Sun­way REIT’s net prop­erty in­come rises to RM388.8m

New Straits Times - - Business -

KUALA LUMPUR: Sun­way REIT Man­age­ment Sdn Bhd said Sun­way Real Es­tate In­vest­ment Trust’s (Sun­way REIT) net prop­erty in­come (NPI) posted an in­crease of four per cent to RM388.8 mil­lion for the year ended June 30.

The com­pany said the higher NPI was bol­stered by bet­ter per­for­mance from the re­tail and hotel seg­ments in the fourth quar­ter, grad­ual im­prove­ment in the of­fice seg­ment, as well as a re­silient per­for­mance from the re­tail seg­ment through­out the fi­nan­cial year.

Re­tail seg­ment re­mained the largest con­trib­u­tor to Sun­way REIT’s rev­enue and NPI growth as it grew by 5.8 per cent year-on-year (y-o-y) and 7.6 per cent y-o-y, re­spec­tively.

This was mainly con­trib­uted by higher av­er­age oc­cu­pancy rate and av­er­age rental rates at Sun­way Pyra­mid Shop­ping Mall and Sun­way Car­ni­val Shop­ping Mall.

Sun­way Pu­tra Mall recorded im­prov­ing per­for­mance in the sec­ond year of op­er­a­tions.

The mall’s rev­enue and NPI in the pre­vi­ous year was lower due to a 2.5-month rent-free pe­riod granted dur­ing the ini­tial open­ing of the mall.

“In­di­ca­tors are point­ing to a grad­ual re­cov­ery in con­sumer sen­ti­ment and busi­ness con­fi­dence, sup­ported by con­tin­u­ous growth in the do­mes­tic econ­omy.

Sun­way REIT is well-po­si­tioned to cap­i­talise on the re­cov­ery based our di­ver­si­fied port­fo­lio of prop­er­ties,” said its chief ex­ec­u­tive of­fi­cer Datuk Jef­frey Ng.

“Bar­ring any un­fore­seen cir­cum­stances, we ex­pect Sun­way REIT’s dis­tri­bu­tion per unit (DPU) to grow mod­er­ately in fi­nan­cial year 2018 (FY2018) sup­ported by a mod­er­ate growth in the re­tail seg­ment, re­sump­tion in in­come con­tri­bu­tion from the Sun­way Pyra­mid Hotel fol­low­ing the com­ple­tion of its re­fur­bish­ment in June and a grad­ual im­prove­ment in the over­all oc­cu­pancy of the of­fice seg­ment.

“In ad­di­tion, we ex­pect new in­come con­tri­bu­tion from the re­cent ac­qui­si­tions to con­trib­ute pos­i­tively to the DPU in FY2018 and be­yond,” he added.

Sun­way REIT owns four prop­er­ties in Kuala Lumpur, namely Sun­way Tower and Sun­way Pu­tra (for­merly known as Sun­way Pu­tra Place), which con­sists of Sun­way Pu­tra Mall, Sun­way Pu­tra Hotel and Sun­way Pu­tra Tower.

Its mar­ket cap­i­tal­i­sa­tion stood at RM5.2 bil­lion as at June 30 this year.

Datuk Jef­frey Ng

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