10.4% increase in distribution per unit for the whole year

Lian Zhan (00823) ended its full-year results at the end of March. The total amount for the year was 5.413 billion yuan, an increase of 7% year-on-year. Each fund unit allocated 128.28 cents in the final period, an increase of nearly 10%. Together with the mid-term distribution of 121.5 cents, the fund distributed 249.78 cents per unit per year, an increase of 9.4%. According to the closing price of the exhibition by the end of March of 67, the total annual return is 27.6%, and the dividend yield is 3.7%. The net asset value per unit rose 32.96% to 83.06 yuan. During the period, revenue was RMB10.023 billion, an increase of 8.3%; of which net value of property income was RMB7.663 billion, an increase of 9.6%.

Hong Kong property revenue rose 5% to 9.1 billion

Executive Director and Chief Executive Officer Wang Guolong said that the improvement of the retail market in Hong Kong and the overall retail sales data announced by the government have shown a good growth. The main business combination of merchandise exhibitors is daily necessities, and many merchants are not selling high-end consumer goods. Therefore, the market was not very good in the past. There is also a good increase in retail sales. At present, the increase in retail sales is slightly lower than the overall market. He said that due to the improvement of market sentiment and the overall low unemployment rate, this year it is still possible to allow proper rent growth for shops. The renewal process for negotiations this year has been accelerated and tenants have increased their confidence in the market. I believe the renewal of the rent this year is still ideal.

Hong Kong property portfolio revenue totaled 9.139 billion yuan, an increase of 5.3%, including retail property rental income rose 5.34% to 6.691 billion yuan; parking rental income increased 5.46% to 2.046 billion yuan, and other property-related income increased by 3.34% to 4.02 Billion; property portfolio occupancy rate remained at 97%. The renewal rent rate for Hong Kong properties was adjusted to 29.1%, merchant sales increased by 8% year-on-year, and merchant rent-to-sales ratio was 12.9%.

During the period, Lian Lianfang used the proceeds from partial sales of assets to repurchase 64.50 million fund units at an average price of 67.43 yuan per unit of funds. It is expected that up to 80 million fund units will be repurchased continuously in the coming months, with market conditions and regulations permitted, to offset the effect of property sales on the distribution of fund units.

Not to be sold to invest in shopping malls in the Mainland

Nie Yalun, chairman, said that it will continue to focus on asset management. When considering repurchasing, it will calculate the impact on the allocation of fund units. At present, there are no plans to re-sell assets. Under sound financial conditions, it will further look for property investment, including the acquisition of shopping mall projects in first-tier cities and surrounding areas in the Mainland.

The exhibition “T.O.P”, located at 700 Nathan Road, Mong Kok, has just opened its business. Wang Guolong pointed out that 80% of the podiums have been rented and 70% of the high-rise buildings have been rented out. The rental level is slightly lower than expected and will maintain its current business position. In the past few weeks, shops have been opened one after another. It is believed that they can attract people. Currently, more and more merchants are looking for rented shops.