Southern Shunfeng Logistics REIT has released its first-half operating data, showing a clear divergence in the performance of its underlying assets. The Shenzhen project maintained full occupancy, but the Wuhan project's occupancy rate fell month by month from 94.54% at the start of the year to 92.01% in June, while the Hefei project, affected by the expiry of a related-party lease with SF Holding, saw its occupancy rate drop from 94.19% to 90.07%, a cumulative decline of 4.12 percentage points. The distribution center at the Wuhan project renewed its lease with Hubei SF, with the unit rent falling from the original contract's 38.12 yuan per square meter per month to 27.01 yuan per square meter per month, a drop of over 29%. The average effective unit rent under the new contract period is 26.80 yuan per square meter per month. Despite the sharp rent decline, because the valuation benchmark had been lowered, the revenue during the renewed lease period increased by 4.1892 million yuan compared to the tracking valuation, but still fell by 126,300 yuan compared to the initial public offering valuation.
S.F. Holding Co. LtdWuhan and Hefei projects see occupancy drops and Wuhan rent cut over 29%, indicating weaker demand for SF's logistics space.
SF IntgLog REITHubei SF's lease renewal rent dropped 29% from 38.12 to 27.01 yuan/sqm/month, directly impacting its costs.