Hong Kong developer Hysan’s first-half earnings rise 7.4% as project milestones near

Hysan Development, the leading commercial property owner in Hong Kong's Causeway Bay area, reported a 7.4% rise in first-half earnings to HK$1.11 billion (US$140.19 million) for the six months to June 30, 2026. This growth was partly due to a profitable sale of residential units at the Bamboo Grove project. Overall revenue remained steady at HK$1.73 billion, a 0.1% decrease compared to the previous year.

Irene Lee, chairwoman of the company, stated that the achievements during the first half of the year demonstrated the importance of their community-focused business model. The company's multi-year project to rejuvenate the Lee Gardens area is now entering a "large-scale harvest phase," with renovated and expanded flagship stores from luxury brands proving successful.

Hysan's retail revenue increased by 1.4%, while office revenue grew by 0.5%. However, residential sales fell by 15.3% due to fewer available units for lease after the sale of two blocks at Bamboo Grove. The board announced a first interim dividend of 27 HK cents per share, unchanged from the previous year. Net gearing, the ratio of net debt to equity, decreased to 30.9% from 32.4% at the end of 2025.

Hysan has completed 56% of its five-year capital recycling plan, valued at HK$8 billion, primarily through the sale of residential units at Bamboo Grove. The company is also in advanced discussions to refinance a HK$10 billion loan for the Lee Garden Eight project, which is due for repayment in the first half of 2027. This release of earnings comes as Hysan approaches significant operational milestones in its long-term district redevelopment project.

The Lee Garden Eight project, a 1.1 million-square-foot collaboration with Chinachem Group, is on track for completion in the third quarter of 2026. Additionally, a new elevated walkway is set to increase Hysan's total leasable commercial floor area by about 30%. Looking ahead, Lee expressed the expectation that the business environment will remain dynamic in the second half of the year, citing global uncertainty, regional competition, shifting consumer behavior, and persistent pressure on office rents.

The completion of the Lee Gardens rejuvenation and Lee Garden Eight construction projects provide confidence for the next phase of growth, according to Lee. Hysan Development's shares fell by 1.68% to HK$17.51 on Thursday.