Occupancy At Hysan’s HK Office Bldgs At 94%

HONG KONG – Hysan Development, a major commercial property landlord in Central, said the occupancy rate of its office portfolio in the Chinese territory declined from 95 percent in 2020 to 94 percent at the end of 2021, reported The Standard on Friday morning (25 February, SGT).

Aside from that, its office properties, which contribute almost half of the company’s revenue, registered a revenue of HK$1.73 billion in 2021, a 4.98 percent drop from 2020’s figure.

Hysan Development explained that the weak office leasing market in Hong Kong dragged down office rent. As a matter of fact, average rents for new leases, renewals, and rent reviews in the company’s Lee Gardens portfolio declined to negative levels as major occupants scaled down their operations.

In terms of leased office space, roughly 32 percent of the landlord’s office leases expired in 2021.

Despite the soft performance of its office properties in Hong Kong, Hysan Development’s Chairman Irene Lee Yun-Lien said she is satisfied with the company’s overall performance last year amid the COVID-19 pandemic.

This is because the company recorded an annual net profit of HK$1.83 billion in 2021 from a loss of HK$2.55 billion a year ago. However, its overall revenue slid 2.7 percent to HK$3.61 billion last year, due to its weaker office leasing business

Consequently, its interim dividend per share was unchanged at HK$1.17 per annum, while the full-year dividend per share remained at HK$1.44.