Bulletin: Sun Hung Kai's Diversified Property Portfolio Will Offset Tough Operating Environment

HONG KONG (S&P Global Ratings) Sept. 11, 2020--S&P Global Ratings said today that Sun Hung Kai Properties Ltd.'s (SHKP; A+/Stable/--) strong balance sheet and well-diversified property portfolio will provide sufficient financial buffer against a tough operating environment. We expect the company's contracted sales in Hong Kong to grow to HK$35 billion in fiscal 2021 as business conditions improve. Amid social unrest and the COVID-19 outbreak, SHKP recorded contracted sales of HK$33.6 billion in Hong Kong for fiscal 2020. Although lower than its medium-term average annual target of HK$40 billion, the company's performance is solid, given that primary market transactions dropped by about 27% over the same period. We believe SHKP's strong operating capabilities will continue to be tested in the

...September 11, 2020 HONG KONG (S&P Global Ratings) Sept. 11, 2020--S&P Global Ratings said today that Sun Hung Kai Properties Ltd.'s (SHKP; A+/Stable/--) strong balance sheet and well-diversified property portfolio will provide sufficient financial buffer against a tough operating environment. We expect the company's contracted sales in Hong Kong to grow to HK$35 billion in fiscal 2021 as business conditions improve. Amid social unrest and the COVID-19 outbreak, SHKP recorded contracted sales of HK$33.6 billion in Hong Kong for fiscal 2020. Although lower than its medium-term average annual target of HK$40 billion, the company's performance is solid, given that primary market transactions dropped by about 27% over the same period. We believe SHKP's strong operating capabilities will continue to be tested in the next six to 12 months amid travel restrictions, social distancing measures, and rising office vacancy in Hong Kong. However, the company's market-leading position in residential development...

Bulletin