Hui Xian REIT's Beijing Oriental Plaza.Hui Xian REIT's Beijing Oriental Plaza. (Photo: Hui Xian REIT)

Hong Kong-listed, RMB-denominated mixed-development REIT, Hui Xian REIT, announced on 15 March that it has achieved a distribution per unit (DPU) of RMB0.27 for its financial year 2015, an increase of 5.2% compared to the RMB0.2567 in 2014.

This came on the back of a 9.1% increase in total revenue for the year which came in at RMB3,050 million. Correspondingly net property income (NPI) and total amount available for distribution saw an increase of 9.9% and 8.4% to RMB2,036 million and RMB1,479 million respectively.

“The increase was driven by the organic growth from the existing leasing and hotel portfolio, and the additional income contributed by the newly acquired Chongqing Metropolitan Oriental Plaza from 2 March 2015 to 31 December 2015”, said the REIT in its statement.

Based on the closing unit price of RMB3.33 on 31 December 2015, the distribution yield was 8.11%.

“Looking ahead, 2016’s global economic climate is expected to be even more challenging, given a multitude of macro headwinds”, said the REIT, adding that it will work towards improving the quality and competitiveness of its portfolio with asset enhancement initiatives and a tenant mix upgrade programme. This will be done specifically for Beijing Oriental Plaza and Chongqing Metropolitan Oriental Plaza, said Hui Xian REIT.

“We will continue to actively seek suitable acquisition opportunities which could expand our portfolio and bring long-term benefits for the unitholders”, the REIT added.

Units of Hui Xian REIT closed the trading day about 0.6% higher from its previous finish to end at RMB3.20 on the Stock Exchange of Hong Kong.

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.