SF Reit, Hong Kong’s first real estate investment trust (REIT) specializing in logistics properties, reported a 7.3% year-on-year decline in distributable income to HK$110.7 million (US$14.11 million) for the first half of 2026. The company, controlled by Chinese logistics giant SF Holding, recorded total revenue of HK$219.3 million for the period, down 4.6% from the previous year, according to its exchange filing on Thursday, August 13, 2026.
Net property income also decreased by 7.1% to HK$178.4 million. This decline led to a reduction in the interim distribution to 12.15 HK cents per unit from 13.11 HK cents a year earlier, while the payout ratio remained steady at 90%.
SF Reit’s logistics assets, located in Hong Kong’s Tsing Yi and mainland Chinese cities including Foshan, Wuhu, and Changsha, maintained a high overall occupancy rate of 96.8% as of June 30, 2026, a slight decrease from 96.9% at the end of December 2025.
“In Hong Kong, the logistics property market is transitioning from a phase of adjustment towards a phase of stabilisation, supported by a recovery in trade activity and broader economic confidence,” the company said in a statement. It added that leasing demand continues to be driven by e-commerce platforms, third-party logistics providers, and specialized industrial sectors.
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