Hongkong Land: Property Group Profile
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- Sep 11
- 3 min read
Hongkong Land: Property Group Profile
Hongkong Land is a major property investment, management, and development group with a long history, founded in 1889. The company is a member of the Jardine Matheson Group and is known for its portfolio of prime commercial and residential properties across Asia.
Business and Operations
Primary Focus: Hongkong Land's core business revolves around property investment and development. It owns and manages a significant portfolio of prime office and luxury retail properties in key cities, with a particularly strong presence in Hong Kong and Singapore.
Key Markets: The company's main markets include:
Hong Kong: It is the single largest landlord in Central, Hong Kong, with a portfolio of approximately 450,000 square meters of commercial property.
Singapore: It holds about 165,000 square meters of office space, often through joint ventures, including stakes in prominent developments like Marina Bay Financial Centre and One Raffles Quay.
Mainland China and Southeast Asia: Hongkong Land has a number of residential and mixed-use projects under development in cities across Greater China and Southeast Asia, including a large-scale project in Shanghai's West Bund.
Business Segments: The company operates through two main segments:
Investment Properties: This segment focuses on owning and managing properties for long-term rental income.
Development Properties: This segment involves the development and sale of residential and mixed-use projects.
Strategic Shift: In late 2024, Hongkong Land announced a new corporate strategy to pivot away from its "build-to-sell" residential development business and focus more on becoming a fund manager. This involves developing and managing ultra-premium integrated commercial properties in Asia's gateway cities and seeking third-party capital. The goal is to grow assets under management to $100 billion by 2035.
Corporate Information
Incorporation: Hongkong Land Holdings Limited is incorporated in Bermuda.
Listings: It has a primary listing on the London Stock Exchange and secondary listings in Bermuda and Singapore.
Headquarters: The company's assets and investments are managed from Hong Kong.
Parent Company: Hongkong Land is part of the Jardine Matheson Group.
Financial Performance
2024 Financials: Hongkong Land reported a significant net loss attributable to shareholders of US$1.39 billion for the financial year 2024, which was a widening of the loss from the previous year. This was primarily due to non-cash provisions and falling valuations of its investment properties, especially in Hong Kong's Central district.
Underlying Profit: The company's underlying profit, which provides a better measure of its ongoing business performance, was US$410 million, a 44% decrease year-on-year. This was also impacted by non-cash provisions related to its mainland China "build-to-sell" business.
Dividend: Despite the losses, the company proposed a final dividend of US$0.17 per share for 2024, a 6% increase, signaling confidence in its future strategy.
2025 Outlook: The company expects a partial recovery in underlying profits for 2025, though at levels still below those of 2023.
Recent Strategic Developments and Asset Recycling
Following the announcement of its new corporate strategy in late 2024, Hongkong Land has been actively engaged in capital recycling.
Asset Divestment: In early 2025, the company made a significant move by selling nine upper office floors and two retail levels of One Exchange Square in Hong Kong to the Hong Kong Exchange and Clearing Ltd (HKEX) for approximately US$810 million. This deal is seen as a key step in unlocking the value of its assets and providing capital for its share buyback program.
Pivot to Fund Management: The new strategy involves a pivot away from its traditional "build-to-sell" residential development model in favor of becoming a fund manager. The goal is to develop and manage ultra-premium integrated commercial properties in Asia's gateway cities, attracting third-party capital to grow assets under management to US$100 billion by 2035.
Key Leadership
Michael T. Smith: He was appointed Chief Executive in April 2024 and has been instrumental in spearheading the new strategic vision.
John Witt: Serves as the Chairman of the company.
Major Projects and Portfolio Highlights
Hong Kong: The company remains the largest landlord in Central, with a portfolio that includes iconic buildings like the Landmark, Prince's Building, Chater House, and Alexandra House, all interconnected by a pedestrian walkway system. It has focused on upgrading and redeveloping these properties.
Mainland China: Hongkong Land has a large portfolio of residential and mixed-use projects under development in cities across Greater China, including a major mixed-use project in Shanghai's West Bund.
Singapore: The company's presence in Singapore is primarily through joint ventures, holding significant interests in developments like Marina Bay Financial Centre and One Raffles Quay. It is also exploring new strategies like "hotelification" to enhance the tenant experience in its office buildings.
Southeast Asia: The company also has a presence in other Southeast Asian markets, with projects in countries such as Indonesia (Jakarta), Vietnam (Ho Chi Minh City), Thailand (Bangkok), and the Philippines (Cebu and Manila).
Hongkong Land: Property Group Profile
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