Sun Hung Kai Properties Limited (HKEX: 0016) presented its FY2026 financial results on September 10, 2026, highlighting a 4.6% rise in profit attributable to shareholders to HK$22.85 billion, up from HK$21.86 billion in FY2025. Reported profit climbed 11.1% to HK$21.43 billion, driven by improved operational efficiency and debt management. The company’s gearing ratio fell sharply to 10.7% as of June 30, 2026, down from 15.1% a year earlier and a peak of 21.2% in December 2023, reflecting a 47% reduction in net debt to HK$67.62 billion. Net finance costs decreased 33% year-over-year to HK$2.95 billion, with the weighted average interest rate on borrowings declining to 3.0% from 3.7% in FY2025. Operating profit remained relatively stable at HK$32.16 billion, though segment performance varied significantly between Hong Kong and mainland China developments.
In Hong Kong, property development profits surged 44% to HK$4.62 billion, supported by strong sales of major projects such as SIERRA SEA Phases 2A & 2B (HK$9.2 billion), Cullinan Sky Phase 2 (HK$4.8 billion), and NOVO LAND Phases 2A, 3A & 3B (HK$4.1 billion). Contracted sales for FY2026 exceeded the internal target of HK$30 billion, reaching HK$38.1 billion, with 46% of sales from completed projects. The company also secured a tender for the Tuen Mun A16 Station Package Two development, expected to deliver over 5,500 residential units. Meanwhile, mainland China development revenues declined 28% to HK$3.67 billion, though contracted sales grew 19% to HK$10.05 billion, driven by projects like ITC Shanghai and Hangzhou IFC. Rental operations contributed HK$18.57 billion, with Hong Kong rental income slightly down at HK$12.82 billion but mainland rental income rising 6.2% to HK$5.17 billion. Hotel operations expanded 18.4% to HK$728 million, reflecting growth in revenue to HK$5.46 billion.
The company’s land bank expanded with the acquisition of three sites totaling 2.055 million square feet of attributable gross floor area (GFA). Hong Kong’s land bank now totals 56.4 million square feet, with 39.2 million square feet of completed properties (34% retail, 31% office) and 17.2 million square feet under development (73% residential). Mainland China’s land bank stands at 64.7 million square feet, featuring a mix of completed and development projects. Land resumptions in FY2026 generated HK$1.1 billion in compensation, with future resumptions expected to yield an additional HK$2.2 billion.
Sustainability efforts advanced significantly, with Sun Hung Kai achieving 100% of its FY2030 targets by FY2025. The company inaugurated its Hong Kong’s largest privately funded solar farm on landfill in Tseung Kwan O, generating 1.2 million kWh annually. Nearly 27,000 solar panels were installed across buildings and construction sites, and the EV fast charger network expanded to over 140 chargers across 18 districts. The company also secured its inclusion in the Dow Jones Best-in-Class World Index, reflecting its leadership in environmental, social, and governance (ESG) practices. The final dividend for FY2026 was recommended at HK$2.93 per share, up 4.6% from HK$2.80, with total payouts reaching HK$3.91 per share—consistent with its target payout policy of 40% to 50% of earnings per share.
The company’s debt maturity profile remains balanced, with 15% of debt due within one year, 12% between one and two years, and 52% between two and five years. Looking ahead, Sun Hung Kai set a FY2027 Hong Kong contracted sales target of HK$33 billion, with major projects including Stage IGC, ITC Mall, Parc Central, One ICC, and The Royal Garden Kowloon East scheduled for completion in late 2026 or FY2027. The company’s stock closed at HK$15.24 on September 10, up 1.26% from the previous close of HK$15.05.
