Press Releases
Prosperity REIT 2023 Annual Results
Prosperity REIT 2023 Annual Results
- Full year distribution per unit (“DPU”) decreased by 13.3% Y-o-Y to HK$0.1409, representing a distribution yield of 10.1%1.
- 100% payout ratio maintained since listing. Unit buyback returns capital to unitholders and enhances DPU and net asset value (“NAV”) per unit.
- No refinancing needs till 2025. Prudent interest rate hedging arrangement as risk management.
- Revenue increased by 0.8% Y-o-Y with cost-to-revenue ratio at 23.1%.
- Occupancy rate remained solid at 95.9%. Negative portfolio rental reversion narrowed in the second half compared to first half of the year.
- Renowned green building achievements as a testament to our relentless sustainability efforts.
During the Reporting Year, business environment remained challenging given the backdrop of heightened interest rates, energy prices and trade tensions. Full year DPU recorded a drop of 13.3% Y-o-Y to HK$0.1409. This represented a distribution yield of 10.1%1.
100% payout ratio maintained since listing. Unit buyback returns capital to unitholders and enhances DPU and NAV per unit.Prosperity REIT has maintained 100% payout ratio since listing. Benefitting both Prosperity REIT and unitholders, unit buyback was carried out in 2023 which returned capital to unitholders and enhanced DPU and NAV per unit.
Prosperity REIT has no refinancing needs till 2025. Gearing ratio was maintained at a healthy level of 24.2%, providing us with a strong balance sheet to withstand market volatility and to take advantage of future growth opportunities. As at 31 December 2023, 55% of our term loans have been hedged through interest rate swaps, as prudent financial management.
Revenue increased by 0.8% Y-o-Y with cost-to-revenue ratio at 23.1%. Prosperity REIT has a well-balanced and decentralized portfolio with Grade A office, commercial, industrial/office and industrial buildings.
Given the lingering effects of high interest rates and geopolitical tensions, the World Bank has projected global economic growth to soften to 2.4% in 2024. Meanwhile, Hong Kong’s GDP is forecasted to grow in a range of 2.5% to 3.5% in 2024. The pace of recovery in Hong Kong is contingent on the progress of Mainland China’s economy and the movement of US Fed interest rate. The upcoming US presidential election also injects more uncertainty into the global economic outlook.
Although 2024 may be another challenging year, Prosperity REIT is well-poised to benefit from its unique portfolio close to major transportation link and equipped with green and smart building facilities. We will continue deploying prudent and nimble leasing strategies to navigate through different market conditions.
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About Prosperity REIT
Prosperity REIT [SEHK: 808] is a Hong Kong collective investment scheme authorized under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). Prosperity REIT owns a diverse portfolio of seven high-quality properties in the decentralized business districts of Hong Kong, comprising all, or a portion of, three Grade A office buildings, one commercial building, two industrial/office buildings and one industrial building, with a total gross rentable area of about 1.28 million sq. ft..
About the REIT Manager
ARA Asset Management (Prosperity) Limited (the "REIT Manager") is the manager of Prosperity REIT. The REIT Manager is a wholly-owned subsidiary of ARA Asset Management Limited which is part of the ESR Group, APAC’s largest real asset manager powered by the New Economy and the third largest listed real estate investment manager globally.
Disclaimer
The information contained in this press release does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for units in Prosperity REIT in Hong Kong or any other jurisdiction.
Media and Investor Contacts
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Vicho Chung Manager, Investments and Investor Relations (852) 2169 0928 |
Kenny Kwong Assistant Manager, Investor Relations & Research (852) 2169 0928 |