Summary of annual results 2021/22
- Despite the uncertainties surrounding the intermittent waves of resurgence of COVID-19, the underlying profit attributable to shareholders of the Group, excluding the effect of changes in the fair value of investment properties for the year ended June 30, 2022 has been HK$6.5 billion (2020/2021: HK$10.3 billion).
- Real estate sales revenue, including real estate sales of associates and joint ventures, attributable to the Group was HK$10.8 billion (2020/2021: HK$18.5 billion), primarily includes sales of residential units and car parks in the project completed during the year, namely Mayfair By The Sea 8 and sales of remaining inventory in projects completed in previous years.
- Final dividend of 42 HK cents per share. With the interim dividend paid, the total amount of interim dividend and final dividend for the year amounted to 57 HK cents per share, representing a year-on-year increase of 3.6%.
- The Group remains focused on long-term sustainable growth. With a solid financial situation, the Group is well positioned to weather a difficult economic environment and seize opportunities.
Results and highlights of the activity
HONG KONG, August 25, 2022 /PRNewswire/ — Sino Land Company Limited (stock code: 83) today announced its annual results for the fiscal year ended June 30, 2022 (“fiscal year”). The Group’s underlying profit attributable to shareholders was HK$6,530.6 million for the Fiscal Year (2020/2021: HK$10,315.8 million). Operating earnings per share for the Fiscal Year were CHF0.86compared to CHF1.42 during the 2020/2021 financial year.
After taking into account the non-cash element of the revaluation loss (net of deferred tax) on the investment properties of HK$770.8 millionthe Group recorded net income attributable to shareholders of HK$5,735.3 million for the Fiscal Year (2020/2021: HK$9,646.0 million). Earnings per share for the year were HK$0.76compared to CHF1.33 during the 2020/2021 financial year.
The Board recommended a final dividend of 42 HK cents per share (2020/2021: 41 Hong Kong cents). With the interim dividend paid of 15 HK cents per share, the total interim and final dividend for the full year is 57 HK cents per share, representing year-on-year growth of 3.6% excluding the special dividend paid Last year.
The Group’s balance sheet remained solid and healthy. From June 30, 2022the Group has net cash of HK$41,534.3 millionan augmentation of HK$2,651.1 million compared to a year ago. Thanks to its solid financial situation, the Group is well positioned to weather the difficult economic environment and seize opportunities.
Real estate sales fueled by an attractive project pipeline
Total revenue attributable to the Group from the sale of properties for the Fiscal Year (including the attributable share of associates and joint ventures) was HK$10,841.8 million (2020/2021: HK$18,596.4 million), mainly comprising the disposals of residential units and car parks of the project completed during the Fiscal Year, namely Mayfair By The Sea 8 at Pak Shek Kokas well as sales of remaining housing and parking inventory in projects completed in prior years, including Grand Central in Kwun Tong, 133 Portofino in Sai Kung and The Dynasty in Zhangzhou. During the Fiscal Year, the Group launched three new residential projects in hong kong for sale, namely Villa Garda I and II in Tseung Kwan O, Grand Mayfair I (Phase 1A) and Grand Mayfair II (Phase 1B) in Yuen Long and La Marina in Wong Chuk Hang.
Looking ahead, the Group has an exciting pipeline of new projects to launch. In addition to Villa Garda III in Tseung Kwan O and ONE CENTRAL PLACE in Central, which have obtained pre-sale authorizations, the Group expects to obtain pre-sale authorizations for three other residential projects during the financial year 2022/2023, namely Grand Mayfair Phase 2 at Yuen Long, Wong Chuk Hang Station Package Four Property Development and Yau Tong Ventilation Building Property Development. The timing of the sale of these projects will depend on the date of receipt of the pre-sale consents and prevailing market conditions.
During the Fiscal Year, the Group took stakes in two projects in Singapore, including a 20% interest in a commercial and residential site located at Jalan Anak Bukit with a total gross floor area of approximately 1,007,026 square feet. The development will include a mix of residences, serviced residences, retail, restaurants and offices. A new bus interchange and underground pedestrian link to the Beauty World MRT station will also be incorporated into the development. The Group also acquired a 25% interest in the Golden Mile complex located at 5001 Beach Road, with a total existing gross floor area of approximately 609,791 square feet. The project involves the redevelopment of the property into a new mixed-use development, which may include housing, office and retail. In hong kongthe Group acquired an additional 6.75% stake in Grand Victoria, an existing residential project located in South West Kowloon, of a joint venture partner, increasing its interest in the project from 22.50% to 29.25%. Like a June 30, 2022the Group had a property portfolio of approximately 20.4 million square feet of attributable floor area in mainland China, hong kong, Singapore and sydneywhich will be sufficient to meet the Group’s development needs over the next few years.
Good recurring rental income with a growing portfolio of investment properties
The Group’s investment properties will continue to be a key pillar of the Group’s sustainable business growth strategy. Some of the Group’s projects currently under development include commercial and office space, and will be added to the Group’s investment property portfolio for recurring rental income. These projects total over 1.7 million square feet of attributable space and provide an approximate 16% increase in space to our existing investment property portfolio.
For the Fiscal Year, gross rental income attributable to the Group, including the share of associates and joint ventures, was HK$3,546.1 million. The Group recorded a slight improvement in the average occupancy rate to 90.8% over the Fiscal Year (2020/2021: 89.8%). Net rental income for the Fiscal Year was HK$3,101.6 million (2020/2021: HK$3,216.5 million), down 3.5% year-on-year.
For the Retail sector, in order to support our tenants in this difficult period, the Group deployed a series of initiatives to boost the consumption of its retail assets during the Fiscal Year. Along with government voucher programs (“Consumption vouchers”), in addition to partnering with major payment gateways, business partners and tenants to encourage consumers to use their consumption vouchers in our shopping centers, the Group has organized a series of events in flagship stores shopping malls including Olympian City 2 and Tuen Mun Town Square to celebrate the Tokyo 2021 Olympic Games, which attracted many celebrities and many of their supporters. Overall, tenant footfall and sales at our flagship malls have improved since the trough of the pandemic. The Group’s retail portfolio recorded an improvement in the average occupancy rate to around 92.9% (2020/2021: 90.4%)
Office sector performance remained challenging as uncertainties surrounding the pandemic continued to impact the office market. The Group’s office portfolio recorded an average occupancy rate of 89.7% (2020/21: 91.0%) over the Fiscal Year. At the same time, the Group continued to enrich its portfolio to increase its competitiveness. Landmark South and a north are two of the group’s newest projects using the best construction specifications and accredited green features. The Group recently obtained the Occupancy Permit for the Landmark South and should attract users looking for quality and sustainable office space.
For the Fiscal Year, the Group’s hotel revenue, including the share of associates and joint ventures, was HK$582.7 million compared to HK$350.8 million last year, and segment operating profit was HK$92.9 million compared to the operating loss of HK$69.1 million Last year. Although the pandemic may continue to affect us in the short term, we are optimistic about the growing demand for luxury hotels in our core markets. The Group opened The Fullerton Ocean Park Hotel Hong Kong in July 2022the first Fullerton hotel in hong kong. Positive responses and comments have been received from our discerning guests since the hotel early stage soft opening.
Stay focused on long-term sustainable growth
The Group remains focused on long-term sustainable growth.
“As we enter the 2022/2023 financial year, the Group will remain vigilant in monitoring market developments, while proactively addressing challenges and seizing future opportunities. interest rates could put pressure on the real estate sector, the residential market in hong kong remains resilient and fundamentally sound. Demand from end users remains strong in hong kong as evidenced by the successful market launches over the past few months,” said Mr. Robert Ng Chee SiongPresident of sino land.
“The Group’s strong commitment to hong kong and mainland China remains intact, and we are committed to fostering positivity in the community as we grow with it. Although there continue to be challenges ahead, with our strong financial position and sustainable business growth strategy, the Group is well positioned to weather the difficult economic environment and seize opportunities.”