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Yuexiu Real Estate Investment Trust (Yuexiu REIT) recently announced their interim results for the six months ended 30 June 2023. Total revenue has grown to RMB1,061 million, representing a 12.4% year-on-year increase. This gradual success has come from the numerous projects Yuexiu REIT has invested in, with properties across five cities.
The star of these investments has been their Guangzhou International Finance Center (GZIFC). Rich in high quality tenants, it has seen a total revenue of RMB503.8 million accounting for 47.4% of the REIT’s total revenue for the period. The GZIFC Shopping Mall has seen a 24% customer traffic increase and a 13% rise in sales. Meanwhile the hotel and serviced apartments have seen steady increases in occupancy rate and average room rates.
Yuexiu Financial Tower too has tapped into potential demand for offices and is committed to securing high-quality tenants, with its operating revenue reaching RMB200.2 million, accounting for 18.9% of the REIT’s total revenue. To ensure effective control of liquidity risk, Yuexiu REIT has also withdrawn the RMB4 billion of cross-border direct loans in June to refinance the maturing financing during the year.
To face the challenging post-pandemic economic environment, Yuexiu REIT is also committed to creating good results for unitholders. Victory Plaza has implemented flexible leasing policies, whilst Fortune Plaza and City Development Plaza have both undergone successful product transformations resulting in higher sell-through rates. White Horse Building and Shanghai Yue Xiu Tower have also both increased their occupancy rates to above 90% in the first half of 2023.
The Manager has declared a distribution of approximately RMB0.0541 per unit, equivalent to approximately HK$0.0590 to unitholders, in the 2023 Interim Period. This represents an annualized distribution yield of 7.07%.
Yuexiu REIT are committed to creating an optimized portfolio by providing unique rental products and services. With innovative strategies, active investment and optimized product optimization, Yuexiu REIT are striving to bring long-term commercial value and improved returns for its unitholders