Final Results
Hongkong Land Hldgs Ld
24 February 2004
To: Business Editor 24th February 2004
For immediate release
The following announcement was today issued to the London Stock Exchange.
HONGKONG LAND HOLDINGS LIMITED
2003 PRELIMINARY ANNOUNCEMENT OF RESULTS
Highlights
• Hong Kong office market stabilises in second half
• Central office portfolio vacancy reduced to 7%
• Major renovation of Landmark complex underway
• Good sales progress in three residential schemes
'With supply now beginning to tighten and demand returning to the Hong Kong
market, a recovery in office rental levels should take place. This will however
take time to work through into earnings.'
Simon Keswick, Chairman
24th February 2004
Results
---------------------------------------------------------------------------------
Year ended 31st December
Restated
2003 2002 Change
US$m US$m %
---------------------------------------------------------------------------------
Underlying profit attributable to
shareholders 174 192 -10
Loss attributable to shareholders (569) (679) n/m
Shareholders' funds 3,640 4,310 -16
Adjusted shareholders' funds* 4,215 4,957 -15
---------------------------------------------------------------------------------
USc USc %
---------------------------------------------------------------------------------
Underlying earnings per share 7.80 8.64 -10
Loss per share (25.54) (30.51) n/m
Dividends per share 6.00 7.50 -20
---------------------------------------------------------------------------------
US$ US$ %
---------------------------------------------------------------------------------
Net asset value per share 1.64 1.94 -15
Adjusted net asset value per share* 1.89 2.23 -15
* In preparing the Group's financial statements under International Financial
Reporting Standards ('IFRS'), the fair value model for investment properties has
been adopted in 2003. In accordance with this model, the Group's investment
properties have been included at their open market value as determined by
independent valuers. As there is no capital gains tax in territories where the
Group has significant leasehold investment properties, no tax would be payable
if those properties were to be sold at the amounts included in the financial
statements. In relation to leasehold investment properties, however, IFRS
require deferred tax on any revaluation amount to be calculated using income tax
rates. This is in contrast to the treatment for the revaluation of element of
freehold properties where IFRS require capital gains tax rates to be used. As
Management considers that the Group's long leasehold properties have very
similar characteristics to freehold property, the adjusted shareholders' funds
and adjusted net asset value per share information is presented on the basis
that would be applicable if the leasehold properties were freeholds. The
adjustments made add back the deferred tax provided in the financial statements
that would not have been provided if the properties were freeholds, which in any
event would not be payable on a sale of the properties.
The final dividend of USc4.00 per share will be payable on 12th May 2004,
subject to approval at the Annual General Meeting to be held on 5th May 2004, to
shareholders on the register of members at the close of business on 12th March
2004. The ex-dividend date will be on 10th March 2004, and the share registers
will be closed from 15th to 19th March 2004, inclusive.
HONGKONG LAND HOLDINGS LIMITED
PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED 31ST DECEMBER 2003
OVERVIEW
While the Hong Kong office market remained very competitive throughout the year,
the last quarter saw a recovery in sentiment following nearly three years of
decline. The Group continued to attract new tenants, with vacancy in its Central
office portfolio reduced to 7% by the year-end.
PERFORMANCE
Net rental income fell by 11% compared with 2002. Lower average rents, which
continued to fall as negative reversions worked through the portfolio, were only
partly offset by a full year contribution from Chater House. With net financing
charges stable as debt levels were little changed, underlying earnings fell
broadly in line with net rental income to US$174 million. Underlying earnings
per share reduced similarly to USc7.80.
The Independent Valuation of the Group's investment portfolio led to a net
valuation deficit for the year of US$824 million. All of the fall took place in
the first half of the year, with values recovering modestly in the second half.
Under International Financial Reporting Standards, this deficit is charged to
profit and loss account and was the predominant cause of the reduction of
shareholders' funds of US$670 million. The revised application of the accounting
standard on deferred tax resulted in a cumulative provision of US$573 million
being made in respect of the Group's Hong Kong portfolio even though no such
liability for tax would arise under the current tax regime should there be a
property disposal. As a result of these factors, net asset value per share fell
by 15% to US$1.64.
With the Group's core rental market having stabilised, the Directors have
recommended that the final dividend be held at USc4.00 per share for 2003.
Together with the interim dividend of USc2.00, this gives a total dividend of
USc6.00 for the year.
GROUP REVIEW
Despite the completion of significant additional office space in Hong Kong's
Central District during the year, vacancy fell as demand began to recover and a
number of businesses chose to move to Central from decentralised districts.
Retail space continued to be in demand as domestic and tourist consumer spending
improved. This market background helped the Group reduce its office vacancy
significantly, while its retail portfolio remained close to fully let.
The Group's emphasis on building value in its core portfolio continued in 2003.
Following the completion of Chater House in 2002, the refurbishment of the
retail podium of Alexandra House was completed in the last quarter of 2003 and
was 97% pre-let on completion. A major renovation of the Landmark complex,
including the addition of a luxury hotel, is now the prime focus of investment
in Hong Kong.
Outside Hong Kong, construction at One Raffles Quay in Singapore continued amid
signs of stabilisation in the office market in the city.
The Group's residential business made further progress, both in terms of
construction, where Phase II of Central Park in Beijing is now underway, and in
sales, with Phase I of that development sold out, and encouraging sales at both
of the Group's residential developments in Hong Kong; Ivy on Belcher's and
Stanley Court.
In Indonesia, the Group purchased a 25% stake in Jakarta Land, a premium office
investment and development company in central Jakarta.
OUTLOOK
In conclusion, the Chairman, Simon Keswick said, 'With supply now beginning to
tighten and demand returning to the Hong Kong market, a recovery in office
rental levels should take place. This will however take time to work through
into earnings.'
CHIEF EXECUTIVE'S REVIEW
STRATEGIC FOCUS
The Group's main priority is the maximisation of its core asset values in
Central, through the right balance of redevelopment and renovation of the
physical assets, and continued strengthening of our customer relationships. This
focus bore fruit in 2003 with a fully let retail portfolio and significantly
lower office vacancy than the market average. This emphasis on our core
commercial portfolio in Hong Kong will continue, together with limited strategic
investments in other Asian cities. The Group's purchase of an interest in
Jakarta Land reflects that strategy.
The objective of building a high quality residential business has made good
progress, with the launch for sale of Phase II of Central Park in Beijing, and
of Stanley Court and Ivy on Belcher's in Hong Kong.
In the infrastructure sector, our strategy of selective disposal of assets is
being implemented with a significant reduction of the Group's exposure in this
area.
COMMERCIAL PROPERTY
Central Portfolio
While the office market remained weak for most of the year, leasing activity was
high, with a number of businesses taking advantage of the very competitive rents
available in Hong Kong's Central District in their relocation and consolidation
decisions. The relatively high level of vacancy prevailing in Central in the
early part of the year encouraged this, with a range of options available to
tenants seeking good locations and well-managed buildings.
The active market enabled the Group to reduce its level of vacancy throughout
the year, despite the completion of IFC II midway through it. With 200,000 sq.
ft of space given back to the Group in January by JPMorgan, following their
relocation to Chater House, vacancy early in the year stood at 16%. By the half
year, this had reduced to under 10%. Further progress was made in the second
half, bringing the year-end level down to 7%, significantly lower than the
market-wide figure in Central of 11%. This strong leasing performance reflected
the signing of 72 new tenancies during 2003, surpassing the 40 new customers
secured in 2002.
In the retail sector, the outbreak of SARS in the first half, while severe at
the time, did not prove to have a significant impact on business over the year
as a whole. The completion of the Alexandra House retail podium refurbishment in
the fourth quarter was enthusiastically received in the market. The Group's
efforts will now turn to the implementation of its multi-phase redevelopment
scheme at The Landmark, which includes the addition of a 114-room luxury hotel
to be managed by Mandarin Oriental. The scheme remains on target for phased
completion between 2005 and 2007.
Commercial Properties Outside Hong Kong
In the fourth quarter, commercial capital values in Singapore stabilised after
three years of decline. Our 100%-owned One Raffles Link remains fully let at
premium rents in both its office and retail elements. At our joint-venture
development at One Raffles Quay, construction continued with completion expected
in early 2006.
In Vietnam, our Hanoi portfolio remains fully let at rents commanding
significant premiums to the market.
During the year, our investment in the Gaysorn retail centre in Bangkok was
restructured, and the Group now owns 49% of the equity of the business which is
regarded as the prime luxury retail mall in Bangkok.
In Indonesia, the Group acquired a 25% interest in Jakarta Land, which owns
800,000 sq. ft of prime office space in downtown Jakarta, together with land
bank adjoining the site. This small investment positions the Group to benefit
from the future growth of Jakarta's CBD.
RESIDENTIAL PROPERTY
The sale of the remaining units in Phase I of Central Park, the Group's
joint-venture development in Beijing, was completed during the year, despite the
impact of SARS. Phase II was launched in the fourth quarter and healthy demand
has led to about half of the units being pre-sold by year-end.
In Hong Kong, two residential sites were offered for sale in the fourth quarter,
following the revival of market sentiment. By the year-end, over half of the
town houses at Stanley Court on the south side of the Island and some 40% of the
140 units at the near-complete Ivy on Belcher's in Western District had been sold.
Progress was also made in seeking regulatory approvals for two potential developments
in Tai Hang and Western District.
In the Philippines sales continued at Roxas Triangle which is close to 70% sold.
Grosvenor Land, our joint-venture residential property fund, has recently
acquired two further investments in Tokyo. The value of its existing investments
saw some improvement in the second half of the year.
INFRASTRUCTURE
A number of steps were taken to implement the strategy announced at the
beginning of the year of selectively disposing of assets in this sector. The
bulk of the Group's investment in China Water Company was sold in the first
quarter, and the investments in China Infrastructure Group and Winstar were
disposed of later in the year.
The Group's remaining infrastructure investments are a 37.5% stake in Tradeport,
a 28.5% stake in Asia Container Terminals, both in Hong Kong, and a 13% stake in
PTMM, a toll road in Indonesia. At Tradeport, the logistics terminal building
was completed in the first quarter and initial customers have been signed, but
the pace of marketing has been slower than anticipated. Progress in the
construction of Container Terminal 9 is on plan for completion in mid-2004,
following which ACT's interest will be swapped into CT8.
FINANCE
Two major financings were completed during the year, a HK$1.5 billion three-year
fixed rate bond in April and a HK$5 billion seven-year bank syndication in July.
Together with a range of smaller bi-lateral facilities, these have further
extended the average maturity of the Group's committed funding facility to 5.2
years. Partly as a result of the long-term maturity of its debt, all of which is
now unsecured, the rating agencies maintained the ratings of the Group's debt
issues despite the weakening rental market.
OUTLOOK
Throughout the period of weak demand that has characterised our core office
market since the close of 2000, the Group's focus on the quality of its
buildings and services has enabled it to command a significant share of market
transactions, despite the launch of 1.3 million sq. ft of competitive space
during the year. With vacancy in Central now beginning to reduce, the Group is
well positioned to capitalise on its leading position in Hong Kong's Central
District.
Nicholas Sallnow-Smith
Chief Executive
24th February 2004
---------------------------------------------------------------------------------
Hongkong Land Holdings Limited
Consolidated Profit and Loss Account
for the year ended 31st December 2003
---------------------------------------------------------------------------------
Restated
2003 2002
US$m US$m
---------------------------------------------------------------------------------
Revenue (note 2) 383.7 396.6
Cost of sales (100.5) (84.2)
----------- -----------
Gross profit 283.2 312.4
Other income 0.3 0.5
Administrative and other expenses (27.9) (29.6)
----------- -----------
255.6 283.3
Decrease in fair value of investment properties (824.3) (987.7)
Asset impairments and disposals (note 3) 10.2 (25.3)
----------- -----------
Operating loss (note 4) (558.5) (729.7)
Net financing charges (64.5) (64.8)
Share of results of joint ventures (note 5) (5.3) (4.1)
----------- -----------
Loss before tax (628.3) (798.6)
Tax (note 6) 60.0 119.6
----------- -----------
Loss for the year (568.3) (679.0)
=========== ===========
Loss attributable to shareholders (568.5) (679.1)
Profit attributable to minority interests 0.2 0.1
----------- -----------
(568.3) (679.0)
=========== ===========
--------------------------------------------------------------------------------
USc USc
--------------------------------------------------------------------------------
Loss per share (note 7) (25.54) (30.51)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Hongkong Land Holdings Limited
Consolidated Balance Sheet
at 31st December 2003
--------------------------------------------------------------------------------
Restated
2003 2002
US$m US$m
--------------------------------------------------------------------------------
Net operating assets
Tangible assets (note 8)
Investment properties 5,506.9 6,249.8
Others 12.2 13.0
----------- -----------
5,519.1 6,262.8
Joint ventures 267.3 244.1
Other investments 3.7 3.7
Deferred tax assets 6.5 0.9
Pension assets 8.8 9.4
Other non-current assets 0.6 -
----------- -----------
Non-current assets 5,806.0 6,520.9
Properties held for sale 38.1 48.1
Debtors, prepayments and others 146.1 240.9
Bank balances and other liquid funds 599.6 550.6
----------- -----------
Current assets 783.8 839.6
----------- -----------
Creditors and accruals (178.6) (219.1)
Borrowings (note 9) (81.5) (68.1)
Current tax liabilities (9.5) (26.9)
----------- -----------
Current liabilities (269.6) (314.1)
Net current assets 514.2 525.5
Long-term borrowings (note 9) (2,085.6) (2,074.6)
Deferred tax liabilities (593.6) (660.9)
----------- -----------
3,641.0 4,310.9
----------- -----------
Total equity
Share capital 229.5 229.5
Revenue and other reserves 3,488.4 4,158.5
Own shares held (77.7) (77.7)
----------- -----------
Shareholders' funds 3,640.2 4,310.3
Minority interests 0.8 0.6
----------- -----------
3,641.0 4,310.9
----------- -----------
--------------------------------------------------------------------------------
US$ US$
--------------------------------------------------------------------------------
Net asset value per share (note 10) 1.64 1.94
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Hongkong Land Holdings Limited
Consolidated Statement of Changes in Equity
for the year ended 31st December 2003
--------------------------------------------------------------------------------
Restated
2003 2002
US$m US$m
--------------------------------------------------------------------------------
At 1st January
Total equity
- as previously reported 260.4 465.7
- effect of adopting IAS 40 (revised 2003)
net of tax 4,050.5 4,789.3
---------- -----------
- as restated 4,310.9 5,255.0
Attributable to minority interests (0.6) (0.5)
---------- -----------
Shareholders' funds 4,310.3 5,254.5
Net exchange translation differences
- amount arising in the year 10.7 26.7
- transfer to consolidated profit and
loss account - 3.1
Revaluation of other investments
- fair value gains - 14.2
- transfer to consolidated profit and
loss account on disposal - (87.2)
Cash flow hedges
- fair value gains/(losses) 4.9 (46.2)
- transfer to consolidated profit and
loss account 16.3 24.6
---------- -----------
Net gains/(losses) recognised directly
in equity 31.9 (64.8)
Loss for the year (568.3) (679.0)
---------- -----------
Total loss recognised (536.4) (743.8)
Profit attributable to minority interests (0.2) (0.1)
(536.6) (743.9)
Dividends (note 11) (133.5) (200.3)
---------- -----------
Shareholders' funds at 31st December 3,640.2 4,310.3
---------- -----------
At 31st December
Total equity 3,641.0 4,310.9
Attributable to minority interests (0.8) (0.6)
---------- -----------
Shareholders' funds 3,640.2 4,310.3
---------- -----------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Hongkong Land Holdings Limited
Consolidated Cash Flow Statement
for the year ended 31st December 2003
------------------------------------------------------------------------------------
Restated
2003 2002
US$m US$m
------------------------------------------------------------------------------------
Cash flows from operating activities
Operating loss (558.5) (729.7)
Depreciation and amortisation 1.1 1.2
Decrease in fair value of investment properties 824.3 987.7
Asset impairments and disposals (10.2) 25.3
Increase in properties held for sale, debtors,
prepayments and others (13.6) (22.0)
Increase/(decrease) in creditors and accruals 3.1 (0.9)
Interest received 18.8 29.5
Interest and other financing charges paid (83.2) (88.8)
Tax paid (31.9) (11.5)
Dividends received 0.9 2.0
150.8 192.8
Cash flows from investing activities
Major renovations expenditure (25.0) (21.5)
Developments capital expenditure (47.0) (102.7)
Investments in and loans to joint ventures (59.3) (20.3)
Purchase of other investments - (1.3)
Disposal of associates, joint ventures and
other investments 118.1 4.0
(13.2) (141.8)
Cash flows from financing activities
Net proceeds from issue of notes 190.5 -
Repayment of secured bank loans (262.9) (618.0)
Drawdown of unsecured bank loans 349.5 751.9
Repayment of unsecured bank loans (231.3) (5.8)
Dividends paid by the Company (133.2) (199.3)
(87.4) (71.2)
Effect of exchange rate changes 0.6 0.6
----------- -----------
Net increase/(decrease) in cash and cash equivalents 50.8 (19.6)
Cash and cash equivalents at 1st January 546.6 566.2
----------- -----------
Cash and cash equivalents at 31st December 597.4 546.6
----------- -----------
------------------------------------------------------------------------------------
USc USc
------------------------------------------------------------------------------------
Cash flow per share (note 12) 5.65 7.70
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
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 2003 which have been prepared
in conformity with International Financial Reporting Standards, including
International Accounting Standards ('IAS') and interpretations issued by the
International Accounting Standards Board.
In 2003, the Group implemented IAS 1 (revised 2003) - Presentation of Financial
Statements, IAS 2 (revised 2003) - Inventories, IAS 8 (revised 2003) -
Accounting Policies, Changes in Accounting Estimates and Errors, IAS 10 (revised
2003) - Events After the Balance Sheet Date, IAS 16 (revised 2003) - Property,
Plant and Equipment, IAS 17 (revised 2003) - Leases, IAS 21 (revised 2003) - The
Effects of Changes in Foreign Exchange Rates, IAS 24 (revised 2003) - Related
Party Disclosures, IAS 27 (revised 2003) - Consolidated and Separate Financial
Statements, IAS 28 (revised 2003) - Investments in Associates, IAS 31 (revised
2003) - Interests in Joint Ventures, IAS 32 (revised 2003) - Financial
Instruments: Disclosure and Presentation, IAS 33 (revised 2003) - Earnings Per
Share, IAS 39 (revised 2003) - Financial Instruments: Recognition and
Measurement, and IAS 40 (revised 2003) - Investment Property. These revised
standards are applied in advance of their effective dates.
In accordance with IAS 40 (revised 2003), leasehold properties held for
long-term rental yields are classified as investment properties and carried at
fair value. This is a change in accounting policy as in previous years these
properties are carried at depreciated cost. The comparative figures for 2002
have been restated to reflect the change in policy. The effect of the change has
been to decrease profit attributable to shareholders for the year ended 31st
December 2002 and 2003 by US$739.8 million and US$671.3 million respectively,
and to increase shareholders' funds at 1st January 2002 and 2003 by US$4,789.1
million and US$4,050.2 million respectively.
Other than described above, there have been no changes to the accounting
policies described in the 2002 financial statements that affect profit or
shareholders' funds resulting from the adoption of the above standards in the
financial statements, as the Group was already following the recognition and
measurement principles in those other standards. The comparative figures for
2002 have been adjusted or extended to conform with changes in presentation in
the current year to take into account the disclosure requirements of the revised
IAS which the Group implemented in 2003.
2. REVENUE
2003 2002
US$m US$m
----------- -----------
By business
Property
Rental income 303.8 336.4
Service and management charges 59.9 60.2
Sales of residential properties 20.0 -
----------- -----------
383.7 396.6
----------- -----------
By geographical area
Hong Kong 365.8 378.3
Southeast Asia 17.9 18.3
----------- -----------
383.7 396.6
----------- -----------
3. ASSET IMPAIRMENTS AND DISPOSALS
2003 2002
Gross Net Gross Net
US$m US$m US$m US$m
------- --- ------- -------- --- --------
Asset impairment reversals/
(provisions) 7.0 7.0 (50.5) (50.5)
Profit on disposal of associates
and joint ventures 3.2 3.2 25.2 25.2
------- ------- -------- --------
10.2 10.2 (25.3) (25.3)
------- ------- -------- --------
By business
Property (0.8) (0.8) (2.2) (2.2)
Infrastructure 11.0 11.0 (46.1) (46.1)
Corporate - - 23.0 23.0
------- ------- -------- --------
10.2 10.2 (25.3) (25.3)
------- ------- -------- --------
Gross asset impairments and disposals are shown before net financing charges and
tax. Net asset impairments and disposals are shown after net financing charges,
tax and minority interests.
4. OPERATING LOSS
2003 2002
US$m US$m
----------- ----------
By business
Property 276.1 304.9
Infrastructure (0.6) (1.4)
Corporate (19.9) (20.2)
----------- ----------
255.6 283.3
Decrease in fair value of investment properties (824.3) (987.7)
Asset impairments and disposals (note 3) 10.2 (25.3)
----------- ----------
(558.5) (729.7)
----------- ----------
5. SHARE OF RESULTS OF JOINT VENTURES
2003 2002
US$m US$m
----------- ----------
By business
Property (3.9) (4.3)
Infrastructure (1.4) (0.3)
Corporate - 0.5
----------- ----------
(5.3) (4.1)
----------- ----------
6. TAX
2003 2002
US$m US$m
----------- ----------
Current tax (15.1) (23.6)
Deferred tax
- revaluation surpluses of investment properties 76.4 146.5
- other temporary differences (1.3) (3.3)
75.1 143.2
----------- ----------
60.0 119.6
----------- ----------
Tax on profits is provided at the rates of taxation prevailing in the
territories in which the Group operates.
7. LOSS PER SHARE
Loss per share is calculated on loss attributable to shareholders of
US$568.5 million (2002: US$679.1 million) and on the weighted average number of
2,225.6 million (2002: 2,225.6 million) shares in issue during the year,
which excludes 69.6 million shares in the Company held by a wholly-owned
subsidiary.
Additional earnings per share are also calculated based on underlying profit
attributable to shareholders. The difference between underlying profit
attributable to shareholders and loss attributable to shareholders is
reconciled as follows:
2003 2002
US$m US$m
----------- ----------
Loss attributable to shareholders (568.5) (679.1)
Revaluation deficits of investment properties 828.7 992.7
Deferred tax credit on revaluation deficits of
investment properties (76.4) (146.5)
Asset impairments and disposals (10.2) 25.3
Minority interests 0.1 -
----------- ----------
Underlying profit attributable to shareholders 173.7 192.4
----------- ----------
8. TANGIBLE ASSETS AND CAPITAL COMMITMENTS
2003 2002
US$m US$m
---------- ----------
Tangible assets
Net book value at 1st January 6,262.8 7,120.8
Exchange rate adjustments 27.6 15.9
Additions 54.1 118.7
Depreciation (1.1) (1.2)
Decrease in fair value (824.3) (987.7)
Release of contingency - (3.7)
---------- ----------
Net book value at 31st December 5,519.1 6,262.8
---------- ----------
Capital commitments 570.4 434.4
---------- ----------
9. BORROWINGS
2003 2002
US$m US$m
---------- -----------
Current
Bank overdrafts 2.2 4.0
Short-term borrowings 77.3 38.5
Current portion of long-term borrowings 2.0 25.6
81.5 68.1
Long-term borrowings
Bank loans 1,238.7 1,389.0
7% United States Dollars bonds due 2011 655.2 685.6
3% Hong Kong Dollars notes due 2006 191.7 -
2,085.6 2,074.6
---------- -----------
2,167.1 2,142.7
---------- -----------
Secured 2.0 264.8
Unsecured 2,165.1 1,877.9
---------- -----------
2,167.1 2,142.7
---------- -----------
The 7% bonds with nominal value of US$600 million due 2011, which are listed on
the Luxembourg Stock Exchange, were swapped into Hong Kong Dollars floating rate
borrowings.
10. NET ASSET VALUE PER SHARE
Net asset value per share is calculated on shareholders' funds of US$3,640.2
million (2002: US$4,310.3 million) and on 2,225.6 million (2002: 2,225.6
million) shares issued at year end, which excludes 69.6 million shares in the
Company held by a wholly-owned subsidiary.
Additional net asset value per share is also calculated based on adjusted
shareholders' funds. The difference between adjusted shareholders' funds and
shareholders' funds is reconciled as follows:
2003 2002
US$m US$m
---------- ----------
Shareholders' funds 3,640.2 4,310.3
Deferred tax on revaluation surpluses of
investment properties 575.2 646.9
---------- ----------
Adjusted shareholders' funds 4,215.4 4,957.2
---------- ----------
11. DIVIDENDS
2003 2002
US$m US$m
---------- ----------
Final dividend in respect of 2002 of USc4.00
(2001: USc5.50) per share 89.0 122.4
Interim dividend in respect of 2003 of USc2.00
(2002: USc3.50) per share 44.5 77.9
---------- ----------
133.5 200.3
---------- ----------
A final dividend in respect of 2003 of USc4.00 (2002: USc4.00) per share
amounting to a total of US$89.0 million (2002: US$89.0 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 2004.
12. CASH FLOW PER SHARE
Cash flow per share is based on cash flows from operating activities less major
renovations expenditure amounting to US$125.8 million (2002: US$171.3 million)
and is calculated on the weighted average number of 2,225.6 million (2002:
2,225.6 million) shares in issue during the year, which excludes 69.6 million
shares in the Company held by a wholly-owned subsidiary.
13. CONTINGENT LIABILITIES
2003 2002
US$m US$m
---------- ----------
Guarantees in respect of
- facilities made available to joint ventures 24.1 30.1
- Container Terminal 9 development in Hong Kong 39.1 78.1
---------- ----------
The final dividend of USc4.00 per share will be payable on 12th May 2004,
subject to approval at the Annual General Meeting to be held on 5th May 2004, to
shareholders on the register of members at the close of business on 12th March
2004. The ex-dividend date will be on 10th March 2004, and the share registers
will be closed from 15th to 19th March 2004, 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 23rd April 2004. The Sterling
equivalent of dividends declared in United States Dollars will be calculated by
reference to a rate prevailing on 28th April 2004. 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
Martin Henderson (44) 20 7816 8135
Golin/Harris Forrest
C T Hew (852) 2501 7963
Weber Shandwick Square Mile
Richard Hews/ Katie Hunt/ Helen Thomas (44) 20 7067 0700
Full text of the Preliminary Annoucement of Results and the Preliminary Financial
Statements for the year ended 31st December 2003 can be accessed through the
Internet at 'www.hkland.com'.
This information is provided by RNS
The company news service from the London Stock Exchange
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