Regal REIT maintains a conservative capital structure which limits the amount of debt financing used. The REIT Code sets a maximum level of borrowings to 45% of the total gross asset value of Regal REIT.

As at 31st December, 2009, the gearing ratio amounted to 31.9%, being the gross amount of the outstanding loans of HK$4,641.0 million as compared to the total assets of approximately of HK$14,563.9 million, which is below the maximum 45% permitted under the REIT Code.

As at 30st December, 2009, the investment properties with an aggregate carrying value of HK$14,290.0 million were pledged to secure the bank loan facilities granted to Regal REIT.