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Hongkong Land
Financial highlights
- Significant improvement in 5Y TSR as HKL execute strategy
- US$3.6bn capital recycled at the end of February 2026, 90% of HKL’s 2027 US$4bn target
- Total equity: Central portfolio valuation increases for first time since 2018
- Temporary decrease in underlying net profit, impacted by softer Hong Kong office and Landmark renovation
- 5% increase in dividend paid to JMH parent in line with HKL’s commitment to grow dividends per share over time
2025 |
2024* |
Change (%) |
|
|---|---|---|---|
5Y TSR (%) |
16% |
1.2% |
14.8ppts |
Net cash/(debt) (US$m) |
(3,577) |
(5,088) |
+30% |
Total equity (US$m) |
30,833 |
29,969 |
+3% |
NAV per share (US$) |
14.30 |
13.57 |
+5% |
Underlying net profit (US$m) |
458 |
499 |
-8% |
Contribution to JMH underlying net profit (US$m) |
245 |
265 |
-8% |
Dividend paid to JMH parent (US$m) |
271 |
259 |
+5% |
Figures above are on a 100% Hongkong Land basis
Strategic progress
- Strategic progress delivers 58.8% 1Y TSR
- Substantial capital recycling
- Partial disposal of One Exchange Square to HKEX
- Sale of MCL Land
- Wind down of build-to-sell
- SCPREF formed with US$6.4bn AUM, a scalable asset management platform with higher quality of earnings
- ‘Tomorrow’s CENTRAL’ progressing to deliver higher yield
- Over US$330m share buyback invested up to end of February 2026
Value creation
Total shareholder return (%)
Underlying EPS (US¢)
DPS (US¢)
*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 business in 2025. The profit and loss from the non-strategic business is therefore presented separately from the underlying performance and reported within non-trading items. The comparative figures have been re-presented.
Hongkong Land (HKL)’s contribution to JMH’s underlying net profit decreased by 8% to US$245 million, principally due to lower average office rentals and the temporary impact of reduced Hong Kong retail rental income as a result of ongoing renovation works of the Landmark luxury retail space. Recurring dividend income received by the JMH parent increased by 5% to US$271 million, in line with Hongkong Land’s mid-term strategy and prospects, and consequent commitment to growing dividends per share over time.
HKL 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 since their new strategy was announced in October 2024. These include the partial disposal of One Exchange Square to the Hong Kong Stock Exchange (US$0.8 billion), the sale of MCL Land (US$0.7 billion), the recycling from other build-to-sell portfolio (US$0.8 billion), and the formation of the Singapore Central Private Real Estate Fund (SCPREF) and resulting disposal of Hongkong Land’s 33.3% interest in Marina Bay Financial Centre Tower 3 in Singapore for S$1.7 billion (US$1.3 billion). This represents 90% of HKL’s target of recycling at least US$4 billion by the end of 2027.
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 February 2026, HKL announced the establishment of SCPREF, its first private real estate fund. The new fund has more than US$6.4 billion of assets under management, 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.
SCPREF represents a significant milestone in the execution of HKL’s strategy to build a scalable third-party capital platform, broadening HKL’s investor base and diversifying income through fee-based revenues. As the manager of SCPREF, HKL intends to pursue growth opportunities in prime commercial properties – focusing on Singapore’s key business districts – in a more capital-efficient manner. This is an example of both Jardine Matheson supporting our portfolio companies to enhance quality of earnings, and the portfolio company leadership team executing new strategies at pace. Michael Smith and his management team are bringing outstanding innovation and creativity to the business.
