• Distribution per unit (“DPU”) decreased by 8.3% Y-o-Y to HK$0585, representing an annualized distribution yield of 8.5%¹. 100% payout ratio maintained since listing.
• Revenue decreased by 4.3% Y-o-Y with cost-to-revenue ratio at 25.6%.
• Occupancy rate remained solid at 94.7% amid challenging market conditions.
• Prudent capital management with gearing ratio at 25.7% and interest rate hedging ratio at 60%. The refinancing of HK$1.2B debt facilities expiring in Nov 2025 is finalized.
• Near-term and net-zero greenhouse gas (“GHG”) reduction targets were approved by SBTi².

Hong Kong, 15 August 2025 – ESR Asset Management (Prosperity) Limited (the "REIT Manager"), as manager of Prosperity Real Estate Investment Trust ("Prosperity REIT") [SEHK: 808], announces the interim results of Prosperity REIT for the six months ended 30 June 2025 (the “Reporting Period”).

DPU decreased by 8.3% Y-o-Y to HK$0.0585, representing an annualized distribution yield of 8.5%¹. 100% payout ratio maintained since listing.

During the Reporting Period, business environment remained challenging under US trade tariffs and geopolitical tensions. DPU dropped 8.3% Y-o-Y to HK$0.0585. This represented an annualized distribution yield of 8.5%¹. Payout ratio is maintained at 100% since listing.

Revenue decreased by 4.3% Y-o-Y with cost-to-revenue ratio at 25.6%.

Revenue decreased by 4.3% Y-o-Y, mainly due to the pressure from the vacancy and rental levels at Prosperity Millennia Plaza in Island East. Our diversified portfolio with different property types and low single tenant concentration allows risk mitigation. Enhanced landlord’s provisions are offered to expedite prospective tenants’ decision making and facilitate marketing work. Cost-to-revenue ratio was at 25.6%.

Occupancy rate remained solid at 94.7% amid challenging market conditions.

Hong Kong office leasing market stayed competitive as substantial vacant office space exerted downward pressure on rents. Landlords are offering more incentives to retain tenants. Despite the challenging market conditions, our proactive leasing efforts to retain and attract tenants helped to maintain a solid portfolio occupancy rate of 94.7%³, outperforming the broader market.

Prudent capital management with gearing ratio at 25.7% and interest rate hedging ratio at 60%. The refinancing of HK$1.2B debt facilities expiring in Nov 2025 is finalized.

As at 30 June 2025, gearing ratio was stable at 25.7%, equipping us with a strong balance sheet to weather volatilities and capture future growth opportunities. 60% of our term loans have been hedged through interest rate swaps, as prudent financial management. The refinancing of HK$1.2B debt facilities expiring in Nov 2025 is finalized. Interest margin for the refinanced facilities stay stable. Our debt maturity profile is evenly spread and all loan facilities continue to be sustainability-linked.

Near-term and net-zeron GHG reduction targets were approved by SBTi.

Prosperity REIT’s GHG emissions reduction targets were approved by SBTi via the corporate route. We have committed to reducing Scope 2 emissions by 42% and Scope 3 emissions by 25% by 2030, using 2021 as the base year. We also set long-term emissions reduction targets in line with reaching net-zero by 2050.

Prospects

The International Monetary Fund (“IMF”) forecasted 2025 global economic growth at 3.0% amid elevated geopolitical tensions and US trade tariffs. In Hong Kong, the recent improvement in leasing and sales transactions in Central are positive signs for the local office market. Leveraging on this positive signal, though US trade tariffs and interest rate movement will continue to cast shadow on the economy, Hong Kong strives to attain its GDP growth target in 2025.

Prosperity REIT is well-positioned to unlock value from its unique portfolio, which is located near to strategic transportation links and enhanced with green and smart building facilities. Our portfolio’s strong presence in the mature Kowloon East CBD2 enables us to benefit from synergies with new developments in the area. We will adopt flexible leasing strategies to overcome 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..

www.prosperityreit.com

About the REIT Manager

ESR Asset Management (Prosperity) Limited (the "REIT Manager") is the manager of Prosperity REIT. The REIT Manager is a wholly-owned subsidiary of ESR Group Limited. ESR is a leading Asia-Pacific real asset owner and manager focused on logistics real estate, data centres, and energy infrastructure that power the digital economy and supply chain for investors, customers, and communities.

www.esr.com

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.

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