WHARF REIC(HK:01997) Zhi Tong Cai Jing·2025-08-07 05:07Core Viewpoint - The company reported a decline in revenue and a significant increase in shareholder losses for the first half of 2025, indicating challenges in the current market environment [1] Financial Performance - Revenue for the first half of 2025 was HKD 6.407 billion, a decrease of 1.45% year-on-year [1] - Shareholder losses amounted to HKD 2.406 billion, an increase of 128.71% year-on-year, with a loss per share of HKD 0.79 [1] - The company declared an interim dividend of HKD 0.66 per share [1] Market Conditions - The number of inbound travelers in Hong Kong increased by 12%, while local outbound tourism showed signs of adjustment [1] - Retail sales in Hong Kong experienced a narrowing decline, with preliminary positive growth recorded in May and June, ending a 14-month downward trend [1] Business Strategy - The company is enhancing experiential retail services to adapt to changing tourism and consumption patterns, aiming to deepen customer engagement and drive sales [1] Real Estate Sector - The office market continues to face weak demand and oversupply, but the company's office portfolio showed improvement in occupancy rates [1] - Hotel occupancy rates increased, although room rates are under pressure due to regional competition and consumer sentiment [1] Asset Management - The company recorded impairment losses on investment properties amid a weak asset value market [1] Financial Management - The company maintained prudent financial management, reducing net debt to HKD 33.3 billion, the lowest level since its listing [1] - Average interest costs decreased to 4.4%, resulting in a 27% saving in borrowing costs [1] - The debt ratio remained at a healthy level of 17.6% [1]