Fortune Reit's distribution per unit for 1H rises by 14%, annualised yield at 5.1%

Fortune Reit, which holds a portfolio of 16 retail properties in Hong Kong, said its income available for distribution for the second quarter rose by 12.5 per cent to HK$153.7 million (S$25 million).

Net property income for the three months ended June 30 was up 11.6 per cent at HK$219.6 million on the back of a 10.7 per cent increase in revenue to HK$307.9 million.

Manager for Fortune Reit said it achieved record-breaking results during the first half year, driven by the successful execution of three core growth strategies: active leasing management, yield-accretive acquisitions and asset enhancement initiatives.

For the six months to June 30, Fortune Reit's revenue and net property income surged by 13.4 per cent and 14.5 per cent respectively to historical high of HK$609.2 million and HK$437.6 million, maintaining last year's growth momentum.

Income available for distribution over this period rose by 14.4 per cent to HK$307 million.

Distribution per unit for the half year amounted to 18 HK cents, up 13.8 per cent compared to the same period last year.

The payout represents an annualised distribution yield of 5.1 per cent based on the unit price of HK$7.10, the average of the two closing unit prices in Singapore and Hong Kong as at June 28.

The distribution to unitholders will be made on Aug 29.