Sunlight Real Estate Investment Trust (“Sunlight REIT”) Interim Results for the Six Months Ended 31 December 2021

HONG KONG
SAR – Media
OutReach – 15 February 2022 – Henderson Sunlight
Asset Management Limited (the “Manager“)
announces the interim results of Sunlight REIT for the six months ended 31
December 2021 (the “Reporting Period“).

 

Reflecting a higher average occupancy rate and a lower amortized rental
concession, Sunlight REIT recorded a 1.2% year-on-year increase in revenue to
HK$404.3 million for the Reporting Period, while net property income (“NPI“) was also up
1.2% to HK$323.4 million.

The Board has resolved to declare an interim distribution per unit of HK
12.2 cents, representing a payout ratio of 94.2% and an
annualized distribution yield of 5.6% based on the closing price of HK$4.34 on the last
trading day of the Reporting Period.

The portfolio of
Sunlight REIT was appraised at HK$18,396.9 million at 31 December 2021,
representing a mild increase of 0.3% from 30 June 2021. Meanwhile, net assets
of Sunlight REIT grew 0.8% to HK$14,230.5 million, which translates to a net
asset value of HK$8.48 per unit.

Highlights of Interim
Results

The overall occupancy rate of Sunlight REIT’s portfolio at 31 December
2021 was 94.5% as compared to 93.7% at 30 June 2021. Office occupancy rate rose
to 93.3% (30 June 2021: 92.4%), while occupancy rate for the retail portfolio increased
to 97.1% (30 June 2021: 96.5%). For the
Reporting Period, the office and retail portfolios registered negative rental
reversions of 4.5% and 4.9% respectively.

In respect of the performance of major properties, occupancy rate of Dah Sing Financial Centre (“DSFC“) has shown reasonable
improvement to 91.6% at 31 December 2021, mainly driven by new letting
commitments from domestic corporations. In addition, its NPI grew 4.8% year on
year to HK$87.6 million. Metro City Phase I Property recorded a high occupancy
rate of 99.3%, with a mild 1.5% year-on-year increase in NPI to HK$67.4 million.
In contrast, Sheung Shui Centre Shopping Arcade saw a 4.1% year-on-year decline
in NPI to HK$69.9 million on
the back of a lower occupancy rate of 94.6% and a decrease in passing rent
given a diminished presence of high-margin trades.

The Manager maintains its pledge to advance sustainability. During the
Reporting Period, Sunlight REIT entered into a secured sustainability-linked
loan of HK$500 million with a tenure of 4.5 years. Meanwhile, its Sheung
Wan-based Strand 50 has been awarded Excellent gradeNote under BEAM
Plus V2.0 (Selective Scheme). Together with the successful renewal of DSFC as a
BEAM Plus platinum-rated building (Comprehensive Scheme), this achievement amply
illustrates the passion of the Manager for managing a greener portfolio which forms an
integral part of the sustainability endeavours of Sunlight REIT.

Note : In Materials and Waste, and Indoor Environmental Quality aspects.

Mr. Wu Shiu Kee, Keith, Chief Executive
Officer
of the Manager said, “Despite myriad uncertainties, it is not doom
and gloom. Given a diversified and quality asset base, Sunlight REIT is
relatively well placed to withstand the impact of swinging market conditions. Barring
unforeseen circumstances, the Manager believes that the prospects for Sunlight
REIT remain solid, while fully committed to caring about the health and safety
of our tenants, customers and staff.”

Remarks: Attached financial highlights of FY2021/22 interim results of
Sunlight REIT.

Financial Highlights of FY2021/22 Interim Results:

(in HK$’
million, unless otherwise specified)

 

 

 

          Six months ended

 

         31 December 2021

 

 

        Six
months ended

 

       31 December
2020

 

 

                       Change

 

                                (%)

 

 

Revenue

 

 

404.3

 

 

399.5

 

 

1.2

 

 

Net property income

 

 

323.4

 

 

319.5

 

 

1.2

 

 

Profit/(loss) after taxation Note

 

 

234.2

 

 

(194.1)

 

 

N/A

 

 

Distributable income

 

 

217.2

 

 

220.0

 

 

(1.3)

 

 

Distribution per unit (HK cents)

 

 

12.2

 

 

12.5

 

 

(2.4)

 

 

Payout ratio (%)

 

 

94.2

 

 

94.7

 

 

                N/A

 

 

 

 

 

 

At 31 December 2021

 

 

             At 30 June 2021

 

 

 

                       Change

 

                                (%)

 

 

Portfolio valuation

 

 

18,396.9

 

 

18,341.7

 

 

0.3

 

 

Net asset value

 

 

14,230.5

 

 

14,124.3

 

 

0.8

 

 

Net asset value per unit (HK$)

 

 

8.48

 

 

8.45

 

 

0.4

 

 

Gearing ratio (%)

 

 

23.0

 

 

23.0

 

 

                                     N/A

 

Note:  Included an increase in fair value of
investment properties of HK$49.7 million (versus a fair value loss of HK$380.2
million for the six months ended 31 December 2020).

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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