WHARF REIC (01997) announced its annual performance with a 2% year-on-year increase in underlying net profit to HK$6.139 billion. It proposes to distribute a second interim dividend of HK$0.6 per share.

WHARF REIC (01997) announced its full-year performance in 2024, with group revenue decreasing by 3% year-on-year to HK$12.912 billion and operating profit decreasing by 3% year-on-year to HK$9.691 billion. Underlying net profit increased by 2% year-on-year to HK$6.139 billion, equivalent to HK$2.02 per share. Including a net revaluation deficit of HK$5.621 billion on investment properties, the Group's profit attributable to shareholders was HK$0.891 billion. Basic earnings per share were HK$0.29. The first interim dividend of HK$0.64 per share was paid on September 10, 2024. The second interim dividend of HK$0.6 per share will be paid on April 24, 2025 to shareholders registered in the share register by 6:00 p.m. on April 7, 2025, replacing the final dividend. The total dividend for 2024 was HK$1.24 per share (2023: HK$1.28 per share), representing 65% of the underlying net profit from Hong Kong investment properties and hotels. The announcement stated that the local economy showed signs of moderate growth, but demand for commercial properties remained weak. Retail sales, which rebounded briefly after the onset of the pandemic in early 2023, have since declined due to the strong Hong Kong dollar and slow pace of interest rate cuts. Office demand also weakened as businesses sought to control costs in uncertain circumstances. The vacancy rates at Harbour City and Times Square malls remained at low levels, but declining tenant sales led to a decrease in turnover rent, affecting the Group's revenue. An increase in tourist arrivals supported hotel occupancy rates, but room rates fell in line with market conditions. Office tenants continued to focus on cost control in the unclear operating environment. The Group provided flexible leasing terms and accelerated property improvements to maintain competitiveness, successfully increasing the occupancy rate to 90% by the end of the year. With an uncertain interest rate outlook, the Group actively managed debt, reducing net debt to HK$34.2 billion, the lowest level since listing, and mitigating the impact of borrowing costs on the Group's profit.