EarningsQ4 2026 Earnings Report
MX:16N Q4 2026 EPS Results
Actual EPS$9.02
Consensus EPS$9.26
Beat/MissMissed by -$0.24
One Year Ago EPS$9.31
MX:16N Q4 2026 Revenue Results
Actual Revenue$95.84B
Expected Revenue$98.93B
Beat/MissMissed by -$3.08B
YoY Revenue Growth+8.91%
Earnings Announcement Details
QuarterQ4 2026
Date09/09/2026
TimeAfter Close
Conference CallWednesday, September 9, 2026
MX:16N Upcoming Earnings
Sun Hung Kai Properties's next earnings date is estimated for February 25, 2027, based on past reporting schedules.
Q4 2026 Earnings Call Audio
MX:16N Q4 2026 Earnings Call
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Q4 2026 Earnings Slide Deck
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. The group reported higher underlying and reported profit, a stronger balance sheet, a higher dividend, strong Hong Kong contracted sales, improving Hong Kong development margins, resilient retail and office occupancy, hotel profit growth, and substantial new project and leasing pipelines. The main cautions were the decline in other businesses profit, modest Hong Kong rental growth, uneven office-market recovery, a lower FY2027 Hong Kong sales target, competitive land costs limiting near-term margins, Mainland office rental pressure, regulatory-related cash collection delays, and competition and oversupply in Mainland retail. Highlights significantly outweighed lowlights.Company Guidance
Underlying and Reported Profit Growth
For the year ended June 2026, underlying profit was $22.9 billion, up 4.6% year-on-year, mainly driven by higher profits from Hong Kong property development and lower finance costs. Reported profit was $21.4 billion, up 11.1% year-on-year, after including realized value gains from the sale of investment properties and net revaluation profit.
Higher Dividend Per Share
The Board recommended a final dividend of $2.93 per share, up 4.6% from $2.80 last year. Including the interim dividend of $0.98, full-year dividend per share will be $3.91.
Stable Operating Profit and Resilient Recurring Income
Total operating profit was $32.2 billion, stable year-on-year. Leasing and other recurring income remained resilient during the year.
Improved Financial Position
Net debt stood at $67.6 billion as of June 30, 2026. The gearing ratio improved to 10.7% from 13.5% in December 2025, while interest cover increased to 8.5x from 6x a year ago. Net finance costs decreased 33% year-on-year due to lower debt and borrowing costs.
Hong Kong Land Bank Expansion
The Hong Kong land bank totaled approximately 56.4 million square feet of attributable GFA at the end of June 2026. The group added three sites during the year and was awarded the Tuen Mun A16 Station Package 2 tender after the financial year-end. Package 2 will provide over 5,500 units to be developed and sold in phases.
Strong Hong Kong Property Development Profit Growth
Recognized profit from Hong Kong property development reached $4.6 billion, up 44% year-on-year. Margins improved in the second half of FY2026, bringing the full-year margin to 11%; including underlying profit from Dynasty Court and Shouson Peak, the margin was 16%. Management expects book sales margins to improve gradually.
Hong Kong Contracted Sales Exceeded Target
The group achieved approximately $38.1 billion of Hong Kong contracted sales during the year, exceeding its target. About $22.8 billion of contracted sales remained unrecognized, including approximately $21 billion expected to be recognized in FY2027.
Hong Kong Residential Market Recovery
Management said the Hong Kong residential market continued to recover, with active primary-market transactions. It expects the market to perform solidly for the rest of the year and the next, supported by incoming talents and students, sustained residential accommodation demand, declining developer inventory for sale, and limited supply of high-quality developments.
Broad Hong Kong Residential Launch Pipeline
Over the next 10 months, the group plans to launch projects including SIERRA SEA Phase 2C, Tung Shing Lei phases 1A and 1B, Tai Wai, Kwu Tung Phase 1, and City One Shatin, while continuing to sell luxury units at Cullinan Sky, Cullinan Harbour, Victoria Harbour, and related projects.
Hong Kong Retail Portfolio Performance
Hong Kong retail occupancy reached 95%, tenant sales increased, and tenant sales growth was supported by strong demand for jewelry and watches. Tourist-area malls outperformed as inbound tourism continued to grow.
Strong Loyalty Program Growth
Overall member spending through The Point loyalty program increased 27% year-on-year, with VIP member spending growing even more strongly.
Stable Hong Kong Office Occupancy
Overall Hong Kong office occupancy remained stable at 90%. IFC and ICC achieved high occupancy, supported by new leases from large companies and in-house expansion. IFC spot rents were trending upward and occupancy was described as close to 100%, while ICC occupancy was around 92%.
West Kowloon Leasing Progress
IGC office towers were completed during the year, with UBS taking one tower. AXA, AIA, Sun Life, FWD, banks, asset managers, funds, and other insurance companies have committed to leasing space. Management expects IGC to reach full occupancy through a phased approach, with FY2027 representing the initial revenue base and meaningful ramp-up in subsequent years.
Artist Square Towers Anchor Commitment
Artist Square Towers is on track for completion in 2027. JPMorgan has committed to 250,000 square feet, representing 37% of the project's total office GFA.
Stage IGC Mall Leasing and Opening Plans
Stage IGC Mall will open in phases from late 2026. Almost all space in Phase 1 was fully let, with the initial phase providing food and beverage and other retail options for office tenants, high-speed rail passengers, and visitors.
Hong Kong Commercial Cluster Development
IGC, Artist Square Towers, ICC, two luxury hotels, and a mall are being developed into a commercial cluster spanning approximately 8 million square feet in West Kowloon. The group is also building an AI property management center to manage ICC, IGC, and the broader West Kowloon portfolio.
Mainland Property Development Sales Growth
Recognized property sales on the Mainland increased to approximately $10 billion due to higher sales volume, while operating profit was $3.7 billion. Approximately $0.8 billion of contracted sales remained unrecognized, all expected to be recognized in FY2027.
Mainland Rental Income Growth
Mainland gross rental income increased 5.2% to approximately $6.5 billion, or 1.5% in RMB terms to RMB5.6 billion. Growth in the retail portfolio offset a decrease in office rental.
Mainland Integrated Project Expansion
The group increased its stake to fully own IGC Mall in Guangzhou and Conrad Guangzhou Hotel. Parc Central Guangzhou South is scheduled to open by the end of 2026, while a new mall at Hangzhou IFC is planned to open in phases from the second quarter of 2027.
ITC Shanghai Development Progress
ITC Tower B in Shanghai was completed and attracted interest from major companies. Amazon is taking more than 100,000 square feet and will operate seven laboratories there. ITC Mall is opening in phases from the second half of 2026, and meaningful profit contribution is expected in the later part of 2027 as more of the mall opens and rents stabilize.
Hotel Business Growth
Hotel portfolio revenue increased 4% year-on-year to $5.5 billion, while operating profit increased 18% to $728 million from $615 million. Hong Kong luxury hotels outperformed, and Ritz-Carlton Shanghai Pudong achieved record-high room rates.
Mainland Residential Margin Outlook
Management expects a healthy double-digit mid-teens post-tax margin for Mainland development projects overall. It said the group's land acquisition timing was favorable because the last land purchases were made in 2021 rather than during the market high.
Northern Metropolis Project Pipeline
The group is progressing with eight Northern Metropolis projects that are expected to provide approximately 10,000 residential units along with commercial and transport amenities.
Continued Investment and ESG Commitment
The group remains committed to ESG and plans to continue investing in landmark projects, technology, AI-enabled property management, EV fast chargers, and modern, customer-centric properties and services.
Strong Capital Allocation Capacity
Management said there was no plan to issue new shares, convertible bonds, or warrants because gearing was only about 10% of equity. The group intends to retain earnings to invest when opportunities arise and may expand successful retail clusters when assets can be acquired at reasonable prices.
MX:16N Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed