Shares of Wharf Real Estate Investment Company (1997) spiked as much as 32 percent on Thursday on higher payouts and improved first-half performance.
The company said its underlying net profit rose by 6 percent to HK$3.3 billion in the first six months of 2026, thanks to lower interest costs.
It lifted the first interim dividend by 42 percent to 94 HK cents, and has raised the distribution ratio by 25 percentage points to 90 percent from 2026 onwards after considering the current earnings base and debt profile, according to a filing.
It will keep the new policy under constant review, the filing said.
Net loss, which included a net investment properties revaluation deficit of HK$3.55 billion, narrowed by over 92 percent to HK$176 million for the period.
The real estate firm’s net debt decreased by HK$2.8 billion to HK$29.2 billion as of the end of June, with a gearing ratio of 15.9 percent. The figures are expected to drop to HK$20 billion and 11 percent by the end of this year from active capital management.
Revenue for the period decreased by 1 percent to HK$6.34 billion, of which IP revenue fell 2 percent to HK$5.27 billion.
Hotel revenue increased by 10 percent to HK$842 million while sales from development properties declined 12 percent to HK$51 million.
Office demand improved in the first half, particularly within the financial sector, supported by a stronger initial public offering pipeline and resilient wealth management activity, Wharf REIC said, adding that ongoing geopolitical uncertainty across other financial centers further reinforced Hong Kong’s safe-haven appeal and added leasing momentum.
However, interest rate uncertainties and China’s updated outbound direct investment rules, which limit cross-border capital flows, may still cast a long shadow on tenants’ commitment plans, the company warned.
Further escalation in geopolitical tensions between major economies could also increase market volatility and weigh on sentiment, it added.
