Wharf posts first-half profit as Hong Kong luxury market offsets mainland woes

Developer sells penthouse at its 50 per cent-owned Mount Nicholson development on The Peak for a record HK$144,000 per square foot

Hong Kong developer Wharf (Holdings) swung to a profit in the first half, supported by lower borrowing costs and a recovery in the city’s luxury housing market that offset weaker demand in its mainland China operations.

Profit attributable to equity shareholders came in at HK$535 million (US$68.2 million), reversing a HK$2.64 billion loss a year earlier, according to a filing to the Hong Kong stock exchange on Tuesday.

Underlying net profit, a reflection of the company’s business operations after excluding revaluations, rose 3 per cent to HK$2.04 billion in the six months to June due to a reduction in interest expenses and taxes. Revenue, however, fell 19 per cent to HK$5.67 billion.

The company will pay an interim dividend of HK$0.20 per share, unchanged from last year.