Fortune Real Estate Investment Trust · HKEX:778
Fortune Real Estate Investment Trust — H1 2026 Earnings Presentation
44 slides from Fortune Real Estate Investment Trust's earnings presentation, Aug 4, 2026
Slide 1: Financial Results
Financial Results For the six months ended 30 June 2026 4 August 2026
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
CNY “Lion Dance” Tradition at Fortune Malls RESULTS OVERVIEW
Slide 4: 1H2026 Results Overview
1H2026 Results Overview Navigating evolving retail landscape with resilience and discipline Portfolio Resilience Strong Balance Sheet Attractive Returns 96.4% 26.9% 8.0% Improved Occupancy1 Prudent Gearing1 Annualized Yield 82% HK$36.7B HK$0.1750 High Tenant Retention Asset Valuation1 Stabilized Int
Slide 5: 1H2026 Financial Highlights
1H2026 Financial Highlights Cost discipline and interest savings helped offset revenue headwinds Revenue NPI Finance Cost1 (HK$M) (HK$M) Cost-to-Revenue Ratio (HK$M) Effective Interest Cost 900 5% 854.5 5% 850 820.8 650 612.6 34% 200 5% 600 584.3 190 32% 800 173.3 5% 168.3 180 550 30% 750 4% 26.1% 2
Slide 6: High Base Rent Model Supports Revenue Stability
High Base Rent Model Supports Revenue Stability Over 90% of revenue anchored by recurring income streams 75.9% Base rental1: HK$623.0M 5.4% YoY 1.2% HoH 1H2026 Revenue 15.7% Charge-out income2: HK$128.9M 1.4% YoY 1.1% HoH HK$820.8M 3.9% YoY | 0.9% HoH 7.5% Carpark income: HK$61.5M 0.3% YoY 0.2% HoH
Slide 7: Capital Management
Awarded three prestigious honors at FinanceAsia Asia Best Companies Awards 2026 CAPITAL MANAGEMENT
Slide 8: Prudent Debt Management With Full Sustainability Integration
Prudent Debt Management With Full Sustainability Integration Debt Maturity Profile (HK$M) as at 30 June 2026 26.9% 3.4% Total loans available HK$10,884M; HK$9,941M were drawn Gearing Effective borrowing cost1 Loan in HKD Loan in SGD2 4,800 Including HK$3.8B 2.7 yrs 2.0 yrs refinancing Avg. debt matu
Slide 9: Stable Portfolio Valuation
Stable Portfolio Valuation Portfolio Total Hong Kong Portfolio Singapore Asset HK$ 36,667M HK$ 36,093M SG$ 95M 0.4% from Dec 2025 0.4% from Dec 2025 Remains Unchanged Per sf (G) retail HK$12,023 psf NAV Per Unit Acquisition of Stars of HK$ 12.21 Per carpark lot HK$778,000 Kovan Property 0.1% from De
Slide 10: Portfolio Performance
Brand New F&B offering @Metro Town PORTFOLIO PERFORMANCE
Slide 11: Portfolio Performance Highlights
Portfolio Performance Highlights Retail recovery is driving a more supportive leasing environment Occupancy +WOO occupancy rose to 99.4%, its 96.4% Portfolio occupancy improved to a six-year high of 96.4% highest level in over a decade while Belvedere Square rebounded following the introduction of a
Slide 12: A Strategic Focus On Necessity Trades
A Strategic Focus On Necessity Trades Necessity Trades WALE Lease Expiry in 2H2026 71% 1.3 Yrs 720k 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 2026) 27.8% Services & Education 27.0% 26.2% Food & Beverages 29
Slide 13: Strengthening Dining Offerings With Evolving F&B Concepts
Strengthening Dining Offerings With Evolving F&B Concepts ▪ F&B is the largest trade category ▪ Remains a key driver for daily customer traffic ▪ Contributes 29.7% of portfolio rental income ▪ Integral to our community-focused positioning Focused to capture evolving consumer preferences Specialty &
Slide 14: Expanding Wellness & Entertainment To Drive Repeat Visits
Expanding Wellness & Entertainment To Drive Repeat Visits ▪ Footprint expanded by 11.4% in 1H2026 ▪ Supported by sustained demand for lifestyle-oriented offering ▪ Contributes 3.4% of portfolio rental income ▪ Less vulnerable to e-commerce impact Growing demand supported expansion to 8 fitness centr
Slide 15: Targeted Marketing
CNY campaign anchored by high-profile IP collaboration TARGETED MARKETING
Slide 16: IP-Led Seasonal Campaigns to Drive Footfall and Tenants' Sales
IP-Led Seasonal Campaigns to Drive Footfall and Tenants’ Sales Chinese New Year Easter & Spring Festive IP Decor Festive IP Decor Lion Dance Spending Rewards God of Wealth Parade Premiums Redemption Premiums Redemption FORTUNE REIT | 1H2026 Financial Results | Page 16
Slide 17: Targeted Engagement to Encourage Repeat Visits & Spending
Targeted Engagement to Encourage Repeat Visits & Spending Recreational-Led Engagement Incentives-Led Engagement Fortune Fun Playground Pickleball trial sessions Free parking promotion Wet market promotion +WOO Fun Fit Beyblade battle zones Lucky draw Coupons redemption FORTUNE REIT | 1H2026 Financia
Slide 18: Customer Loyalty Empowered by Digital Engagements
Customer Loyalty Empowered by Digital Engagements Fortune Malls APP Strong social media presence & KOL enhances customer loyalty reels amplify campaign reach and and supports tenant sales enhance customer engagement User Growth Spending Growth 7% YoY New members 16% YoY 9% YoY Registered spending Ac
Slide 19: Footfall and Car Traffic Improved in 1H2026
Footfall and Car Traffic Improved in 1H2026 TV Drama Promotion Recreational-Led Event ▪ Recovery supported by targeted promotions and parking incentives ▪ Weekend and holiday visitation showed notable increase in 1H2026 ▪ Growth in northbound travel shows signs of moderation Meet & Take Photos with
Slide 20: Outlook & Strategies
Fortune Metropolis OUTLOOK & STRATEGIES
Slide 21: Outlook and Strategies
Outlook and Strategies Retail sales recovery is underpinning a more supportive leasing outlook, with negative rental reversion continuing to narrow despite a competitive operating environment. Strengthening portfolio resilience through sustained high occupancy levels and strong tenant retention. Con
Slide 22: Appendix
Festive displays and decoration @Fortune Metropolis APPENDIX
Slide 23: Investment Highlights
Investment Highlights HK$9.1B HK$36.7B HK$12.21 71% income MSCI index Highest 5-Star Market Portfolio NAV from non-discretionary Inclusion in World GRESB Rating Cap Valuation per Unit trades Small Cap Fortune City One Ma On Shan Plaza +WOO Fortune Metropolis Laguna Plaza 20+ years A pure-play in of
Slide 24: Sustainability Achievements Highlights
Sustainability Achievements Highlights 5-Star 1st HK REIT Received SBTi’s approval Highest rating in GRESB for near-term emission reduction for 5 consecutive years target 9-Yr AA- Low Risk in consecutive Sustainability Rating by Morningstar Hang Seng Corporate Hong Kong Quality Assurance Sustainalyt
Slide 25: On Track to Achieve Mid- to Long-Term Sustainability Goals
On Track to Achieve Mid- to Long-Term Sustainability Goals Emission Energy Water Waste Scope 1 & 2 Energy Water Waste GOALS GHG Emissions Consumption Intensity Recycling Rate Against a 2019 baseline 46% reduction 30% reduction 10% reduction 15% by 2030 by 2035 by 2035 by 2035 PROGRESS 39% 27% 6% 8.3
Slide 26: A Hong Kong-Focused Neighborhood Mall Portfolio
A Hong Kong-Focused Neighborhood Mall Portfolio 17 Assets 2 Flagship Malls in HK 16 neighborhood malls in Hong Kong 1 suburban retail property in Singapore 1 Fortune City One New 3 10 Ma On Shan 2 +WOO Territories Tai Wai 1 City One 8 3 Ma On Shan Plaza 15 16 6 Tsuen Wan West 11 5 Fortune Metropolis
Slide 27: Portfolio Valuation Breakdown
Portfolio Valuation Breakdown (13) Stars of Kovan Portfolio Valuation1 (HK$M) Property 1.6% (1) Fortune City One 7,340 Portfolio valuation (2) +WOO 7,328 (3) Ma On Shan Plaza 5,148 HK$36,667M (4) Metro Town 3,403 (9) 3.1% (1) 20.0% (5) Fortune Metropolis 2,351 (8) 4.6% (6) Belvedere Square 2,200 (7)
Slide 28: Stable Portfolio Occupancy
Stable Fortune REIT’s portfolio GRA(sq.ft.) Occupancy Portfolio 30 Jun 26 31 Dec 25 30 Jun 25 1. Fortune City One 414,469 96.4% 96.3% 97.0% Occupancy 2. +WOO 665,244 99.4% 98.7% 97.1% 3. Ma On Shan Plaza 310,084 98.7% 99.1% 98.7% 4. Metro Town 180,822 99.6% 98.7% 98.0% 5. Belvedere Square 276,862 95
Slide 29: Resilient Asset Class with Attractive Yield
Resilient Asset Class An attractive distribution yield of 8.0% with Attractive Yield 8.0% 4.6% 4.4% 3.3% 3.2% 1.7% 1.3% Fortune HS Property US 10Y HS Index HK 10Y Govt. China 10Y HK 2 REIT's Index Treasury Dividend Bond Yield Govt. Composite 2 2 Annualized Dividend Yield 2 Yield 2 Bond Yield Interes
Slide 30: Income Statement
Income (HK$’M) 1H2026 1H2025 YoY% 2H2025 HoH% Statement Revenue 820.8 854.5 -3.9% 827.9 -0.9% Property operating expenses (218.4) (222.9) -2.0% (234.6) -6.9% Manager’s performance fee (18.1) (19.0) -4.7% (17.8) +1.5% (1H2026) Net property income 584.3 612.6 -4.6% 575.5 +1.5% Manager’s base fee (54.4
Slide 31: Balance Sheet
Balance Sheet HK$’000 30 Jun 2026 31 Dec 2025 Gearing ratio Current assets 192,281 181,324 26.9% Non-current assets 36,720,209 36,564,358 Total assets 36,912,490 36,745,682 Portfolio valuation Current liabilities 2,830,653 5,141,753 HK$36,667M Non-current liabilities 8,843,203 6,464,298 Total liabil
Slide 32: Distribution Details
DISTRIBUTION DETAILS 20 August 2026 (Thu) E x -d a te 17.50 HK cents 21 August 2026 (Fri) 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 6 R e co r d D a te 18 September 2026 (Fri) P a ym e nt D a te FORTUNE REIT | 1H2026 Financial Results | Page 32
Slide 33: Acquisitions for Growth
Acquisitions for Growth Asset Portfolio grew >10 times in 20+ years AUM increased to HK$36.7 billion from HK$3.3 billion since IPO 17 17 17 14 16 Malls Malls 16 Malls Malls Malls 11 Malls Malls +WOO Laguna Plaza Stars of Kovan Property 5 Provident Square Malls Rhine Avenue Metro Town Caribbean Squar
Slide 34: Proven Track Record in AEIs
Proven Track Record in AEIs Property / Enhanced Area Completion CAPEX (HK$) 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 35: 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 99.4% Jun 2026 Immediate Catchment 270K population & expanding Modernized interior with more prominent shop front Revamped
Slide 36: 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 | 1H2026 Financial Results | Page 36
Slide 37: AEIs at Laguna Plaza
AEIs at Laguna Plaza Reconfiguration of Basement floor for Trade Mix Enhancement Diverse Offerings Brings Vibrancy To Basement Positive Leasing Momentum Continued 3 F&B outlets introduced to G/F in 2H25 CAPEX HK$32M New F&B New Beauty Salon Laguna Plaza Lifestyle Store F&B mix Commencement raised to
Slide 38: AEIs at Waldorf Avenue
AEIs at Waldorf Avenue Refurbishment of Public Corridor to Enhance Mall Positioning BEFORE BEFORE BEFORE CAPEX HK$9M Commencement Inviting entrance Feature walls and better signages Modernized ceiling & lighting Feb 2025 Completion Jul 2025 Occupancy 100% Jun 2026 AFTER AFTER AFTER FORTUNE REIT | 1H
Slide 39: Hong Kong Economy – Macro Conditions
Hong Kong Economy – Macro Conditions 3.0 3.1 2.9 2.6 3.4 3.4 4.3 2.5 3.8 4.3 1.9 1.1 GDP -3.6 -3.5 4.7 -4.3 +4.3% YoY YoY % Change GDP in real terms Q2 2026 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5.7 4.3 4.9 3.7 2.9 2.4
Slide 40: Hong Kong Retail Sales and Restaurant Receipts
Hong Kong Retail Sales and Restaurant Receipts Retail Sales Value (YoY %) Total retail sales value +10.6% in 5M2026, 35% marking 13 consecutive months of growth 30% 25.8% since May 2025. Among individual sectors: 25% Supermarkets 20% ▪ Jewelry & Watches (+26.2%) outperformed, 15% Total Retail Sales
Slide 41: Tourist Arrivals and Outbound Travels
Tourist Arrivals and Outbound Travels Daily Inbound Tourist Arrivals ▪ Inbound tourism stayed on a recovery 200,000 From Mainland From others YoY % of total arrivals 55% trajectory, with 26.7 million visitors (148k per 40% day) to HK in 1H2026, +13.4% YoY and recovering to 84.8% of 2018 levels. 45%
Slide 42: Singapore - Retail Market Performance
Singapore - Retail Market Performance S$B Retail Sales Rise Steadily +5.7% GDP 5.00 50% +6.3% YoY in 1Q2026 Retail Sales Value (Excl. Motor Vehicles) Online Sales Proportion YoY For 2Q2026 4.00 40% 3.00 30% +3.7% Retail Sales1,2 2.00 20% +4.5% YoY in Apr 2026 YoY +3.3% YoY in Mar 2026 1.00 10% For M
Slide 43: 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 44: 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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