Final Results
Hongkong Land Hldgs Ld
23 February 2006
To: Business Editor 23rd February 2006
For immediate release
The following announcement was today issued to the London Stock Exchange.
HONGKONG LAND HOLDINGS LIMITED
2005 PRELIMINARY ANNOUNCEMENT OF RESULTS
Highlights
• Hong Kong office market continues to strengthen
• Adjusted net assets per share* up 41%
• New development sites in Singapore, Macau and Mainland China
• 77% of MCL Land acquired
• Full year dividend up 14%
'With the reversion cycle having turned and the demand for space strong in the
Hong Kong commercial market, the outlook for both our office and our retail
portfolio is good. The lack of residential completions will hold back the result
for 2006, but our active development pipeline and the positive rental cycle give
confidence for the years to come.'
Simon Keswick, Chairman
23rd February 2006
Results
____________________________________________________________________________________________
Year ended 31st December
2005 2004 Change
US$m US$m %
____________________________________________________________________________________________
Underlying profit attributable to shareholders 188 197 -5
Profit attributable to shareholders 2,061 1,688 +22
Shareholders' funds 7,215 5,205 +39
Adjusted shareholders' funds* 8,592 6,072 +42
____________________________________________________________________________________________
USc USc %
____________________________________________________________________________________________
Underlying earnings per share 8.42 8.86 -5
Earnings per share 92.58 75.84 +22
Dividends per share 8.00 7.00 +14
____________________________________________________________________________________________
US$ US$ %
____________________________________________________________________________________________
Net asset value per share 3.24 2.34 +38
Adjusted net asset value per share* 3.86 2.73 +41
____________________________________________________________________________________________
* In preparing the Group's financial statements under International Financial
Reporting Standards ('IFRS'), the fair value model for investment properties has
been adopted. 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 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 USc6.00 per share will be payable on 21st June 2006,
subject to approval at the Annual General Meeting to be held on 14th June 2006,
to shareholders on the register of members at the close of business on 17th
March 2006. The ex-dividend date will be on 15th March 2006, and the share
registers will be closed from 20th to 24th March 2006, inclusive.
HONGKONG LAND HOLDINGS LIMITED
PRELIMINARY ANNOUNCEMENT OF RESULTS
FOR THE YEAR ENDED 31ST DECEMBER 2005
OVERVIEW
The strong recovery that characterised the commercial property market in Hong
Kong in 2004 continued throughout 2005. Capital values and rents in both the
office and retail sectors rose as vacancy fell across the market and demand
became more broad-based.
PERFORMANCE
The effect of negative rental reversions on the Group's income came to an end
during the year as reversions turned positive. The overall impact on earnings
for 2005, however, was neutral. With few completions in the residential sector,
profits from that segment fell to US$19 million. Consequently, despite reduced
financing charges, underlying earnings were 5% lower than the prior year at
US$188 million.
Capital values continued to increase as rising market rents were only partially
offset by higher capitalisation rates. Net profit rose from US$1,688 million a
year earlier to US$2,061 million, reflecting a 34% rise in the value of the
Group's investment property portfolio. The 34% increase in valuation, as
assessed by external valuers, to US$9,779 million led to a 41% increase in
adjusted net asset value per share to US$3.86.
In view of the positive outlook for operating cashflow, the Directors are recom
mending an increase in the final dividend for 2005 to USc6.00. Together with the
interim dividend of USc2.00, the total dividend proposed for the year is
therefore USc8.00.
GROUP REVIEW
The strong performance of the Hong Kong economy, and in particular of the
international business sectors operating in the city, generated broad demand for
high quality, well-located premises. This has led to the full absorption of the
considerable additions to office space completed in Central in recent years. Office
rents rose significantly in this environment.
The retail sector also continued to see robust growth, with the enhancements to
quality created by the continuing refurbishment of the Group's portfolio
attracting good demand from retailers show-casing their brands in Hong Kong's
premier shopping district.
In Singapore the Group took advantage of the strongest local market seen in
recent years to pre-commit some 70% of its joint venture development at One
Raffles Quay, well ahead of its physical completion in 2006.
In the residential sector, Phase II of the Central Park development in Beijing
was handed over to buyers during the year. The units in Phase III, currently
under construction, have been substantially pre-sold. In Hong Kong, few units
remain to be sold in the Ivy on Belcher's and Stanley Court developments, while
the joint venture property fund, Grosvenor Land, continues to divest its
investment portfolio recording satisfactory returns.
NEW DEVELOPMENTS
In 2005 three major sites were secured for future development. In July, the
Business and Finance Centre phase I site in Singapore was won by a consortium
comprising the same partners currently building One Raffles Quay in the city.
The Group's one-third interest in this development positions Hongkong Land well
to benefit from the improving performance of the Singapore market. In Chongqing,
in Western China, a joint venture with local developer the Longhu group won the
right to develop an excellent site of 450,000 sq. m gross floor area at Bamboo
Grove in the New Northern District of the city. In Macau, a joint venture with
Shun Tak Holdings Limited was entered into to develop a prime site adjacent to
the MGM casino development, facing the Nam Van Lake and the harbour. This will
comprise high-end residential apartments, a luxury shopping podium and a 5-star
hotel.
These sites provide the Group's business with a significant and diversified
development pipeline to complement its prime investment portfolio.
MCL LAND
On 17th February 2006 the Group completed a voluntary cash offer for MCL Land, a
Singapore-listed residential property developer. Following the offer, MCL Land
is now a 77%-held subsidiary at a cost of US$307 million. The acquisition gives
scale to Hongkong Land's growing residential property business and provides a
platform from which to develop that business further in Southeast Asia.
OUTLOOK
In conclusion, the Chairman, Simon Keswick said, 'With the reversion cycle
having turned and the demand for space strong in the Hong Kong commercial
market, the outlook for both our office and our retail portfolio is good. The
lack of residential completions will hold back the result for 2006, but our
active development pipeline and the positive rental cycle give confidence for
the years to come.'
CHIEF EXECUTIVE'S REVIEW
STRATEGIC FOCUS
An extensive programme of refurbishment and redevelopment has rejuvenated our
Central portfolio in recent years. This will culminate in 2006 with the
completion of the new tower on the southeast corner of The Landmark complex. It
leaves the core assets of our business in an excellent position to take
advantage of the strong cycle we are experiencing in Hong Kong, in both the
office and retail markets. Our leadership in quality of product and level of
service will ensure our revenue growth benefits fully from the upswing.
In support of the core Hong Kong commercial portfolio, we are growing regionally
and developing the residential component of our business. Securing the Business
Financial Centre ('BFC') opportunity in Singapore takes the critical mass of our
portfolio in that city to a new level, and builds value for the future. The
acquisition of MCL Land in Singapore and the new sites we have been awarded in
Chongqing and Macau will provide further momentum to the residential business.
Finally, with the disposal of our toll road investment in Indonesia, only
Tradeport remains of our infrastructure portfolio, now reported in the Comme
rcial Property segment of our accounts.
COMMERCIAL PROPERTY
Central Portfolio
The strong upward momentum in rentals experienced in 2004 in the Hong Kong
office market continued throughout 2005 amid steady broadening demand. This
enabled the Group to reduce vacancy from 6% to 4.6% over the year. The cycle of
rising rents and falling vacancy is now benefiting decentralised districts as
well as Central.
The rise in rents has moved the reversion pattern for our office portfolio from
a negative position as recently as the first half of the year, to a strongly
positive one by the fourth quarter. For the year as a whole, the two periods
broadly offset each other and only in 2006 will positive reversions
significantly impact revenue. The new office tower on the Landmark East site of
some 110,000 sq. ft net will be completed towards the end of 2006 and begin
generating revenue in the following year.
Retail activity continued to be buoyant in Hong Kong. The renovation of The
Landmark, and the continuing work on the public environment outside our retail
portfolio under our Cityscape scheme, have reinforced Central's position as the
leading high-end shopping destination in Hong Kong. In addition to our refurbishment
in The Landmark Atrium and creation of The Landmark Mandarin Oriental which
opened in August in Edinburgh Tower, a number of major global fashion brands
launched stunning flagship stores during the year. Together with the
introduction of Harvey Nichols' first store in Asia, these investments by
Hongkong Land and its leading retailers have taken Central to a new level.
Against this background, the proportion of rental income generated by the retail
element of our Central portfolio has risen to some 31%.
Commercial Properties Outside Hong Kong
The Singapore office market saw improving demand during the year. Our joint
venture development at One Raffles Quay ('ORQ') provides a world-class product
at a time when many global financial service firms are seeking to expand into
state-of-the-art premises in the city. In this environment, pre-leasing at ORQ
was very active and by the year end the development was some 70% pre-committed.
Tenants will be able to take-up occupation in two phases; the South Tower from A
pril, and the North Tower from September 2006. Our existing investment in
Singapore, One Raffles Link, remains fully let, as does its retail component
Citylink Mall.
In July, the consortium of companies constructing ORQ, in which Hongkong Land
has a one-third share, won the right to develop the neighbouring BFC site. These
two sites will form the core of the New Downtown business district in Singapore.
The BFC is a 438,000 sq. m mixed-use site which will be developed in two phases;
predominantly for offices but with retail and residential components.
In Thailand, our 49%-held retail centre in Bangkok, Gaysorn, is fully let and
trading well. In Indonesia, the Group increased its interest in Jakarta Land to
37% and since the year end has bought an additional stake to move to a 50%
holding. The refurbishment of the company's existing buildings in Jakarta is in
progress, while plans for its landbank will be developed later in the year. In
Kuala Lumpur we entered into an agreement to manage a premium retail mall at avenue
K, enabling us to become involved in the market in that city without committing
capital at this stage. In Vietnam, our two leading office buildings in Hanoi
remain fully let at premium rents.
RESIDENTIAL PROPERTY
Following a number of residential completions in 2004, only Phase II of Central
Park in Beijing was handed over to buyers in 2005. As a result, profits reported
in this sector were lower than the prior year. Units of Phase III of Central
Park have been substantially pre-sold. These are now under construction, with
completion scheduled in 2007. Work on Phase IV has begun. This is the last phase
of the project and is scheduled to be handed over to buyers in 2008.
Elsewhere in Mainland China, following the formation in March of a joint venture
with local developer, the Longhu group, the company successfully bid for a major
site in the New Northern District of Chongqing. This large site of almost half a
million sq. m will be developed in phases.
In Hong Kong, with sales of Ivy on Belcher's and Stanley Court almost complete,
we are now focusing on our Lai Sing Court and Victoria Road developments. Vacant
possession has now been obtained at the former and demolition of the existing
building has started. At the latter site, we have now agreed the land premium
with the Government and will begin work on site shortly. Construction on these
two sites is scheduled to complete in 2009 and 2010 respectively.
In the Philippines, the sale of apartments at Roxas Triangle in Manila continued
but at a slow pace, while we raised our holding in residential developer Jardine
Land to 40%.
In September, the Group signed a joint venture agreement to develop a prime,
200,000 sq. m mixed-use site in Macau. Over 800 luxury apartments will be
constructed, commanding excellent waterfront views over Nam Van Lake above an
international-quality retail podium. Adjoining this, facing the harbour, a
5-star hotel will complete the development. Our joint venture with Shun Tak
Holdings Limited commenced construction toward the end of year.
Our joint venture residential property fund, Grosvenor Land, continues to
realise its investments in Hong Kong and Japan.
MCL LAND
In December the Group announced a cash offer for Singapore-listed MCL Land. The
Offer, which closed on 17th February 2006, received acceptances of 77% at a cost
of US$307 million. As indicated when the offer was announced, Hongkong Land's
intention was to acquire a controlling stake in MCL Land and the Group is
content for the company to remain listed with a minority interest.
MCL Land is a leading property group whose main activity is residential develop
ment in Singapore and Malaysia, where it has a portfolio of prime residential
properties at various stages of development for sale. MCL Land has a good brand
name, a reputation for quality and a highly regarded and experienced management
team. The acquisition of a controlling stake in an established developer such as
MCL Land allows Hongkong Land to expand its growing residential property
activities into Singapore and Malaysia.
FINANCE
In September, the Group raised S$700 million in a landmark issue of 5 and
10-year bonds, the largest ever seen in that currency by a foreign issuer. This
financing was followed by a US$400 million, 7-year, Convertible Bond issued in
December. These issues have enabled the Group to take advantage of the very low
level of longer-term interest rates currently prevailing.
OUTLOOK
The Group's core commercial portfolio in Hong Kong is now benefiting from the
strong upturn in market rents which began in the last quarter of 2003. With
relatively little supply over the medium term of either office or retail space
in Central, the outlook for rental income is very positive.
Our residential business, augmented by the acquisition of MCL Land, will see few
completions in the short-term and not therefore contribute significantly to
accounting profit in the near term. The Group's development pipeline is,
however, stronger than it has been for many years. These developments will add
to the income stream later in the decade.
Nicholas Sallnow-Smith
Chief Executive
23rd February 2006
________________________________________________________________________________
Hongkong Land Holdings Limited
Consolidated Profit and Loss Account
for the year ended 31st December 2005
________________________________________________________________________________
2005 2004
US$m US$m
________________________________________________________________________________
Revenue (note 2) 367.6 409.1
Cost of sales (95.7) (116.4)
______________ ______________
Gross profit 271.9 292.7
Other income - 0.9
Administrative and other
expenses (28.2) (25.6)
______________ ______________
243.7 268.0
Increase in fair value of
investment properties 2,367.9 1,701.3
Asset impairment reversals
and disposals (note 3) 11.1 62.7
______________ ______________
Operating profit (note 4) 2,622.7 2,032.0
Net financing charges (39.3) (53.1)
Share of results of joint
ventures (note 5) 10.0 23.7
______________ ______________
Profit before tax 2,593.4 2,002.6
Tax (note 6) (532.6) (314.3)
______________ ______________
Profit for the year 2,060.8 1,688.3
______________ ______________
Attributable to:
Shareholders of the Company 2,060.5 1,688.0
Minority interests 0.3 0.3
______________ ______________
2,060.8 1,688.3
______________ ______________
________________________________________________________________________________
USc USc
________________________________________________________________________________
Earnings per share (note 7)
- basis 92.58 75.84
- diluted 92.48 75.84
Underlying earnings per
share (note 7) 8.42 8.86
________________________________________________________________________________
________________________________________________________________________________
Hongkong Land Holdings Limited
Consolidated Balance Sheet
at 31st December 2005
________________________________________________________________________________
2005 2004
US$m US$m
________________________________________________________________________________
Net operating assets
Tangible assets (note 8)
Investment properties 9,778.7 7,289.0
Others 12.3 11.7
______________ ______________
9,791.0 7,300.7
Joint ventures 638.8 288.1
Other investments 49.5 0.3
Deferred tax assets 1.6 2.3
Pension assets 10.8 9.7
Other non-current assets 9.1 1.9
______________ ______________
Non-current assets 10,500.8 7,603.0
______________ ______________
Properties for sale 87.2 15.8
Debtors, prepayments and others 135.8 144.6
Bank balances 1,092.8 749.9
______________ ______________
Current assets 1,315.8 910.3
______________ ______________
Creditors and accruals (243.1) (174.3)
Current borrowings (note 9) (379.0) (79.5)
Current tax liabilities (8.6) (8.8)
______________ ______________
Current liabilities (630.7) (262.6)
______________ ______________
Net current assets 685.1 647.7
Long-term borrowings (note 9) (2,568.6) (2,159.6)
Deferred tax liabilities (1,400.6) (885.2)
______________ ______________
7,216.7 5,205.9
______________ ______________
Total equity
Share capital 229.5 229.5
Revenue and other reserves 7,063.5 5,053.0
Own shares held (77.7) (77.7)
______________ ______________
Shareholders'funds 7,215.3 5,204.8
Minority interests 1.4 1.1
______________ ______________
7,216.7 5,205.9
______________ ______________
________________________________________________________________________________
US$ US$
________________________________________________________________________________
Net asset value per share (note 10) 3.24 2.34
Adjusted net asset value per share
(note 10) 3.86 2.73
________________________________________________________________________________
________________________________________________________________________________
Hongkong Land Holdings Limited
Consolidated Statement of Recognised Income and Expense
for the year ended 31st December 2005
________________________________________________________________________________
2005 2004
US$m US$m
________________________________________________________________________________
Net exchange translation differences 11.0 7.2
Actuarial gains on defined
benefit pension plans 1.4 2.7
Gain/(loss) on revaluation of
other investments 4.6 (0.2)
Gains/(losses) on cash flow hedges 28.7 (16.5)
Equity component of convertible bonds 63.4 -
Tax on items taken directly to equity (1.6) (0.6)
______________ ______________
Net income/(expense)
recognised directly in equity 107.5 (7.4)
Transfer to profit and loss
in respect of cash flow hedges (1.7) 18.7
Profit for the year 2,060.8 1,688.3
______________ ______________
Total recognised income and
expense for the year 2,166.6 1,699.6
______________ ______________
Attributable to:
Shareholders of the Company 2,166.3 1,699.3
Minority interests 0.3 0.3
______________ ______________
2,166.6 1,699.6
______________ ______________
________________________________________________________________________________
________________________________________________________________________________
Hongkong Land Holdings Limited
Consolidated Cash Flow Statement
for the year ended 31st December 2005
________________________________________________________________________________
2005 2004
US$m US$m
________________________________________________________________________________
Operating activities
______________ ______________
Operating profit 2,622.7 2,032.0
Depreciation 0.7 0.9
Increase in fair value of
investment properties (2,367.9) (1,701.3)
Asset impairment reversals and disposals (11.1) (62.7)
(Increase)/decrease in properties for sale (16.7) 24.4
(Increase)/decrease in debtors,
prepayments and others (16.3) 1.6
Increase/(decrease) in creditors and accruals 6.7 (12.4)
Interest received 34.3 11.7
Interest and other financing charges paid (76.4) (57.6)
Tax paid (22.6) (18.7)
Dividends received 2.8 0.3
______________ ______________
Cash flows from operating activities 156.2 218.2
Investing activities
______________ ______________
Major renovations expenditure (14.5) (14.9)
Developments capital expenditure (78.5) (56.7)
Investments in and loans to
joint ventures (335.9) (20.0)
Purchase of other investments (47.4) -
Disposal of joint ventures and
other investments 10.1 93.9
______________ ______________
Cash flows from investing
activities (466.2) 2.3
Financing activities
______________ ______________
Net proceeds from issue of bonds 411.7 493.8
Net proceeds from issue of
convertible bonds 395.2 -
Drawdown of unsecured bank loans 223.4 11.0
Repayment of unsecured bank loans (224.4) (443.4)
Dividends paid by the Company (155.5) (132.8)
______________ ______________
Cash flows from financing activities 650.4 (71.4)
Effect of exchange rate changes 1.8 1.2
______________ ______________
Net increase in cash and cash
equivalents 342.2 150.3
Cash and cash equivalents at 1st
January 747.7 597.4
______________ ______________
Cash and cash equivalents at
31st December 1,089.9 747.7
______________ ______________
________________________________________________________________________________
USc USc
________________________________________________________________________________
Cash flow per share (note 12) 6.37 9.13
________________________________________________________________________________
________________________________________________________________________________
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 2005 which have been prepared
in conformity with International Financial Reporting Standards, including
International Accounting Standards and Interpretations issued by the
International Accounting Standards Board.
There have been no changes to the accounting policies described in the 2004
financial statements.
2. REVENUE
2005 2004
US$m US$m
________________________________________
By business
Commercial property
______________ ______________
Rental income 279.4 278.5
Service and management charges 61.4 60.4
Other 7.0 -
______________ ______________
347.8 338.9
Residential property
______________ ______________
Rental income 1.3 1.3
Service and management charges 0.4 0.1
Sales of properties 18.1 68.8
______________ ______________
19.8 70.2
______________ ______________
367.6 409.1
______________ ______________
By geographical area
Hong Kong 349.2 391.4
Southeast Asia 18.4 17.7
______________ ______________
367.6 409.1
______________ ______________
3. ASSET IMPAIRMENT REVERSALS AND DISPOSALS
2005 2004
Gross Net Gross Net
US$m US$m US$m US$m
_____________________ _____________________
Asset impairment reversals 11.1 11.1 2.9 2.9
Profit on disposal of joint
venture - - 59.8 59.8
________ ________ ________ ________
11.1 11.1 62.7 62.7
________ ________ ________ ________
By business
Residential property 1.0 1.0 - -
Corporate 10.1 10.1 62.7 62.7
________ ________ ________ ________
11.1 11.1 62.7 62.7
________ ________ ________ ________
Gross asset impairment reversals and disposals are shown before net financing
charges and tax. Net asset impairment reversals and disposals are shown after
net financing charges, tax and minority interests.
4. OPERATING PROFI
2005 2004
US$m US$m
________________________
By business
Commercial property 255.5 258.1
Residential property 8.7 27.9
Corporate (20.5) (18.0)
___________ _________
243.7 268.0
Increase in fair value of investment
properties 2,367.9 1,701.3
Asset impairment reversals and disposals (note 3) 11.1 62.7
___________ _________
2,622.7 2,032.0
___________ _________
5. SHARE OF RESULTS OF JOINT VENTURES
2005 2004
US$m US$m
________________________
By business
Commercial property 2.7 2.3
Residential property 7.3 24.9
Corporate - (3.5)
___________ _________
10.0 23.7
___________ _________
6. TAX
2005 2004
US$m US$m
________________________
Current tax (21.3) (18.1)
Deferred tax
___________ _________
- increase in fair value of investment (507.6) (288.9)
properties
- other temporary differences (3.7) (7.3)
___________ _________
(511.3) (296.2)
___________ _________
(532.6) (314.3)
___________ _________
Tax on profits is provided at the rates of taxation prevailing in the
territories in which the Group operates.
7. EARNINGS PER SHARE
Basic earnings per share are calculated on profit attributable to shareholders
of US$2,060.5 million (2004: US$1,688.0 million) and on the weighted average
number of 2,225.6 million (2004: 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.
Diluted earnings per share are calculated on profit attributable to shareholders
of US$2,061.1 million (2004: US$1,688.0 million) and on the weighted average
number of 2,228.8 million (2004: 2,225.6 million) shares in issue during the
year after adjusting for the effects of the conversion of convertible bonds.
Earnings per share are additionally calculated based on underlying profit
attributable to shareholders. The difference between underlying profit
attributable to shareholders and profit attributable to shareholders is
reconciled as follows:
2005 2004
US$m US$m
________________________
Underlying profit attributable
to shareholders 187.5 197.2
Revaluation surpluses of investment properties 2,367.9 1,701.3
Deferred tax charges on revaluation surpluses of
investment properties (507.6) (288.9)
Share of revaluation surpluses of investment
properties of joint ventures (net of deferred tax) 0.9 14.5
Asset impairment reversals and disposals 11.1 62.7
Share of asset disposals of joint ventures 0.8 1.3
Minority interests (0.1) (0.1)
___________ _________
Profit attributable to shareholders 2,060.5 1,688.0
Interest expense on convertible bonds (net of tax) 0.6 -
___________ _________
Profit for calculation of diluted earnings per share 2,061.1 1,688.0
___________ _________
8. TANGIBLE ASSETS
2005 2004
US$m US$m
________________________
Net book value at 1st January 7,300.7 5,519.1
Exchange rate adjustments 20.4 2.5
Additions 102.7 78.7
Depreciation (0.7) (0.9)
Net revaluation surplus 2,367.9 1,701.3
___________ _________
Net book value at 31st December 9,791.0 7,300.7
___________ _________
9. BORROWINGS
2005 2004
US$m US$m
________________________
Current
___________ _________
Bank overdrafts 2.9 2.2
Short-term borrowings 77.4 77.1
Current portion of long-term borrowings 298.7 0.2
___________ _________
379.0 79.5
Long-term borrowings
___________ _________
Bank loans 705.1 818.0
7% United States Dollar bonds due 2011 625.0 648.7
3% Hong Kong Dollar notes due 2006 - 192.1
5.5% United States Dollar bonds due 2014 493.1 500.8
3.01% Singapore Dollar notes due 2010 190.4 -
3.65% Singapore Dollar notes due 2015 222.9 -
2.75% United States Dollar convertible
bonds due 2012 332.1 -
___________ _________
2,568.6 2,159.6
___________ _________
2,947.6 2,239.1
___________ _________
10. NET ASSET VALUE PER SHARE
Net asset value per share is calculated on shareholders' funds of US$7,215.3
million (2004: US$5,204.8 million) and on 2,225.6 million (2004: 2,225.6
million) shares issued at year end, which excludes 69.6 million shares in the
Company held by a wholly-owned subsidiary.
Additional net asset value per share is also calculated based on adjusted
shareholders' funds. The difference between adjusted shareholders' funds and
shareholders' funds is reconciled as follows:
2005 2004
US$m US$m
________________________
Shareholders' funds 7,215.3 5,204.8
Deferred tax on revaluation surpluses of
investment properties 1,371.7 860.9
Share of deferred tax on revaluation
surpluses of investment properties
of joint ventures 5.2 5.9
___________ _________
Adjusted shareholders'funds 8,592.2 6,071.6
___________ _________
11. DIVIDENDS
2005 2004
US$m US$m
________________________
Final dividend in respect of 2004 of USc5.00
(2003: USc4.00) per share 111.3 89.0
Interim dividend in respect of 2005 of USc2.00
(2004: USc2.00) per share 44.5 44.5
________________________
155.8 133.5
________________________
A final dividend in respect of 2005 of USc6.00 (2004: USc5.00) per share
amounting to a total of US$133.5 million (2004: US$111.3 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 2006.
12. CASH FLOW PER SHARE
Cash flow per share is based on cash flows from operating activities less major
renovations expenditure amounting to US$141.7 million (2004: US$203.3 million)
and is calculated on the weighted average number of 2,225.6 million (2004:
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. POST BALANCE SHEET EVENT
On 1st December 2005, the Group announced a voluntary conditional cash offer for
Singapore-listed residential property developer, MCL Land Limited. The offer
which subsequently closed on 17th February 2006, has resulted in the Group
holding 77.4% in MCL Land Limited at a total consideration of approximately
US$307 million.
14. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES
2005 2004
US$m US$m
________________________
Capital commitments 632.1 493.4
___________ _________
Guarantees in respect of facilities made
available to joint ventures 8.0 19.7
___________ _________
The final dividend of USc6.00 per share will be payable on 21st June 2006,
subject to approval at the Annual General Meeting to be held on 14th June 2006,
to shareholders on the register of members at the close of business on 17th
March 2006. The ex-dividend date will be on 15th March 2006, and the share
registers will be closed from 20th to 24th March 2006, 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 2nd June 2006. The
Sterling equivalent of dividends declared in United States Dollars will be
calculated by reference to a rate prevailing on 7th June 2006. 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.
For further information, please contact:
Hongkong Land Limited
N R Sallnow-Smith (852) 2842 8300
G M Brown (852) 2842 8138
Jardine Matheson Limited
Matheson & Co Limited
Martin Henderson (44) 207 816 8135
GolinHarris
C T Hew (852) 2501 7963
Weber Shandwick Square Mile
Richard Hews / Helen Thomas (44) 207 067 0700
Full text of the Preliminary Announcement of Results and the Preliminary
Financial Statements for the year ended 31st December 2005 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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