Regal Real Estate Investment Trust (Regal Reit) saw a drop of more than 40 per cent in distributable income last year to HK$397.9 million, causing the final distribution per unit to decline by a similar percentage to 6.3 HK cents.
'The total distributable income in the preceding year was comparatively higher due largely to the higher rental package predetermined for 2010 and the recognition in 2010 of part of the aggregate guaranteed variable rent between 2007 and 2010,' said Lo Yuk-sui, the chairman of Regal Reit's manager Regal Portfolio Management.
The reit, whose portfolio includes six hotels in Hong Kong, said its profit tripled from HK$997.1 million to nearly HK$2.98 billion due to strong appreciation in the value of its properties.
However, its net rental and hotel income dropped 21.4 per cent to HK$707 million.
The average occupancy rate rose 5 percentage points to 90.9 per cent, while the revenue per available room posted an increase of nearly 30 per cent to HK$862.99.
'The tourism and hotel industry in Hong Kong is expected to further prosper, which will, in turn, benefit Regal Reit to grow its future capital value and profit earnings,' Lo said.