Annual savings of approximately 150 million yuan! Yuexiu Property Fund's financing cost rate drops to a three-year low in 2025

On March 11, Yuexiu Real Estate Investment Trust (hereinafter referred to as “Yuexiu REIT”) released its 2025 annual performance report, showing total revenue of 1.856 billion yuan for the year, with a year-end financing cost rate of 3.61%, the lowest in nearly three years. Foreign exchange exposure narrowed to 24%, the lowest in nearly five years.

Year-end financing cost rate hits a three-year low

A sound financial system is the core support for REITs to navigate industry cycles and protect investors’ interests. The financial report shows that in 2025, the manager adhered to an active and prudent financial management strategy, comprehensively enhancing financial stability and achieving breakthroughs in both cost and risk control.

Public information indicates that Yuexiu REIT was listed on the Hong Kong Stock Exchange in 2005. It is the world’s first Hong Kong-listed real estate investment trust investing in Mainland China properties. Its properties are located in key areas of Guangzhou, Shanghai, Wuhan, Hangzhou, and Hong Kong, covering office buildings, retail malls, professional markets, hotels, and serviced apartments.

In 2025, Yuexiu REIT celebrated its 20th anniversary of listing and achieved a major breakthrough in controlling financing costs. Relying on the market interest rate decline window, the fund proactively optimized its financing structure. The average interest expense rate for the year dropped to 3.77%, a decrease of 76 basis points compared to the previous year; the year-end financing cost rate further decreased to 3.61%, a three-year low. The total financing cost savings for the year amounted to approximately 150 million yuan, providing ample funds for asset maintenance, operational quality improvement, and investor distributions.

Regarding asset portfolio optimization, the fund successfully raised about 5.3 billion yuan in cash by selling a 50% stake in Yuexiu Financial Tower, significantly enhancing financial flexibility and risk resistance.

Hotel and serviced apartment sectors are expected to continue releasing growth potential

Facing industry adjustment pressures, Yuexiu REIT focuses on refined operations, concentrating on four major sectors: office buildings, hotel apartments, professional markets, and retail malls. Through targeted strategies, it aims for steady development across all segments.

Leveraging the ongoing recovery of inbound tourism, the hotel apartment sector has gained deep insights into high-end customer needs, actively promoting product and service iterations to improve operational quality. Among them, the Guangzhou IFC Ascott Serviced Apartments focus on foreign guests, optimizing long- and short-term rental ratios and service experience. The average occupancy rate reached 91.5% for the year, up 1 percentage point year-over-year; average room rates and RevPAR increased by 1.6% and 2.7%, respectively. Operating income has maintained the top position in Ascott Group China for ten consecutive years since 2016, providing a solid foundation for the sector’s stability. With the continued growth of inbound tourism, the hotel apartment sector is expected to sustain its growth momentum and reach new heights.

The Guangzhou Baima Apparel Market is leveraging favorable conditions to deepen industry linkage among Guangzhou, Shenzhen, and Dongguan throughout the year. It has attracted high-quality clients from core industrial clusters, built industry exchange platforms, organized original brands to showcase at major domestic and international exhibitions, and helped merchants connect with global fashion resources. It has established new trade channels, held border trade supply chain matchmaking events, and formed procurement alliances with ten wholesale markets in Xinjiang, smoothing domestic and foreign sales channels. The upgrade of the procurement festival into an industry IP has deeply integrated resources from 50 government and industry entities. In 2025, the project hosted 517 procurement groups with nearly 13,000 buyers, including foreign groups from 19 countries and regions such as France and Vietnam, resulting in a procurement volume of 320 million yuan. Additionally, by establishing the “Baima Yuejingtong” cross-border e-commerce platform, the market is transforming into a comprehensive fashion industry platform, expanding merchant channels and injecting strong momentum for long-term stable development.

Text | Reporter Dai Manman