Wharf Real Estate Investment Company (WHARF REIC, 01997) surged 5.16% during Thursday's intraday trading session, as investors cheered the company's strong interim results and a significant dividend boost.
The rally came after Wharf REIC reported a 6% rise in underlying net profit to HK$3.31 billion for the first half of 2026. While statutory net loss attributable to shareholders stood at HK$176 million, this marked a dramatic 92.69% narrowing from the HK$2.41 billion loss a year earlier, driven largely by a 37% decline in finance costs to HK$535 million and an improved investment property revaluation deficit. The board declared a first interim dividend of HK$0.94 per share, a 42% increase from the prior year, reflecting a decision to lift the distribution payout ratio from 65% to 90% of recurrent core underlying profit.
Investors also welcomed the group's strengthened balance sheet, with net debt falling to HK$29.2 billion and the gearing ratio dropping to a historic low of 15.9%. Office occupancy improved to 93%, while the hotel segment saw revenue climb 10% and operating profit nearly double. The pending HK$6.73 billion sale of Wheelock Place in Singapore at a premium to book value is expected to further reduce gearing to around 11%, reinforcing confidence in the company's prudent capital management and improving earnings outlook.