Champion Real Estate Investment Trust (stock code: 2778)the owner of Three Garden Road and Langham Place, reveals its monetary outcomes for the 6 months ended 30 June 2025.
Summary of monetary outcomes
1H 2025
1H 2024
Modification
Overall Rental Income (HK$ million)
1,029
1,115
– 7.6%
Net Property Income (HK$ million)
859
954
– 10.0%
Distributable Income (HK$ million)
476
544
– 12.6%
Circulation per system (HK$)
0.0701
0.0809
– 13.3%
30 Jun 2025
31 Dec 2024
Modification
Gross Value of Portfolio (HK$ million)
58,098
60,104
– 3.3%
Net Asset Value per system (HK$)
6.79
7.16
– 5.2%
Tailoring Ratio
24.5%
23.7%
+ 0.8 pp
Summary
While the worldwide economy dealt with headwinds from trade stress and geopolitical disputes in the very first half of 2025, Hong Kong’s market belief discovered assistance from a number of favorable advancements. A stock exchange revival, decreasing Hong Kong Interbank Offered Rates (“Hibor”) in the 2nd quarter, stabilised domestic sales and a constant tourist rebound assisted counterbalance external pressures. Relentless outgoing travel by citizens continued to divert costs somewhere else, weighing on regional retail sales. The workplace renting market stayed suppressed, showing a continuous imbalance in between supply and need. Versus this background, distributable earnings of the Trust reduced by 12.6% to HK$ 476 million and circulation per system (“DPU”) decreased by 13.3% to HK$ 0.0701.
Financial Investment and Investor Relations Director of Champion REIT (Right)
3 Garden Road
Total workplace leasing momentum in Central stayed reduced, we got increased renting questions amidst increasing monetary market activities, with need mostly from finance-related companies. A number of brand-new small-sized renters, consisting of household workplaces, devoted to developing operations in the home, while a current banking sector occupant broadened its existence here. Tenancy of Three Garden Road workplace was 80.7% as at 30 June 2025. Rental earnings of the residential or commercial property fell 5.4% to HK$ 540 million (2024: HK$ 571 million). We advanced lease renewal efforts, effectively concluding all 2025 expirations with a high retention rate, consisting of numerous anchor occupant renewals. For 2026, over 70% of the ending leases have actually currently been restored.
Langham Place Office Tower
Throughout the reporting duration, Langham Place Office Tower released “6D Wellness” YouTube channel to enhance the home’s placing as a one-stop health and way of life center. As at 30 June 2025, way of life (health) renters consisted of 68% of the home’s renter mix. Tenancy of Langham Place Office Tower stayed steady at 86.9% as at 30 June 2025. The broadened co-working area presented a Social Wellness Hall for wellness workshops and occasions, resonating with the residential or commercial property’s health positioning. Market leasing continued to deal with difficulties with rental earnings come by 9.1% to HK$ 151 million (2024: HK$ 166 million).
Langham Place Mall
As Langham Place Mall commemorates its 20th anniversary in 2025, it continues to welcome its strong “Stay Local, Trend Global” vision. Through immersive experiences and special product, we effectively brought in record crowds and drove sales, developing brand-new single-day step record in August. Just recently, style brand name BENLAI, marking its inaugural Hong Kong flagship existence in the shopping mall, and Umbro’s very first in the area way of life themed pop-up shop, have actually begun operations. More raising the shopping mall’s offerings, Chiikawa Ramen Buta has actually picked this area for its leading abroad outlet, quickly ending up being a hotspot because opening. Tenancy of Langham Place Mall stayed high at 99.2% as at 30 June 2025, reaching complete dedicated tenancy presently. Because altering customer behaviour has actually positioned difficulties for occupants, rental earnings of the shopping center decreased to HK$ 338 million (2024: HK$ 378 million).
Circulation
Distributable earnings of the Trust reduced by 12.6% to HK$ 476 million (2024: HK$ 544 million) and DPU decreased by 13.3% to HK$ 0.0701 (2024: HK$ 0.0809). Based upon the closing system cost of HK$ 2.08 tape-recorded as at 30 June 2025, the overall DPU represented an annualised circulation yield of 6.7%.
Possession Value
The evaluated worth of the Trust’s residential or commercial property portfolio was HK$ 58.1 billion as at 30 June 2025, decreasing by 3.3% from HK$ 60.1 billion as at 31 December 2024.
Sustainability
We continue to develop shared worths throughout our community through efforts that drive environment strength, develop significant connections, and assistance neighborhood health. Throughout the reporting duration, we executed an AI-powered chiller optimisation system at Three Garden Road, accomplishing 6.1% yearly energy cost savings. Through our EcoChampion Pledge program, we bring both workplace and retail renters together in the shared dedication to satisfying quantifiable ecological objectives. Our Champion REIT ESG Gala, themed “Innovation – Inspiration · Integration”united over 1,000 renters and organization partners to advance sustainable operations and inclusive practices.
Outlook
Hong Kong retail sector has actually returned to development and the monetary market has actually rebounded, the general operating environment of the Trust is anticipated to stay tough in the rest of 2025. While lower HKD rate of interest need to decrease interest expenditures, unfavorable rental reversion will likely continue to reduce rental earnings and decrease circulations compared to in 2015. We stay dedicated to keeping functional dexterity to browse this competitive market landscape.
About Champion REIT (stock code: 2778)
Champ Real Estate Investment Trust is a trust formed to own and buy earnings- producing workplace and retail homes. The Trust concentrates on Grade A business homes in prime places. It presently uses financiers direct exposure to almost 3 million sq. ft. of prime workplace and retail flooring location. These consist of 2 Hong Kong landmark homes, Three Garden Road and Langham Place, in addition to a joint endeavor stake in 66 Shoe Lane in Central London. The Trust has actually been granted the leading luxury ranking by GRESB given that 2023. Champ REIT is handled by Eagle Asset Management (CP) Limited, a member of the Great Eagle Group.
Site: www.championreit.com
Subject: Press release summary
