The MTR Corporation has reported a 27 percent increase in profit in the first half of the year, thanks to higher patronage as well as its property business.

The rail operator said interim profit reached HK$7.7 billion, up from HK$6.04 billion in the same period last year.

The company said local transport operations saw steady revenue growth, driven by an increase in patronage from cross-boundary and high-speed rail services.

Property development, including projects at Ho Man Tin and Wong Chuk Hang stations, contributed to the bigger bulk of the first-half profit at HK$5.5 billion.

That more than tripled property earnings of HK$1.7 billion a year ago.

Total revenue declined 6.5 percent year on year to HK$27.3 billion, partially dragged down by a drop of HK$1.2 billion in investment property valuation.

Speaking at a press conference, Jacob Kam, the MTR's chief executive, said the group's business remained overall stable, but noted challenges lie ahead.

"We're now in a major phase of railway investment and construction while also upgrading our railway assets. In the future, we will maintain prudent financial management shaping forward-looking strategies to guide the corporation's growth," he said.

"We will continue to adhere to the 'Think Ahead, Stay Ahead' principle to expand our businesses and strengthen Hong Kong's future through building new railways and growing communities.

The MTR declared an interim dividend of HK$0.42 per share, same as a year ago.