Fortune Real Estate Investment Trust (0778) said its income available for distribution dropped by 10.8 percent to HK$723.4 million last year and that it trimmed the full-year distribution per unit by 11.9 percent to 35.59 HK cents.
The distribution payout ratio remained unchanged at 100 percent, with a yield of 8.37 percent based on its closing price of HK$4.25 on Tuesday.
Fortune REIT’s gross revenue declined by 2.2 percent to HK$1.75 billion for 2024 due to sales leakage to competitive markets and the changing consumption preferences of both local customers and tourists, according to a filing on Tuesday.
Negative rental reversions from certain sectors also contributed to the decrease, albeit partially offset by an overall improvement in average occupancy, the filing said.
In the second half of 2024, revenue inched down by 0.3 percent from a year earlier, while it endured a 4.1 percent drop in the first half.
Net property income for the year decreased by 3.5 percent to HK$1.25 billion.
The REIT’s tenant retention remained high at 79 percent, while the occupancy rate of its properties went up by 0.6 percentage points to 95 percent as of the end of last year.
Fortune REIT holds a portfolio of 17 retail properties, comprising approximately 3 million square feet of retail space and 2,793 car parking spaces.
STAFF REPORTER
Justina Chiu, left, chief executive and Jenny Hung, deputy chief executive of ESR Asset Management, which manages Fortune REIT. SING TAO
