Its latest figures showed distributable income increased 3.7 per cent year-on-year to HK$487.3 million, and the shareholder dividend increased 3 per cent to 25.53 HK cents.

Despite Hong Kong’s low retail sales growth with tourists no longer buying big ticket items, the trust’s retail portfolio saw an occupancy rate of 96.6 per cent.

“Our malls are mostly community focusing on local demand with food and beverage services or supermarkets,” said Justina Chiu, its chief executive, adding they have more stable incomes and are less affected by tourist consumption.

Rental reversions during the reporting period were 10.7 per cent. Passing rent stood at HK$42 per square foot and the retention rate was as high as 78 per cent.

Chiu added that a well-diversified trade mix with a strong focus on daily necessities continues to be its core business model.

To boost growth, meanwhile, the firm is planning to embark on what it called an “asset enhancement” of its Fortune Kingswood in Tin Shui Wai, transforming it into a regional shopping and entertainment venue in the hope of attracting a wider range of shoppers from other districts and areas.

The company said it has no refinancing needs until 2019 with ample liquidity being provided by the Hong Kong banking system. It has arranged a 5-year, HK1.2 billion (US$153 million) unsecured banking facility to refinance all it debt due in 2018 and there are no refinancing needs until 2019.

As at 30 June 2017, Fortune REIT’s gearing ratio and aggregate leverage reduced to 28.4 per cent, down 1.1 per cent from December, as a result of higher property valuations.

Its share price rose 11 per cent during the first half to HK$9.78 per share, its closing price on Friday.

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