New | Hui Xian Reit sees steady growth despite slowing Chinese economy

Hui Xian Real Estate Investment Trust, the first yuan-denominated reit listed in Hong Kong, said on Tuesday that its amount available for distribution rose 8.4 per cent last year despite the weak growth in the mainland Chinese economy and the ongoing global slowdown.

The reit said the amount available for distribution grew to 1.48 billion yuan from 1.36 billion yuan a year ago, with 98 per cent to be distributed to unit holders. Distribution per unit for the second half of the year was about 13.4 fen.

Together with the interim amount announced earlier, the total distribution per unit for the year rose 5.2 per cent year on year to 27 fen. Its distribution yield was 8.11 per cent, based on the closing unit price of 3.33 yuan on December 31, 2015.

“Last year was challenging, marked by a worldwide economic slowdown and increased international volatility,” said Kam Hing-lam, chairman of Hui Xian Asset Management, the manager of the reit, which is partly owned by Cheung Kong Property Holdings.

Nonetheless, Hui Xian Reit managed to maintain the growth momentum, Kam said, adding that the increase was mainly driven by the organic growth of its existing leasing and hotel portfolio. The reit also gained from the additional income contributed by the newly acquired Chongqing Metropolitan Oriental Plaza from March 2 last year.

READ MORE: China’s Hui Xian REIT posts 12.4 per cent growth in amount available for distribution

Total revenue for the period was 3.05 billion yuan, up 9.1 per cent on an annual basis, while net property income rose 9.9 per cent to 2.04 billion yuan.