【REIT Performance】Sunshine Real Estate Fund final distribution of 9.1 cents, dividend yield approximately 7%, continued negative rental growth of 9.3%

Evergreen Properties (00012)
Sunshine Real Estate Investment Trust (00435)
Announced that due to a 16.1% reduction in interest expenses, last year’s distributable income only decreased by 2.1% to HKD 330 million. The final distribution per unit was HKD 0.091, with an annual distribution of HKD 0.182, representing a payout ratio of 96.1%. As of Wednesday’s close at HKD 2.59, the current dividend yield is approximately 7%.

Sunshine Real Estate Fund’s after-tax loss widened to HKD 275 million last year, with total revenue decreasing by 4.8% year-on-year to HKD 778 million. Net property income also fell by 5.3% to HKD 601 million.

As of the end of last year, Sunshine Real Estate Fund’s overall property portfolio occupancy rate was 90.6%, with an average renewal rate of 70%. The negative rental growth for renewals was 9.3%. The office and retail property portfolios had occupancy rates of 91.2% and 89.6%, respectively, with current average rents of HKD 31 and HKD 63.9 per square foot, down 3.4% and 2.6% year-on-year.

Dah Sing Financial Centre’s renewal rent saw a negative growth of 14.4% last year.

By the end of last year, Dah Sing Financial Centre’s occupancy rate was 91%, with renewal rent decreasing by 14.4%. Sheung Shui Centre Shopping Mall’s occupancy rate was 87.5%, with renewal rent declining by 10.7%. New Town Plaza Phase 1’s occupancy rate was approximately 87.1%, with renewal rent decreasing by 9%.

Sunshine Real Estate Fund stated that Hong Kong’s post-pandemic recovery has been unexpectedly challenging, with the commercial real estate sector bearing the brunt of multiple adverse developments. As a result, continued negative rental growth for renewals will continue to impact income performance.

Source: HKEX Announcement

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