By Clarence Leong
Wharf Real Estate Investment Co. swung to a loss in the first half, as revenue declined amid the impact of a Covid-19 outbreak in Hong Kong, which weighed on consumption.
The real estate company, which engages in retail, office and hotel operations, said net loss was 1.47 billion Hong Kong dollars (US$187.3 million) for the first six months, compared with HK$2.97 billion net profit in the year-earlier period.
Revenue declined 17% from a year earlier to HK$6.21 billion, which Wharf REIC said was mainly due to lower development properties recognition by subsidiary Harbor Center Development Ltd.
“Much of the first half of 2022 was shrouded by the 5th wave of Covid-19” in Hong Kong, the company said. But marketing campaigns after the fifth wave led to a “rapid revival in foot traffic and spending sentiment.”
For its other segments, the office market “remained soft as most corporates delayed expansion and leasing decisions amid vulnerable economic conditions,” while the hospitality sector is still largely dependent on the local market, Wharf REIC added.
The company also said economic uncertainties from factors including interest-rate increases, inflation and geopolitical tensions “may darken the outlook for global growth.”
Write to Clarence Leong at [email protected]
Credit: www.marketwatch.com /