Hongkong Land

Re: Hongkong Land

Postby behappyalways » Sun Aug 06, 2017 12:35 pm

hongkong-land-1h-earnings-more-double-us31-bil
https://www.theedgesingapore.com/hongko ... e-us31-bil
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Re: Hongkong Land

Postby winston » Mon Aug 07, 2017 8:12 am

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HK Land has highest discount to NAV

Source: The Edge

https://www.theedgesingapore.com/hongko ... 4-87358173
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Re: Hongkong Land

Postby winston » Mon Oct 02, 2017 4:42 pm

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HK Land eyes mainland China, Singapore to drive growth

WITH limited prime office space in Hong Kong, property investment, management and development group Hongkong Land is looking to South-east Asia and mainland China as avenues for further growth.

Hongkong Land's strategy involves seeking prime commercial properties for development into long-term investments, as well as developing premium residential and accompanying commercial properties for sale.

The group's half-yearly results report released in August highlighted Singapore and mainland China as the key focus of its development properties portfolio, with higher sales completions in both locations driving underlying profit for the first half of the year up 32 per cent year-on-year to US$517 million.

Singapore has drawn attention with its stable office and residential property markets. Hongkong Land recently signed a memorandum of agreement with Malaysia-listed IOI Properties to jointly develop and manage a white site in Central Boulevard.

Won by IOI Properties via a record bid of S$2.57 billion under the Government Land Sales Programme in November, the site lies close to Hongkong Land's existing investment properties, One Raffles Quay and Marina Bay Financial Centre.

The plan for the site is to have two office towers of about 1,260,000 sq ft of leasable space and a retail podium of about 30,000 sq ft.

Source: The Business Times
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Re: Hongkong Land

Postby winston » Mon Nov 13, 2017 10:51 am

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In good shape
Central office portfolio in good shape
Higher net debt expected by year-end due to land premium payments
Buy with US$8.93 TP

As of Sep-17, net debt was marginally higher compared to Jun-17’s US$1.88bn. It is set to rise further by year-end due to land premium payments for new projects.

Financial risk should remain well managed with gearing estimated to be <15%.

The stock, trading at 38% discount to our assessed current NAV, is inexpensive from a historical perspective.

Tight vacancy and solid demand continues to support office rents in Central.

Coupled with yield compression, office prices have appreciated further. These factors should warrant a higher stock valuation for Hongkong Land.

BUY with US$8.93, based on 30% discount to our Jun-18 NAV estimate.

Source: DBS

https://researchwise.dbsvresearch.com/R ... E=dcacbk-b
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Re: Hongkong Land

Postby winston » Fri Mar 09, 2018 10:14 am

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Central assets selling for only half price

Core profit rose 14% in FY17, slightly missed on higher operating expenses and tax.

HK portfolio remained stable. Office vacancy declined to 1.4%. We expect faster rental growth for both office and retail.

Proactive land banking in FY17, especially in China, which could be a medium-term earnings driver. Maintain Add, with a TP of US$9.1.

52% discount to NAV looks attractive; Maintain Add and US$9.1 TP

We believe that HKL’s Central office portfolio will continue to benefit from strong mainland demand and limited supply in the medium term. The retail recovery in HK, especially in the luxury segment, is expected to continue in FY18.

HKL is trading attractively at a 52% discount to NAV vs. its peers Swire Prop (38%) and Champion REIT (37%). We maintain our Add rating with a TP of US$9.1 based on a 35% discount to NAV.

Key catalysts: faster rental reversion in HK office and pick-up in retail rents, especially turnover rent, in FY18. The increasing contribution from China property sales could also be a medium-term earnings driver.

Key risks: faster-than-expected rate hike in the US, slowdown in HK/China economy


Source: CIMB

https://brokingrfs.cimb.com/y_4XOnWhGoq ... lIptg2.pdf
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Re: Hongkong Land

Postby winston » Fri Mar 09, 2018 12:57 pm

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Hongkong Land posts 67% increase in FY17 earnings to US$5.6 bil on fair value of investment properties

By Samantha Chiew

SINGAPORE (Mar 8): Hongkong Land Holdings, the property group which is a member of the Jardine group, announced FY17 earnings increased by 67% to US$5.6 billion ($7.37 billion) compared to US$3.35 billion in FY16.

Revenue for the full year ended Dec 2017 was US$1.96 billion, 1.5% lower than US$1.99 billion in the previous year.

But the group saw an 83.5% increase in change in fair value of investment properties of US$4.68 billion from US$2.55 billion last year.

The group’s investment properties produced higher results due to higher rents in Hong Kong and continuing low vacancies across both Hong Kong and Singapore.

The contribution from development properties also rose with higher sales completions in mainland China, partially offset by a lower contribution in Singapore.

Underlying profit attributable to shareholders rose 14% to US$970 million.

Share of results of associates and joint ventures quadrupled to US$245.4 million, compared to US$59.1 million a year ago.

The group has declared a final dividend of 14 US cents per share, which will be payable on May 16. This brings the total dividend for the year to 20 US cents per share.

On the outlook, the strong contribution from the group’s investment properties to underlying profit is expected to be maintained in 2018, while further improvements are anticipated from its development properties in mainland China and Singapore.

Shares in Hongkong Land closed at US$6.76 on Thursday.

Source: The Edge

https://www.theedgesingapore.com/hongko ... 0-91832885
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Re: Hongkong Land

Postby winston » Fri Mar 09, 2018 10:16 pm

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Hongkong Land (HKL SP): BUY
Market Cap: US$15,905m
Average Daily Value: US$13.2m
Last Traded Price: US$6.76
Price Target: US$8.53 (Upside 26%)


Investing for the future

FY17 underlying profit up 14% to US$970m, 6% above our forecasts on stronger-than-expected growth in development profit in China

Positive reversionary growth for Central offices to continue

Expanding property presence in China and South East Asia

Compelling valuation; BUY with US$8.53 TP


What’s New

Hongkong Land’s FY17 underlying earnings came in at US$970m, up 14% y-o-y, mainly led by significantly higher development profits from China and increased rental earnings. Final DPS rose 8% to US$0.14, taking the full-year DPS to US$0.20 (FY16: HK$0.19).

Gross rental receipts rose modestly by 6% to US$912m. This reflects the mainly positive rental reversion for its Central office portfolio which resulted in average office rents rising 5% y-o-y to HK$108psf in 2017.

Vacancy for Central office portfolio improved further to 1.4% in Dec-17 from Jun-17’s 1.5%. Retail portfolio remained effectively fully let with base rental reversions largely neutral. However, average retail rents were 3% y-o-y higher at HK$224psf in 2017 due to the full year effect of positive reversions in 2016.

Office rents in Central grew c.6% in 2017 after rising c.10% in 2016, according to Jones Lang LaSalle. Demand from Chinese enterprises shows no sign of abating. Coupled with tight vacancy and limited new supply, office reversionary growth should remain favourable when 31% of lease will be up for renewal or rent review in 2018.

Vacancy of its Singapore portfolio remained low at 0.3% in Dec-17 but negative reversionary growth dragged average rents in 2017. However, the latest deals suggest that the rental reversion is turning positive.

In Beijing, the newly opened WF Central retail complex was 77% occupied as of Feb-18. Committed occupancy should improve to c.90% by Jun-18.

Development profits in China, primarily from Chongqing and Shanghai, were substantially higher in FY17 due to higher project completion, offsetting lower contributions from Singapore.

Due to few launches in 2H17, Hongkong Land’s contracted sales was only marginally higher at US$1.11bn in 2017, which came mainly from projects in Chongqing. Net order book stood at US$1.03bn, of which c.85% is expected to be recognized in FY18. In Singapore, near-term development earnings visibility is high as Sol Acres and Lake Grande, scheduled for completion in FY18 and FY19 respectively, were 96% and 98% pre-sold at the end of 2017.

Hongkong Land is on acquisition mode. In 2017, Hongkong Land made forays into three second tier cities in China, including Wuhan, Nanjing and Hangzhou and acquired two new sites in Chongqing. In Jan-18, the company secured an additional site in Nanjing. Elsewhere, Hongkong Land acquired one residential site in each of Indonesia, Singapore and Bangkok, and conditionally entered into a joint venture to develop two residential projects in Ho Chi Minh City. Total investment for these projects reached US$4.2bn of which c.52% is in China.

Net debt rose to US$2.55bn in Dec-17 from Jun-17’s US$1.9bn due to the payment for committed land purchases in China and Southeast Asia. But gearing remained low at 7%. The company’s financial risk should remain well managed in our view.

The stock is trading at 46% discount to our appraised current NAV, against its 10-year average of 29%. From an historical perspective, it is grossly undervalued and hence our BUY call. Our TP of US$8.53 is based on a 35% discount to our Dec-18 NAV estimate.

Source: DBS

https://researchwise.dbsvresearch.com/R ... VyaWRAQA==
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Re: Hongkong Land

Postby winston » Tue Mar 13, 2018 9:17 am

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China could be a medium-term earnings driver

Management shared a more positive outlook in HKL’s results briefing, i.e. sustainable
growth in office rental and retail sales growth.

HKL has added 12 land parcels recently for US$3.2bn, and several of the sites are in core locations in top-tier cities.

We are positive on earnings growth in the medium-term, supported by the newly acquired land bank.

We believe a 48% discount to NAV offers sufficient downside protection. Reiterate Add. TP raised to US$9.5 due to updated land bank.

Reiterate Add; raise TP to US$9.5

After updating the latest completion schedule, we adjust our FY18-19F core EPS by -1.6%/+7.3% and raise our NAV by 4% to US$13.5/share.

Hence, our TP is lifted to US$9.5, based on a 30% discount to NAV.

We believe that investors should re-visit the name after the strong FY17 results and its decent earnings outlook.

It is now trading at a 48% discount to NAV, which offers sufficient downside protection for investors as well.

Key risks: faster-than-expected rate hike in the US, slowdown in HK/China economy.

Source: CIMB

https://brokingrfs.cimb.com/JWm6KccBjVp ... WpZWQ2.pdf
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Re: Hongkong Land

Postby winston » Fri May 11, 2018 11:05 am

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Offices shining

Central office vacancy fell below 1% on continued favorable rental reversion

Office reversionary growth in Singapore to turn positive later this year

Recent share buyback signals strong embedded value

Maintain BUY with US$8.53

Source: DBS

https://researchwise.dbsvresearch.com/R ... VyaWRAQA==
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Re: Hongkong Land

Postby winston » Wed Jun 27, 2018 12:34 pm

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Hongkong Land, the biggest landlord in Central, does not want to lease space to co-working operators

by Lam Ka-sing

As the co-working craze catches on in the city, with every major developer latching on to the bandwagon, Hongkong Land, the largest office landlord in Central, does not even look remotely interested.

This is despite the supply of co-working space in Hong Kong expanding by 20 per cent to 1.2 million square feet in the five months to May following the entry of some major international co-working brands, who now account for 48 per cent of space in Grade A offices, according to figures from CBRE.

“Co-working operators are not making money,” said Neil Anderson, director and head of office space at Hongkong Land, which owns 4.84 million sq ft of office space in buildings such as Alexandra House, Chater House and Jardine House in Central, the most expensive place to rent office space in the world.

“If you are in a start-up position, I think it really is difficult to make it a profitable business.”

One other reason for Hongkong Land’s reluctance could be the high demand from Chinese companies for grade A space in Central, where rents are close to reaching the all-time high of HK$210 per sq ft set before the 2008 financial crisis.

Hongkong Land is one of the biggest landlords in Central and it owns the Exchange Square (left) and Jardine House (right) among other office towers in the business district.

Rents at Exchange Square owned by the company reached HK$165 per sq ft in May, according to CBRE.

But other landlords have embraced the co-working wave. Hysan Development, Chinese Estates Holdings, Link Reit and Chinachem Group have leased out substantial office space to co-working operators such as theDesk at One Hysan Avenue, Regus at Windsor House, and KrSpace at One Hennessy.

Source: SCMP

http://www.scmp.com/property/hong-kong- ... want-lease
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