Yuexiu Real Estate Investment Trust (405) H1 2026 earnings summary

Executive summary

• Gross income for the six months ended 30 June 2026 was RMB766.5 million, down 20.7% year-over-year, mainly due to the disposal of Yuexiu Financial Tower in October 2025; on a like-for-like basis, revenue declined 4.3%.

• Net property income decreased by 25.2% to RMB507.6 million year-over-year; net loss after tax before transactions with unitholders narrowed by 53.6% to RMB156.6 million, mainly due to lower fair value losses.

• Interim distribution per unit was RMB0.0271 (HK$0.0313), down 18.6% year-over-year, with a payout ratio of 95% and an annualised yield of 9.64%.

• Portfolio comprised ten properties with a total gross floor area of 1,184,156.5 sq.m. and an overall occupancy rate of 79.4%.

Financial highlights

• Gross income: RMB766.5 million (down 20.7% year-over-year); net property income: RMB507.6 million (down 25.2%).

• Net loss after tax before transactions with unitholders: RMB156.6 million (improved from RMB337.4 million loss in 2025; down 53.6% year-over-year).

• Distribution per unit: RMB0.0271 (down 18.6% year-over-year); equivalent to HK$0.0313; annualised yield 9.64%.

• Property portfolio valuation: RMB33.56 billion (down 0.2% from end-2025).

• Net assets attributable to unitholders: RMB14.02 billion (down 0.5% from end-2025); per unit: RMB2.63.

Outlook and guidance

• Manager expects continued macroeconomic stability in China, with GDP growth targets around 5% for key cities and robust growth in high-tech emerging industries.

• Office and retail markets face ongoing supply pressure, but demand from emerging industries and policy support are expected to partially offset downward trends.

• Focus remains on flexible leasing, asset enhancement, proactive tenant acquisition, product innovation, and prudent capital management to deliver stable returns and mitigate risks.