Wharf Real Estate Investment Company Limited · HKEX:1997
Wharf Real Estate Investment — Wharf Real Estate Inv — H1 2025 Earnings Presentation
29 slides from Wharf Real Estate Investment's earnings presentation, Aug 7, 2025
Slide 1: De-Leveraging Continues While Asset Value Falls
De-Leveraging Continues While Asset Value Falls Wharf Real Estate Investment Company Limited 2025 Interim Results | 7 Aug 2025
Slide 2: Results Highlights
Results Highlights ▪ Investment Properties Revenue & OP Slipped ▪ Borrowing Cost ↓ 27%, with Gearing at 17.6% New Low ▪ UNP Stable & Healthy ▪ IP Revaluation Deficit Widened but Unrealised & Non-cash ▪ Interim DPS Increased on Application of Consistent Dividend Policy OVERVIEW Wharf Real Estate Inve
Slide 3: Base-building
Base-building HK Retail Sales & Harbour City Retail Revenue HK$ Billion HK$ Billion 5 500 ▪ Retail Market is Perhaps Base-building Amid Weak Macro & Shifting Patterns 4 377 400 - HK Retail Sales Retreated to 2011 Level - Harbour City Retail Revenue at 2014 Level 3 2.8 300 ▪ Prime Asset Underpins Pre
Slide 4: Quarter-on-Quarter Improvement
Quarter-on-Quarter Improvement ▪ HKD Weakened & HIBOR Dropped Sharply in 2Q ▪ Momentum Improved for HK Retail Sales (1Q -7%; 2Q +0.3%) & Visitor Arrivals (1Q +9%; 2Q +15%) ▪ Geopolitical/Socioeconomic Developments Reshaping Market & Investment Landscape in HK & Mainland China Currency Movement (Dail
Slide 5: HKIP: Mixed Performance
HKIP: Mixed Performance HKIP Revenue Breakdown 1H25: $5.2B (-3%) HK$ Billion 14 ▪ Retail Rental Dragged by Turnover Rent; Reversion 12 0.2 0.2 0.2 0.2 0.2 Remains Challenging 10 3.7 3.4 3.1 3.1 S.A. 3.4 ▪ Office Rental +2% Due to Improved Occupancy YoY; 8 Office Negative Reversion, Weak Demand & Ove
Slide 6: Financial Highlights
Financial Highlights HK$M 1H25 1H24 YoY Chg Group Revenue 6,407 6,501 -1% - HKIP & Hotel 5,917 6,071 -3% ▪ Core UNP +3%; Lower HIBOR & Borrowing Cost Operating Profit 4,684 4,915 -5% - Borrowing Cost ↓ $292M YoY or ↓ 27% - HKIP & Hotel 4,469 4,644 -4% Underlying Net Profit (UNP)* 3,119 3,123 +0% ▪ G
Slide 7: Prudent Financial Management
Prudent Financial Management Net Debt (HK$ Billion) 52.0 ▪ De-Leveraging Continues While Asset Value Falls 47.5 45.2 42.5 42.6 - Since IPO, Total Equity ↓11% (Mainly from IP 39.4 36.3 34.2 35.1 Revaluation) but Net Debt ↓21% 33.3 - Vs End-2020 Peak, Total Equity ↓10%; Net Debt ↓ 36% Total Dec-17 Dec
Slide 8: HK Investment Properties
HK INVESTMENT PROPERTIES Wharf Real Estate Investment Company Limited – 2025 Interim Results | 8
Slide 9: Malls: Enhancing Experiential Retail
Malls: Enhancing Experiential Retail Harbour City Times Square ▪ Louis Vuitton Flagship Expansion Dedicated to VIPs ▪ Louis Vuitton Re-opened & Loewe Expanded ▪ Strategic Location for New Retail Concept & Debut Brand ▪ Distinctive Brand Offerings & Unique Experience Louis Vuitton - Largest Retail Fl
Slide 10: Office: Respectable Performance
Office: Respectable Performance Office Occupancies* 100% ▪ Oversupply is a Challenge for Global Financial Centres 90% ▪ Low Leverage to Navigate Extended Difficult Market 94% ▪ Proactive Management Strategies 80% 90% 90% 86% 86% - Prime Locations & Benefits from Mixed-use Complexes - LEED Platinum f
Slide 11: Harbour City: Steady Performance
Harbour City: Steady Performance Harbour City Revenue Breakdown 1H25: $4.6B (Flat) Occupancy (Jun 2025) HK$ Billion ▪ Base Rent Grew Despite Mild Retail Revenue Decline 12 Retail Office 93% 90% ▪ Focused Effort on Refining Mall Tenant Mix & Marketing 10 0.2 0.2 0.2 0.4 0.2 0.2 1.0 1.0 - Intelligentl
Slide 12: Harbour City: Prime Location & Critical Mass
Harbour City: Prime Location & Critical Mass Harbour City Debuts & Strategic Expansion (Selected Brands) Retail Rental Category Breakdown 1H25: $2.5B (-2%) F&B & Ent. 6% Dept. (Expansion) (Flagship; Expansion) (Flagship; Expansion) Store 3% Sports- wear Fashion Leather Goods 3% 34% 27% Electronics E
Slide 13: Times Square: Rejuvenating Tenant Mix
Times Square: Rejuvenating Tenant Mix Times Square Revenue Breakdown 1H25: $0.8B (-15%) Occupancy ▪ Retail: Occupancy +2 ppt YoY HK$ Billion (Jun 2025) Retail 96% 2.5 Office 90% - Enrich Mix of New Brands & Unique Experiences 2.0 - New F&B Concepts to Unveil at Basement Floor 0.7 0.7 1.5 0.7 0.6 ▪ O
Slide 14: Hotels
HOTELS Wharf Real Estate Investment Company Limited – 2025 Interim Results | 14
Slide 15: Canton Road Hotels & The Murray
Canton Road Hotels & The Murray Hong Kong All Hotels HK$ 100% 1,600 90% 1,392 ▪ Improved Occupancies Drove Revenue & OP Growth 82% 85% 85% 1,332 1,400 80% 1,220 - Canton Road Hotels: Synergy with Harbour City 70% 1,200 1,000 - The Murray: Prime Location in Central 60% 50% 800 ▪ Room Rates, Dining &
Slide 16: Outlook
OUTLOOK Wharf Real Estate Investment Company Limited – 2025 Interim Results | 16
Slide 17: Unforeseeable Geopolitical & Economic Developments
Unforeseeable Geopolitical & Economic Developments ▪ Geopolitical Risks & Evolving Sino-US Relations Remain Top Concern in Shaping Economic Growth Prospects ▪ Renewed Vitality in HK Financial Sector & Major Events May Fuel Market Momentum ▪ Macro Environment, Interest Rate Trajectory & Currency Move
Slide 18: Sustainability
SUSTAINABILITY Wharf Real Estate Investment Company Limited – 2025 Interim Results | 18
Slide 19: Committed to Science Based Targets Initiative (SBTi)
Committed to Science Based Targets Initiative (“SBTi”) ESG Indexes & Benchmarks SBTi Commitment Hang Seng ESG 50 Index Near-term GHG Emissions Reductions Targets Approved Management Band Score of B ESG Reporting Standard/ Recommendations Reduce 42% GHG Emissions by 2030 Scope 1 and 2 from 2022 Base
Slide 20: ESG Performance & Recognitions
ESG Performance & Recognitions Sustainable Buildings & Operations LEED Platinum v4.1 (Existing Buildings: Operations and Maintenance) • Gold Certified - Marco Polo Hongkong Hotel • Times Square • Harbour City* • Silver Certified - The Murray, Niccolo Suzhou Green Mark Gold Award (Existing Non-Reside
Slide 21: Environmental: Asset Enhancements & Renewable Energy
Environmental: Asset Enhancements & Renewable Energy Solar-powered Systems Innovative Energy Management Practice • Harbour City: 320 Solar Photovoltaic Panels to Support Renewable • Harbour City: Innovative Approach to Connect Chilled Water Systems Energy Development & FiT* Scheme of Different Opera
Slide 22: Social: Community Contributions
Social: Community Contributions Business-in-Community Supports Youth Development via Volunteer Activities • Project WeCan • Brushing & Revitalising Ling On Nursery School • The Wharf Art Scholarship Scheme • The Community Chest - Walk for Millions • Architectural Design Internship Programme Project
Slide 23: People: Governance, Talent Development & Workplace Safety
People: Governance, Talent Development & Workplace Safety Board Composition (12 Board Members as of 30 Jun 25) Corporate Governance Designation • • Sustainability Anti-corruption Training:Steering Committee Nearly 700 Hours For Anti-corruption Training Directors with Executive Functions (33%) INED (
Slide 24: Appendix
APPENDIX Wharf Real Estate Investment Company Limited – 2025 Interim Results | 24
Slide 25: HC/TS/PH Performance
HC/TS/PH Performance 1H25 (HK$B) Harbour City Times Square Plaza Hollywood Retail 2.8 0.5 0.2 Office 1.2 0.3 - Hotels & Club 0.5 - - Serviced Apt. 0.1 - - Total Revenue 4.6 0.8 0.2 Valuation* as of 30 Jun 2025 156.7 42.0 8.0 1H25 Avg. Retail Passing Rent 362 120 76 (HK$ psf per Month) *Incl. Hotels
Slide 26: Premium Quality Portfolio
Premium Quality Portfolio Revenue Valuation* GFA Harbour City Harbour City Harbour City 75.8% 68.4% 68.5% 1H25 Revenue Valuation GFA $6.1B $229.7B 12.3M s.f Singapore Assets Singapore Times Square Times Square Singapore 2.9% Plaza Assets 18.3% 16.1% Assets Hollywood Central Central Plaza Central Tim
Slide 27: Overview of Application of Funds
Overview of Application of Funds Major Capital & Development Expenditure To be Incurred in Coming Years HK$M Incurred in 1H25 Committed Uncommitted Total HKIP 43 76 563 639 Singapore IP - - - - Mainland Properties 3 145 133 278 Hotels & Others 5 19 - 19 Total 51 240 696 936 APPENDIX Wharf Real Estat
Slide 28: Thank You
De-Leveraging Continues While Asset Value Falls Thank You Wharf Real Estate Investment Company Limited – 2025 Interim Results | 28
Slide 29: Disclaimer
Wharf Real Estate Investment Company Limited [HKEx Stock Code: 1997.HK] Disclaimer All information and data are provided for information purposes only. All opinions included herein constitute our judgment as of the date hereof and are subject to change without notice. The Group, its subsidiaries and
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