Business was somewhat affected by the Occupy Hong Kong movement and reduction from mainland Chinese tourists. As a result occupancy dropped to 83.0% during the period vs 92.9% last year.
Profit (including property value gains) -530.8%
Profit (excluding property value gains) 3.6%
You can see the huge difference between profit before and profit after adjustment for property value gains. Always remember that the CORE PROFIT from operations is the MOST important. Property value gains has no impact on the bottom line of the REIT unless it is sold.
Current Ratio 0.57
Gearing 0.36
Distribution of HK$0.0704 for H12015. If we take into consideration of the FY2014 distribution of HK$0.1620 and based on today's closing of HK$1.93, this represents a distribution yield of 8.4%.
However, as its current ratio is weak, I will recommend HOLD until it is improved.
My disclosure: I own shares of Regal REIT.
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