Spring Real Estate Investment Trust · HKEX:1426
Spring Real Estate Investment Trust — 1H 2025 Earnings Presentation
23 slides from Spring Real Estate Investment Trust's earnings presentation, Aug 21, 2025
Slide 1: Interim Results 2025 Presentation
INTERIM RESULTS 2025 PRESENTATION 21 Aug 2025
Slide 2: Disclaimer
Disclaimer This presentation may contain information which is proprietary, confidential and/or legally privileged and has been prepared by Spring Asset Management Limited, in its capacity as the manager (the “Manager”) of Spring Real Estate Investment Trust (the “Trust”). This presentation is being
Slide 3: Agenda
1 1H 2025 RESULTS HIGHLIGHTS 2 CCP PROPERTY OPERATION REVIEW 3 HUAMAO PLACE OPERATION REVIEW 4 OUTLOOK & STRATEGIC PRIORITIES
Slide 4: 1H 2025 Results Highlights
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Slide 5: 1H 2025 Results Highlights
1H 2025 Results Highlights Spring REIT registered a 13.9% YoY decrease in net property income (NPI), primarily attributable to the loss in income following the sale of the UK Kwik Fit portfolio, and the pressures in the Beijing office market. Spring REIT achieved near-complete interest rate exposure
Slide 6: Financial Summary
Financial Summary Operating Results (in RMB million) 1H 2025 HoH Chg 2H 2024 HoH Chg 1H 2024 Revenue 322.56 (5.4%) 341.00 (5.7%) 361.47 Property operating expenses (85.91) (14.5%) (100.45) 15.8% (86.73) Net property income 236.64 (1.6%) 240.55 (12.4%) 274.74 Net property income margin 73.4% +2.9 ppt
Slide 7: Proven DPU Track Record
Proven DPU Track Record Maintained a steady distribution for unitholders amid challenging macroeconomic environment, with an annualized DPU yield of 8.8%1. (HK cents) 11.2 11.2 10.5 10.8 10.0 10.0 10.0 9.5 Flat HoH 8.9 9.0 9.0 7.6 7.6 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2019 2020 2021 2022 202
Slide 8: Capital Management
Capital Management Debt profile (notional amounts) Unhedged HKD loan of HKD190mn, 3.6% 96% of loans either hedged or at stable rate RMB loan under LPR, 13.8% RMB664mn Hedged HKD loan, 82.6% HKD4,305mn Weighted average cash interest rate 3.3% (vs 2H 2024: 3.5%; 1H 2024: 3.9%) p.a. Benchmark interest
Slide 9: CCP Property Operation Review
CCP PROPERTY OPERATION REVIEW
Slide 10: Beijing Leasing Market Condition
Beijing Leasing Market Condition • The market is transitioning from short-term price-driven incentives to a phase focused on underlying real demand amid continued uncertainty. • Competition among landlords was intense, with aggressive rent reductions and concessions offered to attract the dwindling
Slide 11: Beijing Future Grade-A Office Supply
Beijing Future Grade-A Office Supply • No new supply in CBD in 2025. • Of the 699,000 sqm GFA of new supply in 2026, 510,000 sqm will be located in the CBD area, representing for 4 properties in Zhongfu area, with 48% of this CBD supply designated for self-use. Grade-A office supply by year (sqm, GF
Slide 12: Comparison of Grade-A Office Markets across China
Comparison of Grade-A Office Markets across China • Beijing has highest office occupancy of 88%. All other reference cities have occupancy rate under 80% • Low new supply in Beijing in the next 4 years, only 1.9% p.a. of existing stock (vs avg. 7.5% p.a. of other reference cities) Grade-A office mar
Slide 13: The CCP Property: Financial Summary
The CCP Property : Financial Summary • Beijing office market has remained subdued, with limited new lettings and many existing tenants looking to cut costs or downsize. Most landlords focused on retaining their existing tenants through rent reductions and other tenant-friendly initiatives. • Propert
Slide 14: The CCP Property: Leasing Performance
The CCP Property : Leasing Performance • Average monthly unit rent decreased slightly by 1.7% HoH and 3.3% YoY in 1H 2025 owing to mild negative rental reversion • Average occupancy rate increased to 86.2% for 1H 2025 • Average lease expiry of existing leases (in GFA terms) as of 30 Jun 2025 was 783
Slide 15: The CCP Property: Diverse and High-quality Tenant Mix
The CCP Property : Diverse and High-quality Tenant Mix Tenants by industry Top 5 tenants As % of leased office GFA Tenants % of total leased GFA Epson 6.1% Education/ Technology media/sports/ Zhong De Securities 4.6% Business center and others 4% Financial institution/ Global Law Office 4.6% 23.2% 4
Slide 16: Huamao Place Operation Review
HUAMAO PLACE OPERATION REVIEW
Slide 17: Huizhou Retail Market Overview
Huizhou Retail Market Overview • Huizhou’s shopping mall industry has experienced robust growth, driven by high economic growth potential, ongoing urbanisation, consumption upgrading, expanding retail facilities, and continued government support. • 35 shopping malls in Huizhou with overall retail GF
Slide 18: Huamao Place in Huizhou: Financial Summary
Huamao Place in Huizhou : Financial Summary • Huamao Place in Huizhou delivered a steady performance for the reporting period. Total rental income and NPI increased by 0.3% and 14.4% HoH respectively. • Property operating expenses increased by 13.7% YoY, mainly attributable to increase in PM fee and
Slide 19: Huamao Place in Huizhou: Operations Summary
Huamao Place in Huizhou : Operations Summary • Continued to enhance Huamao Place’s positioning as a unique high-end lifestyle mall, further strengthening its reputation as a premier shopping and leisure destination • To differentiate the mall from competitors and reinforce its exclusivity, a variety
Slide 20: Huamao Place in Huizhou: Leasing Strategies
Huamao Place in Huizhou : Leasing Strategies Debut brands in Huizhou Sustainability VIP loyalty programme Tenant reconfigurations Green building Marketing Social media and events exposure 19
Slide 21: Huamao Place in Huizhou: Tenant Mix
Huamao Place in Huizhou : Tenant Mix Tenants by industry Top 5 tenants As % of leased GFA Tenants’ trade sector % of total leased GFA F&B 4.5% Others Tech and Automobiles 1.9% Lifestyle Entertainment Healthcare and Beauty 3% 3% Household 1.9% 11.3% 5% Food and Beverages Household 5% Household 1.5% 3
Slide 22: Outlook & Strategic Priorities
OUTLOOK & STRATEGIC PRIORITIES
Slide 23: Outlook & Strategic Priorities
Outlook & Strategic Priorities Beijing: Prioritize occupancy and deliver exceptional service to thrive in a subdued market • The Beijing office market is likely to remain subdued in 2025. Competition among landlords is expected to remain fierce as tenants prioritise cost-saving measures or seek high
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