This Company's Buyback Blitz Narrows NAV Discount. What Upside is Left?

For years, Hongkong Land (HKL) traded at a huge discount to its Net Asset Value (NAV) and was viewed by many investors as a "value trap".

That perception may be shifting as HKL shares have staged a rally, climbing from the $6.20 level in early Nov 2025 to breach $8.40 recently.

The stock has gone up about 100% from 9 months ago, reflecting a management deciding to step up an unlocking of value.

It has been conducting share buybacks for several years on a regular basis, going back when it traded at the US$4 level.

HKLand chart1.26

1. The Buyback Machine is in Overdrive

In November and December 2025, the company was purchasing shares periodically at prices between $6.24 and $7.15.

As we rolled into January 2026, the pace shifted from "steady" to "aggressive."

SGX filings show that HKL has been in the market almost daily throughout January:

Date of Repurchase	Shares Repurchased	W. Avg Price (US$)	Total Consideration (US$)
Jan 20, 2026	175,000	$8.3694	$1,464,645
Jan 19, 2026	180,000	$8.1842	$1,473,156
Jan 16, 2026	180,000	$8.2364	$1,482,552
Jan 15, 2026	180,000	$8.2235	$1,480,230
Jan 14, 2026	180,000	$8.1229	$1,462,122
Jan 13, 2026	185,000	$7.8662	$1,455,247
Jan 12, 2026	185,000	$7.8731	$1,456,524
Jan 09, 2026	190,000	$7.6495	$1,453,405
Jan 08, 2026	200,000	$7.4027	$1,480,540
Jan 07, 2026	205,000	$7.1654	$1,468,907
Jan 06, 2026	205,000	$7.1403	$1,463,761
Jan 05, 2026	210,000	$6.9920	$1,468,320
Jan 02, 2026	210,000	$7.0427	$1,478,967

Source: SGX filings

Observation: The company appears to target a daily spend of US$1.45 million to US$1.48 million.

As the share price rose in January, the number of shares repurchased slightly decreased (from ~230k to ~175k).

This signals a conviction that the stock remains deeply undervalued even after a 30% run-up since November. After all, its last reported NAV was US$13.62 per share.

2. The Strategic Pivot: Exiting the "Build-to-Sell" Game

The company has a strategic direction unveiled in late 2024, dubbed "Vision 2035."

For decades, HKL operated a hybrid model: collecting rents from prime offices while also developing residential condos for quick sale ("build-to-sell").

The new strategy scraps the latter. HKL is exiting the volatile residential development business to become a pure-play, ultra-premium investment property manager.

"The US$200 million share buyback programme announced in April 2025 has now been fully invested, reducing the issued share capital of the Company by 1.6%. An additional US$150 million, financed by proceeds from the MCL Land transaction and other recycled capital, was allocated to the share buyback programme in September, with c.US$40 million invested to date."

-- Hongkong Land, 20 Nov 2025.

We saw a major move in Oct 2025 with the sale of MCL Land (HKL’s residential arm) to Sunway Group for S$739 million.

Part of the proceeds and other recycled capital added another US$150 million to the US$200 million buyback warchest which had already been invested then.

Assuming January's share buyback daily pace and dollar amount, the monies will be fully invested around 2Q2026.

Fundamentals: A Flight to Quality

HK Land is currently executing a textbook value-unlocking play.

By selling off non-core assets (MCL Land etc) and recycling some of that capital into buying back its own discounted shares, HKL is increasing the earnings per share (EPS) for remaining shareholders as well as nudging the price up.

Meanwhile, company filings show that insiders have been buying the stock this month: the Chief Investment Officer and the Chief Commercial Officer.

HKL is now a story of capital focus and shareholder returns. If the buyback pace continues, the gap between the share price and its US$13.62 NAV may well close.

This Company's Buyback Blitz Narrows NAV Discount. What Upside is Left?

1. The Buyback Machine is in Overdrive

2. The Strategic Pivot: Exiting the "Build-to-Sell" Game

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