HONG KONG (Reuters) - Property investor Hongkong Land Holdings said yesterday underlying net profit fell 10 percent in 2002 due to pressure on the property market and slashed its full-year dividend 17 percent.

"In the near term, rentals and values will continue to experience downward pressure. The directors have therefore deemed it prudent to recommend a reduced dividend," Chairman Simon Keswick said in the results statement.

The Singapore-listed company, a major landlord in Hong Kong's prime Central District business area, said underlying net profit fell to US$192 million in 2002 from US$213 million the previous year on lower rental income and higher finance charges.

The earnings were better than market expectations for a 13-16 percent decline.

It proposed a final dividend of 4.0 US cents, down from 5.5 cents a year ago, taking the full-year dividend for 2002 to 7.5 cents versus 9.0 cents the previous year.m Shares of Hongkong Land lost 1.5 percent to US$1.31 in London yesterday after closing steady at US$1.32, or down four percent in the past month.