Zhongtong Financial APP learned that UBS released a research report stating that Champion Real Estate Investment trust (02778) performance in the first half of the year was in line with expectations and benefited from the good performance of joint ventures. The mid-term distribution per fund unit decreased by 13% to 8.09 cents year-on-year, higher than the bank's forecast. The dividend payout ratio is maintained at 90%. Income and rental income also roughly matched expectations, maintaining a "neutral" rating, and the target price raised from HKD1.61 to HKD1.74.

The report stated that the leasing rate of Langham Place office building during the period was 87.1%, a significant decrease of 6.2 percentage points from the end of last year's 93.3%; and the leasing rate of Garden Road No.3 office building also decreased from 82.8% at the end of last year to 82.3%, with a year-on-year decrease in overall rental income of 9%, which is also a drop of 4% compared to the second half of last year. Due to the current rental price of only HKD70-80 per square foot in the same area, there is a certain gap compared to the rental price of HKD80 per square foot for the expiring lease. Therefore, UBS Group predicts that the trend of rent decline will continue.