Infusing Sustainability

HONG KONG, CHINA - Media OutReach - 4 September 2019 - Henderson SunlightAsset Management Limited (the "Manager")is pleased to announce the final results of Sunlight REIT for the year ended 30June 2019 (the "Year").

Sunlight REITdelivered a satisfactory set of results amidst a whirlwind ofglobal economic uncertainty, as reflected by a 5.6% year-on-year ("YoY") rise in net property income ("NPI") to HK$682.5million. Annual distributable income recorded a 3.7% growth to HK$467.3million.

The Board hasresolved 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 distributionper unit for the Year amounts to HK 27.3 cents, up 3.0%YoY and represents a payout ratio of 96.4%. 

At30 June 2019, Sunlight REIT's property portfolio wasappraised 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, whichtranslates to a NAV of HK$9.68 per unit.

Operating Highlights

The overall portfolioof 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 andretail portfolios were 94.0% and 98.1% (30 June 2018:97.8% and 99.2%) respectively. Average passing rent of the office portfolio wasHK$35.5 per sq. ft., up 5.0%YoY, while that of the retail portfolio rose 2.6% to HK$75.8per sq. ft.. Average rental reversion of the portfolio was 11.4%.

Among the top threeproperties of Sunlight REIT, Sunlight Tower continued to benefit from theoffice decentralization momentum and stable leasing environment,achieving an encouraging rental reversion of 13.5%. Meanwhile, supportedby a 13.4% rental reversion and effective cost-savingmeasures, 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 ofa rental reversion of 11.5%, reflecting the Manager'scontinued efforts in trade mix optimization, effectively positioning the property asa 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 tradetensions, will continue to cloud the outlook of the global economy. Whilethe downside risk of the office portfolio is expected tobe relatively low, prospects for the retail sector are clearly less certain.Notwithstanding, the Manager will endeavour to navigate the businesses ofSunlight REIT proactively and responsibly, with a view to infusing long-termand sustainable value for the stakeholders."         

Remarks: Attached highlights of FY2018/19 Final Resultsof Sunlight REIT.

Highlights of FY2018/19 Final Results:

(in HK$' million, unless otherwise specified)

About Sunlight REIT

Sunlight REIT (Stockcode: 435) is a real estate investment trust authorized by the Securities andFutures Commission and constituted by the trust deed dated 26 May 2006 (asamended and supplemented by six supplemental deeds) and has been listed on TheStock Exchange of Hong Kong Limited on 21 December 2006. Sunlight REIT offersinvestors the opportunity to invest in a diversified portfolio of 11 office andfive retail properties in Hong Kong with a total gross rentable area ofapproximately 1.2 million sq. ft.. The office properties are located in corebusiness areas, including Wan Chai and Sheung Wan/Central, as well as indecentralized business areas such as Mong Kok and North Point. The retailproperties are situated in regional transportation hubs and new towns includingSheung Shui, Tseung Kwan O and Yuen Long, as well as in urban areas with highpopulation density.

About the Manager

The Manager ofSunlight REIT is an indirect wholly-owned subsidiary of Henderson LandDevelopment Company Limited (恒基兆業地產有限公司); its responsibility is to manage SunlightREIT in the sole interest of the unitholders in accordance with the Trust Deed.

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.