--- title: "FORTUNE REIT's distributable income last year remained flat, with a 3% reduction in the final distribution. This year's rental decline is expected to narrow" type: "News" locale: "en" url: "https://longbridge.com/en/news/278552522.md" description: "Fortune REIT (778) announced that the distributable income for last year was HKD 723 million, a year-on-year decrease of 0.07%; the final distribution per fund unit was 16.81 cents, a decrease of 3.2%. CEO Zhao Yu stated that the macro environment is stabilizing, operating conditions are improving, and it is expected that the decline in rental renewals will narrow this year. The overall occupancy rate has risen to 95.8%. Zhao Yu pointed out that the current property market is warming up, actively negotiating supermarket leases, and considering adjusting areas to enhance returns. Fortune REIT will have HKD 3.8 billion in debt maturing in June this year, with a healthy debt level, and plans to seize market opportunities to enhance shareholder returns" datetime: "2026-03-10T12:08:39.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/278552522.md) - [en](https://longbridge.com/en/news/278552522.md) - [zh-HK](https://longbridge.com/zh-HK/news/278552522.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/278552522.md) | [繁體中文](https://longbridge.com/zh-HK/news/278552522.md) # FORTUNE REIT's distributable income last year remained flat, with a 3% reduction in the final distribution. This year's rental decline is expected to narrow FORTUNE REIT (778) announced that the distributable income for last year was HKD 723 million, a year-on-year decrease of 0.07%; the final distribution per fund unit was 16.81 cents, a decrease of 3.2%. CEO Zhao Yu stated that the macro environment is stabilizing, and operating conditions have become more favorable. By the second half of 2025, the performance of most retail sectors in Hong Kong is expected to improve. It is anticipated that the decline in renewal rental rates this year will narrow, but industries such as real estate agencies and supermarkets still face operational challenges, with rental adjustment rates over the past two years significantly declining compared to other sectors. ## Priority to Maintain High Occupancy Rates During the period, the group recorded revenue of HKD 1.682 billion, a year-on-year decrease of 3.7%, with net property income of HKD 1.188 billion, down 5.2%. Zhao Yu indicated that the group prioritizes maintaining high occupancy rates and retaining quality tenants, with the current tenant renewal rate reaching 83%. As of the end of last year, the overall occupancy rate rose to 95.8%, an increase of 0.8 percentage points year-on-year. ## Obvious "Involution" in Retail Industry Regarding the "involution" issue in the retail market, Zhao Yu stated that the impact of involution on tenants is now more apparent. The response will focus on attracting foot traffic, including launching pop-up stores with tenants from different industries in different seasons, and using social media platforms to offer discounts and promotions to drive traffic for merchants. ## Negotiating Leases with Two Supermarkets or Adjusting Areas Zhao Yu pointed out that the current property market shows signs of warming. With the market recovery, it is hoped that the negative growth in rental rates during renewals can be reversed. She further mentioned that there are still two supermarket leases expiring this year, and active negotiations are underway, with the possibility of adjusting leased areas to further enhance overall revenue. Recently, the Hong Kong retail market has recorded growth, especially in the supermarket sector, which has a positive impact on negotiations. FORTUNE REIT has HKD 3.8 billion in debt maturing in June this year. Zhao Yu stated that the current debt level is relatively healthy, and if market interest rates decline further, opportunities will be seized to consider engaging in acquisition activities to enhance shareholder returns ### Related Stocks - [Yinhua CSI Interior Real Estate Theme ETF (159768.CN)](https://longbridge.com/en/quote/159768.CN.md) - [China Southern CSI All Share Real Estate ETF (512200.CN)](https://longbridge.com/en/quote/512200.CN.md) - [GF CSI All Share Financials ETF (159940.CN)](https://longbridge.com/en/quote/159940.CN.md) - [FORTUNE REIT (00778.HK)](https://longbridge.com/en/quote/00778.HK.md) - [Hwabao WP CSI 800 Real Estate ETF (159707.CN)](https://longbridge.com/en/quote/159707.CN.md) - [ChinaAMC CSI All Share Real Estate ETF (515060.CN)](https://longbridge.com/en/quote/515060.CN.md) ## Related News & Research - [Zhuguang Pledges Silver Grant Stake to Secure US$210 Million Senior Notes](https://longbridge.com/en/news/281300086.md) - [Yuexiu Services Group FY revenue RMB 3,901.9 million](https://longbridge.com/en/news/280613197.md) - [Guangzhou R&F Properties Revamps Board and Committees Ahead of 2026 AGM](https://longbridge.com/en/news/281182304.md) - [Cherish Sunshine to Guarantee RMB42.44 Million Loan for Mainland Subsidiary](https://longbridge.com/en/news/281184873.md) - [Eurocommercial buys Avion Shopping Centre in Sweden for EUR 110 million](https://longbridge.com/en/news/281436805.md)