Hongkong Land beats US$4.2 bln recycling target, expands buyback
Hongkong Land said on Friday it exceeded its US$4.2 billion capital recycling target ahead of schedule and expanded its share buyback programme by US$100 million to a total of US$750 million.
Hongkong Land announced on Friday that its 2027 capital recycling target has surpassed US$4.2 billion (HK$32.76 billion) ahead of schedule and will expand its buyback programme by a further US$100 million.
The expanded share buyback will increase the total amount allocated to share buybacks since October 2024 to US$750 million, of which US$508.5 million has been invested to date. The share buyback programme period will also be extended through to 31 December 2027.
The company’s Strategic Vision 2035 stated that it targeted to recycle at least US$4 billion by the end of 2027. Under the plan, it set a target to recycle up to US$10 billion of capital by 2035 to fund growth in its ultra-premium commercial property portfolios and enhance shareholder returns, with a greater proportion to be realised in the short to medium term.
Hongkong Land’s core strategy is to simplify its prime properties investment portfolio and concentrate on its anchor markets of Hong Kong, Singapore and the Chinese mainland. In 2026, Hongkong Land signed agreements to realise approximately US$500 million from the disposal of selected Southeast Asia interests, covering investments in Cambodia, the Philippines and Thailand. The sale of its 49 per cent interest in the development of the former British Embassy site in Bangkok accounts for the majority of the capital recycled during this period.
Each transaction was concluded at market value and at, or around, the company’s carrying value. Completion remains subject to applicable regulatory approvals and other customary closing conditions.
“The transactions announced today mark an important milestone as we have exceeded our minimum US$4 billion capital recycling target more than one year ahead of schedule,” said Michael T. Smith, group chief executive of Hongkong Land. “These transactions also enable us to increase and extend our share buyback programme, underscoring our commitment to disciplined capital allocation and delivering long-term value for shareholders,” Smith said.