Fortune Reit delivers record performance, raises DPU by 16%

SINGAPORE - Fortune Reit has delivered another record performance, with revenue and net property income in the first half year rising by 33.5 per cent and 32.8 per cent to a record HK$813.5 million and HK$581 million, respectively.

Income available for distribution for the six months to June 30 climbed by 27.2 per cent to HK$390.5 million.

This translates to distribution per unit of 20.88 HK cents, up 16 per cent.

Reit manager ARA Asset Management (Fortune) attributed the exceptional performance to the success of Fortune Reit's three core strategies:

* strong rental reversions across its enlarged portfolio;

* satisfactory returns from completed asset enhancement initiatives; and

* additional income contributions from Fortune Kingswood acquired in October 2013.

Fortune Reit's private housing estate retail portfolio underlined its resilience by delivering a solid performance amidst a softening of overall retail sales in Hong Kong.

Portfolio occupancy rose to 99.1 per cent compared to 97.8 per cent in the same period last year.

Furthermore, rental hikes of 21.2 per cent were recorded for renewals in the first half year, driven by the strong rental growth at Fortune Kingswood.

Consequently, portfolio passing rent stood at HK$34.2 per square foot.

Fortune Reit units closed three cents lower at HK$7.20 last Friday. The results were announced after market close.