H.k.land Regulatory News (HKLD)

27 Jul 2006 10:05

Hongkong Land Hldgs Ld27 July 2006 To: Business Editor 27th July 2006 For immediate release The following announcement was today issued to the London Stock Exchange. HONGKONG LAND HOLDINGS LIMITEDINTERIM REPORT 2006 Highlights • Hong Kong office rents and values rise further, though at a slowing pace • Adjusted net asset value per share# up 11% • MCL Land becomes a 77%-owned subsidiary • Interim dividend up 50% to USc3.00 per share "Although rental increases in Hong Kong's commercial market are slowing, theoutlook continues to be underpinned by the lack of supply in Central. The continuingpositive reversion cycle and our pipeline of development sites will produce further improvements in earnings next year." Simon Keswick, Chairman27th July 2006 Results-------------------------------------------------------------------------------- (unaudited) Six months ended 30th June 2006 2005 Change US$m US$m %--------------------------------------------------------------------------------Underlying profit attributable to shareholders 117 105 +11Profit attributable to shareholders 923 1,195 -23Shareholders' funds 8,005 7,215* +11Adjusted shareholders' funds# 9,547 8,592* +11-------------------------------------------------------------------------------- USc USc %--------------------------------------------------------------------------------Underlying earnings per share 5.26 4.74 +11Earnings per share 41.49 53.68 -23Interim dividend per share 3.00 2.00 +50-------------------------------------------------------------------------------- US$ US$ %--------------------------------------------------------------------------------Net asset value per share 3.60 3.24* +11Adjusted net asset value per share# 4.29 3.86* +11--------------------------------------------------------------------------------* At 31st December 2005 # In preparing the Group's financial statements under InternationalFinancial Reporting Standards ('IFRS'), the fair value model for investment properties has been adopted. In accordance with this model, theGroup's investment properties have been included at their open marketvalue as determined by independent valuers. As there is no capital gainstax in territories where the Group has significant leasehold investmentproperties, no tax would be payable if those properties were to be soldat the amounts included in the financial statements. In relation toleasehold investment properties, however, IFRS require deferred tax onany revaluation amount to be calculated using income tax rates. This isin contrast to the treatment for the revaluation element of freeholdproperties where IFRS require capital gains tax rates to be used. As Management considers that the Group's long leasehold properties havevery similar characteristics to freehold property, the adjustedshareholders' funds and adjusted net asset value per share information ispresented on the basis that would be applicable if the leaseholdproperties were freeholds. The adjustments made add back the deferred taxprovided in the financial statements that would not have been provided ifthe properties were freeholds, which in any event would not be payable ona sale of the properties. The interim dividend of USc3.00 per share will be payable on 22nd November 2006to shareholders on the register of members at the close of business on 18th August 2006. The ex-dividend date will be on 16th August 2006, and the shareregisters will be closed from 21st to 25th August 2006, inclusive. HONGKONG LAND HOLDINGS LIMITEDINTERIM REPORT 2006 OVERVIEW Firm demand for office space in Hong Kong continued in the first half of 2006.With diminishing vacancy both in the Central Business District and decentralisedmarkets, leasing activity has decreased. The pace of growth in capital valueshas also slowed. PERFORMANCE Underlying profit rose 11% to US$117 million for the first half of the year asnet rental income rose strongly on positive reversions. Residential profits inHong Kong and China were lower on fewer completions, although this was more thancompensated for by the first contribution from MCL Land, which included negativegoodwill arising on acquisition. The overall result, however, also reflected thecost of higher net financing charges as interest rates increased and debt levelsrose following the MCL Land investment in the first quarter. The independent valuation of the Group's investment portfolio led to a surplusnet of deferred tax of US$759 million being taken to profit and loss account.This reflected a 10% increase in the portfolio's value, as the impact of risingrents was only partially offset by higher capitalisation rates. The reportedprofit of US$923 million was 23% below the comparable period in 2005 because ofthe larger revaluation surplus booked a year ago. In view of the positive outlook for cash flow and the wish of the Board to improve the balance between the interim and final distributions, the Directors have declared an interim dividend of USc3.00 per share, up 50%. GROUP REVIEW Commercial PropertyAs vacancy in Hong Kong's Central district fell to low levels, demand has beenincreasingly satisfied in decentralised districts which are now experiencingequally low vacancy. The resulting high citywide occupancy continues to underpinrents. At the end of June, the vacancy in the Group's Hong Kong office portfoliowas 5%, while its retail portfolio was fully committed. York House, the Group'snew commercial building on Queen's Road Central, received its temporary occupation permit just after the half year closed. The retail component is fully pre-let, while the office portion of the building is now being marketed ahead of an expected occupation permit in the fourth quarter of 2006. In Singapore, One Raffles Quay, owned by a consortium in which the Group has aone-third interest, is now 99% committed. The South Tower received its temporaryoccupation permit in April, and tenants are currently fitting out, while theNorth Tower is expected to receive its permit in the fourth quarter of thisyear. The neighbouring Business and Financial Centre site, acquired by the sameconsortium group, has received approval of its masterplan and constructionshould begin before the year-end. Residential PropertyThe Central Park development in Beijing is completing construction of its thirdphase of apartments. Profits from this phase, which was some 90% pre-sold inprevious years, will be booked when the units are handed over to buyers in mid2007. Phase IV is already under construction and will begin pre-selling later inthe year. Physical completion is projected for 2008. Activity in Hong Kong's residential market was subdued in the first half, exceptfor the super-luxury sector. The Grosvenor Land property fund continued itsdisposal programme and sold its development on the Peak in the second quarter. MCL Land, now a 77%-held subsidiary, made good progress in both sales and siteacquisitions during the half year. Its portfolio of developments underconstruction in Singapore was some 93% pre-sold at the end of June, while sixnew sites have been acquired comprising more than 100,000 sq. m. of developablegross floor area. The profit contribution from MCL Land, which did not completeany developments in the first half, arose predominantly from the sale of a sitein Malaysia and the booking of the negative goodwill on acquisition, whichreflected the excess of the valuation of the MCL Land shares over theacquisition cost. In Macau, the Group's joint venture with Shun Tak has begun construction on itssite at Nam Van Lake. The first phase of apartments is expected to be launchedwithin the next 12 months. Completion of the residential and commercialcomponents is projected for 2008/2009. FinanceIn June, the Group completed a substantial financing, when it signed a 7-yearcommitted HK$7.5 billion syndicated loan facility. The proceeds will be usedlargely to refinance more expensive existing funding lines. Financing chargesrose however, because of higher debt levels and increased interest rates. TheGroup continues to hedge its exposure to rising rates, and at the half year 44%of its gross debt was at fixed rates. OUTLOOK In conclusion, the Chairman, Simon Keswick said, "Although rental increases inHong Kong's commercial market are slowing, the outlook continues to beunderpinned by the lack of supply in Central. The continuing positive reversion cycle and our pipeline of development sites will produce further improvements in earnings next year." --------------------------------------------------------------------------------Hongkong Land Holdings LimitedConsolidated Profit and Loss Account-------------------------------------------------------------------------------- (unaudited) Year ended Six months ended 31st 30th June December 2006 2005 2005 US$m US$m US$m--------------------------------------------------------------------------------Revenue (note 2) 208.0 180.2 367.6Cost of sales (48.4) (42.6) (95.7) ------ ------ ------Gross profit 159.6 137.6 271.9Other income 21.1 - -Administrative and other expenses (14.9) (12.5) (28.2) ------ ------ ------ 165.8 125.1 243.7Increase in fair value of investment properties 914.4 1,306.1 2,367.9Asset impairment reversals and disposals (note 3) (6.5) 1.0 11.1 ------ ------ ------Operating profit (note 4) 1,073.7 1,432.2 2,622.7Net financing charges (37.4) (11.5) (39.3)Share of results of joint ventures (note 5) 56.0 7.8 10.0 ------ ------ ------Profit before tax 1,092.3 1,428.5 2,593.4Tax (note 6) (167.5) (233.8) (532.6) ------ ------ ------Profit for the period 924.8 1,194.7 2,060.8 ------ ------ ------Attributable to:Shareholders of the Company 923.4 1,194.6 2,060.5Minority interests 1.4 0.1 0.3 ------ ------ ------ 924.8 1,194.7 2,060.8 ------ ------ -------------------------------------------------------------------------------------- USc USc USc--------------------------------------------------------------------------------Earnings per share (note 7) - basic 41.49 53.68 92.58 - diluted 39.92 53.68 92.48Underlying earnings per share (note 7) - basic 5.26 4.74 8.42 - diluted 5.31 4.74 8.44-------------------------------------------------------------------------------- --------------------------------------------------------------------------------Hongkong Land Holdings LimitedConsolidated Balance Sheet-------------------------------------------------------------------------------- (unaudited) At 31st At 30th June December 2006 2005 2005 US$m US$m US$m--------------------------------------------------------------------------------Net operating assetsTangible assets (note 8) Investment properties 10,752.8 8,652.1 9,778.7 Others 13.0 11.6 12.3 -------- -------- -------- 10,765.8 8,663.7 9,791.0Joint ventures 846.5 338.2 638.8Other investments 13.4 0.3 49.5Deferred tax assets 0.7 1.4 1.6Pension assets 10.7 9.6 10.8Other non-current assets 9.2 7.5 9.1 -------- -------- --------Non-current assets 11,646.3 9,020.7 10,500.8 Properties for sale 641.8 69.1 87.2Debtors, prepayments and others 192.0 176.2 135.8Bank balances 832.1 659.3 1,092.8 -------- -------- --------Current assets 1,665.9 904.6 1,315.8 -------- -------- --------Creditors and accruals (384.3) (204.6) (243.1)Current borrowings (note 9) (288.6) (80.0) (379.0)Current tax liabilities (19.2) (14.8) (8.6) -------- -------- --------Current liabilities (692.1) (299.4) (630.7) Net current assets 973.8 605.2 685.1Long-term borrowings (note 9) (2,956.4) (2,209.2) (2,568.6)Deferred tax liabilities (1,555.6) (1,107.1) (1,400.6)Other non-current liabilities (5.3) - - -------- -------- -------- 8,102.8 6,309.6 7,216.7 -------- -------- --------Total equityShare capital 229.5 229.5 229.5Revenue and other reserves 7,853.5 6,156.6 7,063.5Own shares held (77.7) (77.7) (77.7) -------- -------- --------Shareholders' funds (note 10) 8,005.3 6,308.4 7,215.3Minority interests 97.5 1.2 1.4 -------- -------- -------- 8,102.8 6,309.6 7,216.7 -------- -------- ---------------------------------------------------------------------------------------- US$ US$ US$--------------------------------------------------------------------------------Net asset value per share (note 11) 3.60 2.83 3.24Adjusted net asset value per share (note 11) 4.29 3.32 3.86-------------------------------------------------------------------------------- --------------------------------------------------------------------------------Hongkong Land Holdings LimitedConsolidated Statement of Recognised Income and Expense-------------------------------------------------------------------------------- (unaudited) Year ended Six months ended 31st 30th June December 2006 2005 2005 US$m US$m US$m--------------------------------------------------------------------------------Net exchange translation differences 6.2 (4.7) 11.0Actuarial gains on defined benefit pension plans - - 1.4Gain on revaluation of other investments - 0.5 4.6Reversal of loss on revaluation of other investments on business combination 0.6 - -(Losses)/gains on cash flow hedges (13.4) 19.8 28.7Equity component of convertible bonds - - 63.4Tax on items taken directly to equity 1.6 - (1.6) ------ ------ ------Net (expense)/income recognised directly in equity (5.0) 15.6 107.5Transfer to profit and loss in respect of cash flow hedges 5.1 4.7 (1.7)Profit for the period 924.8 1,194.7 2,060.8 ------ ------ ------Total recognised income and expense for the period 924.9 1,215.0 2,166.6 ------ ------ ------Attributable to: Shareholders of the Company 923.5 1,214.9 2,166.3Minority interests 1.4 0.1 0.3 ------ ------ ------ 924.9 1,215.0 2,166.6 ------ ------ -------------------------------------------------------------------------------------- --------------------------------------------------------------------------------Hongkong Land Holdings LimitedConsolidated Cash Flow Statement-------------------------------------------------------------------------------- (unaudited) Year ended Six months ended 31st 30th June December 2006 2005 2005 US$m US$m US$m--------------------------------------------------------------------------------Operating activitiesOperating profit 1,073.7 1,432.2 2,622.7Depreciation 0.4 0.4 0.7Negative goodwill on acquisition of a subsidiary (14.1) - -Increase in fair value of investment properties (914.4) (1,306.1) (2,367.9)Asset impairment reversals and disposals 6.5 (1.0) (11.1)Increase in working capital (81.1) (29.2) (26.3)Interest received 35.5 9.3 34.3Interest and other financing charges paid (59.6) (28.5) (76.4)Tax paid (5.4) (5.4) (22.6)Dividends received 6.3 0.7 2.8 Cash flows from operating activities 47.8 72.4 156.2 Investing activitiesMajor renovations expenditure (10.9) (5.1) (14.5)Development capital expenditure (26.5) (46.7) (78.5)Purchase of a subsidiary (note 13) (237.8) - -Investments in and loans to joint ventures (115.4) (47.0) (335.9)Purchase of other investments - - (47.4)Disposal of joint ventures and other investments 0.7 - 10.1 Cash flows from investing activities (389.9) (98.8) (466.2) Financing activitiesNet proceeds from issue of bonds - - 411.7Net proceeds from issue of convertible bonds - - 395.2Drawdown of bank loans 425.7 52.1 223.4Repayment of bank loans/notes (218.8) (5.9) (224.4)Dividends paid by the Company (125.5) (110.7) (155.5)Dividends paid to minority shareholders (2.7) - - Cash flows from financing activities 78.7 (64.5) 650.4Effect of exchange rate changes 2.5 (0.2) 1.8 ------ ------ ------Net (decrease)/increase in cash and cash equivalents (260.9) (91.1) 342.2Cash and cash equivalents at beginning of period 1,089.9 747.7 747.7 ------ ------ ------Cash and cash equivalents at end of period 829.0 656.6 1,089.9 ------ ------ -------------------------------------------------------------------------------------- USc USc USc--------------------------------------------------------------------------------Cash flow per share (note 14) 1.66 3.02 6.37-------------------------------------------------------------------------------- --------------------------------------------------------------------------------Hongkong Land Holdings LimitedNotes-------------------------------------------------------------------------------- 1. ACCOUNTING POLICIES AND BASIS OF PREPARATION The financial information contained in this announcement has been based on the unaudited interim condensed financial statements, which have been prepared in accordance with IAS 34 - Interim Financial Reporting. In 2006, the Group adopted the following amendments and interpretation to existing Standards which are relevant to its operations: IAS 39 (amended 2005) Cash Flow Hedge Accounting of Forecast Intragroup TransactionsIAS 39 (amended 2005) The Fair Value OptionIAS 39 and IFRS 4 (amended 2005) Financial Guarantee ContractsIFRIC 4 Determining Whether an Arrangement Contains a Lease There have been no changes to the accounting policies described in the 2005 annual financial statements as a result of adoption of the above amendments and interpretation. 2. REVENUE Six months ended 30th June 2006 2005 US$m US$m ----------------------------By businessCommercial propertyRental income 159.9 134.1Service and management charges 33.0 30.7Other 14.0 - 206.9 164.8Residential propertyRental income 1.1 0.8Sales of residential properties - 14.6 1.1 15.4 ------ ------ 208.0 180.2 ------ ------ 3. ASSET IMPAIRMENT REVERSALS AND DISPOSALS Six months ended 30th June 2006 2005 US$m US$m --------------------------Other asset impairment provision (7.2) -Other asset impairment reversals 0.7 1.0 ------ ------ (6.5) 1.0 ------ ------By businessCommercial property (7.2) -Residential property - 1.0Corporate 0.7 - ------ ------ (6.5) 1.0 ------ ------ 4. OPERATING PROFIT Six months ended 30th June 2006 2005 US$m US$m ----------------------------By businessCommercial property 158.7 126.6Residential property 17.6 7.5Corporate (10.5) (9.0) ------ ------ 165.8 125.1Increase in fair value of investment properties 914.4 1,306.1Asset impairment reversals and disposals (note 3) (6.5) 1.0 ------ ------ 1,073.7 1,432.2 ------ ------ 5. SHARE OF RESULTS OF JOINT VENTURES Six months ended 30th June 2006 2005 US$m US$mBy business ---------------------------Commercial property 50.2 (0.2)Residential property 5.8 8.0 ----- ----- 56.0 7.8 ----- ----- Results are shown after tax and minority interests. 6. TAX Six months ended 30th June 2006 2005 US$m US$m --------------------------Current tax 9.8 11.4Deferred tax - changes in fair value of investment properties 155.6 220.5 - other temporary differences 2.1 1.9 ----- ----- 167.5 233.8 ----- ----- Tax on profits is provided at the rates of taxation prevailing in theterritories in which the Group operates. The Group has no tax payable in theUnited Kingdom. 7. EARNINGS PER SHARE Earnings per share are calculated on profit attributable to shareholders ofUS$923.4 million (2005: US$1,194.6 million) and on the weighted average numberof 2,225.6 million (2005: 2,225.6 million) shares in issue during the period,which excludes 69.6 million shares in the Company held by a wholly-ownedsubsidiary. Diluted earnings per share are calculated on profit attributable to shareholdersof US$930.0 million (2005: US$1,194.6 million), which is after adjusting for theeffects of the conversion of convertible bonds, and on the weighted averagenumber of 2,329.6 million (2005: 2,225.6 million) shares in issue during theperiod. The number of shares for basic and diluted earnings per share isreconciled as follows: Ordinary shares in millions 2006 2005 ---------------------------Weighted average number of shares in issue 2,225.6 2,225.6Adjustment for shares to be issued on conversion of convertible bonds 104.0 - ------- -------Weighted average number of shares for diluted earnings per share 2,329.6 2,225.6 ------- ------- Earnings per share are additionally calculated based on underlying profitattributable to shareholders. A reconciliation of profit is set out below: Six months ended 30th June 2006 2005 US$m US$m --------------------------Profit attributable to shareholders 923.4 1,194.6Increase in fair value of investment properties (914.4) (1,306.1)Deferred tax on changes in fair value of investment properties 155.6 220.5Share of increase in fair value of investment properties of joint ventures (66.3) (2.7)Share of deferred tax on changes in fair value of investment properties of joint ventures 11.8 -Asset impairment reversals and disposals 6.5 (1.0)Share of asset disposals of joint ventures 0.3 -Minority interests 0.2 0.1 ------ ------Underlying profit attributable to shareholders 117.1 105.4 ------ ------ 8. TANGIBLE ASSETS Year ended 31st Six months ended 30th June December 2006 2005 2005 US$m US$m US$m --------------------------------------Net book value at beginning of period 9,791.0 7,300.7 7,300.7Exchange rate adjustments (4.1) (3.7) 20.4New subsidiary 25.9 - -Additions 39.3 61.0 102.7Depreciation (0.4) (0.4) (0.7)Disposals (0.3) - -Increase in fair value of invesment properties 914.4 1,306.1 2,367.9 -------- ------- -------Net book value at end of period 10,765.8 8,663.7 9,791.0 -------- ------- ------- 9. BORROWINGS At 31st At 30th June December 2006 2005 2005 US$m US$m US$mCurrent --------------------------------- Bank overdrafts 3.1 2.7 2.9 Short-term borrowings 57.9 77.2 77.4 Current portion of long-term borrowings 227.6 0.1 298.7 288.6 80.0 379.0 Long-term borrowings Bank loans 1,108.6 855.8 705.1 7% United States Dollar bonds due 2011 617.1 647.4 625.0 3% Hong Kong Dollar notes due 2006 - 192.4 - 5.5% United States Dollar bonds due 2014 467.1 513.6 493.1 3.01% Singapore Dollar notes due 2010 195.8 - 190.4 3.65% Singapore Dollar notes due 2015 231.4 - 222.9 2.75% United States Dollar convertible bonds due 2012 336.4 - 332.1 2,956.4 2,209.2 2,568.6 3,245.0 2,289.2 2,947.6 ------ ----- ------Secured 134.9 - -Unsecured 3,110.1 2,289.2 2,947.6 ------ ----- ------ 3,245.0 2,289.2 2,947.6 ------ ----- ------Hong Kong Dollar 2,068.0 1,927.0 2,000.6Singapore Dollar 837.3 293.7 611.4United States Dollar 339.7 68.5 335.4Vietnamese Dong - - 0.2 ------ ----- ------ 3,245.0 2,289.2 2,947.6 ------ ----- ------ 10. SHAREHOLDERS' FUNDS Year ended 31st Six months ended 30th June December 2006 2005 2005 US$m US$m US$m ------------------------------------At beginning of period 7,215.3 5,204.8 5,204.8Recognised income and expense attributable to shareholders of the Company 923.5 1,214.9 2,166.3Dividends (note 12) (133.5) (111.3) (155.8) ------- ------- -------At end of period 8,005.3 6,308.4 7,215.3 ------- ------- ------- 11. NET ASSET VALUE PER SHARE Net asset value per share is calculated on shareholders' funds of US$8,005.3million (2005: US$6,308.4 million) and on 2,225.6 million (2005: 2,225.6million) shares in issue at the period end, which excludes 69.6 million sharesin the Company held by a wholly-owned subsidiary. Net asset value per share is additionally calculated based on adjustedshareholders' funds. The difference between shareholders' funds and adjustedshareholders' funds is reconciled as follows: At 31st At 30th June December 2006 2005 2005 US$m US$m US$m --------------------------------Shareholders' funds 8,005.3 6,308.4 7,215.3Deferred tax on increase in fair value of investment properties 1,524.7 1,081.8 1,371.7Share of deferred tax on increase in fair value of investment properties of joint ventures 17.3 6.4 5.2 ------- ------- -------Adjusted shareholders' funds 9,547.3 7,396.6 8,592.2 ------- ------- ------- 12. DIVIDENDS Six months ended 30th June 2006 2005 US$m US$m ---------------------------Final dividend in respect of 2005 of USc6.00 (2004: USc5.00) per share 137.7 114.8Less dividends paid on the shares held by a wholly-owned subsidiary (4.2) (3.5) ------ ------- 133.5 111.3 ------ ------- An interim dividend in respect of 2006 of USc3.00 (2005: USc2.00) per shareamounting to a total of US$68.9 million (2005: US$45.9 million) is declared bythe Board. The net amount after deducting the dividends payable on the sharesheld by a wholly-owned subsidiary of US$2.1 million (2005: US$1.4 million) willbe accounted for as an appropriation of revenue reserves in the year ending 31stDecember 2006. 13. PURCHASE OF A SUBSIDIARY Six months ended 30th June 2006 Fair value Book value adjustments Fair value US$m US$m US$m ---------------------------------------Investment properties 24.3 - 24.3Other tangible assets 1.6 - 1.6Joint ventures 34.8 1.8 36.6Current assets 568.8 13.7 582.5Current liabilities (129.5) - (129.5)Long-term borrowings (88.9) - (88.9)Deferred tax liabilities (1.0) (1.4) (2.4)Other non-current liabilities (2.0) - (2.0) ------ ----- ------Net assets 408.1 14.1 422.2 ------ ----- ------Adjustment for minority interests (95.4) ------Net assets acquired 326.8Excess of net assets acquired over consideration (14.1) ------Total consideration 312.7Adjustment for carrying value of other investments (40.6)Cash and cash equivalents acquired (34.3) ------Net cash outflow 237.8 ------ 14. CASH FLOW PER SHARE Cash flow per share is based on cash flows from operating activities less majorrenovations expenditure amounting to US$36.9 million (2005: US$67.3 million) andis calculated on the weighted average of 2,225.6 million (2005: 2,225.6 million)shares in issue during the period, which excludes 69.6 million shares in theCompany held by a wholly-owned subsidiary. 15. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES At 30th At 31st June December 2006 2005 2005 US$m US$m US$m -----------------------------Capital commitments 834.9 566.1 632.1 ------ ----- -----Contingent liabilitiesGuarantees in respect of facilities made available to joint ventures 4.9 17.2 8.0Guarantees in respect of qualifying certificates for development properties 2.1 - - ------ ----- ----- 7.0 17.2 8.0 ------ ----- ----- Various Group companies are involved in litigation arising in the ordinarycourse of their respective businesses. Having reviewed outstanding claims andtaking into account legal advice received, the Directors are of the opinion thatadequate provisions have been made in the financial statements. The interim dividend of USc3.00 per share will be payable on 22nd November 2006to shareholders on the register of members at the close of business on 18thAugust 2006. The ex-dividend date will be on 16th August 2006, and the shareregisters will be closed from 21st to 25th August 2006, inclusive. Shareholderswill receive their dividends in United States Dollars, unless they areregistered on the Jersey branch register where they will have the option toelect for Sterling. These shareholders may make new currency elections bynotifying the United Kingdom transfer agent in writing by 3rd November 2006. TheSterling equivalent of dividends declared in United States Dollars will becalculated by reference to a rate prevailing on 8th November 2006. Shareholdersholding their shares through The Central Depository (Pte) Limited ('CDP') inSingapore will receive United States Dollars unless they elect, through CDP, toreceive Singapore Dollars. -end- For further information, please contact: Hongkong Land LimitedN R Sallnow-Smith (852) 2842 8300G M Brown (852) 2842 8138 Matheson & Co LtdMartin Henderson (44) 207 816 8135 GolinHarrisC T Hew (852) 2522 7928 Weber Shandwick Square Mile Richard Hews/Helen Thomas (44) 207 067 0700 This and other Group announcements can be accessed through the Internet at'www.hkland.com'. This information is provided by RNS The company news service from the London Stock Exchange