The real estate investment trusts (REITs) ‘s lead exhibition (0823), its property portfolio in Hong Kong is close to the residents’ life, most of which are connected to public housing estates, and it is not an area with frequent public activities in Hong Kong
It is believed that its tenants are negatively affected by current social events Thinner. In addition, the Group has carried out repurchases repeatedly since the beginning of December, and it is expected that the stock price will support it. As at the end of September this year, on the same basis, net income and property income increased by 7.8% and 8.5% year-on-year to 5.332 billion yuan and 4.071 billion yuan, respectively. During the period, the medium-term distribution per fund unit increased by 8.3% to 141.47 HK cents. The annualized dividend rate is 3.6%, which is defensive.
At the end of September this year, the occupancy rate of the property portfolio in Hong Kong remained at 96.9%, while the renewal rent adjustment rate for the overall property portfolio remained at 18.1%
The average monthly rent increased from 68 yuan per square foot at the end of March 2019 to 69.6 yuan per square foot at the end of September. The Group has been improving the condition of its properties through asset enhancement measures (AEI). Since the initial public offering, the group has completed 80 asset enhancement projects and completed two projects in Nanchang Huihui and Caiming Shopping Center in the first half of the fiscal year, with a total capital expenditure of 278 million yuan. The estimated return on investment for the two is 14% and 18.3%.
With rebound space, waiting for 78.5 yuan lower
As for the mainland market, there are currently five projects. As of the end of September this year, the total income of the Mainland property portfolio was 732 million yuan and the net property income was 578 million yuan, an increase of 49.4% and 48.2% year-on-year, respectively. At the end of September this year, the four retail properties in the Mainland were almost fully leased out, with an average occupancy rate of 99%. During the period, the average rental renewal rate for the retail property portfolio reached 31.5%. In terms of trends, it can be considered to be absorbed in stages below 78.5 yuan, with rebound space, which can be used for medium and long-term deployment.