Top 3 Hong Kong REITs that made you money if you invested from their IPOs (Updated 2024)

There were high hopes for China’s economy to spearhead a significant comeback in 2023, yet the anticipated revival turned out to be brief and below expectations. A resurgence of issues in the real estate sector added further complications, leading foreign investors to pull out of Chinese stock investments.

In fact, since the protests in 2019, investing in Hong Kong’s stock market has proven challenging. Hong Kong Real Estate Investment Trusts (HK-REITs) have suffered in particular and the sector has been on a downward trend since. However, those who invested in these REITs from their initial public offerings might find themselves pleasantly surprised by the outcomes.

Despite the pessimism, for investors of REITs and dividend stocks (of which Hong Kong offers a substantial selection) it’s important to factor in the dividends received when evaluating your total returns.

Like how we’ve done with S-REITs and M-REITs, we are going to measure the performance of HK-REITs that have been listed for at least 10 years and evaluate their total return including dividends over the long term. As we all know, the market can be driven by sentiment in the short term, but fundamentals dictate performance in the long term.

Once again, we assume that David (a fictional character) invests HK$10,000 in each Hong Kong REIT from the day it listed. Since David is a hard-core income investor, he doesn’t want to come out with any more money to subscribe to rights (if any) and is prepared for any share dilution. Let’s also assume that he neglects to sell his nil-paid rights from which he can make a profit from.

For example, if David invested in Fortune REIT during its IPO, his initial investment of HK$10,000 would’ve only slightly increase to HK$10,400 (+4% in capital gains) by 31 December 2023. But when we include the dividends he’s received over the years, David’s initial investment of HK$10,000 would have grown to $27,000 (+170% in capital gains and dividends). Overall, his total compound annual growth rate (CAGR) in Fortune REIT from 2003 to 2023 is 5.08%.

If David invested HK$100,000, then his investment would’ve grown to HK$270,000. Basically, the more money he invests, the more he makes. And the longer he holds, the more dividends he receives. So after investing for more than ten years, here are the top three best-performing Hong Kong REITs for David.

Note: We’ve excluded brokerage costs, currency exchange gains/losses and taxes that might be applicable to foreign investors.

3. Sunlight REIT (CAGR: +4.96%)

Since 2006, every HK$10,000 investment in Sunlight REIT would’ve shrank HK$8,400. It is a capital loss due massive foreign fund outflows in recent years. But when we include dividends, every HK$10,000 investment would have more than doubled to HK$22,800.

2. Fortune REIT (CAGR: +5.08%)

Since 2003, every HK$10,000 investment in Fortune REIT would’ve grown into HK$10,400. Including dividends, every HK$10,000 would cumulatively become HK$27,000.

1. Link REIT (CAGR: +11.83%)

And the most prosperous REIT in Hong Kong is not Prosperity REIT but… Link REIT. Since 2005, every HK$10,000 investment in Link REIT would’ve turned into HK$42,600. Including dividends, every HK$10,000 invested would cumulatively become HK$74,800!

In summary, here is David’s overall performance:

Similar to many Singapore and Malaysian REITs, Hong Kong REITs have also delivered positive returns, except for Hui Xian. Hui Xian is down 83% in price but when we include dividends received throughout the years, the overall return is a more palatable negative 35%.

Due to the current negative sentiment in the Hong Kong and China markets, many Hong Kong REITs show a capital loss (except for Fortune REIT and Link REIT). But when we include dividends, we get a better picture of their overall performance, mitigating the impact of losses from capital gains.

Note that David didn’t need to come up with any additional capital to subscribe to any right issues; the table above is his actual score. His investment loss in Hui Xian can be easily offset from the gains of his other REIT investments. However, if he had subscribed to any rights, he would have made more money since rights are usually sold at a discount. More importantly, David continues to receive regular dividends from his investments in Hong Kong REITs rain or shine.

As you can see, REITs continue to stand out as an excellent choice for those looking to generate a stable and consistent flow of passive income. However, please note that you shouldn’t buy or avoid a REIT solely based on the data above as past performance is not necessarily indicative of future results. Having a proper investment strategy is crucial to help you select and invest in the right REITs that will give you a steady flow of passive income and potential capital gains in the future.

Announcement! Enrolment to join Dividend Machines is open until 17 March 2024, 11:59PM. If you’re looking for a way to learn how to invest in dividend stocks and REITs and build multiple streams of passive dividend income, then we highly recommend you check out Dividend Machines before applications close! Once the deadline has passed, Dividend Machines will only reopen in 2025. We hope to see you inside!

Rusmin Ang

Rusmin Ang is an equity investor and co-founder of The Fifth Person. His investment articles have been published on The Business Times and Business Insider. Rusmin has appeared on Channel NewsAsia and on national radio on Money FM 89.3 for his views and opinions on how to invest successfully in the stock market. He believes that anyone, even with a regular job, can achieve more financial peace-of-mind by investing intelligently and safely for the long term.


  1. Hi Rusmin, I would like to know how many on-line lessons are there in the Dividend Machines course and how long is each lesson. If we have any questions on these lessons who do contact? Is the Live-web class conducted once or every week/month? This a course with an emphasis on fundamental analysis and not on technical analysis, right? There should be a lot of case studies on how to apply the concepts taught in the course, right?

    1. Hi Linda,

      Dividend Machines comprises an online video training course (over 50 videos) which you can access anytime, and a live web class which you can attend as many times as you like.

      The upcoming 2024 dates for the live web class are 16, 17, 23, 24, 30, 31 Mar. 1-7PM. Each webinar covers the same content, so you only need to pick one date (unless you like to re-attend for a refresher). We’ll have more dates later in the year as well.

      Yes, Dividend Machines is a training course that focuses on fundamental analysis and investing for income. It is suitable for people who want a regular source of income from their investments now, while enjoying the steady growth of dividend stocks over the years.

      Please note that the course doesn’t provide research or a watchlist of stocks. It’s intended to provide a clear dividend investment framework that’s laid out for you in a step-by-step sequence, so you can use it to apply to your own investment decisions and portfolio.

      Hope this explains!

  2. More questions:
    1) How long is each of the 50+ videos?
    2) Do we need to complete all the videos before attending the live web class? What is covered in the live class?
    3) We can access the 50+ videos once we pay up, right?
    4) If we have any questions regarding the contents of the video, who should we contact?
    5) There is always a support group/team to help us after the whole course, right? This is very important as we put into practice what we have learned and we would need a lot of guidance!
    Thank you and regards,

    1. Hi Linda,

      1) Around 5-10 minutes.
      2) No, you don’t have to. You can attend the live web class first.
      3) Yes.
      4) We have a members’ Q&A forum where you can ask questions about the course content
      5) Yes, you can also ask questions in the Q&A forum about dividend investing and stock analysis

      Hope this helps!

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