Final Results
Hongkong Land Hldgs Ld
25 February 2003
To: Business Editor 25th February 2003
For immediate release
The following announcement was today issued to the London
Stock Exchange.
HONGKONG LAND HOLDINGS LIMITED
2002 PRELIMINARY ANNOUNCEMENT OF RESULTS
Highlights
- Weak demand in Hong Kong office market
- Chater House completed and 53% let
- Remainder of the Central Portfolio 93% let
- Plans announced for improvement of the Landmark
'In the near term, rentals and values will continue to
experience downward pressure. The Directors have
therefore deemed it prudent to recommend a reduced
dividend. However, the medium-term outlook for the
Group's core Hong Kong property portfolio remains
favourable, with no significant supply in Central from
2004 onwards.'
Simon Keswick, Chairman
25th February 2003
Results
__________________________________________________________________________
Prepared in accordance with IFRS as Year ended 31st December
modified by revaluation of leasehold 2002 2001 Change
properties* US$m US$m %
__________________________________________________________________________
Underlying net profit 192 213 -10
Net loss (826) (416) n/m
__________________________________________________________________________
USc USc %
__________________________________________________________________________
Underlying earnings per share 8.64 8.94 -3
Loss per share (37.10) (17.49) n/m
Dividends per share 7.50 9.00 -17
__________________________________________________________________________
US$ US$ %
__________________________________________________________________________
Net asset value per share 2.23 2.72 -18
__________________________________________________________________________
* The Group's financial statements are prepared under
International Financial Reporting Standards ('IFRS') which
do not permit leasehold interests in land to be carried at
valuation. This treatment does not reflect the generally
accepted accounting practice in the territories in which
the Group has significant leasehold interests, nor how
management measures the performance of the Group.
Accordingly, the Group has presented supplementary
financial information prepared in accordance with IFRS as
modified by the revaluation of leasehold properties in
addition to the IFRS financial statements. The figures
included in the above summary, the Chairman's Statement
and Chief Executive's Review are based on this
supplementary financial information unless otherwise
stated.
The final dividend of USc4.00 per share will be payable
on 14th May 2003, subject to approval at the Annual
General Meeting to be held on 7th May 2003, to
shareholders on the register of members at the close of
business on 14th March 2003. The ex-dividend date will
be on 12th March 2003, and the share registers will be
closed from 17th to 21st March 2003, inclusive.
HONGKONG LAND HOLDINGS LIMITED
PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED 31ST DECEMBER 2002
OVERVIEW
Weak demand in Hong Kong's office market continued in 2002
and the Group's average rents and occupancy levels
remained under pressure. Hongkong Land, however,
increased its share of leasing transactions in Central as
tenants saw good value in its high quality locations and
buildings.
PERFORMANCE
Net rental income fell by 2% compared with 2001, as rents
trended lower, while financing charges rose because of
the higher levels of net debt following the repurchase of
shares at the end of 2001. Underlying earnings for 2002
accordingly fell by 10% to US$192 million. Underlying
earnings per share, based on the weighted average number
of shares in issue during the year, fell by 3% to
USc8.64; the reduced decline reflecting the effect of the
share repurchases.
The Group's investment property portfolio was valued by
independent valuers at the end of the year. This led to
a net valuation deficit of US$988 million, which is
charged to the profit and loss account under the
International Financial Reporting Standards used by the
Group. This movement was the main factor in the
reduction of shareholders' funds of US$1,091 million to
US$4,957 million, which led to the net asset value per
share reducing by 18% to US$2.23.
With the timing of a recovery in demand in the Group's
core market still uncertain, the Directors have concluded
that it would be prudent to recommend a reduced final
dividend of USc4.00 per share for 2002, compared with
USc5.50 per share for 2001. Together with the interim
dividend of USc3.50, this gives a total dividend of
USc7.50 per share for the year.
STRATEGIC REVIEW
Despite the downturn in Hong Kong's office sector, the
Group continues to invest in its core portfolio. Chater
House was successfully completed in 2002 and the
property's anchor tenants, both office and retail, were
operating before the year end. The renovation of the
Alexandra House retail podium is under way and will be
completed and substantially let before the end of 2003.
Preparations have also begun for a major renovation of
the Landmark complex in the heart of Central. These
projects, each of which adds incremental revenue to
Hongkong Land, should enable the Group to maximize the
value of its prime assets.
In Singapore, construction of the Group's joint-venture
development, One Raffles Quay, is well under way, while
its wholly-owned One Raffles Link remains fully let and
commands a rental premium in difficult market conditions.
Investment also continues in the Group's residential
property business where progress is being made in the
construction of Phase I of Central Park in Beijing, which
has achieved good presales, and of the Belcher's Street
site in Hong Kong.
OUTLOOK
In conclusion, the Chairman, Simon Keswick said, 'In the
near term, rentals and values will continue to experience
downward pressure. However, the medium-term outlook for
the Group's core Hong Kong property portfolio remains
favourable, with no significant supply in Central from
2004 onwards.'
CHIEF EXECUTIVE'S REVIEW
STRATEGIC FOCUS
Through this cyclical downturn in our office market, we
continue to focus on ensuring that the value of our core
asset base is optimized and the strength of our customer
relationships maintained. We do this through a
combination of investment in our properties, and
progressive enhancements to the level of services we
provide to our tenants.
In this environment, our investment strategy will be to
give priority to upgrading our core portfolio, with new
ventures restricted to key strategic sites in markets
with long term potential.
In view of the importance of focusing on our core
property businesses, and recognizing the difficult
operating environments which some of our infrastructure
investments face, our strategy is selectively to dispose
of assets in this sector over time.
COMMERCIAL PROPERTY
Central Portfolio
Net take-up of office space in Hong Kong's Central
District remained negative in 2002. This led to
weakening rentals throughout the year despite limited
supply, with Chater House the only significant addition
to stock. The market was more active than 2001, however,
with a number of occupiers taking the opportunity of a
competitive market to upgrade the location and quality of
their premises and landlord.
We secured a significant percentage of these relocating
tenants and signed over 40 new office tenants during the
course of the year, representing 176,000 s.f. of lettable
area. This encouraging performance enabled us to
increase our market share of let space and to hold
vacancy steady in our Central portfolio excluding Chater
House. Including Chater House on its completion, our
overall office vacancy in Central at year end rose to
11%.
Our retail portfolio saw a stronger performance. Not
only was the retail component of Chater House 100% pre-
let on completion and launched with great success in the
second half of the year, but our retail portfolio as a
whole completed the year fully let, with vacancy limited
to the areas of Alexandra House now under renovation.
This performance reflected the better trading conditions
enjoyed by the international luxury brand sector, where
our portfolio is focused.
The trading platform which we provide to our retail
tenants has been enhanced over recent years with
successive renovation and redevelopment programmes in
Prince's Building, Chater House and now Alexandra House.
The Group's ability to grow its retail revenue in the
upturn and defend it in downturn is crucially dependent
on our continuing to provide the highest quality
environment within which those tenants can showcase their
brands.
The next step in this programme of maximising the value
of our core asset base in Central will be a major
programme of renovation in the Landmark complex. This
mixed-use scheme will add lettable space; bring a
department store to the Landmark retail offering; create
a unique luxury hotel in the heart of Central; and
provide a new office tower at Landmark East. This
project will reinforce the Group's leading position in
Central, and significantly enhance the attraction of
Central as a business and leisure destination.
Other Commercial Properties
The main contract for One Raffles Quay, our joint-venture
project in Singapore, was let below budget and
construction work has started on schedule. One Raffles
Link, our existing investment in Singapore, remains fully
let, with the retail component CityLink Mall performing
well. Rents and capital values in the Singapore
commercial office market remain under pressure, with
uncertainty over the level of future supply.
In Vietnam, both of our Hanoi office buildings are fully
let, with rents stable.
Gaysorn, the retail centre in Bangkok where we have
participated in a major refurbishment, opened with great
success in the second half of the year. The centre is
now 95% let and is widely regarded as having set new
standards in Bangkok's luxury retail sector.
RESIDENTIAL PROPERTY
Following the successful sales launch in April of the
first phase of our joint-venture development in Beijing,
Central Park, Phase II of the project is likely to
commence in the second half of 2003. At our existing
Beijing residential investment, Maple Place at Beijing
Riviera, occupancy in the villas and town-houses is
running at over 80%. A phased renovation project for the
apartments is underway to improve the performance of those
units.
Sales at Roxas Triangle, our luxury apartment joint-
venture in Manila, improved over the course of the year.
In aggregate, 60% have now been sold.
Grosvenor Land, our joint-venture residential property
fund, was closed to new investors at the year end. Of its
US$70 million of committed equity, some 70% has been
invested. Eight of its nine current investments (one
Japanese investment has been sold at a profit) are in Hong
Kong. Future investments are likely to be outside Hong
Kong to balance the proportion represented by Hong Kong in
the fund.
Our small residential portfolio in Hong Kong remains fully
let, in a very competitive leasing market. To maintain
the competitiveness of our town-houses development,
Stanley Court in Island South, a renovation programme has
been drawn up for implementation in 2003. Our development
in Western District, 'Ivy on Belcher's', is under
construction, with the substructure work close to
completion. The apartments are projected to be ready for
occupation by mid-2004. Two further potential residential
developments in Hong Kong, at Victoria Road in Western
District and at Lai Sing Court in Tai Hang Road, Happy
Valley, have both successfully obtained planning approval.
Further legal and regulatory procedures need to be
completed for both projects before work can begin.
INFRASTRUCTURE
With the emphasis we are now placing on investment in our
core property business, the strategy for our
infrastructure portfolio is one of extracting value from
the existing portfolio, while minimizing further
investment.
Against this background, we have decided not to proceed
with the planned joint-ventures in Penang and Shanghai in
the logistics sector. The logistics centre for Tradeport
Hong Kong at Hong Kong International Airport was completed
on schedule and within budget just before the year end.
Marketing of this facility is now underway. In the port
sector, construction continues at the CT 9 development at
Kwai Chung in Hong Kong. The rapid improvement in
activity in 2002 at the Hong Kong container port is
encouraging for the value of this investment on its
completion in 2004.
Amongst our Mainland China investments, the China Water
Company continues to progress well. Following the
significant investment made in the business by Thames
Water, a unit of the major European utilities group RWE,
Hongkong Land's interest has been diluted to 25%. CWC's
business is already benefiting from access to Thames
Water's technical expertise.
We have been endeavouring for some time to extract value
from our 36% interest in Central China Power. Higher coal
prices, a competitive operating environment and weak
electricity tariffs have weakened the business's ability
to service its debt for some time now. At the end of
year, the business was placed in the hands of a
provisional liquidator. With no certainty of realization
of asset values in CCP and the remainder of our
infrastructure investments, the carrying values of these
investments have been provided for in our accounts.
CORPORATE DEVELOPMENTS
Although no major financings were undertaken in 2003, the
Group has continued to make significant progress in
extending the maturity of its committed debt facilities,
diversifying its lending base, and moving away from its
historical reliance on secured debt.
OUTLOOK
Our core market remains very competitive. In this
difficult environment, the Group will focus on seeking to
outperform in relative terms, and to maximise market
share. Our strong customer base and our continuing
investment in enhancing the quality of our portfolio will
enable us to maintain our leading position in Hong Kong's
Central District.
Nicholas Sallnow-Smith
Chief Executive
25th February 2003
_______________________________________________________________________________________
Hongkong Land Holdings Limited
Consolidated Profit and Loss Account
for the year ended 31st December 2002
_______________________________________________________________________________________
Prepared in accordance with
Prepared in accordance IFRS as modified by revaluation
with IFRS of leasehold properties*
2001 2002 2002 2001
US$m US$m Note US$m US$m
________________________ ___________________________
396.5 396.6 2 Revenue 396.6 396.5
(101.7) (115.1) Recoverable and non-recoverable costs (84.2) (78.2)
__________ ___________ ___________ ___________
294.8 281.5 Net income from properties 312.4 318.3
0.4 0.5 Other income 0.5 0.4
(28.8) (29.6) Administrative and other expenses (29.6) (28.8)
__________ ___________ ___________ ___________
266.4 252.4 283.3 289.9
Decrease in fair value of investment
- - properties (987.7) (598.5)
(72.1) (97.7) 3 Asset impairments and disposals (25.3) (28.9)
__________ ___________ ___________ ___________
194.3 154.7 4 Operating profit/(loss) (729.7) (337.5)
(51.7) (64.8) Net financing charges (64.8) (51.7)
5 Share of results of associates and
(0.2) (1.9) joint ventures (4.1) (0.7)
__________ ___________ ___________ ___________
142.4 88.0 Profit/(loss) before tax (798.6) (389.9)
(26.3) (27.2) 6 Tax (26.9) (26.0)
__________ ___________ ___________ ___________
116.1 60.8 Profit/(loss) after tax (825.5) (415.9)
(0.1) (0.1) Minority interests (0.1) (0.1)
__________ ___________ ___________ ___________
116.0 60.7 7 Net profit/(loss) (825.6) (416.0)
__________ ___________ ___________ ___________
_______________________ ___________________________
USc USc USc USc
_______________________ ___________________________
8 Earnings/(loss) per share
4.88 2.73 - basic (37.10) (17.49)
7.91 7.17 - underlying 8.64 8.94
_______________________ ___________________________
* The basis of preparation of this supplementary financial information is set out in Note 1.
_______________________________________________________________________________________________
Hongkong Land Holdings Limited
Consolidated Balance Sheet
at 31st December 2002
_______________________________________________________________________________________________
Prepared in accordance with
Prepared in accordance IFRS as modified by revaluation
with IFRS of leasehold properties*
2001 2002 2002 2001
US$m US$m Note US$m US$m
________________________ ___________________________
Net operating assets
9 Tangible assets
814.1 911.4 Investment properties 6,249.8 7,107.0
5.0 4.3 Others 13.0 13.8
__________ ___________ ___________ ___________
819.1 915.7 6,262.8 7,120.8
737.6 666.7 10 Leasehold land payments - -
356.4 227.3 Associates and joint ventures 246.3 377.6
17.4 3.7 Other investments 3.7 17.4
2.4 0.9 Deferred tax assets 0.9 2.4
9.4 9.4 Pension assets 9.4 9.4
__________ ___________ ___________ ___________
1,942.3 1,823.7 Non-current assets 6,523.1 7,527.6
45.0 48.1 Properties held for sale 48.1 45.0
56.2 240.9 Debtors, prepayments and others 240.9 56.2
568.6 550.6 Bank balances and other liquid funds 550.6 568.6
__________ ___________ ___________ ___________
669.8 839.6 Current assets 839.6 669.8
__________ ___________ ___________ ___________
(209.6) (219.1) Creditors and accruals (219.1) (209.6)
(502.5) (68.1) 11 Borrowings (68.1) (502.5)
(15.0) (26.9) Current tax liabilities (26.9) (15.0)
__________ ___________ ___________ ___________
(727.1) (314.1) Current liabilities (314.1) (727.1)
__________ ___________ ___________ ___________
(57.3) 525.5 Net current assets/(liabilities) 525.5 (57.3)
(1,406.6) (2,074.6) 11 Long-term borrowings (2,074.6) (1,406.6)
(12.7) (14.2) Deferred tax liabilities (16.2) (15.1)
__________ ___________ ___________ ___________
465.7 260.4 4,957.8 6,048.6
__________ ___________ ___________ ___________
Capital employed
229.5 229.5 Share capital 229.5 229.5
313.6 108.3 Revenue and other reserves 4,805.4 5,896.3
(77.7) (77.7) Own shares held (77.7) (77.7)
__________ ___________ ___________ ___________
465.4 260.1 Shareholders' funds 4,957.2 6,048.1
0.3 0.3 Minority interests 0.6 0.5
__________ ___________ ___________ ___________
465.7 260.4 4,957.8 6,048.6
__________ ___________ ___________ ___________
_______________________ _________________________
US$ US$ US$ US$
_______________________ _________________________
0.21 0.12 Net asset value per share 2.23 2.72
_______________________ _________________________
* The basis of preparation of this supplementary financial information is set out in Note 1.
_______________________________________________________________________________________________
Hongkong Land Holdings Limited
Consolidated Statement of Changes in Shareholders' Funds
for the year ended 31st December 2002
_______________________________________________________________________________________________
Prepared in accordance with
Prepared in accordance IFRS as modified by revaluation
with IFRS of leasehold properties*
2001 2002 2002 2001
US$m US$m Note US$m US$m
________________________ ________________________
974.8 465.4 At 1st January 6,048.1 7,089.8
Net exchange translation differences
(22.4) 25.8 - amount arising in the year 26.5 (22.7)
- transfer to consolidated profit and
- 3.1 loss account 3.1 -
Revaluation of other investments
(83.5) 14.2 - fair value gains/(losses) 14.2 (83.5)
- transfer to consolidated profit and
(2.4) (87.2) loss account on disposal (87.2) (2.4)
Cash flow hedges
(18.1) (46.2) - fair value losses (46.2) (18.1)
- transfer to consolidated profit and
11.1 24.6 loss account 24.6 11.1
Net losses not recognised in consolidated
(115.3) (65.7) profit and loss account (65.0) (115.6)
116.0 60.7 Net profit/(loss) (825.6) (416.0)
(215.2) (200.3) 12 Dividends (200.3) (215.2)
(294.9) - Repurchase of ordinary shares - (294.9)
_________ _________ __________ __________
465.4 260.1 At 31st December 4,957.2 6,048.1
_________ _________ __________ __________
* The basis of preparation of this supplementary financial information is set out in Note 1.
______________________________________________________________________________________________
Hongkong Land Holdings Limited
Consolidated Cash Flow Statement
for the year ended 31st December 2002
______________________________________________________________________________________________
Prepared in accordance with
Prepared in accordance IFRS as modified by revaluation
with IFRS of leasehold properties*
2001 2002 2002 2001
US$m US$m Note US$m US$m
________________________ ________________________
Cash flows from operating activities
194.3 154.7 Operating profit/(loss) (729.7) (337.5)
28.7 32.1 Depreciation and amortisation 1.2 5.2
Decrease in fair value of investment
- - properties 987.7 598.5
72.1 97.7 Asset impairments and disposals 25.3 28.9
Increase in debtors, prepayments
(0.7) (22.0) and others (22.0) (0.7)
(8.6) (0.9) Decrease in creditors and accruals (0.9) (8.6)
56.1 29.5 Interest received 29.5 56.1
(119.2) (88.8) Interest and other financing charges paid (88.8) (119.2)
(20.8) (11.5) Tax paid (11.5) (20.8)
- 2.0 Dividends received 2.0 -
201.9 192.8 192.8 201.9
Cash flows from investing activities
(21.4) (21.5) Major renovations expenditure (21.5) (21.4)
(76.5) (102.7) Developments capital expenditure (102.7) (76.5)
(112.6) (20.3) Investments in and loans to joint ventures (20.3) (112.6)
(7.9) (1.3) Purchase of other investments (1.3) (7.9)
6.4 4.0 Disposal of associates and other investments 4.0 6.4
(212.0) (141.8) (141.8) (212.0)
Cash flows from financing activities
591.2 - Net proceeds from issue of bonds - 591.2
(474.0) (618.0) Repayment of secured bank loans (618.0) (474.0)
389.2 751.9 Drawdown of unsecured bank loans 751.9 389.2
(248.4) (5.8) Repayment of unsecured bank loans (5.8) (248.4)
(307.3) - Repayment of 4% convertible bonds - (307.3)
(64.1) - Repayment of 7.625% bonds - (64.1)
(214.5) (199.3) Dividends paid by the company (199.3) (214.5)
(587.0) - Repurchase of ordinary shares - (587.0)
(914.9) (71.2) (71.2) (914.9)
0.1 0.6 Effect of exchange rate canges 0.6 0.1
_________ __________ __________ _________
(924.9) (19.6) Net decrease in cash and cash equivalents (19.6) (924.9)
1,491.1 566.2 Cash and cash equivalents at 1st January 566.2 1,491.1
_________ __________ __________ _________
566.2 546.6 Cash and cash equivalents at 31st December 546.6 566.2
_________ __________ __________ _________
_____________________ _____________________
USc USc USc USc
_____________________ _____________________
7.59 7.70 13 Cash flow per share 7.70 7.59
_____________________ _____________________
* The basis of preparation of this supplementary financial information is set out in Note 1.
_____________________________________________________________________________________________
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 2002 which have been prepared in conformity with
International Financial Reporting Standards ('IFRS'),
including International Accounting Standards and
interpretations issued by the International Accounting
Standards Board. There have been no changes to the accounting
policies described in the 2001 annual financial statements.
As explained in the 2001 annual financial statements, IFRS do
not permit the valuation of leasehold interests in land. This
treatment does not reflect the generally accepted accounting
practice in the territories in which the Group has significant
leasehold interests, nor how management measures the
performance of the Group. Accordingly, the Group has
presented supplementary financial information on pages 8 to 11
prepared in accordance with IFRS as modified by the
revaluation of leasehold properties.
2. REVENUE
Prepared in accordance
with IFRS
2002 2001
US$m US$m
______________________
By business
Property
Rental income 336.4 336.9
Service and management charges 60.2 59.6
________ ________
396.6 396.5
________ ________
By geographical area
Hong Kong 378.3 378.8
Southeast Asia 18.3 17.7
________ ________
396.6 396.5
________ ________
3. ASSET IMPAIRMENTS AND DISPOSALS
Prepared in accordance with IFRS
2002 2001
Gross Net Gross Net
US$m US$m US$m US$m
____________________ __________________
Impairment provisions on properties (72.4) (72.4) (43.2) (43.2)
Other assets provisions (50.5) (50.5) (31.3) (31.3)
Profit on disposal of associates
and investments 25.2 25.2 2.4 2.4
_________ _________ ________ _______
(97.7) (97.7) (72.1) (72.1)
_________ _________ ________ _______
By business
Property (74.6) (74.6) (44.5) (44.5)
Infrastructure (46.1) (46.1) (30.0) (30.0)
Corporate 23.0 23.0 2.4 2.4
_________ _________ ________ _______
(97.7) (97.7) (72.1) (72.1)
_________ _________ ________ _______
Gross asset impairments and disposals are shown before net
financing charges and tax. Net asset impairments and
disposals are shown after net financing charges, tax and
minority interests.
4. OPERATING PROFIT
Prepared in accordance
with IFRS
2002 2001
US$m US$m
________________________
By business
Property 274.0 287.2
Infrastructure (1.4) (1.8)
Corporate (20.2) (19.0)
________ ________
252.4 266.4
Asset impairments and disposals (see Note 3) (97.7) (72.1)
________ ________
154.7 194.3
________ ________
5. SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
Prepared in accordance
with IFRS
2002 2001
US$m US$m
______________________
By business
Property (2.1) (0.9)
Infrastructure (0.3) 0.3
Corporate 0.5 0.4
_______ ________
(1.9) (0.2)
_______ ________
6. TAX
Prepared in accordance
with IFRS
2002 2001
US$m US$m
______________________
Company and subsidiaries 26.7 25.7
Associates and joint ventures 0.5 0.6
______ ______
27.2 26.3
______ ______
Tax on profits is provided at the rates of taxation prevailing in the
territories in which the Group operates
7. NET PROFIT
The difference between net profit as shown in the financial
statements prepared in accordance with IFRS and net loss as
shown in the supplementary financial information is reconciled
as follows:
Prepared in accordance
with IFRS
2002 2001
US$m US$m
_________________________
Net profit as shown in financial statements 60.7 116.0
Depreciation of investment properties 26.1 18.2
Amortisation of leasehold land payments 6.6 6.6
Revaluation of leasehold properties net of impairment (919.3) (557.1)
Deferred tax 0.3 0.3
________ ________
Net loss as shown in supplementary financial information (825.6) (416.0)
________ ________
8. EARNINGS PER SHARE
Earnings per share are calculated on net profit of US$60.7
million (2001: US$116.0 million) and on the weighted average
number of 2,225.6 million (2001: 2,379.1 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 reflecting the revaluation of leasehold
properties are calculated on net loss of US$825.6 million
(2001: loss of US$416.0 million) as shown in the supplementary
financial information.
Additional earnings per share are also calculated based on
underlying net profit. The difference between underlying net
profit and net profit is reconciled as follows:
Prepared in accordance with
Prepared in accordance IFRS as modified by revaluation
with IFRS of leasehold properties*
2001 2002 2002 2001
US$m US$m Note US$m US$m
________________________ ________________________
116.0 60.7 Net profit/(loss) (825.6) (416.0)
- - Revaluation of leashold properties 992.7 599.8
72.1 98.8 Asset impairments and disposals 25.3 28.9
__________ ___________ ____________ ___________
188.1 159.5 Underlying net profit 192.4 212.7
__________ ___________ ____________ ___________
9. TANGIBLE ASSETS AND CAPITAL COMMITMENTS
Prepared in accordance
with IFRS
2002 2001
US$m US$m
_______________________
Tangible assets
Net book value at 1st January 819.1 741.2
Exchange rate adjustments 8.0 (8.5)
Additions 118.7 116.1
Depreciation (26.4) (22.6)
Transfer - (0.7)
Release of contingency (3.7) (6.4)
_________ ________
Net book value at 31st December 915.7 819.1
_________ ________
Capital commitments 434.4 639.1
_________ ________
10. LEASEHOLD LAND PAYMENTS
Prepared in accordance
with IFRS
2002 2001
US$m US$m
_______________________
Net book value at 1st January 737.6 798.2
Exchange rate adjustments 7.5 (10.6)
Amortisation (5.7) (6.1)
Impairment (72.7) (42.7)
Transfer - (1.2)
________ _________
Net book value at 31st December 666.7 737.6
________ _________
By nature
Investment properties 658.2 729.0
Other properties 8.5 8.6
________ _________
666.7 737.6
________ _________
11. BORROWINGS
Prepared in accordance
with IFRS
2002 2001
US$m US$m
___________________________
Current
Bank overdrafts 4.0 2.4
Short-term borrowings 38.5 38.4
Current portion of long-term borrowings 25.6 461.7
68.1 502.5
Long-term borrowings
Bank loans 1,389.0 810.5
7% bonds - 2001/2011 685.6 596.1
2,074.6 1,406.6
________ ________
2,142.7 1,909.1
________ ________
The 7% bonds due 2011 are listed on the Luxembourg Stock Exchange.
12. DIVIDENDS
Prepared in accordance
with IFRS
2002 2001
US$m US$m
_________________________
Final dividend in respect of 2001 of USc5.50
(2000: USc5.50) per share 122.4 131.5
Interim dividend in respect of 2002 of USc3.50
(2001: USc3.50) per share 77.9 83.7
________ ________
200.3 215.2
________ ________
A final dividend in respect of 2002 of USc4.00 (2001: USc5.50)
per share amounting to a total of US$89.0 million (2001:
US$122.4 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 2003.
13. CASH FLOW PER SHARE
Cash flow per share is based on cash flows from operating
activities less major renovations expenditure amounting to
US$171.3 million (2001: US$180.5 million) and is calculated on
the weighted average number of 2,225.6 million (2001: 2,379.1
million) shares in issue during the year, which excludes 69.6
million shares in the Company held by a wholly-owned
subsidiary.
14. CONTINGENT LIABILITIES
Prepared in accordance
with IFRS
2002 2001
US$m US$m
________________________
Guarantees in respect of
- facilities made available to joint ventures 30.1 -
- Container Terminal 9 development in Hong Kong 78.1 93.3
_______ _______
The final dividend of USc4.00 per share will be payable on
14th May 2003, subject to approval at the Annual General
Meeting to be held on 7th May 2003, to shareholders on the
register of members at the close of business on 14th March
2003. The ex-dividend date will be on 12th March 2003, and
the share registers will be closed from 17th to 21st March
2003, 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 25th April 2003. The Sterling equivalent of
dividends declared in United States Dollars will be calculated
by reference to a rate prevailing on 30th April 2003.
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.
- end -
For further information,
please contact:
Hongkong Land Limited
N R Sallnow-Smith (852) 2842 8300
Francis Heng (852) 2842 8400
Matheson & Co Limited (44) 20 7816 8135
Martin Henderson
Golin/Harris Forrest
C T Hew (852) 2501 7963
Weber Shandwick Square Mile (44) 20 7067 0700
Richard Hews/ Christian San Jose
Full text of the Preliminary Announcement of Results and the
Preliminary Financial Statements for the year ended 31st
December 2002 can be accessed through the Internet at
'www.hkland.com'.
NOTE TO EDITORS
Hongkong Land is a leading property investment, management and
development group with a major portfolio in Hong Kong and with
other property and infrastructure interests in Asia.
Hongkong Land Holdings Limited is incorporated in Bermuda with
its primary share listing in London. The Company's shares are
also listed in Singapore and Bermuda. In addition, it has a
sponsored American Depositary Receipt programme. Hongkong
Land is a member of the Jardine Matheson Group.
Hongkong Land Limited manages the operations of the Group from
Hong Kong and provides services to Hongkong Land China
Holdings Limited, Hongkong Land International Holdings Limited
and Hongkong Land Infrastructure Holdings Limited:
- Hongkong Land China Holdings Limited owns and manages
some five million sq. ft of prime office and retail space in
the heart of Hong Kong's Central business district and is
developing a range of property activities in Hong Kong and
Mainland China.
- Hongkong Land International Holdings Limited is
establishing a portfolio of property projects elsewhere in
Asia.
- Hongkong Land Infrastructure Holdings Limited holds
infrastructure investments in Hong Kong, Mainland China and a
number of countries in Asia.
This information is provided by RNS
The company news service from the London Stock Exchange
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