WHARF REIC’s shares soared 5.20% in early trading on Friday, extending a rally that began after the company reported upbeat interim results. The strong performance reflects investor optimism over the property group’s sharp loss reduction, generous dividend increase, and strategic asset disposal.
The company’s H1 attributable loss narrowed by a remarkable 92.69% to HK$176 million from HK$2.41 billion a year earlier, while underlying net profit rose 6% year-over-year to HK$3.311 billion. Management also boosted the interim dividend by 42% to HK$0.94 per share, lifting the payout ratio to 90%. Additionally, the group signed an agreement to sell Singapore’s Wheelock Place for S$1.111 billion, a move expected to reduce its net gearing ratio to approximately 11% upon completion.
Multiple investment banks responded positively, with CLSA maintaining an Outperform rating and Citi keeping a Buy recommendation, citing the better-than-expected results and the significant positive surprise from the higher payout ratio. The series of positive developments helped fuel the stock’s upward momentum.