Core Viewpoint - DBS has released a report indicating that the distributable income of Champion REIT (02778) fell by 12.6% year-on-year to HKD 476 million in the first half of the year, which is broadly in line with expectations. The bank maintains a "Hold" rating and has lowered the target price from HKD 2.21 to HKD 2.10 due to challenging rental outlooks and limited yield attractiveness [1] Group 1 - The rental outlook for office spaces remains challenging, with all leases at Three Garden Road renewed this year, but the decline in renewal rents is expected to continue suppressing rental income prospects [1] - The negative impact from declining renewal rents is anticipated to outweigh the positive effects of reduced interest costs due to the drop in HIBOR, thereby inhibiting short-term growth in Distribution Per Unit (DPU) [1] - Although leasing activity in Central has shown slight improvement, high vacancy rates continue to exert pressure on overall office rents, affecting the renewal rent growth prospects for both Three Garden Road and Langham Place, which together account for approximately 69% of the company's net property income in the first half [1]