Sunlight REIT asset in Kowloon, West 9 Zone KidsSunlight REIT asset in Kowloon, West 9 Zone Kids

Data from Sunlight REIT’s latest disclosure is in the Hong Kong REITs table

Sunlight REIT has reported lower revenue, net property income, and distributions for its financial year that ended on 30 June.

The REIT has attributed its results to “a cyclical downswing of the commercial property market, notably the office sector”.

Its net property income (NPI) exhibited fell by 2.8% year-on-year to HKD624.0 million.

“Given a steep increase in interest rates which resulted in a significant surge in interest expense, annual distributable income for the year was down 11.8% year on year to HKD380.3 million”, said the REIT.

As at 30 June 2023, the overall portfolio of Sunlight REIT registered an occupancy rate of 93.3%, down from 94.7% a year ago.

Sunlight REIT’s board has resolved to declare a final distribution of HKD 11.0 cents per unit.

Coupled with an interim distribution of HKD 11.0 cents per unit, total distribution per unit for the year would amount to HKD 22.0 cents.

Sunlight REIT was last done on the HKSE at HKD2.71, which currently implies a distribution yield of 8.12% according to data on the Hong Kong REITs table.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.