2025 PRELIMINARY RESULTS

Hongkong Land Hldgs Ltd

05 March 2026

 

Announcement

5 March 2026

The following announcement was issued today to a Regulatory Information Service approved by the Financial Conduct Authority in the United Kingdom.

HONGKONG LAND HOLDINGS LIMITED

2025 PRELIMINARY ANNOUNCEMENT OF RESULTS

Highlights

·    Strong momentum on Strategic Vision 2035 transformation

·    Cumulative capital recycled reached US$3.6 billion, 90% of 2027 target

·    Net debt significantly reduced, primed to capture growth opportunities

·    Total Prime Properties portfolio valuation up 3% net of disposals

·    Adjusted free cash flow remained strong despite lower contributions from Hong Kong

·    Full-year dividend at US¢25.0 per share, up 9%

"2025 was a landmark year for Hongkong Land.  The Group made significant progress on the initial phases of execution of its new strategy, having delivered on a number of portfolios recycling initiatives, evolving our capital allocation framework to focus on creating shareholder value, and establishing its inaugural private real estate fund.

Overall trading performance for the year was solid despite underlying profits being impacted by lower contributions from Hong Kong.  The Group continues to wind-down its build-to-sell business with lower profits in 2025 and impairment of Chinese mainland inventory amidst challenging market conditions.  We expect underlying results to remain largely unchanged in 2026, with future growth to come from improved market sentiment in Hong Kong, a growing Chinese mainland portfolio and the Singapore fund management business.

The Group's financial position remains strong and is well positioned to take advantage of potential new investment opportunities in selected Asia gateway cities."

Michael T. Smith

Chief Executive

Results

Year ended 31 December
	2025 US$m	2024 US$m	Change %
Underlying profit attributable to shareholders(1)(2)(3)	458	499	-8
Adjusted free cash flow(4)	810	808	-
Profit/(loss) attributable to shareholders	1,263	(1,385)	N/A
Shareholders' funds	30,798	29,940	+3
Net debt	3,577	5,088	-30
	US¢	US¢	%
Underlying earnings per share(1)(2)(3)	20.98	22.60	-7
Adjusted free cash flow per share(4)	37.08	36.62	+1
Profit/(loss) per share	57.85	(62.76)	N/A
Dividends per share	25.00	23.00	+9
	US$	US$	%
Net asset value per share	14.30	13.57	+5
(1)  The Group uses 'underlying profit attributable to shareholders' in its internal financial reporting to distinguish between ongoing business performance and non-trading items, as more fully described in Note 30 to the financial statements. (2)  In light of the Group's announced strategic pivot to exit the build-to-sell business, contributions from this segment has been reclassified as non-trading. Underlying Profit represents results from prime properties investment.  Refer to Note 1 of the financial statements for further details on the impact of this reclassification for FY 2024 and FY 2025. (3)  FY 2025 earnings contributions from prime properties investment and build-to-sell segments, excluding Chinese mainland inventory provisions, amounted to US$585 million or US¢26.78 per share. (4)  Cash flows from operating activities adjusted to include maintenance capital expenditure and net cash flows from build-to-sell segment associates and joint ventures.  The metric excludes net proceeds from capital recycling via disposals.

The final dividend of US¢19 per share will be payable on 13 May 2026, subject to approval at the Annual General Meeting to be held on 7 May 2026, to shareholders on the registers of members at the close of business on 20 March 2026.

HONGKONG LAND HOLDINGS LIMITED

PRELIMINARY ANNOUNCEMENT OF RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Dear Shareholders,

After the Group's announcement in 2024 of a new strategic direction setting out clear and ambitious 10-year growth objectives and targets to deliver enhanced shareholder value,  2025 was a year of transformation and building execution momentum focused on evolving Hongkong Land's business model.

Given the size and diversity of the Group's portfolio, execution of the new strategy is expected to involve several implementation phases.  The initial phase of execution focusses on the recycling of capital and establishment of deal sourcing and fundraising capabilities, with further phases involving the securing third-party capital and deployment of capital into prime properties investment opportunities.  

We are encouraged by the strong endorsement from shareholders on our strategic execution to date - total shareholder return based on 2025 volume-weighted average price compared to the prior year was over 60%.

I am pleased with the progress we have made, although there remains more to do to position the Group to deliver on our long-term growth ambitions.

EXCELLENT PROGRESS in 2025

In October 2024, the Board endorsed a new strategic direction for Hongkong Land.  Since then, the Group has delivered a number of significant milestones:

·      US$3.6 billion in capital recycling initiatives announced or completed

·      Wind down of nearly 40% of the build-to-sell business including the divestment of the Group's business in Singapore and Malaysia

·      Creation of an investment management team

·      Establishment of the Group's inaugural private real estate fund - the Singapore Central Private Real Estate Fund ('SCPREF')

In line with the Group's refreshed capital allocation framework, at least 80% of net proceeds from its US$10 billion capital recycling program are to be reinvested in new growth opportunities and subject to market conditions up to 20% in the buy-back and cancellation of its own shares, improving long-term shareholder returns. Since April 2025, the Group has invested over US$330 million in share buybacks and reduced shares in issuance by 2.4%. The Group also continues to increase dividends per share from US¢22.0 in 2023 to US¢25.0 in 2025, with an aim of reaching its long-term goal of US¢44.0 by 2035.

BOARD & GOVERNANCE

The Board and its Committees, and senior management, together play a key role in delivering against our priorities. The effective delivery of our strategy depends on high quality debate around the boardroom table.  As management continues to focus on growing shareholder value and returns, the Board aims to provide both challenge and support, with effective discussion and decision-making.

We especially value the opportunity to leverage the industry expertise and experience of the Company's Non-Executive Directors.

In November, we were delighted to welcome Alan Miyasaki as an Independent Non-Executive Director and as a member of the Investment and Audit Committees. Alan is a Senior Managing Director and Head of Real Estate Asia Acquisitions at Blackstone, and has helped drive the establishment and growth of Blackstone's Real Estate business in Asia since 2007.

We were also delighted to welcome Lincoln Pan, Chief Executive Officer of Jardine Matheson Holdings Limited, the Company's parent, to the Board as a Non-Executive Director.  Lincoln was previously at PAG, the largest fully diversified alternative investment business in the Asia Pacific region, where he was a Partner and co-head of Private Equity and a member of the Group Executive Committee.

These appointments reflect our ongoing focus on enhancing governance, as we continue to strengthen the composition of our Board and Committees, improving decision-making and bringing in relevant expertise to support management as they execute the Group's strategy and build long-term shareholder value.

Stuart Grant stepped down from the Board and Audit Committee in May to join Hongkong Land in an executive capacity as Chief Executive, Westbund Central based in Shanghai.  Stuart is well placed to provide dedicated leadership on the execution of this iconic development, having spent 18 years at Blackstone as Senior Managing Director of their Asian real estate business.

SUSTAINABILITY

The Group advanced its sustainability leadership, translating this into tangible business outcomes including responsible investment, enhanced asset resilience and strategic partnerships with our tenants and supply chain.

We were recognised again by the Global Real Estate Sustainability Benchmark (GRESB) as Global Sector Leader (Diversified) for Development Benchmark and Global Listed Sector Leader (Diversified - Office/Retail) for Standing Investments Benchmark. These independent benchmarks reinforce our competitive positioning in core Asian gateway markets and support investor demand across private capital and public markets with positive implications for long-term shareholder value.

The Group demonstrated its responsible investment commitment by becoming a signatory to the United Nations Principles for Responsible Investment - an international organisation that works to promote ESG factors within investment decision-making. We launched our first private real estate fund - SCPREF which focuses on ultra‑premium, green‑certified assets in Singapore - aligning capital allocation with decarbonisation pathways and long‑duration cash flows.

Execution against our 2030 science‑based targets remained on track in 2025. Absolute Scope 1 and 2 emissions were reduced by 37% against a 2019 baseline. Our integrated decarbonisation programme - renewable energy procurement, targeted efficiency projects, and an AI‑powered Integrated Facility Management Control Tower - continues to lower operating costs, reduce volatility, and extend the economic life of our assets.

We also piloted Hong Kong's first tempered and laminated glass recycling solution at Tomorrow's CENTRAL, supporting a 75% waste diversion target and reducing embodied‑carbon intensity in future fit‑outs. These initiatives differentiate our developments for occupiers seeking credible sustainability solutions.

Tenant engagement deepened through the enhanced Sustainability Partnership Programme at our Central Portfolio. By driving deeper collaboration and measurable sustainability outcomes with tenants, we are improving retention and protecting rental reversion potential across the portfolio.

To embed long‑term, measurable community partnerships into our strategy, we launched the Hongkong Land Foundation. In 2025, we contributed over 9,800 volunteer hours, benefiting more than 70,000 people. We are deeply saddened by the tragic fire in Tai Po and extend our heartfelt sympathies to the victims, their families, and all those affected. Through the Hongkong Land Foundation, we have donated HK$10 million to the Government announced fund for emergency relief and HK$800,000 to The Hong Kong Federation of Youth Groups for assisting affected students with essential supplies to help them resume their education.

Looking ahead, we will continue to integrate sustainability into investment decision making, development design, supply chain, and building operations. This approach supports growth of a high performing, sustainable and resilient portfolio mix aligned with our 2035 strategy.

OUTLOOK

The successful execution of multiple initiatives over the past year represents meaningful steps forward in delivering the early phases of our strategy, as we continue transforming Hongkong Land into a more disciplined, capital efficient and growth-oriented company.  While there remains much to do, I am confident we will maintain our strong execution momentum and renewed focus on creating shareholder value into 2026 and beyond.

Despite uncertain macro conditions in a number of the Group's key markets, I am confident that our strategic focus on ultra-premium integrated commercial assets in Asia gateway cities will continue to benefit from global flight to quality trends, and deliver sustainable growth over the long-term.

On behalf of the Board, I would like to express my appreciation to our shareholders for their continued support and endorsement of the Group's new strategic direction and execution to date.  I would also like to thank our valued partners and the wider community for your continued trust and support.  Finally, I would like to thank our people for their ongoing dedication and professionalism in providing high quality services and offerings to our tenants and customers, as well as for their commitment in driving the Group's success.

John Witt

Chairman

CHIEF EXECUTIVE'S REVIEW

2025 was a landmark year for Hongkong Land, as we took significant steps to reshape our business and build investment capacity to advance our ambition to become the leader in Asia's ultra‑premium integrated commercial property sector. While operating conditions remained challenging in some market segments, we delivered on several significant capital recycling initiatives, established our inaugural private real estate fund, continued to drive operational excellence across our core portfolios, and proactively managed costs to further strengthen our financial position.

Building on the strategic clarity outlined in our Strategic Vision 2035, we focused our efforts on simplifying the Group's portfolio, improving capital efficiency, and strengthening the foundations for long‑term growth. Our disciplined execution - ranging from asset divestments to working with third-party capital partners and re-investing in our portfolio anchors - demonstrated both the scarcity and resilience of our portfolios and our commitment to positioning the business for the future.

DELIVERING ON OUR STRATEGIC PRIORITIES

Capital Recycling

We made substantial progress on capital recycling in 2025. Completed or announced net proceeds recycled as at the end of February 2026 totalled US$3.6 billion, including the disposal of certain floors of One Exchange Square to the Hong Kong Stock Exchange (US$0.8 billion), the recycling from the build-to-sell segment and other assets (MCL Land: US$0.7 billion; Chinese mainland & others: US$0.8 billion), as well as the formation of the Singapore Central Private Real Estate Fund ('SCPREF') and resulting disposal of our 33⅓% interest in Marina Bay Financial Centre Tower 3 ('MBFC Tower 3') in Singapore (US$1.3 billion). This represents 90% of our target to recycle at least US$4 billion by the end of 2027.

Wind Down of Build-to-Sell Business

In line with its announced strategic pivot, the Group no longer pursues investments in its build-to-sell segment, and is focused on accelerating the return of capital via divestments and inventory sales. During the year, the Group made considerable progress in recycling capital from its build-to-sell portfolio, realising some US$800 million from inventory sales primarily from the Chinese mainland.

In October, the Group also completed its exit from the Singapore and Malaysia build-to-sell business via the divestment of MCL Land to Sunway Group. The transaction was undertaken at net asset value, with net proceeds recycled amounting to over US$650 million.

On the Chinese mainland, the Group took proactive steps to accelerate the return of capital from its build-to-sell portfolio, despite market conditions remaining difficult during the year.  An organisational restructuring was initiated to optimise resourcing to retain expertise and ensure committed projects are completed to the Group's usual high standards.  The restructuring has resulted in around US$15 million in cost savings for 2025, and is expected to result in annual savings of approximately US$50 million by 2028.

As a result of deteriorating market conditions on the Chinese mainland, the Group undertook a thorough review of the carrying value of its build-to-sell inventory at year-end. In order to drive sales velocity and align pricing to accelerate the return of capital, the Group recognised non-cash provisions of US$372 million (post tax) on selected projects where realisable selling prices have fallen below development cost.

Shareholder Returns

Net proceeds from capital recycling transactions have improved shareholder returns and strengthened our balance sheet, building significant capacity for new potential investment opportunities and investment in share buybacks. 

We continued to enhance shareholder value through an active share buyback programme financed by the proceeds from our capital recycling initiatives. Total share buyback invested up to the end of February 2026 amounted to over US$330 million, reducing our issued share capital by 2.4% and delivered accretive returns to shareholders.

The buybacks together with an increase in dividends per share, from US¢23.0 in 2024 to US¢25.0 in 2025, reflect our confidence in the Group's strategic direction and long-term prospects, and we expect to continue deploying recycled capital into buybacks where valuations are attractive.

Third Party Capital

In February 2026, the Group announced the establishment of its first private real estate fund - SCPREF with US$6.4 billion of assets under management ('AUM') with Qatar Investment Authority and APG Asset Management as founding investors.  SCPREF was seeded with some of Singapore's highest-quality commercial real estate assets, including equity interests in One Raffles Quay, Marina Bay Financial Centre Towers 1 and 2, One Raffles Link and Asia Square Tower 1, representing 2.6 million sq. ft of effective net lettable area.

The fund represents a significant milestone in the execution of the Group's strategy to build a scalable third-party capital platform, broadening our investor base, and diversifying income through fee-based revenues.  As the manager of SCPREF, the Group intends to pursue growth opportunities of prime commercial properties focusing on the Marina Bay and Orchard Road districts. 

AN OVERVIEW OF OUR RESULTS

Underlying profits were lower than the prior year, primarily due to lower contributions from the Hong Kong Central Portfolio.  Rental reversions for Hong Kong office were negative during the year, although leasing sentiment saw steady improvement on the back of a recovery in capital market activity.  The Hong Kong retail portfolio saw temporary impact to rental income from the ongoing Tomorrow's CENTRAL transformation.  This was partially offset by a strong performance from Singapore office, driven by effectively full occupancy and positive reversions.

Hong Kong

The Group's Central office portfolio remains firmly positioned amongst some of the most sought-after prime office space in the market, having continuing to benefit from the global flight to quality trend despite subdued market sentiment in recent years. Leasing momentum improved steadily throughout the year, with significant increase in enquiry levels driven by the recovering capital market sentiment and a robust IPO pipeline. Vacancy on a committed basis declined to 6.0% by year-end, compared to 7.1% at the end of 2024. Average rents during the year declined by 7% to HK$94 per sq. ft.  The weighted average lease expiry of the office portfolio at the end of 2025 remained healthy at 3.6 years.

The LANDMARK retail portfolio demonstrated strong resilience, with contributions declining by only 8% compared to the prior year despite over one-third of lettable space under renovation during the year. Overall customer spending in 2025 declined marginally compared to the prior year but remained the fourth highest over the past decade. The ultra-high-net-worth segment also remained strong, with top-tier customer spending increasing 8% compared to prior year, reflecting the continued appeal of LANDMARK as Hong Kong's premier luxury destination. Average rents increased by 12% in 2025 to HK$236 per sq. ft, due to positive rental reversions and a number of new long-term leases becoming effective during the year. Excluding the impact of ongoing renovations, LANDMARK remained effectively fully occupied.

Singapore

The Group's Singapore office portfolio delivered a solid performance during the year, supported by tight supply dynamics and sustained flight-to-quality demand in the central business district. Vacancy on a committed basis at the Group's office portfolio was 2.7% at the end of 2025. Average rents in 2025 increased to S$11.5 per sq. ft from S$11.1 per sq. ft in 2024 due to the positive rental reversions.

The Group's economic interest in its Singapore portfolio changed in February 2026 with the establishment of SCPREF. MBFC Tower 3 was sold at above its fair market value with net proceeds of US$0.7 billion received on 31 December 2025. The Group now has a circa 50% investment in SCPREF and will earn management fees in its capacity as the fund manager.

Chinese Mainland & Macau

Contributions were lower this year mainly due to pre-opening costs incurred for a number of pipeline projects on the Chinese mainland expected to launch from 2027 onwards, and lower rents in Macau due to ongoing renovation works and planned tenant movements.

Build-to-Sell

As the Group had moderated its pace of land banking since 2022 and no longer deploys capital into new projects, earnings from the build-to-sell segment is expected to continue declining as capital is recycled from the portfolio. Excluding non-cash provisions recognised at year-end, contributions declined by 44% to US$127 million in 2025.

To improve transparency of the Group's earnings, the build-to-sell segment has been reclassified as a non-trading item, as the portfolio is no longer an area of strategic focus for the Group.

Portfolio Valuations

As at 31 December 2025, the total valuation of the Group's portfolio of Prime Properties Investment increased by 3% from the end of 2024.  In Hong Kong, the Central portfolio valuation increased for the first time since market rents began to decline in 2019, primarily due to higher market rents for the LANDMARK, as well as stable cap rates and market rents for office. Valuations of the Singapore and Westbund Central portfolios also increased in the year, reflecting improved rental outlooks. Valuations for the Group's investment properties portfolio across other regions remained broadly unchanged.

In line with its new strategic focus on developing and managing prime commercial assets, the Group has reclassified its assets previously held for medium-term lease portfolio from the build-to-sell segment to investment properties. This portfolio comprises, both existing and under development, lifestyle retail, office, and residential assets on the Chinese mainland.  The Group's attributable interest in this portfolio amounted to US$3.8 billion as at year-end. As these assets now form part of investment properties, they will be fair market valued every six months.

The Group's AUM reflects gross asset values (on a 100% basis) of leasing assets under the Prime Properties Investment segment in which the Group acts as asset manager and retains an equity stake.  At the end of February 2026, the Group's AUM reached US$50 billion, benefiting from the establishment of SCPREF and higher investment properties valuation.

PROGRESS ON MAJOR PORTFOLIO INITIATIVES

The Group's development pipeline reflects our strategic pivot toward ultra-premium commercial properties in Asia gateway cities and positions us for significant future rental growth as assets reach completion and stabilisation.

In Hong Kong, substantial progress was made on the Tomorrow's CENTRAL transformation of LANDMARK. In addition to the opening of Sotheby's flagship retail space in 2024, another two of the ten flagship Maisons were opened in late 2025. The new Prada flagship is the brand's largest Asia Pacific boutique, spanning three floors and approximately 14,000 sq. ft of retail space. Saint Laurent has its stunning duplex flagship store prominently located on Queen's Road Central. These openings provide a glimpse of the future of luxury retail in LANDMARK. Upon completion, LANDMARK will house 10 world-class multi-storey Maison destinations, over 200 retail stores and around 100 F&B concepts, meeting luxury tenants' demand for expanded experiential retail space to serve our deep pool of loyal and discerning customers. Tomorrow's CENTRAL is just one example of how we work with our partners - our willingness to invest in our own properties to unlock greater value for our tenants to ensure we both achieve sustainable growth over the long-term.

Our flagship Westbund Central development in Shanghai reached several key milestones in 2025. Phase 2 of the project has a total GFA of 168,000 sq. m. comprising four Grade-A office towers, rental apartments, and retail space. The office component with a total GFA of 78,000 sq. m. has been fully committed, with anchor tenants progressively taking possession - including the Adidas and lululemon.  Over 170 units of rental apartments were launched in October 2025 and were over 50% occupied by year-end. Finally, the lifestyle-focused retail component of Phase 2 is on track to open in mid-2026 having already achieved a pre-leasing rate of over 75%.

Other retail-led mixed-use projects in Suzhou and Chongqing also made steady progress, with openings currently scheduled in 2027. These developments will introduce new CENTRAL series destinations with integrated luxury retail offerings, enhancing the Group's long-term presence in key Chinese mainland markets.

2026 OUTLOOK

While the positive market momentum in Hong Kong and Singapore are likely to continue into 2026, trading conditions on the Chinese mainland is expected to remain challenging.

For 2026, the rental reversions for the Hong Kong office portfolio will remain negative, although the magnitude of decline is expected to narrow as market rents return to mild growth. While rents for best-in-class buildings in Central have already stabilised with vacancies on a declining trend, the positive impact on rental income will unfold steadily as leases expire and rents revert to market levels.  Operations at LANDMARK will continue to be affected by Tomorrow's CENTRAL transformation, but positive rental reversions are expected from the phased opening of new Mansions and other new concepts. The Group also intends to pursue growth opportunities in Singapore via SCPREF, as well as to manage costs and improve operating efficiency of existing portfolios. Overall, we expect 2026 underlying profits to remain largely unchanged compared to the prior year.

LOOKING FORWARD

Looking ahead, the Group remains relentlessly focused on executing its strategy and progressing towards its long-term objectives.  Having established deal sourcing and fundraising capabilities, as well as its inaugural private real estate fund, the Group is actively assessing both new integrated commercial property projects, as well as acquisition opportunities to grow SCPREF.  Efforts to recycle capital from selective parts of the Group's balance sheet and generate cash from the sale of build-to-sell inventory will continue, further increasing new investment capacity. As we enter the next phase of our multi‑year journey, we will continue to ensure the Group maintains a strong financial position, as well as a disciplined and consistent approach to capital allocation.

2026 will also be an important year to maintain the strong momentum built on initiatives to grow our portfolio anchors, including Tomorrow's CENTRAL in Hong Kong, and progressively launching the Group's pipeline of ultra-premium properties currently under development - such as Westbund Central in Shanghai.

We take pride in delivering outstanding services and products to our tenants and customers by upholding the highest quality standards in the design, operation, and sustainability performance of our properties. These core values have served as the foundation of Hongkong Land's long-term success.  With a clear strategy, a high-quality portfolio, and a robust financial position, our focus continues to be fixed on delivering value and growth.   

Michael T. Smith

Chief Executive

Hongkong Land Holdings Limited Consolidated Profit and Loss Account for the year ended 31 December 2025
						2025												2024
		Underlying business performance US$m				Non- trading items US$m				Total US$m				Underlying business performance US$m re-presented	*			Non- trading items US$m re‑presented	*			Total US$m
Revenue (note 2)		1,048.3				400.0				1,448.3				1,087.2				914.9				2,002.1
Net operating costs   (note 3)		(427.0)				(642.8)				(1,069.8)				(393.3)				(1,032.9)				(1,426.2)
Change in fair value of investment properties   (note 10)		-				514.2				514.2				-				(1,887.6)				(1,887.6)
Operating profit/(loss)   (note 4)		621.3				271.4				892.7				693.9				(2,005.6)				(1,311.7)
Net financing charges
- financing charges		(212.5)				(5.1)				(217.6)				(238.5)				(6.5)				(245.0)
- financing income		41.3				13.3				54.6				44.9				33.9				78.8
		(171.2)				8.2				(163.0)				(193.6)				27.4				(166.2)
Share of results of associates and joint ventures   (note 5)
- before change in fair value of investment
properties		91.6				231.0				322.6				90.4				24.6				115.0
- change in fair value of
investment properties		-				386.6				386.6				-				139.2				139.2
		91.6				617.6				709.2				90.4				163.8				254.2
Profit/(loss) before tax		541.7				897.2				1,438.9				590.7				(1,814.4)				(1,223.7)
Tax (note 6)		(80.8)				(92.3)				(173.1)				(89.4)				(62.7)				(152.1)
Profit/(loss) after tax		460.9				804.9				1,265.8				501.3				(1,877.1)				(1,375.8)
Attributable to:
Shareholders of the Company		458.2				805.2				1,263.4				498.6				(1,883.5)				(1,384.9)
Non-controlling interests		2.7				(0.3)				2.4				2.7				6.4				9.1
		460.9				804.9				1,265.8				501.3				(1,877.1)				(1,375.8)
		US¢								US¢				US¢								US¢
Earnings/(loss) per share (note 8)
- basic		20.98								57.85				22.60								(62.76)
- diluted		20.92								57.69				22.58								(62.76)

* Further details are set out in note 1

Hongkong Land Holdings Limited Consolidated Statement of Comprehensive Income for the year ended 31 December 2025
					2025 US$m								2024 US$m
Profit/(loss) for the year					1,265.8								(1,375.8)
Other comprehensive income/(expense)
Items that will not be reclassified to profit
or loss:
Remeasurements of defined benefit plans					0.4								0.3
Tax on items that will not be reclassified					(0.1)								-
					0.3								0.3
Items that may be reclassified subsequently
to profit or loss:
Net exchange translation differences
- net gain arising during the year					64.4								75.2
- transfer to profit and loss					(10.4)								3.2
					54.0								78.4
Cash flow hedges
- net (loss)/gain arising during the year					(7.9)								12.2
- transfer to profit and loss					6.4								(3.2)
					(1.5)								9.0
Tax relating to items that may be
reclassified					1.7								(1.5)
Share of other comprehensive income/
(expense) of associates and joint ventures					302.7								(246.3)
					356.9								(160.4)
Other comprehensive income/(expense)
for the year, net of tax					357.2								(160.1)
Total comprehensive income/(expense)
for the year					1,623.0								(1,535.9)
Attributable to:
Shareholders of the Company					1,616.6								(1,542.4)
Non-controlling interests					6.4								6.5
					1,623.0								(1,535.9)

Hongkong Land Holdings Limited Consolidated Balance Sheet at 31 December 2025
				2025 US$m						2024 US$m
Net operating assets
Fixed assets				255.8						203.2
Right-of-use assets				113.4						104.4
Investment properties (note 10)				24,874.2						24,759.9
Associates and joint ventures (note 11)				7,954.3						10,046.2
Non-current debtors				11.8						11.5
Deferred tax assets				51.2						53.5
Pension assets				1.0						0.9
Non-current assets				33,261.7						35,179.6
Properties for sale				1,014.5						2,359.7
Current debtors				354.0						349.0
Current tax assets				38.6						36.4
Bank balances				2,552.0						1,073.4
Assets classified as held for sale (note 12)				2,836.6						54.3
Current assets				6,795.7						3,872.8
Current creditors				(1,420.1)						(1,642.4)
Current borrowings (note 13)				(305.6)						(823.7)
Current tax liabilities				(91.2)						(110.4)
Liabilities classified as held for sale (note 12)				(17.9)						-
Current liabilities				(1,834.8)						(2,576.5)
Net current assets				4,960.9						1,296.3
Long-term borrowings (note 13)				(5,836.1)						(5,341.6)
Deferred tax liabilities				(312.3)						(249.9)
Non-current creditors				(1,241.0)						(915.9)
				30,833.2						29,968.5
Total equity
Share capital				215.9						220.7
Revenue and other reserves				30,582.5						29,719.4
Shareholders' funds				30,798.4						29,940.1
Non-controlling interests				34.8						28.4
				30,833.2						29,968.5

Hongkong Land Holdings Limited Consolidated Statement of Changes in Equity for the year ended 31 December 2025
	Share capital US$m		Capital reserves US$m		Revenue reserves US$m		Hedging reserves US$m		Exchange reserves US$m		Attributable to shareholders of the Company US$m		Attributable to non- controlling interests US$m		Total equity US$m
2025
At 1 January	220.7		1.4		30,430.6		(57.8)		(654.8)		29,940.1		28.4		29,968.5
Total comprehensive income	-		-		1,263.7		(14.2)		367.1		1,616.6		6.4		1,623.0
Dividends paid by the Company (note 9)	-		-		(505.5)		-		-		(505.5)		-		(505.5)
Share-based incentives	-		7.3		-		-		-		7.3		-		7.3
Shares purchased for share-based incentives	-		-		(22.1)		-		-		(22.1)		-		(22.1)
Repurchase of shares	(4.8)		-		(277.4)		-		-		(282.2)		-		(282.2)
Sales of untraceable shares	-		-		44.2		-		-		44.2		-		44.2
At 31 December	215.9		8.7		30,933.5		(72.0)		(287.7)		30,798.4		34.8		30,833.2
2024
At 1 January	220.7		-		32,299.5		(57.7)		(497.1)		31,965.4		21.9		31,987.3
Total comprehensive expense	-		-		(1,384.6)		(0.1)		(157.7)		(1,542.4)		6.5		(1,535.9)
Dividends paid by the Company (note 9)	-		-		(485.5)		-		-		(485.5)		-		(485.5)
Share-based incentives	-		1.4		-		-		-		1.4		-		1.4
Unclaimed dividends forfeited	-		-		1.2		-		-		1.2		-		1.2
At 31 December	220.7		1.4		30,430.6		(57.8)		(654.8)		29,940.1		28.4		29,968.5

Hongkong Land Holdings Limited Consolidated Cash Flow Statement for the year ended 31 December 2025
			2025 US$m				2024 US$m
Operating activities
Operating profit/(loss)			892.7				(1,311.7)
Change in fair value of investment properties			(514.2)				1,887.6
Depreciation			14.1				12.7
Change in fair value of derivatives			65.8				-
Exchange reserve loss realised on distribution			9.0				7.6
Loss on disposal of investment properties			5.1				10.3
Loss on measurement of the disposal group			-				13.5
Net gain on disposal of subsidiaries and joint ventures			(0.1)				(9.6)
Net gain on reclassification from properties for sale to
investment properties			(147.9)				-
Decrease in properties for sale			618.7				752.1
(Increase)/decrease in debtors			(16.4)				86.7
Decrease in creditors			(190.9)				(547.9)
Interest received			39.9				65.3
Interest and other financing charges paid			(217.2)				(245.8)
Tax paid			(117.9)				(147.3)
Dividends from associates and joint ventures			143.7				97.1
Cash flows from operating activities			584.4				670.6
Investing activities
Major renovations expenditure			(164.2)				(78.5)
Repayments from associates and joint ventures			272.8				259.2
Investments in associates and joint ventures			(28.5)				(16.9)
Advances to associates and joint ventures			(21.6)				(111.5)
Disposal of subsidiaries			539.7				-
Disposal of joint ventures			701.1				-
Acquisition of a subsidiary			-				13.8
Proceeds and deposits of disposal of investment properties			368.2				15.5
Cash flows from investing activities			1,667.5				81.6
Financing activities
Drawdown of borrowings			1,615.7				2,371.0
Repayment of borrowings			(1,739.9)				(2,737.3)
Repayments to associates and joint ventures			(16.2)				(26.6)
Advances from associates and joint ventures			121.9				95.5
Principal elements of lease payments			(2.6)				(2.7)
Dividends paid by the Company			(502.6)				(478.2)
Purchase of shares of share-base incentives			(22.1)				-
Repurchase of shares			(279.3)				-
Sale of untraceable shares			44.2				-
Cash flows from financing activities			(780.9)				(778.3)
Net cash inflow/(outflow)			1,471.0				(26.1)
Cash and cash equivalents at 1 January			1,067.2				1,112.2
Effect of exchange rate changes			25.9				(18.9)
Cash and cash equivalents at 31 December			2,564.1				1,067.2

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 31 December 2025 which have been prepared in accordance with International Financial Reporting Standards, including International Accounting Standards ('IAS') and Interpretations as issued by the International Accounting Standards Board ('IASB').

There are no amendments which are effective in 2025 and relevant to the Group's operations that have a significant impact on the Group's results, financial position and accounting policies. 

The Group has not early adopted any standard, interpretation or amendment that has been issued but not yet effective.

Change in accounting policy

Following the strategic shift in the business direction to wind down the build-to-sell segment, certain operations and assets within this segment have been identified as non-strategic, while others have been reallocated to the Prime Properties Investment segment. The profit and loss from these non-strategic businesses are thereby separated from the principal business performance and presented within non-trading items ('revised basis'). This distinction aims at providing a clearer understanding of the group's underlying performance related to its principal operations.  This change has been accounted for retrospectively with comparative information re-presented. The effects on the underlying profit attributable to shareholders for the year ended 31 December 2025 and 2024 are as follows:

				2025 US$m				2024 US$m
	Attributable to shareholders
	Underlying profit (revised basis)			458.2				498.6
	Non-strategic business (Build-to-sell) business    performance			126.7				225.3
	Underlying profit (revised basis) including Build-to-sell   business performance			584.9				723.9
	Provisions for properties for sale			(371.3)				(314.3)
	Net gain on reclassification from properties for sale to   investment properties and fixed assets			246.9				-
	Underlying profit (previous basis)			460.5				409.6

The effects on the presentation of consolidated profit and loss account for the year ended 31 December 2024 are as follows:

		Impact		Underlying Business performance US$m		Non- trading items US$m		Total US$m
	Revenue	Increase/(decrease)		(914.9)		914.9		-
	Operating profit	Increase/(decrease)		109.7		(109.7)		-
	Net financing charges	(Increase)/decrease		(27.4)		27.4		-
	Share of results of   associates and joint   ventures	Increase/(decrease)		(24.6)		24.6		-
	Profit before tax	Increase/(decrease)		57.7		(57.7)		-
	Tax	(Increase)/decrease		31.3		(31.3)		-
	Profit attributable to   shareholders of the   Company	Increase/(decrease)		89.0		(89.0)		-

2.   REVENUE

				2025 US$m				2024 US$m
	Rental income			844.2				887.6
	Service income and others
	- recognised at a point in time			27.1				35.3
	- recognised over time			187.7				177.4
				214.8				212.7
	Sales of properties
	- recognised at a point in time			370.0				881.0
	- recognised over time			19.3				20.8
				389.3				901.8
				1,448.3				2,002.1

Total variable rents included in rental income amounted to US$42.6 million (2024: US$36.2 million).

3.  NET OPERATING COSTS

				2025 US$m				2024 US$m
	Cost of sales			(953.5)				(1,265.4)
	Other income			38.8				70.0
	Administrative expenses			(223.2)				(209.0)
	Change in fair value of derivatives			(65.8)				-
	Exchange reserve loss realised on distribution			(9.0)				(7.6)
	Loss on disposal of investment properties			(5.1)				(10.3)
	Loss on measurement of the disposal group			-				(13.5)
	Net gain on disposal of subsidiaries and joint ventures			0.1				9.6
	Net gain on reclassification from properties for sale to
	investment properties			147.9				-
				(1,069.8)				(1,426.2)

Cost of sales included a US$313.6 million provision on the Chinese mainland properties for sale (2024: US$146.9 million) arising from the deterioration in market conditions that resulted in projected sales prices being lower than development costs.  A corresponding deferred tax credit of US$2.3 million (2024: US$10.8 million) was recognised.

4.  OPERATING PROFIT/(LOSS)

				2025 US$m			2024 US$m re-presented
	Underlying business performance
	Prime Properties Investment			697.3				771.3
	Corporate			(76.0)				(77.4)
				621.3				693.9
	Non-trading items
	Change in fair value of investment properties			514.2				(1,887.6)
	Change in fair value of derivatives			(65.8)				-
	Exchange reserve loss realised on distribution			(9.0)				(7.6)
	Loss on disposal of investment properties			(5.1)				(10.3)
	Net gain on disposal of subsidiaries and joint ventures			0.1				9.6
	Net gain on reclassification from properties for sale to
	investment properties			147.9				-
	Non-strategic business (Build-to-sell)			(304.2)				(109.7)
	Others			(6.7)				-
				271.4				(2,005.6)
				892.7				(1,311.7)

5.  SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES

				2025 US$m			2024 US$m re-presented
	Underlying business performance
	Prime Properties Investment
	- operating profit			161.5				168.2
	- net financing charges			(49.2)				(59.3)
	- tax			(20.7)				(18.5)
	- net profit			91.6				90.4
	Non-trading items
	Non-strategic business (Build-to-sell)
	- operating profit			189.0				212.3
	- net financing charges			(22.5)				(44.8)
	- tax			(85.7)				(143.0)
	- non-controlling interest			0.2				0.1
	- net profit			81.0				24.6
	Change in fair value of investment properties
	(net of tax)			386.6				139.2
	Net gain on reclassification from properties for sale
	to investment properties and fixed assets			150.0				-
				617.6				163.8
				709.2				254.2

The build-to-sell business included a US$60.0 million net provision after including a deferred tax credit (2024: US$178.2 million).  This arose due to the deterioration in Chinese mainland market conditions that resulted in projected sales prices being lower than development costs. 

6.  TAX

				2025 US$m				2024 US$m
	Tax charged to profit and loss is analysed as follows:
	Current tax			(98.9)				(93.4)
	Deferred tax			(74.2)				(58.7)
				(173.1)				(152.1)

Tax relating to components of other comprehensive income is analysed as follows:

				2025 US$m				2024 US$m
	Remeasurements of defined benefit plans			(0.1)				-
	Cash flow hedges			1.7				(1.5)
				1.6				(1.5)

Tax on profits has been calculated at the rates of taxation prevailing in the territories in which the Group operates.

The Group is within the scope of the OECD Pillar Two model rules, and has applied the exception to recognising and disclosing information about deferred tax assets and liabilities relating to Pillar Two income taxes.

Pillar Two legislation has been enacted in most jurisdictions in which the Group operates. The income tax expense related to Pillar Two income taxes in the relevant jurisdiction is assessed to be immaterial.

Share of tax charge of associates and joint ventures of US$360.7 million (2024: US$168.4 million) is included in share of results of associates and joint ventures.

7.   NON-TRADING ITEMS

Non-trading items are separately identified to provide greater understanding of underlying performance from continuing businesses. The Group presents the profit and loss account in columnar format with analysis of underlying business performance and items outside of the underlying business performance (non-trading items). The Group considers the following as non-trading items:

(i) Items that are unrealised valuation changes, infrequent or one-off in nature. Such items include fair value gains or losses on revaluation of investment properties, and equity and debt investments which are measured at fair value through profit and loss; gains and losses arising from the sale of businesses, investments and properties; impairment of non-depreciable intangible assets, associates and joint ventures and other investments; provisions for the restructuring or closure of businesses; acquisition-related costs in business combinations; and other credits and charges of a non-recurring nature that require inclusion in order to provide additional insight into underlying business performance.

(ii) Result of non-strategic business. This relates to the profit or loss of business not aligned with the Group's strategy and where there is an explicit and announced intention to exit or wind-down the business.

An analysis of non-trading items after interest, tax, non-controlling interests and share of results of associates and joint ventures is set out below:

			2025 US$m				2024 US$m re-presented
	Change in fair value of investment properties, net		889.7						(1,786.2)
	Change in fair value of derivatives		(65.8)						-
	Exchange reserve loss realised on distribution		(9.0)						(7.6)
	Gain on disposal of joint ventures		24.1						9.6
	Loss on disposal of investment properties		(5.1)						(10.3)
	Loss on disposal of subsidiaries		(24.3)						-
	Net gain on reclassification from properties for sale
	to investment properties and fixed assets*		246.9						-
	Non-strategic business (Build-to-sell)
	- business performance		126.7						225.3
	- provisions for properties for sale		(371.3)						(314.3)
	Non-strategic business (Build-to-sell) total		(244.6)						(89.0)
	Others		(6.7)						-
			805.2					(1,883.5)

* In view of the change of intention and to be in line with the Group's strategy, the Group reclassified certain properties for sale on the Chinese mainland to investment properties and fixed assets as at 31 December 2025.  Accordingly, a net gain on reclassification of US$246.9 million was recorded during the year with reference to valuations performed by an independent valuer

8.   EARNINGS PER SHARE

Basic earnings per share are calculated on profit attributable to shareholders of US$1,263.4 million (2024: loss of US$1,384.9 million) and on the weighted average number of 2,183.9 million (2024: 2,206.6 million) shares in issue and outstanding during the year.

For the year ended 31 December 2025, dilutive earnings per share are calculated on profit attributable to shareholders of US$1,263.4 million and on the weighted average number of 2,190.0 million shares in issue and outstanding during the year.

For the year ended 31 December 2024, the dilutive potential ordinary shares were not included in the calculation of diluted earnings per share as their inclusion would be antidilutive. Accordingly, diluted earnings per share were the same as basic earnings per share.

Additional basic and diluted earnings per share are calculated based on underlying profit attributable to shareholders.  A reconciliation of earnings is set out below:

				2025						2024
		US$m		Basic earnings per share US¢		Diluted earnings per share US¢		US$m		Basic earnings per share US¢		Diluted earnings per share US¢
	Underlying profit attributable to shareholders	458.2		20.98		20.92		498.6	*	22.60	*	22.58	*
	Non-trading items   (note 7)	805.2						(1,883.5)	*
	Profit/(loss) attributable to shareholders	1,263.4		57.85		57.69		(1,384.9)		(62.76)		(62.76)

     * Re-presented

9.   DIVIDENDS

			2025 US$m			2024 US$m
	Final dividend in respect of 2024 of US¢17.00
	(2023: US¢16.00) per share		375.0			353.1
	Interim dividend in respect of 2025 of US¢6.00
	(2024: US¢6.00) per share		130.5			132.4
			505.5			485.5

A final dividend in respect of 2025 of US¢19.00 (2024: US¢17.00) per share amounting to a total of US$408.9 million (2024: US$375.1 million) is proposed by the Board.  The dividend proposed will not be accounted for until it has been approved at the 2026 Annual General Meeting.  The amount will be accounted for as an appropriation of revenue reserves in the year ending 31 December 2026.

10. INVESTMENT PROPERTIES

			2025 US$m			2024 US$m
	At 1 January		24,759.9			26,687.2
	Exchange differences		16.3			113.2
	Additions		150.6			77.1
	Disposal		(229.5)			(12.7)
	Transfer from properties for sale		815.8			-
	Transfer to fixed assets		-			(111.7)
	Transfer to right-of-use assets		-			(94.2)
	Increase/(decrease) in fair value		514.2			(1,887.6)
	Classified as held for sale		(1,153.1)			(11.4)
	At 31 December		24,874.2			24,759.9

11. ASSOCIATES AND JOINT VENTURES

			2025 US$m			2024 US$m re-presented
	By Business
	Prime Properties Investment		5,366.9			6,950.9
	Non-strategic business (Build-to-sell)		2,587.4			3,095.3
			7,954.3			10,046.2

12. ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE

     The major classes of assets and liabilities classified as held for sale are set out below:

			2025 US$m			2024 US$m
	Investment properties		1,107.4			11.4
	Joint ventures		1,710.1			26.1
	Current assets		19.1			16.8
	Total assets		2,836.6			54.3
	Current liabilities		(16.5)			-
	Non-current liabilities		(1.4)			-
	Total liabilities		(17.9)			-

Current assets included bank balances of US$13.1 million (2024: US$3.5 million).

In April 2025, the Group entered into sale and purchase agreements with Hong Kong Exchanges and Clearing Limited for the sale of its interest in certain floors of One Exchange Square for a total cash consideration of approximately US$810 million. The transaction will conclude in stages as individual floors are handed over, with the remaining floors to be sold at US$476.7 million classified as held for sale at 31 December 2025.

In December 2025, the Group entered into a limited partnership agreement with independent third parties for the launch of its first private real estate fund - the Singapore Central Private Real Estate Fund ('SCPREF'). The Group also entered into sale and purchase agreements with SCPREF for the sale of the Group's interests in its Singapore commercial portfolio.  Accordingly, the interests in its Singapore commercial portfolio were classified as held for sale at 31 December 2025. The transaction was completed in February 2026.

At 31 December 2024, assets classified as held for sale principally related to certain interests in Cambodia and Thailand with net assets of US$14.9 million and US$39.4 million respectively.

13. BORROWINGS

				2025 US$m				2024 US$m
	Current
	Bank overdrafts			-				0.2
	Bank loans			-				6.4
	Current portion of long-term borrowings
	- bank loans			76.8				177.2
	- medium term notes			228.8				639.9
				305.6				823.7
	Long-term
	Bank loans			2,773.0				2,069.7
	Medium term notes
	- due 2026			-				220.5
	- due 2027			187.1				187.3
	- due 2028			183.4				183.7
	- due 2029			121.8				122.0
	- due 2030			700.1				699.8
	- due 2031			570.8				570.5
	- due 2032			140.8				141.0
	- due 2033			525.8				525.8
	- due 2034			115.5				115.8
	- due 2035			254.8				255.2
	- due 2038			115.1				108.7
	- due 2039			115.9				109.5
	- due 2040			32.0				32.1
				3,063.1				3,271.9
				5,836.1				5,341.6
				6,141.7				6,165.3

14. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES

Total capital commitments as at 31 December 2025 amounted to US$1,128.5 million (2024: US$1,155.9 million).

Various Group companies are involved in litigation arising in the ordinary course of their respective businesses.  Having reviewed the outstanding claims and taking into account the legal advice received, the Directors are of the opinion that adequate provisions have been made in the financial statements.

15. RELATED PARTY TRANSACTIONS

The parent company of the Group is Jardine Strategic Limited ('JSL') and the ultimate parent company of the Group is Jardine Matheson Holdings Limited ('JMH').  Both JMH and JSL are incorporated in Bermuda.

In the normal course of business, the Group has entered into a variety of transactions with the subsidiaries, associates and joint ventures of JMH ('Jardine Matheson group members').  The more significant of these transactions are described below:

Management fee

The management fee payable by the Group, under an agreement entered into in 1995, to Jardine Matheson Limited ('JML') in 2025 was US$2.3 million (2024: US$2.1 million), being 0.5% per annum of the Group's underlying profit in consideration for management consultancy services provided by JML, a wholly-owned subsidiary of JMH.

Property and other services

The Group rented properties to Jardine Matheson group members.  Gross rentals on such properties in 2025 amounted to US$17.3 million (2024: US$19.0 million).

The Group provided project management services and property management services to Jardine Matheson group members in 2025 amounting to US$8.9 million (2024: US$3.8 million).

Jardine Matheson group members provided property maintenance and other services to the Group in 2025 in aggregate amounting to US$59.4 million (2024: US$59.0 million).  In respect of capital expenditure works, Jardine Matheson group members complete value of works of US$79.3 million (2024: nil) and commitments related to the works amounted to US$144.1 million (2024: US$223.4 million).

Hotel management services

Jardine Matheson group members provided hotel management services to the Group in 2025 amounting to US$3.7 million (2024: US$3.1 million).

Outstanding balances with Jardine Matheson group members

Amounts of outstanding balances with associates and joint ventures are included in associates and joint ventures, debtors and creditors as appropriate.  Balances with group companies of JMH are immaterial, unsecured and have no fixed terms of repayment.

Hongkong Land Holdings Limited

Principal Risks and Uncertainties

The following are the principal risks and uncertainties facing the Company as required to be disclosed pursuant to the Disclosure Guidance and Transparency Rules issued by the Financial Conduct Authority in the United Kingdom and are in addition to the matters referred to in the Chairman's Statement, Chief Executive's Review and other parts of the Company's 2025 Annual Report.

The principal risks and uncertainties that the Company faces together with their mitigation measures are set out below. They have taken into account the Company's revised strategy and operating model which was announced in October 2024.

Risk relating to Execution of Strategy

The Group's new strategy is to focus on ultra-premium integrated investment properties in Asia gateway cities. The implementation of this strategy involves exiting from its build-to-sell businesses, leveraging third-party capital and recycling capital from selected assets to finance growth and improve return on equity. The successful execution of this strategy relies on business transformation. This transition will involve changes to the experience and skills that the Group requires for its management which may result in temporary disruption to operating standards if the transition is not well handled.

To support its strategy of recycling capital from existing assets to new investments in ultra-premium projects, the Group also needs to modify its investment management lifecycle. This revised approach includes identifying the optimal timing for asset disposals and acquisitions, which will be influenced by assumptions on asset performance and wider market conditions. This will include assumptions on future rents, occupancy and valuation metrics which may turn out to be too optimistic or pessimistic. To accelerate divestment from selective existing investments to finance growth the Group may need to reduce its price expectations below the asset's carrying value resulting in an accounting loss upon sale.  The Group may face challenges sourcing attractive new investment opportunities at or above its equity return expectations, resulting in a delay in business expansion and reduce return on equity performance.

The Group's new strategy also seeks to bring in third-party capital to support growth. The pace of developing effective relationships with providers of third-party capital will influence the Group's access to such capital and ultimately the pace of its business expansion. The terms on which third-party capital is drawn under this strategy could also create financial strain at the asset or fund level if an excessive amount of leverage is used and market conditions deteriorate. Poor investment performance may impact the Group's ability to attract new third-party capital providers. Large redemption requests from third-party capital providers may result in assets being sold on the open market if alternative third-party capital providers cannot be found.

The Group's strategy involves ambitious 10-year targets, including an increase in its AUM from US$40 billion to US$100 billion and recycling of capital of up to US$10 billion by 2035. Pursuit of these growth ambitions may affect the Group's investment decision making process. Any difference in judging the market, responding to competitive trends and demonstrating agility in certain conditions as well as inappropriate capital structure and poor financial planning could also lead to the Group not being able to execute the new strategy effectively.

Mitigation Measures:

·      Align transformation initiatives, capital recycling strategies and capital structure decisions with long-term business objectives

·      Implement structured change management programmes with clear communication and stakeholder engagement across the organisation

·      Hold regular investment committee meetings to review capital recycling progress and assess new investment opportunities

·      Apply active asset management strategies across the entire portfolio in line with prevailing market standards

·      Develop and execute exit strategies for assets designated for disposal, in collaboration with internal teams and external advisors

·      Maintain ongoing engagement with potential buyers and investors to ensure awareness of market conditions and capital availability

·      Uphold robust investment appraisal processes, supported by rigorous financial modelling and scenario analysis

·      Strengthen organisational capabilities through targeted training and upskilling to support new business models

·      Conduct comprehensive market research and detailed cash flow forecasting to evaluate potential investment opportunities

·      Perform regular strategic reviews of market conditions and monitor exposure to liquidity risks

·      Work closely with the Chief Financial Officer to maintain a strong balance sheet, including adequate liquidity buffers, to support growth while preserving the Group's investment credit rating

·      Continuously review processes and systems to ensure an institutional and disciplined approach to operations

·      Carry out regular internal audits to ensure compliance with financial policies and the effectiveness of internal controls over financial reporting

Economic Risk

Uncertainties in global and regional economies and financial markets, involving volatility in interest and exchange rates, excessive inflation, deflation or recession, can adversely affect the pricing and demand for the Group's properties. Such developments might increase the Group's operating and financing costs or reduce its occupancy rates and revenues, as well as its access to credit. This would affect the valuations for the Group's investment properties and profitability. At the same time, these developments could also impact on the performance of the Group's joint venture partners, associates, bankers, suppliers and other third parties to support it.

In addition, geopolitical instability in jurisdictions in which the Group's properties are located could lead to unfavourable market sentiment, posing a threat to its business activity and affecting strategic aspirations for growth and returns on investment. For instance, political tensions, which could result in greater protectionism, sanctions, nationalisation or expropriation, and violence may bring impact to the global geopolitical situation outside its own markets and affect worldwide sentiment.

Mitigation Measures:

·      Monitor the volatile macroeconomic environment and consider economic factors in strategic and financial planning

·      Make agile adjustments to existing business plans, where appropriate, and explore new business streams and markets

·      Review pricing and leasing strategies on a regular basis

·      Conduct stress testing in relation to various economic scenarios, such as inflation or interest rate changes, to understand their potential impacts and to prepare measures to address them

·      Perform strategic reviews of the market situation and monitor exposure to changes in liquidity

·      Manage the Group's exposure to fluctuations in foreign exchange, interest rates and counterparty risk

·      Explore alternative financing options (e.g., green bonds, private placements, etc.) to reduce dependency on institutional investors

·      Maintain a Terrorism and Political Violence policy with adequate coverage to mitigate the potential financial impact on the Group of political violence events

Risks from Changing Market Trends, Demands and Competition

Customer preferences can shift due to evolving lifestyle trends, technological advancement and economic developments, necessitating continuous adaptation by the Group in order to maintain and enhance its business performance. For instance, Hong Kong's position as a leading financial centre and luxury shopping destination may be eroded over time, leading to reduced demand for premium integrated properties, whilst over supply and changes in consumption pattern on the Chinese mainland could affect demand for high-end property. Other trends that could impact demand include preferences for decentralised office space, co-working environments, remote working and digital retailing.

If competitors are able to anticipate, understand and respond to these developments more effectively than the Group, particularly in new gateway markets, it may experience difficulty in gaining market share or lose current market share. This would result in the Group suffering a decline in financial performance and not achieving its strategic objectives for rapid growth.

Mitigation Measures:

·      Undertake continual upgrades and improvements to maintain the competitiveness of the Group's portfolio

·      Maintain ongoing engagement with government authorities

·      Regular market visits to key cities to understand latest trends and identify gaps with our existing portfolio

·      Monitor sales of retail tenants to identify shifts in business trends early. Conduct regular tenant satisfaction surveys, dialogues with core tenants and opinion leaders to identify existing gaps and anticipate evolving needs.

·      Maintain a strong customer relationship management system.

·      Adopt best practices with respect to sustainability and transition to net zero, including executing on green building initiatives and collaborating with our tenants to achieve sustainability goals

People and Culture Risk

Ensuring that the Group has the right management talent, equipped with leadership skills and specialist expertise, is critical in enabling it to execute its new strategy effectively and to implement the required changes to its organisational model. Therefore, any significant failure to attract, retain and develop such talent could undermine this strategy as well as the Group's operational and financial performance. The transition required under the new strategy involves a potential reallocation and reskilling of resources to new roles, with these processes involving additional time and costs.

The Group also faces talent shortages in certain areas, including retail management and sustainability, for which there is high market demand. If the Group is not able to hire key talent or carry out reskilling of existing personnel in these specialisms, it may not be able to execute related initiatives successfully, undermining its operational performance and growth.

Mitigation Measures:

·      Active communication with employees to develop their understanding of the Group's new strategic direction

·      Enhance the Group's performance management system to reinforce its high-performance culture, as well as maintain appropriate compensation and benefits

·      Conduct proactive manpower and succession planning

·      Enhance the Group's modern employer branding by implementing a talent development plan that includes training to up-skill staff to prepare them for emerging business needs

·      Implement a strategy to promote Inclusion, Equity & Diversity across the Group

·      Develop an employee retention programme

Health and Safety Risk

The Group faces health and safety risk in terms of the possible impact of such issues as accidents, security incidents or hygiene-related matters on its tenants. In addition, the Group's business activities include construction and renovation, hence it faces the risk of fatalities or serious injuries taking place if working conditions are unsafe or workers do not adhere to its safety procedures. If the Group fails to prevent, avoid and detect safety-related issues, even where its relevant operations are managed by third party service providers, its brand could be damaged and the trust that its tenants have in the Group eroded, especially given its focus on the luxury sector. These issues would ultimately undermine the Group's financial performance and shareholder value.

Mitigation Measures:

·      Ensure that all structural elements, mechanical and electrical systems and plumbing in the Group's buildings are regularly inspected and maintained

·      Provide tenants with clear instructions and guidelines on emergency procedures and safety protocols

·      Establish a safety leadership culture and framework in all markets

·      Conduct regular safety training for all employees and contractors

·      Conduct proper contractor selection and evaluation, and incorporate site safety requirements in tenders and contracts

·      Conduct regular safety audits of operating buildings and construction sites to ensure the Group's guidelines, requirements and local regulations for safety are adhered to by both employees, vendors and contractors

·      Conduct periodic drills and tests of emergency response, business continuity and crisis response procedures established for health and safety incident' scenarios

·      Ensure insurance coverage, including employee compensation, public liability and construction all risks, is adequate and effective

Environmental and Climate Risk

Environmental and climate-related risks are growing in significance, as shown by the increasing frequency and intensity of potentially damaging natural events and disasters, such as flooding, increased extreme heat days and tropical cyclones. These pose growing physical threats to the Group's properties and other assets, which could lead to safety-related issues and disruption to operations and supply chains in the future. In addition, sea level rises could adversely impact asset values and business continuity. As a result, the Group may face higher costs for implementing measures to reduce the impact of climate-related events, including physical defences and insurance. Failure on the part of the Group to manage environmental and climate risks could lead to it incurring even greater costs of recovery from climate-related events, negatively affecting its financial performance, reputation and hence ability to achieve its long-term strategic objectives.

Market pressure, from shareholders, customers, lenders, rating agencies, etc., for improving sustainability performance is also increasing. In addition, the Group has committed to certain officially published targets, including those in relation to decarbonisation. It therefore faces a growing challenge in driving sustainability initiatives and delivering on sustainability performance, increasing the risk of negative media exposure or reputational damage arising if it does not meet compliance standards or other expectations. Any failure on the part of the Group to improve the quality of its reporting on climate and other sustainability-related performance, to meet these requirements, could also lead to reputational issues for the Group.

Mitigation Measures:

·      Implement measures to achieve the Group's targets and commitments to decarbonisation under the Science-Based Targets initiative

·      Update climate risk assessments and action plans for climate adaptation based on the recommendations of the Task Force on Climate-related Financial Disclosures/IFRS S2 Climate-related Disclosures, including implementing measures to address physical risks posed by climate change and identifying opportunities in the global transition to a low-carbon economy

·      Perform ongoing retrofitting of existing assets and deploy emerging PropTech solutions to drive energy efficiency

·      Increase the procurement of renewable energy, including expanding capacity for onsite renewable energy generation, to reduce carbon emissions

·      Continue implementing the Group's robust and long-standing green building certification programme to minimise the environmental impact of existing assets

·      Assess emerging sustainability reporting standards and requirements, and align the Group's disclosures with market best practice

·      Engage and collaborate with industry peers and government authorities on climate-related issues and share best practices

·      Enhance operations and emergency preparedness to mitigate and minimise the impact of climate-related risks

·      Maintain a Property Damage and Business Interruption insurance policy with adequate coverage, to mitigate the potential financial impact on the Group of catastrophic events

·      Enhance existing Hongkong Land systems and procedures for the identification, monitoring and tracking of climate risks across the portfolio to inform management decision-making

·      Conduct external and internal assurance reviews of the Group's sustainability reporting and governance

Technology and Cybersecurity Risk

The Group is increasingly reliant on technology, exposing it to greater cybersecurity and privacy-related risk. Cyberattacks are becoming more frequent and sophisticated globally, posing significant threats to the Group's digital infrastructure and information technology systems. The use of digital platforms also heightens the Group's vulnerability to cyber threats. Further, disruptive technologies, such as Generative AI, introduce another type of cyberattacks, such as advanced phishing and deepfake attacks. The new technologies may also influence customer expectations from the Group's portfolios. Failure to meet these expectations may result in loss of market share and competitive edge for the Group.

Cyber risk is further accentuated by the Group's exposure to breaches in cybersecurity taking place at its business partners, third parties and customers, through any Group systems that are connected with those of such counterparties.

Cyberattacks may also stem from a lack of cybersecurity awareness on the part of employees, resulting in human error that cybercriminals can exploit, disrupting critical equipment and facilities used by the Group in daily operations.

If a cyberattack takes place at the Group or at its partners, third parties or customers, it may face the costs of having to recover systems, lost revenue, brand damage or regulatory action and penalties.

Mitigation Measures:

·      Define a cybersecurity programme and establish a centralised function to provide oversight and management of cybersecurity matters and to strengthen cyber defences and security measures

·      Engage external consultants to perform cyber assessments of the Group's business functions against industry benchmarks

·      Perform regular vulnerability assessments, penetration testing and internal audits to identify weaknesses

·      Maintain and regularly test disaster recovery plans and backup for data restoration

·      Arrange regular security awareness training for all employees and phishing testing to raise their cybersecurity awareness

·      Maintain sufficient cyber-related insurance to protect the Group's financial position from the impacts of cyberattacks

·      Establish a technology strategy & roadmap and regularly review emerging technologies which align with business objectives to reduce the risk of operational obsolescence

·      Provide training and upskilling programmes for employees on new tools and platforms to maintain competitiveness

·      Engage with major technology vendors such as Microsoft to proactively understand emerging technologies (including AI, Cloud, Big Data, and Security) reducing the risk of operational obsolescence and ensuring secure, compliant integration into business processes

Legal, Regulatory, Compliance and Financial Reporting Risk

The Group is continuously subject to new or changing regulations in the jurisdictions in which it operates, as well as to those with cross-jurisdictional impact, covering such matters as tax (e.g., stamp duty), employment, cybersecurity, data privacy, home ownership, capital remittances, sustainability (e.g., carbon pricing, building standards, safety, etc.) and reporting requirements. The complexity created by this regulatory environment leads to a risk that the Group inadvertently breaches its compliance obligations. As the Group embarks on its shift towards new gateway cities in Asia, this risk is increased as it may not initially have sufficient internal understanding of regulations in each target jurisdiction.

If a robust approach to compliance is not maintained, the Group may face claims, lawsuits, investigations, fines and sanctions being imposed by regulatory authorities or negative media exposure, adversely affecting its operations, reputation and profitability.

The Group also faces the risk that its external financial reporting does not meet relevant regulatory requirements, possibly leading to fines or penalties as well as reputational damage or loss of investor confidence. This risk could increase as these requirements evolve and become more stringent over time, making it more challenging for the Group to ensure the integrity and timeliness of its financial reporting.

Mitigation Measures:

·      Stay up to date on new and draft regulations in all jurisdictions in which the Group operates and ensure that employees are informed of regulatory changes

·      Engage external consultants and legal experts to assess the implications of prospective or new regulations, where necessary

·      Implement a mandatory and robust code of conduct and zero-tolerance policy for unethical behaviour that applies to all business functions and employees across the Group

·      Maintain a robust Corporate Governance Framework which includes a secured and accessible whistleblowing channel for reporting misconduct

·      Provide regular legal updates to employees to ensure that they are informed of regulatory changes

·      Maintain an independent internal audit function that reports directly to the Group's Audit Committee on risk management, control environment and significant non-compliance matters

·      Make ongoing developments to financial systems and controls, to ensure the integrity of financial information

·      Conduct regular internal audits of compliance with financial policies and internal controls over financial reporting

Risks from Partnerships and Other Third-Party Relationships

The effectiveness of the Group's relationships with joint venture partners and in strategic alliances with other companies, government authorities, etc., will affect its performance. These relationships create opportunities for growth, improving operational efficiency and promoting innovation. However, they also introduce risks that could lead to vicarious responsibility for the actions of these parties, causing reputational damage and undermining shareholder value. These risks could stem from these parties' operations or their non-compliance with regulatory requirements that they face. Also, disputes with such parties may arise, as a result of differences in corporate culture, priorities, management approaches and risk appetite between the Group and such parties. Furthermore, any over-reliance on certain third-parties may expose the Group to poor performance outcomes, such as delays in delivery, low service quality or data security issues.

These reputational and operational challenges could hinder the Group in achieving its strategic objectives for growth in profitability and scale.

Mitigation Measures:

·      Conduct thorough research, due diligence and evaluation of investment opportunities and potential business partners

·      Develop a clear framework and levels of authority for investment and partnership decisions

·      Conduct regular multi-layer communication with partners and establish clear communication channels

·      Build up networks beyond local partners, such as with government authorities and the media

·      Monitor financial strength/downgrades, litigations and credit rating of business partners

·      Prepare fallback strategies for joint venture exits or partner defaults, to minimise financial and reputational damage

·      Develop a clear dispute resolution mechanism with partners

Hongkong Land Holdings Limited

Responsibility Statements

The Directors of the Company, whose names and functions are listed in the Directors' Profiles section of the Company's 2025 Annual Report, confirm that, to the best of their knowledge:

(a)  the consolidated financial statements prepared in accordance with International Financial Reporting Standards, including International Accounting Standards and Interpretations as issued by the International Accounting Standards Board, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group; and

(b)  the Chairman's Statement, Chief Executive's Review, Financial Review and the description of Principal Risks and Uncertainties facing the Group as set out in the Company's 2025 Annual Report, which constitute the management report required by the Disclosure Guidance and Transparency Rule 4.1.8, include a fair review of all information required to be disclosed under Rules 4.1.8 to 4.1.11 of the Disclosure Guidance and Transparency Rules issued by the Financial Conduct Authority in the United Kingdom.

For and on behalf of the Board

Michael T. Smith

Craig Beattie

Directors

5 March 2026

Dividend Information for Shareholders

The final dividend of US¢19 per share will be payable on 13 May 2026, subject to approval at the Annual General Meeting to be held on 7 May 2026, to shareholders on the registers of members at the close of business on 20 March 2026.  The shares will be quoted ex-dividend on 19 March 2026, and the share registers will be closed from 23 to 27 March 2026, inclusive.

Shareholders will receive cash dividends in United States Dollars, except when elections are made for alternate currencies in the following circumstances.

Shareholders on the Jersey branch register

Shareholders registered on the Jersey branch register can elect for their dividends to be paid in Pounds Sterling.  These shareholders may make new currency elections for the 2025 final dividend by notifying the United Kingdom transfer agent in writing by 24 April 2026.  The Pounds Sterling equivalent of dividends declared in United States Dollars will be calculated based on the exchange rate prevailing on 29 April 2026.

Shareholders holding their shares through CREST in the United Kingdom will receive cash dividends in Pounds Sterling only, as calculated above.

Shareholders on the Singapore branch register who hold their shares through The Central Depository (Pte) Limited ('CDP')

Shareholders enrolled in CDP's Direct Crediting Service ('DCS')

Those shareholders enrolled in CDP's DCS will receive their cash dividends in Singapore Dollars unless they opt out of CDP Currency Conversion Service, through CDP, to receive United States Dollars.

Shareholders not enrolled in CDP's DCS

Those shareholders not enrolled in CDP's DCS will receive their cash dividends in United States Dollars unless they elect, through CDP, to receive Singapore Dollars.

Shareholders on the Singapore branch register who wish to deposit their shares into the CDP system by the dividend record date, being 20 March 2026, must submit the relevant documents to Boardroom Corporate & Advisory Services Pte. Ltd., the Singapore branch registrar, by no later than 5.00 p.m. (local time) on 19 March 2026.

About Hongkong Land Group

Hongkong Land is a major listed property development, investment and management group. It focuses on developing, owning and managing premium and ultra-premium mixed-use real estate in Asian gateway cities, featuring Grade A office, luxury retail, residential and hospitality products. With over US$50 billion in assets under management, Hongkong Land's ultra-premium mixed-use real estate footprint spans over 1.82 million sq. m. lettable area in operation and 1.57 million sq. m. lettable area under development, with flagship mixed-use projects in Hong Kong, Singapore and Shanghai. Its properties hold industry leading green building certifications and attract the world's foremost companies and luxury brands. Established in 1889, Hongkong Land takes a long-term view, investing significantly alongside its capital partners and concentrating its portfolio where it can create the most value for tenants, customers and investors. Hongkong Land Holdings Limited has a primary listing on the London Stock Exchange, with secondary listings in Singapore and Bermuda. Hongkong Land is a member of the Jardine Matheson Group.

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For further information, please contact:

Hongkong Land
Mark Lam	(852) 2842 8211
Louise Corbett	(852) 2842 8541
SEC Newgate
Will Brocklehurst	(852) 6021 8313

Full text of the Preliminary Announcement of Results and the Preliminary Financial Statements for the year ended 31 December 2025 can be accessed via the Hongkong Land corporate website at 'www.hkland.com'.

 

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