Hongkong Land Revenue Rises
By 15% in the First Six Months

Hongkong Land Holdings Ltd., which owns prime office buildings in Hong Kong's Central business district, reported that net profit for the first half fell 23% to US$923 million from $1.2 billion a year earlier.

The company said underlying profit rose 11% on higher office rental income. Analysts have said they prefer to look at the underlying profit of Hong Kong property companies because regular revaluations of properties in the city distort net-profit figures.

Hongkong Land, a unit of Jardine Matheson Holdings Ltd., a Singapore-listed conglomerate, said underlying profit was $117 million, up from $105 million a year earlier, after excluding exceptional items.

The Singapore and London-listed company reported a surplus of $914.4 million from revaluation of its investment properties in the first-half, compared with $1.31 billion a year earlier.

Revenue for the first-half rose 15% to $208 million from $180.2 million. Rental income from commercial property increased to $159.9 million from $134.1 million, but profit on residential properties in Hong Kong and mainland China was lower.

Separately, hotel operator Mandarin Oriental International Ltd., in which Jardine Matheson Holdings holds a 75.12% stake, said its first-half net profit fell 12% to $48.7 million from $55.3 million, largely because one of its top Hong Kong properties was closed for renovation.

The company said the closure of its flagship Hong Kong hotel, the Mandarin Oriental, would continue to affect earnings until the property reopens, which is scheduled for late September. The impact of the closing was partially offset by contributions from other hotels in the group.

Mandarin Oriental recently disposed of its interest in The Mark, New York, which boosted first-half profit by $35 million.

The company said revenue rose 2.1% to $398.4 million from $390.1 million a year earlier.

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