Fortune Real Estate Investment Trust (778) investor relations material

Executive summary

• 1H2026 revenue fell 3.9% to HK$820.8M and NPI fell 4.6% to HK$584.3M amid negative rental reversions; cost savings and improved occupancy partly cushioned pressure.

• Income available for distribution declined 4.1% to HK$361.8M; 100% payout produced DPU of HK$0.1750, down 4.9% YoY.

• Occupancy reached 96.4%, a six-year high; portfolio valuation rose 0.4% to HK$36,667M and gearing was 26.9%.

Financial highlights

• Revenue was HK$820.8M versus HK$854.5M in 1H2025; NPI was HK$584.3M versus HK$612.6M.

• Property operating expenses excluding the Manager’s performance fee fell 2.0% to HK$218.4M; cost-to-revenue ratio rose to 26.6% from 26.1%.

• Finance costs excluding derivative fair-value changes fell 2.9% to HK$168.3M; effective borrowing cost eased to 3.4% from 3.5%.

• Profit before transactions with unitholders was HK$417.2M, versus a loss of HK$653.4M; investment property fair value recorded a HK$119.1M gain versus an HK$829.7M loss.

• Income available for distribution was HK$361.8M, down 4.1%; DPU was HK$0.1750 versus HK$0.1841, with a 100% payout ratio.

Outlook and guidance

• Hong Kong retail is expected to continue gradual recovery, supported by improving consumer sentiment and tourism spending; e-commerce, outbound spending and changing preferences remain headwinds.

• Priorities include maintaining occupancy and retention, shifting toward service-led and lifestyle trades, and using digital and automated property technologies.

• Cost control, disciplined capital allocation, interest-rate hedging and proactive refinancing are intended to support resilience and financial flexibility.