Operational Highlights for the Reporting Period From 29 April 2021 ("Date of Establishment") to 30 June 2021

• Revenue and net property income for the Reporting Period were HK$50.7 million and HK$42.2 million, respectively.
• Total appraised value of the Properties was HK$6,446.0 million as at 30 June 2021, up by 5.7% as compared to the last valuation as at 31 March 2021.
• Steady operating performance with average occupancy rate of the Properties maintained at 95.7%.
• Long term leases with SFH Group tenants provide high degree of income stability.
• SF REIT will continue to work closely with SFH Group to pursue acquisition opportunities.

HONG KONG SAR - Media OutReach - 26 August 2021 - SF Real Estate Investment Trust ("SF REIT", SEHK: 2191), the first logistics-focused REIT listed in Hong Kong, announces its first set of interim results for the period from 29 April 2021 (Date of Establishment) to 30 June 2021 (the "Reporting Period").

SF REIT recorded a revenue and net property income of HK$50.7 million and HK$42.2 million, respectively during the Reporting Period. Income available for distribution amounted to HK$26.7 million. Total independently appraised value of the Properties was HK$6,446.0 million as at 30 June 2021, up by 5.7% as compared to the last valuation as at 31 March 2021.

Strong Demand for Modern Logistics and Warehousing Support

SF REIT's current property portfolio comprises three properties located, respectively, in Hong Kong (the "Hong Kong Property"), Foshan (the "Foshan Property") and Wuhu (the "Wuhu Property") (collectively, the "Properties"). All of them are modern logistics properties comprising distribution centres equipped with automatic sorting and supply chain support facilities and located strategically within the key logistics hubs in Hong Kong and Mainland China.

SF REIT is poised to benefit from the growth of the e-commerce market in Hong Kong and Mainland China which has witnessed rising demand for comprehensive logistics and warehousing support for merchandise storage and distribution. The outbreak of the COVID-19 pandemic has also accelerated structural changes in consumers' spending habits and retailers' supply chain management, driving retailers and suppliers to modernise and improve their logistics facilities and capabilities accordingly.

Stable Tenant Base, High Income Stability

As at 30 June 2021, the average occupancy rate of the Properties was 95.7% with that of the Hong Kong Property, the Foshan Property and the Wuhu Property recording 92.6%, 100.0% and 97.9% respectively.

The Properties housed a total of 32 tenants, with the controlling unitholder SF Holding Co. Ltd. and its subsidiaries (collectively "SFH Group") occupying 80.0% of the gross lettable area ("GLA") and contribute approximately 76.6% of the total gross rental income for the Reporting Period. Approximately 86.1% of the tenants (in terms of GLA) were from the logistics sector and the remaining tenants included those from the pharmaceutical, food supply and other sectors. The Properties had a weighted average lease expiry of 4.4 years by GLA as at 30 June 2021.

As at 30 June 2021, the Hong Kong Property housed a total of 8 tenants with approximately 65.9% of its GLA leased to the SFH Group. As at 30 June 2021, the Foshan Property was substantially leased to the SFH Group which was operated mainly as a modern logistics property for regional distribution purposes while the Wuhu Property housed a total of 22 tenants, with approximately 89.1% of the property's GLA leased to the SFH Group.

All subsisting leases to the SFH Group are for a term of five years commencing 1 May 2021 and the rent payable under these leases is fixed for each of the term, with a yearly increment of 3% to 5% depending on the location of the Property. Given certain facilities were specifically built to suit the operational needs of the SFH Group, this arrangement is mutually beneficial and provides a high degree of income stability to SF REIT.

First distribution to be paid by End of May 2022

SF REIT is required by its trust deed to distribute to Unitholders an amount of no less than 90% of SF REIT's annual distributable income for each financial year. For the first year of its listing, as disclosed in the offering document, SF REIT intends to distribute 100% of the annual distributable income for the period from the listing date to 31 December 2021 by the end of May 2022.

Hong Kong and Mainland China Policies Expected to Drive Logistics and e-Commerce Markets

While the global economy is still clouded by the unstable pandemic situation, it is expected that favourable government policies in Hong Kong and Mainland China will continue to encourage the growth of the modern logistics property market. SF REIT will continue to work closely with the SFH Group to pursue acquisition opportunities of modern logistics properties with income and capital growth potential, be they derived from the SFH Group or from third parties, to provide sustainable returns to Unitholders and to enhance asset value.

About SF Real Estate Investment Trust

SF REIT is the first logistics-focused REIT listed in Hong Kong. SF REIT's portfolio initially comprises three properties in Hong Kong, Foshan and Wuhu, all of which are modern logistics properties comprising distribution centres equipped with automatic sorting and supply chain support facilities, strategically located within the key logistics hubs in Hong Kong and the PRC.

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