Great Eagle earnings soar on first Champion Reit contribution

Great Eagle Holdings, a hotel and investment property firm controlled by the Lo family, said its first-half net earnings rose sixfold, thanks to the first contribution from Champion Real Estate Investment Trust and lower financing costs.

Net profit for the six months to June totalled HK$613.81 million, compared with HK$101.6 million a year earlier.

Turnover rose 3.67 per cent to HK$1.91 billion.

Finance costs fell 31.2 per cent to HK$282.14 million after some of its borrowings were paid off with proceeds from the HK$6.29 billion initial public offering of Champion Reit, said Great Eagle assistant director Adrian Lee Ching-ming.

The company for the first time recorded income from its 48.3 per cent-owned Champion Reit, which contributed HK$138.8 million.

The reit, whose sole asset is Citibank Plaza in Central, was floated on the stock exchange in May last year.

To boost its initial yield, Great Eagle waved its share of the dividend distribution last year. The trust's earnings have shot up thanks to surging office rents in Central.