Spring Real Estate Investment Trust (01426) announced that for the three months ended June 30, 2024, the average rent for Huamao Property was...
Zhixin Finance app news, Spring Real Estate Investment Trust (01426) announced that for the three months ended June 30, 2024, the average monthly rent for Huamao Property was RMB 344 per square meter, a decrease of 1.5% compared to the previous quarter. The average occupancy rate was around 87%, a decrease of 2 percentage points compared to the previous quarter. The Beijing office market is still facing challenges and the team will continue to prioritize occupancy rates rather than rent.
The 84 properties in the UK portfolio are all subject to long-term leases with the tenant (Kwik-Fit (GB) Limited), except for one lease which will expire in March 2032. The occupancy rate of the UK portfolio is currently 100%, and the annual contracted rental income is around £4.76 million. Rent reviews are conducted every five years for each lease, and rents will only be adjusted upward based on market cap.
Spring Real Estate Investment Trust completed the acquisition of 68% equity interest in Huizhou Property on September 28, 2022. For the three months ended June 30, 2024, the average monthly rent for Huizhou Property was RMB 165 per square meter, including fixed rent of RMB 149 per square meter (Q1 2024: RMB 152 per square meter) and floating rent of RMB 16 per square meter (Q1 2024: RMB 26 per square meter), a decrease of 7.3% compared to the previous quarter. The average occupancy rate was about 96%, a decrease of 3 percentage points compared to the previous quarter. The temporary drop in occupancy rate of Huizhou Property was due to tenant restructuring taking place on the first floor, which is expected to be completed in Q3 2024. The rent decline is related to the seasonal consumption which usually weakens in Q2. We expect a rebound when the summer vacation arrives.
The total leasable area of Huizhou Property as of June 30, 2024 was 103,669 square meters. The total leasable area of the property may change from time to time due to reconfiguration to meet the needs of tenants.