Sunlight Real Estate Investment Trust (“Sunlight REIT”) Operational Statistics for the Quarter Ended 31 March 2020

HONG KONG, CHINA – Media OutReach – 27 April 2020 – Henderson Sunlight
Asset Management Limited (the “Manager“),
as manager of Sunlight Real Estate Investment Trust (“Sunlight REIT“), announces the operational statistics of Sunlight
REIT for the third quarter of the financial year 2019/20.

 

At 31 March 2020, the
occupancy rate of Sunlight REIT’s portfolio was 95.9% as compared to 96.1% at
31 December 2019.  Office occupancy rate
was largely unchanged at 95.6% (31 December 2019: 95.7%), while retail
occupancy rate recorded a slight decrease to 96.4% (31 December 2019: 97.1%),
principally caused by a higher vacancy rate at Metro City Phase I Property (“MCPI“).

 

Average passing rent
of Sunlight REIT’s portfolio was HK$49.3 per sq. ft. at 31 March 2020, while
office and retail rental reversions for the quarter were 10.3% and 2.5%
respectively.  The reported statistics
reflected the relatively stable office leasing demand in decentralized business
areas where Sunlight REIT has a reasonable presence; however, they also
signified an exceptionally difficult retail environment attributable to the
COVID-19 outbreak.  The Manager envisages
that slower and/or negative rental reversion would be a more predominant
feature for the retail portfolio until the COVID-19 situation comes under
control. 

 

In respect of the
operating performance of Sunlight REIT’s key office properties, Sunlight Tower
demonstrated its resilience in the midst of mounting economic headwinds, as its
occupancy rate stayed at 96.4% with a decent rental reversion of 17.1% for the
quarter.  Meanwhile, Strand 50’s
occupancy rate improved to 91.7%, as the renovation project involving the low
zone of the building was nearing completion.

 

On the retail front,
occupancy rate of MCPI decreased to 95.8% while rental reversion for the
quarter was 1.4%.  For Sheung Shui Centre
Shopping Arcade, its occupancy rate stayed at a satisfactory level of 96.3%;
however, the severe disruption to retail sales had clearly heightened tenants’
caution, resulting in a negative rental reversion of 1.3% for the quarter.

Remarks: Attached operational statistics of Sunlight REIT
for the third quarter of the financial year 2019/20.

 

Operational statistics for the third quarter of the
financial year 2019/20

Property	Location	Occupancy Rate (%) 1		Passing Rent (HK$/sq. ft.) 2
		at 31 Mar 20	at 31 Dec 19	at 31 Mar 20	at 31 Dec 19
Office
Sunlight Tower	Wan Chai	96.4	96.4	40.8	40.6
Strand 50	Sheung Wan	91.7	90.9	35.7	35.6
The Harvest	Mong Kok	100.0	100.0	51.4	51.4
135 Bonham Strand Trade Centre Property	Sheung Wan	95.8	98.0	30.1	30.1
Winsome House Property	Central	96.1	98.9	44.8	44.4
Righteous Centre	Mong Kok	98.5	98.9	35.4	36.1
235 Wing Lok Street Trade Centre	Sheung Wan	90.2	86.8	22.7	22.8
Java Road 108 Commercial Centre	North Point	100.0	100.0	26.4	26.4
On Loong Commercial Building	Wan Chai	96.0	98.0	32.7	32.6
Sun Fai Commercial Centre Property	Mong Kok	95.0	95.0	23.5	23.7
Wai Ching Commercial Building Property	Yau Ma Tei	94.5	94.5	17.7	17.4
Average		95.6	95.7	36.7	36.6
Retail
Sheung Shui Centre Shopping Arcade	Sheung Shui	96.3	96.4	118.1	118.6
Metro City Phase I Property	Tseung Kwan O	95.8	97.2	58.5	58.9
Kwong Wah Plaza Property	Yuen Long	100.0	100.0	55.6	55.3
Beverley Commercial Centre Property	Tsim Sha Tsui	78.0	77.4	42.2	42.5
Supernova Stand Property	North Point	100.0	100.0	54.5	54.5
Average		96.4	97.1	76.3	76.5
Average		95.9	96.1	49.3	49.4

Notes:
1.        
Calculated on the basis of occupied
gross rentable area (“GRA“) as a
proportion of total GRA on the relevant date.
2.        
Calculated on the basis of average
rent per sq. ft. for occupied GRA on the relevant date.

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 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 over 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 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 (恒基兆業地產有限公司); its main
responsibility is to manage Sunlight REIT and all of its assets
in accordance with the Trust Deed in the sole interest of its unitholders.

 

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.