An existing Fortune REIT property in Hong KongFortune REIT has indicated that it will use proceeds from the sale of Nob Hill Square to repay existing loans.

Despite having faced record falls in prices lately. Singapore-listed Fortune REIT has posted a robust 14.4 percent increase in distributable income for 1H2013 as compared to the corresponding reporting period for 2012.

This comes on the back of healthy growth in gross revenue which increased 13.4 percent to HK$609 million from HK$537 million last year. Net property income came in at HK$437 million up 14.5 percent from HK$382 a year ago.

Fortune REIT holds a portfolio of 16 retail properties in Hong Kong

The robust growth in numbers have been attributed to ongoing AEIs and well timed acquisitions executed by the REIT.

Fortune REIT is a Hong Kong focused Retail REIT that was recently facing the specter of a slowdown in the Chinese retail scene. Malls under Fortune REIT are heavily patronized by visitors from China and there were concerns that a prolonged credit crisis could hit earnings at its 16 malls.

Units of Fortune REIT went from as high as HK$8.43 on the 15 May before making a series of plunges over the last few weeks. Units of Fortune REIT are currently trading on the Singapore Exchange at HK$7.15

More analysis of these results in the upcoming issue of REITSWEEK. Subscribe here.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.