MTR looks to key property project after profit dip

MTR Corp saw its net profit drop 2.6 per cent to HK$13 billion last year but says a major property project to be booked this year will boost earnings.

The company's underlying profit, stripping out investment property revaluation, dropped 10.6 per cent year on year to HK$8.6 billion, with the contribution from property development dropping 57 per cent to HK$1.16 billion.

"Property development profits in 2013 were more modest than in 2012," MTR chief executive Jay Walder said yesterday.

However, it had achieved strong pre-sales at Austin Station site C last year, he said, with all 576 units sold and the profit would be recognised when occupation permits were issued, which was expected this year.

Robust growth at retail businesses in its stations and retail rents at its shopping malls partially offset the weaker property results.

Operating profit from stations' commercial business increased 25 per cent to HK$4.1 billion, while retail rents at shopping malls run by MTR - including Elements, above Kowloon Station, and Telford Plaza in Kowloon Bay - increased 11 per cent to HK$3.8 billion.

Income from transport operations in Hong Kong rose 4.4 per cent to HK$15 billion last year on 3 per cent growth in patronage.