Hong Kong's Wharf Holdings Net Profits down amid
Core Profits Rise
August 18th, 2015
Hong Kong’s Wharf Holdings, the real estate developer that owns two of Hong Kong’s largest shopping centers Harbour City and Time Squares, reported net profit retreated to HKD 7.27 billion for the first half this year from HKD 11.91 billion same period last year, whereas operating profit rose to HKD 7.48 billion during the same time period from HKD 7.12 billion of the year before.
Total turnover amounted to HKD 17.91 billion for the first half, up from HKD 16.31 billion the year before. Revenue from Hong Kong investment properties contribution to the firm’s earnings increased by 9 percent to HKD 6.05 billion and operating profit by 8 percent to HKD 5.31 billion.
Revenue (excluding hotels) of Harbour City increased by 8 percent to HKD 4.82 billion and operating profit by 7 percent to HKD 3.78 billion. Against the backdrop of a challenging market, retail revenue increased by 7 percent to HKD 2.99 billion. Occupancy rate of the Harbour City, was maintained at virtually 100 percent, the company told a conference when announce the result. Notwithstanding the temporary closure of 7 to 8 percent of retail area for renovation, revenue from Times Square increased by 7 percent to HKD 1.32 billion and operating profit by 6 percent to HKD 1.18 billion.
Consolidated operating profit from China Development properties increased by 35 percent to HKD 1.13 billion. The company has 27 projects on sale across six cities and three new projects in three cities were launched for presale in Eastern China. They generally received overwhelming responses, particularly in Shanghai, Suzhou and Hangzhou.
Wharf Holdings, subsidary of property group Wheelock and the Company, currently has six projects on sale in central and southern China and ten in northern China. During the reporting period, the company’s investment in Greentown China was reclassified as a financial investment with an accounting loss of HKD 1.5 billion during the interim result time period.
The company says the combined value of the developments (attributable GFA: at least 397,000 square feet) on the Peak of Hong Kong is estimated to be HKD 28 billion (or about HKD 71,000 per sqft of GFA.)