Maintains Operational Stability with Full-Year Revenue Surpassing RMB2 Billion in 2024
- Manager Proactively Addresses Market Changes and - Implements Various Measures to Ensure Stable Occupancy Rate
HONG KONG, Mar 17, 2025 - (ACN Newswire) - Yuexiu Real Estate Investment Trust ("Yuexiu REIT", together with Yuexiu REIT Asset Management Limited, collectively known as the “REIT”; stock code: 405) announced its annual results for the year ended 31 December 2024.
Yuexiu REIT Management Team: Chairman, Chief Executive Officer and Executive Director Mr. LIN Deliang (third from the left), Deputy Chief Executive Office and Executive Director Ms. OU Haijing (second from the left), Chief Financial Officer Mr. KWAN Chi Fai (first from the left), and Investor Relations Director Mr. JIANG Yongjin (fourth from the left)
2024 Annual Results Highlights: - Overall operation was stable, with total revenue of RMB2,032 million (2023: RMB2,087 million). - Net property income stood at RMB1,445 million (2023: RMB1,475 million). - As at 31 December 2024, the overall occupancy rate of the properties was 84.5%, which is well in line with the previous year. - The Manager has partially waived the manager’s fees to mitigate the impact of the economic downturn on the REIT’s performance - The final distribution to the Unitholders for the period will be approximately RMB0.0254, equivalent to HK$0.0275. Distribution per Unit for the year will be approximately RMB0.0625, equivalent to HK$0.0680. Distribution yield is 7.08% per Unit for the year. - To enhance the REIT’s financial flexibility, the distribution ratio for the period from 1 July 2024 to 31 December 2024 has been adjusted to 90%, resulting in an overall full-year distribution ratio reaching approximately 96%.
Guangzhou International Finance Center (GZIFC): - Operating revenue of the GZIFC complex was RMB1,008 million, accounting for 49.6% of the REIT’s total revenue. - The office building of GZIFC successfully renewed leases with a number of quality tenants, with a renewal rate of more than 80% achieved for the year. - Newly introduced brands to the GZIFC Shopping Mall which recorded a year-on-year increase in sales of more than 15% as compared with the existing brands, leading to a 7.4% increase in annual customer flow as compared with the same period last year. GZIFC Shopping Mall recorded a high occupancy rate of 98.3% as at the end of the year, which aligns favourably with the previous year. - The average occupancy rate of Four Seasons Hotel and Ascott Serviced Apartments recorded increases of 1.6 percentage points and 0.3 percentage point, respectively, with the annual revenue of the Apartments reaching a record high.
Yuexiu Financial Tower: - Yuexiu Financial Tower recorded operating revenue of approximately RMB362 million, with the occupancy rate at 83.7%. - Successfully renewed leases for more than 26,000 sq.m. for the year, achieving a renewal rate of more than 60%, which contributed to the continuous improvement in the tenant structure.
Proactive Management of Financing Risk and Effective Stabilisation of Financing Cost - With regard to the 5-year bonds of HK$1.12 billion, the 3-year syndicated loan of HK$4.8 billion, and the remaining portion of the 3-year syndicated loan of HK$1.2 billion, all due in 2024, the Manager obtained a short-term loan of RMB530 million, a 3-year loan of HK$1.12 billion, a 3-year loan of RMB2.8 billion, and a 3-year HK$1,805 million equivalent HKD/RMB loan during the year, to refinance the maturing loans so as to ensure effective monitoring of liquidity risk. - Taking advantage of the position of the RMB interest rate market, the Manager continued to research various financing instruments and actively adjusted the financing structure in order to minimise the impact of the interest rate market on the operating results of Yuexiu REIT. A total of over RMB4.5 billion in loans were obtained in February and December 2024 to refinance offshore HKD floating rate loans, hence, the overall financing costs of Yuexiu REIT have been effectively reduced. - While maintaining appropriate floating rate exposure, the Manager proactively adjusted the financing structure to minimise the impact of the interest rate market. At the end of 2024, the overall interest rate of Yuexiu REIT’s financing was 4.16% per annum, representing a decrease of 58 basis points from 4.74% at the beginning of the year; the average interest payment rate for the year was 4.53%, representing a year-on-year decrease of 7 basis points from 4.60% in 2023. - The Manager adjusted the financing structure and timely used foreign exchange hedging tools at a reasonable cost to monitor foreign exchange exposure, with the proportion of RMB financing rising from 39% at the beginning of 2024 to 60% at the end of the year.
Mr. LIN Deliang, Chairman, Chief Executive Officer and Executive Director of Yuexiu REIT, said, "China faced a series of macroeconomic challenges in 2024, including insufficient demand, weak consumption and an ongoing downturn in investments. In the face of operating pressure, the Manager has nonetheless remained firmly confident, strengthening risk management, formulating asset management strategies based on a thorough assessment of the actual situation, and making every effort to stabilize operating fundamentals. Specifically, for office buildings, the Manager increased the supply of furnished units to meet market demand, and successfully introduced a number of quality tenants, thereby effectively shortening the business solicitation cycle. For retail shopping malls, the Manager introduced emerging popular brands, while at the same time boosting customer flow and consumption by organising activities with diverse themes. For hotels, the Manager formulated flexible pricing strategies to seize market share and enhance the reputation of their catering facilities. As for the specialised market, the Manager helped boost tenant sales by tapping multiple channels, which facilitated the steady recovery of both rental levels and occupancy rates. Through such effective asset management efforts, the Manager has taken full advantage of favourable policies and market opportunities, and effectively secured the operating income for Yuexiu REIT during the year, even though high interest rates weakened overall distribution”
Guangzhou International Finance Center (GZIFC) GZIFC took a leading position in terms of tenant loyalty and market competitiveness among peers with its good tenant structure and supportive service system. This year, the office building component of GZIFC prioritised occupancy stability and successfully renewed leases with several quality tenants under the “one distinctive policy for each key customer” strategy, achieving a renewal rate of over 80% for the year, thus effectively securing high-quality customer resources. To match the market demand, GZIFC launched small- and medium-size furnished units with a total area of approximately 7,200 sq.m., of which more than 80% were rented out within the year. During the year, GZIFC enabled two renowned law firms and an investment company to expand their existing lease areas by more than 3,800 sq.m. in aggregate, and introduced quality new tenants to take up more than 5,000 sq.m.. The occupancy rate of the office building of GZIFC was 85.3% at the end of the period, which is well in line with the previous year.
During the year, the retail shopping mall GZIFC Shopping Mall actively rationalized its brand portfolio and optimized the tenant structure, introducing new merchants such as bakeries, fast food chains, high-end cafes and trendy snack shops to address the demand for business and dining convenience. Newly introduced brands recorded a year-on-year increase in sales of more than 15% as compared with the existing brands, effectively boosting the sales of the shopping mall. GZIFC Shopping Mall also organised a series of activities which have gained tremendous popularity, including its 8th anniversary celebration event, the “Wandering Acquaintance Festival” summer programme, and the exclusive joint activities of The Phantom of the Opera - Guangzhou Station, staged at the Guangzhou Opera House. By doing so, GZIFC Shopping Mall has activated the scene atmosphere and attracted customer traffic, leading to an 7.4% year-on-year increase in annual customer flow. GZIFC Shopping Mall recorded a high occupancy rate of 98.3% at the end of the period, also well in line with the previous year.
In 2024, the average occupancy rate of Four Seasons Hotel reached 81.5%, representing a year-on-year increase of 1.6 percentage points. The average room rate was RMB2,136, representing a year-on-year decrease of 4.6%. By formulating flexible pricing strategies and capitalising on the market demand from the international trade fairs and holiday economy, Four Seasons Hotel has seized a share of the high-end market. The revenue per available room (RevPAR) was RMB1,740, and the RevPAR competitive index of the hotel was 114.8, maintaining a dominant position among major hotel competitors for the eleventh consecutive year. Moreover, the Chinese restaurants of Four Seasons Hotel have won multiple Michelin awards. Yu Yue Heen retained its title of “one Michelin star” restaurant in Guangzhou, CATCH was awarded the 2024 “Michelin Guide Selected Restaurant (Plate Award)” in Guangzhou, and the Chinese Executive Chef won the 2024 “Michelin Guide Young Chef Award” in Guangzhou.
In 2024, the average occupancy rate of Ascott Serviced Apartments reached 90.5%, representing a year-on-year increase of 0.3 percentage point. The average room rate was RMB1,119, representing a year-on-year increase of 0.1%. The RevPAR was RMB1,013, representing a year-on-year increase of 0.5%, and the RevPAR competitive index reached 140, maintaining a high level among competing apartments. By accurately interpreting the changing trends of its customers, and particularly the long-stay needs of its core customer groups, the Apartments’ long-term rental business has achieved a renewal rate of nearly 50%. Meanwhile, as the rise in inbound foreign tourists led to an increase in the number of short-stay customers, annual revenue has hit a record high. Moreover, the Apartments have ranked first both in operating revenue and gross operating profit (GOP) in Ascott China for nine consecutive years since 2016.
Yuexiu Financial Tower Yuexiu Financial Tower successfully renewed leases for more than 26,000 sq.m. for the year, achieving a renewal rate of over 60%. To enhance the attractiveness of its products, Yuexiu Financial Tower proactively analysed the needs of potential customers and launched furnished units with a total area of approximately 14,000 sq.m. for the year, of which more than 90% were successfully rented out within the year, effectively shortening the business solicitation cycle and supporting rental levels. The newly introduced tenants included a major domestic law firm and four premium financial enterprises, which contributed to the ongoing improvement in tenant structure. For tenants who had significant reductions in rental costs, Yuexiu Financial Tower successfully retained six such tenants upon expiration of their leases by employing such strategies as relocating to another floor or reducing the leased area. This reflected the business solicitation team’s ability to take a pragmatic approach. Yuexiu Financial Tower recorded an occupancy rate of 83.7% at the end of the year, representing a year-on-year decline of 4.8 percentage points.
White Horse Building During the year, White Horse Building continued to consolidate its position as the “China Brand Apparel International Trading Center”, and successfully renewed leases with existing customers as well as introduced several quality tenants. The occupancy rate of White Horse Building climbed to 97.1% at the end of the year, a new five-year high, while revenue grew by 12.1% year on year. Together with its 11 original premium apparel brands, White Horse Building participated in the 2024 China International Fashion Fair. It held the 2024 Guangzhou Baima Garment Market Procurement Festival, and made its debut at the 2024 China (Guangzhou) International Fashion Industry Conference, artfully incorporating elements of the 2025 National Games and inviting sports champions and elites to visit the stores. It also took the initiative to explore new digital models and promote the construction of a smart market. During the year, it officially launched the Baima Smart Selection platform, on which 276 brands have been introduced so far. At the same time, it utilised technologies such as AI fitting, VR shopping and live broadcasting to create the second performance growth curve for online transactions.
Fortune Plaza and City Development Plaza Fortune Plaza introduced many quality tenants during the year, including a leading daily necessities company, thus further optimising its tenant structure. The business solicitation team seamlessly introduced a technology company to take up the whole floor vacated by a tenant who did not renew its lease, and successfully renewed leases with many quality tenants, including an international investment company with a petrochemical industry background. Fortune Plaza recorded an occupancy rate of 92.4% at the end of the year, well in line with the previous year. During the year, City Development Plaza successfully introduced a government-owned sports services agency, which not only improved the occupancy rate, but also expanded its reputation in the industry. During the year, City Development Plaza renewed leases with three quality tenants for a total of approximately 2,300 sq.m., and the occupancy rate climbed to 92.7%, representing a year-on-year increase of 4 percentage points.
Victory Plaza Victory Plaza actively stabilized the sales of its anchor tenant “Uniqlo” Victory Plaza Shop, with the number of customers visiting the shop increasing by 4% year-on-year, and its annual sales ranked first in China once again. The mall’s customer flow for the year increased by 5% year on year as events with diverse themes were organized jointly with IKEA, Sleep Hub, Book Center, Information Times, etc. It also introduced two branded aesthetic medicine companies to further enrich the consumption scenarios. Victory Plaza recorded a newly contracted area of more than 1,300 sq.m. and renewed leasing area exceeded 1,200 sq.m. for the year, with an occupancy rate of 96.6%, representing a year-on-year increase of 3.1 percentage points.
Shanghai Yue Xiu Tower Shanghai Yue Xiu Tower launched furnished products to meet tenants’ need for easy occupancy, and recorded a newly contracted area of more than 9,900 sq.m. for the year, the largest since 2020. In order to improve the risk resilience of its tenant structure, Shanghai Yue Xiu Tower actively introduced certain quality tenants from the commercial services and information technology sectors during the year, including a renowned new energy vehicle joint venture and a well-known joint venture that provides digital technology services. Owing to the lease renewal plans formulated in advance, which are based on the principle of “one distinctive policy for each key customer”, Shanghai Yue Xiu Tower achieved a renewal rate of over 70%, and the occupancy rate was 89.5% at the end of the year, corresponding well with the previous year.
Wuhan Properties Wuhan Yuexiu Fortune Centre continued to promote the renovation and adjustment of vacant units and offered more small- and medium-size products, which drove the newly contracted area to over 27,000 sq.m. for the year, and a number of quality tenants were introduced as well. More than 19,000 sq.m. of leasing area were renewed with certain outstanding enterprises during the year, including a top 500 liquor enterprise in China, a top 500 dairy company in China, and the Hubei branch of a global leading elevator company, leading to a renewal rate of more than 60%.
Starry Victoria Shopping Centre continued to optimise different business formats for its portfolios. By tapping deeply into emerging brands that are popular among consumers, it enriched the range of children-related amenities and activated the overall retail atmosphere. The shopping mall recorded a 21% year-on-year increase in customer flow and an 8% year-on-year sales increase for the year. The business solicitation team successfully retained five merchants with large leasing areas, and engaged new tenants in advance to seamlessly take up expiring areas. The newly contracted area exceeded 6,600 sq.m., and the occupancy rate was 90% at the end of the year, which aligns favourably with the previous year.
Hangzhou Victory Hangzhou Victory successfully renewed leases for more than 10,000 sq.m., including with a local internet technology company from Zhejiang, and the Zhejiang branch of a provincial state-owned enterprise from Shanxi Province. Hangzhou Victory introduced a number of quality tenants during the year, including a biotech company, an asset management company, and a Fortune 500 construction company. Hangzhou Victory maintained a high occupancy rate of 97.7% at the end of the year.
Prospects The global environment remains complex and challenging, with increasing geopolitical uncertainties and growing trade concerns. While economic growth and inflation have slowed in the United States, a wait-and-see sentiment has prevailed toward the pace of interest rate cuts by the US Federal Reserve. Moreover, the rates on the US dollar and Hong Kong dollar are expected to remain at high levels for a certain period of time. Regarding China, it regards economic stability as its top priority, hence has adopted a moderately loose monetary policy to boost the economy, and vigorously stimulated investment and consumption to expand domestic demand. The RMB interest rates remain at a relatively low level. New quality productive forces are growing at an accelerated pace and are expected to create new industrial momentum.
The Manager will maintain a prudent and optimistic stance, and implement positive and pragmatic operating strategies to manage risks proactively, in an effort to generate stable returns for the Unitholders. In terms of asset management, the Manager will keep abreast of economic developments and trends and implement proactive, reasonable and flexible leasing strategies, while at the same time integrating the concepts of low-carbon, green, intelligent, and healthy practices into all aspects of business operations. By continuously reviewing the growth potential of the asset portfolio, the Manager will be able to keenly seize potential investment opportunities that emerge, further enhance the competitiveness of the portfolio, and promote sustainable development.
In terms of financing management, in light of rising foreign interest rates and the relatively low value of the RMB, the Manager will continue to examine and make reasonable adjustments to its financing structure based on expectations about market developments. It will also introduce low-cost RMB financing through various RMB financing channels to seek more favourable financing costs to offset interest rate risk.
With respect to renovation projects, the Manager is planning to invest primarily in asset appreciation projects for GZIFC, Yuexiu Financial Tower, White Horse Building, Fortune Plaza, City Development Plaza, Shanghai Yue Xiu Tower, Wuhan Yuexiu Fortune Centre, and Hangzhou Victory, to preserve the value and promote the appreciation of these properties, as well as ensure their sound operation.
About Yuexiu Real Estate Investment Trust Yuexiu Real Estate Investment Trust ("Yuexiu REIT") was listed on the Hong Kong Stock Exchange of Hong Kong Limited on 21 December 2005 and is the first listed real estate investment trust only investing in properties in the People's Republic of China (the "PRC") in the world. The current property portfolio comprises ten high quality properties, namely Guangzhou International Finance Center, White Horse Building, Fortune Plaza, City Development Plaza, Victory Plaza, Yuexiu Financial Tower in Guangzhou, Yuexiu Tower in Shanghai, Wuhan Properties in Wuhan (including Wuhan Yuexiu Fortune Centre and Starry Victoria Shopping Centre), Victory Business Centre in Hangzhou and Yuexiu Building in Hong Kong, with a total area of ownership of approximately 1.184 million sq.m. All properties are located in the central business district of Guangzhou, Shanghai, Wuhan, Hangzhou and Hong Kong respectively. The categories of the properties include Grade-A offices, commercial complexes, retail business, hotel, serviced apartments and professional clothing market etc.
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