Yuexiu Real Estate Investment Trust (405) H1 2025 earnings summary

Executive summary

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

• Net loss after tax before transactions with unitholders was RMB337.4 million, a significant increase from the prior year, mainly due to fair value loss on investment properties.

• Interim distribution per unit was RMB0.0333 (HK$0.0366), down 10.2% year-over-year, with an annualized distribution yield of 8.42%.

• The property portfolio comprises ten high-quality properties across five cities, with an overall occupancy rate of 82.2% and a total rentable area of 803,984.1 sq.m.

• Total distribution for the period was RMB171.1 million.

Financial highlights

• Net assets attributable to unitholders: RMB14.51 billion (down 2.2% from year-end 2024); net assets per unit: RMB2.82 (down 3.1%).

• Property portfolio valuation: RMB41.89 billion (down 1.0% from year-end 2024).

• Loss per unit: RMB0.0630 (vs. RMB0.0062 in prior year), reflecting a 916.1% increase in loss.

• Annualized distribution yield: 8.42% based on closing price as of 30 June 2025.

• Gearing ratio: 48.1%, below the 50% regulatory limit.

Outlook and guidance

• The Manager expects continued moderate global economic recovery in H2 2025, but with persistent challenges from geopolitical tensions and weak domestic consumption.

• Office and retail markets in core cities are expected to face high vacancy rates and rental pressure due to increased supply and subdued demand.

• Manager will focus on proactive, prudent, and flexible leasing strategies, asset enhancement, and optimizing financing structure.

• Asset appreciation projects and renovations are planned, especially for Four Seasons Hotel Guangzhou.

• Manager expects RMB interest rates to remain low and will continue to focus on low-cost RMB financing.