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Hysan’s interim profit increased by 9% and it expects social conflicts to affect the HK economy
Hysan(014) announced its interim results for the 6 months ended 30 June. During the period, Turnover was up by 9.1% to HKD 2086 million. Reported profit decreased by 7.6% to HKD 2783 million; earnings per share was HKD 2.66. Underlying profit was up by 8.9% to HKD 1394 million; underlying profit per share was HKD 1.33; interim dividend per share was 27 HK cents.
During the period, Hysan's retail portfolio turnover increased by 4.1% to HKD 1001 million. The contribution from turnover rent was HKD 49 million, down by 9.2% yoy. The overall rental reversion in renewals, rent review and new lettings was positive. The portfolio's occupancy rate was 96%. In terms of the office portfolio, turnover (including the turnover rent of HKD 3 million) increased by 13.3% to HKD 929 million. The office portfolio's occupancy rate was 97%. The residential portfolio turnover demonstrated a strong increase of 20%, to HKD 156 million; the occupancy of this sector grew by 91%. During the 1H of 2019, a fair value gain on investment properties (after considering capital expenditure spent on investment properties) fell by 18.8% to HKD 1453 million.
We can expect that the Hong Kong economy is deemed to face increasing uncertainties in the second half of 2019. The global economic slowdown and Sino-US trade disputes may have an impact on Hong Kong's economy. In addition, the recent social conflicts are expected to further affect the local economy, particularly on investment demand and the tourism industry.