Strong retail segment growth bodes well for Sunway-reit

JAYA: Sunway Real Estate Investment Trust (Sunway-reit) is optimistic about the outlook for its current financial year, underpinned by strong growth in the retail segment on the back of strong retail sales and low base in the preceding year.

In a filing with Bursa Malaysia yesterday, the company said the outlook is further supported by gradual recovery in the hotel segment, new income contribution from the new wing of Sunway Carnival Mall and resumption of income contribution from phased reopening of Sunway Resort Hotel.

“The manager proactively optimises its capital management strategy to minimise the impact of higher finance costs. In addition, the manager strives to increase the net property income moving forward to negate the impact.”

Sunway REIT said its net profit for the third quarter ended Sept 30, 2022 rose to Rm91.91mil from Rm41.06mil a year earlier, while revenue grew to Rm166.24mil from Rm106.89mil previously.

Basic earnings per share stood at 2.54 sen, versus 1.05 sen previously.

For the nine-month period ended Sept 30, 2022, net profit improved to Rm272.74mil from Rm111.40mil in the previous corresponding period, while revenue rose to Rm464.71mil from Rm314.55mil a year earlier.

Sunway-reit said the outlook for the retail segment remains positive, underpinned by strong improvement in retail footfall in retail sales which have recovered to pre-pandemic level in 2019.

“The outlook is further supported by the healthy economic growth, sustained domestic consumption, gradual pick up in international travelling and new income contribution from the new wing of Sunway Carnival Mall following its launch in June 2022.

Additionally, Sunway-reit said it expects occupancy rates for the hotel segment to continue to improve in the fourth quarter of 2022, predominantly supported by domestic leisure, corporate and Mice (meetings, incentives, conferences, exhibitions) businesses.

“In addition, the re-opening of international borders augurs well to welcome international tourists to Malaysia,” it said.