Hong Kong's Wen Wei Po News (Reporter Leung Yuk Cum) Benefited by Hysan Place generate rental income amounted to $3.66 billion HKD,Causeway Bay landlord Hysan Development (0014) As of June 30 this year,half year ended core earnings rose 38.1 percent to $1.033 ten billion HKD,better than the market expected,earnings 97.15 cents per share,rose 37.7 percent in year,the first interim dividend of 22 cents,rose 29.4 percent.
Hysan plans to spend $ 2 to $2.5 ten billion HKD on reconstruction of Sunning Plaza and Sunning Court,it is conducting preliminary work ,it is expected to move the existing tenants out in the fourth season of this year,completed in 2018, but did not implement the new office and retail building proportion of the total,after reconstruction,there will have approximately 460,000 feet of floor area,increased by 25% than the current floor.
Stable performance was expected to keep continuously in the second half of year
Hysan Chairman Irene Lee said,because most of the retail and office leases which will expire within this year have been leased,the Group's
performance is likely to remain stable in the second half of year,Hysan Place which opened last August this year have brought the Group's first full year profit contribution,in the period,Hysan Place office has obtained 93% leased,the future will continue to carry out asset enhancement program in order to enhance shareholder returns.
Hysan Deputy Chairman and Chief Executive Officer Lau Siu Chun pointed out that with Hysan Place stabilized rental income,Lee Theatre Plaza
which will be completed the refurbishment in November,is expected to drive business growth in the second half of year,as the payout depends on whether the increase performance of the business,however, he believed,until 2018,Sunning Plaza and Sunning Court redevelopment project before completion,the Group mainly driven by property optimization and office rents,it was expected that over the next few years will be steady growth in revenue.
He pointed out that as office space in Sunning Plaza more than 30 million feet of rental group as a whole accounted for only 4.5 million feet of floor ratio of 8%,coupled with over 10 tenants still choose to lease the Group's office,it is believed that during the redevelopment,there are just little impact on the Group's rental income.
Debt ratio of 6.3%,no financial pressure
Hysan Group Chief Financial Officer Hoi Shi Yan expected,Sunning Plaza project investment of about $2 to $2.5 ten billion HKD,sharing payments in the next few years,coupled with Hysan Place and Lee Theatre Plaza rental income as cash flow,the Group's gearing ratio only 6.3% of the Group's financial pressure,the future is also 1-2 optimize assets.He expects this year's capital expenditure of about $7.0 billion to $1.0 ten billion HKD,Hysan Place accounted for $3.0 billion HKD.
For many analysts refer to the Hong Kong market retail rents have rached the top,high-end retail market has also slowed down,Lau Siu Chun said the group sales high-end consumer business rose 40% in the first half of year,mainly due to the situation of "grab gold wave " appeared in the first half of year,also the group optimize the tenant mix,increasing middle and low consumption,which will increase the midrange in Lee Theatre Plaza tenants,enabling the Group to balance the overall high middle merchants,the first season of th next year,there's an international brand boutiques opened at Lee Gardens mall,he cautiously optimistic about the retail market in the second half of year.During the period,the Group's retail rents (including renewal, new signing) have an increase of approximately 50% of the existing lease compared with nowadays.
He added that affected by the rents fall of the the core areas in Central office,may meet the top in short term eriod,but it is believed this is only a short-term situation,local office still have supply shortage for long-term,still have confidence on Causeway Bay office leasing,its commercial renewals and newly signed rents rose by an average of about 40% in the first half of year,with no single industry accounted for over 20% of rentable floor, where Hysan Place office occupancy rate of 53 per cent by the end of June this year,rose 93%.He said the group has no intention temporarily divested office properties,are also monitoring the development of other commercial projects.
He said that although the market is slowing down,the rental housing which located in Bamboo Grove in Kennedy's road,mid-level decreased by 6.1% to $1.55 billion HKD ,the occupancy rate fell to 87 percent at June 30 this year,a decrease of 8.4% in year.However,the Group have no intends to sell this residential project,but will expand beyond the financial sector tenant base,maintaining tenant retention rate,and enhance the returns for shareholders in an appropriate time.
