According to the report released by Citigroup, due to the long-term negative performance of office buildings and the consistently high interest rates, the DPU of Champion Real Estate Investment Trust (02778) is expected to fall by 13% in fiscal year 2024. The DPUs of fiscal year 2025 and 2026 are expected to fall by 4% each. In view of the continuous decline of DPU, the bank has lowered the target price for Champion Real Estate Investment Trust from HKD 1.59 to HKD 1.5, and given a "sell" rating.

The bank expects that the DPU per unit will fall by 13% compared to the previous year in fiscal year 2024, mainly due to the continued negative growth of rental income from Garden Road No.3, and the lease renewal in 2025 is the key factor. The vacancy rate of Langham Place Office Building has increased by 6.2 percentage points to 12.9%, affected by the slow recovery of beauty and tourism industries, and some tenants have reduced their scale. The average financial cost in the first half of this year was as high as 4.2%, and the proportion of floating-rate loans was as high as 65%. The performance of Langham Place Mall is resilient, with high basic rent and tenant restructuring.