[ET Net News Agency, 6 September 2019] Daiwa Research maintained its target price for
Sunlight REIT (00435) unchanged at HK$6.65 but upgraded its rating to "buy" from
"outperform".
The research house said Sunlight REIT's FY2019 distributed income of HK$450m was broadly
in line with Daiwa's expectations, confirming that the upgrade of its portfolio bodes well
for its prospects to sustain DPU growth over the next few years.
In addition, positive rental reversions for its office/retail properties rose to 11.4%
for FY2019. Daiwa sees these figures as confirmation that Sunlight REIT's past AEI is now
bearing fruit and that it has niche properties that are well-positioned to ride various
structural trends in Hong Kong's commercial property market.
That said, Daiwa lowered its FY2020-21 DPU forecasts by 4.7-5.9% due to current
weaknesses and uncertainties in the Hong Kong retail market. (KL)