Advertisement
New World Development says lower income in Hong Kong under rent deferral plan will be offset by strong revenue in mainland China
- Developer’s interim underlying profit rises 4.8 per cent from a year ago for the six months to December
- Confident of high single-digit growth in underlying profit, Adrian Cheng says
Reading Time:3 minutes
Why you can trust SCMP
Hong Kong property developer New World Development (NWD) said lower rent income following a government plan allowing small firms to defer payments for up to six months will be offset by strong revenue in mainland China.
Advertisement
The locally-listed developer’s interim underlying profit, excluding changes in the valuations of properties, rose 4.8 per cent from a year ago to HK$3.9 billion (US$499.4 million) for the six months to December, it said on Friday. Its revenue remained flat at HK$35.6 billion. It has proposed an interim dividend of HK$0.56 per share, same as a year ago.
“I believe our lower rental income arising from this measure will be offset by our growth in rental income in China,” Adrian Cheng Chi-kong, NWD’s executive vice-chairman and CEO, said during an online results briefing.
An unprecedented law designed to keep Hong Kong landlords from chasing tenants for falling behind on rent will apply to more than 19 sectors hit hard by the fifth wave of coronavirus infections, Financial Secretary Paul Chan Mo-po said on Thursday. The law will allow small and medium-sized enterprises in these industries, which include catering and retail, to delay rent payments from January for up to six months, Chan said.
The government policy will affect NWD’s rent income, but the deferral will be valid for three to six months, Cheng said. After that, “tenants still have to pay rent”, he added.
Advertisement
Advertisement