Hysan Place sales soar 22%
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Causeway Bay retail landlord Hysan Development says its core net profit rose 5.9 per cent last year to HK$2.16 billion.
Turnover rose 5.3 per cent to HK$3.22 billion but the company’s net profit fell 20.4 per cent to HK$4.9 billion due to a smaller ‘fair value gain’ on its investment property valuations.
The company is now exploring investment opportunities both within Hong Kong and offshore.
“With a strong balance sheet and proven financial discipline, Hysan is now well-positioned to seek opportunities beyond our core portfolio in Causeway Bay,” said chairman Irene Lee Yun-lien.
Hysan, which owns Hysan Place and Lee Gardens, said retail sales within its property portfolio increased 22 per cent year-on-year – against a 0.2 per cent fall in Hong Kong’s overall retail market. A major contributor to that was the opening of an Apple store in Hysan Place.
Deputy chairman and CEO Lau Siu-chuen said the company was unconcerned about possible tightening of mainland travellers access into Hong Kong.
He said Causeway Bay is far from the Shenzhen border and the centres have not been a popular destination for Chinese using multiple-entry permits.
Questions & Answers
Q.Why did Hysan Development's net profit fall despite increased turnover and core net profit?
Why did Hysan Development's net profit fall despite increased turnover and core net profit?
Net profit fell because of a smaller 'fair value gain' on its investment property valuations. This gain is a common accounting measure for real estate companies, and its reduction impacted the overall net profit figure for the year.
Q.What is Hysan Development's strategy for future growth given its current financial position?
What is Hysan Development's strategy for future growth given its current financial position?
The company is exploring new investment opportunities both within Hong Kong and offshore. With a strong balance sheet, Hysan aims to seek opportunities beyond its existing core portfolio in Causeway Bay, according to the chairman.
Q.How did retail sales in Hysan's properties perform compared to the wider Hong Kong market?
How did retail sales in Hysan's properties perform compared to the wider Hong Kong market?
Retail sales within Hysan's property portfolio increased by 22 per cent year-on-year. This growth contrasts sharply with the overall Hong Kong retail market, which experienced a 0.2 per cent fall during the same period.
Q.Is Hysan Development concerned about potential changes to mainland Chinese visitor access to Hong Kong?
Is Hysan Development concerned about potential changes to mainland Chinese visitor access to Hong Kong?
No, the company is not concerned. The deputy chairman stated that Causeway Bay is far from the Shenzhen border and Hysan's centres are not popular destinations for Chinese visitors using multiple-entry permits.
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