Fortune Real Estate Investment Trust · HKEX:778
Fortune Real Estate Investment Trust — H1 2025 Earnings Presentation
49 slides from Fortune Real Estate Investment Trust's earnings presentation, Aug 5, 2025
Slide 1: Financial Results
Financial Results For the six months ended 30 June 2025 5 August 2025
Slide 2: Go Green and Paperless with us
Go Green and Paperless with us Scan the QR Codes for our Financial Results Presentation Announcement 中文版簡報 中文版公告
Slide 3: Results Overview
Results Overview CNY “Picking the Green” Tradition at Fortune Malls
Slide 4: 1H2025 Results Overview
1H2025 Results Overview 7.7% Annualised Healthy Aimed To Stabilize Dividend Yield Balance Sheet Asset Performance 2.1% YoY 26.2% 95.0% Distributable Income Gearing Solid Occupancy1 HK$377.1M 1.0% YoY 50% 82% Interim DPU Fixed Rate Debt1 High Tenant Retention HK$0.1841 Note: 1. As at 30 June 2025 FOR
Slide 5: 1H2025 Financial Highlights
1H2025 Financial Highlights Significant savings in finance cost offset decline in NPI Revenue NPI Finance Cost1 (HK$M) (HK$M) Cost-to-Revenue Ratio (HK$M) Effective Interest Cost 871.8 890 5% 633.1 198.1 5% 854.5 870 640 200 5% 620 612.6 34% 190 850 32% 600 180 4.1% 173.3 5% 830 30% 170 4% 580 26.1%
Slide 6: High Base Rent Model Ensures Stable Revenue Stream
High Base Rent Model Ensures Stable Revenue Stream Over 90% of revenue from stable streams 77.0% Base rental1: HK$658.5M 3.7% 1H2025 Revenue 14.9% Charge-out income2: HK$127.2M 3.9% HK$854.5M 7.3% Carpark income: HK$61.6M 2.6% 0.7% Turnover rent: HK$5.7M 20.9% 0.1% Other income: HK$1.5M 99.1% Notes:
Slide 7: Capital Management
Capital Management Exterior of Fortune Metropolis
Slide 8: Prudent Debt Management
Prudent Debt Management Debt Maturity Profile (HK$M) as at 30 Jun 2025 Total loans available HK$10,513M; HK$9,840M were drawn 26.2% 3.5% Gearing Effective borrowing cost2 Refinancing to 3,800 Loan in HKD Loan in SGD2 be completed in 1.4 yrs 2.3 yrs 3Q2025 2,500 613 Avg. debt maturity Avg. swap matur
Slide 9: Stable Portfolio Valuation
Stable Portfolio Valuation Portfolio Total Hong Kong Portfolio Singapore Asset HK$ 37,277M HK$ 36,695M SG$ 95M 2.0% from Dec 2024 2.2% from Dec 2024 Remains Unchanged Per sf (G) retail HK$11,516 psf NAV Per Unit Acquisition of Stars of HK$ 12.67 Per carpark lot HK$783,000 Kovan Property 4.1% from De
Slide 10: Portfolio Performance
Portfolio Performance New F&B concept @Fortune City One
Slide 11: Portfolio Performance Highlights
Portfolio Performance Highlights Occupancy Average occupancy Maintaining occupancy remains 95.0% +0.9% compared to 1H24 our focus. Centre de Laguna as +WOO occupancy rose improved to 81% with new anchor As at 30 Jun 2025 further to 97.1% signed Retention Adaptive leasing strategy to retain Signed 64
Slide 12: A Strategic Focus on Necessity Trades
A Strategic Focus on Necessity Trades Necessity Trades WALE Lease Expiry in 2H2025 72% 1.4 Yrs 629k sq.ft OR 25% of rental By rental income By rental income By Gross Rentable Area Tenant’s Trade Mix By Gross Rental Income (as at 30 Jun 2025) 27.5% Services & Education 26.3% 26.0% Food & Beverages 29
Slide 13: Trade Mix Enhancement To Meet Evolving Market Demand
Trade Mix Enhancement To Meet Evolving Market Demand Dining Ramen Fujian Flavor Fast Food Japanese Shabu Shabu @Fortune City One Excitements @Fortune City One @Fortune Metropolis @Metro Town Wellness & Fitness Centres Wellness Claw Machine Shop Claw Machine Shop Entertainment @+WOO & Centre de Lagun
Slide 14: Targeted Marketing
Targeted Marketing Chinese New Year celebration event with celebrities
Slide 15: Festive Campaigns to Drive Footfall and Tenants' Sales
Festive Campaigns to Drive Footfall and Tenants’ Sales Chinese New Year Easter & Spring Festive IP Decor Festive IP Decor Stage Events Premiums Redemption God of Wealth Lion Dance Parade Lucky Draw FORTUNE REIT | 1H2025 Financial Results | Page 15
Slide 16: Thematic Events and Targeted Promotional Campaigns
Thematic Events and Targeted Promotional Campaigns Thematic Mall Events Targeted Promotional Campaigns & Spending Rewards Education Day – Family Carnival Wet market promotion Free parking promotion F&B promotion TV Drama Promotion Movie tickets redemption Gifts redemption Coupons redemption FORTUNE
Slide 17: Customer Loyalty Empowered by Digital Engagements
Customer Loyalty Empowered by Digital Engagements Fortune Malls APP Active presence on social platforms enhances customer loyalty and KOL reels generate massive coverage Achievements in 1H25 Fortune+ Rewards Programme 49% YoY New members 20% YoY Active members 28% YoY Redeemed Points+ FORTUNE REIT |
Slide 18: Stable Mall Traffic Despite Market Challenges
Stable Mall Traffic Despite Market Challenges • Footfall -1.5% YoY in 1H2025, with signs of improvement emerged in May and June • Diverse offerings & effective promotions cushioned adverse market impact • Ongoing challenges from more frequent outbound travels by HK residents and growing competition
Slide 19: Enhancement Initiatives
Enhancement Initiatives Refurbished Waldorf Avenue
Slide 20: AEIs Completed at Waldorf Avenue
AEIs Completed at Waldorf Avenue BEFORE BEFORE BEFORE CAPEX HK$9M Commencement Inviting entrance Feature walls and better signages Modernized ceiling & lighting Feb 2025 Completion Jul 2025 Occupancy 99.5% Jun 2025 AFTER AFTER AFTER FORTUNE REIT | 1H2025 Financial Results | Page 20
Slide 21: AEIs On Track for Completion: Laguna Plaza
AEIs On Track for Completion Laguna Plaza – Repositioning of Basement Floor CAPEX Commencement Target Completion HK$ 32M Feb 2025 4Q2025 12k apartments in Laguna City & nearby ▪ ~26,000 sq.ft. reconfiguration to downsize a supermarket by 40% and create new F&B and retail shops ▪ To increase F&B prop
Slide 22: Outlook & Strategies
Outlook & Strategies Fortune City One
Slide 23: Outlook and Strategies
Outlook and Strategies Market Cost and Portfolio Dynamics Capital Management Optimization ▪ Frequent outbound travels and ▪ Cost optimization, operational ▪ Adaptive and flexible leasing strategy changing consumer behavior remain efficiency initiatives and robotic focuses on maintaining stable the k
Slide 24: Sustainability
Sustainability Solar panels on rooftop @Fortune City One
Slide 25: Persistent Commitments to Sustainability
Persistent Commitments to Sustainability 85% GRA 100% Equipped with BMS HK assets certified as Green Buildings 8 175 Fortune Malls Engagement hours with EV chargers for CSR events in 1H2025 62% 188 kgs of produce Sustainability-linked Grown and donated by Loans Farm@Fortune in 1H2025 FORTUNE REIT |
Slide 26: Appendix
Appendix Festive displays and decoration @Ma On Shan Plaza
Slide 27: Investment Highlights
Investment Highlights HK$9.9B HK$37.3B HK$12.67 72% income MSCI index Highest 5-Star Market Portfolio NAV from non-discretionary Inclusion in World GRESB Rating Cap Valuation per Unit trades Small Cap Fortune City One Ma On Shan Plaza +WOO Fortune Metropolis Laguna Plaza 20+ years A pure-play in of
Slide 28: Sustainability Achievements Highlights
Sustainability Achievements Highlights 5-Star 1st HK REIT Received SBTi’s approval Highest rating in GRESB for near-term emission reduction for 4 consecutive years target 8-Yr AA- Low Risk in consecutive Sustainability Rating by Morningstar Hang Seng Corporate Hong Kong Quality Assurance Sustainalyt
Slide 29: Long-Term Sustainability Goals
Long-Term Sustainability Goals Emission Energy Water Waste Scope 1 & 2 Energy Water Waste GOALS GHG Emissions Consumption Intensity Recycling Rate Against a 2019 baseline 46% reduction 30% reduction 10% reduction 15% by 2030 by 2035 by 2035 by 2035 PROGRESS 41.3% 15.7% 19.2% 7.7% By end of 2024 Redu
Slide 30: A Hong Kong-Focused Neighborhood Mall Portfolio
A Hong Kong-Focused Neighborhood Mall Portfolio 17 Assets 2 Flagship Malls in HK 16 neighborhood malls in Hong Kong 1 suburban retail property in Singapore 1 Fortune City One New 3 10 2 +WOO Territories Tai Wai 1 City One 8 5 Fortune Metropolis 15 16 6 Tsuen Wan West 11 3 million sq.ft. 12 Kowloon D
Slide 31: Portfolio Valuation Breakdown
Portfolio Valuation Breakdown (13) Stars of Kovan Portfolio Valuation1 (HK$M) Property 1.6% (1) Fortune City One 7,602 Portfolio valuation (2) +WOO 7,325 (3) Ma On Shan Plaza 5,274 HK$37,277M (4) Metro Town 3,393 (9) 3.1% (1) 20.4% (5) Fortune Metropolis 2,333 (8) 4.6% (6) Belvedere Square 2,279 (7)
Slide 32: Stable Portfolio Occupancy
Stable Fortune REIT’s portfolio GRA(sq.ft.) Occupancy Portfolio 30 Jun 25 31 Dec 24 30 Jun 24 1. Fortune City One 414,469 97.0% 95.2% 97.1% Occupancy 2. +WOO 665,244 97.1% 94.7% 93.4% 3. Ma On Shan Plaza 310,084 98.7% 98.2% 98.4% 4. Metro Town 180,822 98.0% 100.0% 100.0% 5. Belvedere Square 276,862
Slide 33: Resilient Asset Class with Attractive Yield
Resilient Asset Class An attractive distribution yield of 7.7% with Attractive Yield 7.7% 5.3% 4.2% 3.4% 2.9% 1.3% 1.6% Fortune HS Property HS Index HK 10Y Govt. HK US 10Y China 10Y 2 REIT's Index Dividend Bond Yield Composite Treasury Govt. 2 2 Annualized Dividend Yield 2 Interest Rate 2 Yield Bond
Slide 34: Income Statement (1H2025)
Income (HK$’M) 1H2025 1H2024 YoY% 2H2024 HoH% Statement Revenue 854.5 871.8 -2.0% 874.5 -2.3% Property operating expenses (222.9) (219.1) +1.7% (235.1) -5.2% Manager’s performance fee (19.0) (19.6) -3.2% (19.2) -1.2% (1H2025) Net property income 612.6 633.1 -3.2% 620.2 -1.2% Manager’s base fee (56.0
Slide 35: Balance Sheet
Balance Sheet HK$’000 30 Jun 2025 31 Dec 2024 Gearing ratio Current assets 196,662 198,924 26.2% Non-current assets 37,341,414 38,260,513 Total assets 37,538,076 38,459,437 Portfolio valuation Current liabilities 7,603,687 4,310,885 HK$37,277M Non-current liabilities 3,989,830 7,217,799 Total liabil
Slide 36: Distribution Details
DISTRIBUTION DETAILS 20 August 2025 (Wed) E x -d a te 18.41 HK cents 21 August 2025 (Thu) D P U f o r the six m o n ths e n d e d 3 0 J u n 2 0 2 5 R e co r d D a te 19 September 2025 (Fri) P a ym e nt D a te FORTUNE REIT | 1H2025 Financial Results | Page 36
Slide 37: Acquisitions for Growth
Acquisitions for Growth Asset Portfolio grew >10 times in 20+ years AUM increased to HK$37.2 billion from HK$3.3 billion since IPO 17 17 17 14 16 Malls Malls 16 Malls Malls Malls 11 Malls Malls +WOO Laguna Plaza Stars of Kovan Property 5 Provident Square Malls Rhine Avenue Metro Town Caribbean Squar
Slide 38: Proven Track Record in AEIs
Proven Track Record in AEIs Property / Enhanced Area Completion CAPEX (HK$) ROI1 Metro Town –10,000 sf 1Q 2023 5.3M 11% +WOO Phase 1 – 200,000 sf 3Q 2019 150M 10.5% Belvedere Square - 126,000 sf 4Q 2015 80M 20.3% Ma On Shan Plaza - 59,000 sf 4Q 2013 15M 60% (previously a supermarket) Fortune City On
Slide 39: AEIs at +WOO – Modernized Interior & Exterior
AEIs at +WOO – Modernized Interior & Exterior CAPEX HK$300M Enhanced ceiling aiming to save energy of main atrium LED screen and featured ceiling Completion July 2024 Occupancy 97.1% Jun 2025 Immediate Catchment 270K population & expanding Modernized interior with more prominent shop front Revamped
Slide 40: AEIs at +WOO - Upgraded Amenities
AEIs at +WOO - Upgraded Amenities Inclusive amenities New directory and service counter Improved accessibility with new ramp Kid’s playground, engaging games and visuals Nursery room Smart toilet with digital display Free filter water FORTUNE REIT | 1H2025 Financial Results | Page 40
Slide 41: AEIs at Metro Town
AEIs at Metro Town CAPEX Completion Return on Investment HK$5.3M Jan 2023 11% ▪ Subdivided a 8,500 sq.ft. vacant kindergarten together with 2 adjacent shops into three shops to cater for new demand ▪ Introduced new F&B and household tenants ▪ More efficient layout with widen and more prominent shop
Slide 42: AEIs at Belvedere Square
AEIs at Belvedere Square Phase 3 CAPEX Completion ROI HK$80M 4Q2015 >20% Enhanced offerings after AEIs F&B Toy Shop Health Food FORTUNE REIT | 1H2025 Financial Results | Page 42
Slide 43: AEIs at Fortune City One
AEIs at Fortune City One CAPEX Completion ROI HK$150M 3Q2013 >20% FORTUNE REIT | 1H2025 Financial Results | Page 43
Slide 44: Hong Kong Economy – Macro Conditions
Hong Kong Economy – Macro Conditions 3.4 3.4 4.3 GDP 3.0 3.1 2.9 2.6 1.9 2.5 1.1 YoY % Change -3.6 -3.5 4.7 -4.3 +3.1% YoY GDP in real terms Q2 2025 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5.7 4.3 4.9 Composite 3.7 2.9 2.4 2.5 2
Slide 45: Hong Kong Retail Sales and Restaurant Receipts
Hong Kong Retail Sales and Restaurant Receipts Retail Sales Value (YoY %) ▪ Total retail sales value ended a 14M slump in 15% May due to a low base effect, recording growth 10% 6.8% of 2.4% YoY and 0.7% YoY in May and June, 5% 6.0% respectively. Overall retail sales in 1H2025 Supermarkets 0.7% decre
Slide 46: Tourist Arrivals and Outbound Travels
Tourist Arrivals and Outbound Travels Inbound Tourist Arrivals ▪ 23.6 million tourists (i.e. an average of 3.9 5,000,000 24.0% 30. 0% million per month) visited HK in 1H2025, 20.0% 25. 0% marking an 11.7% YoY increase. 75% came from 4,000,000 18.3% 20. 0% Mainland China. 12.2% 13.5% 11.1% 12.0% 3,00
Slide 47: Singapore - Retail Market Performance
Singapore - Retail Market Performance S$B Retail sales picking up steadily post-covid +4.3% GDP 5.00 50% +4.1% YoY in 1Q2025 Retail Sales Value (Excl. Motor Vehicles) Online Sales Proportion YoY 4.02 For 2Q2025 4.00 40% 3.22 3.00 30% +1.4% Retail Sales1,2 2.00 20% +0.2% YoY in Apr 2025 YoY 1.00 10%
Slide 48: Disclaimer
Disclaimer This document has been prepared by ESR Asset Management (Fortune) Limited, in of the Fortune REIT’s financial or trading position or prospects. This document its capacity as the manager (“REIT Manager”) of Fortune Real Estate Investment may contain forward looking statements. Investors ar
Slide 49: Contact Us
CONTACT US ESR Asset Management (Fortune) Limited Justina Chiu Chief Executive Officer justina.chiu@esr.com Jenny Hung Deputy Chief Executive Officer jenny.hung@esr.com Maggie Mui Assistant Director, Investor Relations maggie.mui@esr.com www.fortunereit.com www.fortunemalls.com.hk
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