TOP PAGE
ENGLISH
JAPANESE
|
CONNECT WITH US:
Home
About
Services
Contact
Log in
*
Home
Press release
Feb 18, 2020 15:00 JST
Source:
Champion REIT
Champion REIT Announces 2019 Annual Results
Distributable income reached HK$1,648 million, up 2.3%;
The portfolio continued to see positive rental reversion
HONG KONG, Feb 18, 2020 - (ACN Newswire) - Champion Real Estate Investment Trust (stock code: 2778), the owner of Three Garden Road and Langham Place, announces its financial results for year ended 31 December 2019.
Summary of financial results
FY 2019 FY 2018 Change
Total Rental Income (HK$ mil) 2,778 2,677 + 3.8%
Net Property Income (HK$ mil) 2,481 2,405 + 3.1%
Distributable Income (HK$ mil) 1,648 1,611 + 2.3%
Distribution per unit (HK$) 0.2666 0.2614 + 2.0%
Value as at 31 Dec 2019 31 Dec 2018 Change
Gross Value of Portfolio (HK$ mil) 81,178 83,135 - 2.4%
Net Asset Value per Unit (HK$) 11.04 11.42 - 3.3%
Gearing Ratio 18.0% 17.6% + 0.4pp
Overview
Champion REIT delivered a growth in distributable income by 2.3% to HK$1,648 million and distribution per unit ("DPU") by 2.0% to HK$0.2666. The results once again demonstrated the complementary nature of the Trust's property portfolio.
Three Garden Road
Three Garden Road achieved positive rental reversion, boosting the total rental income of the property to HK$1,512 million, up 8.7%. Occupancy of the property was 93.0% as at 31 December 2019. Given the gap between the market rents and expiring rents in 2019, passing rents of the property increased to HK$107.76 per sq. ft. (based on lettable area) as at 31 December 2019.
Langham Place Office Tower
Business performance of Langham Place Office was stable. Occupancy of the property stood high at 97.7% as at 31 December 2019 and market rents stayed put throughout 2019. Positive rental reversion was achieved, driving up total rental income by 7.2% to HK$375 million. Passing rents increased to HK$46.48 per sq. ft. (based on gross floor area) as at 31 December 2019.
Langham Place Mall
The slowdown in retail sales which started at the beginning of 2019 deepened in the second half of the year on flagging local economic conditions as well as drawn-out social unrest subsequently. Although passing base rents increased to HK$190.49 per sq. ft. (based on lettable area) as most leases were confirmed in advance, total rental income of the mall decreased 4.9% to HK$891 million due to marked decrease in tenant sales hence turnover rent in the second half of 2019. Rent concessions were considered on case by case basis. Despite the sluggish market conditions, the mall remained fully occupied as at 31 December 2019.
Financing
The Trust continued to take a proactive approach in liability management and further enhanced the credit profile. The Trust entered into interest rate swaps in favourable market windows to increase the fixed rate debt portion to 64.2% as at 31 December 2019 to mitigate interest rate risks.
Distribution
Amid the precarious business environment, the Trust nonetheless delivered a mild growth in distributable income by 2.3% to HK$1,648 million and DPU by 2.0% to HK$0.2666 (2018: HK$0.2614). Based on the closing unit price of HK$5.15 recorded on 31 December 2019, the total DPU represents a distribution yield of 5.2%.
Asset Value
The Trust's investment properties as at 31 December 2019 were appraised at a total value of HK$81.2 billion, representing a 2.4% decrease from HK$83.1 billion as at 31 December 2018.
Outlook
The global economic uncertainties, exacerbated by the outbreak of the novel coronavirus (COVID-19), will adversely affect both the office demand and retail sentiments in 2020. As an externally oriented economy, Hong Kong will especially be affected by the pessimistic economic outlook and potentially deepening recession. With the ongoing political tensions in Hong Kong remain unsettled, the already weakening business environment is expected to weigh on both the office demand and retail sales performance.
Office demand, market rent and retail sales will retrench as businesses over all walks of life are severely impacted by the viral outbreak. While we are watchful of the challenges in the short term, our financial strength and discipline should allow us to weather the difficult period. Furthermore, we will continue to take a prudent approach in identifying diversification opportunities for external growth for the Trust globally in the coming year.
About Champion REIT (stock code: 2778)
Champion Real Estate Investment Trust is a trust formed to own and invest in income- producing office and retail properties. The Trust focuses on Grade-A commercial properties in prime locations. It currently offers investors direct exposure to 2.93 million sq. ft. of prime office and retail properties by way of two landmark properties, Three Garden Road and Langham Place, one on each side of the Victoria Harbour.
Website : www.championreit.com
Source: Champion REIT
Sectors: Daily Finance, Daily News
Copyright ©2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
Related Press Release
Three Garden Road Achieves LEED v4.1 Platinum Certification, Scoring Highest in Hong Kong
March 07 2024 18:30 JST
Champion REIT Announces 2023 Annual Results
February 21 2024 19:00 JST
Champion REIT Illuminated Hong Kong CBD by "Sharelebrating" Joy with Community at its Premium Property Three Garden Road
December 05 2023 14:29 JST
Champion REIT Announces 2023 Interim Results
August 18 2023 19:32 JST
Champion REIT Hosts Inaugural ESG Forum
July 19 2023 18:56 JST
Champion REIT and Langham Place Mall organise "1+1 LP CLUB Bonus Points Donation" campaign
April 03 2023 17:55 JST
Champion REIT Announces 2022 Annual Results
February 24 2023 20:36 JST
Champion REIT organises "Love . Play . Farm" Harvest Day
January 16 2023 17:48 JST
Langham Place Mall of Champion REIT Holds Disney and Pixar - Fluffy Festival
December 20 2022 20:55 JST
Three Garden Road Attains BEAM Plus Platinum with Hong Kong's Highest Score
October 17 2022 17:27 JST
More Press release >>
Latest Press Release
Supercomputer Fugaku retains first place worldwide in HPCG and Graph500 rankings
May 13, 2024 18:32 JST
Eisai's Antiepileptic Drug Fycompa Approved in China for Adjunctive Treatment of Primary Generalized Tonic-Clonic Seizures
May 13, 2024 17:06 JST
Ogier and TOYOTA GAZOO Racing triumph again
May 13, 2024 14:36 JST
Spa points haul for TOYOTA GAZOO Racing
May 13, 2024 13:56 JST
DOCOMO to Launch NTT DOCOMO GLOBAL for Global Expansion
May 10, 2024 18:13 JST
Release of "Fugaku-LLM" - a large language model trained on the supercomputer "Fugaku"
May 10, 2024 12:20 JST
Paltalk, Inc. Reports Slight Increase in Revenue and 33% Reduction in Net Loss for First Quarter 2024
May 09, 2024 20:39 JST
Cordlife Accelerates Lab and Technical Staff Recruitment to Rebuild Foundation and Strengthen Core Processes in Singapore
May 09, 2024 19:00 JST
Honda Opens New R&D Facility in Bengaluru to Accelerate Electrification in India
May 09, 2024 14:13 JST
Fujitsu introduces "explainable AI" for use in genomic medicine and cancer treatment planning
May 09, 2024 10:41 JST
Mitsubishi Heavy Industries Increases Dividends on Back of Historically High FY2023 Results, Releases FY2024 Guidance
May 08, 2024 14:27 JST
Rome becomes the first European city to offer open loop transit payments to JCB Cardmembers
May 08, 2024 12:00 JST
NEC X Invests in Public Safety Startup Multitude Insights, Scaling AI-Powered Collaboration and Information Sharing for Law Enforcement
May 08, 2024 10:24 JST
ServiceNow and Fujitsu announce strategic commitment to launch innovative cross-industry solutions
May 08, 2024 08:52 JST
Fujitsu launches mainframe modernization automation service for the Japanese market
May 07, 2024 17:53 JST
MHI Agrees to Collaborate with Chiyoda Corporation for Licensing of CO2 Capture Technologies
May 07, 2024 13:49 JST
Four-strong TOYOTA GAZOO Racing squad to push for more Portugal success
May 02, 2024 18:05 JST
Spectacular Spa awaits TOYOTA GAZOO Racing
May 02, 2024 17:46 JST
Q&M Dental Enhances Digital Capabilities by Integrating Align Technology's Newest iTero Lumina(TM) Intraoral Scanner Across Dental Clinics in Singapore
May 02, 2024 11:00 JST
Sumitomo Metal Mining and Mitsubishi Corporation to Participate in Kalgoorlie Nickel Project - Goongarrie Hub
Apr 30, 2024 19:08 JST
More Latest Release >>