Yuexiu Real Estate Investment Trust (405) investor relations material

Executive summary

• Gross income for the six months ended 30 June 2025 was RMB966.1 million, down 6.6% year-over-year, with net property income at RMB679.0 million, down 8.6% year-over-year.

• Net loss after tax before transactions with unitholders surged to RMB337.4 million, mainly due to a significant fair value loss on investment properties.

• Interim distribution per unit was RMB0.0333 (HK$0.0366), down 10.2% year-over-year, with a total payout of RMB171.1 million and an annualized distribution yield of 8.42%.

• Property portfolio consists of ten high-quality properties across five cities, with an overall occupancy rate of 82.2%.

• Property portfolio valuation declined 1.0% to RMB41.89 billion; net assets per unit dropped to RMB2.82.

Financial highlights

• Revenue decreased to RMB966.1 million from RMB1,034.1 million year-over-year, with all major segments except serviced apartments showing declines.

• Net property income margin was 70.3%, down from 71.8% in the prior year.

• Loss per unit widened to RMB0.0630 from RMB0.0062 year-over-year.

• Fair value loss on investment properties was RMB425.5 million, up sharply from RMB69.5 million a year ago.

• Cash and cash equivalents stood at RMB1.55 billion as of 30 June 2025.

Outlook and guidance

• The Manager expects continued moderate global economic recovery in the second half of 2025, but with persistent geopolitical and structural challenges.

• Domestic consumption in China remains sluggish, with policy support expected to drive technological and industrial upgrades.

• Office and retail markets in core cities face high vacancy and rental pressure due to new supply and weak demand.

• Management expects RMB interest rates to remain low and plans to continue refinancing with low-cost RMB debt.

• Proactive, flexible leasing strategies and asset enhancement projects are planned to support competitiveness and value preservation.