Champion Real Estate Investment Trust (2778) H2 2025 earnings summary

Executive summary

• Celebrated 20th anniversary with milestones in sustainability-linked loans, property enhancements, and proactive asset management.

• Total rental income declined 9.0% year-over-year to HK$1,988 million, with net property income down 11.4% to HK$1,613 million.

• Distributable income fell 10.4% to HK$859 million, and distribution per unit dropped 11.2% to HK$0.1263.

• Occupancy remained resilient across properties, with Langham Place Mall at 99.3% and Three Garden Road at 81.6%.

• Sustainability initiatives received top industry recognition, including a five-star GRESB rating and multiple ESG awards.

Financial highlights

• FY25 total rental income: HK$1,988 million (down from HK$2,185 million in FY24).

• Net property income: HK$1,613 million, down 11.4% year-over-year.

• Distributable income: HK$859 million, down 10.4% year-over-year.

• Distribution per unit: HK$0.1263, down 11.2% year-over-year; yield of 5.0% based on year-end price.

• Portfolio value stood at HK$56.2 billion as of 31 Dec 2025.

Outlook and guidance

• Plans to solidify Three Garden Road as a top wealth management destination and diversify Langham Place Office tenancy.

• Retail strategy focuses on capturing tourist growth, refining tenant mix, and enhancing experiential offerings.

• Will explore broadening lender base and maintain balanced fixed-rate debt.

• Proactive leasing and marketing strategies will continue to optimise property performance.

• Office rents may take time to recover due to ample supply; negative rental reversion impact expected to persist.