Company DescriptionSunlight REIT (Stock code: 435) is a real estate investment trust authorized by the Securities and Futures Commission and constituted by the trust deed dated 26 May 2006 (as amended and supplemented by six supplemental deeds) (the "Trust Deed"), and has been listed on The Stock Exchange of Hong Kong Limited on 21 December 2006. Sunlight REIT offers investors the opportunity to invest in a diversified portfolio of 11 office and five retail properties in Hong Kong with a total gross rentable area of over 1.2 million sq. ft.. The office properties are primarily located in core business areas, including Wan Chai and Sheung Wan, as well as in decentralized business areas such as Mong Kok and North Point. The key retail properties are situated in regional transportation hubs and new towns including Sheung Shui, Tseung Kwan O and Yuen Long.

How the Company Makes Money

Sunlight Real Estate Investment Financial Statement Overview

Summary

Sunlight Real Estate Investment exhibits a stable financial position with strong profitability margins and a conservative balance sheet. The company has shown resilience in revenue growth and profitability recovery, yet faces challenges in cash flow management.

Income Statement

Positive

Sunlight Real Estate Investment has shown stable revenue growth with a 5.42% increase from the previous year. The gross profit margin remains strong at 78.55%, and the net profit margin has improved significantly from a negative value to 18.67% in 2024. However, the EBIT and EBITDA margins are slightly lower compared to previous years, indicating increased operational costs.

Balance Sheet

Positive

The company's balance sheet is stable, with a debt-to-equity ratio of 0.36, indicating conservative leverage. The equity ratio is strong at 70.81%, suggesting a solid financial foundation. However, there is a slight decline in stockholders' equity over time, which may need to be monitored.

Cash Flow

Neutral

Operating cash flow has decreased, yet remains positive, reflecting the company's ability to generate cash from operations. Free cash flow growth is negative, indicating challenges in maintaining cash reserves. The operating cash flow to net income ratio is positive, suggesting efficient cash conversion from earnings.

Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
852.88M	809.00M	811.13M	808.06M	865.35M
	Gross Profit
669.95M	649.53M	650.07M	648.40M	695.47M
	EBIT
562.54M	544.21M	543.96M	539.92M	584.54M
	EBITDA
563.25M	517.39M	543.98M	-71.42M	-563.58M
	Net Income Common Stockholders
159.24M	-28.43M	102.94M	-233.68M	-751.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
445.49M	485.24M	630.99M	623.30M	499.43M
	Total Assets
19.06B	19.22B	18.96B	19.20B	19.67B
	Total Debt
4.83B	4.87B	4.29B	4.40B	4.24B
	Net Debt
4.82B	4.86B	4.23B	4.36B	4.19B
	Total Liabilities
5.56B	5.55B	4.91B	5.08B	4.90B
	Stockholders Equity
13.50B	13.67B	14.05B	14.12B	14.77B
Cash Flow		Free Cash Flow
317.79M	404.01M	409.26M	452.12M	386.31M
	Operating Cash Flow
317.79M	404.06M	409.27M	452.21M	439.03M
	Investing Cash Flow
14.03M	-684.37M	100.25M	-318.22M	32.45M
	Financing Cash Flow
-350.26M	206.03M	-416.65M	-274.55M	-456.01M

Sunlight Real Estate Investment Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHTRF		$469.62M	31.67	1.17%	6.09%	―	―
Sector *	61 Neutral	$2.83B	10.98	0.41%	8438.90%	5.81%	-21.06%
PREUF		$269.46M	―	-1.09%	8.95%	―	―
SGRRF			―	-0.78%	―	―	―
YUXXF		$491.32M	―	-2.11%	6.80%	―	―
8ET		€264.33M	28.49	-7.37%	11.27%	―	―
87001	55 Neutral	¥3.16B	―	-3.39%	0.84%	-3.16%	-28.30%

* Real Estate Sector Average

Performance Comparison

SHTRF

Sunlight Real Estate Investment

0.38

0.02

5.56%

PREUF

Prosperity Real Estate Investment

0.17

-0.03

-15.00%

SGRRF

Spring Real Estate Investment

―

YUXXF

Yuexiu Real Estate Investment

0.13

-0.06

-31.58%

DE:8ET

SF Real Estate Investment Trust

0.29

<0.01

3.57%

HK:87001

Hui Xian Real Estate Investment Trust

0.48

-0.20

-29.41%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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