Fortune – BT

Fortune Reit Q1 DPU up 5.5%

Income available for distribution was HK$112.8m

SINGAPORE-LISTED Fortune Real Estate Investment Trust (Fortune Reit) yesterday reported distribution per unit (DPU) of 6.73 HK cents for the first quarter ended March 31, up 5.5 per cent from 6.38 HK cents for the corresponding period last year.

The DPU represents an annualised distribution yield of 7 per cent.

Income available for distribution was HK$112.8 million (S$17.8 million), up 6.2 per cent from HK$106.2 million a year earlier.

Total revenue saw a 4.6 per cent increase to HK$218.8 million, attributed mainly to the improved performance of the property portfolio.

Net property income rose 3.3 per cent to HK$161 million.

The occupancy rate across Fortune Reit’s portfolio of 14 retail malls stood at 97.8 per cent as at March 31, 2011.

Passing rent increased by 7.6 per cent year on year to HK$29.40 per square foot, while rental reversions for renewals stood at 17.4 per cent.

Fortune Reit refinanced its entire loan facilities of HK$3.1 billion. The new facilities, at an aggregate principal amount of HK$3.8 billion, comprise a HK$2.83 billion term loan facility and a HK$790 million revolving credit facility.

Planned asset enhancement initiatives at City One Plaza is expected to commence in the third quarter of this year. The project deadline is targeted for end 2012. The cost of the project is estimated to be HK$100 million.

With Hong Kong’s GDP increasing 6.8 per cent in 2010 and forecast to expand by another 4 to 5 per cent in 2011, this augurs well for consumer confidence, said Fortune Reit in a statement yesterday.

Moving forward, ARA Asset Management (Fortune) will focus on retaining quality tenants particularly in Ma On Shan Plaza and The Metropolis Mall, where some 50 per cent of the tenants are up for renewal this year.

Fortune Reit closed down HK$0.01 yesterday at HK$3.86.