Sunlight Real Estate Investment Trust : Operational Statistics of Sunlight Real Estate Investment Trust for the quarter ended 30 September 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 30 SEPTEMBER 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 first quarter of the financial year 2018/19 .

At 30 September 2018, the overall portfolio occupancy of Sunlight REIT was 97.7% (30 June 2018: 98.2%). The slight decline was mainly attributable to the higher vacancy recorded at Bonham Trade Centre ("BTC") in preparation for the upcoming asset enhancement initiative.

Passing rent of the overall portfolio was HK$47.1 per sq. ft. at 30 September 2018, representing a quarterly increase of 1.3%. Office and retail rental reversions, calculated on the basis of change in effective rent of the leases that have been renewed and commenced during the quarter, were 9.6% and 9.4% respectively.

During the quarter, Sunlight Tower continued to benefit from the favourable leasing environment and brisk demand for decentralized office spaces, as illustrated by its occupancy rate of 99.5% and a rental reversion of 12.2%. On the retail front, solid consumer sentiment supported the performances of Sheung Shui Centre Shopping Arcade and Metro City Phase I Property. Both shopping malls were almost fully occupied and achieved rental reversions of 8.6% and 11.4% respectively.

In respect of the Grade B office portfolio, the enhancement plan of BTC which is in the final planning stage, will involve the renovation (and vacating) of approximately 28% of its gross rentable area. Meanwhile, Fung Shun Commercial Building maintained full occupancy during the quarter under review. However, its vacancy rate is expected to rise transiently given that the existing (sole) office tenant will vacate more than half of the occupied area. As disclosed in Sunlight REIT's 2017/18 annual report, the Manager will capture this opportunity to execute minor facility upgrade and to diversify the trade profile of the property.

Operational statistics for the first quarter of the financial year 2018/19

Property

Location

Occupancy (%) 1 at 30 Sep 18 at 30 Jun 18

Passing Rent (HK$/sq. ft.) 2 at 30 Sep 18 at 30 Jun 18

Office Sunlight Tower Bonham Trade Centre

Fung Shun Commercial Building Winsome House Property

135 Bonham Strand Trade Centre Property

Wan Chai Sheung Wan Mong Kok Central Sheung Wan

99.5

98.5

38.6 38.2

85.7

93.0

30.1 29.8

100.0

100.0

47.3 47.3

97.1

100.0

43.1 42.8

98.5

100.0

28.2 27.6

Righteous Centre

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

Mong Kok Sheung Wan North Point Wan Chai Mong Kok Yau Ma Tei

98.8

98.8

34.7 34.5

98.9

96.0

22.0 21.7

98.1

94.2

24.8 24.7

100.0

100.0

30.7 30.4

100.0

100.0

21.6 21.6

93.1

100.0

15.0 14.5

Average

97.2

97.8

34.2

33.8

Retail

Sheung Shui Centre Shopping Arcade Metro City Phase I Property

Kwong Wah Plaza Property

Beverley Commercial Centre Property Supernova Stand Property

Sheung Shui Tseung Kwan O Yuen Long Tsim Sha Tsui North Point

99.5

98.9

116.8 115.9

99.5

99.8

56.3 55.8

97.2

100.0

53.4 52.1

89.5

82.9

44.7 44.5

100.0

100.0

54.0 54.0

Average

98.9

99.2

74.6

73.9

Average

97.7

98.2

47.1

46.5

Notes :

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

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

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 October 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.