Wharf Real Estate Investment Company Limited (Wharf REIC, 01997.HK) reported a 5.16% year-on-year rise in underlying net profit to HK$6.46 billion (HK$2.13 per share) for the financial year ended 31 December 2025. However, a HK$10.53 billion fair-value deficit on investment properties swung the group to a net loss attributable to shareholders of HK$4.26 billion, versus a HK$0.89 billion profit in 2024.

Financial Performance • Revenue slipped 0.75% to HK$12.82 billion, while operating profit declined 3.54% to HK$9.35 billion. • Investment properties (IP) remained the core earnings driver, contributing HK$10.65 billion revenue (-1% YoY) and HK$8.90 billion operating profit (-2% YoY). • Hotel revenue advanced 5.84% to HK$1.63 billion, lifting hotel operating profit 53.5% to HK$0.15 billion. • Development properties revenue contracted 24% to HK$0.12 billion, posting a HK$0.02 billion operating loss versus a HK$0.17 billion profit a year earlier. • Finance costs fell 24.6% to HK$1.36 billion as the effective borrowing rate eased to 4.1% (2024: 5.6%), reflecting lower HIBOR and reduced debt.

Balance Sheet and Liquidity • Net debt narrowed by HK$2.20 billion to HK$32.00 billion; net gearing edged down to 17.2% from 17.8%. • Shareholders’ equity slipped 3.2% to HK$181.71 billion, translating into net asset value (NAV) of HK$59.85 per share (2024: HK$61.86). • Total available funding stood at HK$43.90 billion, with HK$9.90 billion undrawn. Bank deposits and cash amounted to HK$2.03 billion at year-end. • Planned capital commitments total HK$1.32 billion, 18% of which is contractually committed.

Operational Metrics • Overall investment-property portfolio occupancy stabilised at 92%. – Harbour City: revenue HK$9.22 billion (+1% YoY); retail occupancy 92%, office 91%. – Times Square: revenue fell 10% with retail occupancy at 95% and office at 90%. • Hotels benefitted from higher visitor arrivals and mega events, boosting portfolio occupancy and room demand, though room rates lagged expectations.

Dividend The board declared a second interim dividend of HK$0.66 per share, up 10% YoY. Together with the first interim dividend of HK$0.66 per share paid in September 2025, full-year distribution totals HK$1.32 per share, representing a 6.5% increase and a 65% payout of underlying net profit from Hong Kong IP and hotels. Payment is scheduled for 23 April 2026 to shareholders on record as of 8 April 2026.

Management Outlook The group cites intensified geopolitical tensions, macroeconomic volatility and a soft office rental market as key headwinds for 2026. Management intends to preserve balance-sheet strength, sustain high occupancy for core assets and capitalise on improving retail and hospitality demand amid potential rate cuts and a gradual Hong Kong recovery.