Sunlight Real Estate Investment Trust : Operational Statistics of Sunlight Real Estate Investment Trust for the quarter ended 31 March 2018

The Securities and Futures Commission of Hong Kong, Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Sunlight Real Estate Investment Trust

(a Hong Kong collective investment scheme authorized under section 104 of the Securities and Futures Ordinance

(Chapter 571 of the Laws of Hong Kong))

(Stock Code : 435)

Managed by

Henderson Sunlight Asset Management Limited

恒基陽光資產管理有限公司

OPERATIONAL STATISTICS OF SUNLIGHT REAL ESTATE INVESTMENT TRUST

FOR THE QUARTER ENDED 31 MARCH 2018

Henderson Sunlight Asset Management Limited (the "Manager"), as manager of Sunlight Real Estate Investment Trust ("Sunlight REIT"), is pleased to announce the operational statistics of Sunlight REIT for the third quarter of the financial year ending 30 June 2018 ("FY2017/18").

At 97.7%, the overall portfolio occupancy1 of Sunlight REIT at 31 March 2018 was virtually unchanged from the previous quarter. Office occupancy experienced a slight improvement to 97.5% (31 December 2017: 97.3%), while that of the retail portfolio dropped slightly to 98.3% (31 December 2017: 98.7%1).

Passing rent of the overall portfolio was HK$46.3 per sq. ft. at 31 March 2018, while the average rental reversion for the quarter was 5.5%.

In respect of the office portfolio, Sunlight Tower's occupancy improved to 98.2% with a 6.5% rental reversion, while the Sheung Wan and Central office portfolio exhibited a stable performance, demonstrating the resilient demand for inexpensive office space at decentralized locations. The transitory jump in vacancy at Java Road 108 Commercial Centre was mainly due to the clustering of certain non-renewal cases during the quarter.

On the retail front, the portfolio continued to ride on the recovery of the retail sector, as evidenced by the decent performance of Metro City Phase I Property which recorded an 8.3% rental reversion for the quarter. For Sheung Shui Centre Shopping Arcade, its level of occupancy continued to improve, while the negative rental reversion figure should not be a concerning feature, as it did not reflect the more dominant new letting activities in tandem with the ongoing tenant reconfiguration initiatives.

Key operational statistics for the third quarter of FY2017/18

Property

Office Sunlight Tower Bonham Trade Centre

96.3

37.9

37.7 6.5

92.7

95.6

29.6

29.5 9.2

Fung Shun Commercial Building Winsome House Property

100.0

100.0

47.3

47.3

N/A

100.0

94.3

42.7

42.9 6.7

135 Bonham Strand Trade Centre Property

100.0

100.0

27.5

27.2 10.3

Righteous Centre

98.9

100.0

34.4

34.2 8.8

235 Wing Lok Street Trade Centre Java Road 108 Commercial Centre On Loong Commercial Building Sun Fai Commercial Centre Property Wai Ching Commercial Building Property

96.0

96.3

21.5

21.3 8.2

92.3

100.0

24.6

24.2 7.3

100.0

100.0

30.4

97.7

100.0

20.3

100.0

100.0

14.3

30.4 21.7 14.2

N/A (5.7) 9.7

Average

97.5

97.3

33.6

33.4

6.8

Retail

Sheung Shui Centre Shopping Arcade Metro City Phase I Property

97.9 98.4

97.4 99.6

116.2

117.5 (2.1)

55.3

54.9 8.3

Kwong Wah Plaza Property

Beverley Commercial Centre Property Supernova Stand Property

100.0 86.6 100.0

100.0 85.4 100.0

52.1

52.6 5.0

44.3

44.4 (8.7)

Average

Average

98.3 97.7

98.7 1 97.7 1

54.0 73.7 46.3

54.0

73.8 1 46.2 1

N/A 3.8 5.5

Notes :

• 1. These figures have been adjusted to reflect the disposal of the Palatial Stand Property completed on 25 January

  2018.

• 2. Calculated on the basis of occupied gross rentable area ("GRA") as a proportion of total GRA on the relevant date.

• 3. Calculated on the basis of average rent per sq. ft. for occupied GRA on the relevant date.

• 4. Calculated on the basis of change in effective rent of the leases renewed and commenced during the relevant period.

By order of the Board

HENDERSON SUNLIGHT ASSET MANAGEMENT LIMITED 恒基陽光資產管理有限公司

(as manager of Sunlight Real Estate Investment Trust)

CHUNG Siu Wah

Company Secretary

Hong Kong, 11 April 2018

At the date of this announcement, the board of directors of the Manager comprises : (1) Chairman and Non-executive Director : Mr. AU Siu Kee, Alexander; (2) Chief Executive Officer and Executive Director : Mr. WU Shiu Kee, Keith; (3) Non-executive Director : Mr. KWOK Ping Ho; and (4) Independent Non-executive Directors : Mr. KWAN Kai Cheong, Mr. MA Kwong Wing, Dr. TSE Kwok Sang and Mr. KWOK Tun Ho, Chester.