Sino Land reported a 14 percent increase in net profit for the fiscal year ending June 30, supported by a reduction in losses from the revaluation of its investment properties. The Hong Kong-based developer said net profit attributable to shareholders rose to HK$4.59 billion, up from HK$4.02 billion the previous year. This improvement came as losses on investment property valuations narrowed significantly to HK$192 million from HK$1.08 billion.
However, excluding these valuation changes, underlying profit declined 6.4 percent to HK$4.79 billion, indicating ongoing challenges within the company’s core operations. Despite a slight improvement in occupancy rates—rising to 90 percent from 89.6 percent—the investment property division saw a 1.5 percent drop in rental income, which fell to HK$3.43 billion.
Sino Land attributed part of the subdued rental income growth to shifts in consumer behavior and travel patterns. The company noted that while Hong Kong’s overall retail sales had shown signs of steady recovery since May 2025, growth in e-commerce continued to outpace traditional retail channels. Additionally, prolonged outbound travel by local residents during extended holidays limited the potential upside for rental income at the group’s major shopping malls.
Residential property sales provided some offset to the pressure on rental income. The attributable segment profit from property sales increased by 8 percent to HK$1.1 billion, with the sale of over 3,500 units generating HK$12.1 billion in attributable sales proceeds for the year. The company maintained its annual dividend at 58 HK cents per share.
On the hospitality front, Sino Hotels, a sister company controlled by the Ng family along with Sino Land, reported full occupancy at City Garden Hotel for the year under a bulk-hiring arrangement. The hotel’s average room rate also increased by 5 percent. Following the fiscal year-end, Sino Hotels secured a new 20-month contract covering all available rooms at pre-agreed rates, extending earnings visibility after the expiration of a previous four-year lease.
During the financial year, Sino Land expanded its landbank by acquiring three sites located in Jordan Valley, Tuen Mun, and near Kam Sheung Road MTR station. The company and its joint venture partners were also awarded a development project in the Hung Shui Kiu/Ha Tsuen New Development Area.
Chairman Daryl Ng Winking emphasized the company’s strong balance sheet and solid fundamentals, expressing confidence in Sino Land’s ability to seize future opportunities. He added that the group remains committed to prudent financial management and improving operational efficiency as it navigates ongoing market fluctuations.