Fortune Reit registers 12% growth in Q1 distribution per unit

SINGAPORE - Fortune Reit delivered a solid performance growth in the first quarter, registering higher revenue, net property income and distribution per unit.

Income available for distribution climbed 12.8 per cent to HK$218.7 million (S$37.5 million), compared to the same quarter last year.

Net property income rose 12.4 per cent tp HK$325 million compared to the same period last year, which registered HK$289.2 million.

Its distribution per unit was 11.63 HK cents, a 12 per cent increase from a year ago.

The Reit said in a statement that the exceptional financial performance was mainly due to strong rental reversions across the portfolio and additional income contributions from Laguna Plaza, which was acquired in January.

It added that portfolio occupancy stood at 98.1 per cent as of March 31.

On Feb 11, the Reit also entered into a sale and purchase agreement to dispose Nob Hill Square for HK$648 million, equivalent to a 2.9 per cent net property yield. This is Fortune Reit's first asset divestment in its 11-year operating history.

The sale price represents a 48 per cent premium over valuation and has resulted in a disposal gain of approximately HK$215 million.

The disposal was completed on April 2, and net proceeds were used for loan repayment. The divestment places the Reit in a better position to pursue growth opportunities.

Fortune Reit units closed down six HK cents at HK$7.94 on Friday.