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