Henderson Land Development Company (0012) H2 2025 earnings summary

Executive summary

• Underlying profit attributable to equity shareholders for 2025 was HK$6,063 million, down 38% year-over-year, mainly due to lower gains from land resumption and property disposals compared to 2024.

• Reported profit attributable to equity shareholders was HK$5,653 million, a 10% decrease from the previous year.

• Revenue increased by 2% to HK$25,741 million, but operating profit fell 36% to HK$6,424 million.

• Final dividend proposed at HK$0.76 per share, total annual dividend HK$1.26 per share, down 30% year-over-year.

Financial highlights

• Underlying earnings per share: HK$1.25 (2024: HK$2.02); reported EPS: HK$1.17 (2024: HK$1.30).

• Net debt reduced to HK$60,219 million (2024: HK$67,989 million); gearing ratio improved to 18.7% from 21.1%.

• Gross revenue from property development rose 17% to HK$14,639 million; property leasing revenue fell 3% to HK$6,764 million.

• Rental income in Hong Kong up 1% to HK$6,916 million; Mainland rental income down 13% to HK$1,826 million.

• Finance costs after capitalisation: HK$2,444 million; effective borrowing rate: 3.41%.

Outlook and guidance

• Plans to launch eight development projects in Hong Kong in 2026, with about 2.3 million sq. ft. of residential GFA and 180,000 sq. ft. of office/industrial space available for sale.

• Attributable sales of HK and Mainland properties not yet recognised total HK$12,784 million, with HK$10,436 million expected to be recognised in 2026.

• Investment property portfolio set to grow with Central Yards and other landmark projects; recurrent rental income expected to increase.