"Performance" REGAL REIT recorded distributable income of 15.6 million yuan in the first half of the year, hoping for improvement in core operating profit in the second half

REGAL REIT (01881.HK) announced its interim results for the period ending June this year, with distributable income available for unit holders recorded at HKD 15.6 million, compared to an adjusted loss of HKD 43.8 million in the same period last year. The loss for the period before distributions to unit holders was HKD 508 million, widening from a loss of HKD 19.804 million in the same period last year; the loss attributable to each unit holder was HKD 0.156.

Considering the relatively limited amount of distributable income, REGAL REIT will not declare an interim distribution for unit holders. The manager, REGAL Asset Management, stated that unless any unforeseen circumstances arise, it expects that the financial expenses will further decrease, and anticipates that the core operating profit of REGAL REIT will continue to improve in the second half of this year, potentially allowing for a resumption of distributions to unit holders.

As of the end of June, REGAL REIT recorded revenue of HKD 354 million, a year-on-year increase of 1.1%. Total rental income for the period was HKD 339 million, up 1% year-on-year, while hotel revenue increased by 4.8% to HKD 15.2 million. The five Regal Hotels owned by REGAL REIT performed steadily during the period, with consolidated average room rates and consolidated average revenue per available room both increasing year-on-year