Page 27 - Hang Lung Properties 2012 Annual Report

ᘩنᐑྤ˙ࠦdཀ̘ɤϋԸlzήɓԬਠุ
ήପਠϞהҷආdШኽҢ ࡁ൙Пd͉ණྠ
ʥ್ኹϞ޴຅ٙჯ΋Ꮄැfவ຅್ܸ݊Ң
ࡁኹϞධ̹ͦٙ۬ϾԊdϾவၾҢࡁɰ௰
ࢹࢹ޴ᗫfҢࡁᅅֱίϤഃ̹۬ϓ̌ᒅɝ
ɓԬЗໄ௰Գٙή෯f̥ࠅҢࡁܲ๫ɓ஫
ٙ௰৷ᅺ๟͂ி΢ࡈධͦdϾlzή̹ఙঐ
ڭܵ਺ᖢdҢࡁᏐ̙ԮϞᐆᙻٙ͊Ըf
ν͉ɛཀֻࠑה d͉ʮ̡ତʊආɝɓ ࡈอ
ٙᄣ ڗಂf͊ԸᅰϋdίᘱᚃيЍһεή
෯ٙΝࣛdҢࡁਗ਼˚ूਖ਼ ء׵ᐄ༶ʈЪf
ΪϤd͉ɛ͊̀ც ࠅ ᅠᄳ ڗᇐٙ ߧٰ؇
ՌdઓࡊϞცࠅҢึ૩ʔ೓፝ࠠܽᔚ୦f
ɚཧཧɘϋʕd͉ɛಀᅠሞɚཧɓཧϋ˾
݊㛬ඤරږࣛಂٙක֐fҢ ࡁЇʦʥ್਺
ܵவ ࡈᝈᓃdࡡΪ݊ҢࡁІɚཧཧʞϋ˸
ԸίlzήٙהϞрɢѩක֐՟੻ϓ ؈fε
ϋٙɺήᒅໄձ݄ʈd͍௔ᚃ͂ி̈εධ
˰ޢॴਠุၝΥධͦ˸Զ̈ॡf͟׵΢ධ
ͦਗ਼׵͊Ըᅰϋ௔ᚃක࿇dϾอධͦˈՉ
ਠఙஷ੬ც ࠅɓЇՇ ࡈॡ༣մಂ˙ᒈᖢ
֛dΪϤவࡈරږࣛಂਗ਼ίவɤϋ஼Ӊྼ
ତf౬̩༑Ⴍdᔮϗಂܸ˚̙ܙf
ೌ̙щႩdҢࡁତʊක֐޶Ցϗϓfอධ
ͦනлໝϓd዆᜗ॡږܵᚃɪʺiॡ ږᗙ
ყлᆗϞהҷഛdॡ ږϗूଟᖢӉɪ౮f
һᔮସٙ౻ۃ ຾ʊίૐd̥ ࠅҢࡁᖢςঘ
೻dрɢੂБd֛ঐ੻Ցᔮ၂ϓ؈f
೵ಂϾԊdԸІ࠰ಥٙҳ༟ϗूᏐ̙ ڭܵ
ᖢ֛fॡ ږ ᄣڗ ଟᏐၾ̘ϋ޴߰dவ݊
̙˸ટաٙflzή˙ࠦdҢࡁҎૐཧਯᕘ
ึΫʺdהϞيุٙॡ ږ̙ૐ჈ᄣfอਠ
ఙ̙ࣘආɓӉ౤ʺᐄ༶ࣖଟd๐މ л੭Ը
Ⴂूf
As to the competitive landscape, a few Mainland players in commercial
real estate have in the past decade improved somewhat, although
in our assessment we still hold a considerable lead. Naturally what
is of actual significance to us are only the cities in which we have
developments. Fortunately, there we were able to purchase some of
the best located land. As long as we build out those projects to our
highest standards and provided that the Mainland market holds up,
our future should be bright.
As mentioned previously, now the Company has entered a new phase
of progress. For the coming years, while continuing to hunt for more
land, we will increasingly concentrate on operations. As such, there will
be less need to pen lengthy pieces to shareholders although I will not
hesitate to revert to my old habit when necessary.
In mid 2009, I wrote that the 2010s should herald Hang Lung’s golden
era. We still hold strongly to that view. The reason is that all our
efforts on the Mainland since 2005 are beginning to bear fruit. Years
of land acquisitions and construction have paved way for world class
commercial complexes to be erected and rented. As projects will be
progressively opened over the years and it usually takes one to two
rental cycles to stabilize a new facility especially a mall, the golden
era will dawn upon us gradually over this decade. In other words, full
harvest is ahead.
There is no denying that we are beginning to taste the fruits of our
efforts. New developments are being successfully completed and
overall rents have been rising. Rental margin has improved and rental
yield is coming through. Better yet, much more can be expected. As
long as we hold our course steady and diligently execute, we shall have
a bountiful harvest.
In the more immediate term, our investment income from Hong Kong
should perform satisfactorily. Rental growth rate should approximate
that of the past year which is quite acceptable. On the Mainland, we
are hopeful that retail sales will pick up and rents from all our facilities
will rise somewhat. Operational efficiencies for the newer malls are
anticipated to be further enhanced thus strengthening the bottom line.
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