Sunlight Real Estate Investment Trust (0435) said its distributable income dipped by 2.7 percent to HK$164 million for the six months ended June.
Distribution per unit dropped by 3.3 percent to 8.8 HK cents, with a payout ratio of 94.3 percent.
Loss for the period narrowed by 28 percent to HK$124 million.
After deducting property operating expenses of HK$82.7 million, net property income came in at HK$299.7 million for the period.
The overall occupancy rate of Sunlight REIT’s portfolio inched up to 90.8 percent as of June.
Occupancy rates of the office and retail portfolios came in at 92.0 percent and 88.4 percent, respectively, while their corresponding passing rents were HK$30.6 per square foot. and HK$62.2 per sq ft, down 1.3 percent and 2.7 percent from six months ago.
While transaction volumes have clearly improved on the back of stronger end-user demand, particularly for conversion into student hostels, asset prices have yet to recover meaningfully as distress-driven transactions are still evident, the firm said.
The retail sector is likely to remain challenging amid changing consumption habits, it added.
