Sun Hung Kai Properties Boosts H1 Profit by 36% as Revaluation Loss Narrows

Sun Hung Kai Properties’ six-month attributable profit jumped 36 percent year-on-year to HK$10.2 billion ($1.3 billion) as Hong Kong’s biggest developer narrowed losses from markdowns of its investment properties.

The fair value of the properties, net of deferred taxation and non-controlling interests, fell HK$304 million during the fiscal first half to the end of December, easing from a HK$2 billion drop in the same period of 2024, SHKP said Thursday in its interim results.

Underlying profit, which excludes property revaluations, rose 16.7 percent year-on-year to HK$12.2 billion. The rise was driven by higher underlying earnings from sales of trading and investment properties, as well as lower finance costs, while the group’s leasing and other recurring income remained resilient, said the blue-chip builder led by chairman Raymond Kwok.

“The group’s property investment portfolio in Hong Kong continued to deliver a substantial and stable recurring income,” Kwok said.

IFC Occupancy at 98%

Occupancy at SHKP’s flagship International Finance Centre climbed to 98 percent during the reporting period, reflecting improved leasing momentum in Central driven by tenant upgrades and in-house expansions by finance firms.

The International Commerce Centre in West Kowloon saw occupancy hold at 91 percent, supported by continued interest from core tenants, according to the group.

Kwok noted “signs of improvement” and stronger momentum in Hong Kong’s Grade A office leasing market, driven by an active financial market and an influx of talent and capital, coupled with the government’s suspension of commercial land sales.

“Leasing activity is accelerating, marked by notable cases of tenant upgrades and expansions, while pressure on rents showed signs of easing in core business areas including Central and West Kowloon,” the chairman said.

Development Profit Doubles

SHKP’s property development profit more than doubled to HK$4.9 billion during the period, fuelled by improved residential sales momentum. Attributable contracted sales totalled HK$18.9 billion, including HK$17.4 billion from Hong Kong projects and RMB 1.3 billion ($190 million) from mainland China developments.

Key contributors to sales included Cullinan Sky Phase 2 in Kai Tak and multiple completed residential projects across Hong Kong. Last month SHKP launched Sierra Sea Phases 2A and 2B in Sai Sha, recording contracted sales of over HK$9 billion.

The group said it plans to continue to roll out residential launches, maintain high occupancy across its rental portfolio and pursue disciplined capital management amid easing interest rates.

The International Gateway Centre atop the High Speed Rail West Kowloon Terminus has been completed, with one tower handed over to anchor tenant UBS in early 2026 and French insurer AXA in talks to lease three floors.

“Building on the successful precedents of IFC and ICC, landmarks completed at the onset of upward market trends, the group is confident that IGC is well positioned to capture opportunities arising from Hong Kong’s economic transformation,” Kwok said.