Tag Archives: Fortune Reit

Fortune REIT’s Q1 DPU up 15.7%

Fortune Real Estate Investment Trust (Fortune REIT) yesterday reported first-quarter distribution per unit (DPU) rose 15.7 per cent from the corresponding period in the previous year, broadly in line with the growth in its turnover, which was boosted by revenue streams from newly acquired properties.

Fortune REIT, which holds a portfolio of 16 retail properties in Hong Kong with a total area of about 2.5 million sq ft and nearly 2,000 car parking spaces, said DPU for the three months ended March 31 was 9 HK cents.

Total revenue for the period grew 16.3 per cent to HK$301.4 million (S$47.7 million), partly due to contributions from Belvedere Square and Provident Square that were acquired in February last year, Fortune REIT said. The increase in rents and the occupancy rate of its entire portfolio also added to revenue.

“Portfolio occupancy rate was 98.6 per cent as at March 31. Passing rent was HK$32.90 per sq ft while a 19.5 per cent rental reversion was achieved from renewed leases,” the trust manager said.

Net property income rose 17.6 per cent to HK$217.9 million and income available for distribution was up 16.3 per cent at HK$153.3 million.

Source : Today – 11 May 2013

Fortune Reit raising funds to buy HK malls

Debt and rights issue to raise HK$5b; unit price dives on fears of yield dilution

Fortune Reit is raising funds totalling close to HK$5 billion (S$930 million) through debt facilities and a rights issue, joining the spate of S-Reits that have rolled out their re-financing plans.

The bulk of the HK$1.9 billion gross proceeds from rights issue and a term loan of HK$480 million will be used to fund Fortune’s latest acquisitions.

Yesterday, the Reit announced that it was acquiring three suburban retail properties from Hong Kong tycoon Li Ka-shing for HK$2.04 billion.

The three properties are Metro Town and Caribbean Bazaar in New Territories and Hampton Loft in Kowloon, with a combined gross rentable area (GRA) of 318,574 sq ft and an average yield of 5.5 per cent, comparable to the average of above 5 per cent yield for Fortune’s existing assets. Continue reading