Daiwa maintains the rating that the Sunshine Real Estate Fund (0435.HK) outperforms the market, giving it a target price of HK $3.00.

The bank said Sunshine Real Estate's final results in fiscal year 11 reflected higher occupancy rates and higher rents for renewal contracts. Daiwa pointed out that the net property income and distributable profit per unit (DPU) of the Sunshine Real Estate Fund increased by 10.1% and 22.3% respectively over the same period last year, exceeding Daiwa's forecast of 4.5% and 7.3%, respectively. Daiwa also said that Sunshine Real Estate is currently equivalent to a 7.2 per cent DPU yield in fiscal 12, coupled with bright rental growth prospects (thanks to the diversification of office space) and the fund's asset enhancement plan, Daiwa believes that it is still a sound defensive fund in the current environment.

The sunshine real estate fund fell 0.4 per cent to HK $2.30 yesterday.