Sunlight REIT distributable income dips

Gordon Yang

Henderson Land Development's (0012) Sunlight Real Estate Investment Trust (0435) saw distributable income fall 2.1 percent to HK$337.3 million for the 12 months in 2024 from a year ago.

Revenue rose slightly by 0.4 percent to HK$817.1 million while net property income fell by 0.8 percent to HK$634.5 million, according to a filing.

Amid sluggish leasing demand and challenges faced by the retail sector, the duration of rental voids has become and will continue to be a key factor influencing income, it said.

The reporting period was extended to 18 months following the change in the financial year-end date from June 30 to December 31, leading to adjustments in the results.

Distributable income rose by 31.4 percent to HK$499.7 million during the reporting period, while revenue surged 57.8 percent to HK$1.24 billion. And net property income grew 53 percent to HK$ 957.7 million.

As of end-December, Sunlight REIT's overall portfolio occupancy rate fell by 2 percentage points to 91.3 percent, with office and retail portfolios down by 1.1 and 3.4 percentage points to 92.0 percent and 90.1 percent, respectively. The office portfolio retention rate fell to 65 percent from 74 percent, while the retail portfolio remained at 79 percent.

During the period, the office portfolio's average rent fell 7.2 percent to HK$32.1 per square foot, while the retail portfolio remained steady at HK$65.6 per sq ft.