SINGAPORE (EDGEPROP) - Hongkong Land Holdings has issued its Interim Management Statement for the third quarter of 2025, highlighting progress on its Strategic Vision 2035. The Group completed the sale of MCL Land, a Singapore and Malaysia residential developer, for $739 million. Total net proceeds from the divestment, including cash distributions before completion, amounted to S$839 million. The divestment has helped the company reach 50% of its capital recycling target of US$4 billion by the end of 2027.

The share buyback programme announced in April has been expanded, with US$200 million fully invested and an additional US$150 million allocated, further reducing issued share capital.

For prime properties investments, the group's Hong Kong office portfolio contributions were lower year-on-year, but leasing momentum improved, with committed vacancies dropping to 6.4% as of Sept 30, outperforming the wider Central Grade A office market. Singapore's office market remained robust, with low vacancy rates and positive rental reversions.

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Hongkong Land no longer pursues investments in its build-to-sell segment and is focused on accelerating the return of capital through inventory sales, while completing committed projects. It has exited the Singapore and Malaysia residential markets, while continuing ongoing projects in China and select Southeast Asian countries.

The group reported an underlying profit for 3Q2025 that is 13% lower than the previous year, mainly due to lower contributions from the Hong Kong office portfolio and pre-opening costs for prime properties investments in China.

Despite these challenges, the group's financial position remains strong, with net debt reduced to US$4.4 billion and gearing at 15%. The group's outlook on underlying results for the full year remains unchanged, with performance, excluding provisions, expected to be lower than last year.