Hysan Development Company Limited

To: Business/Property Editors	Date: 26 February 2026
	For immediate release

SUMMARY

• Turnover increased 1.6% year-on-year, while Recurring Underlying Profit declined 1.9% year-on-year. Underlying Profit rose 28.3%, driven by fair value gains on disposed Bamboo Grove units.
• Retail turnover grew 2.6%. New and expanded luxury flagships underpin positive rental reversion. Tenant sales posted double-digit year-on-year growth during the second half of 2025.
• Office turnover remained stable. Amid continuing challenges faced by the Hong Kong office rental market, our Hong Kong office portfolio saw improved occupancy from 90% to 94%, alleviating negative rental reversions.
• Hong Kong's residential market recorded a solid rebound in 2025, benefiting the Group with stronger leasing and sales momentum during the year.
• The Lee Gardens connectivity project and Lee Garden Eight development are progressing on schedule, with the fully transformed Lee Gardens set to be unveiled in the second half of 2026.
• Launched HK$8 billion five-year capital recycling programme to strengthen financial position and enhance long-term value; 26% achieved with HK$2.1 billion collected in 2025.
• The Group maintained its second interim dividend of HK81 cents per share.

RESULTS

Notes:

1. Turnover comprises gross rental income from leasing of investment properties located in Hong Kong and Mainland and management fee income from the provision of property management services for the year.
2. Recurring Underlying Profit, a non-HKFRS Accounting Standards measure, is a performance indicator of the core property investment business of Hysan Development Company Limited (the "Company" or "Hysan") and its subsidiaries (the "Group") and is arrived at by excluding from Underlying Profit items that are non-recurring in nature.
3. Underlying Profit, a non-HKFRS Accounting Standards measure, is arrived at by adding (i) Reported Profit excluding unrealised fair value change of investment properties and items not generated from the Group's core property investment business; and (ii) Profit attributable to holders of perpetual capital securities.
4. Reported Profit is the profit attributable to owners of the Company. It is prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the Hong Kong Companies Ordinance.
5. Shareholders' Funds are the equity attributable to owners of the Company.
6. Net Asset Value per Share represents Shareholders' Funds divided by the number of issued shares at year-end.

Results

(Hong Kong, 26 February 2026) Hysan Development Company Limited ("Hysan" or the "Group", Hong Kong stock code: 00014) today announced its financial results for the year ended 31 December 2025.

Turnover grew by 1.6% year-on-year, supported by solid performance across core business segments. In Hong Kong, our retail portfolio achieved strong growth in traffic and tenant sales, outperforming the overall Hong Kong market. New and expanded luxury flagships, together with a diverse selection of exciting, curated tenants, continue to enhance rental income. Overall retail rental reversion stayed positive and occupancy improved from 92% to 95%. Office occupancy rose from 90% to 94%, helping to alleviate the impact of negative rental reversions. The strong ramp-up of Lee Gardens Shanghai and the continued occupancy improvement at Bamboo Grove since last year further contributed to overall revenue growth during the year.

Underlying Profit increased by 28.3% year-on-year, mainly due to the gain on the sale of residential units in two blocks at Bamboo Grove. Recurring Underlying Profit decreased by 1.9%, reflecting increased interest cost and loan drawdowns related to asset enhancement projects.

Shareholders' fund was HK$65,456 million as at 31 December 2025 (2024: HK$65,993 million).

As at 31 December 2025, the Group's investment properties portfolio was valued at HK$96,157 million, a decrease of 0.4% from the HK$96,547 million recorded as at 31 December 2024.

Dividends

The Board of Directors has declared a second interim dividend of HK81 cents per share (2024: HK81 cents per share) which will be payable in cash. Please see the table for all the relevant dates:

Closure of register of members	Friday, 13 March 2026
Ex-dividend date	Wednesday, 11 March 2026
Latest time to lodge transfer documents	Not later than 4pm on Thursday, 12 March 2026
Record date for second interim	Friday, 13 March 2026
Second interim dividend payment date	On or about Friday, 27 March 2026

2025 was a pivotal year of progress and transformation for Hysan - one that tested our adaptability in the face of uncertainty while highlighting the dedication of our team and the enduring strength of our Community Business Model. Our achievement this year is not measured solely by our financial performance, but also by the spirit of innovation, collaboration and excellence that defines both Hysan and the Lee Gardens community.

Building on a Century of Vision
Hysan's journey is rooted in a legacy that spans more than a century, distinguished by our enduring values and steadfast commitment to the community. From our founding in the early 20th century to our present-day transformation of the Lee Gardens precinct, we have continuously evolved to meet the needs of a dynamically changing city. Our guiding principles of hard work, humility, harmony and a deep sense of duty remain integral to our culture and strategic direction.

Today, as we adapt to generational shifts and societal changes, we continue to focus on creating a community that promotes connection, inclusivity and sustainable economy, generating long-term value for all our stakeholders and the city.

Navigating a Dynamically Changing Landscape
Hong Kong's economic environment in 2025 was marked by both opportunity and complexity. The economic and financial uncertainties caused by geopolitical and global trade tensions, the rigorous change in local and tourist consumption patterns, the competition from both Asia Pacific and Mainland China's major cities, and the persistently weak office rental market presented challenges for the commercial office and retail sectors.

Against this backdrop, to maintain our business momentum and Lee Gardens' competitiveness, we have deepened our engagement with stakeholders, enhanced our environment and offerings, and leveraged our unique portfolio to retain our tenants and customers and capture emerging demand. Our disciplined approach - focused on effective and efficient execution, strong time and cost control, and prudent risk management - enabled us to outpace the market in key business areas, reinforce our leadership position and deliver solid results.

Lee Gardens Rejuvenation: Realising our Vision
Our journey of transformation continued to bear fruit. Our strategy for Lee Gardens rejuvenation was proven timely as financial contributions have been materialising. This stands as a testament to our forward-looking vision and the continuation of our century-old legacy.

We have now entered an important and large-scale harvest phase spanning our Lee Gardens hub, with the renovated and expanded flagship maisons of luxury brands such as Hermès, Dior, Cartier, Chanel, Tiffany and Louis Vuitton. The reopening of these expanded stores with new in-store experiences, coupled with new brands introduced to Hysan Place and across the Lee Gardens precinct, further cemented Lee Gardens' reputation as the city's must-visit place for all.

For more information, please visit https://doc.irasia.com/listco/hk/hysan/annual/2025/respress.pdf.

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