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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Hong Kong Land Holdings Ld | LSE:HKLJ | London | Ordinary Share | BMG4587L1090 | ORD US$0.10(JERSEY REG) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 7.41 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Lessors Of Real Property,nec | 1.84B | -582.3M | -0.2629 | -28.19 | 16.41B |
TIDMHKLD TIDMJAR TIDMTTM
RNS Number : 4501F
Hongkong Land Hldgs Ltd
28 July 2016
To: Business Editor 28th July 2016
For immediate release
The following announcement was issued today to a Regulatory Information Service approved by the Financial Conduct Authority in the United Kingdom.
HONGKONG LAND HOLDINGS LIMITED
HALF-YEARLY RESULTS FOR THE SIX MONTHSED 30TH JUNE 2016
Highlights
-- Underlying profit down 6% -- Commercial portfolio benefited from low market vacancy -- Steady contribution from mainland China residential business -- Profit attributable to shareholders enhanced by gain on property revaluations
"While the performance from the Group's commercial portfolio is expected to remain stable for the full year, earnings from the residential business are likely to be lower as an improved contribution from mainland China will be more than offset by lower contributions elsewhere."
Ben Keswick
Chairman
Results
Hot Features
Premium
(unaudited)
Six months ended 30th
June
2016 2015 Change
US$m US$m %
Underlying profit attributable to
shareholders(#) 393 419 -6
Profit attributable to shareholders 1,263 513 +146
Shareholders' funds 29,743 28,685* +4
Net debt 2,322 2,341* -1
USc USc %
Underlying earnings per share(#) 16.70 17.82 -6
Earnings per share 53.70 21.79 +146
Interim dividend per share 6.00 6.00 -
US$ US$ %
Net asset value per share 12.64 12.19* +4
# The Group uses 'underlying profit attributable to shareholders'
in its internal financial reporting to distinguish between
ongoing business performance and non-trading items, as more
fully described in note 8 to the condensed financial statements.
Management considers this to be a key measure which provides
additional information to enhance understanding of the Group's
underlying business performance.
* At 31st December 2015
The interim dividend of USc6.00 per share will be payable on 12th October 2016 to shareholders on the register of members at the close of business on 19th August 2016.
HONGKONG LAND HOLDINGS LIMITED
HALF-YEARLY RESULTS FOR THE SIX MONTHSED 30TH JUNE 2016
OVERVIEW
The Group's commercial portfolio provided a stable contribution as it benefited from lower levels of vacancy. In the residential sector, while profits from mainland China remained steady, there was a reduced contribution from Singapore.
PERFORMANCE
During the first half of the year, the Group's underlying profit attributable to shareholders was US$393 million, compared with US$419 million in 2015. The profit attributable to shareholders was US$1,263 million after accounting for a net gain of US$870 million arising on the valuation of the Group's investment properties. This compares with a profit of US$513 million in 2015, after a valuation net gain of US$94 million.
The net asset value per share at 30th June 2016 was US$12.64, compared to US$12.19 at 31st December 2015.
The Directors have declared an unchanged interim dividend of USc6.00 per share.
GROUP REVIEW
Commercial Property
In Hong Kong, low office vacancy levels continued to support the market. Vacancy in the Group's Central office portfolio at 30th June 2016 was 3.1%, compared with 3.4% at the end of 2015. Office rental reversions were positive, and the Group's average office rent rose to HK$103 per sq. ft, compared to HK$101 per sq. ft in both the first and second halves of 2015. The Group's Central retail portfolio remains fully occupied and the base rental reversions continued to be positive. Lower turnover rent, however, led to the average retail rent reducing to HK$216 per sq. ft, compared with HK$219 per sq. ft and HK$223 per sq. ft in the first and second halves of 2015, respectively.
In Singapore, vacancy in the Group's office portfolio had reduced to 1.0% at 30th June 2016 from 3.0% at the end of 2015 as previously committed space was taken up during the period.
In Beijing, the Group's luxury retail complex, WF CENTRAL at Wangfujing, is scheduled to open in the first half of 2017.
In Jakarta, work is continuing on the fifth tower at Jakarta Land, the Group's 50%-owned joint venture, which is on schedule for completion in 2018.
Residential Property
In the first six months of the year, the Group's attributable interest in contracted sales in mainland China was US$432 million, compared to US$328 million and US$474 million in the first and second halves of 2015, respectively. At 30th June 2016, the Group had US$885 million in sold but unrecognised contracted sales, compared with US$821 million at the end of 2015.
In Singapore, there were no projects completed in the first half of 2016, while two projects had been completed in the first half of 2015. The J Gateway project, which has been fully sold, is on schedule for completion in the second half of this year. Pre-sales continue at the LakeVille and Sol Acres projects, which are scheduled for completion in 2017 and 2018, respectively.
Of the Group's other residential developments, in Indonesia, work is progressing well on the 49%-owned joint venture project, Nava Park, and the 40%-owned joint venture project, Anandamaya Residences. Construction is also continuing in the Philippines at the 40%-owned joint venture project, Two Roxas Triangle, in Manila, and pre-selling has commenced at the 40%-owned joint venture, Mandani Bay, in Cebu.
Financing
The Group's financial position remained strong with net debt of US$2.3 billion at 30th June 2016, unchanged from the end of 2015. Gearing was 8%, unchanged from the end of last year.
PEOPLE
Y.K. Pang is stepping down as Chief Executive on 31st July 2016, while remaining a Director of the Group, and will be succeeded by Robert Wong. John Witt stepped down as Chief Financial Officer on 31st March 2016 and was replaced on 28th April by Simon Dixon. We were saddened by the death of Lord Leach in June 2016. He made a significant contribution to the Group and his wise counsel will be greatly missed.
OUTLOOK
While the performance from the Group's commercial portfolio is expected to remain stable for the full year, earnings from the residential business are likely to be lower as an improved contribution from mainland China will be more than offset by lower contributions elsewhere.
Ben Keswick
Chairman
Hongkong Land Holdings Limited
Consolidated Profit and Loss Account
(Unaudited) Year ended 31st December
Six months ended 30th June 2015
2016 2015
-------------------------------- ------------------------------------ ------------ ------------ --------
Underlying Non-trading Underlying Non-trading Underlying Non-trading
business items business items business items
performance US$m Total performance US$m Total performance US$m Total
US$m US$m US$m US$m US$m US$m
--------- -------------------- ------------ -------- ------------ ------------ -------- ------------ ------------ --------
Revenue (note 2) 782.8 - 782.8 905.1 - 905.1 1,932.1 - 1,932.1
Net operating costs
(note 3) (327.3) - (327.3) (448.9) - (448.9) (938.3) - (938.3)
Change in fair value
of investment
properties - 986.2 986.2 - 72.3 72.3 - 999.9 999.9
Asset impairment
reversals - - - - 13.9 13.9 - 13.9 13.9
-------- ------------ -------- ------------ ------------ -------- ------------ ------------ --------
Operating profit
(note 4) 455.5 986.2 1,441.7 456.2 86.2 542.4 993.8 1,013.8 2,007.6
Financing charges (54.4) - (54.4) (58.0) - (58.0) (114.8) - (114.8)
Financing income 22.1 - 22.1 19.4 - 19.4 40.4 - 40.4
-------- ------------ -------- ------------ ------------ -------- ------------ ------------ --------
Net financing
charges (32.3) - (32.3) (38.6) - (38.6) (74.4) - (74.4)
Share of results of
associates
and joint ventures
(note 5) 59.6 (120.9) (61.3) 85.9 12.9 98.8 140.5 69.2 209.7
-------- ------------ -------- ------------ ------------ -------- ------------ ------------ --------
Profit before tax 482.8 865.3 1,348.1 503.5 99.1 602.6 1,059.9 1,083.0 2,142.9
Tax (note 6) (89.0) 1.0 (88.0) (81.7) (4.4) (86.1) (150.8) 13.6 (137.2)
-------- ------------ -------- ------------ ------------ -------- ------------ ------------ --------
Profit after tax 393.8 866.3 1,260.1 421.8 94.7 516.5 909.1 1,096.6 2,005.7
-------- ------------ -------- ------------ ------------ -------- ------------ ------------ --------
Attributable to:
Shareholders of the
Company 392.8 870.6 1,263.4 419.2 93.5 512.7 904.5 1,107.2 2,011.7
Non-controlling
interests 1.0 (4.3) (3.3) 2.6 1.2 3.8 4.6 (10.6) (6.0)
-------- ------------ -------- ------------ ------------ -------- ------------ ------------ --------
393.8 866.3 1,260.1 421.8 94.7 516.5 909.1 1,096.6 2,005.7
-------- ------------ -------- ------------ ------------ -------- ------------ ------------ --------
USc USc USc USc USc USc
--------------------- -------- ------------ -------- ------------ ------------ -------- ------------ ------------ --------
Earnings per share
(note 7) 16.70 53.70 17.82 21.79 38.44 85.50
--------------------- -------- ------------ -------- ------------ ------------ -------- ------------ ------------ --------
Hongkong Land Holdings Limited
Consolidated Statement of Comprehensive Income
Year
(Unaudited) ended
Six months ended 31st
30th June December
2016 2015 2015
US$m US$m US$m
Profit for the period 1,260.1 516.5 2,005.7
Other comprehensive income/(expense)
Items that will not be reclassified
to
profit or loss:
Remeasurements of defined benefit
plans - - (3.4)
Tax on items that will not be
reclassified - - 0.5
- - (2.9)
Items that may be reclassified
subsequently to profit or loss:
------- ------- --------
Net exchange translation differences 26.4 (25.3) (193.4)
Revaluation of other investments (7.9) 12.5 8.3
Cash flow hedges
* net gain/(loss) arising during the period 36.0 (17.6) (32.2)
- transfer to profit and loss (1.3) (1.4) (2.5)
34.7 (19.0) (34.7)
Tax relating to items that may
be
reclassified (5.7) 3.2 5.8
Share of other comprehensive
income/(expense) of associates
and joint ventures 52.0 (53.6) (214.4)
99.5 (82.2) (428.4)
Other comprehensive income/(expense)
for the period, net of tax 99.5 (82.2) (431.3)
------- ------- --------
Total comprehensive income for
the
period 1,359.6 434.3 1,574.4
------- ------- --------
Attributable to:
Shareholders of the Company 1,364.0 430.6 1,583.2
Non-controlling interests (4.4) 3.7 (8.8)
------- ------- --------
1,359.6 434.3 1,574.4
------------------------------------------------ ------- ------- --------
Hongkong Land Holdings Limited
Consolidated Balance Sheet
(unaudited) At 31st
At 30th June December
2016 2015 2015
US$m US$m US$m
Net operating assets
Tangible fixed assets 36.6 24.8 34.0
Investment properties (note 10) 26,079.4 23,871.4 24,957.3
Associates and joint ventures 4,583.6 4,624.7 4,617.6
Other investments 53.3 65.4 61.3
Non-current debtors 80.8 39.1 41.2
Deferred tax assets 9.4 12.0 13.1
Pension assets 0.1 4.2 0.5
Non-current assets 30,843.2 28,641.6 29,725.0
Properties for sale 2,745.6 3,017.3 2,713.9
Current debtors 377.1 340.8 355.7
Current tax assets 18.5 14.8 8.3
Bank balances 1,560.3 1,707.1 1,569.2
--------- --------- ---------
Current assets 4,701.5 5,080.0 4,647.1
--------- --------- ---------
Current creditors (1,640.2) (1,393.9) (1,483.8)
Current borrowings (note 11) (18.8) (279.6) (168.9)
Current tax liabilities (119.9) (132.7) (69.0)
--------- --------- ---------
Current liabilities (1,778.9) (1,806.2) (1,721.7)
--------- --------- ---------
Net current assets 2,922.6 3,273.8 2,925.4
Long-term borrowings (note 11) (3,863.0) (4,002.1) (3,740.8)
Deferred tax liabilities (101.9) (106.0) (102.0)
Pension liabilities (0.2) - (0.2)
Non-current creditors (26.8) (82.4) (87.0)
--------- --------- ---------
29,773.9 27,724.9 28,720.4
--------- --------- ---------
Total equity
Share capital 235.3 235.3 235.3
Revenue and other reserves 29,507.9 27,437.6 28,449.7
--------- --------- ---------
Shareholders' funds 29,743.2 27,672.9 28,685.0
Non-controlling interests 30.7 52.0 35.4
--------- --------- ---------
29,773.9 27,724.9 28,720.4
--------- --------- ---------
Hongkong Land Holdings Limited
Consolidated Statement of Changes in Equity
Attributable to Attributable
shareholders to non-
Share Share Revenue Hedging Exchange of the controlling Total
capital premium reserves reserves reserves Company interests equity
US$m US$m US$m US$m US$m US$m US$m US$m
(Unaudited)
Six months ended
30th June 2016
At 1st January
2016 235.3 370.0 28,222.7 (9.1) (133.9) 28,685.0 35.4 28,720.4
Total
comprehensive
income - - 1,255.5 24.6 83.9 1,364.0 (4.4) 1,359.6
Dividends paid by
the Company
(note
9) - - (305.8) - - (305.8) - (305.8)
Dividends paid to
non-controlling
shareholders - - - - - - (0.3) (0.3)
------- ------- -------- -------- -------- ------------ ------------ --------
At 30th June 2016 235.3 370.0 29,172.4 15.5 (50.0) 29,743.2 30.7 29,773.9
------- ------- -------- -------- -------- ------------ ------------ --------
Six months ended
30th June 2015
At 1st January
2015 235.3 370.0 26,651.9 17.5 273.4 27,548.1 50.3 27,598.4
Total
comprehensive
income - - 525.2 (15.3) (79.3) 430.6 3.7 434.3
Dividends paid by
the Company
(note
9) - - (305.8) - - (305.8) - (305.8)
Dividends paid to
non-controlling
shareholders - - - - - - (2.0) (2.0)
------- ------- -------- -------- -------- ------------ ------------ --------
At 30th June 2015 235.3 370.0 26,871.3 2.2 194.1 27,672.9 52.0 27,724.9
------- ------- -------- -------- -------- ------------ ------------ --------
Total comprehensive income for the six months ended 30th June 2016 included in revenue reserves mainly
comprises profit attributable to shareholders of the Company of US$1,263.4 million (2015: US$512.7
million)
and a fair value loss on other investments of US$7.9 million (2015: a gain of US$12.5 million). The
cumulative
fair value gain on other investments amounted to US$15.6 million (2015: US$27.7 million).
Hongkong Land Holdings Limited
Consolidated Statement of Changes in Equity
Attributable to Attributable
shareholders to non-
Share Share Revenue Hedging Exchange of the controlling Total
capital premium reserves reserves reserves Company interests equity
US$m US$m US$m US$m US$m US$m US$m US$m
Year ended 31st
December 2015
At 1st January
2015 235.3 370.0 26,651.9 17.5 273.4 27,548.1 50.3 27,598.4
Total
comprehensive
income - - 2,017.1 (26.6) (407.3) 1,583.2 (8.8) 1,574.4
Dividends paid by
the Company - - (447.0) - - (447.0) - (447.0)
Dividends paid to
non-controlling
shareholders - - - - - - (6.1) (6.1)
Unclaimed
dividends
forfeited - - 0.7 - - 0.7 - 0.7
------- ------- -------- -------- -------- ------------ ------------ --------
At 31st December
2015 235.3 370.0 28,222.7 (9.1) (133.9) 28,685.0 35.4 28,720.4
------- ------- -------- -------- -------- ------------ ------------ --------
The comprehensive income for the year ended 31st December 2015 included in revenue reserves mainly
comprises
profit attributable to shareholders of the Company of US$2,011.7 million and a fair value gain on other
investments of US$8.3 million. The cumulative fair value gain on other investments amounted to US$23.5
million.
Hongkong Land Holdings Limited
Consolidated Cash Flow Statement
(Unaudited)
Six months ended Year ended
30th June 31st December
2016 2015 2015
US$m US$m US$m
Operating activities
Operating profit 1,441.7 542.4 2,007.6
Depreciation 1.5 1.4 2.9
Reversal of writedowns on properties
for sale (1.5) (16.0) (21.4)
Gain on reclassification of a trading
property
to investment property - - (63.2)
Change in fair value of investment
properties (986.2) (72.3) (999.9)
Asset impairment reversals - (13.9) (13.9)
Decrease/(increase) in properties
for sale 17.7 (113.6) 45.2
Increase in debtors (20.0) (56.1) (13.3)
Increase/(decrease) in creditors 70.5 (9.0) 88.0
Interest received 21.2 21.2 41.2
Interest and other financing charges
paid (57.7) (62.3) (118.9)
Tax paid (49.7) (66.8) (174.8)
Dividends from associates and joint
ventures 29.9 45.6 116.7
Cash flows from operating activities 467.4 200.6 896.2
Investing activities
Major renovations expenditure (47.0) (22.2) (57.8)
Developments capital expenditure (62.2) (56.5) (152.3)
Investments in and loans to associates
and
joint ventures (4.7) 267.3 (255.8)
Advances and repayments from associates
and joint ventures 33.3 - 390.9
Payment of deposit for a joint
venture - - (70.9)
Cash flows from investing activities (80.6) 188.6 (145.9)
Financing activities
Drawdown of borrowings 102.8 137.2 229.1
Repayment of borrowings (169.6) (149.7) (575.7)
Dividends paid by the Company (302.9) (304.1) (444.9)
Dividends paid to non-controlling
shareholders (2.1) (2.0) (4.4)
Cash flows from financing activities (371.8) (318.6) (795.9)
Effect of exchange rate changes (22.4) (23.0) (47.1)
--------- -------- --------------
Net (decrease)/increase in cash
and cash
equivalents (7.4) 47.6 (92.7)
Cash and cash equivalents at beginning
of
period 1,565.9 1,658.6 1,658.6
Cash and cash equivalents at end
of period 1,558.5 1,706.2 1,565.9
--------- -------- --------------
Hongkong Land Holdings Limited
Notes to Condensed Financial Statements
1. ACCOUNTING POLICIES AND BASIS OF PREPARATION
The condensed financial statements have been prepared in accordance with IAS 34, 'Interim Financial Reporting'. The condensed financial statements have been prepared on a going concern basis. The condensed financial statements have not been audited or reviewed by the Group's auditors pursuant to the UK Auditing Practices Board guidance on the review of interim financial information.
The following amendments which are effective in the current accounting period and relevant to the Group's operations are adopted in 2016:
Accounting for Acquisitions of Interests
in Joint
Amendments to IFRS 11 Operations
Amendments to IAS 1 Disclosure Initiative: Presentation
of Financial
Statements
Amendments to IAS 16 and Clarification of Acceptable Methods
IAS 38 of Depreciation
and Amortisation
Annual Improvements to
IFRSs 2012 - 2014 Cycle
There have been no changes to the accounting policies described in the 2015 annual financial statements upon the adoption of the above amendments to existing standards. The adoption of these amendments do not have any significant impact on the results or financial position of the Group.
The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
2. REVENUE
Six months ended 30th June
2016 2015
US$m US$m
Rental income 427.7 422.0
Service income 64.9 63.2
Sales of properties 290.2 419.9
----- -----
782.8 905.1
----- -----
Service income includes service and management charges and hospitality service income.
3. NET OPERATING COSTS
Six months ended 30th June
2016 2015
US$m US$m
Cost of sales (280.6) (400.6)
Other income 5.0 4.8
Administrative expenses (51.7) (53.1)
------- -------
(327.3) (448.9)
------- -------
4. OPERATING PROFIT
Six months ended 30th June
2016 2015
US$m US$m
By business
Commercial Property 410.4 405.0
Residential Property 74.9 82.3
Corporate (29.8) (31.1)
------- ------
Underlying business performance 455.5 456.2
Change in fair value of investment properties
------- ------
- Commercial Property 986.2 66.1
- Residential Property - 6.2
------- ------
986.2 72.3
Asset impairment reversals - 13.9
986.2 86.2
1,441.7 542.4
------- ------
5. SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
Six months ended 30th June
2016 2015
US$m US$m
By business
Commercial Property
- operating profit 72.0 71.9
- net financing charges (21.0) (18.0)
- tax (7.9) (8.9)
- net profit 43.1 45.0
Residential Property
- operating profit 29.9 63.1
- net financing charges 1.6 2.4
- tax (11.5) (21.2)
- non-controlling interests (3.5) (3.4)
- net profit 16.5 40.9
------- ------
Underlying business performance 59.6 85.9
Change in fair value of investment properties
(net of deferred tax)
- Commercial Property (121.1) 12.2
- Residential Property 0.2 0.7
(120.9) 12.9
(61.3) 98.8
------- ------
6. TAX
Six months ended 30th June
2016 2015
US$m US$m
Tax charged to profit and loss is analysed
as follows:
Current tax (90.3) (95.9)
Deferred tax
- changes in fair value of investment
properties 1.0 (4.4)
- other temporary differences 1.3 14.2
------ ------
(88.0) (86.1)
------ ------
Tax relating to components of other comprehensive
income is analysed as follows:
Cash flow hedges (5.7) 3.2
------ ------
Tax on profits has been calculated at the rates of taxation prevailing in the territories in which the Group operates.
Share of tax charge of associates and joint ventures of US$8.8 million (2015: US$32.0 million) is included in share of results of associates and joint ventures.
7. EARNINGS PER SHARE
Earnings per share are calculated on profit attributable to shareholders of US$1,263.4 million (2015: US$512.7 million) and on the weighted average number of 2,352.8 million (2015: 2,352.8 million) shares in issue during the period.
Earnings per share are additionally calculated based on underlying profit attributable to shareholders. A reconciliation of earnings is set out below:
Six months ended 30th June
2016 2015
Earnings Earnings
per share per share
US$m USc US$m USc
Underlying profit attributable
to shareholders 392.8 16.70 419.2 17.82
Non-trading items (note 8) 870.6 93.5
Profit attributable to shareholders 1,263.4 53.70 512.7 21.79
------- -----
8. NON-TRADING ITEMS
Non-trading items are separately identified to provide greater understanding of the Group's underlying business performance. Items classified as non-trading items include fair value gains or losses on revaluation of investment properties; gains and losses arising from the sale of businesses, investments and investment properties; impairment of non-depreciable intangible assets and other investments; provisions for the closure of businesses; acquisition-related costs in business combinations; and other credits and charges of a non-recurring nature that require inclusion in order to provide additional insight into underlying business performance.
An analysis of non-trading items is set out below:
Six months ended 30th June
2016 2015
US$m US$m
Change in fair value of investment properties 986.2 72.3
Deferred tax on change in fair value of investment
properties 1.0 (4.4)
Share of change in fair value of investment
properties of
associates and joint ventures (net of deferred
tax) (120.9) 12.9
Asset impairment reversals - 13.9
Non-controlling interests 4.3 (1.2)
870.6 93.5
------- -----
9. DIVIDS
Six months ended 30th June
2016 2015
US$m US$m
Final dividend in respect of 2015 of USc13.00
(2014: USc13.00) per share 305.8 305.8
----- -----
An interim dividend in respect of 2016 of USc6.00 (2015: USc6.00) per share amounting to a total of US$141.2 million (2015: US$141.2 million) is declared by the Board and will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2016.
10. INVESTMENT PROPERTIES
Year ended
31st
Six months ended 30th June December
2016 2015 2015
US$m US$m US$m
Net book value at beginning of period 24,957.3 23,697.3 23,697.3
Exchange differences (12.4) 0.2 (58.7)
Additions 148.3 101.6 318.8
Increase in fair value 986.2 72.3 999.9
----------
Net book value at end of period 26,079.4 23,871.4 24,957.3
-------- -------- ----------
11. BORROWINGS
At 30th June At 31st December
2016 2015 2015
US$m US$m US$m
Current
Bank overdrafts 1.8 0.9 3.3
Current portion of long-term
borrowings
* bank loans 17.0 0.3 165.6
* 3.65% Singapore dollar notes due 2015 - 278.4 -
18.8 279.6 168.9
Long-term
Bank loans 919.8 1,095.9 836.7
Medium term notes
- due 2017 37.8 38.2 35.8
- due 2019 103.0 103.1 103.1
- due 2020 309.0 309.1 303.7
- due 2021 71.0 69.4 69.8
- due 2022 623.7 600.9 605.0
- due 2023 179.3 179.3 179.4
- due 2024 420.9 406.3 407.7
- due 2025 652.5 653.8 653.2
- due 2026 38.6 38.6 38.6
- due 2027 186.0 186.0 186.2
- due 2028 79.7 79.7 79.7
- due 2029 50.8 50.8 50.9
- due 2030 103.1 103.2 103.2
- due 2031 25.4 25.4 25.4
- due 2032 30.3 30.3 30.3
- due 2040 32.1 32.1 32.1
2,943.2 2,906.2 2,904.1
3,863.0 4,002.1 3,740.8
------- ------- ----------------
3,881.8 4,281.7 3,909.7
------- ------- ----------------
12. FINANCIAL INSTRUMENTS
Financial instruments by category
The fair values of financial assets and financial liabilities, together with carrying amounts at 30th June 2016 and 31st December 2015 are as follows:
Other
financial
Other instruments
financial at fair
instruments value
Derivatives at through Total
Loans and used for Available- amortised profit carrying Fair
receivables hedging for-sale cost and loss amount value
US$m US$m US$m US$m US$m US$m US$m
30th June 2016
Assets
Other investments - - 53.3 - - 53.3 53.3
Debtors 158.5 65.5 - - 11.6 235.6 235.6
Bank balances 1,560.3 - - - - 1,560.3 1,560.3
----------- ----------- ---------- ----------- ----------- ---------- ---------
1,718.8 65.5 53.3 - 11.6 1,849.2 1,849.2
----------- -----------
Liabilities
Borrowings - - - (3,881.8) - (3,881.8) (4,082.2)
Creditors
excluding
non-financial
liabilities - (1.4) - (572.6) - (574.0) (574.0)
----------- ---------- ----------- ---------- ---------
- (1.4) - (4,454.4) - (4,455.8) (4,656.2)
----------- ----------- ---------- ----------- --------- ---------
31st December
2015
Assets
Other investments - - 61.3 - - 61.3 61.3
Debtors 151.9 26.7 - - 11.4 190.0 190.0
Bank balances 1,569.2 - - - - 1,569.2 1,569.2
----------- ----------- ---------- ----------- ----------- --------- ---------
1,721.1 26.7 61.3 - 11.4 1,820.5 1,820.5
----------- -----------
Liabilities
Borrowings - - - (3,909.7) - (3,909.7) (4,019.9)
Creditors
excluding
non-financial
liabilities - (24.8) - (546.3) - (571.1) (571.1)
----------- ----------- ---------- ----------- ----------- --------- ---------
- (24.8) - (4,456.0) - (4,480.8) (4,591.0)
----------- ----------- ---------- ----------- ----------- --------- ---------
Fair value estimation
(i) Financial instruments that are measured at fair value
For financial instruments that are measured at fair value in the balance sheet, the corresponding fair value measurements are disclosed by level of the following fair value measurement hierarchy:
(a) Quoted prices (unadjusted) in active markets for identical assets or liabilities ('quoted prices in active markets')
The fair value of listed securities, which are classified as available-for-sale, is based on quoted prices in active markets at the balance sheet date. The quoted market price used for listed investments held by the Group is the current bid price.
(b) Inputs other than quoted prices in active markets that are observable for the asset or liability, either directly or indirectly ('observable current market transactions')
The fair values of derivative financial instruments are determined using rates quoted by the Group's bankers at the balance sheet date. The rates for interest rate swaps and forward foreign exchange contracts are calculated by reference to market interest rates and foreign exchange rates.
There were no changes in valuation techniques during the six months ended 30th June 2016 and the year ended 31st December 2015.
The table below analyses financial instruments carried at fair value at 30th June 2016 and 31st December 2015, by the levels in the fair value measurement hierarchy:
Quoted prices Observable
in active current
markets market transactions Total
US$m US$m US$m
30th June 2016
Assets
Available-for-sale financial assets
- listed securities 53.3 - 53.3
Derivative designated at fair value
- through other comprehensive income - 19.6 19.6
- through profit and loss - 45.9 45.9
------------- -------------------- ------
53.3 65.5 118.8
------------- -------------------- ------
Liabilities
Derivative designated at fair value
- through other comprehensive income - (1.4) (1.4)
------------- -------------------- ------
31st December 2015
Assets
Available-for-sale financial assets
- listed securities 61.3 - 61.3
Derivative designated at fair value
- through other comprehensive income - 4.4 4.4
- through profit and loss - 22.3 22.3
------------- -------------------- ------
61.3 26.7 88.0
------------- -------------------- ------
Liabilities
Derivative designated at fair value
- through other comprehensive income - (18.0) (18.0)
- through profit and loss - (6.8) (6.8)
------------- -------------------- ------
- (24.8) (24.8)
------------- -------------------- ------
There were no transfers among the two categories during the six months ended 30th June 2016 and the year ended 31st December 2015.
(ii) Financial instruments that are not measured at fair value
The fair values of current debtors, bank balances, current creditors and current borrowings are assumed to approximate their carrying amounts due to the short-term maturities of these assets and liabilities.
The fair values of long-term borrowings are based on market prices or are estimated using the expected future payments discounted at market interest rates.
13. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
Total capital commitments at 30th June 2016 and 31st December 2015 amounted to US$473.2 million and US$502.9 million, respectively.
Various Group companies are involved in litigation arising in the ordinary course of their respective businesses. Having reviewed outstanding claims and taking into account legal advice received, the Directors are of the opinion that adequate provisions have been made in the condensed financial statements.
14. RELATED PARTY TRANSACTIONS
The parent company of the Group is Jardine Strategic Holdings Limited and the ultimate holding company is Jardine Matheson Holdings Limited ('JMH'). Both companies are incorporated in Bermuda.
In the normal course of business, the Group has entered into a variety of transactions with the subsidiaries, associates and joint ventures of JMH ('Jardine Matheson group members'). The more significant of these transactions are described below:
Management fee
The management fee payable by the Group, under an agreement entered into in 1995, to Jardine Matheson Limited ('JML') in 2016 was US$2.0 million (2015: US$2.0 million), being 0.5% per annum of the Group's underlying profit in consideration for management consultancy services provided by JML, a wholly-owned subsidiary of JMH.
Property and other services
The Group rented properties to Jardine Matheson group members. Gross rents on such properties in 2016 amounted to US$10.0 million (2015: US$9.5 million).
The Group provided consultancy services to Jardine Matheson group members in 2016 amounting to US$0.2 million (2015: US$0.2 million).
Jardine Matheson group members provided property construction, maintenance and other services to the Group in 2016 in aggregate amounting to US$21.6 million (2015: US$22.4 million).
Hotel management services
Jardine Matheson group members provided hotel management services to the Group in 2016 amounted to US$1.1 million (2015: US$1.2 million).
Outstanding balances with associates and joint ventures
Amounts of outstanding balances with associates and joint ventures are included in debtors and creditors as appropriate. The amounts are not material.
Hongkong Land Holdings Limited
Principal Risks and Uncertainties
The Board has overall responsibility for risk management and internal control. The following have been identified previously as the areas of principal risk and uncertainty facing the Company, and they remain relevant in the second half of the year:
-- Economic Risk -- Commercial Risk and Financial Risk -- Regulatory and Political Risk -- Terrorism, Pandemic and Natural Disasters
For greater detail, please refer to page 74 of the Company's Annual Report for 2015, a copy of which is available on the Company's website www.hkland.com.
Responsibility Statement
The Directors of the Company confirm to the best of their knowledge that:
(a) the condensed financial statements have been prepared in accordance with IAS 34; and
(b) the interim management report includes a fair review of all information required to be disclosed by the Disclosure Rules and Transparency Rules 4.2.7 and 4.2.8 issued by the Financial Conduct Authority in the United Kingdom.
For and on behalf of the Board
Y.K. Pang
Simon Dixon
Directors
The interim dividend of USc6.00 per share will be payable
on 12th October 2016 to shareholders on the register of members
at the close of business on 19th August 2016. The shares will
be quoted ex-dividend on the Singapore Exchange and the London
Stock Exchange on 17th and 18th August 2016, respectively.
The share registers will be closed from 22nd to 26th August
2016, inclusive.
Shareholders will receive their cash dividends in United States
dollars, unless they are registered on the Jersey branch register
where they will have the option to elect for sterling. These
shareholders may make new currency elections for the 2016
interim dividend by notifying the United Kingdom transfer
agent in writing by 23rd September 2016. The sterling equivalent
of dividends declared in United States dollars will be calculated
by reference to a rate prevailing on 28th September 2016.
Shareholders holding their shares through CREST in the United
Kingdom will receive their cash dividends in sterling only
as calculated above. Shareholders holding their shares through
The Central Depository (Pte) Limited ('CDP') in Singapore
will receive their cash dividends in United States dollars
unless they elect, through CDP, to receive Singapore dollars.
Shareholders on the Singapore branch register who wish to
deposit their shares into the CDP system by the dividend record
date, being 19th August 2016, must submit the relevant documents
to M & C Services Private Limited, the Singapore branch registrar,
no later than 5.00 p.m. (local time) on 18th August 2016.
Hongkong Land Group
Hongkong Land is a listed leading property investment, management and development group. Founded in 1889, Hongkong Land's business is built on excellence, integrity and partnership.
The Group owns and manages almost 800,000 sq. m. of prime office and luxury retail property in key Asian cities, principally in Hong Kong and Singapore. Hongkong Land's properties attract the world's foremost companies and luxury brands.
Its Hong Kong Central portfolio represents some 450,000 sq. m. of prime property. It has a further 165,000 sq. m. of prestigious office space in Singapore mainly held through joint ventures, and a 50% interest in a leading office complex in Central Jakarta. The Group also has a number of high quality residential and mixed-use projects under development in cities across Greater China and Southeast Asia, including a luxury retail centre at Wangfujing in Beijing. In Singapore, its subsidiary, MCL Land, is a well-established residential developer.
Hongkong Land Holdings Limited is incorporated in Bermuda and has a standard listing on the London Stock Exchange as its primary listing, with secondary listings in Bermuda and Singapore. The Group's assets and investments are managed from Hong Kong by Hongkong Land Limited. Hongkong Land is a member of the Jardine Matheson Group.
- end -
For further information, please contact:
Hongkong Land Limited Y.K. Pang (852) 2842 8428 Simon Dixon (852) 2842 8101 Brunswick Group Limited Annabel Arthur (852) 3512 5075
As permitted by the Disclosure Rules and Transparency Rules of the Financial Conduct Authority in the United Kingdom, the Company will not be posting a printed version of the Half-Yearly Results announcement to shareholders. The Half-Yearly Results announcement will remain available on the Company's website, www.hkland.com, together with other Group announcements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUGWMUPQGMM
(END) Dow Jones Newswires
July 28, 2016 05:07 ET (09:07 GMT)
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