Hong Kong based property developer Sun Hung Kai reported a 4.2% YoY dip in its profits to HK$25.6bn ($3.3bn) for the year ended June 2022. The reported profit included a decrease in the fair value of investment properties, net of deferred taxes and non-controlling interests of HK$2.9bn ($370mn) vs. a decrease of HK$3.1bn ($390mn) the previous year. Revenues declined 9% YoY to HK$77.7bn ($9.9bn) as its business was affected due to the fluctuating pandemic situation in Hong Kong. Property sales fell 23% YoY to HK$35.4bn ($4.5bn) while rental segment income rose 0.1% to HK$24.8bn ($3.2bn). As of June, the company had bank deposits and cash of HK$20.3bn ($2.6bn) and its total borrowings stood at HK$124bn ($15.8bn) vs. HK$116bn ($14.8bn) last year. The company said, “The near-term operating environment for the property investment business is likely to improve gradually, both in Hong Kong and on the mainland, although lingering effects and disruptions from the pandemic may continue to cloud leasing markets. Over the next 18 months, the group’s recurrent income will be underpinned by the new additions.” Sun Hung Kai also announced a dividend of HK$3.7/share ($0.47/share) which is to be paid on 17 November 2022, including an interim dividend of HK$1.25/share ($0.16/share). Its full year dividend stood at HK$4.95/share ($0.63/share), unchanged as compared to the previous year.
Sun Hung Kai’s USD 2.875% 2030s traded lower by 0.23 points at 88.93 to yield 4.67%.