024, assets classified as held for sale principally related to
certain interests in Cambodia and Thailand with net assets of US$14.9 million
and US$39.4 million respectively.
13. BORROWINGS
2025 2024
US$m US$m
Current
Bank overdrafts - 0.2
Bank loans - 6.4
Current portion of long-term borrowings
- bank loans 76.8 177.2
- medium term notes 228.8 639.9
305.6 823.7
Long-term
Bank loans 2,773.0 2,069.7
Medium term notes
- due 2026 - 220.5
- due 2027 187.1 187.3
- due 2028 183.4 183.7
- due 2029 121.8 122.0
- due 2030 700.1 699.8
- due 2031 570.8 570.5
- due 2032 140.8 141.0
- due 2033 525.8 525.8
- due 2034 115.5 115.8
- due 2035 254.8 255.2
- due 2038 115.1 108.7
- due 2039 115.9 109.5
- due 2040 32.0 32.1
3,063.1 3,271.9
5,836.1 5,341.6
6,141.7 6,165.3
14. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
Total capital commitments as at 31 December 2025 amounted to US$1,128.5
million (2024: US$1,155.9 million).
Various Group companies are involved in litigation arising in the ordinary
course of their respective businesses. Having reviewed the outstanding
claims and taking into account the legal advice received, the Directors are of
the opinion that adequate provisions have been made in the financial
statements.
15. RELATED PARTY TRANSACTIONS
The parent company of the Group is Jardine Strategic Limited ('JSL') and the
ultimate parent company of the Group is Jardine Matheson Holdings Limited
('JMH'). Both JMH and JSL are incorporated in Bermuda.
In the normal course of business, the Group has entered into a variety of
transactions with the subsidiaries, associates and joint ventures of JMH
('Jardine Matheson group members'). The more significant of these
transactions are described below:
Management fee
The management fee payable by the Group, under an agreement entered into in
1995, to Jardine Matheson Limited ('JML') in 2025 was US$2.3 million (2024:
US$2.1 million), being 0.5% per annum of the Group's underlying profit in
consideration for management consultancy services provided by JML, a
wholly-owned subsidiary of JMH.
Property and other services
The Group rented properties to Jardine Matheson group members. Gross rentals
on such properties in 2025 amounted to US$17.3 million (2024: US$19.0
million).
The Group provided project management services and property management
services to Jardine Matheson group members in 2025 amounting to US$8.9 million
(2024: US$3.8 million).
Jardine Matheson group members provided property maintenance and other
services to the Group in 2025 in aggregate amounting to US$59.4 million (2024:
US$59.0 million). In respect of capital expenditure works, Jardine Matheson
group members complete value of works of US$79.3 million (2024: nil) and
commitments related to the works amounted to US$144.1 million (2024: US$223.4
million).
Hotel management services
Jardine Matheson group members provided hotel management services to the Group
in 2025 amounting to US$3.7 million (2024: US$3.1 million).
Outstanding balances with Jardine Matheson group members
Amounts of outstanding balances with associates and joint ventures are
included in associates and joint ventures, debtors and creditors as
appropriate. Balances with group companies of JMH are immaterial, unsecured
and have no fixed terms of repayment.
Hongkong Land Holdings Limited
Principal Risks and Uncertainties
The following are the principal risks and uncertainties facing the Company as
required to be disclosed pursuant to the Disclosure Guidance and Transparency
Rules issued by the Financial Conduct Authority in the United Kingdom and are
in addition to the matters referred to in the Chairman's Statement, Chief
Executive's Review and other parts of the Company's 2025 Annual Report.
The principal risks and uncertainties that the Company faces together with
their mitigation measures are set out below. They have taken into account the
Company's revised strategy and operating model which was announced in October
2024.
Risk relating to Execution of Strategy
The Group's new strategy is to focus on ultra-premium integrated investment
properties in Asia gateway cities. The implementation of this strategy
involves exiting from its build-to-sell businesses, leveraging third-party
capital and recycling capital from selected assets to finance growth and
improve return on equity. The successful execution of this strategy relies on
business transformation. This transition will involve changes to the
experience and skills that the Group requires for its management which may
result in temporary disruption to operating standards if the transition is not
well handled.
To support its strategy of recycling capital from existing assets to new
investments in ultra-premium projects, the Group also needs to modify its
investment management lifecycle. This revised approach includes identifying
the optimal timing for asset disposals and acquisitions, which will be
influenced by assumptions on asset performance and wider market conditions.
This will include assumptions on future rents, occupancy and valuation metrics
which may turn out to be too optimistic or pessimistic. To accelerate
divestment from selective existing investments to finance growth the Group may
need to reduce its price expectations below the asset's carrying value
resulting in an accounting loss upon sale. The Group may face challenges
sourcing attractive new investment opportunities at or above its equity return
expectations, resulting in a delay in business expansion and reduce return on
equity performance.
The Group's new strategy also seeks to bring in third-party capital to support
growth. The pace of developing effective relationships with providers of
third-party capital will influence the Group's access to such capital and
ultimately the pace of its business expansion. The terms on which third-party
capital is drawn under this strategy could also create financial strain at the
asset or fund level if an excessive amount of leverage is used and market
conditions deteriorate. Poor investment performance may impact the Group's
ability to attract new third-party capital providers. Large redemption
requests from third-party capital providers may result in assets being sold on
the open market if alternative third-party capital providers cannot be found.
The Group's strategy involves ambitious 10-year targets, including an increase
in its AUM from US$40 billion to US$100 billion and recycling of capital of up
to US$10 billion by 2035. Pursuit of these growth ambitions may affect the
Group's investment decision making process. Any difference in judging the
market, responding to competitive trends and demonstrating agility in certain
conditions as well as inappropriate capital structure and poor financial
planning could also lead to the Group not being able to execute the new
strategy effectively.
Mitigation Measures:
· Align transformation initiatives, capital recycling strategies
and capital structure decisions with long-term business objectives
· Implement structured change management programmes with clear
communication and stakeholder engagement across the organisation
· Hold regular investment committee meetings to review capital
recycling progress and assess new investment opportunities
· Apply active asset management strategies across the entire
portfolio in line with prevailing market standards
· Develop and execute exit strategies for assets designated for
disposal, in collaboration with internal teams and external advisors
· Maintain ongoing engagement with potential buyers and investors
to ensure awareness of market conditions and capital availability
· Uphold robust investment appraisal processes, supported by
rigorous financial modelling and scenario analysis
· Strengthen organisational capabilities through targeted training
and upskilling to support new business models
· Conduct comprehensive market research and detailed cash flow
forecasting to evaluate potential investment opportunities
· Perform regular strategic reviews of market conditions and
monitor exposure to liquidity risks
· Work closely with the Chief Financial Officer to maintain a
strong balance sheet, including adequate liquidity buffers, to support growth
while preserving the Group's investment credit rating
· Continuously review processes and systems to ensure an
institutional and disciplined approach to operations
· Carry out regular internal audits to ensure compliance with
financial policies and the effectiveness of internal controls over financial
reporting
Economic Risk
Uncertainties in global and regional economies and financial markets,
involving volatility in interest and exchange rates, excessive inflation,
deflation or recession, can adversely affect the pricing and demand for the
Group's properties. Such developments might increase the Group's operating and
financing costs or reduce its occupancy rates and revenues, as well as its
access to credit. This would affect the valuations for the Group's investment
properties and profitability. At the same time, these developments could also
impact on the performance of the Group's joint venture partners, associates,
bankers, suppliers and other third parties to support it.
In addition, geopolitical instability in jurisdictions in which the Group's
properties are located could lead to unfavourable market sentiment, posing a
threat to its business activity and affecting strategic aspirations for growth
and returns on investment. For instance, political tensions, which could
result in greater protectionism, sanctions, nationalisation or expropriation,
and violence may bring impact to the global geopolitical situation outside its
own markets and affect worldwide sentiment.
Mitigation Measures:
· Monitor the volatile macroeconomic environment and consider
economic factors in strategic and financial planning
· Make agile adjustments to existing business plans, where
appropriate, and explore new business streams and markets
· Review pricing and leasing strategies on a regular basis
· Conduct stress testing in relation to various economic scenarios,
such as inflation or interest rate changes, to understand their potential
impacts and to prepare measures to address them
· Perform strategic reviews of the market situation and monitor
exposure to changes in liquidity
· Manage the Group's exposure to fluctuations in foreign exchange,
interest rates and counterparty risk
· Explore alternative financing options (e.g., green bonds, private
placements, etc.) to reduce dependency on institutional investors
· Maintain a Terrorism and Political Violence policy with adequate
coverage to mitigate the potential financial impact on the Group of political
violence events
Risks from Changing Market Trends, Demands and Competition
Customer preferences can shift due to evolving lifestyle trends, technological
advancement and economic developments, necessitating continuous adaptation by
the Group in order to maintain and enhance its business performance. For
instance, Hong Kong's position as a leading financial centre and luxury
shopping destination may be eroded over time, leading to reduced demand for
premium integrated properties, whilst over supply and changes in consumption
pattern on the Chinese mainland could affect demand for high-end property.
Other trends that could impact demand include preferences for decentralised
office space, co-working environments, remote working and digital retailing.
If competitors are able to anticipate, understand and respond to these
developments more effectively than the Group, particularly in new gateway
markets, it may experience difficulty in gaining market share or lose current
market share. This would result in the Group suffering a decline in financial
performance and not achieving its strategic objectives for rapid growth.
Mitigation Measures:
· Undertake continual upgrades and improvements to maintain the
competitiveness of the Group's portfolio
· Maintain ongoing engagement with government authorities
· Regular market visits to key cities to understand latest trends
and identify gaps with our existing portfolio
· Monitor sales of retail tenants to identify shifts in business
trends early. Conduct regular tenant satisfaction surveys, dialogues with core
tenants and opinion leaders to identify existing gaps and anticipate evolving
needs.
· Maintain a strong customer relationship management system.
· Adopt best practices with respect to sustainability and
transition to net zero, including executing on green building initiatives and
collaborating with our tenants to achieve sustainability goals
People and Culture Risk
Ensuring that the Group has the right management talent, equipped with
leadership skills and specialist expertise, is critical in enabling it to
execute its new strategy effectively and to implement the required changes to
its organisational model. Therefore, any significant failure to attract,
retain and develop such talent could undermine this strategy as well as the
Group's operational and financial performance. The transition required under
the new strategy involves a potential reallocation and reskilling of resources
to new roles, with these processes involving additional time and costs.
The Group also faces talent shortages in certain areas, including retail
management and sustainability, for which there is high market demand. If the
Group is not able to hire key talent or carry out reskilling of existing
personnel in these specialisms, it may not be able to execute related
initiatives successfully, undermining its operational performance and growth.
Mitigation Measures:
· Active communication with employees to develop their
understanding of the Group's new strategic direction
· Enhance the Group's performance management system to reinforce
its high-performance culture, as well as maintain appropriate compensation and
benefits
· Conduct proactive manpower and succession planning
· Enhance the Group's modern employer branding by implementing a
talent development plan that includes training to up-skill staff to prepare
them for emerging business needs
· Implement a strategy to promote Inclusion, Equity & Diversity
across the Group
· Develop an employee retention programme
Health and Safety Risk
The Group faces health and safety risk in terms of the possible impact of such
issues as accidents, security incidents or hygiene-related matters on its
tenants. In addition, the Group's business activities include construction and
renovation, hence it faces the risk of fatalities or serious injuries taking
place if working conditions are unsafe or workers do not adhere to its safety
procedures. If the Group fails to prevent, avoid and detect safety-related
issues, even where its relevant operations are managed by third party service
providers, its brand could be damaged and the trust that its tenants have in
the Group eroded, especially given its focus on the luxury sector. These
issues would ultimately undermine the Group's financial performance and
shareholder value.
Mitigation Measures:
· Ensure that all structural elements, mechanical and electrical
systems and plumbing in the Group's buildings are regularly inspected and
maintained
· Provide tenants with clear instructions and guidelines on
emergency procedures and safety protocols
· Establish a safety leadership culture and framework in all
markets
· Conduct regular safety training for all employees and contractors
· Conduct proper contractor selection and evaluation, and
incorporate site safety requirements in tenders and contracts
· Conduct regular safety audits of operating buildings and
construction sites to ensure the Group's guidelines, requirements and local
regulations for safety are adhered to by both employees, vendors and
contractors
· Conduct periodic drills and tests of emergency response, business
continuity and crisis response procedures established for health and safety
incident' scenarios
· Ensure insurance coverage, including employee compensation,
public liability and construction all risks, is adequate and effective
Environmental and Climate Risk
Environmental and climate-related risks are growing in significance, as shown
by the increasing frequency and intensity of potentially damaging natural
events and disasters, such as flooding, increased extreme heat days and
tropical cyclones. These pose growing physical threats to the Group's
properties and other assets, which could lead to safety-related issues and
disruption to operations and supply chains in the future. In addition, sea
level rises could adversely impact asset values and business continuity. As a
result, the Group may face higher costs for implementing measures to reduce
the impact of climate-related events, including physical defences and
insurance. Failure on the part of the Group to manage environmental and
climate risks could lead to it incurring even greater costs of recovery from
climate-related events, negatively affecting its financial performance,
reputation and hence ability to achieve its long-term strategic objectives.
Market pressure, from shareholders, customers, lenders, rating agencies, etc.,
for improving sustainability performance is also increasing. In addition, the
Group has committed to certain officially published targets, including those
in relation to decarbonisation. It therefore faces a growing challenge in
driving sustainability initiatives and delivering on sustainability
performance, increasing the risk of negative media exposure or reputational
damage arising if it does not meet compliance standards or other expectations.
Any failure on the part of the Group to improve the quality of its reporting
on climate and other sustainability-related performance, to meet these
requirements, could also lead to reputational issues for the Group.
Mitigation Measures:
· Implement measures to achieve the Group's targets and commitments
to decarbonisation under the Science-Based Targets initiative
· Update climate risk assessments and action plans for climate
adaptation based on the recommendations of the Task Force on Climate-related
Financial Disclosures/IFRS S2 Climate-related Disclosures, including
implementing measures to address physical risks posed by climate change and
identifying opportunities in the global transition to a low-carbon economy
· Perform ongoing retrofitting of existing assets and deploy
emerging PropTech solutions to drive energy efficiency
· Increase the procurement of renewable energy, including expanding
capacity for onsite renewable energy generation, to reduce carbon emissions
· Continue implementing the Group's robust and long-standing green
building certification programme to minimise the environmental impact of
existing assets
· Assess emerging sustainability reporting standards and
requirements, and align the Group's disclosures with market best practice
· Engage and collaborate with industry peers and government
authorities on climate-related issues and share best practices
· Enhance operations and emergency preparedness to mitigate and
minimise the impact of climate-related risks
· Maintain a Property Damage and Business Interruption insurance
policy with adequate coverage, to mitigate the potential financial impact on
the Group of catastrophic events
· Enhance existing Hongkong Land systems and procedures for the
identification, monitoring and tracking of climate risks across the portfolio
to inform management decision-making
· Conduct external and internal assurance reviews of the Group's
sustainability reporting and governance
Technology and Cybersecurity Risk
The Group is increasingly reliant on technology, exposing it to greater
cybersecurity and privacy-related risk. Cyberattacks are becoming more
frequent and sophisticated globally, posing significant threats to the Group's
digital infrastructure and information technology systems. The use of digital
platforms also heightens the Group's vulnerability to cyber threats. Further,
disruptive technologies, such as Generative AI, introduce another type of
cyberattacks, such as advanced phishing and deepfake attacks. The new
technologies may also influence customer expectations from the Group's
portfolios. Failure to meet these expectations may result in loss of market
share and competitive edge for the Group.
Cyber risk is further accentuated by the Group's exposure to breaches in
cybersecurity taking place at its business partners, third parties and
customers, through any Group systems that are connected with those of such
counterparties.
Cyberattacks may also stem from a lack of cybersecurity awareness on the part
of employees, resulting in human error that cybercriminals can exploit,
disrupting critical equipment and facilities used by the Group in daily
operations.
If a cyberattack takes place at the Group or at its partners, third parties or
customers, it may face the costs of having to recover systems, lost revenue,
brand damage or regulatory action and penalties.
Mitigation Measures:
· Define a cybersecurity programme and establish a centralised
function to provide oversight and management of cybersecurity matters and to
strengthen cyber defences and security measures
· Engage external consultants to perform cyber assessments of the
Group's business functions against industry benchmarks
· Perform regular vulnerability assessments, penetration testing
and internal audits to identify weaknesses
· Maintain and regularly test disaster recovery plans and backup
for data restoration
· Arrange regular security awareness training for all employees and
phishing testing to raise their cybersecurity awareness
· Maintain sufficient cyber-related insurance to protect the
Group's financial position from the impacts of cyberattacks
· Establish a technology strategy & roadmap and regularly
review emerging technologies which align with business objectives to reduce
the risk of operational obsolescence
· Provide training and upskilling programmes for employees on new
tools and platforms to maintain competitiveness
· Engage with major technology vendors such as Microsoft to
proactively understand emerging technologies (including AI, Cloud, Big Data,
and Security) reducing the risk of operational obsolescence and ensuring
secure, compliant integration into business processes
Legal, Regulatory, Compliance and Financial Reporting Risk
The Group is continuously subject to new or changing regulations in the
jurisdictions in which it operates, as well as to those with
cross-jurisdictional impact, covering such matters as tax (e.g., stamp duty),
employment, cybersecurity, data privacy, home ownership, capital remittances,
sustainability (e.g., carbon pricing, building standards, safety, etc.) and
reporting requirements. The complexity created by this regulatory environment
leads to a risk that the Group inadvertently breaches its compliance
obligations. As the Group embarks on its shift towards new gateway cities in
Asia, this risk is increased as it may not initially have sufficient internal
understanding of regulations in each target jurisdiction.
If a robust approach to compliance is not maintained, the Group may face
claims, lawsuits, investigations, fines and sanctions being imposed by
regulatory authorities or negative media exposure, adversely affecting its
operations, reputation and profitability.
The Group also faces the risk that its external financial reporting does not
meet relevant regulatory requirements, possibly leading to fines or penalties
as well as reputational damage or loss of investor confidence. This risk could
increase as these requirements evolve and become more stringent over time,
making it more challenging for the Group to ensure the integrity and
timeliness of its financial reporting.
Mitigation Measures:
· Stay up to date on new and draft regulations in all jurisdictions
in which the Group operates and ensure that employees are informed of
regulatory changes
· Engage external consultants and legal experts to assess the
implications of prospective or new regulations, where necessary
· Implement a mandatory and robust code of conduct and
zero-tolerance policy for unethical behaviour that applies to all business
functions and employees across the Group
· Maintain a robust Corporate Governance Framework which includes a
secured and accessible whistleblowing channel for reporting misconduct
· Provide regular legal updates to employees to ensure that they
are informed of regulatory changes
· Maintain an independent internal audit function that reports
directly to the Group's Audit Committee on risk management, control
environment and significant non-compliance matters
· Make ongoing developments to financial systems and controls, to
ensure the integrity of financial information
· Conduct regular internal audits of compliance with financial
policies and internal controls over financial reporting
Risks from Partnerships and Other Third-Party Relationships
The effectiveness of the Group's relationships with joint venture partners and
in strategic alliances with other companies, government authorities, etc.,
will affect its performance. These relationships create opportunities for
growth, improving operational efficiency and promoting innovation. However,
they also introduce risks that could lead to vicarious responsibility for the
actions of these parties, causing reputational damage and undermining
shareholder value. These risks could stem from these parties' operations or
their non-compliance with regulatory requirements that they face. Also,
disputes with such parties may arise, as a result of differences in corporate
culture, priorities, management approaches and risk appetite between the Group
and such parties. Furthermore, any over-reliance on certain third-parties may
expose the Group to poor performance outcomes, such as delays in delivery, low
service quality or data security issues.
These reputational and operational challenges could hinder the Group in
achieving its strategic objectives for growth in profitability and scale.
Mitigation Measures:
· Conduct thorough research, due diligence and evaluation of
investment opportunities and potential business partners
· Develop a clear framework and levels of authority for investment
and partnership decisions
· Conduct regular multi-layer communication with partners and
establish clear communication channels
· Build up networks beyond local partners, such as with government
authorities and the media
· Monitor financial strength/downgrades, litigations and credit
rating of business partners
· Prepare fallback strategies for joint venture exits or partner
defaults, to minimise financial and reputational damage
· Develop a clear dispute resolution mechanism with partners
Hongkong Land Holdings Limited
Responsibility Statements
The Directors of the Company, whose names and functions are listed in the
Directors' Profiles section of the Company's 2025 Annual Report, confirm that,
to the best of their knowledge:
(a) the consolidated financial statements prepared in accordance with
International Financial Reporting Standards, including International
Accounting Standards and Interpretations as issued by the International
Accounting Standards Board, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Group; and
(b) the Chairman's Statement, Chief Executive's Review, Financial Review and
the description of Principal Risks and Uncertainties facing the Group as set
out in the Company's 2025 Annual Report, which constitute the management
report required by the Disclosure Guidance and Transparency Rule 4.1.8,
include a fair review of all information required to be disclosed under Rules
4.1.8 to 4.1.11 of the Disclosure Guidance and Transparency Rules issued by
the Financial Conduct Authority in the United Kingdom.
For and on behalf of the Board
Michael T. Smith
Craig Beattie
Directors
5 March 2026
Dividend Information for Shareholders
The final dividend of US¢19 per share will be payable on 13 May 2026, subject
to approval at the Annual General Meeting to be held on 7 May 2026, to
shareholders on the registers of members at the close of business on 20 March
2026. The shares will be quoted ex-dividend on 19 March 2026, and the share
registers will be closed from 23 to 27 March 2026, inclusive.
Shareholders will receive cash dividends in United States Dollars, except when
elections are made for alternate currencies in the following circumstances.
Shareholders on the Jersey branch register
Shareholders registered on the Jersey branch register can elect for their
dividends to be paid in Pounds Sterling. These shareholders may make new
currency elections for the 2025 final dividend by notifying the United Kingdom
transfer agent in writing by 24 April 2026. The Pounds Sterling equivalent
of dividends declared in United States Dollars will be calculated based on the
exchange rate prevailing on 29 April 2026.
Shareholders holding their shares through CREST in the United Kingdom will
receive cash dividends in Pounds Sterling only, as calculated above.
Shareholders on the Singapore branch register who hold their shares through
The Central Depository (Pte) Limited ('CDP')
Shareholders enrolled in CDP's Direct Crediting Service ('DCS')
Those shareholders enrolled in CDP's DCS will receive their cash dividends in
Singapore Dollars unless they opt out of CDP Currency Conversion Service,
through CDP, to receive United States Dollars.
Shareholders not enrolled in CDP's DCS
Those shareholders not enrolled in CDP's DCS will receive their cash dividends
in United States Dollars unless they elect, through CDP, to receive Singapore
Dollars.
Shareholders on the Singapore branch register who wish to deposit their shares
into the CDP system by the dividend record date, being 20 March 2026, must
submit the relevant documents to Boardroom Corporate & Advisory Services
Pte. Ltd., the Singapore branch registrar, by no later than 5.00 p.m. (local
time) on 19 March 2026.
About Hongkong Land Group
Hongkong Land is a major listed property development, investment and
management group. It focuses on developing, owning and managing premium and
ultra-premium mixed-use real estate in Asian gateway cities, featuring Grade A
office, luxury retail, residential and hospitality products. With over US$50
billion in assets under management, Hongkong Land's ultra-premium mixed-use
real estate footprint spans over 1.82 million sq. m. lettable area in
operation and 1.57 million sq. m. lettable area under development, with
flagship mixed-use projects in Hong Kong, Singapore and Shanghai. Its
properties hold industry leading green building certifications and attract the
world's foremost companies and luxury brands. Established in 1889, Hongkong
Land takes a long-term view, investing significantly alongside its capital
partners and concentrating its portfolio where it can create the most value
for tenants, customers and investors. Hongkong Land Holdings Limited has a
primary listing on the London Stock Exchange, with secondary listings in
Singapore and Bermuda. Hongkong Land is a member of the Jardine Matheson
Group.
- end -
For further information, please contact:
Hongkong Land
Mark Lam (852) 2842 8211
Louise Corbett (852) 2842 8541
SEC Newgate
Will Brocklehurst (852) 6021 8313
Full text of the Preliminary Announcement of Results and the Preliminary
Financial Statements for the year ended 31 December 2025 can be accessed via
the Hongkong Land corporate website at 'www.hkland.com'.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR SSLFFIEMSEID
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Jardine Matheson Holdings
See all newsREG - Jardine Matheson Hdg - Transaction in Own Shares
AnnouncementREG - Jardine Matheson Hdg - Transaction in Own Shares
AnnouncementREG - Jardine Matheson Hdg - Annual Financial Report
AnnouncementREG - Jardine Matheson Hdg - Transaction in Own Shares
AnnouncementREG - Jardine Matheson Hdg - Transaction in Own Shares
Announcement