, Singapore

Fortune REIT net property income up 8.2% to HK215.6m

Strong recovery in 3Q13 after AEI completions.

FRT reported 3Q13 results that were generally in line with expectations, said OCBC Investment Research, with revenue rising 10.7% YoY to HK$315.7m and net property income climbing 8.2% to HK$215.6m.

Income available for distribution increased 10.6% YoY to HK$153.3m, however, DPU increased by only 1.5% to 8.28 HK cents because of the placement units (representing an increase of 8.4% over the number of prior units) issued on 6 Aug. Income from Fortune Kingswood started contribution from 9 Oct.

Portfolio occupancy stood at 98.3% as at end September due to strong recovery after the completion of AEIs. The average rental reversion for 9M13 was solid, clocking in at 20.0%. Average passing rent was higher by 8.2% to HK$34.2 psf for 9M13. The HK$20m AEI at the wet market of Fortune City One was completed with ROI surpassing 25%.

There are now more trades and the layout has been improved. Occupancy of the FCO market increased to above 90% from 75%
previously.

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