Distribution slips for Fortune REIT

Fortune Real Estate Investment Trust (0778) said its income distribution to unitholders last year decreased by 4.2 percent to HK$883 million and distribution per unit also dropped 4.9 percent to 44.83 HK cents, representing a yield of 5.6 percent based on the closing unit price of HK$8.01 on December 31, 2021.

The company reported revenue of HK$1.806 billion in 2021, representing a decrease of 2 percent year-on-year.

Total property operating expenses were well contained at HK$424.8 million, excluding the manager's performance fee, which recorded a slight decrease compared to HK$425.1 million last year.

Meanwhile, the net property income decreased by 2.6 percent year-on-year to HK$1.34 billion. As a result, the cost-to-revenue ratio was 23.5 percent for the reporting year.

It announced that the income available for distribution for 2021 increased by 1.1 percent compared with 2020 to HK$981.1 million.

The final distribution per unit of 19.87 HK cents for 2021 will be paid on April 22 to unit-holders of Fortune REIT, the company said in its annual report.

Its total loan facilities drawn down amounted to HK$8.9 billion for the end of 2021. Despite a higher debt level, the gearing ratio remained the same at 22.4 percent as a result of higher property valuations.