Yuexiu Real Estate Investment Trust (405) H2 2025 earnings summary

Executive summary

• Gross income decreased by 8.6% year-over-year to RMB1,855.9 million, and net property income fell by 11.2% to RMB1,283.6 million.

• Loss after tax widened to RMB694.3 million, up 106.3% from the prior year, mainly due to fair value losses on investment properties.

• Distribution per unit declined 14.7% to HK$0.0580, with a payout ratio of approximately 96% for the year.

• Disposed 50% equity interest in Yuexiu Financial Tower, generating RMB5.3 billion in cash and reducing office portfolio exposure.

• Maintained investment-grade ratings with a stable outlook and achieved a three-year low in financing costs.

Financial highlights

• Gross income: RMB1,855.9 million (down 8.6% year-over-year).

• Net property income: RMB1,283.6 million (down 11.2% year-over-year).

• Loss after tax: RMB694.3 million (vs. RMB336.6 million loss prior year).

• Distribution per unit: HK$0.0580 (down 14.7% year-over-year).

• Property portfolio valuation: RMB33.6 billion (down 1.1% year-over-year).

• Net assets per unit: RMB2.68 (down 7.9% year-over-year).

• Total borrowings: RMB20.4 billion, 48.5% of total assets.

Outlook and guidance

• Expects moderate global economic recovery in 2026, with China maintaining supportive policies and low RMB interest rates.

• Plans to continue prudent risk management, flexible leasing, and proactive financing structure adjustments.

• Will implement annual asset appreciation projects and phased renovations to support long-term value.