- Abundant credit facilities in place for refinancing needs in 2025 - Langham Place Mall continued to outperform Hong Kong retail market, maintaining high occupancy rates - Langham Place Office Tower unveiled 'Six Dimensions Wellness Hub' programme to continue promoting it as a one-stop wellness hub - Earned the prestigious 'Global Listed Sector Leader' in the 2024 GRESB Real Estate Assessment
HONG KONG, Feb 19, 2025 - (ACN Newswire) - Champion Real Estate Investment Trust (stock code: 2778), the owner of Three Garden Road and Langham Place, announces its financial results for year ended 31 December 2024.
Summary of financial results
FY 2024
FY 2023
Change
Total Rental Income (HK$ million)
2,185
2,312
- 5.5%
Net Property Income (HK$ million)
1,820
1,946
- 6.5%
Distributable Income (HK$ million)
958
1,122
- 14.6%
Distribution per unit (HK$)
0.1422
0.1683
- 15.5%
31 Dec 2024
31 Dec 2023
Change
Gross Value of Portfolio (HK$ million)
60,104
62,950
- 4.5%
Net Asset Value per unit (HK$)
7.16
7.72
- 7.3%
Gearing Ratio
23.7%
22.8%
+ 0.9 pp
Ms. Christina Hau, Chief Executive Officer (Left) & Ms. Amy Luk, Investment and Investor Relations Director (Right)
Overview
Amid the volatile macro environment, the occupancy of the Trust’s properties portfolio demonstrated resilience in 2024. While tenants’ sales of Langham Place Mall continued to outperform the market in 2024, office rental remained under pressure in view of the poor demand and supply situation. As a result, total rental income of the Trust decreased by 5.5% to HK$2,185 million. Net property income dropped 6.5% to HK$1,820 million. The higher-for-longer interest rate environment remained unfavourable for the Trust. The Trust recorded a drop in distributable income by 14.6% to HK$958 million and distribution per unit (“DPU”) decreased by 15.5% to HK$0.1422.
Three Garden Road
Despite the sluggish momentum of the overall Central Grade A office leasing in 2024, occupancy of Three Garden Road continued to demonstrate resilience and was 82.6% as at 31 December 2024, similar to end of 2023. Rental income dropped 7.4% to HK$1,132 million (2023: HK$1,222 million) as a result of negative rental reversion.
Langham Place Office Tower
The property remains an enviable lifestyle and wellness hub with lifestyle tenants accounting for 67% of the area as at 31 December 2024. Occupancy stood at 87.2% as at 31 December 2024. Rental income declined by 7.3% to HK$324 million (2023: HK$350 million). The “Six Dimensions Wellness Hub” programme was launched to continue promoting it as a one-stop wellness hub and cultivate prospects for medical and wellness tenants.
Langham Place Mall
Langham Place Mall continued to outperform the market. Occupancy of the mall maintained a high level at 99.3% as at 31 December 2024 (31 December 2023: 98.6%). Tenants’ sales of the mall declined by 4.3% in 2024, compared with a 7.3% drop in Hong Kong retail sales. Overall, rental income of the mall dropped slightly by 1.6% to HK$728 million (2023: HK$740 million).
Distribution
Distributable income of the Trust dropped 14.6% to HK$958 million (2023: HK$1,122 million) and DPU for 2024 amounted to HK$0.1422 (2023: HK$0.1683). Based on the closing unit price of HK$1.73 recorded on 31 December 2024, the total DPU represented a distribution yield of 8.2%.
Asset Value
The appraised value of the Trust’s property portfolio was HK$60.1 billion as at 31 December 2024, compared with HK$62.9 billion as at 31 December 2023.
Sustainability
We have achieved the prestigious title of “Global Listed Sector Leader” and the highest five-star rating in the 2024 GRESB Real Estate Assessment. Three Garden Road has secured two Platinum certifications in Leadership in Energy and Environmental Design (LEED) and WiredScore, marking it the first “Quadruple Platinum” Grade A existing office building in Hong Kong. During the year, we launched our inaugural “Champion REIT ESG Week”, collaborating with more than 20 partners and organisations from various sectors. Expanding upon the well-received Green Champion Challenge last year, we took a step forward by organising the EcoChampion Pledge. Additionally, in partnership with social enterprise V Cycle and more than 40 beauty tenants, we initiated the Langham Beauty’s Green Vitality Beauty Empties Recycling initiative at Langham Place Mall.
Outlook
Looking ahead, the macro economy outlook appears to be uncertain amid growing global geopolitical tensions. The unfavourable competitive operating landscape of the office market should continue to impact market rental in 2025. As a retail pioneer, Langham Place Mall will endeavour to provide one-of-a-kind experience for our patrons and will celebrate its 20th anniversary through a series of novel initiatives. We will remain agile while deepening collaboration with our stakeholders under the dynamic market environment.
About Champion REIT (stock code: 2778)
Champion Real Estate Investment Trust is a trust formed to own and invest in income producing office and retail properties. The Trust focuses on Grade A commercial properties in prime locations. It currently offers investors direct exposure to nearly 3 million sq. ft. of prime office and retail floor area. These include two Hong Kong landmark properties, Three Garden Road and Langham Place, as well as a joint venture stake in 66 Shoe Lane in Central London. The Trust has been awarded the top five-star rating by GRESB for two consecutive years since 2023.
