Hutchison Port Holdings Trust, managed by Hutchison Port Holdings Management Pte. Limited, has released written answers to questions from the Securities Investors Association (Singapore) in relation to its 2025 annual report, ahead of its Annual General Meeting scheduled for Apr, 29 2026 in Singapore.

The trustee-manager said the decline in throughput at its Kwai Tsing Container Terminals since 2018 was driven by global trade headwinds, a shift by shippers toward direct calls in mainland China and competition from neighbouring Greater Bay Area ports, rather than by the throughput-sharing mechanism within the Hong Kong Seaport Alliance.

Despite weaker volumes, Kwai Tsing remains EBITDA-positive, supported by cost-saving measures such as flexible crane and labour deployment. The board reiterated the terminal’s strategic role as an international trans-shipment hub and highlighted investments in electric autonomous trucks and crane safety systems powered by artificial intelligence as part of a broader push into smart and green port infrastructure.

Distribution per unit (DPU) for 2025 was 11.5 Hong Kong cents, down 6% from 12.2 Hong Kong cents in 2024. The trustee-manager attributed the drop to a HK$218 million statutory reserve set aside for Yantian International Container Terminals under China’s revised Company Law; excluding this reserve, the distributable income would have equated to 14.0 Hong Kong cents per unit, 15% above the prior year.

HPH Trust continued its deleveraging programme, cutting total borrowings from about HK$34 billion in 2016 to approximately HK$24 billion at end-2025, with 52% of debt on fixed rates. A further reduction of at least HK$1 billion is planned for 2026. The trust reaffirmed its policy of distributing 100% of distributable income after operating expenses, debt service and liquidity needs.

Over the past five years the trust has paid a cumulative 65.9 Hong Kong cents in distributions, while its unit price has risen by US$0.02; over ten years, cumulative distributions reached 157.1 Hong Kong cents, though the unit price fell by US$0.32. Since its 2011 listing, total distributions have amounted to 362.4 Hong Kong cents, with the unit price down US$0.79.

The board said it remains “receptive” to capital-management options such as unit buybacks, subject to unitholder approval, but its current priority is to enhance operating profitability and reinforce the balance sheet. Initiatives include expanding Yantian’s capabilities through the East Port Phase I project and extending the Shenzhen-Hong Kong Connect barge network to additional Greater Bay Area ports.