SINO Land Co, the Hong Kong developer controlled by Singapore billionaire Robert Ng, said first-half profit excluding revaluation gains rose 20% after it completed more apartments in projects including the Hermitage. Profit excluding changes in the value of real estate investments rose to HK$2.43 billion (S$397 million) in the six months ended Dec 31 from HK$2.03 billion a year ago, Sino Land said in a Hong Kong stock exchange statement yesterday. That fell short of the HK$2.8 billion median estimate of 5 analysts. Sales fell to HK$2.56 billion from HK$4.42 billion. Sino Land, which derives almost all of its earnings from Hong Kong, sold about 95% of the apartments in the Hermitage project in the city's West Kowloon district, which is built on land the company acquired with its partners in 2005. Hong Kong home prices have gained more than 60% in the past 2 years on record low mortgage rates and an influx of buyers from China. Sino is earning a 38% return from the project, of which it owns 50%, the analysts said. Hong Kong developers begin selling apartments before they are built and book profit only upon completion. Sino Land's shares declined 2.2% in Hong Kong trading this year, compared with the 4.9% drop in the Hang Seng Property Index, which tracks 7 of the city's biggest developers including Sino Land. Sino Land has been 1 of the most aggressive developers in buying land and buildings in Hong Kong. The company may this year begin selling apartments in projects including Providence Bay in Pak Shek Kok, One Broadcast Drive in Kowloon Tong and the Welfare Road in Aberdeen district.
No comments:
Post a Comment