HENDERSON LAND (financial year ended 31 December 2025) posted revenue of HK$25.74 billion, edging up 2.0% year-on-year. However, the absence of last year’s HK$4.77 billion one-off gains from land resumptions and a property disposal weighed on earnings:

• Underlying profit attributable to shareholders dropped 38.0% to HK$6.06 billion; underlying EPS fell to HK$1.25 from HK$2.02. • Reported profit attributable to shareholders decreased 10.2% to HK$5.65 billion; reported EPS slipped to HK$1.17 (2024: HK$1.30). • A fair-value loss of HK$0.41 billion was booked on investment properties, sharply narrower than the HK$3.48 billion loss a year earlier.

Dividend policy turned defensive in light of heightened geopolitical uncertainty. The Board proposes a final dividend of HK$0.76 per share (2024: HK$1.30), reducing the full-year payout 30% to HK$1.26 per share.

Segment performance highlights:

• Property Development revenue grew 17% to HK$14.64 billion, driven by launches such as The Legacy and harbour-front projects at Kai Tak. Segment pre-tax profit contracted to HK$1.57 billion (2024: HK$4.65 billion) after last year’s sizable land-resumption gain. • Property Leasing delivered steady rental turnover of HK$6.76 billion (-3%). Net rental income before tax slipped 1% in Hong Kong to HK$4.87 billion; Mainland contribution fell 18% to HK$1.30 billion amid softer demand. • Retail operations (Citistore & UNY) revenue fell 6% to HK$1.46 billion; segment profit remained modest at HK$57 million. • Hotel room revenue declined 4% to HK$318 million; pre-tax profit eased 13% to HK$79 million due to renovation-related room closures. • Other businesses recorded a 34% revenue drop to HK$2.56 billion and swung to a HK$47 million loss, reflecting lower construction and travel income.

Contracted sales momentum improved in Hong Kong:

• 2025 Hong Kong contracted sales surged 71% to HK$19.27 billion. • Unrecognised Hong Kong sales stood at HK$10.93 billion, with HK$8.85 billion slated for 2026 recognition.

Financial position remained solid:

• Net debt reduced to HK$60.22 billion (2024: HK$67.99 billion); gearing eased to 18.7% (2024: 21.1%). • Average borrowing cost fell to 3.41% (2024: 4.51%). • In July 2025 the Group issued HK$8.00 billion 0.5% guaranteed convertible bonds due 2030, raising net proceeds of HK$7.92 billion.

Land bank and pipeline:

• Hong Kong land bank: 22.4 million sq ft GFA, including 11.2 million sq ft pending/under development. • New Territories holdings total 40.5 million sq ft of agricultural and other land, the largest among local developers. • Eight projects (about 2.30 million sq ft GFA; 4,700 residential units) targeted for Hong Kong launch in 2026.

Investment property development progresses:

• The Henderson is 95% leased; Central Yards Phase 1 targets occupation permit in 4Q-2026, with over 70% of office area pre-let to Jane Street Asia.

Outlook:

Management cites geopolitical risks but remains confident in Hong Kong’s long-term fundamentals, supported by policy initiatives such as the Northern Metropolis and talent admission schemes. The diversified portfolio across property sales, rentals and strategic associates, plus ample liquidity, positions HENDERSON LAND for continued development while maintaining prudent financial management.