Henderson Land profit jumps 41% on HK recovery

Henderson Land Development posted a 41 percent year-on-year jump in six-month net profit to HK$4.09 billion ($521 million). This growth was fueled by an influx of buyers from mainland China and a recovering stock market which bolstered performance in the local home market. According to results filed with the Hong Kong stock exchange on Thursday, the company's revenue for the first half of 2026 rose 80.1 percent compared to the same period a year earlier to reach HK$17.2 billion. The developer took in HK$11.8 billion from property development in Hong Kong, representing a massive 212 percent increase from the first half of 2025.

Growth in Hong Kong demand

The company saw improved performance across both condominium sales and commercial projects within the city. Co-chairmen Peter and Martin Lee noted in a company statement that despite the outbreak of war in the Middle East during the first quarter of 2026 adding global uncertainty, Hong Kong continued to attract enterprises for capital raising and initial public offerings. The builder capitalized on these favorable local conditions to grow contracted sales by 188 percent to HK$18.1 billion. Of that total, HK$6.4 billion is expected to be recognized as revenue in the second half as projects are completed.

Hender Land tied much of this success to customers from out of town. Hong Kong introduced policies designed to welcome more workers and students from mainland China. The statement added that government initiatives regarding incoming talents and international students boosted housing demand and sustained local property market momentum. The company expects to have approximately 3,400 residential units available for sale in Hong Kong during the second half of the year, including 1,718 units from the launch of eight new projects.

Commercial leasing and land gains

The developer also benefited from a pre-tax one-off gain of HK$1.57 billion from compensation for undeveloped land in the New Territories taken back by the government. This was compared to HK$240 million of such gains in the first half of 2025. Regarding its commercial portfolio, gross rental income from property leasing in Hong Kong grew 3 percent to HK$3.5 billion. Average occupancy in major investment properties edged up 1 percentage point to 94 percent.

The Henderson building in Central, completed in 2024, achieved occupancy of over 90 percent by the end of June. This was an increase from a committed leasing rate of 80 percent a year prior. The IFC complex, where Henderson Land holds a 40.77 percent stake, generated about HK$837 million or 23.8 percent of the attributable gross rental income. While the company recognized a HK$981 million decrease in fair value on investment properties and those under development, underlying profit excluding fair value changes grew by 66 percent to HK$5.07 billion.

Mainland market challenges

While the Hong Kong market has rebounded, Henderson Land's mainland property development revenue fell to RMB 898 million ($134 million). This is a 59 percent decrease from a year earlier as China home sales continue to decline. The company suffered an attributable pre-tax loss from mainland property sales of RMB 377 million, up from RMB 100 million the previous year. The firm indicated it would focus on existing projects in mainland China after buying no new sites in the first half of the year. Attributable net rental income before tax for mainland China fell 10 percent to HK$594 million from HK$661 million a year earlier.