Hysan Development net profit drops 68.8% in H1

Aug. 12, 2009 (China Knowledge) - Hong Kong's Hysan Development Co Ltd<0014>, the largest commercial landlord in Causeway Bay, has posted a net profit of HK$1.07 billion for the first half of this year, down 68.8% as valuations of investment properties declined, the Standard reported.

Lower gains from securities investments dragged Hysan's underlying profit to HK$583 million during the period, down 5.7% year on year.

Earnings per share were HK$1.028. Hysan has declared an interim dividend of 14 HK cents, according to the company's filing with the Hong Kong Stock Exchange.

The firm's revenue rose to HK$851 million, up 7.6% from a year earlier. Its rental income from offices increased 12%, while rental income from retailers rose by 4.5%.

Chairman Peter Lee Ting-chang said rents for office and retail space are expected to maintain a rising trend in the second half of this year, despite the uncertain financial market.

The occupancy rate of offices declined to 91.4% from 98.3% in 2008, the lowest level in more than eight years.

Shares of Hysan, which operates commercial properties of about 2.63 million square feet in Hong Kong, declined 2.35% to close at HK$20.8 on Tuesday.