Extending Care

HONG KONG,CHINA - Media OutReach - 8September 2020 - HendersonSunlight Asset Management Limited (the "Manager")is pleased to report the final results of Sunlight REIT for the year ended 30June 2020 (the "Year").

Despiteunprecedented challenges during the Year, Sunlight REIT managed to deliver reasonablyrespectable results, registering a 0.3% year-on-year ("YoY") rise in net property income ("NPI") to HK$684.7 million. Annual distributable income was HK$467.0million, virtually unchanged from last year.

The Boardhas resolved to declare a final distribution of HK 13.6cents per unit. Coupled with an interim distribution of HK 13.2 cents per unit,the total distribution per unit for the Year would amount to HK 26.8cents, down 1.8% YoY. The implied payout ratio is 95.2%,compared with 96.4% in the preceding year.  

At30 June 2020, the value of Sunlight REIT's property portfolio was appraised at HK$18,918.0 million, 5.4% lowerthan a year ago; accordingly,its net asset value declined by 7.6% to HK$14,771.2 million, or HK$8.89 perunit.

Operating Highlights

At 30 June2020, average occupancy rate of the entire portfolio of Sunlight REIT increasedto 95.7% (30 June 2019: 95.3%). Contrary to the office portfolio whichregistered an improvement in occupancy rate to 95.6% (30 June 2019: 94.0%),occupancy rate of the retail properties dropped to 95.8% (30 June 2019: 98.1%),reflecting the emerging negative impact of an economic recession and weakeningconsumer confidence. Average passing rent of the office portfolio was HK$36.5per sq. ft., up 2.8% YoY, while that of the retail portfolio was HK$74.8 persq. ft., down 1.3% as compared to a year ago. Average rental reversion of theportfolio for the Year was 6.0%.

Of the topthree properties of Sunlight REIT, performance of the two shopping malls,namely Sheung Shui Centre Shopping Arcade ("SSC") and Metro City Phase I Property ("MCPI") were inevitably affected by weak local consumer sentimentand a virtually standstill of inbound tourism. NPI of SSC declined by 6.2%,while the corresponding figure of MCPI remained stable. Gratifyingly, NPI ofSunlight Tower registered a YoY growth of 4.5%.

Mr. Wu Shiu Kee, Keith, Chief ExecutiveOfficerof the Manager said, "The near-term prospects for Sunlight REIT are expected tobe challenging. However, with a defensive portfolio, firm financial footing supportedby clear strategic priorities, we believe that Sunlight REIT is well positionedto capitalize on new opportunities and expand its footprint for the long-termbenefits of unitholders."

Remarks: Attached highlights of FY2019/20 Final Results of Sunlight REIT.

Highlightsof FY2019/20 Final Results:

(in HK$' million, unless otherwisespecified)

Disclaimer:The information contained in this press release does not constitute an offer orinvitation to sell or the solicitation of an offer or invitation to purchase orsubscribe for units in Sunlight REIT in Hong Kong or any other jurisdiction. 

About Sunlight REIT

SunlightREIT (Stock code: 435) is a real estate investment trust authorized by theSecurities and Futures Commission and constituted by the trust deed dated 26May 2006 (as amended and supplemented by six supplemental deeds) (the "TrustDeed"), and has been listed on The Stock Exchange of Hong Kong Limited on21 December 2006. Sunlight REIT offers investors the opportunity to invest in adiversified portfolio of 11 office and five retail properties in Hong Kong witha total gross rentable area of over 1.2 million sq. ft.. The office propertiesare primarily located in core business areas, including Wan Chai and SheungWan, as well as in decentralized business areas such as Mong Kok and NorthPoint. The key retail properties are situated in regional transportation hubsand new towns including Sheung Shui, Tseung Kwan O and Yuen Long.

About the Manager

The Managerof Sunlight REIT is an indirect wholly-owned subsidiary of Henderson Land DevelopmentCompany Limited (恒基兆業地產有限公司). Its mainresponsibility is to manage Sunlight REIT and all of its assets in accordancewith the Trust Deed in the sole interest of its unitholders.