Fortune Real Estate Investment Trust (778) Q4 2025 earnings summary

Executive summary

• FY2025 distributable income was HK$722.9M, broadly flat YoY; DPU was 35.22 HK cents, down 1.0%, with a 7.2% distribution yield.

• Revenue declined 3.7% to HK$1,682.4M and NPI fell 5.2% to HK$1,188.1M; lower finance costs partly cushioned the declines.

• Year-end occupancy improved to 95.8%, while portfolio valuation fell 4.0% to HK$36,524M.

Financial highlights

• FY2025 revenue was HK$1,682.4M, down 3.7% YoY; NPI was HK$1,188.1M, down 5.2%.

• Income available for distribution was HK$722.9M versus HK$723.4M; payout ratio was 100% and DPU was 35.22 HK cents versus 35.59 HK cents.

• FY2025 reported loss was HK$1,157.2M, including a HK$1,602.1M investment-property fair-value decrease; basic loss per unit was 56.47 HK cents.

• Finance costs excluding derivative fair-value changes fell 14.4% to HK$339.9M; income-statement finance costs were HK$504.6M.

• 2H revenue was HK$827.9M, down 5.3% YoY; NPI was HK$575.5M, down 7.2%, and distributable income was HK$345.8M, down 2.3%.

Outlook and guidance

• Supportive macro conditions, lower interest rates, tourism growth, and renewed stock and property market activity support a more optimistic 2026 leasing outlook.

• Priorities include sustaining occupancy and tenant retention, asset enhancement, experiential retail, digital engagement, and disciplined cost, debt and balance-sheet management.

• Two supermarket leases are due for renewal in 2026; rent adjustments are expected, with adverse segment impacts anticipated to ease gradually beyond 2026.