Improved Market Demand and Leasing Activity
Site inspections for Three Garden Road increased 61% in H2 year‑on‑year; over 75% of leases expiring in 2026 were renewed, helping occupancy hold at 81.6% for Three Garden Road and 86.9% for Langham Place Office.
Strong Retail Leasing and Tenant Mix Wins
Langham Place Mall occupancy remained high at 99.3%; new tenants (30+ added) delivered sales 80% higher than previous operators; IP-driven pop-up stores achieved triple‑digit sales growth, generating 8‑digit sales and 7‑digit incremental income.
Prudent Financial and Liability Management
Secured HKD 1.5 billion of bank facilities to refinance part of HKD 2,285 million maturing debt; gearing maintained at a healthy 25.4%; brought new lenders into syndicated loan and added a new bilateral facility.
Lower Interest Costs and Interest Rate Benefit
Average effective interest rate fell by 60 basis points to 3.8% from 4.4% (2024), producing meaningful savings: cash finance costs declined 13.5% to HKD 557 million.
Strong Sustainability and Ratings Recognition
Received inaugural A ratings from Japan agencies (JCR and R&I), GRESB 5‑star for third consecutive year, and AA+ in the Hong Kong Sustainability Benchmark; AI chiller optimization reduced energy use by 6.1% and 80% of participating tenants formalized energy targets.
Stable Portfolio Valuation and Scale
Portfolio valued at HKD 56.2 billion with unchanged cap rates; Three Garden Road per sq ft valuation remained under HKD 20,000; Champion REIT noted as the second largest REIT in Hong Kong by market cap.
Retail Engagement and Loyalty Growth
Langham Place Mall loyalty member base grew 27% year‑on‑year and member spending rose 11% year‑on‑year; vibrant event calendar and IP partnerships deepened customer engagement.