Sunway REIT’s YTD net profit meets expectations
KUCHING: Sunway Real Estate Investment Trust’s (Sunway REIT) year to date (YTD) net profit has either met or come in slightly above analysts’ expectations.
Sunway REIT’s fifth quarter of financial year 2021 (5QFY21) realised net profit of RM41 million, brought YTD realised net profit to RM179.2 million which was within the research arm of Public Investment Bank Bhd’s (PublicInvest Research) expectation though below consensus.
“YTD, group realised net profit constitutes circa 86 per cent and circa 76 per cent of our and consensus full year (18-month) estimates,” PublicInvest Research said.
“The current cumulative financial period is a period of 15 months from July 1, 2020 to Sept 30, 2021.
“As such, there are no comparative figures for the preceding year’s corresponding period.”
For the research arm of Kenanga Investment Bank Bhd (Kenanga Research), the 15 months of financial period ended 2021 (15MFPE21) realised net income (RNI) of RM154.3 million came in slightly above expectation at 87 per cent but below consensus at 66 per cent.
Kenanga Research had expected 3QCY21/5QFPE21 to be weaker and anticipated a much stronger 4QCY21 / 6QFPE21 on less rental rebates since the economy opened up in August 2021.
“The outlook for 4QCY21 is expected to be better in light of the reopening of the economy boosting shopper traffic and the holiday season which would promote spending and domestic travel allowing for better hotel occupancy rates,” Kenanga Research said.
“However, management does not discount the possibility of further rental rebates in coming months. The office and services segments are also expected to remain stable.
“Increase FP21E RNI marginally by five per cent to RM187 million on lower-than-expected rental rebates while FY22E core net profit (CNP) of RM271 million remains unchanged.”
The research arm believed FY22E RNI should remain intact for now assuming the current trajectory of economic recovery maintains with gradually improving rental rates and reversions in FY22.