【778 Performance】Chow Tai Fook's distributable income last year decreased by 0.1% with a final distribution of 16.81 cents per unit

Sun Hung Kai Properties Trust (00778)
Announced full-year results up to the end of December last year, with distributable income of HKD 723 million, a decrease of 0.1% year-on-year; the final distribution per fund unit was 16.81 cents, and the total annual distribution was 35.22 cents, down 1% year-on-year.

During the period, revenue was HKD 1.682 billion, down 3.7% year-on-year, mainly due to negative growth in rent increases for supermarkets and real estate agencies. Net property income was HKD 1.188 billion, a decrease of 5.2% year-on-year.

As of the end of last year, Sun Hung Kai Properties Trust held 17 retail properties, including 16 retail properties in private residential estates in Hong Kong and 1 community retail property in Singapore, totaling over 3 million square feet of retail space and 2,793 parking spaces. The average occupancy rate of these properties reached 95.8%, an improvement from 95% last year.

Recently, the leasing market has shown signs of improvement, with +WOO Jiahu’s occupancy rate rising further to 98.7%, a ten-year high. Both Huadu Avenue and L港城 malls completed asset enhancement measures in the second half of last year, with occupancy rates increasing to 100% and 96%, respectively.

The company stated that last year, Hong Kong’s retail property market faced multiple challenges due to changing consumer patterns and the transformation of the new economy. Looking ahead, as the economic environment stabilizes, Hong Kong’s retail industry is expected to advance steadily amid structural transformation.

Local consumer market is expected to improve

The report adds that recent tensions in US-China trade have eased, and Hong Kong’s economy continues to recover, gradually improving the operating environment. Falling interest rates, population growth driven by talent and students influx, a rebound in tourism, and a more active stock and property market sentiment all inject positive momentum into the market. These factors are not only expected to boost local consumption but also create new opportunities for the retail market, especially as mainland Chinese restaurant brands, health and wellness operators, and experiential service providers accelerate their expansion into the local market.

Sun Hung Kai Properties also indicated that management will continue to respond flexibly, focusing on asset enhancement, prudent cost and balance sheet management to achieve sustainable long-term performance. By leveraging digital technology and continuously optimizing operations, the company aims to maintain the vitality of its asset portfolio and seize development opportunities in a timely manner.

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