Fortune – SGX

Distribution Per Unit Improved To 17.70 HK cents

Attractive Tax Exempt Yield Of 5.4%

31 July 2007. ARA Asset Management (Singapore) Limited (“ARASL”), as manager of Fortune Real Estate Investment Trust (“Fortune REIT”), is pleased to announce the results for Fortune REIT for the half year ended 30 June 2007 (“1H07”).

“We are pleased to continue to deliver stable returns and growth to our Unitholders. The net property income (“NPI”) for the quarter ended 30 June 2007 and 1H07 grew by 3.0% and 2.6% year on year (“Y-o-Y”). Correspondingly, the income available for distribution for 1H07 improved to HK$143 mil with a distribution per Unit (“DPU”) of 17.70 HK cents, reflecting an attractive tax exempt yield of 5.4%1 to Unitholders. In the reporting period, the portfolio of assets has also performed admirably with healthy rental reversion of 11% for 1H07. We are glad that ongoing asset enhancement initiatives in Waldorf Garden Property is on target as more than 80% of the enhanced space has been pre-committed at rents which are about 3 times over preceding rents. We believe Fortune REIT’s strong asset and financial performance has been driven by buoyant economic conditions, real wage growth, record low levels of unemployment and positive local consumption demand. We are optimistic that Hong Kong’s retail sector will continue to benefit from sustainable economic growth and positive social sentiments for the remainder of 2007.” Sam Wu, Chief Executive Officer of ARASL commented.


Source : SGX