Singapore-listed Fortune Real estate investment trust (Reit) has posted a 24.5 percent increase in net property income to HK$444.5 million in the first nine months of the year, as improved economic condition revives interest in purchasing properties.
The trust’s distributable income rose 23.8 percent to HK$300.8 million while revenue income reached HK$619.5 million.
“Our portfolio continued to deliver strong and sustainable growth following the first half results… Fortune REIT’s proactive leasing efforts resulted in occupancy rate reaching 98.0 percent, surpassing the previous high set in the first quarter. Rental reversion remained strong at 10.5 percent,” said Mr. Anthony Ang, CEO of ARA Asset Management Ltd, the manager of Fortune REIT.
He added that with local consumption continuing to strengthen, “Hong Kong retail sales registered 13 consecutive months of year-on-year increases from September 2009 to September 2010. The latest figures for the first 9 months of 2010 saw the value of Hong Kong retail sales increased by 17.9 percent over the same period a year ago. As local consumer sentiment remained firm on the back of rising income, better job prospects and recovery in the stock market, this will give fresh impetus to the performance of Fortune REIT’s portfolio.”
Since the Fortune Reit was founded in 2003, the portfolio occupancy rate has jumped to a new high of 98 percent, with 8 of 14 properties being fully occupied and five other properties achieving higher quarter-on-quarter occupancies.
As majority of the properties are near or at full occupancy, the manager will be focusing on the leasing and tenant repositioning strategy toward next year, especially at Ma On Shan Plaza and The Metropolis Mall, where 50 percent of the tenants will be up for renewal.