Hongkong Land

Hongkong Land: FY12 results released; earnings beat estimates by 10.3%; adjusted earnings increased 11% to US$777m y/y. Rental reversions in the Group’s prime Hong Kong Central office portfolio remained positive overall as the market was supported by a lack of new supply. The contribution from the Group’s Singapore commercial portfolio rose due to improved rents and the completion of the final office tower at Marina Bay Financial Centre. The contribution from residential development activities was higher than originally anticipated with two Singapore projects completing and further unit sales in Hong Kong. Going forward, office leasing demand remains subdued, the Group’s Hong Kong portfolio will continue to benefit in 2013 from limited new supply as well as strong demand for luxury retail space. Three residential projects are due for completion in Singapore, including the Marina Bay Suites development. Group proposed a final dividend of US$0.11/ share (increased 10% from FY11); indicative yield of 1.6%