Wharf Real Estate Inv Co (WRFRF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon everyone. Welcome to World Week interim results presentation. I am Angela from the IR team. You can download the PowerPoint presentation from the QR code on this LED wall. Our management presenting today includes Mr. Steven Ng, Chairman and Managing Director, Mr. Horace Lee, Director, We will first go through the PowerPoint presentation and then open the floor to the analysts for a Q&A session with the management. The theme for the presentation is 42% dividend increase on dividend payout revision, which I hope will give you a positive surprise. Now I will share some key highlights from the reporting period. With the leveraging as a key strategic priority since listing in 2017, we have consistently reduced our debt and gearing to new lows, resulting in stronger balance sheet and lower borrowing costs. Help by the lower borrowing costs, group underlying net profit increased by 6%, while net cash inflow before financing increased by 41%, or $1.4 billion. Considering the current earnings base and the debt profile, the Board has decided to increase the distribution payout ratio from 65% to 90% of recurrent core earnings from 2026 onwards, while keeping the policy under regular review. This implies a 38% increase in base dividends. Reflecting the revised 90% payout ratio, our interim DPS increased by 42% to $0.94. Subsequent to the period end, the Group has agreed to dispose of Willow Place in Singapore at 12% premium to book value. Under completion of the transaction later this month, our gearing is expected to fall from 16% to around 11% by end of this year, further enhancing our strength and flexibility of balance sheet. Now let's take a closer look at our financial management, which is a core strength that enables the group to navigate different market c...