New shopping rents fell by 2.2%

MTR (00066) increased its property rental business by 3.5% in the first half of the year, but the new rent for the Hong Kong mall was 2.2%. For the first time, the advertising revenue also decreased by 3.8%.

Chief Executive Officer Liang said that the second half of the business growth or by the US interest rate hike and other economic uncertainties.

According to sources, the MTRC generally leases for three years, which means that rents in the first half of the year are compared with the peak of the retail market in 2014. The current retail market is more challenging and there is still pressure on high-end consumption, Of the competition intensified, MTR also covers all the retail sector, resulting in continued rental rents fell.

Retail sale of weak weak rent down

In addition, the EBITDA gross margin of the MTR Hong Kong passenger transport business decreased by 0.8 percentage points to 46.6% year-on-year due to staff costs, train bus encryption and maintenance expenses. In the first half of the year, the total passenger volume of the local railways increased by 3.1% to 798.3 million, and the fare income rose by 4% to RMB8.878 billion.

Medium interest to maintain 0.25 yuan

As a result of the opening of the Kwun Tong Extension and the opening of the South Island Line in the fourth quarter of last year, depreciation and interest expenses and so on, resulting in the first half of the MTRC operating profit fell 8% to 4.788 billion yuan. Taking into account the profitability of the basic business profits rose 15.3% to 5.888 billion yuan; medium-term interest to maintain 0.25 yuan.