【Real Estate Stock 683 Results】Kerry Properties' Underlying Profit Last Year Dropped 22% to HK$2 Billion; Maintains Final Dividend of HK$0.95, Current Dividend Yield 6.4%

Kerry Properties (00683)
Announces full-year results. Kerry Properties reports an annual basic profit of HKD 2.01 billion, down 22% year-on-year; attributable profit to shareholders is HKD 940 million, up 16.1%; earnings per share are HKD 0.65. The company maintains a final dividend of HKD 0.95, bringing the total annual dividend to HKD 1.35.
Kerry Properties’ stock price fell 3.9% before the announcement, closing at HKD 21.12, with a current dividend yield of 6.4%.

During the period, Kerry Properties’ annual contracted sales reached HKD 34.68 billion, a 175.2% increase year-on-year, mainly driven by strong pre-sales performance of the Jinling Huating project in Shanghai. Consolidated revenue was HKD 25.02 billion, up 17.1% year-on-year. Property sales revenue increased 28% to HKD 17.67 billion, mostly from projects in Hong Kong, including Tiu Keng Leng, Harbour View Gardens, and Long Tin Peak. However, growth was offset by a 3% decline in investment property and hotel lease income, reflecting ongoing challenges in the commercial property market. Property leasing and other income fell 3% to HKD 5.19 billion, and hotel operating income decreased 1% to HKD 2.15 billion.

Kerry Properties stated that while the overall outlook remains positive, they remain cautious due to ongoing challenges in China’s real estate sector affecting the broader economy. The Hong Kong market outlook is optimistic, but market sentiment remains fragile, with recent extreme geopolitical events in the Middle East already impacting the stock and property markets. The group will continue to adopt a prudent strategy, prioritizing financial stability and selectively seizing high-quality investment opportunities to support sustainable growth.

Source: Kerry Properties Announcement