Wharf Real Estate Investment Company Limited · HKEX:1997
Wharf Real Estate Investment — Wharf Real Estate Inv — Q2 2026 Earnings Presentation
29 slides from Wharf Real Estate Investment's earnings presentation, Aug 7, 2026
Slide 1: 42% Dividend Increase on Payout Revision
42% Dividend Increase on Payout Revision Wharf Real Estate Investment Company Limited 2026 Interim Results | 6 Aug 2026
Slide 2: Results Highlights
Results Highlights ▪ Group UNP +6% on Lower Interest Cost ▪ Net Cash Inflow before Financing +41% or $1.4B ▪ Distribution Payout Ratio Revised from 65% to 90% of Recurrent Core UNP ▪ Policy Change Implies a 38% Increase in Base Dividends ▪ First Interim Dividend +42% to 94 Cents per Share ▪ Wheelock
Slide 3: Disciplined Debt Management
Disciplined Debt Management Gearing Floating-rate Moody’s Rating Interest Cover 15.9% 89% A2 8.2x (↓1.3 ppts from Dec-25) of Total Debt (Stable Outlook) (1H25: 6.2x) Net Debt & Gearing at Record Low Debt Maturity (HK$ Billion) HK$ Billion Net Debt (LHS) Gearing (RHS) Total Gross Debt: $31.2B (As at
Slide 4: De-leveraging Support Resilient Earnings
De-leveraging Support Resilient Earnings Net Debt Borrowing Costs UNP & DPS DPS ↓$22.8B ↓$204M YoY Resilient ↑ 42% YoY Since Dec-20 26% Decline amid Rate-hike Cycle Mid-SD Growth in 2025 Borrowing Costs Savings UNP & DPS Trend HK$ Billion Borrowing Costs Net Debt HK$ Billion HK$ Billion Group UNP DP
Slide 5: Financial Highlights
Financial Highlights ▪ Group Loss Narrowed on Lower IP Revaluation Deficit; HK$M 1H26 1H25 YoY Chg Group Revenue 6,340 6,407 -1% Cap Rates Unchanged - HKIP & Hotel 5,881 5,917 -1% Operating Profit 4,604 4,684 -2% ▪ Group UNP +6% & Recurrent Core UNP +3% on Lower - HKIP & Hotel 4,398 4,469 -2% Borrow
Slide 6: Prime Gem Income Pillar
Prime Gem Income Pillar HKIP & Hotel Revenue Breakdown HKIP & Hotel Revenue Harbour City Contribution 1H26: $5.9B (-1%) Breakdown to HKIP HK$ Billion 14 Retail S.A. & Hotels Office Retail 59% 12 Retail 0.9 1.6 1.6 1.7 Office 26% 81% 56% 1.0 10 S.A. & Hotels 15% Revenue GFA 3.4 3.1 3.1 3.1 3.4 8 Tota
Slide 7: 1H26 Key Metrics
1H26 Key Metrics Core Revenue Recurrent Core UNP DPS Core Assets: HKIP & Hotels $5.9B $3.2B $0.94 (-1%) (+3%) (+42%) Harbour City (Incl. Hotel) Revenue UNP Retail Sales 79% of Core Revenue 86% of Recurrent Core UNP $4.6B $2.7B Outperformed (+1%) (+4%) HK Overall Market Wharf Real Estate Investment C
Slide 8: Investment Properties
Investment Properties a t TEL sian
Slide 9: 1H26 HK Retail Sales & Visitor Profile
1H26 HK Retail Sales & Visitor Profile ▪ Retail Sales $203B, +10% Led by Discretionary ▪ Local Outbound 61.8M, ~70% of Total Border ▪ 49% of Visitors were Same-day (Mainland) Crossings ▪ Visitor Arrivals 26.7M, +13% Led by Same-day ▪ Local Outbound +9%, 89% by Land ▪ Top 5 Markets (Mainly Short-haul
Slide 10: Retail – Uneven Recovery
Retail – Uneven Recovery Harbour City: Retail Rental Category Breakdown 1H26: $2.5B (-2%) ▪ Tenant Sales at HC Outpaced HK Market; TS Positive F&B & - High-end, Luxury Tenants Particularly Strong Ent. 5% ▪ Period-end Occupancy: HC 92%; TS 95% Dept. Store 4% ▪ Retailers Cautious about Making Major Co
Slide 11: Excitements with Many “Firsts”
Excitements with Many “Firsts” Zegna – Luxury Brand Expanding Presence Toys“R”Us – First World-Class Flagship Other HK Debuts Harbour City Selected Expansions & Strategic Relocations SKIMS – One of First Asia’s Flagships FIFA Museum – Asia’s First Selected New Brands (HK Debut) (HK Island Debut) Tim
Slide 12: Creating Buzz At Every Turn
Creating Buzz At Every Turn Blockbuster IP & Anime Journey Sports Brand Activation Art & Music Galas Forever Toys @ HC Minions & Monsters: BELLO! HOLLYWOOD @ TS adidas FIFA 2026 The Yard @ HC YouTube Music Nights @ TS Forever Toys @ HC Bandai Namco Asia Journey @ HC lululemon Evening Run @ TS Le Chi
Slide 13: Office – Cautious Stabilisation
Office – Cautious Stabilisation Office Occupancies* Property Occ. District Avg.^ ▪ Flexible Leasing Strategy Drove Above-Mkt. Occupancy 100% 97% 93% 93% 94% 89% 90% 91% 91% ▪ Expediting Premises Upgrade to Reinforce Positioning 80% - LEED Platinum for All Office Buildings at HC & TS 60% ▪ Recovery U
Slide 14: Hotels
Hotels
Slide 15: Sustained Recovery
Sustained Recovery Hong Kong All Hotels Occupancy Avg. Room Rates HK$ 90% 1,500 ▪ Canton Road Hotels: Prime Location in Tourist Hotspot; 88% 87% 1,392 1,332 1,400 86% 1,313 Avg. Occupancy Outperformed the District 86% 85% 85% 1,263 1,220 1,300 84% 1,200 ▪ The Murray: Stronger Corporate Demand & DD G
Slide 16: Outlook
Outlook
Slide 17: Growth Gradual & Uneven
Growth Gradual & Uneven HK Market Sector-specific External Uncertainties ▪ “Safe Haven” in Troubled Times ▪ Segmented Recovery in Commercial ▪ Renewed Upward Pressure on Interest Property Market Rates ▪ Weaker HKD Enhances Competitiveness ▪ China’s New Outbound Investment Rules ▪ Prolonged Geopoliti
Slide 18: Sustainability
AE Lt 2 aT Sustainability
Slide 19: ESG Frameworks & Recognitions
ESG Frameworks & Recognitions SBTi Commitment ESG Reporting Standards/ Recommendations ESG Reporting Code Referencing: Near-term GHG Emissions Reductions Targets Validated ISSB Standards ESG Indexes & Benchmarks Scope 1 and 2 Reduce 42% GHG Emissions by 2030* Reduce 25% GHG Emissions Management Band
Slide 20: Sustainable Operations & Finance
Sustainable Operations & Finance Sustainable Buildings & Operations Sustainable Finance LEED Platinum v4.1 EarthCheck $23.2B Sustainability-linked Loans (Existing Buildings: Operations and Maintenance) • Gold Certified Raised Accumulatively As at 30 Jun 2026; • Harbour City* Marco Polo Hongkong Hote
Slide 21: Environmental: Asset Enhancements & Renewable Energy
Environmental: Asset Enhancements & Renewable Energy Solar Power Systems Innovative Energy Management Practices • Air-Conditioning (A/C) System Optimisation: • Solar Photovoltaics: - Innovative Approach in Connecting Chilled Water Systems of Different Over 400 Solar Panels are Deployed at Operating
Slide 22: Social: Community Contributions
Social: Community Contributions “Business-in-Community” Initiatives Community Care Donation Supports Youth Development via Healthy & Happy Ageing Among Top 3 Donors • Project WeCan • Soft Meal Preparation Training of the Community Chest • The Wharf Art Scholarship Scheme • Caregivers Sharing on Prac
Slide 23: People: Governance, Talent Development & Workplace Safety
People: Governance, Talent Development & Workplace Safety Board Composition (12 Board Members as of 6 Aug 26) Corporate Governance Designation Sustainability Steering Committee Anti-corruption Training Directors with Executive Functions (33%) INED (67%) Chaired by Chairman For Board Members, Directo
Slide 24: Appendix
Appendix
Slide 25: HC/TS/PH Performance
HC/TS/PH Performance 1H26 (HK$B) Harbour City Times Square Plaza Hollywood Retail 2.8 0.4 0.2 Office 1.2 0.3 - Hotels & Club 0.5 - - Serviced Apt. 0.1 - - Total Revenue 4.6 0.7 0.2 Valuation* as of 30 Jun 2026 152.2 38.5 7.5 1H26 Avg. Retail Passing Rent 367 99 60 (HK$ psf per Month) *Incl. Hotels a
Slide 26: Premium Quality Portfolio
Premium Quality Portfolio Revenue Valuation* GFA Harbour City Harbour City Harbour City 76.8% 69.2% 68.5% 1H26 Revenue Valuation GFA $6.1B $220.7B 12.3M s.f Singapore Assets # Singapore Times Square Singapore Times Square 3.0% Assets # 17.4% Assets # 16.1% Plaza Central Times Square Plaza Central Pl
Slide 27: Overview of Application of Funds
Overview of Application of Funds Major Capital & Development Expenditure To be Incurred in Coming Years HK$M Incurred in 1H26 Committed Uncommitted Total HKIP 82 40 915 955 Singapore IP 1 - - - Mainland Properties 2 134 152 286 Hotels & Others 14 29 4 33 Total 99 203 1,071 1,274 Wharf Real Estate In
Slide 28: Thank You
42% Dividend Increase on Payout Revision Thank You
Slide 29: End of Presentation
End of Presentation 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,
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