Hong Kong property owner Wharf Reic reports HK$1.47 billion loss for Covid-ravaged first half of year
- Revenue declined 17 per cent compared with the first half of 2021, but the company reported a 3 per cent increase in underlying net profit
- The owner of Harbour City and Times Square issued a cautious outlook amid increasing interest rates and geopolitical tensions
Wharf Real Estate Investment Company (Wharf Reic), which owns Hong Kong’s Harbour City and Times Square shopping centres, reported a net loss for the first half of the year – its first interim loss in 18 months – as it signalled a cautious market outlook amid interest rate hikes and geopolitical tensions.
The company reported a net loss of HK$1.47 billion (US$187 million) for the six months ended June 30, compared to a profit of HK$2.97 billion in the first half of 2021, according to an exchange filing on Thursday. Revenue came in at HK$6.21 billion, down 17 per cent from the year-earlier period.
The company’s net investment properties revaluation deficit surged 18-fold to HK$5.04 billion, compared to HK$278 million in 2021’s first half. Net asset value dropped to less than HK$200 billion, the lowest since the company’s IPO in 2017, the filing said.
However, Wharf Reic’s underlying net profit for the first six months increased by 3 per cent to HK$3.37 billion, compared with HK$3.27 billion in the same period a year ago. An interim dividend of HK$0.70 per share will be paid, up 4.5 per cent from HK$0.67 in the previous year.
The results were “better than market expectations”, according to CGS-CIMB Securities.
