Final Results
Hongkong Land Hldgs Ld
28 February 2005
To: Business Editor 28th February 2005
For immediate release
The following announcement was today issued to the London Stock Exchange.
HONGKONG LAND HOLDINGS LIMITED
2004 PRELIMINARY ANNOUNCEMENT OF RESULTS
Highlights
• Recovery of Hong Kong market continues
• Net assets per share up 43% as property values rise
• Central portfolio vacancy 6% at year end
• Significant contribution from residential sales
• Dividend increased from USc6.00 to USc7.00 per share
'Hongkong Land is continuing to invest in its core commercial assets against a
background of an improving cycle in the Hong Kong office and retail property
markets. Provided the momentum of rising rents and falling vacancy is
maintained, rental reversions should begin to enhance earnings within the next
12 months. The Group has also been steadily growing its residential business,
although future earnings from residential sales will fluctuate as the scale of
completions varies from year to year.'
Simon Keswick, Chairman
28th February 2005
Results
Year ended 31st December Change
Restated %
2004 2003
US$m US$m
______________________________________________________________________________
Underlying profit attributable to shareholders 197 174 +13
Profit/(loss) attributable to shareholders 1,688 (568) n/m
Shareholders' funds 5,205 3,639 +43
Adjusted shareholders' funds* 6,072 4,214 +44
______________________________________________________________________________
USc USc %
______________________________________________________________________________
Underlying earnings per share 8.86 7.82 +13
Earnings/(loss) per share 75.84 (25.53) n/m
Dividends per share 7.00 6.00 +17
______________________________________________________________________________
US$ US$ %
______________________________________________________________________________
Net asset value per share 2.34 1.64 +43
Adjusted net asset value per share* 2.73 1.89 +44
______________________________________________________________________________
* In preparing the Group's financial statements under International Financial
Reporting Standards ('IFRS'), the fair value model for investment properties has
been adopted. In accordance with this model, the Group's investment properties
have been included at their open market value as determined by independent
valuers. As there is no capital gains tax in territories where the Group has
significant leasehold investment properties, no tax would be payable if those
properties were to be sold at the amounts included in the financial statements.
In relation to leasehold investment properties, however, IFRS require deferred
tax on any revaluation amount to be calculated using income tax rates. This is
in contrast to the treatment for the revaluation element of freehold properties
where IFRS require capital gains tax rates to be used. As Management considers
that the Group's long leasehold properties have very similar characteristics to
freehold property, the adjusted shareholders' funds and adjusted net asset value
per share information is presented on the basis that would be applicable if the
leasehold properties were freeholds. The adjustments made add back the deferred
tax provided in the financial statements that would not have been provided if
the properties were freeholds, which in any event would not be payable on a sale
of the properties.
The final dividend of USc5.00 per share will be payable on 11th May 2005,
subject to approval at the Annual General Meeting to be held on 4th May 2005, to
shareholders on the register of members at the close of business on 18th March
2005. The ex-dividend date will be on 16th March 2005, and the share registers
will be closed from 21st to 24th March 2005, inclusive.
HONGKONG LAND HOLDINGS LIMITED
PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED 31ST DECEMBER 2004
OVERVIEW
Office and retail markets in Hong Kong saw steady growth during 2004 in both
rents and capital values. In Central, office occupancy improved further as
business activity recovered.
PERFORMANCE
Net rental income in 2004 fell by 6% from 2003. While the retail component rose
by 9%, this was insufficient to offset the effect of negative reversions
continuing to work through the office portfolio. Lower income from the
commercial business was, however, more than offset by profits arising from
residential sales. Financing charges were sharply lower than in the prior year
as interest rates in Hong Kong held at very low levels throughout 2004.
Underlying earnings accordingly rose by 13% from US$174 million in 2003 to
US$197 million. Underlying earnings per share rose by a similar percentage to
USc8.86.
The net profit for the year was significantly higher at US$1,688 million. With
the recovery of rents and falling yields on capital transactions, the external
valuation of the Group's investment property portfolio increased by 32% in the
year to 31st December 2004. Under International Financial Reporting Standards,
the surplus before the provision for tax of US$1,701 million has been credited
to profit.
The Directors are recommending an increase in the final dividend for 2004 to
USc5.00 per share. Together with the interim dividend of USc2.00, the total
dividend for the year is proposed to be USc7.00.
GROUP REVIEW
The new office stock completed in Hong Kong's Central District in recent years
had achieved significant levels of commitment from prospective tenants by the
end of 2003. As a consequence, in the absence of any material overhang of unlet
space, office rents rose strongly in 2004. The retail market, which had
recovered earlier than the office sector, continued its strong performance, with
local consumer spending adding to the beneficial effect of increased tourist
arrivals.
Against this positive background, the Group's investment programmes are building
additional retail and office space and a luxury hotel in the Landmark complex in
a phased completion over the course of 2005 and 2006.
The office market in Singapore also began to recover, albeit more slowly than
Hong Kong, and the Group's joint-venture development at One Raffles Quay
pre-committed its first tenants.
The Group's residential business completed all sales, other than the penthouses,
of Central Park in Beijing, while in Hong Kong most of the units at Stanley
Court and Ivy on Belcher's have been sold and handed over to buyers.
OUTLOOK
In conclusion, the Chairman, Simon Keswick said, 'Hongkong Land is continuing to
invest in its core commercial assets against a background of an improving cycle
in the Hong Kong office and retail property markets. Provided the momentum of
rising rents and falling vacancy is maintained, rental reversions should begin
to enhance earnings within the next 12 months. The Group has also been steadily
growing its residential business, although future earnings from residential
sales will fluctuate as the scale of completions varies from year to year.'
CHIEF EXECUTIVE'S REVIEW
STRATEGIC FOCUS
The determination of the Group to create maximum value in its core portfolio in
Central continues to position it well in the Hong Kong commercial market. We
have taken advantage of the attraction of Central as a location to build market
share during the economic downturn. In the retail sector, our investment in our
portfolio over recent years has enabled The Landmark, Chater House, Alexandra
House and Prince's Building to benefit from the growth in retail spending in
Hong Kong and to maintain the Group's premier position at the high-end of the
retail market.
In parallel with investing in our core commercial assets, we have been steadily
growing our residential business. Sales in Hong Kong and Mainland China have
contributed profits in 2004, while we work on developing a pipeline of further
projects both in Hong Kong and on the Mainland.
In infrastructure, we have made further progress in value realisation, leaving
the Group to focus on property.
COMMERCIAL PROPERTY
Central Portfolio
Following nearly three years of very little demand for office space on Hong Kong
Island, 2004 saw renewed net absorption. This, together with the preference of
many occupiers for a Central location, led to a general reduction in vacancy
levels. The Group's portfolio began the year with vacancy at 7% and had reduced
that to 6.2% by the end of June. Despite the release of 3% of the portfolio from
one tenant at the beginning of July, by the end of 2004 our vacancy levels had
been further reduced to just under 6%, as we signed 62 new tenants to the
portfolio during the year. Our vacancy levels remain below the figure, currently
7%, for Grade A space in the Central District as a whole.
Retail spending continued to improve in Hong Kong, and the Group's portfolio
benefited from strong demand for space, reinforced by the Group's sponsorship of
the IHT Luxury Retail Global Conference in Hong Kong in early December. Our
average retail rents continue to grow, supported by the extensive development
programme now under way in The Landmark complex. The early phases are complete,
with a range of major new stores already open. A small luxury hotel in Edinburgh
Tower, to be managed by Mandarin Oriental, Harvey Nichols' first flagship store
in Asia and the redeveloped retail space in Gloucester Tower will all be
completed in 2005. The office and retail phases of the scheme in the new tower
bordering Queen's Road and Ice House Street will be finished in early 2007.
Commercial Properties Outside Hong Kong
The Singapore office market's recovery began in 2004, rather later and more
slowly than in Hong Kong. One Raffles Link remains fully let, while the
improvement in market sentiment enabled our joint-venture development at One
Raffles Quay to begin pre-letting over a year before its completion in early
2006. By the year end, two major tenants had been secured, committing 23% of the
development. Gaysorn, our 49% held luxury retail centre in Bangkok, continued to
trade well and reinforced its position as a leading high-end destination.
In Indonesia, Jakarta Land, where the Group has a 25% interest, is beginning
work on a refurbishment programme of its older buildings.
RESIDENTIAL PROPERTY
2004 saw the first year of significant residential profits for the Group since
the re-establishment of our residential business in 2000. Completions at Phase I
Central Park and Ivy on Belcher's, together with sales at Stanley Court, allowed
the Group to book a net profit of US$35 million. By the year end, over 85% of
Ivy on Belcher's and Stanley Court had been sold, and almost all the units at
Phase II Central Park. Completion of Phase II Central Park is scheduled for
mid-2005, with Phase III commencing construction and sales during the year.
Encouraging progress was also made in securing further development sites in Hong
Kong and Mainland China. In Hong Kong, the redevelopment of Lai Sing Court in
Tai Hang was approved and basic terms agreed with Government on the land
exchange needed for the Victoria Road development in Western District. In
Mainland China, the Group entered into a letter of intent towards the end of
2004 with the Chongqing Municipal Government and a memorandum of understanding
with a major local developer in Chongqing, the Longhu Group, to develop
residential property in the city.
In the Philippines, further units were sold at Roxas Triangle, raising sales to
over 80%.
Grosvenor Land made further investments during the year, one in Hong Kong and
two in Tokyo. The fund's capital is now fully invested, and it has begun
selectively to take profits through disposal of a number of investments made
earlier in its life.
INFRASTRUCTURE
Realisation of value from the Group's infrastructure portfolio made good
progress in 2004. The Group's stake in Asia Container Terminals was sold in
December at a significant profit. Also in December, a restructuring of the debt
of PT Marga Mandalasakti, a toll road company in Indonesia, realised US$6
million in debt repayments to the Group and slightly increased its interest in
the business to 15%. The Group's other material infrastructure investment is its
37.5% stake in Tradeport, the logistics terminal at Hong Kong International
Airport.
FINANCE
The Group's financing strategy has been to diversify its funding sources and
extend maturities. With the US$500 million issue in April of a second global
bond, 60% of the Group's drawn debt is now provided by the bond market and 40%
by the banking sector; the average maturity of committed facilities was 5.3
years at the year end.
OUTLOOK
With very limited supply in Central over the medium term and strengthening
demand, the outlook for office and retail rents is positive, although office
reversions are likely to remain negative for some months yet. Our residential
business has successfully sold the initial phases of its projects. While
residential completions are likely to be fewer in the immediate future, further
developments will follow over the medium term, adding to the growing
profitability of our core commercial business.
Nicholas Sallnow-Smith
Chief Executive
28th February 2005
______________________________________________________________________________
Hongkong Land Holdings Limited
Consolidated Profit and Loss Account
for the year ended 31st December 2004
______________________________________________________________________________
Restated
2004 2003
US$m US$m
______________________________________________________________________________
Revenue (note 2) 409.1 383.7
Cost of sales (116.4) (100.5)
--------- ---------
Gross profit 292.7 283.2
Other income 0.9 0.3
Administrative and other expenses (25.6) (27.6)
--------- ---------
268.0 255.9
Increase/(decrease) in fair value of investment
properties 1,701.3 (824.3)
Asset impairment reversals and disposals (note 3) 62.7 10.2
--------- ---------
Operating profit/(loss) (note 4) 2,032.0 (558.2)
Net financing charges (53.1) (64.5)
Share of results of joint ventures (note 5) 23.7 (5.3)
--------- ---------
Profit/(loss) before tax 2,002.6 (628.0)
Tax (note 6) (314.3) 60.0
--------- ---------
Profit/(loss) for the year 1,688.3 (568.0)
--------- ---------
Profit/(loss) attributable to shareholders 1,688.0 (568.2)
Profit attributable to minority interests 0.3 0.2
--------- ---------
1,688.3 (568.0)
--------- ---------
______________________________________________________________________________
USc USc
______________________________________________________________________________
Earnings/(loss) per share (note 7) 75.84 (25.53)
Underlying earnings per share (note 7) 8.86 7.82
______________________________________________________________________________
______________________________________________________________________________
Hongkong Land Holdings Limited
Consolidated Balance Sheet
at 31st December 2004
______________________________________________________________________________
Restated
2004 2003
US$m US$m
______________________________________________________________________________
Net operating assets
Tangible assets (note 8)
Investment properties 7,289.0 5,506.9
Others 11.7 12.2
--------- ---------
7,300.7 5,519.1
Joint ventures 288.1 267.3
Other investments 0.3 3.7
Deferred tax assets 2.3 6.5
Pension assets 9.7 7.3
Other non-current assets 1.9 0.6
--------- ---------
Non-current assets 7,603.0 5,804.5
Properties held for sale 15.8 38.1
Debtors, prepayments and others 144.6 146.1
Bank balances 749.9 599.6
--------- ---------
Current assets 910.3 783.8
--------- ---------
Creditors and accruals (174.3) (178.6)
Borrowings (note 9) (79.5) (81.5)
Current tax liabilities (8.8) (9.5)
--------- ---------
Current liabilities (262.6) (269.6)
Net current assets 647.7 514.2
Long-term borrowings (note 9) (2,159.6) (2,085.6)
Deferred tax liabilities (885.2) (593.3)
--------- ---------
5,205.9 3,639.8
--------- ---------
Total equity
Share capital 229.5 229.5
Revenue and other reserves 5,053.0 3,487.2
Own shares held (77.7) (77.7)
--------- ---------
Shareholders' funds 5,204.8 3,639.0
Minority interests 1.1 0.8
--------- ---------
5,205.9 3,639.8
--------- ---------
_______________________________________________________________________________
US$ US$
_______________________________________________________________________________
Net asset value per share (note 10) 2.34 1.64
Adjusted net asset value per share (note 10) 2.73 1.89
_______________________________________________________________________________
_______________________________________________________________________________
Hongkong Land Holdings Limited
Consolidated Statement of Recognised Income and Expense
for the year ended 31st December 2004
_______________________________________________________________________________
Restated
2004 2003
US$m US$m
_______________________________________________________________________________
Net exchange translation differences
- amount arising in the year 7.2 10.7
Defined benefit pension plans
- actuarial gains 2.7 5.7
- deferred tax (0.6) (0.9)
Revaluation of other investments
- fair value losses (0.2) -
Cash flow hedges
- fair value (losses)/gains (16.5) 4.9
- transfer to consolidated profit and loss account 18.7 16.3
--------- ----------
Net income recognised directly in equity 11.3 36.7
Profit/(loss) for the year 1,688.3 (568.0)
--------- ----------
Total recognised income and expense for the year 1,699.6 (531.3)
--------- ----------
Attributable to:
Shareholders of the Company 1,699.3 (531.5)
Minority interests 0.3 0.2
--------- ----------
1,699.6 (531.3)
--------- ----------
_______________________________________________________________________________
_______________________________________________________________________________
Hongkong Land Holdings Limited
Consolidated Cash Flow Statement
for the year ended 31st December 2004
_______________________________________________________________________________
Restated
2004 2003
US$m US$m
_______________________________________________________________________________
Operating activities
Operating profit/(loss) 2,032.0 (558.2)
Depreciation 0.9 1.1
(Increase)/decrease in fair value of investment
properties (1,701.3) 824.3
Asset impairment reversals and disposals (62.7) (10.2)
Decrease in properties held for sale 24.4 8.9
Decrease/(increase) in debtors, prepayments and
others 1.6 (22.8)
(Decrease)/increase in creditors and accruals (12.4) 3.1
Interest received 8.3 18.8
Interest and other financing charges paid (54.2) (83.2)
Tax paid (18.7) (31.9)
Dividends received 0.3 0.9
Cash flows from operating activities 218.2 150.8
Investing activities
Major renovations expenditure (14.9) (25.0)
Developments capital expenditure (56.7) (47.0)
Investments in and loans to joint ventures (20.0) (59.3)
Disposal of joint ventures and other investments 93.9 118.1
Cash flows from investing activities 2.3 (13.2)
Financing activities
Net proceeds from issue of bonds/notes 493.8 190.5
Repayment of secured bank loans - (262.9)
Drawdown of unsecured bank loans 11.0 349.5
Repayment of unsecured bank loans (443.4) (231.3)
Dividends paid by the Company (132.8) (133.2)
Cash flows from financing activities (71.4) (87.4)
Effect of exchange rate changes 1.2 0.6
--------- ---------
Net increase in cash and cash equivalents 150.3 50.8
Cash and cash equivalents at 1st January 597.4 546.6
--------- ---------
Cash and cash equivalents at 31st December 747.7 597.4
--------- ---------
_______________________________________________________________________________
USc USc
_______________________________________________________________________________
Cash flow per share (note 12) 9.13 5.65
_______________________________________________________________________________
_______________________________________________________________________________
Hongkong Land Holdings Limited
Notes
_______________________________________________________________________________
1. ACCOUNTING POLICIES AND BASIS OF PREPARATION
The financial information contained in this announcement has been based on the
audited results for the year ended 31st December 2004 which have been prepared
in conformity with International Financial Reporting Standards ('IFRS'),
including International Accounting Standards ('IAS') and Interpretations issued
by the International Accounting Standards Board.
In 2004, the Group early adopted the following IFRS which are relevant to its
operations: IFRS 2 - Share-based Payment, IFRS 3 - Business Combinations, IFRS 4
- Insurance Contracts, IFRS 5 - Non-current Assets Held for Sale and
Discontinued Operations, IAS 19 (amended 2004) - Employee Benefits, IAS 36
(revised 2004) - Impairment of Assets, IAS 38 (revised 2004) - Intangible Assets
and IAS 39 (amended 2004) - Financial Instruments: Recognition and Measurement.
In accordance with IFRS 2, provision of cash-settled share appreciation rights
to employees is measured at fair value of the rights at the balance sheet date.
This is a change in accounting policy as in previous years the provision was
measured at the difference between market price of the shares and the exercise
price. The early adoption of this standard, however, has no material effect on
amounts reported in the prior years.
The early adoption of IFRS 3, IAS 36 (revised 2004) and IAS 38 (revised 2004)
resulted in a change in the accounting policy for goodwill. Until 31st December
2003, goodwill was amortised on a straight-line basis over a period not
exceeding 20 years, and assessed for an indication of impairment at each balance
sheet date. In accordance with the provisions of IFRS 3, amortisation of
goodwill is not permitted from 1st January 2004. From the year ended 31st
December 2004 onwards, goodwill is tested annually for impairment, and when
there are indications of impairment.
There are no changes in accounting policies that affect profit or shareholders'
funds resulting from the adoption of IFRS 4 and IAS 39 (amended 2004) as the
Group was already following the recognition and measurement principles in those
standards.
The early adoption of IFRS 5 has resulted in a change in the accounting policy
for non-current assets (or disposal groups) held for sale. The non-current
assets (or disposal groups) held for sale were previously neither classified nor
presented as current assets or liabilities. The application of IFRS 5 does not
impact on the prior-year financial statements.
The Group has changed its accounting policy for defined benefit pension plans to
recognise actuarial gains and losses in full in the year in which they occur,
outside profit or loss, in the statement of recognised income and expense as
permitted by IAS 19 (amended 2004). Previously, actuarial gains and losses, to
the extent of the amount in excess of 10% of the greater of the present value of
the plan obligations and the fair value of plan assets, are recognised in the
consolidated profit and loss account over the average remaining service lives of
employees. The comparative figures for 2003 have been restated to reflect the
change in policy. The effect of the change has been to decrease administrative
expenses for the year ended 31st December 2003 by US$0.3 million and total
equity at 1st January 2003 and 2004 by US$6.3 million and US$1.2 million
respectively, but to increase earnings per share for the year ended 31st
December 2003 by USc0.01.
Other than described above, there have been no changes to the accounting
policies described in the 2003 financial statements.
2. REVENUE
2004 2003
US$m US$m
___________________________________
By business
Commercial property
Rental income 278.5 301.1
Service and management charges 60.4 59.7
338.9 360.8
Residential property
Rental income 1.3 2.7
Service and management charges 0.1 0.2
Sales of residential properties 68.8 20.0
70.2 22.9
--------- ---------
409.1 383.7
--------- ---------
By geographical area
Hong Kong 391.4 365.8
Southeast Asia 17.7 17.9
--------- ---------
409.1 383.7
--------- ---------
3. ASSET IMPAIRMENT REVERSALS AND DISPOSALS
2004 2003
Gross Net Gross Net
US$m US$m US$m US$m
------------------ ------------------
Asset impairment reversals 2.9 2.9 7.0 7.0
Profit on disposal of joint
venture 59.8 59.8 3.2 3.2
------- ------- ------- -------
62.7 62.7 10.2 10.2
------- ------- ------- -------
By business
Commercial property - - 0.3 0.3
Residential property - - (1.1) (1.1)
Infrastructure 62.7 62.7 11.0 11.0
------- ------- ------- -------
62.7 62.7 10.2 10.2
------- ------- ------- -------
Gross asset impairment reversals and disposals are shown before net financing
charges and tax. Net asset impairment reversals and disposals are shown after
net financing charges, tax and minority interests.
4. OPERATING PROFIT/(LOSS)
2004 2003
US$m US$m
------- -------
By business
Commercial property 258.1 273.2
Residential property 27.9 2.9
Infrastructure 0.8 (0.6)
Corporate (18.8) (19.6)
------- -------
268.0 255.9
Increase/(decrease) in fair value of investment
properties 1,701.3 (824.3)
Asset impairment reversals and disposals (note 3) 62.7 10.2
------- -------
2,032.0 (558.2)
------- -------
5. SHARE OF RESULTS OF JOINT VENTURES
2004 2003
US$m US$m
------- -------
By business
Commercial property 2.3 1.5
Residential property 24.9 (5.4)
Infrastructure (3.5) (1.4)
------- -------
23.7 (5.3)
------- -------
6. TAX
2004 2003
US$m US$m
--------------------
Current tax (18.1) (15.1)
Deferred tax
- revaluation surpluses/deficits of
investment properties (288.9) 76.4
- other temporary differences (7.3) (1.3)
(296.2) 75.1
------- -------
(314.3) 60.0
------- -------
Tax on profits is provided at the rates of taxation prevailing in the
territories in which the Group operates.
7. EARNINGS/(LOSS) PER SHARE
Earnings per share are calculated on profit attributable to shareholders of
US$1,688.0 million (2003: loss of US$568.2 million)and on the weighted average
number of 2,225.6 million (2003: 2,225.6 million) shares in issue during the
year, which excludes 69.6 million shares in the Company held by a wholly-owned
subsidiary.
Earnings per share are additionally calculated based on underlying profit
attributable to shareholders. The difference between underlying profit
attributable to shareholders and profit or loss attributable to shareholders is
reconciled as follows:
2004 2003
US$m US$m
------- -------
Profit/(loss) attributable to shareholders 1,688.0 (568.2)
Revaluation (surpluses)/deficits of investment properties (1,701.3) 824.3
Deferred tax charges/(credit) on revaluation surpluses/
deficits of investment properties 288.9 (76.4)
Share of revaluation (surpluses)/deficits of investment
properties of joint ventures (18.0) 4.4
Share of deferred tax charges on revaluation
surpluses of investment properties of joint ventures 3.5 -
Asset impairment reversals and disposals (62.7) (10.2)
Share of asset disposals of joint ventures (1.3) -
Minority interests 0.1 0.1
-------- -------
Underlying profit attributable to shareholders 197.2 174.0
-------- -------
8. TANGIBLE ASSETS
2004 2003
US$m US$m
------- -------
Net book value at 1st January 5,519.1 6,262.8
Exchange rate adjustments 2.5 27.6
Additions 78.7 54.1
Depreciation (0.9) (1.1)
Revaluation surplus/(deficit) 1,701.3 (824.3)
------- -------
Net book value at 31st December 7,300.7 5,519.1
------- -------
9. BORROWINGS
2004 2003
US$m US$m
---------------------
Current
Bank overdrafts 2.2 2.2
Short-term borrowings 77.1 77.3
Current portion of long-term borrowings 0.2 2.0
79.5 81.5
Long-term borrowings
Bank loans 818.0 1,238.7
7% United States Dollar bonds due 2011 648.7 655.2
3% Hong Kong Dollar notes due 2006 192.1 191.7
5.5% United States Dollar bonds due 2014 500.8 -
2,159.6 2,085.6
------- -------
2,239.1 2,167.1
------- -------
Secured - 2.0
Unsecured 2,239.1 2,165.1
------- -------
2,239.1 2,167.1
------- -------
10. NET ASSET VALUE PER SHARE
Net asset value per share' is calculated on shareholders' funds of US$5,204.8
million (2003: US$3,639.0 million)and on 2,225.6 million (2003: 2,225.6
million) shares issued at year end, which excludes 69.6 million shares in the
Company held by a wholly-owned subsidiary.
Additional net asset value per share is also calculated based on adjusted
shareholders' funds. The difference between adjusted shareholders' funds and
shareholders' funds is reconciled as follows:
2004 2003
US$m US$m
----------------------
Shareholders' funds 5,204.8 3,639.0
Deferred tax on revaluation surpluses of
investment properties 860.9 572.5
Share of deferred tax on revaluation surpluses
of investment properties of joint ventures 5.9 2.7
------- -------
Adjusted shareholders' funds 6,071.6 4,214.2
------- -------
11. DIVIDENDS
2004 2003
US$m US$m
---------------------
Final dividend in respect of 2003 of USc4.00
(2002: USc4.00) per share 89.0 89.0
Interim dividend in respect of 2004 of USc2.00
(2003: USc2.00) per share 44.5 44.5
------- -------
133.5 133.5
------- -------
A final dividend in respect of 2004 of USc5.00 (2003: USc4.00) per share
amounting to a total of US$111.3 million (2003: US$89.0 million) is proposed by
the Board. The dividend proposed is not accounted for until it has been approved
at the Annual General Meeting. The amount will be accounted for as an
appropriation of revenue reserves in the year ending 31st December 2005.
12. CASH FLOW PER SHARE
Cash flow per share is based on cash flows from operating activities less major
renovations expenditure amounting to US$203.3 million (2003: US$125.8 million)
and is calculated on the weighted average number of 2,225.6 million (2003:
2,225.6 million) shares in issue during the year, which excludes 69.6 million
shares in the Company held by a wholly-owned subsidiary.
13. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
2004 2003
US$m US$m
-------------------
Capital commitments 493.4 570.4
------- -------
Guarantees in respect of
- facilities made available to joint ventures 19.7 24.1
- Container Terminal 9 development in Hong Kong - 39.1
------- -------
The final dividend of USc5.00 per share will be payable on 11th May 2005,
subject to approval at the Annual General Meeting to be held on 4th May 2005, to
shareholders on the register of members at the close of business on 18th March
2005. The ex-dividend date will be on 16th March 2005, and the share registers
will be closed from 21st to 24th March 2005, inclusive. Shareholders will
receive their 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 by notifying the United
Kingdom transfer agent in writing by 22nd April 2005. The Sterling equivalent of
dividends declared in United States Dollars will be calculated by reference to a
rate prevailing on 27th April 2005. Shareholders holding their shares through
The Central Depository (Pte) Limited ('CDP') in Singapore will receive United
States Dollars unless they elect, through CDP, to receive Singapore Dollars.
For further information, please contact:
Hongkong Land Limited
N R Sallnow-Smith (852) 2842 8300
G M Brown (852) 2842 8138
Matheson & Co Limited
Martin Henderson (44) 20 7816 8135
GolinHarris
C T Hew (852) 2501 7963
Weber Shandwick Square Mile
Richard Hews (44) 20 7067 0700
Full text of the Preliminary Announcement of Results and the Preliminary
Financial Statements for the year ended 31st December 2004 can be accessed
through the Internet at 'www.hkland.com'.
This information is provided by RNS
The company news service from the London Stock Exchange
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