Hongkong Land Holdings Limited · SGX:H78
Hongkong Land — FY2024 Earnings Presentation
66 slides from Hongkong Land's earnings presentation, Mar 10, 2025
Slide 1: Experience is central
Hongkong Land 1 Experience is central
Slide 2: 2024 Results Presentation
10 March 2025 2024 Results Presentation
Slide 3: Cautionary statement
Hongkong Land 2024 Results Presentation Cautionary statement 3 Disclaimer: Your accessing of this document indicates your understanding, agreement to and acceptance, of this disclaimer Forward-looking statements notice and the full terms and conditions contained herein. This document (including info
Slide 4: Agenda
Agenda 01 Delivering our strategy 02 Highlights 03 Leasing and operational update 04 Results and financial review 05 Outlook and focus
Slide 5: Delivering Our Strategy
Hongkong Land 2024 Results Presentation 01 Delivering Our Strategy 5 Delivering our strategy 01
Slide 6: Strategic Vision 2035
Hongkong Land 2024 Results Presentation 01 Delivering Our Strategy 6 Strategic Vision 2035 “To become the leader in Asia’s gateway cities focused on ultra-premium integrated commercial properties” New Investments: Simplify Portfolio: Portfolio Anchors: Ultra-premium integrated No new investments in
Slide 7: Evolving our business model
Hongkong Land 2024 Results Presentation 01 Delivering Our Strategy 7 Evolving our business model Capital management Focus on returns on capital; excess capital returned to shareholders Portfolio recycling GATEWAY Ultra-premium gateway Exit non-core businesses and vend CITY assets mature assets into
Slide 8: Making headway on all fronts
Hongkong Land 2024 Results Presentation 01 Delivering Our Strategy 8 Making headway on all fronts What we said in October 2024 Today • c.US$300m capital recycled in 2024 Portfolio recycling • Disposal of a retail asset in Thailand • Pursuing options to accelerate monetisation of build-to-sell and ot
Slide 9: Capital recycling – steady progress towards milestones
Hongkong Land 2024 Results Presentation 01 Delivering Our Strategy 9 Capital recycling – steady progress towards milestones Other assets monetisation: Progressing towards target of US$4bn – US$6bn • c.US$20m recycled from by 2027 US$0.3bn asset disposal in Thailand • Proactive monetisation • No new
Slide 10: Organisational excellence – strengthening our bench
Hongkong Land 2024 Results Presentation 01 Delivering Our Strategy 10 Organisational excellence – strengthening our bench Strengthen organisational culture & capabilities • Align our people and incentives with strategic goals • Review and benchmark functions to best-in-class practices Townhall, the
Slide 11: Organisational excellence – aligning incentives & driving high performance culture
Hongkong Land 2024 Results Presentation 01 Delivering Our Strategy 11 Organisational excellence – aligning incentives & driving high performance culture LTIP Revitalised STIP • 100% share-based; five-year performance period (2025 – 2029) • Effective for financial year 2025 • Progressive vesting over
Slide 12: Experience is central
Hongkong Land 2024 Results Presentation 01 Delivering Our Strategy 12 Experience is central Our vision is to establish world-class ecosystems for ultra luxury retail, business and tourism at the heart of the world’s most dynamic cities One Raffles Quay Revitalising Centricity tenant Opening of Sothe
Slide 13: Tomorrow's CENTRAL – further enhancing experience for our customers
Hongkong Land 2024 Results Presentation 01 Delivering Our Strategy 13 Tomorrow’s CENTRAL – further enhancing experience for our customers Key Maison’s – Opening timeline* 2025 2026 2027 2028 Prada Saint Laurent Cartier Tiffany & Co. Van Cleef & Arpels Louis Vuitton Dior Hermès CHANEL *Expected timel
Slide 14: Highlights
Hongkong Land 2024 Results Presentation 02 Highlights 14 Highlights 02
Slide 15: Key Highlights
Hongkong Land 2024 Results Presentation 02 Highlights 15 Key Highlights LANDMARK, Hong Kong Landmark Riverside, Chongqing West Bund, Shanghai Strengthening our anchor portfolios Accelerated recycling from Launching initial phases of Westbund build-to-sell and other assets Central • HK Office: captur
Slide 16: Key Highlights
Hongkong Land 2024 Results Presentation 02 Highlights 16 Key Highlights WF Central, Beijing Exchange Square, Hong Kong Resilient recurring rental income Capital strength & conservative financial Member of Dow Jones Sustainability leverage World Index • Growth in Singapore and the Chinese • Consisten
Slide 17: Financial Highlights
Hongkong Land 2024 Results Presentation 02 Highlights 17 Financial Highlights $724 m $13.57 Underlying profit NAV per share (ex. China non-cash provisions) (Underlying profit: US$410m) Exchange Square Plaza, Hong Kong Marina Bay Financial Centre, Singapore $5.1bn 23.0 ¢ Net debt Dividend per share (
Slide 18: Financial Highlights
Hongkong Land 2024 Results Presentation 02 Highlights 18 Financial Highlights Recurring rental income resilient Attributable Gross Rental Income, 2020 to 2024 US$m 1,373 1,404 1,372 1,354 1,306 184 197 179 196 139 62 96 101 126 140 144 148 150 163 170 166 177 180 Hospitality & Others 210 192 CN Reta
Slide 19: Leasing and operational update
Hongkong Land 2024 Results Presentation 03 Leasing and operational update 19 Leasing and operational 03 update
Slide 20: Hong Kong Office
Hongkong Land 2024 Results Presentation 03 Leasing and operational update 20 Hong Kong Office Resilient leasing performance HK$101 92.7% 3.7 Average net rent Period-end occupancy Weighted average lease expiry (years) (HK$ psf/month) (92.9%, Period-end occupancy on a 3.8 years at Dec 2023 5% vs 2023
Slide 21: Market Highlights – HK Office
Hongkong Land 2024 Results Presentation 03 Leasing and operational update 21 Market Highlights – HK Office Sustained flight to quality trend; recovery in HK capital market activity positive for demand HK IPO activity expected to improve in 2025 HKL rents continues to outperform in subdued market con
Slide 22: Hong Kong Retail - LANDMARK
Hongkong Land 2024 Results Presentation 03 Leasing and operational update 22 Hong Kong Retail - LANDMARK Lower contributions as Tomorrow’s CENTRAL kicks off; positive rent reversions outperform overall market HK $ 2 10 97.0% 1.8 Average net rent Period-end occupancy Weighted average lease expiry (ye
Slide 23: Market Highlights – HK Retail
Hongkong Land 2024 Results Presentation 03 Leasing and operational update 23 Market Highlights – HK Retail LANDMARK – a differentiated offering focused on the ultra-high net worth segment +1% y-o-y* HK$ 200m BESPOKE VIC sales in 2024 Top 10 transactions combined value (+1% y-o-y) HK$ bn 1 +6% y-o-y
Slide 24: Singapore Office
Hongkong Land 2024 Results Presentation 03 Leasing and operational update 24 Singapore Office Strong performance driven by quality offering and limited supply S $11.1 98.4% 3.3 Average gross rent Period-end occupancy Weighted average lease expiry (years) (SG$ psf/month) (99.0%, Period-end occupancy
Slide 25: Market Highlights – SG office
Hongkong Land Hongkong Land 2024 Results Presentation 03 Leasing and operational update 25 Market Highlights – SG office Limited new supply in CBD Tight supply and flight to quality drive CBD Grade A office new supply as % of existing stock, 2025-2029 Singapore office performance 1.4% 0.5% CBD Grade
Slide 26: Westbund Central
Hongkong Land 2024 Results Presentation 03 Leasing and operational update 26 Westbund Central Phase 1 (completed in 2024) Phase 2 (expected completion in 2025) Residential for sale Office leasing/pre-sales ongoing Office sales/leasing progress for Plot F, (% of GFA sq. m). • 80 units sold out on lau
Slide 27: Sustainability in action
Hongkong Land 2024 Results Presentation 03 Leasing and operational update 27 Sustainability in action ESG Ratings Circularity at Tenant Sustainability Decarbonisation Tomorrow’s CENTRAL Partnership Programme • Reduced Scope 1 and 2 absolute • Ambitious construction waste • 23% of the occupied office
Slide 28: Results and financial review
Hongkong Land 2024 Results Presentation 04 Results and financial review 28 Results and financial 04 review
Slide 29: Operating and Underlying Profit
Hongkong Land 2024 Results Presentation 04 Results and financial review 29 Operating and Underlying Profit Contributions to Underlying Profit/ (loss) Movement in Underlying Profit/ (loss) US$m US$m $734m $410m +$106m $824m $724m 371 477 -$54m -$152m $410m -$314m 984 930 Underlying profit IP operatin
Slide 30: Rental Income
Hongkong Land 2024 Results Presentation 04 Results and financial review 30 Rental Income Lower contributions from Hong Kong partially offset by more contributions from Singapore and Chinese mainland Attributable Gross Rental Income* US$m HK Office • Negative rental reversions persist on subdued mark
Slide 31: Operating Profit – Build-to-sell
Hongkong Land 2024 Results Presentation 04 Results and financial review 31 Operating Profit – Build-to-sell Higher completions on Chinese mainland and Singapore offset by inventory provisions Operating Profit – Build to sell US$m $126m 18 Chinese • More planned project completions $273m 64 mainland
Slide 32: NAV impacted by valuation losses
Hongkong Land 2024 Results Presentation 04 Results and financial review 32 NAV impacted by valuation losses NAV movement (US$m) and NAV per share (US$) 724 • Recurring earnings offset by investment (1,403) Properties valuation reduction due to decline in (314) (383) (486) (163) HK office market rent
Slide 33: Commitment to growing DPS over time
Hongkong Land 2024 Results Presentation 04 Results and financial review 33 Commitment to growing DPS over time Dividend per share, US¢ / share Final dividend (US¢) Interim dividend (US¢) • Final dividend of 17¢, up 6% from prior year (5% on 23.0 full year dividends) 22.0 • DPS growth in line with in
Slide 34: Strong balance sheet; borrowing cost declined
Hongkong Land 2024 Results Presentation 04 Results and financial review 34 Strong balance sheet; borrowing cost declined HK$12bn committed revolving bank facilities refinanced at favourable margins Maturity Profile of Debt at 31 December 2024 (US$m) 31 Dec 2024 31 Dec 2023 Bonds Net debt (US$bn) 5.1
Slide 35: Outlook and focus
Hongkong Land 2024 Results Presentation 05 Outlook and focus 35 Outlook and focus 05
Slide 36: Operational Outlook
Hongkong Land 2024 Results Presentation 05 Outlook and focus 36 HK Office: Operational Outlook › Rental reversions to remain negative in 2025 › Flight to quality by tenants prioritising quality of space over size to continue › Upside dependant on capital market outlook Three Exchange Square, Hong Ko
Slide 37: Focus & opportunities
Hongkong Land 2024 Results Presentation 05 Outlook and focus 37 Focus & opportunities What we said in October 2024 Executing our strategy • Accelerate initiatives with pragmatic approach Portfolio recycling • Multiple opportunities emerging • Maintain prudent approach to capital management Capital M
Slide 38: Thank you
Hongkong Land 2024 Results Presentation 38 Thank you
Slide 39: Q&A
Hongkong Land 2024 Results Presentation 39 Q&A
Slide 40: Appendix
Hongkong Land 2024 Results Presentation Appendix 40 Appendix
Slide 41: Completed Prime Properties Investment Overview
Hongkong Land 2024 Results Presentation Appendix 41 Completed Prime Properties Investment Overview Completed Prime Properties Investment are primarily located in Hong Kong and Singapore TOTAL COMPLETED AREA (HKL’s share) (000’s sq. ft NFA) 4,699 523 TOTAL TOTAL 224 TOTAL HONG KONG BEIJING 4,086 384
Slide 42: Hong Kong Prime Properties Investment Summary
Hongkong Land 2024 Results Presentation Appendix 42 Hong Kong Prime Properties Investment Summary HKL’s SHARE (’000 sq. ft NFA) OFFICE RETAIL HOTEL TOTAL One Exchange Square 569 - - 569 Two Exchange Square 509 - - 509 Three Exchange Square 321 - - 321 Exchange Square Podium 2 49 - 51 The Forum 41 -
Slide 43: Singapore Prime Properties Investment Summary
Hongkong Land 2024 Results Presentation Appendix 43 Singapore Prime Properties Investment Summary HKL’s SHARE (’000 sq. ft NFA) OFFICE RETAIL TOTAL One Raffles Link 237 74 311 One Raffles Quay 440 2 442 MBFC 958 60 1,018 Total 1,635 136 1,7711 1 Equivalent to 165,000 sq. m .
Slide 44: Other Prime Properties Investment Summary
Hongkong Land 2024 Results Presentation Appendix 44 Other Prime Properties Investment Summary HKL’s SHARE (’000 sq. ft NFA) OFFICE RETAIL HOTEL TOTAL Beijing - 384 139 523 Macau - 73 151 224 Jakarta 1,027 90 - 1,117 Phnom Penh 198 142 94 434 Others 42 216 258 Total 1,267 689 600 2,5561 1 Equivalent
Slide 45: Investment Properties - Valuation
Hongkong Land 2024 Results Presentation Appendix 45 Investment Properties - Valuation US$m Valuation Capitalisation Rates As at 31 December As at 31 December % As at 31 December As at 31 December 2024 2023 Change 2024 2023 Hong Kong Office* 18,714 20,910 -11% 2.90% - 3.50% 2.90% - 3.50% Hong Kong Re
Slide 46: Tenant Portfolio (Profile by Area)
Hongkong Land 2024 Results Presentation Appendix 46 Tenant Portfolio (Profile by Area) at 31 Dec 2024 HK Retail Singapore Office HK Office 8% 10% 16% 3% 2% 5% 5% 6% 8% 10% 44% 40% 58% 6% 14% 31% 34% Banks & Other Financial Services Fashion & accessories Banking and Finance Legal Food & Beverage Tech
Slide 47: Westbund Central
Hongkong Land 2024 Results Presentation Appendix 47 Westbund Central Detailed GFA Breakdown ACCOUNTABLE GFA DP (sq. m.) IP (sq. m.) TOTAL (sq. m.) Office for Sale 257,657 - 257,657 Office for Lease - 393,982 393,982 Retail for Lease 6,007 223,870 229,877 Residential for Sale 24,465 - 24,465 Hotels -
Slide 48: Lifestyle retail – The RING series
Hongkong Land 2024 Results Presentation 48 Appendix Lifestyle retail – The RING series Chongqing performance improved after first leasing cycle; Chengdu opening well received The Ring, Chongqing The Ring, Chengdu Occupancy 95% 96% Retail sales 24% Opened June 2024 (y-o-y)
Slide 49: Chinese Mainland retail pipeline
Hongkong Land 2024 Results Presentation Appendix 49 Chinese Mainland retail pipeline 5 CENTRAL series malls（1 in operation) In operation Pipeline WF CENTRAL Nanjing Chongqing Suzhou Shanghai Beijing 2025* 2026* 2026* 2027* 2018 2021 2024 2025 2026 2027 2028 The Ring, The Ring, Shanghai Nanjing Chong
Slide 50: Build-to-sell Overview
Hongkong Land 2024 Results Presentation Appendix 50 Build-to-sell Overview HKL’s Build-to-sell portfolio primarily spans six countries and 15 cities TOTAL AREA UNDER CONSTRUCTION / TO BE DEVELOPED (HKL’s share) 1,389 (000’s sq. m. GFA) TOTAL CHINESE MAINLAND 157 3,778* TOTAL 21 TOTAL THAILAND HONG K
Slide 51: Chinese Mainland Build-to-sell Portfolio – Overview
Hongkong Land 2024 Results Presentation Appendix 51 Chinese Mainland Build-to-sell Portfolio – Overview 37 projects spread across seven cities; total attributable developable area 8.3 million sq. m. Century Land Dream Land ▪ 15 projects CHONGQING WUHAN ▪ Four projects ▪ Total GFA 7.1 million sq. m.
Slide 52: Chinese Mainland Build-to-sell
Hongkong Land 2024 Results Presentation Appendix 52 Chinese Mainland Build-to-sell Revenue Recognised# Contracted Sales# Sold but Unrecognised Sales# 2,400 $2,204m $1,530m $1,873m 2,800 1,600 $1,343m 290 11 2,000 $1,621m 270 6 2,400 $1,300m 4 367 101 $2,087m 80 $2,031m 1,600 518 1,200 122 146 142 2,
Slide 53: Chinese Mainland – Completed Sales Gross Margin
Hongkong Land 2024 Results Presentation Appendix 53 Chinese Mainland – Completed Sales Gross Margin Gross Margin % (before LAT) 50% 44% 40% 40% 36% 30% 28% 22% 23% 20% 19% 10% 0% 2018 2019 2020 2021 2022 2023 2024 Note: The above analysis includes share of Joint Ventures & Associates; post provision
Slide 54: Chinese Mainland – Attributable Saleable GFA Completions
Hongkong Land 2024 Results Presentation Appendix 54 Chinese Mainland – Attributable Saleable GFA Completions ‘000 sq. m. 600 Forecast 518 505 500 1 61 81 400 45 108 13 49 298 300 - 20 267 164 3 259 1 76 72 9 83 65 200 4 22 37 34 106 - 22 15 208 34 35 11 100 201 88 87 92 0 2023 2024 2025 2026 2027 Ch
Slide 55: Chinese Mainland Build-to-sell Summary (1)
Hongkong Land 2024 Results Presentation Appendix 55 Chinese Mainland Build-to-sell Summary (1) HKL’s share DEVELOPABLE UNDER TO BE YEAR OF SITE AREA CONSTRUCTED PROJECT CITY INTEREST AREA CONSTRUCTION DEVELOPED (m ACQUISITION (ha) (m sq. m.) (m sq. m.) (m sq. m.) sq. m.) CBD Z3 Beijing 30% 2010 1.1
Slide 56: Chinese Mainland Build-to-sell Summary (2)
Hongkong Land 2024 Results Presentation Appendix 56 Chinese Mainland Build-to-sell Summary (2) HKL’s share DEVELOPABLE UNDER TO BE YEAR OF SITE AREA CONSTRUCTED PROJECT CITY INTEREST AREA CONSTRUCTION DEVELOPED (m ACQUISITION (ha) (m sq. m.) (m sq. m.) (m sq. m.) sq. m.) Creative Land Chengdu 100% 2
Slide 57: Chinese Mainland – Assets Held for Medium-Term Lease under Development
Hongkong Land 2024 Results Presentation Appendix 57 Chinese Mainland – Assets Held for Medium-Term Lease under Development ESTIMATED NLA ESTIMATED YEAR OF PROJECT CITY INTEREST TYPE (% of total NLA) (HKL’s Share) COMPLETION ‘000 sq. m. CBD Z3 Beijing 30% 38 Office (95%); Retail (5%) 2026 Central Ave
Slide 58: Singapore Build-to-sell Portfolio - Overview
Hongkong Land 2024 Results Presentation Appendix 58 Singapore Build-to-sell Portfolio - Overview TEMBUSU GRAND COPEN GRAND ▪ 50% JV with CDL ▪ 49% JV with CDL ▪ 639 units ▪ 638 units ▪ 68,000 sq. m. GFA ▪ 60,000 sq. m. GFA ▪ Completion: 2025 ▪ Completion: 2025 ▪ 99% pre-sold ▪ 87% pre-sold NAVA GROV
Slide 59: Singapore Build-to-sell
Hongkong Land 2024 Results Presentation Appendix 59 Singapore Build-to-sell 2024 contracted sales driven by sales of Tembusu Grand and Nava Grove Revenue Recognised# Contracted Sales# Sold but Unrecognised Sales# US$m US$m 500 US$443m 700 US$615m 900 US$587m US$829 400 US$379m 73 600 800 25 US$351m
Slide 60: Singapore Build-to-sell Summary
Hongkong Land 2024 Results Presentation Appendix 60 Singapore Build-to-sell Summary HKL’s SHARE DEVELOPABLE UNDER TO BE YEAR OF SITE AREA CONSTRUCTED PROJECT INTEREST AREA CONSTRUCTION (m DEVELOPED (m ACQUISITION (ha) (m sq. m.) (m sq. m.) sq. m.) sq. m.) Leedon Green 50% 2019 3.0 0.03 0.03 - - Picc
Slide 61: Other Southeast Asia Build-to-sell Summary
Hongkong Land 2024 Results Presentation Appendix 61 Other Southeast Asia Build-to-sell Summary HKL’s share DEVELOPABLE UNDER TO BE YEAR OF SITE AREA CONSTRUCTED PROJECT CITY INTEREST AREA CONSTRUCTION DEVELOPED (m ACQUISITION (ha) (m sq. m.) (m sq. m.) (m sq. m.) sq. m.) Nava Park Indonesia 49% 2012
Slide 62: Consolidated Balance Sheet
Hongkong Land 2024 Results Presentation Appendix 62 Consolidated Balance Sheet FY2023 US$m FY 2024 % Investment Properties 26,687 - Subsidiaries 24,760 -7 5,880 - Joint ventures 6,019 +2 32,567 30,779 -5 Development Properties* 2,941 - Subsidiaries 2,375 -19 7,000 - Joint ventures 6,399 -9 (1,711) -
Slide 63: Gross Assets as at 31 Dec 2024
Hongkong Land 2024 Results Presentation Appendix 63 Gross Assets as 31 Dec 2024 Prime By Activity Properties Investment By Location Hong Kong Southeast Asia Build to sell Chinese Mainland and 17% Macau 22% 13% 65% 83%
Slide 64: Treasury Management
Hongkong Land 2024 Results Presentation Appendix 64 Treasury Management Liquidity at 31 Dec 2024 (all figures in US$bn) Liquidity at HK$ SG$ US$ RMB THB TOTAL 31 DEC 2023 Committed lines 9.4 5.5 0.5 - 1.6 0.5 8.1 Gross debt 6.6 4.1 0.2 - 1.5 0.4 6.2 Available lines 2.8 1.4 0.3 - 0.1 0.1 1.9 Cash 1.2
Slide 65: Reconciliation underlying profits to statutory profits
Hongkong Land 2024 Results Presentation Appendix 65 Reconciliation underlying profits to statutory profits 2024 2023 US$m US$m Change in fair value - Subsidiaries (1,888) (1,324) - Joint ventures 146 20 (1,742) (1,304) Tax on change in fair value of investment properties - Subsidiaries (31) (26) - J
Slide 66: Sustainability – ESG Ratings
Hongkong Land 2024 Results Presentation Appendix 66 Sustainability – ESG Ratings Aspiring towards sustainability leadership – Ranked “low risk” since 2022 – Qualified as a constituent of the Dow Jones – Received Regional ESG Top-Rated Sustainability World Index for the first year badge – Qualified a
Hongkong Land Holdings — FY2024 Earnings Presentation on 6ix