Sunlight Real Estate Investment Trust (“Sunlight REIT”) Final Results for the Year Ended 30 June 2023

HONG KONG SAR – Media OutReach – 6 September 2023 – Henderson Daylight Asset Administration Restricted (the “Supervisor“) pronounces the ultimate outcomes of Daylight REIT for the yr ended 30 June 2023 (the “Yr“).

Whereas the Hong Kong financial system staged a rebound within the second half of the Yr, the efficiency of Daylight REIT was considerably marred by a cyclical downswing of the industrial property market, notably the workplace sector. Consequently, internet property revenue (“NPI”) exhibited a light 2.8% year-on-year lower to HK$624.0 million. Given a steep enhance in rates of interest which resulted in a big surge in curiosity expense, annual distributable revenue for the Yr was down 11.8% yr on yr to HK$380.3 million.

The Board has resolved to declare a last distribution of HK 11.0 cents per unit. Coupled with an interim distribution of HK 11.0 cents per unit, complete distribution per unit for the Yr would quantity to HK 22.0 cents, representing a payout ratio of 97.9% versus 97.4% within the previous yr, whereas the distribution yield was 7.6% based mostly on the closing worth of HK$2.88 on the final buying and selling day of the Yr.

With a maiden contribution from the acquisition of West 9 Zone Youngsters accomplished in April 2023, the appraised worth of Daylight REIT’s property portfolio elevated to HK$18,512.2 million at 30 June 2023. Its internet asset worth was HK$13,669.2 million at 30 June 2023, or HK$8.06 per unit.

Working Highlights

At 30 June 2023, the general portfolio of Daylight REIT registered an occupancy charge of 93.3% (30 June 2022: 94.7%), with a median rental reversion of damaging 2.3%. The common passing rents of the workplace and retail portfolios have been HK$34.6 per sq. ft. and HK$65.6 per sq. ft. respectively, down 1.4% and three.0% as in comparison with a yr in the past.

Towards the unfavourable workplace market dynamics, NPI of Dah Sing Monetary Centre for the Yr was down 4.5% to HK$170.5 million, whereas its occupancy charge exhibited a light rebound from six months in the past to 90.4% at 30 June 2023.

In respect of the retail portfolio, NPI of Sheung Shui Centre Procuring Arcade recorded a 3.0% year-on-year decline to HK$135.4 million. Its occupancy charge achieved a pleasant rebound to 97.6% at 30 June 2023, principally pushed by a spate of high quality tenants re-establishing their presence on this well-located retail property. In the meantime, NPI of Metro Metropolis Section I Property registered a 7.9% year-on-year decline to HK$124.7 million, whereas its occupancy charge recorded a drop to 92.2% at 30 June 2023.

In the course of the Yr, the Supervisor has additional sharpened its concentrate on sustainability and continued to handle the portfolio with a extra holistic and greener method. Specifically, Daylight REIT attained a two-star score in its first try on the 2022 GRESB Actual Property Evaluation, whereas about 70% of its complete borrowings at 30 June 2023 have been sustainability-linked loans.

Mr. Au Siu Kee, Alexander, Chairman of the Supervisor mentioned, “In view of the fluidity of the macro surroundings, prudence stays the strategic precedence. Particularly, our effort to make sure a powerful monetary footing for Daylight REIT ought to assist it sail by way of the prevailing tight credit score situations. Higher nonetheless, we’ve got been in a position to marshal sources to develop and strengthen the retail portfolio of Daylight REIT, rendering it higher potential to profit from a consumption restoration.”

Remarks: Hooked up monetary highlights of FY2022/23 last outcomes of Daylight REIT.

Monetary Highlights of FY2022/23 Closing Outcomes:

(in HK$’ million, until in any other case specified)

Be aware: Included a lower in truthful worth of funding properties of HK$354.4 million (versus a lower in truthful worth of HK$263.9 million for the yr ended 30 June 2022).

Disclaimer: The data contained on this press launch doesn’t represent a proposal or invitation to promote or the solicitation of a proposal or invitation to buy or subscribe for models in Daylight REIT in Hong Kong or another jurisdiction.
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The issuer is solely liable for the content material of this announcement.

About Daylight REIT

Listed on The Inventory Alternate of Hong Kong Restricted since 21 December 2006, Daylight REIT (inventory code: 435) is an actual property funding belief licensed by the Securities and Futures Fee, and constituted by the amended and restated belief deed dated 10 Could 2021 (the “Belief Deed“). It affords traders the chance to put money into a diversified portfolio of 11 workplace and 6 retail properties in Hong Kong with a complete gross rentable space of roughly 1.3 million sq. ft.. The workplace properties are positioned in each core and decentralized enterprise areas, whereas the retail properties are located in regional transportation hubs, new cities and concrete areas with excessive inhabitants density.

Concerning the Supervisor

The Supervisor of Daylight REIT is an oblique wholly-owned subsidiary of Henderson Land Growth Firm Restricted. Its most important duty is to handle Daylight REIT and all of its property in accordance with the Belief Deed within the sole curiosity of its unitholders.