COMMERCIAL PROPERTY | Staff Reporter, Hong Kong

Sunlight REIT sees 8.6% revenue loss in H2 2020

The REIT’s net property income also fell by 7.6%.

Sunlight REIT saw a 8.6% revenue decline to $399.5m for the last six months until 31 December 2020, according to interim results revealed by REIT manager Henderson Sunlight Asset Management.

Net property income also fell by 7.6% to $319.5m. The losses reflected the “unfavourable operating environment” caused by the pandemic outbreak.

Overall occupancy rate of the Sunlight REIT’s portfolio for the reporting period was at 91.5%, lower than the 95.7% figure recorded on 30 June 2020, mainly due to lower office occupancy rate (90.1%). On the other hand, the retail occupancy rate at 94.5% was reportedly “reasonably satisfactory”.

“Whilst lower occupancy rates, negative rental reversions, and the impact of rental concessions are set to stay, their adverse effects should be less pronounced, barring unforeseen circumstances,” said Wu Shiu Kee, Keith, CEO of Henderson Sunlight Asset Management. “On a more encouraging note, Sunlight REIT stands to benefit from contributions from new tenants such as Dah Sing Bank, stringent cost containment measures as well as proactive financing initiatives implemented by the manager.”

On that note, the board declared an interim distribution per unit of 12.5 cents (a 94.7% payout ratio) and an annualised distribution yield of 6.6%.

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