Hong Kong-based Yuexiu Real Estate Investment Trust (Reit) reported a 3.9 per cent decrease in net profit last year due to exchange losses caused by the yuan’s depreciation.
The trust, which focuses on investment in office buildings and shopping malls in China’s fourth-largest city Guangzhou, said it expects rental income to stabilise this year and that it will increase yuan denominated loans to reduce foreign exchange risks.
Net profit was down to 712 million yuan, while net property income jumped 16.5 per cent year on year to 1.27 billion yuan.
Total dividend rose 17.1 per cent to 824.7 million, or 32.69 HK cents per unit, representing an annual dividend yield of about 8 per cent based on Yue Xiu Reit’s closing price of HK$4.09 at the end of 2016.
Last year, the trust’s parent Yuexiu Group was reportedly bidding for one of Hong Kong’s tallest buildings, The Center.
Lin Deliang, chief executive of Yuexiu Reit, said at a press conference in Hong Kong on Tuesday that the company isn’t looking at The Center but “will not give up opportunities” to invest in Hong Kong and Macau.