Sustainability Report 2018/19

Hong Kong Land Bank Composition The demand for affordable housing continues to attract a great deal of attention in Hong Kong. As a major property developer in the region, we continue to replenish our land bank through different channels and offer a large variety of products to meet development needs while satisfying the demands of different customer sectors, including residential, office and retail. During the year, SHKP added seven sites comprising around 3.1 million square feet of attributable gross floor area through government tenders and land-use conversions. These additions have brought our Hong Kong land bank to 58.0 million square feet of attributable gross floor area and have enabled us to achieve our annual property sales target in Hong Kong over the medium term. Details of the land acquired during the reporting period can be found in the Land Bank section of the Chairman’s Statement of our Annual Report 2018/2019. Land Bank In terms of development, six projects in Hong Kong totalling about 3.3 million square feet of attributable gross floor area were completed during the year, of which about 3.2 million square feet comprised residential developments. Our contribution to sustaining the supply of residential units in Hong Kong during the reporting period is detailed in the Property Development section of the Chairman’s Statement of our Annual Report 2018/2019. Looking ahead, we will continue to satisfy the demand for housing in Hong Kong through the expansion of our land bank, developing more residential units for Hong Kong’s growing families and launching new projects onto the market as soon as they are ready. Extra effort will also be made to expedite conversion of our agricultural land to residential development projects. Recognized for Sustainability SHKP’s ongoing commitment and performance in sustainable development have been widely recognized by various major sustainability benchmarks and indices. 2 FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that SHKP has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products. 1 Completion refers to the stage in which the project is ready for handover since the financial year of 2018/19. Hence, the figures of the financial year 2018/19 cannot be used for direct comparison with historical figures. Properties Under Development 2015 FY 0 20 40 60 52.1 51.4 51.8 56.5 58.0 80 2016 2017 2018 2019 1 Completed Properties Gross floor area (in millions of square feet) Sun Hung Kai Properties Limited • Sustainability Report 2018/19 Constituent of the Hang Seng Corporate Sustainability Index and Hang Seng (Mainland and Hong Kong) Corporate Sustainability Index with an ‘AAA’ rating Ranked 4 th among the top companies of the Hong Kong Business Sustainability Index with a ‘Pace-setter’ rating Constituent of FTSE4Good Global Index Series 2 Our Business Sun Hung Kai Properties Limited • Sustainability Report 2018/19 4