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News From Hong Kong

  • Written by Media Outreach

Infusing Sustainability

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 ofthe global economy. While the downside risk of the office portfolio is expectedto 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

Authors: Media Outreach

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