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Growing Financial Returns and Beyond
Financial performance traditionally plays a major role in investment decisions, but the
concept of responsible investment has become increasingly popular. The market is seeing
a growing number of investors that incorporate sustainability in their investment strategies.
The increase in enquiries on sustainability topics indicates the importance, power and
influence of good sustainability performance. We strongly believe that doing well in
sustainability helps achieve business objectives and will have a positive impact on our
financial performance over time.
As a market leader in both financial position and sustainability, we are a constituent of
the Hang Seng Index, Hang Seng Properties Index as the largest developer by market
capitalization and of the Hang Seng Corporate Sustainability Index Series since 2010.
We are one of the largest property developers and landlords in Hong Kong and continue to
maintain or expand our land bank to secure our development pipeline. We completed three
projects in 2014/15 to capitalize on local market demand and acquired six sites during the
year under review. These brought the total gross floor area of our Hong Kong development
land bank to 22.1 million square feet as of 30 June 2015. Overall occupancy at our investment
properties remained high at 95%.
Sustainable management of assets in our core sectors helped drive impressive returns for
investors. We registered over HK$13 billion in net cash from operations as at 30 June 2015
and our contracted sales amounted to nearly HK$32 billion.
SHKP’s low net gearing ratio and high liquidity reflect the positive impacts of careful
management of our economic, social and environmental performance. Our cost of capital,
as indicated by net debt to shareholder’s funds, decreased to 11.2%.
We additionally attain the highest credit ratings among local developers, thanks to our
high liquidity and positive capital growth. Our effective corporate governance structure has
ensured our credit ratings remain unaffected with the changes to our board of directors
during the reporting period. We currently have an A1 rating with a Stable outlook from
Moody’s and an A+ rating with Stable outlook from Standard & Poor’s.
Our prudent financial discipline has also won us the steadfast support of the banking
community, improving access to capital and achieving greater financial flexibility.
SHKP has always looked beyond the costs and benefits of a project. We are dedicated
to creating lasting value for our stakeholders and work diligently to do so. The following
sections describe how we interact with our employees, customers, supply chain, community
and the environment, and the positive outcomes of our work.
Value Created for Stakeholders
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Sun Hung Kai Properties Limited Sustainability Report 2014/15