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Yuexiu REIT Maintains Overall Operational Stability, Achieves Revenue of Over RMB966 Million

News Provided by ACN Newswire2025-08-14

HONG KONG, Aug 14, 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 interim results for the six months ended 30 June 2025.

Yuexiu REIT Management Team: Chairman and Non-Executive Director Mr. JIANG Guoxiong (center), Executive Director and Chief Executive Officer Ms. OU Haijing (left), and Chief Financial Officer Mr. KWAN Chi Fai (right)

2025 Interim Results Highlights:
- Overall operation was stable, with total revenue of RMB966 million (corresponding period of 2024: RMB1,034 million).
- As at 30 June 2025, the overall occupancy rate of the properties was 82.2% (corresponding period of 2024: 84.0%).
- The average financing cost was 3.33%, representing a decrease of 83 basis points from the beginning of the year. Excluding exchange loss, financing expenses decreased by 13.5% year-on-year.
- Interim distribution of approximately RMB0.0333 per unit, equivalent to approximately HK$0.0366. This represents an annualized distribution yield of 8.42%.

Guangzhou International Finance Center (GZIFC):
- Operating revenue of the GZIFC complex was RMB486 million, accounting for 50.3% of the REIT’s total revenue.
- Its office building introduced a Fortune Global 500 company, the occupancy rate was 82.6%, and the renewal rate was 70%.
- GZIFC Shopping Mall had a high occupancy rate of 96.4% during the period.
- Four Seasons Hotel Guangzhou achieved a 1.1-percentage-point year-on-year increase in average occupancy rate with record room revenue for the period, while Ascott Serviced Apartments GZIFC recorded a 1.8-percentage-point rise in average occupancy and similarly reached historic highs in revenue.

Yuexiu Financial Tower:
- Yuexiu Financial Tower recorded operating revenue of approximately RMB165 million, representing 17.1% of the REIT’s total revenue. The occupancy rate was 82.1%.
- The tenant structure continued to improve, with new introduction of quality tenants such as a Fortune Global 500 company and a futures company with a market value exceeding RMB10 billion.

Proactive Management of Financing Risk and Effective Stabilization of Financing Cost
- With regard to the short-term loan of RMB530 million and the 5-year syndicated loan of HK$2.1 billion, both due in the first half of 2025, and other loans which are due within the year, the Manager in the first half of 2025 renewed the short-term loan of RMB530 million, obtained offshore loan of RMB1.7 billion and issued dim sum bonds of RMB1 billion for the refinancing and early repayment of the maturing loans so as to ensure effective monitor on the liquidity risk.
- The Manager introduced a total of RMB3.23 billion in loans in the first half of 2025 to refinance offshore HKD floating rate loans, taking advantage of the relatively low-cost of RMB financing to proactively adjust the financing structure, thereby minimizing the impact of the interest rate market. At the end of the first half of 2025, the financing interest rate exposure of Yuexiu REIT was approximately 14%, narrowing by 12 percentage points from 26% at the beginning of the year; the average financing cost was 3.33%, representing a decrease of 83 basis points from 4.16% at the beginning of the year; the average interest payment rate for the first half of the year was 3.92%, representing a year-on-year decrease of 64 basis points. Excluding the exchange loss, the finance expenses amounted to approximately RMB402 million, representing a year-on-year decrease of 13.5%.
- As at the end of June 2025, Yuexiu REIT had RMB financing of approximately RMB14,795 million, accounting for 72% of total financing (corresponding period of 2024: RMB financing of approximately RMB8,404 million, accounting for 41% of total financing).

Mr. JIANG Guoxiong, Chairman and Non-Executive Director of Yuexiu REIT, said, "In the first half of 2025, against the backdrop of global trade volatility and slowing economic growth, China's GDP achieved steady growth of 5.3%, yet corporate expansion remained cautious and slow; retail consumption was weak, and average daily rate of hotel and apartment was under pressure. In order to effectively deal with the headwinds in the industry, we took strategic actions to secure market share by renewing leases in advance, investing in asset appreciation projects to enhance product competitiveness, and effectively stabilizing the fundamentals of operations, which effectively supported the revenue of Yuexiu REIT for the Interim Period. Meanwhile, lower financing cost is beneficial to the distributions.”

Guangzhou International Finance Center (GZIFC)
GZIFC achieved positive growth in both customer flow and conversion rates through product enhancement and operational optimisation, with a newly contracted area of 13,133 sq.m.. The newly launched 4,235 sq.m. of furnished units recorded an absorption cycle of only about 19 days, with an absorption rate close to 90%. Quality tenants introduced include a Fortune Global 500 company, a leading global shipping company, and a renowned Internet-based culture, sports and entertainment company, taking up more than 2,200 sq.m. in aggregate. In addition, the project recorded a renewed leasing area of 9,099 sq.m. and a renewal rate of 70%, retaining quality tenants including two Fortune Global 500 companies and a foreign consulate. GZIFC was selected as one of the Top 30 companies in the “Performance Index - 2025 Commercial Property Operation Performance” by Guandian.

GZIFC Shopping Mall actively created digitalized consumption scenarios, advanced the pilot implementation of the local lifestyle platform “YueXiu Club”, which now covers 12 merchants, while attracting customers through multiple channels such as Dianping and UnionPay QuickPass platforms. Newly contracted area and renewed leasing area totaled 5,734 sq.m., with a renewal rate of 97% and the occupancy rate of 96.4%. During the period, it was announced that China Duty Free Group (CDFG) will set up a store in GZIFC Shopping Mall, which will be the first and currently the only downtown duty-free store in Guangzhou and is expected to open in the third quarter.

Room revenue of Four Seasons Hotel Guangzhou and revunue of Ascott Serviced Apartments GZIFC reached a record high for the period, respectively. During the period, the average occupancy rate of Four Seasons Hotel Guangzhou reached 80.1%, representing a year-on-year increase of 1.1 percentage points. The average room rate was RMB2,201, similar to the same period last year. The revenue per available room (RevPAR) was RMB1,762, representing a year-on-year increase of 0.7%. The RevPAR competitive index was 111.7, maintaining a leading market position among luxury hotel competitors. The average occupancy rate of Ascott Serviced Apartments GZIFC reached 92.3%, representing a year-on-year increase of 1.8 percentage point and 9.7 percentage points higher than that of serviced apartment competitors. The average room rate was RMB1,128, similar to the same period last year. The RevPAR was RMB1,041, representing a year-on-year growth of 1.5%. The RevPAR competitive index reached 120.0.

Yuexiu Financial Tower
During the period, Yuexiu Financial Tower recorded a newly contracted area of 7,448 sq.m., including a total of 1,500 sq.m. further took up by seven existing tenants looking for expanded area. 7,089 sq.m. of furnished units were launched, with with an absorption cycle of approximately 38 days and an absorption rate of more than 65%. Quality tenants newly introduced include a Fortune Global 500 company and a futures company with a market value of over RMB10 billion. As certain tenants relocated to their own properties, the project recorded a renewed leasing area of 10,303 sq.m. and a renewal rate of 42%, retaining quality tenants with large leasing areas, including Deloitte, one of the Big Four international accounting firms, and a leading integrated asset management company in China.

White Horse Building
During the period, White Horse Building introduced supply chain resources from the Pearl River Delta and recorded a newly contracted area of 3,273 sq.m., with full occupancy on the 1st floor. In the first half of 2025, it welcomed a total of 165 procurement delegations, along with nearly 5,000 purchaser visits, including 23 foreign delegations from France, Vietnam and other countries, and facilitated procurement deals worth RMB140 million. By taking advantage of exhibitions such as the Greater Bay Area International Women’s Wear Expo and the Canton Fair, White Horse Building facilitated tenant transactions. It also successfully launched the cross-border e-commerce platform “White Horse Global E-Channel” and set up a series of courses titled “White Horse Business School Marketing Empowerment Camp” to activate new momentum for tenants’ digital operations.

Fortune Plaza
During the period, the project recorded a newly contracted area of 2,354 sq.m., and introduced quality tenants including several healthcare and elderly care subsidiaries of a Fortune Global 500 integrated financial group. The project recorded a renewed leasing area of 2,924 sq.m. and a renewal rate of 76%, retaining quality tenants including a Fortune Global 500 company, and flexibly adjusted units to match their demand for cost efficiency.

City Development Plaza
During the period, the project recorded a newly contracted area of 7,585 sq.m. and introduced a beauty technology company to enhance the ambience of healthcare business in the building. Retention plans were formulated in light of tenants’ pursuit of cost efficiency, aimed at optimizing product standards to meet tenant needs. The project recorded a renewed leasing area of 2,090 sq.m. and a renewal rate of 68%, retaining tenants including the Guangzhou office of a globally-renowned Contract Research Organisation (CRO).

Victory Plaza
During the period, its anchor tenant, Uniqlo, continued to play a flagship role by launching its C-series products, and hosted the first “A Better Life” campaign of Uniqlo in China, along with gigantic Pokémon installations and A Better Life Music Event, from 28 March to 6 April. Customer flow reached a quarterly peak during the events, driving a 7% year-on-year sales growth in April, and contributing to a 0.3% year-on-year sales growth during the Interim Period. By collaborating with tenants engaged in catering services to capitalize on increased sales with the surge in customer flow, the project drove a year-on-year increase of 0.6% in overall sales during the Interim Period.

Shanghai Yue Xiu Tower
During the period, the project recorded a renewed leasing area of 3,798 sq.m., with a renewal rate of 39%, while securing a newly contracted area of 3,933 sq.m., efficiently making up for the units surrendering ahead of lease expiry. By replacing the energy-saving light tubes in the carpark spaces to enhance brightness, the project enhanced both energy efficiency and service standards, thereby improving tenant satisfaction. As at the end of the Interim Period, the occupancy rate of Shanghai Yue Xiu Tower was 87.2%, representing a year-on-year increase of 2.6 percentage points.

Wuhan Properties
During the period, Wuhan Yuexiu Fortune Centre recorded a newly contracted area of 12,395 sq.m., and introduced quality tenants including a member of a leading global automobile group and a diversified professional services company. In addition, it recorded a renewed leasing area of 10,884 sq.m. and a renewal rate of 81%, retaining quality tenants with large leasing areas, including a Fortune Global 500 state-owned enterprise. The business solicitation team optimized the customers’ property visiting experience through partial micro-renovation of units, soft furnishing upgrades and creation of AI model rooms to increase the conversion rate of customers.

Starry Victoria Shopping Centre recorded a newly contracted area and renewed leasing area totalling 3,894 sq.m. with a renewal rate of 82% during the period. The project successfully introduced several popular food and beverage brands, including the internet-famous brand “Domino’s” on the 1st floor of Hall A, to attract more family customer groups. The project tapped into nighttime consumption by leveraging the unique appeal of “Joy Garden” on the 4th floor, continuously developing initiatives like “Riverside Starry Night” and “Midnight Diner” to stimulate new sales growth drivers.

Hangzhou Victory
Hangzhou Victory recorded a newly contracted area of 1,974 sq.m. and introduced a tenant to take up an entire floor during the period. In addition, it recorded a renewed leasing area of 6,083 sq.m. and a renewal rate of 64%, retaining quality tenants including a Fortune Global 500 construction engineering company and the Zhejiang branch of a state-owned enterprise in Shanxi Province.

Prospects
The market generally hopes for further interest rate cuts by the US Federal Reserve in the second half of 2025, though the path and extent remain uncertain. On the other hand, 2025 marks the concluding year of China’s “14th Five-Year Plan”, with policies prioritizing stability, including moderately accommodative monetary policies and “trade-in” consumption subsidy policies aimed at expanding domestic demand to stimulate market vitality. Consequently, the Manager expects the RMB interest rate to remain at a relatively low level. With the accelerated development of new quality productive forces and the advancement of supply-side reforms in China, the Manager expects that new industrial momentum will continue to emerge and business environment will improve. The highly anticipated 15th National Games is scheduled to open in Guangzhou in the second half of 2025, which is expected to boost consumption in shopping malls and demand for hotels and apartments.

In the second half of 2025, the Manager will keep abreast of economic development trends and dynamically implement proactive, prudent and flexible leasing strategies, keenly seize potential opportunities, and continuously enhance the market competitiveness of asset portfolio. The Manager will continue to review and make reasonable adjustments to its financing structure depending on expectations of market developments, and introduce low-cost RMB financing through various RMB financing channels to seek more favorable financing costs to offset interest rate risks. Additionally, the Manager will carry out relevant asset appreciation projects as planned, with reasonable planning and phased renovation of the guest rooms at Four Seasons Hotel Guangzhou. By focusing on product enhancement, equipment renewal and safety guarantee, the Manager aims to achieve value preservation and appreciation of the properties and ensure the sound operation of the projects.

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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