Champion Real Estate Investment Trust (2778) investor relations material

Executive summary

• Distributable income for the six months ended 30 June 2025 fell 12.6% year-over-year to HK$476 million, with distribution per unit down 13.3% to HK$0.0701.

• Total rental income declined 7.6% to HK$1,029 million, mainly due to negative rental reversion and weaker retail sales.

• Net property income dropped 10.0% to HK$859 million, and net asset value per unit decreased to HK$6.79.

• Langham Place Mall celebrated its 20th anniversary with major events, while the Musical Concert series marked its 10th year, supporting youth artistic talent.

• Market sentiment improved late in the period due to a more active stock market, lower Hibor, and mega events.

Financial highlights

• Distributable income: HK$476 million (down 12.6% year-over-year); distribution per unit: HK$0.0701.

• Total rental income: HK$1,029 million (down 7.6% year-over-year); net property income: HK$859 million (down 10.0%).

• Net asset value per unit: HK$6.79 (down from HK$7.16 at year-end 2024).

• Portfolio value at end of June: HK$58.1 billion, a 3.3% decrease from year-end 2024.

• Gearing ratio: 24.5%; undrawn committed facilities: HK$2.9 billion.

Outlook and guidance

• Macro environment expected to remain uncertain in H2 2025 due to trade tensions and geopolitical conflicts.

• Office leasing market recovery delayed by abundant supply; focus on flexible leasing and tenant retention.

• Retail market remains challenging; emphasis on brand positioning, marketing events, and ecosystem enhancement.

• Lower Hibor since May 2025 expected to reduce interest expenses; over half of debt on floating rate.

• Preliminary discussions underway for refinancing 2026 debt and diversifying funding sources.