12:00AM New York - Wharf Holdings Limited reported turnover in the year ended December 31st increased from HK$13.3 billion a year earlier to HK$16.2 billion on rising demand of properties that helped boost earnings.
Annual Earnings Review
Wharf Holdings Limited reported turnover increased 21% to HK16.2 billion from HK$13.3 billion a year ago.
For the year, profit attributable to shareholders grew 22% to HK$13.3 billion from HK$10.7 billion a year ago. Earnings per share also advanced 22% from HK$4.39 per share a year ago to HK$5.37 per share in the fiscal year.
Group operating profit for the year surged HK$9.4 billion from HK$6.4 billion a year earlier.
Wharf Holdings proposed a final dividend for the year ended 31 December 2007 of HK$0.44 per share, bringing the total dividend for the year to HK$0.80 per share.
Segment Review
Habour City
Wharf’s core investment property asset Harbour City’s turnover rose 15% over 2006 to HK$4.29 billion, while operating profit increased by 19% to HK$3,067 million.

At the end of 2007 Habour City, excluding the three hotels which are stated at cost less accumulated depreciation, was valued at HK$55.2 billion, which is 38% of total Group assets.

Retail

Turnover of Habour City’s retail sector increased 18% to HK$1.7 billion driven mainly by rising domestic consumption that was induced by rising household incomes and a 10-year record low unemployment rate.

Average retail occupancy at Harbour City was maintained at nearly 100% with favourable rental growth.

Also average sales per square foot rose 27% year-on-year, shoppers’ foot traffic for the year grew by 15% to 75 million and total sales in 2007 set a new record at HK$11.4 billion.

In addition, average sales per square foot in December rose to a record HK$1,800.

Leather goods, jewellery & watches, audio-visual products and cosmetics posted strong sales growth during the year.

During the year, Wharf completed Phase I of the renovation of Ocean Centre, with the opening of Chanel Boutique and the Italian restaurant Nobilduca.

Office

Turnover from the office sector grew by 21% to HK$ 1.3 billion as demand for office space was driven by business expansion and upgrading requirements.

Office occupancy at Harbour City stood at 95% at the end of December 2007 and new lettings was 626,084 square feet.

Wharf reported that lease renewal retention stood at 64% as there was adequate supply in decentralized areas.

Serviced Apartments

During the year, turnover for serviced apartments rose by 21% to HK$245 million due to higher occupancy and rental rates during the year.

There was also increased demand, especially from the finance sector and China business.

At the end of December 2007, committed occupancy at Gateway Apartments grew to over 90%.

Times Square

Turnover from Times Square, which is a core investment property asset of the Group, increased 14% over 2006 to HK$1.13 billion during 2007, while operating profit for the period gained 15% to HK$968 million.

The property was valued at HK$21.1 billion at the end of 2007.

Retail