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Prosperity REIT 2015 Annual Results


Hong Kong, 3 March 2016 – ARA Asset Management (Prosperity) Limited (the "REIT Manager"), as manager of Prosperity Real Estate Investment Trust ("Prosperity REIT") [SEHK: 808], is pleased to announce the final results of Prosperity REIT for the year ended 31 December 2015 (the “Reporting Year”).

Uplift in DPU and attractive annualized distribution yield.

During the year, our distributable income rose by 9.8% year-on-year (“YoY”) to HK$254.1 million. The REIT manager is pleased to announce that our Unitholders will receive a DPU of HK$0.1768, representing an increase of 8.5% YoY and an attractive distribution yield of 6.3%1 as at 31 December 2015.

Excellent operation performance with stable occupancy rate and positive rental reversion rate.

During the Reporting Year, we achieved solid revenue growth by 8.8% YoY to HK$438.7 million through the portfolio rental reversion rate of 16.3%, outstanding performance in both occupancy rate and rental income in 9 Chong Yip Street acquired in 2014 and the strong rental uplift in Harbourfront Landmark.  A stable portfolio occupancy rate of 96.4% was recorded as at 31 December 2015.

AEIs trim down operating costs effectively

Net property income increased by 10.7% YoY to HK$345.5 million, due to the proactive operating cost saving strategies and first-rate property management services. Through our energy-saving asset enhancement initiatives such as the replacement of some existing chiller plants with more energy-efficient models, we were able to maintain a stable cost-to-revenue ratio at 21.3%. It is the REIT manager’s ongoing endeavours to keep our operating cost efficient.


Looking ahead in year 2016, Prosperity REIT will continue to face multiple challenges, mainly from the economic performance in China and the interest rate movement in US. Offsetting these concerns, our portfolio is primarily located in Kowloon East decentralized area, which is progressively transforming into a mature commercial hub, will continue to be attractive to corporations looking for high quality office space. With one-third of our portfolio net property income generated from the Kowloon East portfolio, a stable and sustainable return is anticipated. Barring unforeseen circumstances, we are cautiously optimistic about the market environment and our prospects for the year ahead.

 [1] Based on Prosperity REIT’s closing unit price of HK$2.79 as at 31 December 2015.

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About Prosperity REIT

Prosperity REIT [SEHK: 808] is a Hong Kong collective investment scheme authorized under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). Prosperity REIT owns a diverse portfolio of eight high-quality properties in the decentralized business districts of Hong Kong, comprising all, or a portion of, three Grade A office buildings, two commercial buildings, two industrial/office buildings and one industrial building, with a total gross rentable area of about 1.35 million sq. ft..

About ARA Asset Management (Prosperity) Limited

Prosperity REIT is managed by ARA Asset Management (Prosperity) Limited, a wholly-owned subsidiary of ARA Asset Management Limited (“ARA”), Asia’s premier integrated real estate fund manager which is listed on the Main Board of the Singapore Exchange Securities Trading Limited since November 2007.

ARA currently manages real estate investment trusts (“REITs”) and private real estate funds that are invested in the office, retail, logistics/industrial, hospitality and residential sectors in the Asia Pacific region, complemented by its in-house real estate management services and advisory services.

Established in 2002, to date it has over 1,200 professionals in 15 cities managing total assets in excess of S$30 billion.


The information contained in this press release does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for units in Prosperity REIT in Hong Kong or any other jurisdiction.

Media and Investor Contact

Vicho Chung

Manager, Investments and Investor Relations

(852) 2169 0928

Kitty Lam

Senior Analyst

(852) 2169 0928