Wharf REIC Net Profit Up 6%, Interim Dividend Hiked 42% to $0.94
SingTao · 1 SOURCES1 day ago2 MIN
Summary
Wharf REIC delivered improved first-half results driven by lower borrowing costs and stronger office occupancy, while significantly boosting shareholder returns through a higher dividend payout policy . The company maintained a cautious approach to debt management amid an uncertain interest rate environment and geopolitical tensions .
Key Points
- Underlying net profit rose 6% to HK$3.311 billion for the half-year ended June 30, with borrowing costs reduced by 26% .
- Interim dividend increased 42% to HK$0.94 per share, with payout ratio raised from 65% to 90% of recurring core underlying net profit .
- Investment property revaluation deficit of HK$3.547 billion resulted in reported shareholders' loss of HK$176 million, versus HK$2.406 billion loss a year ago .
- Net debt fell to HK$29.2 billion and gearing ratio dropped to record low of 15.9%, with Singapore Wheelock Properties sale to cut gearing further to about 11% .
- Harbour City overall revenue including hotels rose 1% with 92% mall occupancy and 93% office occupancy; Times Square revenue and operating profit fell 12% and 13% respectively .
Why It Matters
The aggressive dividend increase signals management's confidence in cash flow stability despite property market headwinds, while the record-low leverage provides resilience against interest rate volatility . The planned Singapore asset sale at 12% above book value demonstrates successful capital recycling strategy to strengthen the balance sheet .
The aggressive dividend increase signals management's confidence in cash flow stability despite property market headwinds, while the record-low leverage provides resilience against interest rate volatility . The planned Singapore asset sale at 12% above book value demonstrates successful capital recycling strategy to strengthen the balance sheet .