Luxury Retail Sales Remain a Tailwind for Hang Lung Properties in First Half 2021

Hang Lung Properties posted a solid first-half result with underlying net profit increasing 11% year on year to HKD 2.2 billion. Total rental revenue increased 19% on-year to HKD 4.97 billion. The stronger result was driven by continued growth in its properties in mainland China, particularly in the luxury segment. Luxury retail sales saw a triple-digit increase against the same period last year, while the sub-luxury segment saw mid-double-digit growth. While retail sales continue to benefit from closures of borders and limited international travel, the group’s execution is also a key driver with the opening of Heartland 66 in Wuhan and the upgrade of Olympic 66 in Dalian. The latter is expected to see additional luxury brands moving into the mall.