• Rent revenue from investment properties increased by 1.77%
• Fair value adjustments to investment properties increased by 195.83%
• Profit for the period attributable to stapled security holders increased by 76.09%

Hotel Property Investments (HPI) has released its interim financial report for the six months ended 31 December 2024. The report shows that rent revenue from investment properties increased by 1.77%, which is the result of annual rent escalations offset by the rental revenue foregone from the sale of several assets during FY24 and FY25. Fair value adjustments to investment properties increased by 195.83% due to a positive increase in the fair value of the portfolio during the period, compared to a loss in the prior period. Profit for the period attributable to stapled security holders increased by 76.09%, which includes approximately $8.5 million in takeover defence costs incurred as a result of the off-market takeover offer to acquire all the securities in HPI made by Charter Hall Retail REIT and Hostplus. The HPI Group's net assets were $1,275.3 million as at 31 December 2024, representing net assets per stapled security of $3.99. The HPI Group has declared a distribution of 3.3 cents per stapled security for the half year ended 31 December 2024, in addition to the 6.5 cents per stapled security paid in November 2024.

The HPI Group intends to distribute 100% of its full year Adjusted Funds From Operations (AFFO) for the financial year, which is calculated as profit for the year adjusted for fair value movements, losses or gains on hedging, other non-cash items, tax, and maintenance capital expenditure.

The HPI Group will continue to review the portfolio with a view to increasing distributions, whether by divesting properties and recycling the proceeds into higher returning properties, developing properties, or by acquiring new properties at appropriate prices. The HPI Group's strategy is focused on three broad themes: Existing Portfolio, Growth Levers, and Optimisation.