Retail business lifts Sunway REIT net profit - Business News | The Star Online


Retail business lifts Sunway REIT net profit

  • Property
  • Tuesday, 12 Aug 2014

PETALING JAYA: Sunway Real Estate Investment Trust ’s (REIT) net profit rose 2.7% to RM235.21mil for the fourth quarter ended June 30, 2014, from RM228.97mil in the previous corresponding period.

In its filing with Bursa Malaysia, the property manager said its net profit growth was mainly attributable to higher net property income from the retail segment, higher interest income coupled with lower trust expenses and fair value gain on investment properties.

Sunway REIT has proposed a distribution per unit (DPU) of 2.03 sen for the fourth quarter, bringing the total DPU for the financial year (FY14) to 8.36 sen, compared with 8.3 sen in FY13.

During the quarter, Sunway REIT’s revenue grew 5.1% to RM109.22mil from RM103.91mil previously.

This was despite a 41.9% decline in revenue contribution from Sunway Putra Place due to ongoing major refurbishment works.

Its earnings per share (EPS) declined to 8.04 sen from 8.12 previously.

In a statement, Sunway REIT said its net property income grew only 0.4% to RM78.82mil in the quarter in review, compared with RM78.52mil previously, led by increase in property operating expenses arising from higher electricity tariffs, maintenance cost and provision for higher assessment tax for Kuala Lumpur properties.

For the full year, Sunway REIT’s net profit grew 4.8% to RM411.12mil. Its EPS, however, slid to 14.06 sen from 14.11 sen last year.

The manager’s revenue rose 2.8% to RM427.8mil, while net property income increased 3.8% to RM321mil.