The total medium-term distributable income reported by the Sunshine Real Estate Fund (0435.HK) rose 44 per cent from a year earlier to HK $127.8 million, while the dividend per unit increased by 24 per cent to HK $0.085.

Daiwa said that the distributable profit per unit of the Sunshine Real Estate Fund was higher than the bank's forecast, mainly due to the improvement in its basic business, the rental rate of the property portfolio rose to 98.2% from 94.9% in the same period last year, and rents increased slightly.

Daiwa increased the distributable profit per fund unit of Sunshine Real Estate by 10.6% 5.1% and 4.2% respectively in fiscal year 11, fiscal 12 and fiscal 13, respectively, resulting in an increase in its six-month target price from HK $2.90 to HK $3.00, maintaining Sunshine Real Estate's rating of outperforming the market.

The Sunshine property Fund closed up 2.0 per cent at HK $2.50 on Monday, close to its 52-week high of HK $2.55.