MTR reveals 64 per cent rise in net profit to HK$16.8 billion, buoyed by earnings from property development
Less than one-third of the rail giant’s HK$55.44 billion in revenue last year came from its local transport operations, while income from its property portfolio in mainland China jumped five times
Less than one-third of the MTR Corporation’s HK$55.44 billion in revenue last year came from its transport operations in Hong Kong, while income from its property developments in mainland China jumped five times during the period.
The rail giant dismissed concerns that it was becoming too focused on property development. But it insisted it would continue to rely on the “rail-and-property” model to sustain its expanding operations and increased maintenance costs.
MTR may sell large Wong Chuk Hang site amid rising home prices
As compensation for the cost of building railway networks, the government grants the MTR Corporation land development rights along its rail lines, stations and depots – an increasingly lucrative business in recent years amid a red-hot property market.
Underlying profits for the company rose 11.3 per cent in 2017 to HK$10.5 billion, while revenue jumped 22.7 per cent to HK$55.44 billion on the back of its property portfolio.
Four residential sites at Ho Man Tin, Lohas Park, Wong Chuk Hang and Yau Tong stations will be progressively rolled out for tender this year, providing a total of 4,200 units.
The company’s stellar business performance saw its final dividend rise 6 per cent to HK$0.87 per share, taking the full-year shareholder payout of 4.7 per cent to HK$1.12.
But it was a mixed bag for the corporation’s transport operations last year. While revenue rose 3.1 per cent to HK$18.2 billion, operating profit before tax and interest plunged 35.6 per cent to only HK$1.66 billion.
