Hong Kong developer Hysan’s first-half earnings rise 7.4% as project milestones near
Hysan Development, the largest commercial landlord in Hong Kong’s Causeway Bay shopping district, posted an underlying profit of HK$1.11 billion (US$140.19 million) for the first half of 2026, an increase of 7.4 per cent from a year earlier, driven by a realised gain from the sale of residential units at its Bamboo Grove project. Revenue for the six months ended June 30 was largely flat at…
Hong Kong developer Hysan reported a 7.4% increase in first-half earnings to HK$1.11 billion, reaching a milestone in its community business model. Revenue remained flat at HK$1.73 billion, a minor 0.1% decrease year-over-year. Chairman Irene Lee highlighted the group's rejuvenation project in Lee Gardens, noting that flagship stores of major brands had entered a phase of "large-scale harvest."
Retail revenue grew 1.4%, office revenue increased 0.5%, while residential sales fell 15.3%, due to fewer units available for lease after disposing of two blocks at Bamboo Grove. Net gearing decreased to 30.9% from 32.4% the previous year. Hysan has realized HK$4.5 billion from its capital recycling program, primarily through disposals at Bamboo Grove.
The company is in advanced talks to refinance a HK$10 billion project loan for Lee Garden Eight, which is due for maturity in the first half of 2027. The developer is on schedule for the completion of Lee Garden Eight and an elevated walkway, which will increase Hysan's total leasable commercial floor area by around 30%. Looking ahead, Hysan expects a dynamic operating environment in the second half, citing global uncertainty, regional competition, shifting consumer behavior, and continued pressure on office rents.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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