News

Sunlight Real Estate Investment Trust (“Sunlight REIT”) Interim Results for the Six Months Ended 31 December 2018

HONG KONG, CHINA - Media OutReach - 14 February 2019 -
Henderson Sunlight Asset Management Limited (the "Manager") is pleased to announce
the interim results of Sunlight REIT for the six months ended 31 December 2018 (the "Reporting Period").

Sunlight
REIT continued to make healthy progress during the Reporting Period, as revenue
and
net property income ("NPI") registered
6.4% and 9.2% year-on-year ("YoY")
growth to HK$
424.9 million and HK$338.7 million respectively. Improvement in passing rent and initial contribution from The Harvest (formerly
Fung Shun Commercial Building) were the main drivers behind this
performance.

Distributable income rose 8.2% YoY to HK$231.6 million. The Board has resolved to declare an interim
distribution per unit of HK
13.2 cents, representing a payout ratio of 93.9% and an
increase of
4.8% YoY.

The portfolio of Sunlight REIT was appraised at HK$19,452.5 million at 31 December 2018, up 3.7% from 30 June 2018.
Meanwhile, its net assets grew
4.2% to HK$15,476.3 million, which translates to a net
asset value of HK$
9.40 per unit.

Operating Highlights

The overall occupancy of Sunlight REIT's portfolio was 96.7% at 31 December 2018 (30 June 2018: 98.2%).  Office occupancy was 95.7% (30 June 2018: 97.8%), a slight decline mainly attributable
to the higher vacancies recorded at B
onham Trade Centre in preparation for the upcoming asset enhancement, and at The Harvest upon expiry of the sale
and lease
back arrangement for the office portion with
the previous owner.
The retail portfolio maintained a satisfactory occupancy rate
of
98.9% (30 June 2018: 99.2%). Passing
rent of office and retail portfolio
rose 2.7% and 2.0% from six months ago to HK$34.7 per
sq. ft.
and HK$75.4 per sq. ft. respectively.

Underpinned by an upsurge in
office rents in decentralized areas and a decent rebound in visitor arrivals
from China, Sunlight REIT achieved an overall rental reversion of 10.6% during the Reporting Period. In particular, the top
three properties
of Sunlight REIT, namely Sunlight Tower, Sheung Shui Centre Shopping Arcade and
Metro City Phase I Property, recorded rental reversions of 12.8%, 10.1% and 13.0%
respectively.

Mr. Wu
Shiu Kee, Keith, Chief Executive Officer
of the Manager, said, "Looking ahead, while market
volatility will remain a notable feature in 2019, the Manager remains positive
to the medium-term prospects of Sunlight
REIT which is poised to benefit from the favourable rental reversionary trend
and the ongoing asset enhancement initiatives.
Given its strong financial war chest, Sunlight
REIT is also well positioned to conduct unit buy-backs, as well as to
capitalize on any attractive acquisition opportunities which may arise.
"

Remarks: Attached highlights of the FY2018/19
Interim Results of Sunlight REIT.


About Sunlight REIT

Sunlight REIT (Stock Code:
435) is a real estate investment trust authorized by the Securities and Futures
Commission and constituted by the trust deed dated 26 May 2006 (as amended and
supplemented by six supplemental deeds) (the "Trust Deed") and has been listed on The Stock Exchange of Hong Kong
Limited since 21 December 2006. Sunlight REIT offers investors the opportunity
to invest in a diversified portfolio of 11 office and five retail properties in
Hong Kong with a total gross rentable area of approximately 1.2 million sq.
ft.. The office properties are primarily located in core business areas,
including Wan Chai and Sheung Wan/Central, as well as in decentralized business
areas such as Mong Kok and North Point. The retail properties are primarily
situated in regional transportation hubs and new towns including Sheung Shui,
Tseung Kwan O and Yuen Long, as well as in urban areas with high population
density.

About the Manager

The Manager of Sunlight REIT
is an indirect wholly-owned subsidiary of Henderson Land Development Company
Limited (
??????????); its responsibility is to manage Sunlight REIT in
the sole interest of the unitholders in accordance with the Trust Deed.


Highlights
of FY2018/19 Interim Results:

(in HK$' million, unless otherwise specified)

 

Six months ended

31 December 2018

Six months ended

31 December 2017

Change

(%)

Revenue

424.9

399.3

6.4

Net
property income

338.7

310.2

9.2

Cost-to-income
ratio (%)

20.3

22.3

N/A

Profit
after taxation

859.1

935.1

(8.1)

Distributable income

231.6

214.1

8.2

Distribution
per unit (HK cents)

13.2

12.6

4.8

Payout ratio (%)

93.9

96.6

N/A

 

 

At 31 December 2018

At 30 June 2018

Change

(%)

Portfolio
valuation

19,452.5

18,754.8

3.7

Net
asset value

15,476.3

14,857.0

4.2

Net
asset value per unit (HK$)

9.40

9.03

4.1

Gearing
ratio (%)

21.0

21.8

N/A

Disclaimer:

The information contained in
this press release does not constitute an offer or invitation to sell or the
solicitation of an offer or invitation to purchase or subscribe for units in
Sunlight REIT in Hong Kong or any other jurisdiction.

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