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Hong Kong developers likely to declare higher dividends this year amid ‘healthier liquidity’, S&P report says
- Twelve developers are forecast to pay out US$25.2 billion, an increase of 13.3 per cent from a year ago, says the report
- ‘We expect the industry leaders … to remain resilient and pay stable-to-higher dividends for the rest of the [financial year], says S&P analyst
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Hong Kong’s property developers are likely to declare higher dividends this financial year, according to a report from S&P.
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Twelve of them are forecast to pay out a combined US$25.2 billion, an increase of 13.3 per cent from a year ago, said the report.
“We expect the industry leaders, especially the Hang Seng Index participants to remain resilient and pay stable-to-higher dividends for the rest of the [financial year], owing to more diversified asset portfolios and healthier liquidity,” said Sophy Zhao, an analyst at S&P Global Market Intelligence.
“Companies such as Henderson Land, New World Development, Sun Hung Kai Properties (SHKP), Hang Lung Properties and Sino Land, are expected to declare dividends this year.”
The estimated dividend payout, however, is still below the record US$27.6 billion they paid in 2020, data from S&P shows, and a whisker behind the US$25.8 billion they shelled out the year before that.
So far, two of the city’s largest property companies – CK Asset and Wharf Real Estate Investment Company (Wharf Reic) – have reported mixed fortunes for the first half of the year.
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