Fortune Real Estate (0778.HK) Q4 2024 Earnings Report

Fortune Real Estate Investment Trust (0778.HK) reported Q4 2024 results with positive operating performance but a materially negative bottom line driven by substantial non-operating expense. Revenue rose QoQ to HKD 874.5 million, supported by an expanding quarterly revenue base (Q3 2024 revenue HKD 437.2 million; Q4 2024 revenue HKD 874.5 million, reflecting a 100% QoQ increase in the cited quarter data). Gross profit reached HKD 568.2 million, yielding a gross margin of approximately 64.98%. Operating income was HKD 558.85 million, with an operating margin of 63.9%, illustrating strong core property-level earnings. However, net income registered a loss of HKD 482.58 million for Q4 2024, versus a prior quarter loss of HKD 241.29 million, due largely to a very large negative swing in total other income and expenses (net) of HKD -979.28 million for the period. This non-operating headwind dwarfed operating profitability and erased the positive contribution from operations. The company generated HKD 281.25 million of cash flow from operations, while ending the period with cash and cash equivalents of HKD 96.65 million. Debt remains elevated (total debt ~HKD 9.81 billion) with a limited liquidity buffer (current ratio 0.0461; cash ratio 0.0224), underscoring balance sheet fragility even as asset-level performance remains robust. Management commentary (where available in the call) is not present in the provided transcript data; as such, the analysis relies on the disclosed quarterly figures and balance-sheet metrics to assess near-term risk and resilience. Investors should monitor near-term liquidity management, debt refinancing options, rent reversions and occupancy trends, and any updates to dividend policy given the current payout stance appears to be nil in the period.”,