Hang Lung Properties Ltd. (101), the Hong Kong developer investing more than $8.5 billion building malls in mainland China, said 2013 underlying profit dropped 18 percent as the company sold fewer investment properties.
Profit excluding revaluation gains and deferred taxes fell to HK$5.05 billion ($651 million) from HK$6.18 billion a year earlier when it had a one-time gain, Hang Lung said in a filing today. That compares with the HK$4.79 billion average estimate of 18 analysts surveyed by Bloomberg. Sales rose to HK$9.14 billion from HK$7.37 billion, helped by rental growth in mainland China, the company said.
Chairman Ronnie Chan has been leading Hang Lung to expand in mainland China since the late 1990s, betting that rising consumption by the country’s expanding middle class will fuel demand for high-end shopping malls. The developer’s new shopping mall in Tianjin, Riverside 66, is scheduled to open in the second half, while other projects under development are progressing as planned, according to the company.
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