Wharf Real Estate Investment Company Limited (Wharf REIC) reported a 6.16 % rise in underlying net profit to HK$3.31 billion for the six months ended 30 June 2026, propelled chiefly by a 37.3 % drop in finance costs to HK$535 million as the effective borrowing rate eased to 3.5 % from 4.4 %.

Group revenue slipped 1.05 % year on year to HK$6.34 billion, while operating profit declined 1.71 % to HK$4.60 billion. A HK$3.60 billion investment-property revaluation deficit resulted in a statutory loss attributable to shareholders of HK$176 million, markedly narrower than the HK$2.41 billion loss recorded a year earlier.

Cash-flow and balance-sheet metrics strengthened. Net cash inflow before financing jumped 41 % to approximately HK$4.80 billion, and net debt fell by HK$2.80 billion to HK$29.20 billion. Gearing retreated to 15.9 % (31 December 2025: 17.2 %) and is projected to drop to about 11 % upon completion of the HK$6.73 billion sale of Wheelock Place in Singapore, agreed in July at a 12 % premium to book value.

Reflecting lower leverage, the board lifted the distribution payout ratio from 65 % to 90 % of recurrent core underlying profit, implying a 38 % step-up in base dividends. The first interim dividend was raised 42 % to HK$0.94 per share, totalling HK$2.85 billion and payable on 10 September 2026.

Segment highlights: • Investment properties: Revenue dipped 2.0 % to HK$5.27 billion; operating profit slipped 2.5 % to HK$4.41 billion after rent pressure in office assets. • Harbour City: Revenue advanced 1 %; operating profit was flat as retail sales outpaced the market and occupancy closed at 92 %. • Times Square: Revenue and operating profit declined 12 % and 13 %, respectively, amid stiff competition and office supply additions; retail occupancy stood at 95 %, office at 89 %. • Hotels: Revenue climbed 10.0 % to HK$842 million and operating profit almost doubled to HK$91 million on stronger tourism and improved average room rates. • Investment income: Fell 20.3 % to HK$114 million, mirroring smaller dividends from equity holdings. • Development properties: Revenue slipped 12.1 % to HK$51 million; the segment swung to HK$13 million operating profit versus a small loss a year earlier.

Total assets were HK$225.25 billion, of which investment properties comprised HK$208.16 billion (93 % of business assets). Shareholders’ equity stood at HK$179.85 billion, equivalent to HK$59.24 per share.

Management expects stable inbound tourism and a firmer residential market to underpin consumption, but notes lingering uncertainties from interest-rate trends, mainland capital-flow regulations and geopolitical tensions. The company will maintain a “prudent, low-leverage” stance while continuing portfolio optimisation, including completion of the Wheelock Place divestment in late August 2026.