- In Oct-24, Hongkong Land's Chief Executive Michael Smith unveiled its new corporate strategy, aiming to simplify its business with a focus on investment properties (IP) in Asia’s gateway cities. The company expects to expand IP AUM to US$100bn by 2035.
Scaling down development business.
- - Read this at SGinvestors.io -
- In the past 10 years, development profits, primarily from China and Singapore, had made up more than 30% of Hongkong Land’s underlying profits in some years. However, development profits are erratic in nature, which has led to higher earnings volatility.
- - Read this at SGinvestors.io -
- As of Jun-24, Hongkong Land has development land of 1.96msm, 0.14msm and 2.2msm in China, Singapore and Rest of Asia in terms of attributable GFA with carrying value of US$7.7bn. We believe it could take some years to wind down its build-to-sell business.
Portfolio recycling needed for expansion and to enhance shareholder returns.
- Read more at SGinvestors.io.
