EUR 850.00 For Business Accounts Only

Morningstar | Long-Term Vision, Still Going Strong After a Century

Hongkong Land’s history can be characterized by patience and transformation. The company’s modus operandi is organically acquiring and growing a portfolio of good quality assets in Hong Kong’s, or HK's, CBD. Over more than a century, it assiduously assembled, maintained and upgraded these assets and turned them into a portfolio consisting of the most desirable office addresses and retail locations in the city. The HK portfolio accounts for near 65% of the company’s earnings, all of which in stable rental incomes.As HK’s second-largest office landlord (behind Swire Properties), but one with the most centrally located assets, Hongkong Land is the clear beneficiary of the recent boom in the HK office sector. Driven by strong demands from Chinese corporates establishing presence in the city, office buildings in the CBD are in high demand. Chinese corporates are particularity attracted to the high-grade office spaces offered by Hongkong Land. Beyond the attraction of modern grade-A office spaces, these assets offer unrivaled visibility and prestige due to their storied histories and locations.Fundamentally, the supply of office space in HK is below the level demanded by that of a world financial center. It is in fact the small CBD with tight supply that’s driving much of the ongoing decentralization trend. We expected the company’s portfolio in the city to continue to fare well in the coming years, underpinning by the growing presence of Chinese corporates and the city’s status as a world financial center.The company holds investment properties in Singapore, Jakarta, and Beijing. It also currently has development projects in Singapore and China. Given Hong Kong's current high asset value, the company's recent acquisitions have been elsewhere, including a commercial site in Nanjing, a residential project in Singapore, as well as three projects in Bangkok, Jakarta, and Manila. However, the company’s focus in Hong Kong is clear. Strategically speaking, its projects outside Hong Kong are disposable. During the downturn in 1982, the company disposed most of its overseas assets in a bid to shore up its balance sheet and hold on to its core portfolio in Hong Kong.