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Sunlight Real Estate Investment Trust (0435) Fair Value & Analysis

Real Estate · HK · Market cap HK$3.8B

SR Sunlight Real Estate Investment Trust 0435 · HK
PriceHK$2.29
Fair ValueHK$2.35
Upside+2.8%
Quality58/100
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Weak Growth
Loss-making · -35.4% net margin
Low debt · generates free cash flow
8.47% dividend yield
Ranks above peers (8/12)
Narrow moat 36/100
Evidence: High Range HK$1.14 – HK$3.57 Share as image

Fair value as of: Aug 13, 2026

From 13 valuation models · updated 2 days ago

Share price +1.6% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The model range is unusually wide (HK$1.14 to HK$3.57). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

HK$3.40 HK$1.25 Fair Value HK$2.35 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$1.25 – HK$3.40 · fair‑value band HK$1.14 – HK$3.57 · the HK$2.29 price screens below the HK$2.35 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Sunlight Real Estate Investment Trust (0435) currently trades at HK$2.29, while our model-based Fair Value estimate is HK$2.35, implying the stock looks roughly 2.8% fairly valued today. The Quality Score stands at 58/100 (solid quality), in the Real Estate sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Sunlight Real Estate Investment Trust generated revenue of HK$778M at a net margin of -35.4%. Revenue declined 4.8% year over year. It earns a return on equity of -2.2%. Net debt stands at HK$4.4B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$1.14 (bear case) to HK$3.57 (bull case); at HK$2.29, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 15% below its 52-week high and 12% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at -23% fair-value upside, at 3%, 0435 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$0.8400 HK$1.70 HK$3.01 80
Rev-Margin DCF HK$0.4100 HK$1.37 HK$2.44 74
Gordon GGM HK$1.60 HK$2.14 HK$2.66 70
All 13 models by family
DCF Models
FCF DCF HK$0.7500 HK$1.66 HK$3.12 38
5Y Revenue Exit HK$0.4100 HK$1.38 HK$2.67 39
5Y EBITDA Exit HK$1.11 HK$2.58 HK$4.37 41
10Y Revenue Exit HK$0.4700 HK$1.32 HK$2.31 36
10Y EBITDA Exit HK$0.9500 HK$2.10 HK$3.45 37
Dividend Discount
Gordon GGM HK$1.60 HK$2.14 HK$2.66 70
DDM Multi-Stage HK$1.60 HK$2.18 HK$2.84 61
Multiples
EV/EBIT HK$2.90 HK$4.47 HK$6.04 53
EV/EBITDA HK$1.82 HK$3.04 HK$4.26 54
EV/Revenue HK$0.3600 HK$1.29 HK$2.23 43
Asset-Based
NCAV (Graham) HK$3.55 HK$4.75 HK$7.09 50
Growth DCF
Growth DCF HK$0.8400 HK$1.70 HK$3.01 80
Rev-Margin DCF HK$0.4100 HK$1.37 HK$2.44 74

Widest divergence: Asset-Based (HK$4.75) versus Growth DCF (HK$1.37). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$778M
Revenue growth (YoY) -4.8%
Net margin -35.4%
Return on equity -2.2%
Free cash flow HK$461M FY2026
Operating margin 63.0%
More key figures
EPS (TTM) HK$-0.1000
Dividend yield 8.5%
EPS growth (YoY) -68.0%
Net debt HK$4.4B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 58 · Market factors (momentum, volatility) 55

Profitability 6
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 52
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 41
Distance to the 52-week high (market factor)
Net Issuance 64
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Sunlight Real Estate Investment Trust is a Hong Kong collective investment scheme constituted as a unit trust. By the Trust Deed and is authorized under section 104 of the Securities and Futures Ordinance, Sunlight REIT is listed on the Main Board of The Stock Exchange of Hong Kong Limited.

Full company description

Sunlight Real Estate Investment Trust is a Hong Kong collective investment scheme constituted as a unit trust. By the Trust Deed and is authorized under section 104 of the Securities and Futures Ordinance, Sunlight REIT is listed on the Main Board of The Stock Exchange of Hong Kong Limited. The principal activity of Sunlight REIT and its subsidiaries (collectively referred to as the Group) is to own and invest in income-producing office and retail properties in Hong Kong with the objective of providing unitholders with regular and stable cash distributions with the potential for sustainable long-term growth of such distributions and enhancement in value of the property portfolio. It has its principal place of business at 30th Floor, Dah Sing Financial Centre, 248 Queen's Road East, Wan Chai, Hong Kong. Sunlight Real Estate Investment Trust was incorporated in 2006 in Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Sunlight Real Estate Investment Trust reported revenue of HK$778M in FY2026 versus HK$803M in FY2022, a compound −0.8%/yr. Reported net income was −HK$275M in FY2026.

Growth Quality 26/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
HK$778M
Latest YoY
−5.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.3%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.8%
Avg. growth/yr (22Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.6%
Revenue −0.8%/yr
FY22 HK$803M
FY23 HK$809M
FY24 HK$783M
FY25 HK$824M
FY26 HK$778M
Net income
FY22 HK$103M
FY23 −HK$28.4M
FY24 −HK$28.4M
FY25 −HK$115M
FY26 −HK$275M

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Cite: Fair Value Calculator (2026). "Sunlight Real Estate Investment Trust Fair Value". https://www.fairvalue-calculator.com/stock/0435

Peer Group

REIT - Diversified · 169 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 60 · Above median
Fair Value upside +3% · Above median
Return on assets 2% · Below median
Net margin (TTM) -35% · Bottom 25%
Operating margin (TTM) 63% · Above median
Revenue growth -5% · Bottom 25%
Dividend yield (TTM) 8.5% · Top 25%
Debt / equity 0.29× · Lower than median

Valuation Multiples vs REIT - Diversified median · lower = cheaper

P/S (TTM) 0.62× · Cheaper than 75% of peers
P/FCF 1.0× · Cheaper than median
EV/EBITDA 7.3× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 37 · sector 5
FUTURE 0 · sector 13
PAST 0 · sector 18
HEALTH 85 · sector 73
DIVIDEND 100 · sector 100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more REIT - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Goodman Group GMG A$30.05 A$7.37 -75%
VICI Properties Inc VICI $26.07 $41.74 +60%
W. P. Carey Inc WPC $70.69 $34.80 -51%
Charter Hall Group CHC A$23.56 A$10.99 -53%
Stockland SGP A$4.27 A$3.70 -13%
Fibra Uno FUNO11 31.10 MXN 54.87 MXN +76%
The GPT Group GPT A$5.19 A$3.49 -33%
Mirvac Group MGR A$1.77 A$0.5700 -68%
KLCC Property Holdings 5235SS 8.70 MYR 6.66 MYR -23%
Fibra Danhos DANHOS13 28.26 MXN 49.89 MXN +77%

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Frequently asked questions

Is Sunlight Real Estate Investment Trust (0435) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$2.35 versus a price of HK$2.29, about +3% (fairly valued).
What is the fair value of 0435?
Our model-based fair value for Sunlight Real Estate Investment Trust is HK$2.35 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$2.29.
What is the quality score of 0435?
Sunlight Real Estate Investment Trust has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Sunlight Real Estate Investment Trust (0435)?
Sunlight Real Estate Investment Trust reported trailing-twelve-month revenue of about HK$778M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0435?
The net profit margin of Sunlight Real Estate Investment Trust is about -35.4%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Sunlight Real Estate Investment Trust pay a dividend?
Sunlight Real Estate Investment Trust currently shows a dividend yield of about 8.47% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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