Fortune Reit's Q3 DPU up 24.4%

Singapore

THE recent "occupy activities", a distinct slackening in tourist spending, and the slowdown in domestic demand have emerged as new sources of uncertainty affecting the overall economic outlook and retail scene, Fortune Reit said in its financial statement on Tuesday.

"Nevertheless, Fortune Reit's portfolio of private housing estate retail properties, which cater mainly to day-to-day shopping needs, will continue to benefit from the resilient nature of the non-discretionary retail sector," it assured.

Fortune Reit reported a 25.9 per cent increase in distributable income to HK$193.1 million (S$32.1million) for its third quarter ended Sept 30, 2014.

This translated to a distribution per unit (DPU) of 10.30 Hong Kong cents, 24.4 per cent higher than the 8.28 Hong Kong cents it paid out a year ago.

Its net property income also rose 33 per cent to HK$286.7 million, backed by a 32 per cent increase in total

revenue to HK$416.6 million. This was thanks to additional income contribution from Fortune Kingswood (acquired in Oct 2013) as well as strong rental growth across its entire portfolio, it said.

For the first nine months, net property income rose 32.8 per cent to HK$867.7 million, while revenue rose 33 per cent to HK$1.23 billion. The Reit has renewed most of the leases expiring in 2014 and expects the HK$80 million spruce-up at Belvedere Square, which started in September this year, to contribute to its revenue growth upon its completion in phases throughout 2015.

Fortune Reit is dual listed in Hong Kong. It is managed by ARA Asset Management (Fortune) Limited. Its units ended at HK$7.25 on the stockmarket on Tuesday, up two cents.