Wharf Holdings Ltd. (00004.HK) expects the growth prospects for Hong Kong’s retail sector to remain subdued for the next two to three years, the Hong Kong Economic Journal reported.
The conglomerate, however, is holding firm on lease renewals and hasn’t reduced the rents on any contracts in its malls, the report said, citing chairman and managing director Stephen Ng Tin-hoi.
Wharf recorded over 12 percent decline in retail sales at its flagship Harbour City and Times Square properties last year.
Nonetheless, the overall rental income from investment properties in the city, including malls and offices, rose 6.6 percent to HK$12.17 billion.
The profit contribution of retail segment to the company’s total rental income, meanwhile, has dropped to 15 percent from 30 percent in the past.
The conglomerate booked core earnings of HK$10.97 billion in total for 2015, up 4.7 percent from the previous year, with profit from core properties rising 9.5 percent.
[Chinese version 中文版]
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