WHARF REIC (01997) fell more than 4% in Hong Kong trading. At the time of writing, the stock was down 3.92% to HK$24.98, with a turnover of HK$50.45 million. The decline follows the company's announcement of its full-year results, which showed revenue of HK$12.82 billion for 2025, a decrease of 0.75% year-on-year. The company reported a net loss attributable to shareholders of HK$4.26 billion, compared to a profit of HK$891 million in the previous year.

While the retail market performance remains below pre-pandemic levels, it has shown a steady recovery trend. The office market continues to be challenged by significant oversupply, although leasing activity has improved; however, downward pressure on rents has not eased.

Bank of America Securities noted that WHARF REIC's annual results were in line with expectations. The firm slightly reduced its dividend per share forecast for 2026 to 2028 by 1% to 2%, reflecting a more gradual recovery in rental income. Although rental income growth may lag, the bank expects that, assuming no prolonged conflict in the Middle East, the recovery in retail sales seen in the second half of last year can continue into this year, supported by an improving macroeconomic environment in Hong Kong and a stronger Renminbi. Additionally, the bank believes the company could benefit in the near term from reduced retail outflow and an increase in mainland Chinese visitors to Hong Kong, with current valuations seen as attractive.