The Wharf (Holdings) (4) H1 2026 earnings summary

Executive summary

• Operating and underlying profits (excluding investments) rose 6% year-over-year, with revenue up 2% despite a challenging environment and lower investment income from equity portfolio unwinding.

• Group underlying net profit fell 17% to HK$1,697 million due to lower dividend income from equity disposals, partially offset by higher interest income.

• Profit attributable to shareholders dropped to HK$48 million, impacted by a HK$2,049 million investment property revaluation deficit.

• Interim and special dividends totaling HK$0.40 per share were declared for the 140th anniversary, doubling last year's interim payout.

Financial highlights

• Group revenue decreased 6% year-over-year to HK$5,344 million; operating profit down 11% to HK$2,354 million.

• Investment properties revenue and operating profit remained flat in HKD terms, but fell 3% in RMB terms.

• Development properties revenue fell 8% to HK$679 million; operating profit plunged 83% to HK$12 million.

• Hotels revenue rose 4% to HK$323 million; operating loss narrowed to HK$4 million.

• Logistics revenue stable at HK$1,073 million; operating profit down 19% to HK$111 million.

Outlook and guidance

• Global outlook remains uncertain amid geopolitical tensions, volatile energy prices, inflation, and US interest rate concerns.

• Hong Kong residential market remains robust but faces regulatory uncertainty and tighter outbound investment regulations.

• Mainland China property sector remains challenged, with uneven recovery and persistent weakness.

• The group will maintain strong financial discipline, capital allocation, and agility to adapt to evolving trends.