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Hysan’s H1 net profit falls 61% in worse-than-expected result

Hysan Hong Kong - Retail in Asia

Hysan Development, Hong Kong’s seventh largest developer by market capitalization, reported a worse-than-expected profit decline in the first six months of 2016, as rental income in the city’s shopping malls were slashed to sustain retailers amid dwindling tourist numbers.

Net income fell 60.7 per cent to HK$899 million, or HK$0.86 per share, the company said in an exchange statement. Analysts polled by Reuters were expecting net income to halve to HK$1.15 billion during the period.

Excluding valuation loss from the company’s investment properties, Hysan’s underlying profit rose 1.3 per cent to HK$1.18 billion.

The revaluation loss on investment properties reflected “a challenging retail rental outlook,” Hysan’s chairman Irene Yun Lien Lee said in a statement.

The developer said the total turnover from its retail portfolio, including its flagship Hysan Place, Lee Gardens and Lee Theatre in the bustling Causeway Bay shopping district, went up 3.8 per cent to HK$986 million from a year ago, with the retail segment making up 56 per cent of overall turnover.

(Source: SCMP)