Wharf REIC reports HK$2.4bn interim loss despite lower borrowing costs

Wharf Real Estate Investment Company Limited (Wharf REIC) reported a loss attributable to equity shareholders of HK$2,406 million for the six months ended June 30, 2025, a notable increase from HK$1,052 million in the prior year. This was largely driven by a net investment property revaluation deficit of HK$5,118 million, up from HK$4,426 million in 2024. Despite this, the underlying net profit remained stable at HK$3,119 million, equivalent to HK$1.03 per share.

The Group's revenue decreased by 1% to HK$6,407 million, with investment property revenue down 3% to HK$5,371 million. Hotel revenue, however, increased by 2% to HK$766 million, with operating profit nearly doubling to HK$47 million. Borrowing costs decreased by 27%, with the effective borrowing rate dropping to 4.4% per annum from 5.7% in 2024, and gearing reached a new low of 17.6%.

A first interim dividend of HK$0.66 per share (2024: HK$0.64) will be paid on September 11, 2025, totaling HK$2,004 million. Net debt decreased by HK$0.9 billion to HK$33.3 billion as at June 30, 2025.