Great Eagle Holdings, a key hotel operator and landlord in Hong Kong, said underlying profit jumped 36.4 per cent last year thanks to higher rental income amid the city's economic boom.
Underlying earnings were HK$896.4 million, up from HK$657 million the previous year while revenue climbed 10.9 per cent to HK$4.18 billion. A final dividend of 35 HK cents was declared, up from 25 HK cents.
Despite the recent volatility in the global financial markets, chairman Lo Ka-shui said: 'Current low vacancy rates and the shortage of new supply in the core commercial districts in the next several years should lend considerable support to office rent rates in Hong Kong.'
Net profit, including a HK$4.14 billion revaluation gain from investment properties, soared 734 per cent to HK$3.4 billion from HK$407.5 million. The revaluation gain on investment properties was HK$342.2 million in 2006.
Mr Lo said rental income would continue to rise, underpinned by higher new rates when existing leases expired and were rolled over.
Also a cut in income distribution to minority shareholders by its property trust Champion Reit, from 55 per cent last year to 20 per cent this year, would bring a higher contribution to the company, he said.
