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Fortune Reit considers secondary listing in HK

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Sandy Li

Trust controlled by Li Ka-shing reports a net income of $20 million

Fortune Real Estate Investment Trust plans to seek a secondary listing in Hong Kong after announcing yesterday a huge gain in third-quarter net income.

The real estate investment trust (reit), controlled by Li Ka-shing, registered $20.33 million in net income available for distribution in the period between August 13 and September 30, up 119.31 per cent from $9.27 million in the same period last year.

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According to listing rules, Fortune must distribute 100 per cent of its tax-exempt income to investors.

The firm, which listed in August, said the hefty earnings increase was because last year's results excluded two of five shopping malls which were sold to the trust. Contributions from the two malls did not begin until October 1 last year.

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It said its quarterly distribution per unit would be 4.3 cents, up 9.6 per cent from 3.92 cents forecast in its listing prospectus.

Gross rental income reached $27.02 million for the period, up 107.07 per cent from a year ago.

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