Implement Assets Management Policy, Hit New Record in Operating Indices
On February 13, Yuexiu Real Estate Investment Trust (HK.00405 Yuexiu REIT) hosted in Shangri-La Hong Kong the 2014 Annual Results Announcement, which was attended by Yuexiu REIT Chairman Liu Yongjie and Executive President Lin Deliang. Also present at the function were 24 domestic and overseas media and 74 fund managers and analysts.
In 2014, Yuexiu REIT registered a wonderful performance and made new record in operating indices. The total operating revenue for the year is RMB1.571,000,000, 14.6% more than the previous year. The net profit is RMB928,000,000, recording a dramatic rise of 77.1% over the previous year. Each fund unit enjoys a dividend of RMB0.2367, equivalent to HKD0.2986, for the year, 9.7% more than the previous year. As per the closing price of HKD3.89 at the end of the year, the dividend ratio per fund unit is about 7.7%.
In 2014, the IFC operating results grew fast and realized RMB961,000,000 inproperty maintenance income, which is 19% more than the previous year and accounts for 61.1% of the total fund income. In particular, the occupation rate of the office building rose to 90.8%, the unit rent was RMB227 at the end of the year, which was benchmark on the market, and quality tenants such as the UK Consulate, China-Britain Business Council, Youngy Investment and Boxi Furniture moved in. The price of available hotel rooms rose to RMB1242, 27.7% higher than the previous year, and the average occupation rate for the year was 69.4%, 15.5% higher than the previous year. The guestroom income, restaurant income, average room rate and available room rate all ranked first among competing hotels in Guangzhou. For the apartments, the average occupation rate for the year was 82.4%, 38.5% higher than the previous year. The average room rate and available room rate ranked first among competing service apartments. The other five projects maintained high-level operation. For example, Baima Building made a new record of RMB593 inmonthly rent. By hardware reconstruction, image uplifting, tenant adjustment, brand incubation and marketing innovation, the project stepped up transformation and upgrading to consolidate its benchmark position on the market. The Victory Plaza has finished the first stage of commercial adjustment. UNIQLO has opened there its South China flagship shop, related tenants have all moved in, VT101 image is successfully upgraded, property rent rose, the year-end occupation rate was 99.4%, and the unit rent at the end of the period was 27.4% higher.
The fund debt structure for the year is further optimized and the domestic loan balance drops from 47% to 40.6%. The total financing cost further reduced to 4.46% from 4.77%, the figure at the beginning of the year.
After the announcement, major domestic and overseas financial media published positive reports on the Internet and TV, mostly under the title of “dramatic growth in performance”. Meanwhile, analysts from Morgan Stanley, CitiBank and Macquarie pointed out that Yuexiu REIT performed wonderfully in 2014 beyond all expectations and they would immediately update and release research reports.
