WHARF REIC(HK:01997) Zhi Tong Cai Jing·2025-08-08 06:03Core Viewpoint - Kowloon Warehouse Properties (01997) experienced a significant decline of over 10%, with a current price of HKD 23.08 and a trading volume of HKD 284 million [1] Financial Performance - For the first half of 2025, the company reported revenue of HKD 6.407 billion, a year-on-year decrease of 1.45% [1] - The attributable loss to shareholders was HKD 2.406 billion, representing a year-on-year increase of 128.71% [1] - Excluding the impairment of investment properties, the unaudited basic net profit was HKD 3.119 billion, slightly down from HKD 3.123 billion in the same period last year [1] Management Commentary - The Chairman and Executive Director, Wu Tianhai, noted that while there are positive signs in the retail market from the second quarter, the sustainability of this improvement into the third quarter remains uncertain [1] - The management expressed caution regarding the retail market's recovery, indicating that if merchants see improvements, they may gain confidence to invest and expand operations [1] Market Expectations - JPMorgan's report indicated that while rental income improved on a half-year basis, management's outlook remains conservative, anticipating a low single-digit decline in rental renewals for the second half, which aligns with market expectations [1] - The company is evaluating an asset enhancement plan for its Marco Polo Hotels, with a total capital expenditure of approximately HKD 2 billion expected to start by the end of 2026, which may temporarily impact rental income by 5% to 6% during the enhancement period [1]