BOCOM Intl published a report indicating that Fortune Real Estate Investment Trust (00778.HK) experienced a slight decrease in revenue in the first half of the year compared to the second half of last year, down 0.6% to 0.872 billion yuan. Net property income increased by 0.9% to 0.633 billion yuan compared to the second half of last year. DPU per unit decreased by 19.5% year-on-year to 18.23 cents in the first half of the year, roughly in line with the market's expectations for a full-year DPU of 36 cents.

Fortune maintained resilience in its Hong Kong retail portfolio in the first half of the year, with an increased occupancy rate of 0.4 percentage points to a high level of 94.8%, with 11 out of 17 malls having occupancy rates of over 97%. With the completion of the WOO asset enhancement project, Fortune expects the overall occupancy rate to increase further in the second half of the year.

In addition, Fortune's overall average interest cost for the first half of this year was 4.1%, which remained the same as the second half of 2023. The company expects it to drop below 4% in the second half of the year.

The bank believes that Fortune's first-half performance was stable and roughly in line with the market's expectations. In the face of consumption from northward migration, Fortune's Hong Kong retail portfolio, which mainly consists of essential consumer goods, maintains resilience and can maintain high and stable occupancy rates. Fortune's first-half dividend per share was 18.23 cents, yielding an annualized return of 9.7% based on the closing price of HKD 3.77 on Tuesday, the 6th.