Wharf delivers 25pc rise in annual core earnings
Owner of Hong Kong’s largest shopping mall Harbour City, considering spinning off its investment property assets. But mainland office leasing unit struggles
Wharf (Holdings), the Hong Kong conglomerate whose interests are spread across property, telecommunications and infrastructure, enjoyed a 25 per cent rise in core annual earnings last year, helped by rising property income from both Hong Kong and the mainland.
Excluding a revaluation gain on investment properties, underlying profit was HK$13.8 billion (US$1.78 billion), or HK$4.54 per share, in line with the analyst expectations.
Total revenue rose 14 per cent to HK$46.6 billion, while revenue exclusively from rental rose 6 per cent to HK$15 billion.
But property sales soared 29 per cent during the period, to HK$23 billion, largely attributable to the sales of the super-deluxe Mount Nicholson development on the Peak, the completion of Peninsula East in Kowloon and increased projects in the mainland, the company said in the statement.
Wharf’s core asset, however – Hong Kong’s largest shopping mall Harbour City in Tsim Sha Tsui – faced challenges in the softening retail market.
Although retail revenue increased 4 per cent last year, occupancy rate eased to 96 per cent.