Sunlight REIT's NPI drops 5.3% YoY in 2025

The REIT also posted declines in revenue and distributable income.

Sunlight Real Estate Investment Trust (Sunlight REIT) reported a net property income of $601.0m for the year ended 31 December 2025, a 5.3% decline from the previous year, according to its financial statement.

The REIT’s revenue also fell 4.8% to $778.1m, whilst distributable income slipped 2.1% to $330.2m, due to a 16.1% saving in interest expense.

The board declared a final distribution of 9.1 cents per unit, bringing the full-year distribution to 18.2 cents. This represents a 96.1% payout ratio and a 7.7% yield based on the year-end unit price of $2.35.

Portfolio occupancy was 90.6%, as the office segment recorded 91.2% occupancy with average rents of $31.0 per square foot, and retail recorded 89.6% occupancy with average rents of $63.9 per sq ft.

The appraisal value of the portfolio reached $17.4b, whilst net asset value stood at $12.4b or $7.09 per unit.

In capital management, the manager completed refinancing for $2.98b in borrowings. All term loans follow sustainability-linked structures.

The REIT also earned a five-star Global Real Estate Sustainability Benchmark rating, the statement said.

Au Siu Kee, Chairman of Henderson Sunlight Asset Management Limited, stated that management’s focus includes cost management and portfolio optimisation whilst leveraging technology.