Wharf posts first-half profit as Hong Kong luxury property market offsets mainland woes
Developer sells penthouse at its 50 per cent-owned Mount Nicholson development on The Peak for a record HK$144,000 per square foot
Hong Kong developer Wharf (Holdings) swung to a profit in the first half, supported by lower borrowing costs and a recovery in the city’s luxury housing market that offset weaker demand in its mainland China operations.
Profit attributable to equity shareholders came in at HK$535 million (US$68.2 million), reversing a HK$2.64 billion loss a year earlier, according to a filing to the Hong Kong stock exchange on Tuesday.
Underlying net profit, a reflection of the company’s business operations after excluding revaluations, rose 3 per cent to HK$2.04 billion in the six months to June due to a reduction in interest expenses and taxes. Revenue, however, fell 19 per cent to HK$5.67 billion.
The company will pay an interim dividend of HK$0.20 per share, unchanged from last year.
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The improved sentiment in Hong Kong’s luxury residential sector helped the company achieve a record HK$144,000 per square foot for a penthouse at its 50 per cent-owned Mount Nicholson development on The Peak. The flat was sold for HK$609 million in the first half, driving revenue from projects in the city 56 per cent higher to HK$475 million.
Stephen Ng, chairman and managing director of The Wharf Group, said there was growing interest in the city’s luxury housing sector from potential buyers. However, buyers were still “relatively prudent about how much they’re prepared to pay”, he added.