By ARTHUR SIM
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FORTUNE Reit has reported a net property income of HK$121.34 million (S$23.54 million) for the fourth quarter ended Dec 31, 2008, up 6.8 per cent from HK$113.57 million a year ago. Revenue for the period was HK$166.18 million, 5.1 per cent higher than HK$158.14 million a year ago.
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Income available for distribution for the quarter was HK$80.78 million, up 4.1 per cent year-on-year (yoy). Distribution per unit was HK$0.099, up 3.1 per cent yoy.
Stephen Chu, CEO of ARA Asset Management (Singapore) Ltd, the manager of Fortune Reit, said: 'These results underscore the defensive nature of the Hong Kong suburban retail sector in general and Fortune Reit in particular.'
He added that, under the current volatile market conditions, the management will focus on sustaining organic growth through proactively managing its portfolio of assets, cost management and execution of its ongoing asset enhancement initiatives.
As at end-December 2008, Fortune Reit's aggregate amount of secured borrowings repayable after one year was HK$2.34 billion.
Its cash and cash equivalent position at the end of the same period was HK$243.36 million. It also has a gearing of 26.4 per cent.
Fortune Reit has a portfolio of 11 suburban retail properties.
The performance of the Reit was attributed to organic growth at City Shatin Property and Ma On Shan Plaza as well as results from the completed asset enhancement works at Waldorf Garden Property.
As at end-December 2008, the portfolio occupancy was 96 per cent, up from 92.1 per cent a year earlier. Rental reversion of 18.8 per cent was achieved for renewals in 2008.
Overall tenant retention was 83.6 per cent in 2008.
The portfolio passing rent was HK$27.03 psf as at Dec 31, 2008, an increase of 7.1 per cent yoy.
At the end of trading yesterday, Fortune Reit closed at HK$2.40 per unit, up 7 cents.
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