Sino Land profit rises 14% as property losses narrow, but core earnings fall

Sino Land’s annual profit rose 14 per cent as losses on its investment properties narrowed, although a decline in underlying earnings pointed to continued pressure on its core business. Net profit attributable to shareholders rose to HK$4.59 billion (US$585 million) in the year ended June 30, from HK$4.02 billion a year earlier, the Hong Kong developer said on Tuesday. Losses from the revaluation of investment properties narrowed to HK$192 million from HK$1.08 billion. Strip out those valuation changes, however, and the picture was less upbeat. Underlying profit fell 6.4 per cent to HK$4.79 billion. The divergence was also evident in Sino’s investment property portfolio. Occupancy edged up to 90 per cent from 89.6 per cent a year earlier, while attributable gross rental revenue fell 1.5 per cent to HK$3.43 billion. “While Hong Kong’s overall retail sales have shown steady signs of recovery since May 2025, the growth in e-commerce continued to outpace that of traditional retail channels,” Sino said. “Coupled with the persistently high level of outbound travel by local residents during extended holidays, the recovery has yet to translate meaningfully into rental income growth across the Group’s major shopping malls.” Residential sales offered some relief. Attributable segment profit from property sales rose 8 per cent to HK$1.1 billion, with more than 3,500 units generating HK$12.1 billion in attributable sales proceeds during the year. The company maintained its annual dividend at 58 HK cents per share. Elsewhere in the Sino Group, its separately listed hotel arm provided a more stable source of income. Sino Hotels, which is controlled by the Ng family alongside Sino Land, said City Garden Hotel maintained 100 per cent occupancy during the year under a bulk-hiring arrangement, while its average room rate rose 5 per cent. After the financial year ended, Sino Hotels secured a new 20-month agreement covering all available rooms at pre-agreed rates, extending the hotel’s earnings visibility after its previous four-year lease expired. Sino also continued to buy. It acquired three sites in Jordan Valley, Tuen Mun and at Kam Sheung Road Station during the financial year. After the year ended, the developer and its joint venture partners were awarded a project in the Hung Shui Kiu/Ha Tsuen New Development Area. “With solid fundamentals and a strong balance sheet, the Group is well-positioned to capitalise on opportunities,” Chairman Daryl Ng Win Kong said in the statement. Sino would continue to “uphold prudent financial management and enhance operational efficiency” as it navigated market fluctuations, he added.