Sunlight Real Estate Investment Trust (“Sunlight REIT”) Annual Results for the Year Ended 30 June 2019

Infusing Sustainability

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HONG KONG, CHINA - Media OutReach - 4 September 2019 - Henderson Sunlight
Asset Management Limited (the “Manager“)
is pleased to announce the final results of Sunlight REIT for the year ended 30
June 2019 (the “Year“).

 

Sunlight REIT
delivered a satisfactory set of results amidst a whirlwind of
global economic uncertainty, as reflected by a 5.6% year-on-year (“YoY“) rise in net property income (“NPI“) to HK$682.5
million. Annual distributable income recorded a 3.7% growth to HK$467.3
million.

 

The Board has
resolved to declare a final distribution of HK 14.1 cents per unit.
Coupled with an interim distribution of HK 13.2 cents per unit, the total distribution
per unit for the Year amounts to HK 27.3 cents, up 3.0%
YoY and represents a payout ratio of 96.4%.
 

 

At
30 June 2019, Sunlight REIT’s property portfolio was
appraised at HK$20,002.5 million, 6.7% higher than a year ago.
Meanwhile, its net asset value (“NAV“)
rose 7.6% to HK$15,991.9 million, which
translates to a NAV of HK$9.68 per unit.

 

Operating Highlights

 

The overall portfolio
of Sunlight REIT recorded an average occupancy rate of 95.3%
at 30 June 2019 (30 June 2018: 98.2%). The occupancy rates of the office and
retail portfolios were 94.0% and 98.1% (30 June 2018:
97.8% and 99.2%) respectively. Average passing rent of the office portfolio was
HK$35.5 per sq. ft., up 5.0%
YoY, while that of the retail portfolio rose 2.6% to HK$75.8
per sq. ft.. Average rental reversion of the portfolio was 11.4%.

 

Among the top three
properties of Sunlight REIT, Sunlight Tower continued to benefit from the
office decentralization momentum and stable leasing environment,
achieving an encouraging rental reversion of 13.5%. Meanwhile, supported
by a 13.4% rental reversion and effective cost-saving
measures, NPI of Sheung Shui Centre Shopping Arcade grew 6.9%
YoY. Metro City Phase I Property registered a 5.1% growth in NPI on the back of
a rental reversion of 11.5%, reflecting the Manager’s
continued efforts in trade mix optimization, effectively positioning the property as
a defensive service-oriented retail destination in the district.  

Mr. Wu Shiu Kee, Keith, Chief Executive Officer of the Manager said,
“Uncertainties on the macro-economic landscape, led by the US-China trade
tensions, will continue to cloud the outlook of the global economy. While
the downside risk of the office portfolio is expected to
be relatively low, prospects for the retail sector are clearly less certain.
Notwithstanding, the Manager will endeavour to navigate the businesses of
Sunlight REIT proactively and responsibly, with a view to infusing long-term
and sustainable value for the stakeholders.”         

 

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

 

Highlights of FY2018/19 Final Results:

(in HK$’ million, unless otherwise specified)

	2019	2018	Change (%)
For the year ended 30 June:
Revenue	850.7	817.4	4.1
Net property income	682.5	646.1	5.6
Cost-to-income ratio (%)	19.8	21.0	N/A
Profit after taxation	1,591.1	1,442.3	10.3
Annual distributable income	467.3	450.5	3.7
Distribution per unit (HK cents)	27.3	26.5	3.0
Payout ratio (%)	96.4	96.7	N/A
At 30 June:
Portfolio valuation	20,002.5	18,754.8	6.7
Net asset value	15,991.9	14,857.0	7.6
Net asset value per unit (HK$)	9.68	9.03	7.2
Gearing ratio (%)	20.4	21.8	N/A

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) and has been listed on The
Stock Exchange of Hong Kong Limited on 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 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 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.

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.