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Fortune Reit posts 12% rise in Q3 DPU

Fortune Reit reported a 12 per cent rise in distribution per unit (DPU) for the third quarter ended Sept 30 from a year ago to 11.54 Hong Kong cents.

This came on the back of a 12.9 per cent increase in revenue to HK$470.45 million and a 14.7 per cent increase in net property income to HK$328.9 million, thanks to strong rental reversion across its portfolio and additional income contribution from Laguna Plaza that was acquired in January.

Its third-quarter income available for distribution was HK$217.8 million, an increase of 12.8 per cent compared to the corresponding period last year.

Fortune REIT holds a portfolio of 17 private housing estate retail properties in Hong Kong, comprising some 3.18 million sq ft of retail space and 2,713 car parking lots.

The Reit manager said it "remains mindful of the economic uncertainties", associated changing pattern of tourist spending and the gloomy outlook on global economic growth, compounded by the anticipated interest rate hikes.

"Nevertheless, Fortune REIT's portfolio of private housing estate retail properties, which cater mainly to day-to-day shopping needs, tends to maintain a more resilient performance when compared to the overall market and economic conditions," it added.