HUTCHISON Port Holding Trust Reports Lower Full-Year Distribution per Unit
HUTCHISON Port Holding Trust (HPH Trust) posted a distribution per unit (DPU) of HK$0.072 for the second half of the year ended Dec 31, 2024, down 6.5 per cent from HK$0.077 in the corresponding year-ago period, said its trustee-manager in a bourse filing on Friday (Feb 7).
Lower Distribution per Unit
This will be paid on Mar 28, after the record date of Feb 18. Distributable income for the six months fell 6.5 per cent on year to HK$627.2 million (S$109 million), from HK$670.8 million.
Full-Year Distribution per Unit
The H2 DPU brings the full-year distribution per unit to HK$0.122, resulting in a distribution yield of 9.5 per cent as at the closing price of US$0.164 on Dec 31, 2024. Full-year DPU is 7.6 per cent lower than the HK$0.132 DPU of FY2023.
FY2024 Revenue and Other Income
Distributable income for the full year is HK$1.06 billion, down 7.6 per cent compared with HK$1.15 billion a year ago. However, FY2024 revenue and other income increased 8.8 per cent to HK$11.6 billion, from HK$10.6 billion a year ago.
Profit Attributable to Unitholders
Profit attributable to unitholders also climbed, jumping 178.4 per cent year on year to HK$650 million, from HK$233.5 million.
Refinancing of Club Loan
The trustee-manager of HPH Trust said that it is working to refinance a US$500 million club loan due in March this year through either bank loan or guaranteed notes. However, interest expense will increase when HPH Trust refinances its maturing debt that was drawn at the low end of the interest rate cycle some four to five years ago.
Units of HPH Trust
Units of HPH Trust fell 2.5 per cent or US$0.004 to US$0.157 on Friday, before the announcement.
Conclusion
Despite the decrease in DPU, HPH Trust reported a strong revenue and other income growth, and an increase in profit attributable to unitholders. However, the trust is facing a refinancing challenge with its maturing debt, which is expected to result in an increase in interest expense.
FAQs
Q: What is the DPU for the second half of 2024?
A: The DPU for the second half of 2024 is HK$0.072, down 6.5 per cent from the corresponding year-ago period.
Q: What is the full-year DPU for 2024?
A: The full-year DPU for 2024 is HK$0.122, resulting in a distribution yield of 9.5 per cent as at the closing price of US$0.164 on Dec 31, 2024.
Q: What is the FY2024 revenue and other income?
A: The FY2024 revenue and other income increased 8.8 per cent to HK$11.6 billion, from HK$10.6 billion a year ago.
Q: What is the refinancing plan for the US$500 million club loan?
A: The trustee-manager of HPH Trust is working to refinance the US$500 million club loan due in March this year through either bank loan or guaranteed notes.
Q: What is the expected impact on interest expense?
A: Interest expense is expected to increase when HPH Trust refinances its maturing debt that was drawn at the low end of the interest rate cycle some four to five years ago.
