Wharf REIC reports 5pc increase in underlying net profit last year

Wharf Real Estate Investment Company's (1997) underlying net profit increased by 5 percent to HK$6.46 billion last year, with lower finance costs, according to a filing published on Tuesday.

Including a net investment properties revaluation deficit of HK$10.58 billion, the developer swung from profit to a loss of HK$4.26 billion last year.

The second interim dividend increased 10 percent to HK$0.66 per share. 

The full-year dividend will increase by around 6.5 percent to HK$1.32, representing 65 percent of the underlying net profits from investment properties and hotels in Hong Kong.

Net debt and gearing were further reduced to new lows at HK$32.0 billion and 17.2 percent respectively. 

Besides, the group's revenue fell 1 percent to HK$12.82 billion last year, investment property revenue decreased 1 percent to HK$10.65 billion, while hotel revenue rose 6 percent to HK$1.63 billion.

One of the developer's properties, Harbour City, its total revenue, including hotels, rose 1 percent to HK$9.22 billion. Times Square's overall revenue fell 10 percent.

Stephen Ng Tin-hoi, chairman of Wharf Holdings, mentioned that Hong Kong's recovery is progressing at a gentle pace. With renewed vitality in the financial markets, improving sentiment, and the prospect of US interest-rate cuts, a more supportive business environment is expected.