Net income falls 5.4% at Champion REIT in 1H 2020 and other APAC REIT news

Champion REIT (2778) recorded a 5.4% fall in net property income to HK$1.19bn during the first half of 2020, compared to the same period last year. 

The value of its Hong Kong office and retail assets declined 11.3% to HK$71.9bn since December last year, with net asset value per unit falling 14.5%. 

The REIT set its distribution per share at HK$ 0.1229, down 7.7% from HK$ 0.1332 in 2H 2020. 

“Given the unfavourable outlook for all the properties in the portfolio, the trust is expected to continue to face downside risks in rental income and DPU in the second half,” the REIT said. 

“We will continue to enhance liability and treasury management to generate yields and enhance income. With quantitative easing taking place globally and the strong holding power of many sellers, attractive acquisition opportunities are limited. We will continue to adopt a prudent approach on investment opportunities with long-term growth potentials for unitholders. However, we are very cautious amidst the poor global economic conditions.” (Read more)

Champion REIT shares finished trading 0.74% higher at HK$4.07.

IndexChangeValue at close
S&P/ASX 200 A-REIT+0.96%1,257.00
S&P/ASX 200
-0.77%6,120.00
FTSE ST REITS -0.60%828.71
STI-1.29%2,527.92
Tokyo Stock Exchange REIT
+0.34%1,695.85
Nikkei 225
-1.00%22,880.62
Hang Seng REIT -0.61%5,495.58
Hang Seng-1.54% 24,791.39

Japan: Japan Excellent grows operating income to JPY 6.3bn  

Tokyo-listed Japan Excellent Inc. (8987) more than doubled its operating income to JPY 6.3bn in the first half of 2020, compared to the six months to end-December 2019. 

Revenue rose about 17% to JPY 12.7bn in 1H 2020, while net income jumped about 150% to JPY 5.6bn. 

The office J-REIT set distribution per share at JPY 2,960, up from JPY 2,918 in the previous half-year period.

Cash flow from operating activities surged to JPY 21.1bn in 1H 2020, up from JPY 7.5bn in 2H 2019.

In its 2H 2020 forecast, Japan Excellent expects to JPY 11.1bn in revenue and JPY 4.2bn in net income. (Read more)

Shares in Japan Excellent closed 1.37% higher at JPY 118,600.

Australia: Net profit falls 23% to A$983m at Dexus for FY20 

ASX-listed Dexus (DXS) reported a 23.3% year-on-year decline in net profit to A$983m during the 2020 financial year, according to its earnings. 

Funds from operations rose 7.1% YOY to A$730.2m or 66.7 cents per share, up from 66.3 cents. 

The A-REIT set distribution per security at 50.3 cents per share, up 0.2% from the year before. 

The company, which owns industrial, office and retail assets across Australia, maintained strong rent collections of 98% during FY20.

“Our immediate priorities are summarised across five key areas: assisting Australian businesses in returning safely to their workplaces, optimising our property portfolio composition, accelerating  opportunities to expand our funds management platform, continuing to work with our customers on the future of workspace, and progressing the city-shaping development pipeline,” said Dexus CEO Darren Steinberg. (Read more)

Learn more about Asia Pacific REITs:

REITS in AustraliaREITs in Thailand
REITs in JapanREITs in Taiwan
REITs in SingaporeREITs in Korea
REITs in Hong KongREITs in New Zealand
REITs in MalaysiaREITs in India
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Benn is a freelance journalist and the publisher of APAC Real Estate. He has reported for the Herald Sun, REFI Europe, S&P Global Market Intelligence, Leader Newspapers, and more.