CORRECTED-Hongkong Land CFO says outlook improving for Hong Kong office market

SINGAPORE, March 6 (Reuters) - Hongkong Land HKLD.SI is more optimistic about the outlook for Hong Kong's office market after office rents in the city's central business district stabilised mid-year and rose in the fourth quarter, CFO Craig Beattie said on Friday.

Hongkong Land said in its earnings statement on Thursday that it expects underlying results to remain largely unchanged in 2026, with future growth driven by improving Hong Kong market sentiment, an expanding mainland Chinese portfolio, and its Singapore fund management business.

The company said leasing momentum improved in Hong Kong last year, supported by a recovery in capital market activity and a robust IPO pipeline.

• In an interview with Reuters, Beattie said the ongoing "Tomorrow's CENTRAL" renovation of Hongkong Land's Central luxury retail portfolio is weighing on rental income in the near term, but the group ultimately expects a 20%-25% uplift in rental levels "compared to the past" as the project completes in phases through 2027.

• Hongkong Land has recycled $3.6 billion of capital - about 90% of its 2027 target - cutting net debt to about $3.6 billion and gearing to roughly 12%, he said.

• Asked about the Middle East conflict, Beattie said the group was not seeing any business impact so far, citing hedged interest-rate exposure, diversified funding and multinational tenants.