• Acquired a 10.8% stake in Suntec REIT for SGD541m (SGD1.70 per share)
• Enhances Hongkong Land&rsquo s exposure to Singapore&rsquo s commercial real estate sector
• Immediately earnings accretive, with potential upside from Suntec REIT&rsquo s strategic review
• Potential collaboration opportunities between Hongkong Land and Suntec REIT maintain  BUY  with TP of USD10.17

Investment in Suntec REIT  Hongkong Land has acquired a 10.8% stake in Suntec Real Estate Investment Trust (Suntec REIT) from ESR Group for SGD541m (USD422m), at SGD1.70 per unit on 19 March 2026. The purchase price represents a 21.4% premium to the closing price on 18 March 2026, but a 16% discount to the REIT&rsquo s net asset value (NAV) as of December 2025. Suntec REIT owns a portfolio of strategically located commercial assets in Singapore, including Suntec City, as well as one-third interests in Marina Bay Financial Centre (Towers 1 & 2) and One Raffles Quay, which together account for c.75% of its portfolio valuation. The remainder of its assets are located in Australia and the United Kingdom. This acquisition aligns with Hongkong Land&rsquo s strategy of redeploying recycled capital into prime, income-generating commercial assets, with Singapore remaining its core market.

Multiple benefits derived from the investment  Suntec REIT offers an estimated distribution yield of 4.4% for FY26, making the investment immediately earnings accretive. In addition, the REIT manager, under the Tang Organization, has indicated plans to conduct a strategic review of its portfolio. Any value-unlocking initiatives arising from this review could support unit price appreciation and generate potential capital gains for Hongkong Land. Furthermore, Suntec REIT co-owns Marina Bay Financial Centre (Towers 1 & 2) and One Raffles Quay with the newly established Singapore Central Private Real Estate Fund (SCPREF), which is majority-owned and managed by Hongkong Land. This presents potential opportunities for collaboration in the future. Hongkong Land is trading at a 29% discount to our assessed current NAV. We remain constructive on the company&rsquo s evolving corporate strategy to enhance returns. Ongoing share buybacks should provide near-term price support. We maintain our  BUY  rating with a target price of USD10.17.

It says the move aligns with its &lsquo positive outlook and conviction in Singapore&rsquo s prime commercial property market&rsquo

 

[SINGAPORE] Property developer   Hongkong Land   : H78 -4.17% has acquired a 10.8 per cent stake in   Suntec Real Estate Investment Trust   : T82U +4.29% (Reit) for S$541 million in its drive to grow its presence in Singapore&rsquo s prime commercial sector. 

 

In a statement on Thursday (Mar 19), Hongkong Land said the acquisition will enable the group to deploy recently recycled capital into prime, income-producing commercial assets in the city-state.

 

&ldquo This aligns with the company&rsquo s positive outlook and conviction in Singapore&rsquo s prime commercial property market,&rdquo it said. &ldquo The yield derived from the company&rsquo s stake in Suntec Reit will contribute to the diversification of Hongkong Land&rsquo s earnings profile.&rdquo  

 

In a bourse filing the same evening, Hongkong Land said it had initially entered a sale-and-purchase agreement to acquire 145.8 million units in Suntec Reit. This represented a 4.9 per cent interest in the trust. 

 

The company, which later eyed the acquisition of more units, amended the agreement to acquire just under 318 million units of Suntec Reit instead. 

 

Its wholly owned subsidiary ESR Real Estate Investors has been nominated to hold the units once the acquisition is completed.

 

Hongkong Land said its investment in Suntec Reit was made at a discount to the trust&rsquo s net asset value of S$2.03 a unit as at Dec 31, 2025. 

 

&ldquo The company recognises Suntec Reit&rsquo s strategic potential to unlock value across its portfolio and (its) commitment to driving sustainable long-term growth for all unitholders,&rdquo it added. 

 

The move follows the announcement of a comprehensive strategic review of Suntec Reit&rsquo s portfolio by its new sponsor, Tang Organization. The review was carried out to strengthen the performance of the portfolio and to enhance capital efficiency, while also exploring &ldquo disciplined approaches to asset optimisation and recycling&rdquo .

 

Tang Organization said these would support higher distributions in the coming years, and balance the Reit&rsquo s capital management needs and long-term sustainability. 

 

Assets under Suntec Reit&rsquo s portfolio include a 33.3 per cent interest in Marina Bay Financial Centre Towers 1 and 2, and One Raffles Quay &ndash the same assets that Hongkong Land&rsquo s new private fund, Singapore Central Private Real Estate Fund, holds a 33.3 per cent interest.    

 

In an interview with The Business Times in early March, Hongkong Land chief financial officer Craig Beattie said that having recycled 90 per cent of its US$4 billion target and cut net debt by 30 per cent, the group now has ample balance-sheet headroom for new investments.

 

Last September, it sold its Singapore and Malaysian property arm MCL Land for S$738.7 million in cash. Most of the proceeds went into building a &ldquo war chest for future endeavours&rdquo .

FY25 underlying profit from prime properties investment fell 8% y/y to USD458m, broadly in line with our estimate.
Final DPS rose 12% y/y to USD0.19, ahead of our estimate.
c.90% of the 2027 capital recycling target has been achieved. 
Ongoing share buybacks provide additional support. Maintain BUY with USD10.17 TP

Lower contributions from rental and build-to-sell businesses.  Hongkong Land reported FY25 underlying profit of USD461m (+12% y/y), which included property provisions of USD371m and net gains of USD247m on reclassification of properties for sale to investment properties and fixed assets. Excluding these non-cash items, underlying profit would have declined 19% y/y, reflecting weaker contributions from both rental and build-to-sell segments. Stripping out earnings from the build-to-sell business, underlying profit from prime properties investment fell 8% y/y to USD458m. Despite softer earnings, final DPS increased 12% y/y to USD0.19, bringing full-year DPS to USD0.25.

Improving office vacancy.  Attributable gross rental receipts declined 2% y/y, primarily due to reduced contributions from the Central portfolio. On a committed basis, vacancy in the Central office portfolio improved to 6.0% as of Dec-25, down from 6.9% in Jun-25, supported by strengthening leasing demand amid solid equity market performance and a robust IPO pipeline. This compares favourably with the broader Central office market vacancy of 11% as of Dec-25, according to Jones Lang LaSalle. However, negative rental reversions continued to flow through the Central portfolio, resulting in average office rents declining 7% y/y to HKD94 psf. With spot rents in Central showing signs of stabilisation, rental reversions are expected to turn less negative over the coming year.

Growing retail rents.  The transformation of the LANDMARK retail portfolio remains ongoing, with more than 30% of retail space under renovation in 2025. This led to retail rental contributions declining 8% y/y in FY25. While overall tenant sales declined 5%, top-tier customers increased spending by 8% in 2025. Rental reversions remained positive, supported by tenant mix upgrades. Together with a number of new long-term leases commencing during the year, average retail rents increased 12% y/y to HKD236 psf.

Singapore portfolio remains a bright spot.  The Singapore office portfolio continues to perform strongly, supported by tight supply conditions and ongoing flight-to-quality demand. On a committed basis, vacancy stood at 2.7% as of Dec-25. Average rents rose to SGD11.5 psf, up from SGD11.1 psf in 2024, supported by positive rental reversions. On the other hand, investment properties in Mainland China and Macau recorded weaker contributions, mainly due to pre-opening costs for pipeline projects in China and lower rents in Macau arising from ongoing renovations and planned tenant movements. Meanwhile, Ph 2 of Westbund Central in Shanghai was completed during the year. The office component (78,000 sqm) has been fully committed, with anchor tenants including Adidas and Lululemon. The retail component is scheduled to open in mid-2026, with pre-leasing exceeding 75%.

Sharply lower profits from build-to-sell segment.  Hongkong Land has been winding down its build-to-sell portfolio, realising some USD800m from inventory sales, mainly in Mainland China. However, segment contributions declined 44% y/y to USD127m, excluding property provisions.

Strong financial position supports acquisitions.  As of Dec-25, Hongkong Land reported total borrowings of USD6.14bn (Jun-25: USD6.03bn), with an average debt tenor of 5.8 years. 59% of total debt was fixed-rate (Jun-25: 70%) Weighted average borrowing costs improved slightly to 3.3% in Dec-25, from 3.6% in Dec-24. Following the divestment of MCL Land and partial disposal of MBFC Tower 3, net debt declined to USD3.58bn, from USD4.92bn in Jun-25, despite ongoing share buyback activities. This translated into a comfortable gearing ratio of 12% (Jun-25: 17%). With capital recycled from the establishment of the Singapore Central Private Real Estate Fund, Hongkong Land&rsquo s financial flexibility should strengthen further, enabling the company to raise dividends and pursue prime investment opportunities.

Ongoing share repurchase.  Since 2024, Hongkong Land has recycled a total of USD3.6bn, achieving c.90% of its USD4bn capital recycling target by 2027. The share buyback programme was upsized from USD350m to USD650m, representing approximately 20% of recycled capital. Since its launch in Apr-25, the company has repurchased over USD340m worth of shares, reducing the number of outstanding shares by c.2.5%.

BUY with TP of USD10.17.  Over the past three months, Hongkong Land&rsquo s share price has appreciated by 22%. The stock is trading at a 30% discount to our appraised current NAV. We believe the Central office market is bottoming out, supported by improving leasing demand amid stronger capital market activity. In addition, ongoing share buybacks and continued asset recycling should provide near-term share price support, while the development of a fund management platform could justify a higher long-term valuation. By applying a 15% target discount to our Dec-26 NAV estimate, we derive a target price of USD10.17, and maintain our BUY rating.

The group is &lsquo very positive&rsquo on the Singapore market, and looks to expand its presence through the new private fund or development opportunities

[SINGAPORE] Hongkong Land is preparing to ramp up new investments after recycling US$3.6 billion of capital as the property group moves to boost earnings and shareholder returns. 

 

Speaking to The Business Times, Hongkong Land chief financial officer Craig Beattie said that having recycled 90 per cent of its US$4 billion target and cut net debt by 30 per cent, the group now has ample balance-sheet headroom for new investments. 

 

In September last year, it sold its Singapore and Malaysian property arm MCL Land for S$738.7 million in cash. Most of the proceeds went to building a &ldquo war chest for future endeavours&rdquo , such as growing its ultra-premium integrated commercial projects in Hong Kong, Shanghai, Singapore and other Asian gateway cities. 

 

The group expects to see another US$1.5 billion from winding down the remainder of its build-to-sell business over the next three to four years, said Beattie. 

 

Hongkong Land is &ldquo very positive&rdquo on Singapore, and is looking to expand through its private fund or by pursuing development opportunities. &ldquo The fund is quite clearly focused on prime central business district (assets) in Singapore, so anything within that broader area, we are positive about because of the supply and demand dynamics,&rdquo he said. 

 

Among office assets reportedly on the market is Khazanah Nasional and Temasek&rsquo s Marina One, which is said to be asking between S$5 billion and S$6 billion. 

 

Beattie acknowledged that any prime asset in the Marina Bay area would naturally undergo due diligence. &ldquo We&rsquo ll just need to see how things play out,&rdquo he said.  

 

Other markets Hongkong Land hopes to expand into include Seoul, Tokyo and Sydney.  

 

The group is working on &ldquo some early stage opportunities&rdquo , and &ldquo hopefully we can make some positive announcements later this year&rdquo , he added. 

 

Hongkong Land launches S$8.2 billion private fund with portfolio including Asia Square Tower 1 and One Raffles Link

 

An internal restructuring, announced last week, will focus strategy on four core portfolios: the Singapore fund, Hong Kong Central, West Bund in Shanghai, and assets in mainland China. 

 

Each portfolio now has its own chief executive, Beattie said, and some could be structured into funds. These include a private or listed fund in China as assets stabilise.   

Earnings per share stood at US$0.5785 from a loss per share of US$0.6276 in the year before

[SINGAPORE] Property developer   Hongkong Land   : H78 +2.52% on Thursday (Mar 5) posted an underlying profit of US$458 million for the financial year ended Dec 31, down 8 per cent from US$499 million in the previous financial year.

 

The lower underlying profit was primarily due to decreased contributions from the Hong Kong Central portfolio, said the company on Thursday. 

 

It noted that rental reversions for Hong Kong offices were negative in 2025, although leasing sentiment steadily improved as capital market activity picked up.  

 

Contributions for the group&rsquo s Landmark retail portfolio, Hongkong Land&rsquo s flagship retail space, declined 8 per cent from the year prior on lower customer spending, though the ultra-high-net-worth segment logged an 8 per cent year-on-year increase in customer spending, reflecting the continued appeal of Landmark as a premier luxury destination, the group said. 

 

Performance for the Singapore office portfolio was supported by tight supply and sustained flight-to-quality demand in the central business district. Average rents in 2025 rose to S$11.50 per square foot (psf) from S$11.10 psf in 2024, amid positive rental reversions. 

 

The company highlighted a shift in its economic interest in its Singapore portfolio in February 2026, with the launch of Singapore&rsquo s largest commercial real estate private fund, the S$8.2 billion Singapore Central Private Real Estate Fund (SCPREF). 

The fund&rsquo s establishment marked a shift in the group&rsquo s strategy towards fund management. In October 2024, Hongkong Land said that it would exit the build-to-sell residential development business and move towards fund management, with a focus on ultra-premium integrated commercial properties in Asian gateway cities.

 

The mainland China and Macau portfolio logged lower contributions in 2025 due to pre-opening costs incurred for a number of pipeline projects on mainland China, set to launch from 2027 onwards, and lower rents in Macau due to ongoing renovation works and planned tenant movements.

 

 

Hongkong Land launches S$8.2 billion private fund with portfolio including Asia Square Tower 1 and One Raffles Link

 

Net profit stood at US$1.3 billion, reversing from a net loss of US$1.4 billion in FY2024.

 

Earnings per share stood at US$0.5785, against a loss per share of US$0.6276 in the year before. 

 

The board is proposing a final dividend of US$0.19 a share, payable on May 13, subject to approval at the group&rsquo s upcoming annual general meeting on May 7. 

 

If approved, it would take the full-year dividend to US$0.25, up 9 per cent from US$0.23 in the year before. 

 

Hongkong Land expects positive momentum in Hong Kong and Singapore to continue into 2026, though trading conditions in mainland China are likely to remain challenging.  

 

The group noted that rental reversions for the Hong Kong office portfolio are set to remain negative, although the magnitude of decline is expected to narrow. 

 

In Singapore, it intends to pursue growth through the SCPREF, while managing costs and improving the operating efficiency of its existing portfolio. It is &ldquo actively assessing&rdquo new integrated commercial property projects alongside acquisition opportunities to grow the SCPREF. 

 

The group expects 2026&rsquo s underlying profit to remain &ldquo largely unchanged&rdquo from 2025. 

 

Part of the Jardine Matheson Group, Hongkong Land has a primary listing on the London Stock Exchange and secondary listings in Singapore and Bermuda.   

 

• Singapore:
  • GIC Private Limited (GIC):  One of the world' s largest sovereign wealth funds, established in 1981 to manage Singapore' s foreign reserves.
  • Temasek Holdings:  Founded in 1974, it is a major investment company with a diverse global portfolio.
• Malaysia:
  • Khazanah Nasional Berhad:  The strategic investment fund of the Government of Malaysia, managing assets in key industries.
• Indonesia:
  • Indonesia Investment Authority (INA):  The country' s sovereign wealth fund focused on attracting investment for infrastructure and sustainable projects.
  • Danantara Indonesia:  A newer, second sovereign fund launched to further drive capital investment.
• Vietnam:
  • State Capital Investment Corporation (SCIC):  Manages state capital in key enterprises.
• Brunei:
  • Brunei Investment Agency (BIA):  A government-owned investment agency.
• Philippines:
  • Maharlika Investment Fund:  The Philippines' first sovereign wealth fund.
• Timor-Leste:
  • Timor-Leste Petroleum Fund (PT):  Manages the country' s oil and gas revenue. 
    Sovereign Wealth Fund Institute | SWFI  +7