Hongkong Land : 2017 Half-Yearly Results Announcement

To: Business Editor 3rd August 2017

For immediate release

The following announcement was issued today to a Regulatory Information Service approved by the Financial Conduct Authority in the United Kingdom.

• Underlying profit up 32%

• Positive performance from investment properties

• Higher sales completions

• New property developments in Singapore, Nanjing and Wuhan

"The good performance of the Group's investment property portfolio is expected to continue in the second half of the year, although the contribution from development properties will not benefit from further sales completions in Singapore."

Ben Keswick

Chairman

The interim dividend of US¢6.00 per share will be payable on 19th October 2017 to shareholders on the register of members at the close of business on 25th August 2017.

Issued by:

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Incorporated in Bermuda with limited liability www.hkland.com

The Group's investment properties produced an increased contribution due to higher average rents achieved in Hong Kong. Of the Group's development properties, being residential and mixed-use projects developed for sale in the short to medium-term, higher sales completions led to increased profits in both mainland China and Singapore.

During the first half of the year, the Group's underlying profit attributable to shareholders was US$517 million, compared with US$393 million in 2016. The profit attributable to shareholders was US$3,125 million after accounting for a net gain of US$2,608 million arising on the revaluation of the Group's investment properties. This compares with a profit of US$1,263 million in 2016, after a net revaluation gain of US$870 million.

The net asset value per share at 30th June 2017 was US$14.54, compared to US$13.30 at 31st December 2016.

The Directors have declared an unchanged interim dividend of US¢6.00 per share.

Investment Properties

In Hong Kong, office rental reversions were positive as market supply remained tight. Vacancy in the Group's Central office portfolio at 30th June 2017 was 1.5%, compared with 2.2% at the end of 2016 and 3.1% at 30th June 2016. The Group's average office rent rose to HK$106 per sq. ft, compared to HK$103 per sq. ft in both the first and second halves of 2016. The Group's Central retail portfolio was 99.4% occupied, compared to 100% at the end of 2016 and at 30th June 2016. While base rents were little changed on reversion, the positive reversions seen in 2016 led to the average retail rent increasing to HK$224 per sq. ft, compared with HK$216 per sq. ft and HK$220 per sq. ft in the first and second halves of 2016, respectively.

Mildly negative rental reversions continued in the Group's Singapore office portfolio, reflecting the current relative surplus of market supply, with vacancy at the end of

June of 0.2% compared with 0.1% at the end of 2016 and 1.0% at 30th June 2016. The average office rent decreased slightly to S$9.1 per sq. ft, compared with S$9.4 per sq. ft and S$9.2 per sq. ft in the first and second halves of 2016, respectively.

In mainland China, the construction and leasing of the Group's luxury retail and hotel complex in Beijing, WF CENTRAL in Wangfujing, is progressing well, with the retail component scheduled to open in late 2017 and the 74-room Mandarin Oriental hotel in 2018. In Jakarta, the 73,000 sq. m. fifth tower at Jakarta Land, the Group's 50%- owned joint venture, is due to complete in early 2018. In Cambodia, space in the Group's 26,000 sq. m. prime mixed-use complex is being progressively taken up by tenants.

In June 2017, a joint venture agreement was reached to construct and manage a well- located site within the Marina Bay Financial District of Singapore with a developable area of 120,000 sq. m. The Group will have a 33% interest in the project, which will be connected to its existing portfolio in the district.

Development Properties

In mainland China the business benefited from further completions of primarily residential units and positive market sentiment, resulting in both an increase in overall contracted sales and an improved profit contribution. The attributable interest in contracted sales in mainland China was US$701 million in the first half of 2017, compared to US$432 million and US$673 million in the first and second halves of 2016, respectively. At 30th June 2017, the Group had US$1,421 million in sold but unrecognised contracted sales, compared with US$1,083 million at the end of 2016.

During the period, the Group entered into two new markets in mainland China. In February 2017, a conditional agreement was reached to develop jointly a mixed-use site in Wuhan, with a developable area of 494,000 sq. m., in which the Group will have a 50% interest. In April 2017, an agreement was signed to develop jointly a mixed-use site in Nanjing, with a developable area of 217,000 sq. m., in which the Group will have a 33% interest. Both projects will be developed over multiple phases through to 2021.

Results from the Group's residential development activities in Singapore reflected the recognition of profit on the 699-unit LakeVille project, which was completed during the

first half of the year, while there were no completions in the first half of 2016. Pre-sales continued at the Sol Acres and Lake Grande projects with satisfactory results. In May 2017, the Group won a tender for a residential site with a developable area of 98,000 sq. m., which is expected to complete in 2021.

Of the Group's other properties, three joint venture residential projects in Indonesia are advancing on schedule. In the Philippines, satisfactory progress is being made in the construction of a 40%-owned 182-unit luxury apartment block in Manila and a 40%-owned mixed-use development in Cebu. In Thailand, the Group entered into a 49%-held joint venture to develop a residential site, with a developable area of 38,000 sq. m. Construction is expected to commence in early 2018 and will complete in 2020.

Financing

The Group's financial position remains strong with net debt of US$1.9 billion at 30th June 2017, down from US$2.0 billion at the end of 2016. Net gearing was 5%, compared with 6% at the end of the year.

The good performance of the Group's investment property portfolio is expected to continue in the second half of the year, although the contribution from development properties will not benefit from further sales completions in Singapore.

Ben Keswick

Chairman