Yuexiu Property Fund maintains stable overall performance with revenue exceeding RMB 966 million

Yuexiu Property Fund maintains stable operations with revenue exceeding RMB 966 million

- Financing costs decreased by 13.5% YoY in the first half, with an annualized distribution yield of 8.42%

Yuexiu Real Estate Investment Trust ("Yuexiu Property Fund", together with Yuexiu REIT Asset Management Limited, collectively referred to as the "Fund"; stock code: 405) announced its interim results for the six months ended June 30, 2025.

Yuexiu Property Fund management team: Chairman and Non-Executive Director Mr. Jiang Guoxiong (center), Executive Director and CEO Ms. Ou Haijing (left), CFO Mr. Guan Zhihui (right)

2025 Interim Results Highlights:
- Stable overall operations with total revenue of RMB 966 million (same period in 2024: RMB 1.034 billion).
- As of June 30, 2025, the overall occupancy rate of properties was 82.2% (same period in 2024: 84.0%).
- Average financing cost was 3.33%, down 83 basis points from the beginning of the year, and financing costs excluding exchange losses decreased by 13.5% YoY.
- Interim distribution per fund unit was approximately RMB 0.0333, equivalent to HKD 0.0366. The annualized distribution yield was 8.42%.

Guangzhou International Finance Center (GZIFC):
- GZIFC complex recorded operating income of RMB 486 million, accounting for 50.3% of the Fund's total revenue.
- GZIFC office tower attracted a Fortune Global 500 company; occupancy rate was 82.6%; renewal rate was 70%.
- GZIFC Mall achieved an occupancy rate of 96.4% during the period.
- Four Seasons Hotel Guangzhou saw average occupancy rise by 1.1 percentage points YoY, with room revenue hitting a record high for the same period; Ascott GZIFC serviced apartments recorded a 1.8 percentage point increase in average occupancy YoY, with operating revenue also reaching a historical high.

Yuexiu Financial Tower:
- Yuexiu Financial Tower generated operating income of approximately RMB 165 million, accounting for 17.1% of the Fund's revenue, with an occupancy rate of 82.1%.
- Tenant mix continued to improve, with new high-quality tenants including a Fortune Global 500 company and a futures company with a market cap exceeding RMB 10 billion.

Proactive management of financing risks effectively stabilized financing costs
- For the RMB 530 million short-term loan, HKD 2.1 billion 5-year syndicated loan, and other loans maturing in 2025, the manager completed the refinancing of the RMB 530 million short-term loan in the first half of 2025, secured RMB 1.7 billion in offshore loans, and issued RMB 1 billion in dim sum bonds to refinance and prepay maturing loans, ensuring effective liquidity risk management.
- The manager introduced a total of RMB 3.23 billion in loans during the period and replaced floating-rate HKD loans with RMB loans, taking advantage of relatively low RMB financing costs to adjust the financing structure and mitigate interest rate market impacts. The financing rate exposure at the end of the first half of 2025 was approximately 14%, narrowing by 12 percentage points from 26% at the beginning of the year; average financing cost was 3.33%, down 83 basis points from 4.16% at the beginning of the year; the average interest payment rate in the first half was 3.92%, down 64 basis points YoY. Financing costs excluding exchange losses were approximately RMB 402 million, down 13.5% YoY.
- As of June 2025, RMB financing amounted to approximately RMB 14.795 billion, accounting for 72% of total financing (same period in 2024: RMB 8.404 billion, 41% of total financing).

Mr. Jiang Guoxiong, Chairman and Non-Executive Director of Yuexiu Property Fund, said: "In the first half of 2025, against the backdrop of global trade volatility and slowing economic growth, China's GDP grew by 5.3% YoY, but corporate expansion remained conservative; retail consumption was weak, and hotel apartment prices were under pressure. To counter industry headwinds, we strategically captured market share, advanced lease renewals ahead of schedule, invested in capital improvements to enhance product competitiveness, and stabilized the operational foundation, providing solid support for interim operating income. At the same time, lower financing costs also created favorable conditions for distributions."

GZIFC
GZIFC improved products and operations, leading to positive increases in customer visits and conversion rates, with 13,133 sqm of new leases signed. The release of 4,235 sqm of furnished units saw a turnover cycle of only about 19 days, with a turnover rate of nearly 90%. New high-quality tenants included a Fortune Global 500 company, a global leading shipping company, and a well-known internet-backed entertainment company, totaling over 2,200 sqm. Renewals covered 9,099 sqm, with a renewal rate of 70%, retaining high-quality tenants including two Fortune Global 500 companies and a foreign consulate. GZIFC was selected for the "Performance Index · 2025 Commercial Asset Operation Performance" TOP30 list by Viewpoint.

GZIFC Mall actively developed digital consumption scenarios, piloting the Yuexiu Club local lifestyle platform, which has covered 12 merchants, while leveraging platforms like Dianping and UnionPay for multi-channel traffic. New and renewed leases totaled 5,734 sqm, with a renewal rate of 97%. Occupancy was 96.4%. During the period, China Duty-Free announced its entry into GZIFC Mall, expected to open in Q3, becoming Guangzhou's first and currently only downtown duty-free store.

Four Seasons Hotel Guangzhou's room revenue and Ascott GZIFC serviced apartments' operating revenue both hit record highs for the same period. Four Seasons Hotel Guangzhou's average occupancy was 80.1%, up 1.1 percentage points YoY; average room rate was RMB 2,201, similar to the previous year; RevPAR was RMB 1,762, up 0.7% YoY; RevPAR competitiveness index was 111.7, maintaining a leading market position among luxury hotels. Ascott GZIFC serviced apartments' average occupancy was 92.3%, up 1.8 percentage points YoY, 9.7 percentage points above competing apartments; average room rate was RMB 1,128, similar to the previous year; RevPAR was RMB 1,041, up 1.5% YoY; RevPAR competitiveness index reached 120.0.

Yuexiu Financial Tower
Yuexiu Financial Tower signed 7,448 sqm of new leases, including seven tenants expanding by 1,500 sqm. It released 7,089 sqm of furnished units, with a turnover cycle of about 38 days and a turnover rate of over 65%. New high-quality tenants included a Fortune Global 500 company and a futures company with a market cap exceeding RMB 10 billion. Due to some tenants relocating to their own properties, renewals covered 10,303 sqm, with a renewal rate of 42%. Retained large-area high-quality tenants included one of the Big Four international firms, Deloitte, and a leading domestic comprehensive asset management company.

Baima Building
Baima Building introduced Pearl River Delta supply chain resources, driving 3,273 sqm of new leases and achieving full occupancy on the first floor. In the first half, it hosted 165 procurement groups, nearly 5,000 buyers, including 23 foreign groups from France, Vietnam, etc., generating procurement volume of RMB 140 million. Leveraging events like the Greater Bay Area International Women's Wear Exhibition and the Canton Fair, Baima Building facilitated tenant transactions and successfully launched the "Baima Yuejingtong" cross-border e-commerce platform and "Baima Business School Marketing Empowerment Camp" series, activating tenants' digital operations.

Fortune Plaza
Fortune Plaza signed 2,354 sqm of new leases, attracting high-quality tenants including several companies under the healthcare and elderly care segment of a Fortune Global 500 financial group. Renewals covered 2,924 sqm, with a renewal rate of 76%, retaining high-quality tenants including a Fortune Global 500 company, while flexibly adjusting units to meet cost-saving demands.

Urban Construction Building
Urban Construction Building signed 7,585 sqm of new leases, attracting a beauty tech company to enhance the health and wellness atmosphere. Tailored retention plans were developed based on tenants' cost-saving preferences, optimizing product standards to meet tenant needs. Renewals covered 2,090 sqm, with a renewal rate of 68%, including the Guangzhou office of a globally renowned contract research organization (CRO).

Victory Plaza
Anchor tenant "UNIQLO" continued to play a flagship role at Victory Plaza, launching its C-series products and hosting the national premiere of the "UNIQLO Good Life Market" from March 28 to April 6, featuring giant Pokémon and music events, reaching peak quarterly foot traffic and driving April sales up 7% YoY, contributing to a 0.3% YoY increase in mid-term sales. The project collaborated with F&B tenants to capitalize on peak traffic, boosting overall project sales by 0.6% YoY.

Shanghai Yuexiu Tower
Shanghai Yuexiu Tower renewed 3,798 sqm, with a renewal rate of 39%; signed 3,933 sqm of new leases, quickly filling vacated units. By replacing parking lot lighting with energy-efficient bulbs, the project improved brightness, achieving both energy savings and service quality enhancements, increasing tenant satisfaction. As of mid-year, Shanghai Yuexiu Tower's occupancy was 87.2%, up 2.6 percentage points YoY.

Wuhan Properties
Yuexiu Fortune Center Wuhan signed 12,395 sqm of new leases, attracting high-quality tenants including a member of a global leading automotive group and a diversified professional services company. Renewals covered 10,884 sqm, with a renewal rate of 81%, retaining large-area high-quality tenants including a Fortune Global 500 central enterprise. The leasing team optimized tenant viewing experiences through unit micro-renovations, soft furnishing upgrades, and smart showrooms, improving conversion rates.

Star Harbour Mall signed and renewed 3,894 sqm, with a renewal rate of 82%. It successfully attracted several popular F&B brands, including the viral "Domino's" on the first floor of Block A, attracting more family customers. The project developed nighttime consumption, leveraging the fourth-floor "Yue Garden" to create "Riverside Star Night" and "Midnight Canteen" as new growth drivers.

Hangzhou Victory
Hangzhou Victory signed 1,974 sqm of new leases, attracting a full-floor tenant. Renewals covered 6,083 sqm, with a renewal rate of 64%, retaining high-quality tenants including a Fortune Global 500 construction engineering company and a Zhejiang branch of a Shanxi state-owned enterprise.

Future Outlook
The market generally expects the Fed to further cut rates in the second half of the year, but the path and magnitude remain uncertain. On the other hand, 2025 marks the final year of China's 14th Five-Year Plan, with policies emphasizing stability, including moderately loose monetary policy and "trade-in" consumption subsidies aimed at stimulating market vitality through domestic demand expansion. Thus, the manager expects RMB interest rates to remain low. With the accelerated cultivation of new quality productive forces and deepening supply-side reforms, the manager anticipates continued industrial innovation and improving business sentiment. The highly anticipated 15th National Games will open in Guangzhou in the second half, expected to boost mall consumption and hotel apartment demand.

In the second half, the manager will implement proactive, stable, and adaptive leasing strategies in response to economic trends, keenly capturing potential opportunities to enhance the portfolio's market competitiveness. The manager will continuously review and adjust the financing structure based on market expectations, seeking lower-cost RMB financing through various channels to optimize financing costs and smooth interest rate risks. The manager will proceed with planned capital improvement projects, including phased renovations of Four Seasons Hotel Guangzhou rooms, focusing on product upgrades, equipment updates, and safety enhancements to preserve and increase property value and ensure stable operations.

About Yuexiu Real Estate Investment Trust
Yuexiu Real Estate Investment Trust ("Yuexiu Property Fund") was listed on the Hong Kong Stock Exchange on December 21, 2005, as the world's first listed REIT investing in mainland China properties. The Fund's current portfolio includes 10 high-quality properties: Guangzhou International Financial Center, Baima Building, Fortune Plaza, Urban Construction Building, Victory Plaza, Yuexiu Financial Tower in Guangzhou; Yuexiu Tower in Shanghai; Wuhan properties (including Yuexiu Fortune Center and Star Harbour Mall) in Wuhan; Victory Business Center in Hangzhou; and Yuexiu Tower in Hong Kong. The total GFA is approximately 1.184 million sqm, located in core commercial areas of Guangzhou, Shanghai, Wuhan, Hangzhou, and Hong Kong. Property types include Grade A offices, mixed-use complexes, retail, hotels, serviced apartments, and apparel wholesale markets.$YUEXIU REIT(00405.HK)