Wharf (Holdings) said yesterday core earnings increased 27.7 per cent in the first half, thanks to strong growth in rental income from retail properties.
The company's core profit, excluding property revaluation gains, climbed to HK$4.2 billion for the six months to June from HK$3.29 billion a year ago. Turnover rose 0.1 per cent to HK$8.62 billion, while net profit surged 42 per cent to HK$9.89 billion.
Operating profit from retail and office properties increased 9 per cent to HK$3.26 billion during the period.
The strong growth in profit was mainly from increasing rental income from its main malls, Times Square in Causeway Bay and Harbour City in Tsim Sha Tsui. The growth in retail rental income offset the 8 per cent fall in the turnover of office properties.
The company expects rental income from office properties will fall in the second half. Rental income from offices is expected to improve next year.
On the mainland, operating profit dropped 5 per cent to HK$560 million.
