Wharf Real Estate Investment Company’s (REIC) interim results was not too bad.
Wharf REIC Interim Income StatementI first wrote about Wharf REIC here. If you are not familiar with it, you might want to get a short overview of it through that article.
Operating profit showed an improvement over last year. The profit attributable to shareholders was lower due to a reduction in fair value increase of the investment properties.
That portion should be OK. We should look upon the recurrent earnings or cash flow aspect of the business.
The majority of the revenue for Wharf REIC (1997) is from its retail and commercial office rental income. In the past, since the cash flow is so recurring, we would annualized the earnings or cash flow. We could then assume a no growth scenario and see the relative valuation of Wharf REIC versus its peers in the same industry.
If
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