FORTUNE REAL ESTATE INVESTMENT TRUST 
By Hong Kong: Units 5508-5510, 55/F The Center, 99 Queen's Road Central
Tel +852 2169 0928 Fax +852 2169 0968
Singapore: 6 Temasek Boulevard, #16-02 Suntec Tower Four, Singapore 038986
Tel +65 6835 9232 Fax +65 6835 9672
Press ReleaseFortune REIT Achieves a Decade of Continuous Growth
Revenue up 18.3% year-on-year
20.4% portfolio rental reversion
5.8% dividend yield
Financial Results Overview
For the Year Ended 31 December | For the 3 Months Ended 31 December | |||
FY2013 | FY2012 % Change | 4Q2013 | 4Q2012 % Change | |
Revenue (HK$ million) | 1,317.5 | 1,113.7 18.3% | 392.6 | 291.6 34.6% |
Net property income (HK$ million) | 928.3 | 788.3 17.8% | 275.2 | 206.9 33.0% |
Income available for distribution (HK$ million) | 642.4 | 549.5 16.9% | 182.1 | 142.5 27.8% |
Distribution per unit (HK cents) | 36.00 | 32.35 11.3% | 9.72 | 8.37 16.1% |
Ten consecutive years of continuous growth. Fortune REIT achieved another set of record-breaking results for FY2013, with total revenue and net property income increasing by 18.3% and 17.8% year-on- year to HK$1,317.5 million and HK$928.3 million respectively. This sustained performance was underpinned by its commitment to excellence in the three core competencies of investment, asset management and asset enhancement. During the Reporting Year, Fortune REIT has continued to achieve strong operational performance: portfolio occupancy further rose to 98.7% as at 31 December 2013 while a solid 20.4% rental reversion was recorded for renewals, reflecting strong demand. The remarkable returns from completed asset enhancement initiatives ("AEIs"), additional income contributed by Fortune Kingswood acquired in October 2013, as well as the full-year income from Belvedere Square and Provident Square have all led to Fortune REIT's exceptional results.
Income available for distribution increased by 16.9% year-on-year to HK$642.4 million for FY2013. The
DPU for FY2013 was 36.00 HK cents (FY2012: 32.35 HK cents), representing a distribution yield of 5.8%1.
capitalize on robust demand for retail space in northwest New Territories, helping spur further growth.
1 Based on HK$6.215, the average closing unit price in Singapore and Hong Kong as at 31 December 2013.
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Hong Kong: Units 5508-5510, 55/F The Center, 99 Queen's Road Central
Tel +852 2169 0928 Fax +852 2169 0968
Singapore: 6 Temasek Boulevard, #16-02 Suntec Tower Four, Singapore 038986
Tel +65 6835 9232 Fax +65 6835 9672
Press Release
Thanks to proactive leasing strategies and seamless integration into Fortune REIT's portfolio, Fortune Kingswood has already seen some operational improvements within three months after its acquisition. Its occupancy rate as at 31 December 2013 has notably improved to 99.0% when compared with its occupancy rate of 95.5% as at 30 June 2013. Fortune Kingswood is expected to further benefited from the enhanced infrastructure linkage with Mainland China's border as well as other parts of Hong Kong.
The last phase of FCO's AEIs, which involved the FCO Market, was completed in October 2013. Occupancy at FCO Market improved significantly to almost 100% from 75% previously. The HK$20 million AEIs have achieved a ROI of more than 25% and marked the successful debut of the first-ever wet market AEIs. Renovation of the three floors at Jubilee Square was completed in June 2013. The HK$15 million AEIs have yielded a ROI of more than 25%. The net property income of Jubilee Square for the Reporting Year was boosted significantly by 57.4% year-on-year as a result. In December 2013, the HK$15 million AEIs at Ma On Shan Plaza was also completed. Total monthly rental income from the
59,000 sq.ft. renovated zone has improved by more than 70% and thus provided a spectacular ROI of
60%.
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Hong Kong: Units 5508-5510, 55/F The Center, 99 Queen's Road Central
Tel +852 2169 0928 Fax +852 2169 0968
Singapore: 6 Temasek Boulevard, #16-02 Suntec Tower Four, Singapore 038986
Tel +65 6835 9232 Fax +65 6835 9672
Press Release About Fortune REIT. Fortune Real Estate Investment Trust ("Fortune REIT") is a real estate investment trust consituted by a Trust Deed entered into on 4 July 2003 (as amended) made between ARA Asset Management (Fortune) Limited, as the Manager of Fortune REIT, and HSBC Institutional Trust Services (Singapore) Limited, as the Trustee of Fortune REIT. Fortune REIT was listed on the Singapore Exchange Securities Trading Limited and The Stock Exchange of Hong Kong Limited on 12 August 2003 and 20 April 2010 respectively.
Fortune REIT holds a portfolio of seventeen retail properties in Hong Kong, comprising approximately 3.11 million sq ft of retail space and 2,606 car parking lots. The retail properties are Fortune City One, Fortune Kingswood, Ma On Shan Plaza, Metro Town, Fortune Metropolis, Belvedere Square, Waldorf Avenue, Caribbean Square, Provident Square, Jubilee Square, Smartland, Tsing Yi Square, Nob Hill Square, Hampton Loft, Centre de Laguna, Lido Avenue and Rhine Avenue. They house tenants from diverse trade sectors such as supermarkets, food and beverage outlets, banks, real estate agencies, and
education providers. More information can be found at www.fortunereit.com.
information can be found at www.ara-asia.com.
Disclaimer. The information contained in this press release does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for Units in Fortune REIT in Hong Kong, Singapore or any other jurisdiction. Media and investor contacts ARA Asset Management (Fortune) Limited
Justina Chiu
Deputy Chief Executive Officer justinachiu@ara.com.hk
Jenny Hung
Director, Investment and Investor Relations jennyhung@ara.com.hk
+852 2169 0928 +852 2169 0928
Mandy Go mandy.go@sprg.com.hk
+852 2864 4812
Maggie Au maggie.au@sprg.com.hk
+852 2864 4815
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