Finance costs fell 31.2 per cent to HK$282.14 million after some of its borrowings were paid off with proceeds from the HK$6.29 billion initial public offering of Champion Reit, said Great Eagle assistant director Adrian Lee Ching-ming.

The company for the first time recorded income from its 48.3 per cent-owned Champion Reit, which contributed HK$138.8 million.

The reit, whose sole asset is Citibank Plaza in Central, was floated on the stock exchange in May last year.

To boost its initial yield, Great Eagle waved its share of the dividend distribution last year. The trust's earnings have shot up thanks to surging office rents in Central.

Other Great Eagle holdings include Great Eagle Centre in Wan Chai, Langham Place in Mong Kok and hotels in Hong Kong and overseas.

Net operating profit from its hotels division - which includes the Eaton in Jordan and Langham-branded venues in Hong Kong, London and Boston - increased 14 per cent to HK$392 million, with total revenue up 12 per cent at HK$1.4 billion.

Company chairman Lo Ka-shui expects continued improvements in the second half.

'We are expecting increasing contributions from our investment in Champion Reit,' he said.

The company said it would continue to examine investment opportunities with a focus on the mainland.

Earnings per share shot up to HK$1.02 from 17 HK cents a year earlier.

The company offered an interim dividend payout of 15 HK cents a share, compared with five HK cents and a Reit-related special interim dividend of HK$5 per share for the same period last year.

Its shares rose 1.11 per cent to HK$27.40 before the earnings announcement.

Paying off

Stake of Great Eagle in Champion Real Estate Investment Trust: 48.3%