Preliminary Results
Hong Kong Land Hldgs Ld
26 February 2001
HONGKONG LAND HOLDINGS LIMITED
2000 PRELIMINARY ANNOUNCEMENT OF RESULTS
* Commercial rents recover in Hong Kong
* Capital values improve, allowing substantial write back of
provisions taken in 1998
* Negative reversion cycle nears its end
* One Raffles Link sets new standard for Singapore
Results
Year ended 31st December
2000 1999 Change
US$m US$m %
________ _______ _______
Operating profit 408 319 +28
Net profit 355 267 +33
Underlying profit 230 265 -13
________ _______ _______
USc USc %
________ _______ _______
Earnings per share 14.08 10.59 +33
Underlying earnings per share 9.11 10.48 -13
Dividends per share 9.00 9.00 -
________ _______ _______
US$ US$ %
________ _______ _______
Net asset value per share 2.91 2.07 +41
________ _______ _______
'Although the pace of recovery in rents in Hong Kong's Central
district has moderated, the lack of new supply of Grade A
space over the year ahead will continue to set a positive tone
to the market. Rental reversions are expected to turn
positive in the middle of the year.'
Simon Keswick, Chairman
'Hongkong Land's strategy remains focused on our Central
portfolio in Hong Kong; new property developments in Hong Kong
and the region; and expanding our infrastructure portfolio.'
Nicholas Sallnow-Smith, Chief Executive
26th February 2001
The final dividend of USc5.50 per share will be payable on
24th May 2001, subject to approval at the Annual General
Meeting to be held on 16th May 2001, to shareholders on the
register of members at the close of business on 23rd March
2001. The ex-dividend date will be on 21st March 2001, and
the share registers will be closed from 26th to 30th March
2001, inclusive.
HONGKONG LAND HOLDINGS LIMITED
PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED 31ST DECEMBER 2000
OVERVIEW
After more than two years of decline, rentals in Hong Kong's
Central business district recovered strongly in 2000, although
the pace of that recovery moderated in the fourth quarter.
Capital values also rebounded, though they have yet fully to
reflect the recovery in rentals. Singapore saw a more
moderate strengthening in commercial property values as rental
levels rose. Other markets where Hongkong Land is invested
were mixed.
PERFORMANCE
Hongkong Land Holdings Limited today announced that the net
profit for the year ended 31st December 2000 was US$355
million, 33% higher than 1999. The major factor underlying
this increase was a US$133 million write-back of provisions
taken in 1998 against the value of development properties.
Excluding these items, underlying earnings fell by 13%, to
US$230 million, as negative rental reversions continued to
reduce property income in the Hong Kong Central portfolio.
Earnings per share rose by 33% to USc14.08. Excluding asset
impairment reversals and disposals, earnings per share fell
13% to USc9.11 compared with USc10.48 in 1999.
The Group's investment property portfolio was valued by
independent professional valuers at 31st December 2000, as is
the practice every year. This led to a net valuation surplus
of US$1,766 million, which has been credited to reserves.
Shareholders' funds accordingly rose strongly, up by 33% on
the end of 1999 to US$6,947 million. Net asset value per
share increased by 41% to US$2.91 per share.
In November 2000, the Company invited shareholders to tender
shares to the Company at prices up to US$2.20 per share. Some
132 million of shares were tendered and cancelled at a cost of
US$292 million. As a consequence of the reduction in the
number of shares outstanding, net asset value per share at
31st December 2000 improved by 1% or USc4 per share.
The Directors recommend a final dividend of USc5.50 per share,
which together with the interim dividend of USc3.50 per share,
gives a total annual dividend of USc9.00 per share, unchanged
from 1999.
GROUP REVIEW
Turning to the operations, the Chairman, Simon Keswick, said
that the advantages of the Group's focus on prime Central
Business District locations were demonstrated in 2000 as those
sectors of the office markets in Hong Kong and Singapore
recovered more quickly than decentralised locations. This has
been reflected in substantial increases in the values of its
investment properties, and in increases in occupancy. The
Group's office occupancy in Hong Kong and Singapore rose to
98%, while its retail portfolio is effectively fully let. The
Group's key Central portfolio in Hong Kong continues to
benefit from refurbishment spending, both on the visible face
of public areas and on the mechanical & electrical and IT
infrastructure. Central will be further enhanced in 2002 by
the completion of 11 Chater Road. In the residential sector,
the Group will commence the redevelopment of its site in Hong
Kong's Western district late in 2001.
The Group's infrastructure portfolio has also developed. It
has taken a 24% stake in China Infrastructure Group, a port
business focused on Mainland China, and, since the year
closed, a consortium in which Hongkong Land has a 30% stake
was awarded the right to build the logistics terminal at Hong
Kong's Chek Lap Kok airport.
OUTLOOK
In conclusion, Simon Keswick said, 'Although the pace of
recovery in rents in Hong Kong's Central district has
moderated, the lack of new supply of Grade A space over the
year ahead will continue to set a positive tone to the market.
Rental reversions are expected to turn positive in the middle
of the year.
'The Group has confidence in the future development of Asia's
financial centres and will continue to invest and develop
business partnerships in these key locations, creating value
for shareholders as these centres grow.'
CHIEF EXECUTIVE'S REVIEW
STRATEGIC FOCUS
Hongkong Land's strategy remains focused on
- Our Central portfolio in Hong Kong
- New property developments in Hong Kong and the region
- Expanding our infrastructure portfolio
In pursuing our property interests, we concentrate on high
quality assets and locations, where the premium nature of our
service and management creates the most value. In growing our
infrastructure portfolio, we will focus on sectors, which are
best positioned to benefit from the continuing expansion of
Asian trade.
COMMERCIAL PROPERTY
Central Portfolio
Nearly 2 1/2 years after the period of decline began in 1997, our
core market experienced a rapid recovery in rental levels in
2000. Vacancy in high quality buildings was quickly absorbed,
as occupiers sensed the upturn and took action to secure space
in anticipation of a lack of supply. Those incentives that
had been widely offered by landlords during the downturn
dissipated rapidly and rents effectively doubled over the
middle two quarters of the year. With expansion demand
largely satisfied and activity levels falling back as vacancy
reduced, the fourth quarter saw a significant slowing of the
rate of increase. The continued limited supply of high
quality space until 11 Chater Road is released in the middle
of 2002 is, nevertheless, likely to be positive for the market
throughout 2001.
In the retail sector, although Hong Kong retailers had a mixed
year, the luxury segment of the market on which Hongkong Land
is focused has been performing well. Demand for space
remained strong and rentals improved over the year.
Investment in our Central portfolio continued. In addition to
developing a new building at 11 Chater Road, Hongkong Land
continues to upgrade the premium portfolio of commercial
property it has created in Central. The refurbishment of the
podium of Exchange Square is now complete, upgrading of the
bridge network connecting our Central properties is underway
and plans are in preparation for upgrading the retail podium
of Alexandra House.
In addition to these tangible investments in the
infrastructure of our portfolio, the Group enhanced the value
of its Central assets during the year through a highly
successful media campaign underlining the attraction of
Central as a location. We also continue to work to further
improve our high quality property management through a
programme of enhancements to our services. An example of the
benefits of this programme, called Brand Central, is the well
received concept of the Concierge desks now assisting the
public and our tenants across our portfolio.
Other Commercial Properties
In Hong Kong, outside the Central portfolio, 1063 King's Road
is fully occupied and has been well received in the market as
a high quality product in its Island East location. Both the
office and retail elements of our development in Singapore
became operational during the year. One Raffles Link is 100%
occupied and is widely regarded as the premier large floor-
plate building in the city. Our unique underground retail
mall, CityLink Mall, opened in July to great interest and has
seen levels of foot-fall exceeding expectations. It is now
fully let.
In Vietnam, rents and occupancy at our two premium office
buildings have been stable. The prospects for the Vietnam
economy are, however, beginning to brighten amid signs of a
new government focus on policies supportive of economic
growth.
E-Commerce
Our strategy in e-Commerce is to invest only in areas directly
related to our core property business, where we see value
added both for users of our property portfolio and our
shareholders. Initial investments have been limited to
developing our community website 'centralhk.com', and an
investment in Network Centers, a virtual office business now
operating in Hongkong Land managed space in Hong Kong and
Singapore.
RESIDENTIAL PROPERTY
Occupancy at Maple Place, an investment in luxury villas and
apartments in Beijing where the Group has a 40% interest, rose
to some 80% by the year-end, with stable rental levels. In
Manila, our luxury apartment joint venture with Ayala Land is
nearing completion. We expect the quality of the development
to be recognised in the market place but amid the economic
uncertainties in the Philippines, the demand for luxury flats
remains weak.
Grosvenor Land, the Group's residential property fund joint
venture with Grosvenor Estates, fully invested all of its
initial equity in 2000. Together with debt funding, the
venture has now invested US$55 million and plans to attract
new third party funds in 2001.
In Hong Kong, the Group's small residential portfolio remains
substantially let. While the mass residential sector of the
property fell back during 2000, the luxury segment, where Hong
Kong's portfolio is targeted, was broadly stable. Since the
year end, the Group has begun the process of developing its
site at Belcher's Street in the Western District of Hong Kong
into residential apartments.
INFRASTRUCTURE
In Hong Kong, the construction of CT9 is now underway,
following the award of the construction contract in March.
The prospects for Hongkong Land's 28.5% stake in the Asia
Container Terminal Consortium, which will operate in CT8
following the berth swap, look promising. Also in the port
sector, Hongkong Land took a 24% stake in the China
Infrastructure Group Limited. This company is focused on port
developments in Mainland China, with one operational port and
two under development.
The Group's Mainland China infrastructure investments made
progress during the year. China Water Company, where the
Group's interest is 40%, now has three operational plants,
with two others under construction. At Central China Power,
two plants are operational and a third is being constructed.
Hongkong Land's interest in CCP increased from 25% to 36% as a
result of a capital reorganisation during the year.
Following discussions begun in 1999, Hongkong Land formed a
joint venture with Winstar Communications to provide broadband
access and added-value services, taking advantage of the
licencing of wireless local loop technology in Hong Kong.
Since the year end Tradeport Hong Kong, where the Group has a
30% interest and is partnered with Jardine Logistics, CNAC,
and Schipol and Frankfurt Airports, won the right to construct
and operate the logistics centre at Hong Kong's Chek Lap Kok
International Airport. Construction is expected to be
complete by 2003. Also in the logistics area, Hongkong Land
in joint venture with Jardine Logistics will develop a
logistics centre at Penang in Malaysia, serving its high-tech
exporting sector.
CORPORATE DEVELOPMENTS
The Group's interest in Connaught Investors Limited, an
investment holding company held by Jardine Matheson, Jardine
Strategic and Hongkong Land, was restructured in December.
The majority of Connaught's assets were acquired by Jardine
Strategic at market value for cash. Hongkong Land received
US$208 million as a result, crystallising a profit of US$12
million. Hongkong Land also received its pro-rata 45%
interest in an investment in Nelfi, a private holding company
with an interest in LVMH shares.
In November, the Group announced a tender offer to all
shareholders under which up to 10% of its stock could be
repurchased and cancelled at prices not exceeding US$2.20 per
share. This offer closed on 22nd December 2000 with 131.5
million shares tendered representing 5% of the stock. The
consideration payable was US$289 million. The tender offer
allowed shareholders to take the opportunity to tender shares
at a premium of some 15% to the market level before the offer
was announced. It has enabled Hongkong Land to improve the
efficiency of its balance sheet, whilst leaving the Company
strongly financed for further development.
COMMUNITY AFFAIRS
The Group believes it important for a business to support the
community in which it operates and generates its revenues. A
vibrant community in which the arts thrive, academic endeavour
is supported, and disadvantaged groups are aided, is
ultimately positive for the business environment of Hong Kong.
As a result, the Group continues to contribute to a range of
charities, academic programmes and artistic causes.
Nicholas Sallnow-Smith
Chief Executive
26th February 2001
Hongkong Land Holdings Limited
Consolidated Profit and Loss Account
for the year ended 31st December 2000
2000 1999
US$m US$m
______ ______
Revenue (note 2) 386.5 418.9
Recoverable and non-
recoverable costs (77.2) (76.9)
______ ______
Net income from properties 309.3 342.0
Other income 1.2 0.4
Administrative and other expenses (27.5) (25.2)
______ ______
283.0 317.2
Asset impairment reversals and
disposals (note 3) 125.0 2.2
______ ______
Operating profit (note 4) 408.0 319.4
Net financing charges (41.1) (30.9)
Share of results of associates and joint
ventures (note 5) 14.5 10.2
_______ _______
Profit before tax 381.4 298.7
Tax (note 6) (26.7) (30.6)
_______ _______
Profit after tax 354.7 268.1
Minority interests (0.1) (1.0)
_______ _______
Net profit 354.6 267.1
======= =======
USc USc
Earnings per share (note 7)
- basic 14.08 10.59
- diluted 14.08 10.59
Underlying earnings per share (note 7)
- basic 9.11 10.48
- diluted 9.11 10.48
________ _______
_______________________________________________________________
Hongkong Land Holdings Limited
Consolidated Balance Sheet
at 31st December 2000
_______________________________________________________________
2000 1999
US$m US$m
________ _______
Net operating assets
Tangible assets (note 8)
Investment properties 6,969.0 4,848.8
Development properties 650.4 697.6
Others 16.2 16.1
________ ________
7,635.6 5,562.5
Associates and joint ventures 229.6 397.1
Other investments 25.1 12.9
Deferred tax assets 2.4 2.4
Pension assets 9.4 9.3
________ _______
Non-current assets 7,902.1 5,984.2
________ _______
Current assets (note 9) 1,569.7 1,449.0
Current liabilities (note 10) (1,413.4) (522.0)
________ _______
Net current assets 156.3 927.0
Long-term borrowings (note 11) (1,097.6) (1,674.0)
Deferred tax liabilities (13.6) (11.3)
________ ________
6,947.2 5,225.9
======== ========
Capital employed
Share capital 246.1 259.2
Revenue and other reserves ________ ________
Property revaluation reserve 5,542.3 3,654.3
Exchange fluctuation reserve (48.1) (44.2)
Revenue reserves 1,284.2 1,434.0
________ ________
6,778.4 5,044.1
Own shares held (77.7) (77.7)
________ ________
Shareholders' funds 6,946.8 5,225.6
Minority interests 0.4 0.3
________ ________
6,947.2 5,225.9
========= =========
US$ US$
Net asset value per share 2.91 2.07
________ ________
--------------------------------------------------------------
Hongkong Land Holdings Limited
Consolidated Statement of Changes in Shareholders' Funds
for the year ended 31st December 2000
--------------------------------------------------------------
2000 1999
US$m US$m
________ ________
At 1st January 5,225.6 5,071.7
________ ________
Net revaluation surplus 1,631.6 162.5
Write-back on/(provision
against) a development
property 256.0 (29.5)
Share of reserve movements
of associates
and joint ventures (0.2) (0.7)
Provision against a short-
term leasehold
investment property - (5.6)
Deferred tax on provision against a
short-term leasehold investment
property - 1.0
Net exchange translation
differences
- amount arising in year (20.8) (13.8)
- release to the
consolidated profit and
loss account 19.2 -
________ ________
Net gains not recognised in the
consolidated profit and loss account 1,885.8 113.9
Net profit 354.6 267.1
Dividends (note 12) (227.1) (227.1)
Repurchase of ordinary shares (292.1) -
________ ________
At 31st December 6,946.8 5,225.6
======== ========
--------------------------------------------------------------
Hongkong Land Holdings Limited
Consolidated Cash Flow Statement
for the year ended 31st December 2000
--------------------------------------------------------------
2000 1999
US$m US$m
_________ _______
Cash flows from operating activities
Operating profit 408.0 319.4
Depreciation 5.1 5.7
Asset impairment reversals and
disposals (125.0) (2.2)
Increase in stock and store - (0.1)
Increase in debtors and prepayments (2.2) (10.9)
(Decrease)/increase in creditors and
accruals (9.9) 2.0
Interest received 90.3 73.0
Interest and other financing charges
paid (127.7) (102.0)
Tax paid (25.6) (32.1)
Dividends received 1.3 0.3
________ ________
214.3 253.1
Cash flows from investing activities
________ ________
Major renovations expenditure (16.1) (11.6)
Developments capital expenditure (79.7) (134.7)
Investments in and loans to
joint ventures (19.9) (13.3)
Disposal of associates (note 13) 207.9 -
Purchase of other investments (12.2) -
Disposal of other investments - 0.4
________ ________
80.0 (159.2)
Cash flows from financing activities
________ ________
Drawdown of secured bank loans 162.2 151.1
Repayment of secured bank loans (0.7) -
Drawdown of unsecured bank loans 145.9 -
Repayment of unsecured bank loans (186.8) (49.7)
Repurchase of 4% convertible bonds (51.0) (27.2)
Dividends paid by the Company (226.9) (226.1)
________ ________
(157.3) (151.9)
Effect of exchange rate changes 1.0 0.2
________ ________
Net increase/(decrease) in cash and cash
equivalents 138.0 (57.8)
Cash and cash equivalents at
1st January 1,353.1 1,410.9
________ ________
Cash and cash equivalents at 31st
December 1,491.1 1,353.1
========= =========
USc USc
Cash flow per share (note 14) 7.87 9.57
________ ________
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 2000 which have been prepared in conformity with
International Accounting Standards. There have been no
changes to the accounting policies described in the 1999
financial statements.
2. REVENUE
2000 1999
US$m US$m
________ ________
By business
Property
Rental income 327.5 364.8
Service and management charges 58.2 53.3
Income from property trading 0.8 0.8
________ ________
386.5 418.9
________ ________
By geographical area
Hong Kong 374.2 415.8
Southeast Asia 12.3 3.1
________ ________
386.5 418.9
========= =========
3. ASSET IMPAIRMENT REVERSALS AND DISPOSALS
2000 1999
Gross Net Gross Net
US$m US$m US$m US$m
________ ________ ________ ________
Impairment reversals on
properties 134.8 134.8 2.2 2.6
Other asset provision (21.6) (21.6) - -
Profit on disposals of
associates 11.8 11.8 - -
________ ________ ________ ________
125.0 125.0 2.2 2.6
======== ======== ======== ========
By business
Property 113.2 113.2 2.2 2.6
Corporate 11.8 11.8 - -
________ ________ ________ ________
125.0 125.0 2.2 2.6
======== ======== ======== ========
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
2000 1999
US$m US$m
________ ________
By business
Property 302.3 336.3
Infrastructure (0.8) (1.0)
Corporate (18.5) (18.1)
________ ________
283.0 317.2
________ ________
Asset impairment reversals and
disposals(see note 3) 125.0 2.2
________ ________
408.0 319.4
======== ========
5. SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
2000 1999
US$m US$m
________ ________
By business
Property 1.4 1.0
Infrastructure 2.0 2.7
Corporate
Connaught Investors 11.1 6.5
________ ________
14.5 10.2
======== ========
6. TAX
2000 1999
US$m US$m
________ ________
Current tax
Company and subsidiaries ________ ________
Hong Kong 23.5 26.0
Southeast Asia 0.2 0.1
________ ________
23.7 26.1
________ ________
Associates and joint ventures
Hong Kong 0.2 0.1
Mainland China 0.4 0.3
Connaught Investors - 0.1
________ ________
0.6 0.5
________ ________
24.3 26.6
Deferred tax
Hong Kong subsidiaries
Reversal of temporary
differences 2.4 4.0
________ ________
26.7 30.6
======== ========
6. TAX (cont'd)
2000 1999
US$m US$m
________ ________
Reconciliation of tax and profit
Tax at applicable tax rate 57.9 37.4
Asset impairment reversals and
disposals not taxable in
determining taxable profit (30.2) (0.6)
Expenses not deductible in
determining taxable profit 0.5 0.4
Other income not subject to tax (4.4) (2.7)
Losses not recognised 2.9 2.0
Tax rebates for previous year - (5.6)
Overprovision for prior years - (0.3)
________ ________
26.7 30.6
========= =========
Tax on profits is provided at the rates of taxation
prevailing in the territories in which the Group operates.
The applicable tax rate represents the weighted average of
the rates of taxation prevailing in the territories in
which the Group operates.
7. EARNINGS PER SHARE
Earnings per share are calculated on net profit of US$354.6
million (1999: US$267.1 million) and on the weighted
average number of 2,519.2 million (1999: 2,522.8 million)
shares in issue during the year, which excludes 69.6
million shares in the Company held by a wholly-owned
subsidiary.
2000 1999
US$m US$m
________ ________
Net profit 354.6 267.1
Asset impairment reversals and
disposals (see note 3) (125.0) (2.6)
________ ________
Underlying profit 229.6 264.5
======== ========
The convertible bonds are anti-dilutive and therefore
ignored in calculating diluted earnings per share. As a
result, earnings per share and diluted earnings per share
are the same.
8. TANGIBLE ASSETS AND CAPITAL COMMITMENTS
2000 1999
US$m US$m
________ ________
Tangible assets
At 1st January 5,562.5 5,296.2
Exchange rate adjustments (27.8) (17.1)
Additions 83.6 164.4
Depreciation (5.1) (5.7)
Net revaluation surplus and
write-back 2,022.4 124.7
________ ________
At 31st December 7,635.6 5,562.5
========= =========
Capital commitments 513.2 622.7
========= =========
9. CURRENT ASSETS
2000 1999
US$m US$m
________ ________
Property held for sale 40.9 41.1
Debtors, prepayments and others 35.2 34.6
Bank balances and other liquid
funds 1,493.6 1,373.3
________ ________
1,569.7 1,449.0
======== ========
Bank balances and other liquid funds include liquid
investments of US$193.5 million (1999: US$106.3 million).
Bank balances included an amount of US$88.0 million (1999:
US$134.6 million) subject to collateralised arrangements.
10. CURRENT LIABILITIES
2000 1999
US$m US$m
________ ________
Creditors and other accruals 473.5 201.5
Borrowings (see note 11) 927.3 306.9
Current tax liabilities 12.6 13.6
________ ________
1,413.4 522.0
======== ========
11. LONG-TERM BORROWINGS
2000 1999
US$m US$m
________ ________
Hong Kong Dollar
Secured bank loans 1,241.1 1,116.3
Unsecured bank loans and
overdraft 174.4 234.0
7.625% bonds - 1993/2001 64.1 64.3
________ ________
1,479.6 1,414.6
Singapore Dollar
Secured bank loans 120.5 90.5
United States Dollar ________ ________
Secured bank loans 2.7 3.4
Unsecured bank loans and
overdraft 113.8 113.8
4% convertible bonds due 2001 307.1 357.6
________ ________
423.6 474.8
Vietnamese Dong
Unsecured bank loans and
overdraft 1.2 1.0
________ ________
2,024.9 1,980.9
Less current borrowings
(see note 10) 927.3 306.9
________ ________
1,097.6 1,674.0
======== ========
The 4% convertible bonds due 2001 issued in February 1994
were convertible into fully paid ordinary shares of the
Company at a price of US$4.02 per share. The bonds were
listed on the Luxembourg Stock Exchange.
The equity component of the convertible bonds amounted to
US$49.7 million (1999: US$58.1 million) based on the
prevailing market interest rate of 7% at the time of issue
for similar debt without conversion options.
The 4% convertible bonds were repaid at par on 23rd
February 2001.
Of the total borrowings of US$2,024.9 million (1999:
US$1,980.9 million), the convertible bonds were at a fixed
interest rate of 4%, US$625.2 million equivalent of Hong
Kong Dollar loans was at an average fixed interest rate of
8.0% (1999: US$579.5 million at 8.1%) and US$34.6 million
equivalent of Singapore Dollar loans was at an average
fixed interest rate of 4.8% (1999: US$6.0 million at 4.5%).
After taking account of interest rate swaps, the overall
average interest rates were 7.3% (1999: 7.5%) for Hong Kong
Dollar loans, 4.6% (1999: 4.6%)for United States Dollar
loans and 4.5% (1999: 4.3%) for Singapore Dollar loans.
Mortgages have been granted over certain properties of
total value of US$2,315.6 million (1999: US$1,721.7
million) as security for the obligations of the Group to
various banks in respect of the secured bank loans.
12. DIVIDENDS
2000 1999
US$m US$m
________ ________
Final dividend in respect of 1999
of USc5.50 (1998: USc5.50) per
share 138.8 138.8
Interim dividend in respect of
2000 of USc3.50 (1999: USc3.50)
per share 88.3 88.3
________ ________
227.1 227.1
======= =======
A final dividend in respect of 2000 of USc5.50 per share
amounting to a total of US$131.5 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 2001.
13. DISPOSAL OF ASSOCIATES
The Group disposed of its 45% interest in Connaught
Investors Limited to Jardine Strategic Holdings Limited at
US$207.9 million.
14. CASH FLOW PER SHARE
Cash flow per share is based on cash flows from operating
activities less major renovations expenditure amounting to
US$198.2 million (1999: US$241.5 million) and is calculated
on the weighted average number of 2,519.2 million (1999:
2,522.8 million) shares in issue during the year, which
excludes 69.6 million shares in the Company held by a
wholly-owned subsidiary.
15. CONTINGENT LIABILITIES
A subsidiary of the Group has given guarantees in respect
of the Group's obligations to the Container Terminal 9
development in Hong Kong. The anticipated capital
commitment to the build out of two berths in the project is
estimated to be approximately US$160.0 million. However,
were the subsidiary required to provide additional funds
for the build out cost of the other berths, the maximum
contingent liability assumed in respect of the guarantees
would be US$271.2 million (1999: US$276.3 million).
16. ANNUAL REPORT
The Annual Report will be posted to shareholders on or
about 11th April 2001. Copies may be obtained from Jardine
Matheson International Services Limited, P.O. Box HM 1068,
Hamilton HM EX, Bermuda; Capita IRG Plc, Bourne House, 34
Beckenham Road, Beckenham, Kent BR3 4TU, England and M & C
Services Private Limited, 138 Robinson Road 17-00, Hong
Leong Centre, Singapore 068906.
The final dividend of USc5.50 per share will be payable on
24th May 2001, subject to approval at the Annual General
Meeting to be held on 16th May 2001, to shareholders on the
register of members at the close of business on 23rd March
2001. The ex-dividend date will be on 21st March 2001, and
the share registers will be closed from 26th to 30th March
2001, 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 4th May 2001. The Sterling equivalent of dividends
declared in United States Dollars will be calculated by
reference to a rate prevailing ten business days prior to the
payment date. 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
Kuah Boon Wee (852) 2842 8400
Matheson & Co. Limited (44) 207 816 8135
Martin Henderson
Golin/Harris Forrest
David Dodwell (852) 2522 6475
Golin/Harris Ludgate (44) 207 324 8888
Richard Hews
Trish Featherstone
Full text of this and other Group announcements, and the
Preliminary Financial Statements for the year ended 31st
December 2000 can be accessed through the Internet at
'www.hkland.com'.
NOTE TO EDITORS
Hongkong Land is a property and infrastructure investment,
management and development group. The Company owns and
manages some 5 million sq. ft of prime office and retail space
in the heart of Hong Kong's Central business district. It is
active primarily in the Hong Kong SAR, Mainland China and
Singapore, and has a portfolio of property and infrastructure
interests in other Asian cities. Hongkong Land employs some
600 people, has its primary share listing in London, and at
end of 2000, reported shareholders' funds in excess of
US$6 billion.
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