Fortune Real Estate Investment Trust (0778.HK) Q2 2025 Earnings Report

Previous: Q1 2025

Fortune Real Estate

0778.HK

HKD4.92 -0.61%

Exchange: HKSE | Sector: Real Estate | Industry: REIT Retail

Q2 2025

Published: Jun 30, 2025

Earnings Highlights

Revenue of $854.47M up 95.4% year-over-year
EPS of $-0.32 decreased by 166.7% from previous year
Gross margin of 66.2%
Net income of -653.36M
"N/A" - N/A

0778.HK

Company 0778.HK

Period Q2 2025

Currency HKD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

Fortune Real Estate Investment Trust (0778.HK) reported a strong revenue and operating performance for QQ2 2025, with revenue of HKD 854.465 million, gross profit of HKD 565.911 million and operating income of HKD 553.255 million, reflecting robust core property operations and favorable margin dynamics (gross margin ~66.2%, operating margin ~64.7%). However, net income fatigued into negative territory at HKD -653.361 million driven by a sizeable non-operating charge of HKD -1,155.367 million that overwhelmed the operating strength. Consequently, earnings per share came in at HKD -0.32 for the quarter. The substantial deviation between healthy core profitability and negative bottom-line earnings underscores the importance of understanding non-operating items in Fortune REIT’s QQ2 2025 result.

Key Performance Indicators

Revenue

Increasing

854.47M

QoQ: 0.00% | YoY: 95.42%

Gross Profit

Increasing

565.91M

66.23% margin

QoQ: 0.00% | YoY: 99.18%

Operating Income

Increasing

553.26M

QoQ: 0.00% | YoY: 98.00%

Net Income

Decreasing

-653.36M

QoQ: 0.00% | YoY: -170.78%

EPS

Decreasing

-0.32

QoQ: 0.00% | YoY: -166.67%

Revenue Trend

Margin Analysis

Financial Highlights

- Revenue: HKD 854.465m, YoY +95.4%, QoQ +0.0%.
- Gross Profit: HKD 565.911m, YoY +99.2%, Margin ~66.2%.
- Operating Income: HKD 553.255m, YoY +98.0%, Margin ~64.7%.
- Net Income: HKD -653.361m, YoY change notional given large non-operating outlay; EPS -HKD -0.32.
- Total Other Income/Expenses Net: HKD -1,155.367m (major driver of the net loss).
- Cash and liquidity indicators (per-share metrics shown below) favorable near-term operating cash flow metrics but current liquidity remains tight (Current Ratio 0.026, Quick Ratio 0.026).
- Payout/Yield: Dividend Yield ~3.59%; Payout metrics affected by negative net income (dividend payout ratio reported at -54.2%).
- Leverage: Debt ratio 26.1%, Debt to Capitalization 27.4%, with a modest debt profile relative to equity (Debt to Equity ~0.38).

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	854.47M	95.42%	0.00%
Gross Profit	565.91M	99.18%	0.00%
Operating Income	553.26M	98.00%	0.00%
Net Income	-653.36M	-170.78%	0.00%
EPS	-0.32	-166.67%	0.00%

Key Financial Ratios

Gross Profit Margin

Excellent

66.20%

Gross profit margin is exceptional, indicating strong pricing power and operational efficiency

Operating Profit Margin

Excellent

64.70%

Operating margin is exceptional, indicating strong pricing power and operational efficiency

Net Profit Margin

Weak

-0.77%

Net profit margin is below industry norms, profitability concerns

Return on Assets

Weak

-0.02%

Return on assets suggests inefficient capital allocation

Return on Equity

Weak

-0.03%

Return on equity suggests inefficient capital allocation

Current Ratio

Concern

0.03

Current ratio below safe levels, potential liquidity risk

Debt to Equity

Moderate

0.38

Debt-to-equity indicates balanced capital structure with manageable debt

P/E Ratio

Negative

-3.77x

Negative earnings make P/E ratio not meaningful

Price to Book

Undervalued

0.38x

Trading below book value, potential value opportunity or distressed

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q2 2025	854.47	-0.32	+95.4%	View
Q1 2025	427.23	-0.16	-2.0%	View
Q4 2024	874.48	-0.24	-10.9%	View
Q3 2024	437.24	-0.12	-0.3%	View

Fortune Real Estate (0778.HK) Q2 2025 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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