Wharf Real Estate Inv Co (WRFRF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good evening, everyone. Welcome to Wolf-Rick Intron Results presentation. I am Angela Ng from the IR team. You can download the presentation from the QR code on the LED wall. Our management team presenting today includes Mr. Steven Ng, Chairman and Managing Director, Mr. Horace Lee, Director, For today's briefing, we will first go through the PowerPoint presentation and then we will open the floor for the analyst for Q&A section with the management The theme for presentation is the leveraging continues while asset value falls Now let's take a look at the results highlights In view of the persistent weak market condition, our investment properties revenue slipped by 3% and operating profit by 4%. However, thanks to the drop in highball, borrowing cost decreased by 27%. We remain committed to deleveraging with gearing further down to a new low at 17.6%. Underlying Net Profit was stable and healthy IP Revaluation Dividend widened, which is an unrealised and non-cash item Core underlying net profit from our Hong Kong investment properties and hotels increased by 3% Our dividend policy remained consistent since IPO which is 65% of our core underlying net profit Accordingly, our interim dividend per share increased by 3% to $0.66 looking at the macro environment in recent years Geopolitical tension, serious disruption to world trade and uncertainties around interest rate and the economy have continued to weight heavily on real markets The retail market in Hong Kong is perhaps in a base building phase As shown in the chart, Hong Kong's overall retail sales have retreated to 2011 level and Harbour City retail revenue at 2014 level Despite the weak market, Harbour City has maintained its revenue position relative to peers thanks to its scale, location advantage and reputation...