Wharf profit up 28% to HK$4.2bln

Growth attributed to rising retail rents as company among top investors' picks with more conservative portfolio.

Wharf (Holdings) Ltd., owner of two of Hong Kong’s largest shopping centers, said first-half underlying profit rose 28 percent on higher rental income.

Profit excluding property revaluations rose to HK$4.2 billion ($540 million) from HK$3.29 billion a year earlier, the company said on Monday in a filing to Hong Kong’s stock exchange. Sales were little changed at HK$8.62 billion.

Wharf, which owns Times Square and Harbour City malls and office complexes in the city, is benefiting from rising retail rents. The average monthly rent on Russell Street in the Causeway Bay district, where Times Square is located, stood at HK$1,200 a square foot in the first half, the third-costliest retail strip in the world, according to Colliers International Ltd.

“The performance of their retail portfolio has been quite impressive,” said Francis Lun, general manager at Fulbright Securities Ltd. “Companies like Wharf, with a lot of investment properties, will continue to be among the top picks for investors with a more conservative portfolio.”

View the full story in Bloomberg.